{"id":"https://openalex.org/W2043973283","doi":"https://doi.org/10.1111/j.1468-5957.2006.00611.x","title":"Economic Benefits of Adopting IFRS or US\u2010GAAP \u2013 Have the Expected Cost of Equity Capital Really Decreased?","display_name":"Economic Benefits of Adopting IFRS or US\u2010GAAP \u2013 Have the Expected Cost of Equity Capital Really Decreased?","publication_year":2006,"publication_date":"2006-04-01","ids":{"openalex":"https://openalex.org/W2043973283","doi":"https://doi.org/10.1111/j.1468-5957.2006.00611.x","mag":"2043973283"},"language":"en","primary_location":{"id":"doi:10.1111/j.1468-5957.2006.00611.x","doi":"https://doi.org/10.1111/j.1468-5957.2006.00611.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1468-5957.2006.00611.x","pdf_url":null,"source":{"id":"https://openalex.org/S48254654","display_name":"Journal of Business Finance &amp Accounting","issn_l":"0306-686X","issn":["0306-686X","1468-5957"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-2","jufo-2","norway-1","poland-100","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Business Finance & Accounting","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5028645486","display_name":"Holger Daske","orcid":"https://orcid.org/0000-0001-6153-5269","observed_orcids":["https://orcid.org/0000-0001-6153-5269"]},"institutions":[{"id":"https://openalex.org/I114090438","display_name":"Goethe University Frankfurt","ror":"https://ror.org/04cvxnb49","country_code":"DE","type":"education","lineage":["https://openalex.org/I114090438"]},{"id":"https://openalex.org/I177802217","display_name":"University of Mannheim","ror":"https://ror.org/031bsb921","country_code":"DE","type":"education","lineage":["https://openalex.org/I177802217"]}],"countries":["DE"],"is_corresponding":true,"raw_author_name":"Holger Daske","raw_affiliation_strings":["The author is from the Johann Wolfgang Goethe-Universita\u0308t Frankfurt am Main. This paper is based on his dissertation and forms part of the HARMONIA program on research into accounting harmonisation and standardisation in the European Union. He gratefully acknowledges the financial contribution of the European Commission through the Human Potential Program, Contract HPRN-CT-2000-00062 and of Arthur Andersen and Ernst & Young. He is grateful to Thomson Financial IBES for providing analyst earnings forecast data. He is particularly indebted to Gu\u0308nther Gebhardt and Christian Leuz for their support. He thanks Martin Walker (an editor), Peter Easton (the discussant), Jo\u0308rg Baetge, Wolfgang Ballwieser, Martin Glaum, Luzi Hail, Martien Lubberink, Stuart McLeay, John O\u2019Hanlon, Steve Penman, Peter Pope (an editor), Bill Rees, Steve Young and workshop participants at the EIASM Workshop 2003 (Frankfurt), the VHB Pfingsttagung 2004 (Graz), the AAA/IAS Midyear-Conference 2005 (San Antonio), the EAA Annual Congress 2005 (Go\u0308teborg) and the JBFA Capital Markets Conference 2005 (Windermere) for helpful comments. The paper has received the AAA/IAS Doctoral Student Paper Award 2005","University of Mannheim - Accounting and Taxation"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"The author is from the Johann Wolfgang Goethe-Universita\u0308t Frankfurt am Main. This paper is based on his dissertation and forms part of the HARMONIA program on research into accounting harmonisation and standardisation in the European Union. He gratefully acknowledges the financial contribution of the European Commission through the Human Potential Program, Contract HPRN-CT-2000-00062 and of Arthur Andersen and Ernst & Young. He is grateful to Thomson Financial IBES for providing analyst earnings forecast data. He is particularly indebted to Gu\u0308nther Gebhardt and Christian Leuz for their support. He thanks Martin Walker (an editor), Peter Easton (the discussant), Jo\u0308rg Baetge, Wolfgang Ballwieser, Martin Glaum, Luzi Hail, Martien Lubberink, Stuart McLeay, John O\u2019Hanlon, Steve Penman, Peter Pope (an editor), Bill Rees, Steve Young and workshop participants at the EIASM Workshop 2003 (Frankfurt), the VHB Pfingsttagung 2004 (Graz), the AAA/IAS Midyear-Conference 2005 (San Antonio), the EAA Annual Congress 2005 (Go\u0308teborg) and the JBFA Capital Markets Conference 2005 (Windermere) for helpful comments. The paper has received the AAA/IAS Doctoral Student Paper Award 2005","institution_ids":["https://openalex.org/I114090438"]},{"raw_affiliation_string":"University of Mannheim - Accounting and Taxation","institution_ids":["https://openalex.org/I177802217"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":2,"corresponding_author_ids":["https://openalex.org/A5028645486"],"corresponding_institution_ids":["https://openalex.org/I114090438","https://openalex.org/I177802217"],"apc_list":{"value":3800,"currency":"USD","value_usd":3800},"apc_paid":null,"fwci":89.104,"has_fulltext":false,"cited_by_count":412,"citation_normalized_percentile":{"value":0.99883647,"is_in_top_1_percent":true,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":93,"max":100},"biblio":{"volume":"33","issue":"3-4","first_page":"329","last_page":"373"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10081","display_name":"Auditing, Earnings Management, Governance","score":0.9247999787330627,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10081","display_name":"Auditing, Earnings Management, Governance","score":0.9247999787330627,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T13366","display_name":"Accounting Theory and Financial Reporting","score":0.05119999870657921,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12675","display_name":"Financial Reporting and Valuation Research","score":0.0044999998062849045,"subfield":{"id":"https://openalex.org/subfields/1408","display_name":"Strategy and Management"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/ifrs-adoption","display_name":"IFRS adoption","score":0.9580000042915344},{"id":"https://openalex.org/keywords/us-gaap","display_name":"US GAAP","score":0.7739999890327454},{"id":"https://openalex.org/keywords/cost-of-equity","display_name":"cost of equity","score":0.9179999828338623},{"id":"https://openalex.org/keywords/accounting-standards-adoption","display_name":"accounting standards adoption","score":0.6000000238418579},{"id":"https://openalex.org/keywords/implied-cost-of-equity","display_name":"implied cost of equity","score":0.7200000286102295},{"id":"https://openalex.org/keywords/german-listed-companies","display_name":"German listed companies","score":0.6079999804496765},{"id":"https://openalex.org/keywords/accounting-standards-transition","display_name":"accounting standards transition","score":0.44600000977516174}],"concepts":[{"id":"https://openalex.org/C2778587509","wikidata":"https://www.wikidata.org/wiki/Q176831","display_name":"International Financial Reporting Standards","level":2,"score":0.7249623537063599},{"id":"https://openalex.org/C74734477","wikidata":"https://www.wikidata.org/wiki/Q1479274","display_name":"Cost of capital","level":3,"score":0.6917361617088318},{"id":"https://openalex.org/C121955636","wikidata":"https://www.wikidata.org/wiki/Q4116214","display_name":"Accounting","level":1,"score":0.6062671542167664},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.5914665460586548},{"id":"https://openalex.org/C199728807","wikidata":"https://www.wikidata.org/wiki/Q2578557","display_name":"Equity (law)","level":2,"score":0.5837783813476562},{"id":"https://openalex.org/C2993628901","wikidata":"https://www.wikidata.org/wiki/Q827451","display_name":"Equity capital","level":3,"score":0.5547475218772888},{"id":"https://openalex.org/C43326092","wikidata":"https://www.wikidata.org/wiki/Q362098","display_name":"Historical cost","level":3,"score":0.5514904856681824},{"id":"https://openalex.org/C2781032883","wikidata":"https://www.wikidata.org/wiki/Q3695774","display_name":"Cost of equity","level":4,"score":0.5043507814407349},{"id":"https://openalex.org/C143801662","wikidata":"https://www.wikidata.org/wiki/Q5384683","display_name":"Equity capital markets","level":3,"score":0.4862033724784851},{"id":"https://openalex.org/C154775046","wikidata":"https://www.wikidata.org/wiki/Q188","display_name":"German","level":2,"score":0.4249567687511444},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.38318994641304016},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.36092889308929443},{"id":"https://openalex.org/C143910263","wikidata":"https://www.wikidata.org/wiki/Q750458","display_name":"Capital market","level":2,"score":0.31186816096305847},{"id":"https://openalex.org/C63149375","wikidata":"https://www.wikidata.org/wiki/Q14136184","display_name":"Fair value","level":2,"score":0.23619520664215088},{"id":"https://openalex.org/C95457728","wikidata":"https://www.wikidata.org/wiki/Q309","display_name":"History","level":0,"score":0.0},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.0},{"id":"https://openalex.org/C186027771","wikidata":"https://www.wikidata.org/wiki/Q4008379","display_name":"Valuation (finance)","level":2,"score":0.0},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.0},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.0},{"id":"https://openalex.org/C181622380","wikidata":"https://www.wikidata.org/wiki/Q26911","display_name":"Profit (economics)","level":2,"score":0.0},{"id":"https://openalex.org/C166957645","wikidata":"https://www.wikidata.org/wiki/Q23498","display_name":"Archaeology","level":1,"score":0.0}],"mesh":[],"locations_count":2,"locations":[{"id":"doi:10.1111/j.1468-5957.2006.00611.x","doi":"https://doi.org/10.1111/j.1468-5957.2006.00611.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1468-5957.2006.00611.x","pdf_url":null,"source":{"id":"https://openalex.org/S48254654","display_name":"Journal of Business Finance &amp Accounting","issn_l":"0306-686X","issn":["0306-686X","1468-5957"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-2","jufo-2","norway-1","poland-100","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Business Finance & Accounting","raw_type":"journal-article"},{"id":"pmh:oai:RePEc:bla:jbfnac:v:33:y:2006-04:i:3-4:p:329-373","doi":null,"is_oa":false,"landing_page_url":"http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-5957.2006.00611.x","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"}],"best_oa_location":null,"sustainable_development_goals":[],"sustainable_development_goals_aurora":[{"score":0.41999998688697815,"display_name":"Partnerships for the goals","id":"https://metadata.un.org/sdg/17"}],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":69,"referenced_works":["https://openalex.org/W86881936","https://openalex.org/W206890942","https://openalex.org/W570238629","https://openalex.org/W1499923468","https://openalex.org/W1501673980","https://openalex.org/W1521222246","https://openalex.org/W1538137979","https://openalex.org/W1546044195","https://openalex.org/W1550963511","https://openalex.org/W1593455549","https://openalex.org/W1965672189","https://openalex.org/W1984839164","https://openalex.org/W1995945562","https://openalex.org/W2025352909","https://openalex.org/W2029583424","https://openalex.org/W2047134097","https://openalex.org/W2047134779","https://openalex.org/W2049783972","https://openalex.org/W2061238104","https://openalex.org/W2064305707","https://openalex.org/W2069414789","https://openalex.org/W2071892020","https://openalex.org/W2085317472","https://openalex.org/W2090815169","https://openalex.org/W2102130722","https://openalex.org/W2103099258","https://openalex.org/W2104795328","https://openalex.org/W2107761113","https://openalex.org/W2115219719","https://openalex.org/W2117178635","https://openalex.org/W2118600904","https://openalex.org/W2121762019","https://openalex.org/W2131055507","https://openalex.org/W2139122730","https://openalex.org/W2140662150","https://openalex.org/W2143847861","https://openalex.org/W2146299832","https://openalex.org/W2146377668","https://openalex.org/W2147945105","https://openalex.org/W2149367714","https://openalex.org/W2154187126","https://openalex.org/W2158308588","https://openalex.org/W2164184583","https://openalex.org/W2165519258","https://openalex.org/W2166215547","https://openalex.org/W2167212344","https://openalex.org/W2328740802","https://openalex.org/W2496419428","https://openalex.org/W2509566773","https://openalex.org/W2892334275","https://openalex.org/W3023906401","https://openalex.org/W3106889297","https://openalex.org/W3121531922","https://openalex.org/W3121597473","https://openalex.org/W3121940960","https://openalex.org/W3122533566","https://openalex.org/W3123013680","https://openalex.org/W3123164671","https://openalex.org/W3123227496","https://openalex.org/W3123383562","https://openalex.org/W3123463517","https://openalex.org/W3123676488","https://openalex.org/W3123817661","https://openalex.org/W3124527940","https://openalex.org/W3125512896","https://openalex.org/W3126017435","https://openalex.org/W4211243947","https://openalex.org/W4237183086","https://openalex.org/W4246406111"],"related_works":["https://openalex.org/W4385704653","https://openalex.org/W3121217985","https://openalex.org/W3123885010","https://openalex.org/W4385834596","https://openalex.org/W2125538281","https://openalex.org/W2253072508","https://openalex.org/W1993106831","https://openalex.org/W3170665127","https://openalex.org/W4237077539","https://openalex.org/W3174750081"],"abstract_inverted_index":{"Abstract:":[0],"The":[1],"question":[2],"of":[3,7,19,25,30,55,71,85,93,101,117,135],"whether":[4],"the":[5,26,40,53,81,97,108,127,132],"adoption":[6,29],"International":[8],"Financial":[9],"Reporting":[10],"Standards":[11],"(IFRS)":[12],"results":[13],"in":[14,23,138],"measurable":[15],"economic":[16,83],"benefits":[17,84],"is":[18],"special":[20],"interest,":[21],"particularly":[22],"light":[24],"European":[27],"Union's":[28],"IFRS":[31],"for":[32,57,120],"listed":[33],"companies.":[34],"In":[35],"this":[36,86],"paper,":[37],"I":[38,67,130],"investigate":[39,80],"common":[41],"conjecture":[42],"that":[43,74],"internationally":[44],"recognised":[45],"financial":[46],"reporting":[47,87],"standards":[48,78],"(IAS/IFRS":[49],"or":[50,124],"US\u2010GAAP)":[51],"reduce":[52],"cost":[54,92,116,134],"capital":[56,95,119,137],"adopting":[58],"firms.":[59],"Building":[60],"on":[61],"Leuz":[62],"and":[63,79,99],"Verrecchia":[64],"(2000)":[65],",":[66],"use":[68,98],"a":[69],"set":[70],"German":[72],"firms":[73,121],"have":[75,142],"adopted":[76],"such":[77],"potential":[82],"strategy":[88],"by":[89],"analysing":[90],"their":[91],"equity":[94,118,136],"through":[96],"customisation":[100],"available":[102],"implied":[103],"estimation":[104],"methods.":[105],"Evidence":[106],"from":[107],"1993\u20132002":[109],"period":[110,129],"fails":[111],"to":[112,141],"document":[113],"lower":[114],"expected":[115,133],"applying":[122],"IAS/IFRS":[123],"US\u2010GAAP.":[125],"During":[126],"transition":[128],"analyse,":[131],"fact":[139],"appear":[140],"rather":[143],"increased":[144],"under":[145],"non\u2010local":[146],"accounting":[147],"standards.":[148]},"counts_by_year":[{"year":2026,"cited_by_count":1},{"year":2025,"cited_by_count":10},{"year":2024,"cited_by_count":9},{"year":2023,"cited_by_count":15},{"year":2022,"cited_by_count":10},{"year":2021,"cited_by_count":16},{"year":2020,"cited_by_count":22},{"year":2019,"cited_by_count":14},{"year":2018,"cited_by_count":16},{"year":2017,"cited_by_count":24},{"year":2016,"cited_by_count":31},{"year":2015,"cited_by_count":23},{"year":2014,"cited_by_count":30},{"year":2013,"cited_by_count":26},{"year":2012,"cited_by_count":30}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2016-06-24T00:00:00"}