Centro de Documentación de Fundación MAPFRE - The Market reaction to the adoption of IFRS in the European insurance industry

Notes: Sumario: This study examines the market reaction of the European insurance industry to the adoption of International Financial Reporting Standards (IFRS) in Europe. Using an event study methodology, we find that investors in the insurance industry reacted favourably to most of the events that led to the adoption of IFRS. However, the positive reaction is not consistent across all events, which may reveal sorne investor concem as to whether the benefits of IFRS adoption (i.e. comparability and transparency) exceed the costs (i.e. increase audit fees andlor managerial discretion). We also find that investors' reaction to IFRS adoption differs between life and nonlife insurers. Specifically, our multivariate results show that investors in the non-life insurance industry react more favourably to IFRS adoption, which indicates that they anticípate the benefits of IFRS will exceed the costs. Related records: En: Geneva papers on risk and insurance : issues and practice. - Geneva : The Geneva Association, 1976- = ISSN 1018-5895. - 01/10/2018 Volumen 43 Número 4 - octubre 2018 , p. 653-703Materia / lugar / evento: Mercado de seguros Normas internacionales de información financiera Otros autores: Abdallah, Wissam
Salama, Peras M.
Other categories: 219

Rights: In Copyright (InC)

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