The effect of IFRS adoption on the value relevance of accounting information: the case of Colombian banks

  1. DIANA MILENA PACHECO-ORTIZ 1
  2. JUAN FERNANDO RENDÓN-GARCÍA 1
  3. HERNÁN DARÍO VILLADA-MEDINA 1
  1. 1 Instituto Tecnológico Metropolitano, Medellín, Colombia
Zeitschrift:
Rect@: Revista Electrónica de Comunicaciones y Trabajos de ASEPUMA

ISSN: 1575-605X

Datum der Publikation: 2021

Ausgabe: 22

Nummer: 2

Seiten: 77-90

Art: Artikel

DOI: 10.24309/RECTA.2021.22.2.03 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

Andere Publikationen in: Rect@: Revista Electrónica de Comunicaciones y Trabajos de ASEPUMA

Zusammenfassung

The value relevance of accounting information can be measured through statistical relationships between the information contained in the financial statements and stock market values or returns. In this paper, we compare the value relevance of the accounting information of eight banks listed on the Colombian Stock Exchange (BVC, for its acronym in Spanish) before and after the adoption of the International Financial Reporting Standards (IFRS). For this purpose, we use three monthly time series (book value of equity per share—representing the statement of financial position—, earnings per share—representing the comprehensive income statement—, and stock price per share) from January 2001 to December 2018. In addition, we apply panel data models based on Ohlson's model. The results show that accounting information has been relevant before and after IFRS adoption, which means that the implementation of IFRS has not increased its value relevance.

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