Title: Accounting standards and external corporate governance: the effect of mandatory IFRS adoption on analyst coverage

Authors: Mohammad I. Almaharmeh; Ali A. Shehadeh

Addresses: Department of Accounting, The University of Jordan/Aqaba, Aqaba, Jordan ' Department of Finance, The University of Jordan/Aqaba, Aqaba, Jordan

Abstract: This study investigates whether mandatory adoption of International Financial Reporting Standards (IFRS) affects financial analysts' decisions to cover the firms with their earnings per share forecasts. The results suggest that mandatory adoption of IFRS attracts more security analysts to follow the firms. Where the IFRS variable records a significant positive effect on the analyst coverage variable, this result is robust with ordinary least squares and fixed-effect models based on ten years before and ten years after the adoption data.

Keywords: International Financial Reporting Standards; IFRS; financial analysts; analyst coverage; corporate governance; external corporate governance; UK.

DOI: 10.1504/IJEBR.2023.132643

International Journal of Economics and Business Research, 2023 Vol.26 No.2, pp.224 - 236

Received: 06 May 2021
Accepted: 24 Jun 2021
Published online: 07 Aug 2023 *

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