The effect of adopting IFRS on the relevance of information: The case of Moroccan companies listed on the Casablanca Stock Exchange
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Author(s)Yassine OubahouLink to ORCID Index: https://orcid.org/0009-0009-9315-9849
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Khalid El OuafaLink to ORCID Index: https://orcid.org/0009-0005-9955-0997
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DOIhttp://dx.doi.org/10.21511/imfi.21(2).2024.32
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Article InfoVolume 21 2024, Issue #2, pp. 389-399
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- 306 Views
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56 Downloads
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Since the introduction of IFRS in the European context and various countries worldwide, several studies have examined the impact of this new approach to asset and liability valuation on financial ratios and company values. The present study attempts to determine whether accounting figures prepared in accordance with this new international accounting regime better reflect the market value of companies listed on the Moroccan market compared to those prepared under Moroccan accounting standards. Empirically, the study is based on association studies using the returns model and covers a sample of 27 companies listed on the Casablanca Stock Exchange for the period 2015–2020, i.e., 162 observations. The regression results show that accounting figures prepared according to IFRS standards better reflect stock market profitability than those prepared according to local standards, with the explanatory power increasing from 16.76% to 23.64% for the pre-IFRS period compared to the post-IFRS period. This means that by adopting IFRS standards, accounting values tend to be closer to stock market values, thus confirming the hypothesis that IFRS standards deliver a better information content of accounting figures.
- Keywords
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JEL Classification (Paper profile tab)G14, M40, M41
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References30
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Tables9
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Figures0
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- Table 1. Viability tests for the estimated model (IFRS sample)
- Table 2. Viability tests for the estimated model (MAS sample)
- Table 3. Descriptive statistics (IFRS pre-adoption period)
- Table 4. Descriptive statistics (IFRS post-adoption period)
- Table 5. Correlation between share price and risk factors (IFRS pre-adoption period)
- Table 6. Correlation between share price and risk factors (post-IFRS period)
- Table 7. Fixed-effects model (IFRS pre-adoption period)
- Table 8. Fixed-effects model (post-IFRS period)
- Table 9. Summary of regression results
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Inventory management, cost of capital and firm performance: evidence from manufacturing firms in Jordan
Ashraf Mohammad Salem Alrjoub ,
Muhannad Akram Ahmad
doi: http://dx.doi.org/10.21511/imfi.14(3).2017.01
Investment Management and Financial Innovations Volume 14, 2017 Issue #3 pp. 4-14 Views: 2854 Downloads: 2080 TO CITE АНОТАЦІЯSeveral studies have examined the relationship between inventory management and firm performance. However, most of these studies ignore the impact of inventory types on the relationship. Moreover, the relationship is influenced by some factors such as cost of capital which has not been considered. This study examines the moderating effect of cost of capital on the relationship between inventory types and firm performance. The data of 48 firms for the period 2010-2016 which formed 279 firm-year observations were used in this study. With the use of Pearson correlation and panel Generalized Method of Moments (GMM) estimation, the findings show that inventory management with consideration of its types influence firm performance in the long term. In addition, it is also found that cost of capital moderates the relationship between inventory management and firm performance. However, the interaction between cost of capital and inventory types has different implications. It is suggested that firms should consider cost of capital when making decision on inventory types and align their inventory control to fit in to the changes in their business environment.
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Rawan Shubita , Moade Fawzi Shubita
doi: http://dx.doi.org/10.21511/imfi.16(2).2019.09
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Tien Dat Dang , Thi Van Trang Do
doi: http://dx.doi.org/10.21511/imfi.18(1).2021.03
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