Does IFRS Provide More Relevant Information for Evaluating Systematic Risk?

• Main Authors: Chia-ChenLiang, 梁家蓁
• Other Authors: Chin-Chen Chien
• Format: Others
• Language: en_US
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/10601509603274124036

碩士 === 國立成功大學 === 會計學系 === 102 === The objective of this study is to explore whether IFRS provide more relevant information for investors when they evaluate systematic risk. The empirical results indicate that after the elimination of Form 20-F reconciliation or the firms change their disclosure policies, (1) there is a modest correlation between market and accounting betas, and the risk relevance of accounting information does not significantly change for U.S. firms; (2) the correlation is modest, and the accounting information is improved to reflect more systematic risk for the firms that disclose both IFRS and U.S. GAAP information; (3) the correlation is weak, and the risk relevance of the accounting information is not enhanced in the case of firms that disclose only IFRS information; (4) there is a high correlation between the market and accounting betas and a great improvement in the risk relevance of accounting information for firms that shift to disclose U.S. GAAP. Comparing IFRS and non-IFRS firms, the accounting information is found to be less risk-relevant for IFRS firms. These findings suggest that IFRS information reflects systematic risk. However, compared to U.S. GAAP, the risk relevance of IFRS information is lower.