The Effect Of IFRS Adoption On Likelihood Of Management Earnings Forecasts: Evidence In Korea

Main Article Content

Chang Seop Rhee
Yong Keun Yoo
Seung Min Cha


International Financial Reporting Standard, IFRS, Management Earnings Forecasts


Korean listed companies adopted International financial reporting standards (IFRS) in 2011 mandatorily. The IFRS adoption modifies corporate financial reporting structure and further it can affect managers’ incentive for disclosing their earnings forecasts. We investigate the association between IFRS adoption and likelihood of management earnings forecasts. From the empirical results, we find that mandatory IFRS adopted companies are less likely to issue their earnings forecasts after IFRS adoption. It implies that investors’ belief about management earnings forecasts as useful information is weakened after IFRS adoption compare to pre-IFRS adoption period. Therefore, managers’ incentive for providing earnings forecasts decreases. This study will contribute to academics and disclosure-related practitioners by reporting how IFRS adoption makes an influence to managers’ incentive of management earnings forecasts issuance. We also believe that the empirical evidence may shed some lights on the understanding of the spillover effect of IFRS adoption to management earnings forecasts. 


Download data is not yet available.
Abstract 274 | PDF Downloads 344

Most read articles by the same author(s)