Earnings persistence and value relevance with the adoption of IFRS: a study of companies in GLENIF countries

Authors

  • Antônio Carlos Brunozi Júnior Universidade Federal de Viçosa - Campus de Rio Paranaíba Author
  • Ernani Ott Unisinos Author
  • Daniela Miguel Coelho Universidade Federal de Pelotas Author
  • Luciana Arenhart Menegat UNISINOS/FEEVALE Author
  • Fabiano Lima Webber Universidade de Passo Fundo Author

DOI:

https://doi.org/10.4025/enfoque.v36i3.31820

Abstract

The apparent expansion of IFRS internationally promoted literature interests in analyzing their impact on the earnings quality. In these associations, research indicated setbacks in empirical findings with these dilemmas more pronounced in studies of companies from developing countries. Therefore, in this study, we investigated, from the economic and institutional perspectives, if the IFRS affected the persistence and the value relevance of financial results of companies in GLENIF countries. To test these predictions, the survey included 563 companies from Argentina, Brazil, Chile, Colombia, Mexico and Peru from 2003 to 2014. With the application of models of Easton and Harris (1991); Ohlson (1995), Sloan (1996); Burgstahler and Dichev (1997) and Pincus, Venkatachalam and Rajgopal (2007) employed the regression panel data. The results showed a partial acceptance of the hypothesis. The accounting data were more relevant after the implementation of IFRS, while only Argentina, Colombia and Mexico showed the most persistent financial results. In comments on the preliminary adoption of IFRS, the financial results of companies in the countries were more persistent in adopting for a longer period these standards, as opposed to the value relevance, there were no significant differences after IFRS. In summary, this study found that the IFRS alone are not institutional factors to fully improve the quality of accounting results in developing countries.

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Author Biographies

  • Antônio Carlos Brunozi Júnior, Universidade Federal de Viçosa - Campus de Rio Paranaíba
    Doutorando em Ciências Contábeis na Unisinos. Mestre em Administração Pública na Universidade Federal de Viçosa. Docente do curso de Ciências Contábeis do Instituto de Ciências Sociais e Aplicadas da Universidade Federal de Viçosa - Campus de Rio Paranaíba.
  • Ernani Ott, Unisinos
    Doutor em Ciências Contábeis pela Universidade de Deusto, Espanha. Docente titular da Universidade do Vale do Rio dos Sinos (UNISINOS) e docente da Faculdade São Francisco de Assis – UNIFIN.
  • Daniela Miguel Coelho, Universidade Federal de Pelotas
    Doutoranda em Ciências Contábeis - Universidade do Vale do Rio dos Sinos – UNISINOS. Docente da Universidade Federal de Pelotas
  • Luciana Arenhart Menegat, UNISINOS/FEEVALE
    Doutoranda em Ciências Contábeis - Universidade do Vale do Rio dos Sinos – UNISINOS. Docente da UNISINOS e da FEEVALE
  • Fabiano Lima Webber, Universidade de Passo Fundo
    Doutorando em Ciências Contábeis - Universidade do Vale do Rio dos Sinos – UNISINOS. Docente da Universidade de Passo Fundo

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Published

2017-09-02

Issue

Vol. 36 No. 3 (2017)

Section

Original Articles

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How to Cite

Brunozi Júnior, A. C., Ott, E., Coelho, D. M., Menegat, L. A., & Webber, F. L. (2017). Earnings persistence and value relevance with the adoption of IFRS: a study of companies in GLENIF countries. Enfoque: Reflexão Contábil, 36(3), 33-51. https://doi.org/10.4025/enfoque.v36i3.31820