Abstract
In this study, we examine whether productivity shifts when accounting standards change. Using mandatory International Financial Reporting Standards (IFRS) as a shock to the accounting regime, we examine the changes in country-level productivity. We find that mandatory IFRS-adopting countries experience significant increases in total factor productivity (TFP) and labor productivity. The post-adoption productivity improvements are greater for countries without IFRS convergence. Further, TFP increases more for countries that experience a larger increase in industry comparability. Taken together, the evidence suggests that the new IFRS accounting regime increases economic productivity via improving information environments and facilitating internal firm decisions.
Original language | English (US) |
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Pages (from-to) | 68-84 |
Number of pages | 17 |
Journal | Production and Operations Management |
Volume | 30 |
Issue number | 1 |
DOIs | |
State | Published - Jan 2021 |
Keywords
- IFRS
- accounting standards
- information environments
- productivity
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Management of Technology and Innovation