Abstract
This article answers the question of whether the adoption of International Financial Reporting Standards (IFRS) reduces the cost of equity capital, with a focus on the tourism industry. We employ a set of global tourism companies and find that mandatory IFRS adoption has a significantly negative relation with the cost of equity capital. However, we find that this relation is varied with different business cultures and geographic areas. Moreover, from interactive analyses of country institutions for the relation between mandatory IFRS adoption and tourism firm’s cost of equity, we show that adopting IFRS complements the deficiencies of various country institutions, such as investor protection, the strength of legal enforcement, and corporate governance.
| Original language | English |
|---|---|
| Pages (from-to) | 1615-1631 |
| Number of pages | 17 |
| Journal | Tourism Economics |
| Volume | 23 |
| Issue number | 8 |
| DOIs | |
| Publication status | Published - 2017 Dec 1 |
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All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Tourism, Leisure and Hospitality Management
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Does IFRS adoption decrease the cost of equity of the global tourism firms? / Feng, Zhi Yuan; Wang, Ying Chieh; Huang, Hua-Wei.
In: Tourism Economics, Vol. 23, No. 8, 01.12.2017, p. 1615-1631.Research output: Contribution to journal › Article
TY - JOUR
T1 - Does IFRS adoption decrease the cost of equity of the global tourism firms?
AU - Feng, Zhi Yuan
AU - Wang, Ying Chieh
AU - Huang, Hua-Wei
PY - 2017/12/1
Y1 - 2017/12/1
N2 - This article answers the question of whether the adoption of International Financial Reporting Standards (IFRS) reduces the cost of equity capital, with a focus on the tourism industry. We employ a set of global tourism companies and find that mandatory IFRS adoption has a significantly negative relation with the cost of equity capital. However, we find that this relation is varied with different business cultures and geographic areas. Moreover, from interactive analyses of country institutions for the relation between mandatory IFRS adoption and tourism firm’s cost of equity, we show that adopting IFRS complements the deficiencies of various country institutions, such as investor protection, the strength of legal enforcement, and corporate governance.
AB - This article answers the question of whether the adoption of International Financial Reporting Standards (IFRS) reduces the cost of equity capital, with a focus on the tourism industry. We employ a set of global tourism companies and find that mandatory IFRS adoption has a significantly negative relation with the cost of equity capital. However, we find that this relation is varied with different business cultures and geographic areas. Moreover, from interactive analyses of country institutions for the relation between mandatory IFRS adoption and tourism firm’s cost of equity, we show that adopting IFRS complements the deficiencies of various country institutions, such as investor protection, the strength of legal enforcement, and corporate governance.
UR - http://www.scopus.com/inward/record.url?scp=85034578576&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85034578576&partnerID=8YFLogxK
U2 - 10.1177/1354816617715158
DO - 10.1177/1354816617715158
M3 - Article
AN - SCOPUS:85034578576
VL - 23
SP - 1615
EP - 1631
JO - Tourism Economics
JF - Tourism Economics
SN - 1354-8166
IS - 8
ER -