Business, Management and Accounting
a year ago

IFRS Adoption in Europe Lowers Equity Capital Costs for Firms

Journal of risk and financial management
Do IFRS Disclosure Requirements Reduce the Cost of Equity Capital? Evidence from European Firms
Ghouma Ghouma, Hamdi Becha, Maha Kalai, Kamel Helali, Myriam Ertz

Paper Summary

Related papers

Business, Management and Accounting
a year ago

IFRS Adoption in Europe Lowers Equity Capital Costs for Firms

Earnings Management
Value-based Management
Asset Pricing
1 view
Theme background image
Social Sciences
3 years ago

Corruption drives up cost of equity, hitting global markets hard.

Corruption Causes
Corporate Governance
Asset Pricing
Economics, Econometrics and Finance
4 years ago

Jordanian Companies Benefit from More Reliable Cost of Equity Capital Estimates

Asset Pricing
Insurance Dynamics
Corporate Governance
1 view

IFRS standards help European firms listed on STOXX Europe 600 reduce their cost of equity capital. The study looked at data from 9773 firm-year observations between 1994 and 2022. By using a modified price-earnings-growth ratio model and GMM system, the researchers found that adopting IFRS leads to lower costs for firms. This is good news for investors, regulators, and policymakers.