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Benefits of global financial reporting models for developing markets: The case of Romania

The paper explores the benefits of global financial reporting models for developing countries, discussing the case of Romania, which, at the recommendations of the World Bank and the International Monetary Fund, exceeded the minimum requirements of the European Union, by imposing the full adoption o...

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Detalles Bibliográficos
Autores principales: Ionascu, Mihaela, Ionascu, Ion, Sacarin, Marian, Minu, Mihaela
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2018
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6248969/
https://www.ncbi.nlm.nih.gov/pubmed/30462679
http://dx.doi.org/10.1371/journal.pone.0207175
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author Ionascu, Mihaela
Ionascu, Ion
Sacarin, Marian
Minu, Mihaela
author_facet Ionascu, Mihaela
Ionascu, Ion
Sacarin, Marian
Minu, Mihaela
author_sort Ionascu, Mihaela
collection PubMed
description The paper explores the benefits of global financial reporting models for developing countries, discussing the case of Romania, which, at the recommendations of the World Bank and the International Monetary Fund, exceeded the minimum requirements of the European Union, by imposing the full adoption of the International Financial Reporting Standards (IFRS) in individual financial statements of listed companies. Using regression analysis and decomposition techniques, the paper explores the evolution in value relevance of financial variables based on pre-(2009–2012) and post-(2014–2016) adoption samples, showing that after IFRS adoption financial information becomes significantly more relevant for equity valuations. We also provide empirical evidence showing that the degree of relevance for stock valuation, as well as the IFRS impact varies across types of firms. Overall, our findings tend to indicate the success of the financial reporting reform, which could be relevant for other jurisdictions facing similar decisions.
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spelling pubmed-62489692018-12-06 Benefits of global financial reporting models for developing markets: The case of Romania Ionascu, Mihaela Ionascu, Ion Sacarin, Marian Minu, Mihaela PLoS One Research Article The paper explores the benefits of global financial reporting models for developing countries, discussing the case of Romania, which, at the recommendations of the World Bank and the International Monetary Fund, exceeded the minimum requirements of the European Union, by imposing the full adoption of the International Financial Reporting Standards (IFRS) in individual financial statements of listed companies. Using regression analysis and decomposition techniques, the paper explores the evolution in value relevance of financial variables based on pre-(2009–2012) and post-(2014–2016) adoption samples, showing that after IFRS adoption financial information becomes significantly more relevant for equity valuations. We also provide empirical evidence showing that the degree of relevance for stock valuation, as well as the IFRS impact varies across types of firms. Overall, our findings tend to indicate the success of the financial reporting reform, which could be relevant for other jurisdictions facing similar decisions. Public Library of Science 2018-11-21 /pmc/articles/PMC6248969/ /pubmed/30462679 http://dx.doi.org/10.1371/journal.pone.0207175 Text en © 2018 Ionascu et al http://creativecommons.org/licenses/by/4.0/ This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Ionascu, Mihaela
Ionascu, Ion
Sacarin, Marian
Minu, Mihaela
Benefits of global financial reporting models for developing markets: The case of Romania
title Benefits of global financial reporting models for developing markets: The case of Romania
title_full Benefits of global financial reporting models for developing markets: The case of Romania
title_fullStr Benefits of global financial reporting models for developing markets: The case of Romania
title_full_unstemmed Benefits of global financial reporting models for developing markets: The case of Romania
title_short Benefits of global financial reporting models for developing markets: The case of Romania
title_sort benefits of global financial reporting models for developing markets: the case of romania
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6248969/
https://www.ncbi.nlm.nih.gov/pubmed/30462679
http://dx.doi.org/10.1371/journal.pone.0207175
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