The Value Relevance of Accounting Information Under Greek and International Financial Reporting Standards: The Influence of Firm-Specific Characteristics

International Research Journal of Finance and Economics, No. 76, p. 6, 2011

18 Pages Posted: 23 Nov 2011

See all articles by Konstantinos Papadatos

Konstantinos Papadatos

University of Patras - Department of Business Administration

Athanasios Bellas

University of Patras

Date Written: November 22, 2011

Abstract

The aim of the present study is to compare the value relevance of accounting information under International Financial Reporting Accounting standards (IFRS) and Greek Accounting Standards (GAS) and to investigate whether the results are influenced from firm specific characteristics. Firstly, it is examined how the mandatory application of IFRS affected the relative and incremental value relevance of book value and net income in Greece. Secondly, it is investigated whether the size of the companies and their level of fixed assets affect the value relevance of accounting information. The results show that both firm size and fixed assets become significant factors, implying that the consequences of the mandatory transition to IFRS may not be the same for all firms.

Keywords: International Financial Reporting Standards (IFRS), Greek Accounting Standards (GAS), Greek firms, Mandatory adoption, Value relevance, Relative value relevance, Incremental value relevance

JEL Classification: G14, G15, M41

Suggested Citation

Papadatos, Konstantinos and Bellas, Athanasios, The Value Relevance of Accounting Information Under Greek and International Financial Reporting Standards: The Influence of Firm-Specific Characteristics (November 22, 2011). International Research Journal of Finance and Economics, No. 76, p. 6, 2011, Available at SSRN: https://ssrn.com/abstract=1963369

Konstantinos Papadatos (Contact Author)

University of Patras - Department of Business Administration ( email )

Patras
Greece

Athanasios Bellas

University of Patras ( email )

Patra
Greece
0030 26910 996269 (Phone)

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