英文摘要 |
This study examines managerial incentives in the choice of valuation methods for longlived assets during the mandatory International Financial Reporting Standards (IFRS) adoption period. We employ the firms listed in the United Kingdom (UK) to analyze managerial incentives because the UK has the largest capital market among countries adopting IFRS; thus, this sample of firms provides more convincing evidence regarding the choice of valuation methods between fair value and historical cost for long-lived assets. For a sample period from 2005 to 2011, our evidence generally suggests that economic incentives, information asymmetry, contractual efficiency, and managerial opportunism are the factors determining whether firm managers value their longlived assets at fair value or historical cost. This result implies that managers’ choices of valuation methods are in line with the aim of accounting standards after the IFRS adoption. |