| Summary: | 碩士 === 國立臺中科技大學 === 會計資訊系會計與財稅碩士班 === 101 === The face of the international trend of the global capital market, accounting standards convergence is already a global consensus of the accounting profession. Previous studies literature the affect value relevance import IFRSs, its results are mixed. Therefore, this study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) increase value-relevance in the European Union (EU)?
Based on the Ohlson Stock evaluation model (1995) and using value-relevance model of Alali and Foote (2012) to examine the value relevance. In addition, we examine whether the different of institutional environment affect the value relevance of accounting information of mandatory adoption of IFRSs in the EU. Using a sample of EU listed company during the 2002 to 2011 period.
The empirical results are as follows. First, adoption of IFRSs on the value-relevance showed a significant positive correlation. Second, we find a significant positive correlation between Institutional environment and value-relevance of accounting information. Finally, we also find that only in country with strong institutional environment and adoption of IFRSs are two mechanisms behind the value-relevance of accounting information.
The empirical results support the requirements of the Financial Accounting for global consistency, but the impact of IFRS on the value relevance should consider among the regional or national regulations and institutional environment and other factors, it would need to take into account.
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