TY - JOUR
T1 - Effects of the Adoption of IFRS on the Credit Market
T2 - Evidence from Brazil
AU - de Lima, Vinícius Simmer
AU - de Lima, Gerlando Augusto Sampaio Franco
AU - Gotti, Giorgio
N1 - Publisher Copyright:
© 2018
PY - 2018/6
Y1 - 2018/6
N2 - Based on a sample of approximately 6500 credit ratings and 137,000 loan contracts, this paper analyzes the effects of mandatory IFRS adoption on the Brazilian credit market. We find that the IFRS adoption effects were limited to firms displaying improved accounting information quality at the time of transition, lending support to the notion that economic benefits do not necessarily flow from the publication of financial reports in IFRS but, rather, depend on how earnestly firms adopt the recommended disclosure practices.
AB - Based on a sample of approximately 6500 credit ratings and 137,000 loan contracts, this paper analyzes the effects of mandatory IFRS adoption on the Brazilian credit market. We find that the IFRS adoption effects were limited to firms displaying improved accounting information quality at the time of transition, lending support to the notion that economic benefits do not necessarily flow from the publication of financial reports in IFRS but, rather, depend on how earnestly firms adopt the recommended disclosure practices.
KW - Accounting information quality
KW - Credit market
KW - IFRS
UR - http://www.scopus.com/inward/record.url?scp=85047079149&partnerID=8YFLogxK
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U2 - 10.1016/j.intacc.2018.04.001
DO - 10.1016/j.intacc.2018.04.001
M3 - Article
AN - SCOPUS:85047079149
SN - 1094-4060
VL - 53
SP - 77
EP - 101
JO - International Journal of Accounting
JF - International Journal of Accounting
IS - 2
ER -