Accounting Standards and Market Value of Firms with Pension Plans

Sara Paralta ()
Additional contact information
Sara Paralta: PhD in Economics – Paris Dauphine University – France,University Professor, Present address: Atlântica University, Fábrica da Pólvora de Barcarena, 2730-036 Barcarena, Portugal,

International Journal of Business and Social Research, 2014, vol. 4, issue 11, 31-42

Abstract: This article investigates the impact of the adoption of International Accounting Standards on the market value of non-financial listed firms of the Euronext Lisbon Stock Exchange, in the PSI-20. The study of the impact of these standards is focused on the items of the Financial Statements, particularly on items subjected to the criteria of the fair value of assets and liabilities of pensions. Most of these companies have obligations to pay annuity benefits, particularly for retirement, which are managed by outsourced independent companies, such as pension funds and life insurance companies. By using a panel of the largest non-financial companies during the period 2004-2010, the results show that the setting of the fair value of those liabilities in the post-2005 period affects the market value of firms, not only on account of the adoption of the standards, but also due to the effect of the 2008 stock market crash.

Keywords: Companies valuation; financial crisis; International Accounting Standards (IAS); IFRS; pension plans. (search for similar items in EconPapers)
JEL-codes: G01 G23 G30 M40 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://thejournalofbusiness.org/index.php/site/article/view/654/480 (application/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:mir:mirbus:v:4:y:2014:i:11:p:31-42

Access Statistics for this article

More articles in International Journal of Business and Social Research from MIR Center for Socio-Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by M Kabir ().