IPOs and IFRS in European exchange-regulated markets: A research note

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Abstract

This research note aims to enrich our understanding of reporting incentives of firms listed in European exchange-regulated markets. Many initial public offerings (IPOs) in Europe are within exchange-regulated markets where firms are allowed to choose between local GAAP and IFRS. Therefore, this research note describes the regulatory environment and investigates the choice to voluntarily adopt IFRS within European exchange-regulated markets. Overall, less than 20% of the firms voluntarily adopt IFRS and voluntary IFRS adoption upon IPO is positively associated with firm size, foreign firms, stocks offered to institutional investors prior to the IPO, and a future migration to an EU-regulated market.
Original languageEnglish
Pages (from-to)477-485
Number of pages9
JournalJournal of Accounting and Public Policy
Volume37
Issue number5
DOIs
Publication statusPublished - 17 Sept 2018

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