دانلود رایگان مقاله انگلیسی پذیرش کامل IFRS در برزیل: کیفیت درآمد و هزینه سرمایه متعلق به آن - الزویر 2017

ABSTRACT

The purpose of this paper is to investigate the impact of IFRS adoption on the earnings quality and the cost of equity capital of Brazilian companies. It is assumed that an increase in information contributes to a reduction in asymmetric information. A conjecture is that more efficient allocation of resources will result in a reduction in the cost of capital. The results show that the hypothesis of an increase in earnings quality after IFRS adoption holds true. The models used to analyze the equity cost of capital suggest a reduction in the cost of capital of around 7 basis points.

7. Conclusions

The objective of this study was to investigate the earnings quality and the cost of equity capital of Brazilian companies following the full adoption of the IFRSs.

The empirical evidence for the dimensions of earnings quality, earnings management, conservatism, value relevance and timeliness indicates acceptance of the hypothesis of an increase in earnings quality after full adoption of the IFRSs. In this sense, this set of results suggests an accounting model that indeed provides information for the capital market. Moreover, although Brazil is classified as a code law country, providing low protection for investors (La Porta et al., 1998), the benefits of full adoption of the IFRSs are observed in the case of Brazil.

With regard to the cost of equity capital, the models suggest a reduction after full adoption of the IFRSs, allowing the acceptance of the research hypothesis concerning the cost of equity capital. Considering that the IFRSs provide a higher level of disclosure for companies, this result is consistent with studies that find a negative relationship between the cost of equity capital and disclosure, such as Lopes and De Alencar (2010). There are many examples of the higher level of disclosure of IFRSs due to some transactions that were not previously accounted for or not accounted for appropriately, such as: i) share-based payment, ii) impairment testing, iii) financial leasing, iv) accounting of depreciation according to the consumption pattern of asset benefits, v) non-current assets held for sale, discontinued operations, and so on.

In this context, the IFRS financial statements can be informative, since taking into consideration economic events that were not previously accounted for may lead to the accounting numbers approaching the companies’ true financial positions. Such information becomes value relevant for investors who are interested in evaluating companies.