Do you have to adopt to adopt? : evidence on IFRS spillovers in conglomerates
Name
1191221929-MIT.pdf
Size
280.24 KB
Format
Adobe PDF
Checksum (MD5)
1b81916dcc52cac220da70dc12ca213a
Author(s)
Berfeld, Natalie.
Advisor(s)
Nemit Shroff and Rodrigo S. Verdi.
Date Issued
2020
Publisher
Massachusetts Institute of Technology
Abstract
I study the impact of a parent firm's IFRS adoption on the accounting properties of their private non-IFRS-adopting European subsidiaries. In contrast to public European firms, private European firms are typically not required to adopt IFRS. I examine the private subsidiaries that do not adopt IFRS even though their parents do, and find spillover effects on the accounting properties of non-adopting subsidiaries as a result of parental adoption. I present evidence that private subsidiaries report lower earnings management after their parents are mandated to adopt, which I interpret as the subsidiary's earnings becoming more IFRS-like. There effects are stronger for subsidiaries whose parents have a larger ownership stake, and for subsidiaries that are located in a different country than their parent..
Description
Thesis: S.M. in Management Research, Massachusetts Institute of Technology, Sloan School of Management, May, 2020
Cataloged from the official PDF of thesis.
Includes bibliographical references (pages 22-24).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
Terms of Use
MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided.
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