Title: The effect of mandatory adoption of IFRS on the cost of equity of capital in the French context

Authors: Basma Ben Nefissa; Faouzi Jilani

Addresses: Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Campus Universitaire, B.P. 248, El Manar II 2092, Tunisia ' Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Campus Universitaire, B.P. 248, El Manar II 2092, Tunisia

Abstract: The purpose of our research is to analyse the impact of the mandatory adoption of IFRS on one of the aspects of the quality of accounting information, which is the cost of equity of capital. In order to treat this relationship, we chose to refer to a particular context, which is the French context, more particularly the French companies belonging to the SBF 120 index. We have followed these companies over two periods: the first period is the so-called pre adoption period of IFRS, which runs from 2003 to 2004, the second period runs from 2005 to 2013 and that is the period of post-adoption. The issue of our research is; therefore, as follows: what is the impact of the mandatory adoption of IFRS on the cost of equity of capital? After empirical analysis, we found that the mandatory adoption of IFRS has led to a decrease in the cost of equity of capital.

Keywords: IFRS; quality of accounting information; mandatory adoption of IFRS; cost of equity of capital.

DOI: 10.1504/IJCA.2020.110333

International Journal of Critical Accounting, 2020 Vol.11 No.4, pp.350 - 367

Received: 23 Jan 2020
Accepted: 21 Mar 2020
Published online: 14 Oct 2020 *

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