| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 105 === International Accounting Standard 41: Agriculture requires fair value measurement and enhances disclosure for biological assets. In this paper, I examine whether adoption of IAS 41 influences firm-specific information flows capitalized into stock prices and thus affects stock price informativeness, as measured by stock price synchronicity. Using a sample of IAS 41 adopters from countries that mandates IFRS in 2005 and the control samples of non-IAS 41 adopters, I find that stock price synchronicity (price informativeness) for IAS 41 adopters decreases (increases) following IAS 41 adoption. I also investigate the difference in the effect of IAS 41 adoption between firms that transforms bearer plants, which derive value in use of assets and other biological assets. I fail to provide evidence that the firm-specific information facilitating effect of IAS 41 differs between firms transforming different biological assets. I also conduct additional analysis; however, I fail to find that the effect of IAS 41 is differentiated by factors such as the significance of biological asset and reliability of fair value estimate. Overall, my results are consistent with the notion that the increased transparency from IAS 41 adoption broadly facilitates firm-specific information flows entering into stock market and thereby reduces synchronicity, making stock price more informative.
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