TY - JOUR
AU1 - ElKelish, Walaa Wahid
AB - This paper investigates the relationship between information quality and stock returns during the International Financial Reporting Standards (IFRS 9) pre-adoption announcements and examines the influence of modern technology on these relationships across 24 emerging countries.Design/methodology/approachThis paper conducts an event study using data obtained from the DataStream, Osiris, International Telecommunication Union (ITU) and the World Bank databases from 2009 to 2014. The non-linear generalized additive model (GAM) was implemented to test the study hypotheses.FindingsResults indicate a significant positive non-linear relationship between low information quality and stock returns during IFRS 9 pre-adoption announcements. This result implies that IFRS 9 announcements have a positive impact on corporations with low pre-adoption quality information. This result is also more pronounced in small rather than large corporations and financial rather than nonfinancial institutions. Furthermore, modern technology plays a significant decisive antecedent role, while industry type has a moderating effect on the relationship between information quality and stock returns. The codified legal system has a positive impact on stock returns across emerging countries.Research limitations/implicationsData unavailability in some emerging countries.Practical implicationsThe empirical evidence provides useful guidelines for corporate managers, investors, international accounting standard-setters and regulators to improve financial reporting practices.Originality/valueThis paper extends the work of Armstrong et al. (2010); Onali et al. (2017) by including the impact of non-linear relationships using GAM analysis and the role of modern technology across emerging countries.
TI - The International Financial Reporting Standards 9 financial instruments, information quality and stock returns in the modern technology era
JF - Journal of Applied Accounting Research
DO - 10.1108/jaar-12-2019-0164
DA - 2021-05-07
UR - https://www.deepdyve.com/lp/emerald-publishing/the-international-financial-reporting-standards-9-financial-wxRM2Klh0y
SP - 465
EP - 483
VL - 22
IS - 3
DP - DeepDyve
ER -