Market Reaction to the adoption of IFRSin South Korea

摘要

This study examines Korean stock market reactions to the adoption of International Financial Reporting Standards (IFRS) in South Korea. We find the relationship between firm value and explanatory accounting variables changes with IFRS adoption. However, we cannot find proof that IFRS adoption increases firm value yet. It'd be very special cases where convergent benefits of IFRS adoption are clearly identified, such as higher agent cost while we cannot similar analysis with South Korean financial reports.