Family Control, Board Monitoring and the Effects of Mandatory IFRS Reporting: Evidence of Accounting Quality and Economic Consequences

Description

This study will empirically investigate whether the mandatory adoption of IFRS in Hong Kong has increased accounting quality and generated desirable economic consequences such as lower bidask spreads, a lower cost of capital and higher firm value. The researchers will also examine whether the improvement in accounting quality and the economic consequences from IFRS implementation, if any, are more prevalent in:non-family-controlled firms than in family-controlled firms; andin firms with good corporate governance characteristics.The findings of this study will provide an important check on the success or otherwise of IFRS adoption and useful information for regulators and accounting standard setters in Hong Kong and Southeast Asian countries. Further, the findings on whether the outcomes of IFRS adoption in Hong Kong vary according to the existence of family control and the extent of corporate board monitoring will provide timely feedback for policy makers to review the regulatory framework.