Changes in the value relevance of accounting information before and after the adoption of K-IFRS: evidence from Korea Online publication date: Tue, 09-Jan-2018
by Gee Jung Kwon
Afro-Asian J. of Finance and Accounting (AAJFA), Vol. 8, No. 1, 2018
Abstract: This paper aims to investigate the value relevance change before and after the mandatory adoption of Korea's international financial reporting standards (K-IFRS) in the listed Korean financial markets. This paper tests the value relevance change by dividing sample data into the periods before (2008-2010) and after (2011-2013) K-IFRS adoption. This study categorises sample data into several subgroups by firm size (large versus small and medium) and applicable financial market (KOSPI versus the KOSDAQ) for revealing further evidence of the value relevance change in Korean companies. The empirical results in this paper suggest that the value relevance of book value, accounting earnings, operating income, cash flows, and operating cash flows significantly changed before and after K-IFRS adoption. This paper's evidence suggests the possibility of a new debate regarding the primary value relevant factor before and after K-IFRS adoption among the companies listed on the Korea Stock Exchange.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Afro-Asian J. of Finance and Accounting (AAJFA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com