The DOI matches its Crossref record; 60 of the 60 references it cites were found in a registry or an index.
Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital?
Abstract
ABSTRACT: This study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union (EU) in 2005 reduces the cost of equity capital. Using a sample of 6,456 firm-year observations of 1,084 EU firms during the 1995 to 2006 period, I find evidence that, on average, the IFRS mandate significantly reduces the cost of equity for mandatory adopters by 47 basis points. I also find that this reduction is present only in countries with strong legal enforcement, and that increased disclosure and enhanced information comparability are two mechanisms behind the cost of equity reduction. Taken together, these findings suggest that while mandatory IFRS adoption significantly lowers firms' cost of equity, the effects depend on the strength of the countries' legal enforcement.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Sample Selection Bias as a Specification Error
Heckman, J. J. (1979) · Econometrica · doi:10.2307/1912352 · Cited by 28,779
Common risk factors in the returns on stocks and bonds
Fama, E. F., & French, K. R. (1993) · Journal of Financial Economics · doi:10.1016/0304-405x(93)90023-5 · Cited by 25,754
La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (1998) · Journal of Political Economy · doi:10.1086/250042 · Cited by 18,025
The Cross‐Section of Expected Stock Returns
FAMA, E. F., & FRENCH, K. R. (1992) · The Journal of Finance · doi:10.1111/j.1540-6261.1992.tb04398.x · Cited by 17,261
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
Petersen, M. A. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhn053 · Cited by 10,746
How Much Should We Trust Differences-in-Differences Estimates?
Bertrand, M., Duflo, E., & Mullainathan, S. (2004) · The Quarterly Journal of Economics · doi:10.1162/003355304772839588 · Cited by 10,641
Healy, P. M., & Palepu, K. G. (2001) · Journal of Accounting and Economics · doi:10.1016/s0165-4101(01)00018-0 · Cited by 8,097
La Porta, R. (1999) · Journal of Law, Economics, and Organization · doi:10.1093/jleo/15.1.222 · Cited by 5,699
Fama, E. F., & French, K. R. (1997) · Journal of Financial Economics · doi:10.1016/s0304-405x(96)00896-3 · Cited by 5,669
Earnings management and investor protection: an international comparison
Leuz, C., Nanda, D., & Wysocki, P. D. (2003) · Journal of Financial Economics · doi:10.1016/s0304-405x(03)00121-1 · Cited by 5,381
Cited by
LEUZ, C., & WYSOCKI, P. D. (2016) · Journal of Accounting Research · doi:10.1111/1475-679x.12115 · Cited by 1,760
ESG practices and the cost of debt: Evidence from EU countries
Eliwa, Y., Aboud, A., & Saleh, A. (2021) · Critical Perspectives on Accounting · doi:10.1016/j.cpa.2019.102097 · Cited by 907
Mandatory IFRS reporting and changes in enforcement
Christensen, H. B., Hail, L., & Leuz, C. (2013) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2013.10.007 · Cited by 816
The information content of annual earnings announcements and mandatory adoption of IFRS
Landsman, W. R., Maydew, E. L., & Thornock, J. R. (2012) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2011.04.002 · Cited by 681
The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability
DeFond, M., Hu, X., Hung, M., & Li, S. (2011) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2011.02.001 · Cited by 719
Self-citation
Metadata
- Authors
- Li, S.
- Venue
- The Accounting Review
- Publisher
- American Accounting Association
- Published
- 2010-03-01
- Volume
- 85
- Issue
- 2
- Pages
- 607-636
- ISSN
- 0001-4826 (ISSN-L)
- 1558-7967
- OpenAlex
- W3123885010
- Cited by
- 786
- References
- 60
- FWCI
- 168.82
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital? https://app.cochat.ai/papers/10.2308/accr.2010.85.2.607
- The paper
- Li, S. (2010). Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital? The Accounting Review. https://doi.org/10.2308/accr.2010.85.2.607
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
