THE EFFECT OF IFRS AND CEO OVERCONFIDENCE ON VALUE RELEVANCE

Authors

  • Ashraf A. Ahmed PhD student at accounting, University of Basrah, College of Administration and Economics, Department of Accounting.
  • Mundher Al-hamood Doctor of Philosophy in Accounting. University of Basrah, College of Administration and Economics, Department of Accounting.

Keywords:

IFRS, value relevance, CEO overconfidence, organization

Abstract

This study analyzes the role played by International Financial Reporting Standards (IFRS) and CEO overconfidence on the level of value relevance found in the financial reports. The study determines whether the value relevance is affected by the mandatory adoption of IFRS. This study also investigates whether the managers with overconfidence lead to a high level of value relevance after adopting IFRS. Through using a sample of EU firms consisting of 25442 firm-year observations, for the period from 2002 to 2012, the researchers reached the conclusion that firms' adherence to value relevance will increase after adopting IFRS and the firms in which managers are characterized by low overconfidence. The findings of this research are novel contribution to literature and practice for value relevance.

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Published

2025-02-16

Issue

Vol. 16 No. 3 (2024): International Journal of eBusiness and eGovernment Studies (IJEBEG)

Section

Original Article