Informativeness of stock prices after IFRS adoption in Brazil
F. Henrique Castro and
Journal of Multinational Financial Management, 2018, vol. 47-48, 46-59
This study investigates the effects of the adoption of the International Financial Reporting Standards (IFRS) on prices’ informativeness in the Brazilian capital market. Consistent with the hypothesis that IFRS increases the amount and quality of firm-specific information available to the market, we found that after the adoption, prices in the Brazilian stock market are less synchronous and that their firm-level volatility increased relative to total volatility. This means that prices move more according to firm-specific shocks than to market-wide events, indicating that prices became more informative and, thus, more useful for investment decision-making.
Keywords: Synchronicity; Volatility; IFRS; Brazil (search for similar items in EconPapers)
JEL-codes: F65 M41 M48 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:47-48:y:2018:i::p:46-59
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