Information content of IFRS versus domestic accounting standards: evidence from mandatory IFRS adoption in Israel

Ariel Markelevich, Lewis Shaw and Hagit Weihs

International Journal of Accounting, Auditing and Performance Evaluation, 2016, vol. 12, issue 2, 167-211

Abstract: Beginning in 2008, most Israeli public companies were required to adopt international financial reporting standards (IFRS). Previously, Israel followed its own set of financial reporting standards - Israeli generally accepted accounting principles (GAAP). This paper examines the impact of the conversion from Israeli GAAP to IFRS on the reporting of financial performance of over six hundred Israeli public companies. Results of this study contribute to the discussion on the impact of mandatory IFRS adoption and have potential implications for other countries currently considering conversion from legacy GAAP to IFRS. In Israel's case, the conversion, done to facilitate foreign investment in Israeli companies, had little or no impact on financial results or value relevance of accounting information.

Keywords: mandatory adoption; value relevance; International Financial Reporting Standards; domestic GAAP; information content; IFRS adoption; domestic accounting standards; Israel; foreign investment; financial results; value relevance; accounting information. (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijaape:v:12:y:2016:i:2:p:167-211

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