Does IFRS adoption increase accuracy in valuing IPOs?

Abstract

In this study we explore accuracy of valuing IPOs under different accounting principles U S GAAP and IFRS We test two groups the U S public and the E U public which adopted GAAP and IFRS respectively The sample period is from 2006 to 2014 Using comparable firms method when we conducting valuation of IPOs Overall the absolute error is 72 4% in U S public compare with 66 72% in E U public The results suggest that IFRS adoption works better than GAAP adoption in valuing IPOs We also find that the valuation of IPOs is more accuracy with excluding young firms

Date of Award	2014 Dec 30
Original language	English
Supervisor	Hsuan-Chu Lin (Supervisor)