70th Seminar on Finance and Accounting
November 17, 2016
Topic: International Financial Reporting Standards, Analyst Following, Institutional
Infrastructure, and Stock Price Synchronicity around the World
Presenter:Jeong-Bon Kim, Professor, School of Accounting and Finance, The Hong Kong Polytechnic University |
Time: April 25, 2008(Friday)3:00—4:30 PM
Venue: Room 501, Jiageng Bld 2
Chair: Qian Sun, professor & dean, IFAS
Abstract:
In this paper, we investigate whether the voluntary adoption of International Financial Reporting Standards (IFRS) improves information environment, measured by stock price synchronicity or the extent to which firm-specific information is impounded into stock prices. We also study the role of analyst following and institutional infrastructure in determining the relation between IFRS adoption and stock price synchronicity. Our results reveal the following: IFRS adoption encourages the incorporation of firm-specific information into stock prices, which in turn leads to a decrease in stock price synchronicity. This synchronicity-reducing effect of IFRS adoption is attenuated for firms with high analyst following. Moreover, IFRS adoption encourages the incorporation of firm-specific information into stock prices to a greater (lesser) extent in countries with poor (good) institutional infrastructures where publicly available, firm-specific information such as accounting disclosures is of low (high) quality.
Presenter Introduction:
Prof. Kim Jeong-Bon got his BBA and MBA from
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