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The impact of IFRS implementation on Greek listed companies

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Purpose – While the Greek GAAP is stakeholder-oriented and commonly viewed as a historical cost
accounting model, IFRS is shareholder-oriented and generally perceived as a fair-value accounting
model. The study seeks to investigate the effects of adopting IFRSs on the financial statements of
Greek listed companies. It focuses on major Greek industrial sectors and stock market indices and
investigates the effects of IFRS adoption on company financial position and performance.
Design/methodology/approach – A binary logistic regression has been applied in order to capture
the differences between the pre-official adoption and official adoption periods. The model focuses on
2004 and 2005. The dependent variable is a dummy variable and takes the following values: 1 for 2005
and 0 for 2004.
Findings – The study shows that IFRS implementation has influenced positively the profitability of
most industrial sectors as well as those firms that belong to FTSE 40 andSMALLCAP 80. IFRS adoption
appears to negatively influence liquidity for anumber of industrial sectors andstock market constituents.
An increase in leverage is obtained from the examination of the sample stock market indices and
industrial sectors. Similar findings are evidenced for firms of large size and high financing needs.
Research limitations/implications – The study is limited in the following respects. The results
reflect short-term timing differences, which may reverse in later accounting periods. Also, companies
should have anticipated IFRS adoption and might have adjusted their accounting policies accordingly,
or even managed their reported numbers, in the period under investigation, since the EU Regulation
passed in 2002.
Originality/value – The findings of the study are useful for investors, shareholders, financial
analysts and other market participants as they provide information about the impact of IFRS
implementation per major sector and market index. The effects would be expected to vary as each
sector and market index carries different financial attributes. Users of accounting information could
make use of the findings of the study for the evaluation of the financial performance and prospects of a
sector/index and for other investment decision-making purposes. The study also contributes to the
literature as it focuses on a code law country that is stakeholder-oriented.

Keywords International finance, Industrial sectors, Stock market indices, Firm size, Financing needs,
Accounting standards, Greece

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Ketersediaan

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Informasi Detail

Judul Seri

International Journal of Managerial Finance

No. Panggil

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Penerbit

: Emerald Group., 2011

Deskripsi Fisik

International Journal of Managerial Finance Vol. 7 No. 3, 2011 pp. 284-303

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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