Market Reaction To IFRS: Evidence from the Athens Stock Exchange

Abstract

The capital market effects of IAS/IFRS have been examined in the international literature and have indicated taht the effects are significant.In the contrary,evidence drawn from the Athens Stock Exchange indicates that there is no effect of IAS/IFRS on stock prices and returns.The point was whether mandatory adoption of AS/IFRS could guarrantee a value-relevant accounting information.Restricted to a country with poor institutional factors affecting teh preparers'financial reporting incentives,the empirical findings are justified.On the other hand,the transition from a tax-driven accounting system which was characterized by a stakeholder(debt-holder) orientation to a shareholder oriented(and independent from tax reporting considerations) accounting system seems to be ineffective up to date.