英文摘要 |
This paper examines the effects of the adoption of International Financial Reporting Standards (IFRS) on Japanese firms' earnings quality and investment efficiency. We use a sample of Japanese firms listed on the Tokyo Stock Exchange (TSE) that voluntarily adopted IFRS during the period of 2010-2016. After controlling for self-selection bias using propensity score matching, we find that, relative to non-adopters, firms adopting IFRS have higher earnings quality in the post-adoption period, as measured by lower discretionary accruals and less income smoothing. In addition, IFRS-adopting firms have better investment efficiency, as evidenced by their lower over-investment and lower under-investment. Our study provides evidence of a reduction in information asymmetry after a switch from domestic accounting standards to IFRS in a country that underwent an institutional shift within a context of traditional cultural values. |