Citation Tsalavoutas I, Andre P & Evans L (2012) The transition to IFRS and the value relevance of financial statements in Greece. British Accounting Review, 44 (4), pp. 262-277. https://doi.org/10.1016/j.bar.2012.09.004
Abstract We examine the combined value relevance of book value of equity and net income before and after the mandatory transition to IFRS in Greece. Contrary to our expectations, we find no significant change in the explanatory power of value relevance regressions between the two periods. The coefficients on book value of equity and net income are positive and significant in both the pre-IFRS and post-IFRS periods. However, the coefficient on book value of equity is significantly greater under IFRS, whereas we find some evidence of a decrease in the coefficient on net income. Finally, we find that market participants viewed the extra information provided by reconciliations between Greek GAAP and IFRS for 2004 figures as incrementally value relevant.
Keywords Creative accounting; Greece; IFRS implementation; Value relevance
Journal British Accounting Review: Volume 44, Issue 4