Impact of IFRS on non-cross-listed Spanish companies: Financial analysts and volume of trade

Impact of IFRS on non-cross-listed Spanish companies: Financial analysts and volume of trade

Cross-listing
Analyst forecast error
Volume of trade
International Financial Reporting Standards

This study aims to analyse, within the scope of publicly listed Spanish companies, whether the mandatory implementation of International Financial Reporting Standards (IFRS) has had an effect on financial
analysts’ earnings forecasts and investments in non-cross-listed Spanish companies (those only listed on the Spanish capital market). A sample of 369 observations for companies listed on the Spanish securities market for the period 2004–2007, of which 84 are cross-listed, was used to perform the analysis. The results show that the transition from domestic to international accounting standards has had positive effects for non-cross-listed Spanish companies, leading to the improved accuracy of financial analysts’ earnings forecasts and an increase in investments.

Sonia Sanabria-García, Pascual Garrido-Miralles

https://www.sciencedirect.com/journal/european-research-on-management-and-business-economics/vol/26/issue/2

Elsevier Espana, S.L.U

27 April 2020

Sri Wahyuni

ISSN: 2444-8834

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Jurnal Internasional European Research on Management and Business Economics 2020