The Value and Credit Relevance of IFRS versus JGAAP Accounting Information

Jonghoon Kim, 鐘勲 金 and Yuya Koga

Hitotsubashi Journal of commerce and management, 2020, vol. 53, issue 1, 31-48

Abstract: This paper examines which accounting information -one is accounting information based on Japanese GAAP (JGAAP) and the other is those based on IFRS- better explains total market capitalizations of firms' common stock and credit ratings issued by credit-rating agencies. Our results are as follows. First, both the value and credit rating relevance of IFRS-based net income measures are significantly lower than those based on JGAAP. Second, IFRS-based net income measures incrementally lower the credit rating relevance of accounting information. These results suggest that both the value and credit rating relevance of net income information of Japanese firms could become impaired by the adoption of IFRS.

Keywords: IFRS; Voluntary Adoption; Japanese Firms; Value Relevance; Credit Relevance (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/30974/HJcom0530100310.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hit:hitjcm:v:53:y:2020:i:1:p:31-48

DOI: 10.15057/30974

Access Statistics for this article

More articles in Hitotsubashi Journal of commerce and management from Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Digital Resources Section, Hitotsubashi University Library ().