Mandatory Financial Reporting Environment and Voluntary Disclosure: Evidence from Mandatory IFRS Adoption

• Main Authors: Karthik, Balakrishnan, LI, Xi, YANG, Holly
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Mandatory disclosure; Voluntary disclosure; Management forecasts; Liquidity; Fair value accounting; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1163; https://ink.library.smu.edu.sg/context/soa_research/article/2162/viewcontent/BLY_September_2012.pdf
• Institution: Singapore Management University

Using the mandatory adoption of International Financial Reporting Standards (IFRS) as an exogenous improvement to mandatory financial reporting, we document evidence supporting a complementary effect between mandatory and voluntary disclosures. We find that firms in countries that adopted IFRS in 20...