The Impact of International Financial Reporting Standards Adoption on Value-Relevance of Earnings in Listed Companies of the Plantation Sector in Sri Lanka
Abstract
This study investigates the impact of International Financial Reporting Standards (IFRS) adoption on value-relevance of earnings in listed companies of the plantation sector in Sri Lanka. The main objective is to identify whether the value of earnings has increased after the adoption of IFRSs in listed companies of the plantation sector in Sri Lanka. In order to investigate the impact of IFRS adoption on the value-relevance of earnings in the listed companies this study used a panel data regression analysis of 144 firms per quarter observations of share prices and earnings per share (EPS) over a period of six years before and after the adoption of IFRSs. In addition to earnings, the size of the firm and its leverage were also considered as moderating variables in explaining the share prices. The results indicate that the value-relevance of earnings had decreased after the adoption of IFRSs.
DOI: https://doi.org/10.4038/jcpad.v3i1.16 | Journal eISSN: 2989-0675
Language: English
Page range: 26 - 39
Published on: Dec 31, 2019
Published by: Faculty of Management Studies and Commerce, Sri Jayewardenepura University
In partnership with: Paradigm Publishing Services
Keywords:
© 2019 H. M. U. Wijekoon, R. K. D. Perera, I. A. M. M. Perera, A. G. K. G. K. Athauda, T. D. L. Yasas, S. A. Udeshika, P. M. Hewage, R. A. H. K. Ranasinghe, V. R. KandanaArachchi, G. W. C. Indunuwan, D. S. N. P. Senaratne, published by Faculty of Management Studies and Commerce, Sri Jayewardenepura University
This work is licensed under the Creative Commons Attribution 4.0 License.