The influence of mandatory adoption of IFRS in Argentina on value relevance of accounting information

This study investigates the effect of mandatory adoption International Financial Reporting Standards (IFRS) on value relevance accounting information in Argentina, which originated via regulation that required all public non-financial companies to change standards, for fiscal periods starting January 2012. As with most value-relevance studies, this research employs Ohlson Model examine empirical association between equity prices and two main variables: Net Earnings (representing Income Statement) Book Value Equity Balance Sheet). Panel data 40 over a period 23 years, from quarterly financial reports published by Buenos Aires Stock Exchange (BCBA), are examined. The reported results suggest IFRS Argentina does not improve any tested variables. On contrary, after switch numbers present weaker stock price.