Reakcja rynków kapitałowych na stosowanie MSR. Przegląd badań empirycznych
Market reaction to IFRSs application. Review of empirical studies

Summary/Abstract: International Financial Reporting Standards (IFRSs) are becoming a globally applied accounting system in recent years for many companies preparing and presenting their financial statements. In some cases IFRSs are applied on a mandatory basis, in other – on a voluntary basis. In recent years a stream of academic research has developed that investigates the voluntary and mandatory use of IFRSs. Studies on mandatory application of IFRSs follow mainly from the EU’s IAS Regulation which mandated IFRSs of publicly traded companies from 2005. One of the groups of research focuses on capital market reactions and investors’ behavior. Research is then oriented to value relevance of financial information presented under IFRSs. In this article researches and empirical studies on value relevance of IFRSs in their voluntary and mandatory application are presented. Most of the studies confirm and empirical evidence suggests that both voluntary and mandatory application of IFRSs is value relevant. In many cases the cost of capital decreased as a result of the application of IFRSs, although some studies did not confirm this suggestion. Generally, market reactions to IFRSs are positive and the benefits for companies of implementation of IFRSs are greater if the application of IFRSs is announced earlier. Also market reactions to IFRSs are more positive if they are strongly endorsed by authoritative and regulatory bodies. IFRSs’ value relevance is higher in economies in which the previously used accounting system differed significantly from the accounting system based on IFRSs.

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