Cover Image

Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries

International Financial Reporting Standard (IFRS) is globally accepted as a high-quality reporting standard. Countries implement IFRS because they believe that more disclosure leads to agency costs reduction and may result in adverse selection costs or information asymmetry reduction. However, studi...

Full description

Saved in:
Bibliographic Details
Main Authors: Yousefi Nejad, Maryam, Azlina Ahmad,, Ruzita Abdul Rahim,, Fairuz Md Salleh,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/16738/1/43966-141159-1-SM.pdf
http://journalarticle.ukm.my/16738/
https://ejournal.ukm.my/ajac/issue/view/1350
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-ukm.journal.16738
record_format eprints
spelling my-ukm.journal.167382021-06-08T02:38:25Z http://journalarticle.ukm.my/16738/ Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries Yousefi Nejad, Maryam Azlina Ahmad, Ruzita Abdul Rahim, Fairuz Md Salleh, International Financial Reporting Standard (IFRS) is globally accepted as a high-quality reporting standard. Countries implement IFRS because they believe that more disclosure leads to agency costs reduction and may result in adverse selection costs or information asymmetry reduction. However, studies on the relationship between IFRS and information asymmetry have thus far provided mixed evidence. On the other side, there are limited studies in this area that are focused on ASEAN countries. Therefore, more studies are needed to better understand whether IFRS drives information asymmetry reduction especially in ASEAN countries as developing countries. Therefore, this study contributes to knowledge by examining the association between IFRS and information asymmetry within ASEAN-6 countries, as a setting for developing countries. The results of the OLS (Static Panel estimation technique) indicate that IFRS has a negative and significant relationship with information asymmetry. It reveals that IFRS results in information asymmetry reduction throughout ASEAN-6 countries. Besides using the OLS, this study also applies a Generalized Moment Method (GMM) as an additional test, to measure dynamic relationships and correct the potential endogeneity problem between IFRS and information asymmetry. Besides theoretical and methodological contributions, findings of this study are useful for the adopter and non-adopter countries to understand the consequences of IFRS compliance on information asymmetry. The findings provide important inputs to policymakers of Indonesia and Vietnam who are contemplating adopting IFRS. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16738/1/43966-141159-1-SM.pdf Yousefi Nejad, Maryam and Azlina Ahmad, and Ruzita Abdul Rahim, and Fairuz Md Salleh, (2020) Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries. Asian Journal of Accounting and Governance, 14 . pp. 1-18. ISSN 2180-3838 https://ejournal.ukm.my/ajac/issue/view/1350
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description International Financial Reporting Standard (IFRS) is globally accepted as a high-quality reporting standard. Countries implement IFRS because they believe that more disclosure leads to agency costs reduction and may result in adverse selection costs or information asymmetry reduction. However, studies on the relationship between IFRS and information asymmetry have thus far provided mixed evidence. On the other side, there are limited studies in this area that are focused on ASEAN countries. Therefore, more studies are needed to better understand whether IFRS drives information asymmetry reduction especially in ASEAN countries as developing countries. Therefore, this study contributes to knowledge by examining the association between IFRS and information asymmetry within ASEAN-6 countries, as a setting for developing countries. The results of the OLS (Static Panel estimation technique) indicate that IFRS has a negative and significant relationship with information asymmetry. It reveals that IFRS results in information asymmetry reduction throughout ASEAN-6 countries. Besides using the OLS, this study also applies a Generalized Moment Method (GMM) as an additional test, to measure dynamic relationships and correct the potential endogeneity problem between IFRS and information asymmetry. Besides theoretical and methodological contributions, findings of this study are useful for the adopter and non-adopter countries to understand the consequences of IFRS compliance on information asymmetry. The findings provide important inputs to policymakers of Indonesia and Vietnam who are contemplating adopting IFRS.
format Article
author Yousefi Nejad, Maryam
Azlina Ahmad,
Ruzita Abdul Rahim,
Fairuz Md Salleh,
spellingShingle Yousefi Nejad, Maryam
Azlina Ahmad,
Ruzita Abdul Rahim,
Fairuz Md Salleh,
Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries
author_facet Yousefi Nejad, Maryam
Azlina Ahmad,
Ruzita Abdul Rahim,
Fairuz Md Salleh,
author_sort Yousefi Nejad, Maryam
title Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries
title_short Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries
title_full Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries
title_fullStr Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries
title_full_unstemmed Does IFRS drive information asymmetry reduction? Evidence from Asean-6 countries
title_sort does ifrs drive information asymmetry reduction? evidence from asean-6 countries
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/16738/1/43966-141159-1-SM.pdf
http://journalarticle.ukm.my/16738/
https://ejournal.ukm.my/ajac/issue/view/1350
_version_ 1702170870920773632
score 13.211869

Similar Items