IFRS Adoption and Its Influence on Capital Markets in Transition Countries: The Case of Russia

Gerenzel Talykova

Diplomová práce

Anotace:

Capital markets development is an integral part of overall economic growth of any country. Accounting harmonization is aimed to increase the attractiveness of capital markets by creation of synchronized financial reporting environment globally so that the capital is effectively allocated with the lowest costs and increased liquidity. To the date, more than a hundred of countries implemented IFRS into the national accounting frameworks, therefore the need for the assessment of the real impacts on capital markets is obvious. The main goal of this study is to identify whether there is statistical evidence of the relationship between decreased/increased cost of equity capital among Russian listed companies and mandatory adoption of IFRS. Theoretical part includes an overview of the relevant theory, reasons of accounting harmonization as well as potential challenges. There are also described the main findings and real evidences of adoption impacts on the main capital and financial markets. Practical part of this paper is aimed to investigate whether the proposed benefits of IFRS adoption may be similarly observed in an environment of transition economy.

Abstract:

Capital markets development is an integral part of overall economic growth of any country. Accounting harmonization is aimed to increase the attractiveness of capital markets by creation of synchronized financial reporting environment globally so that the capital is effectively allocated with the lowest costs and increased liquidity. To the date, more than a hundred of countries implemented IFRS into the national accounting frameworks, therefore the need for the assessment of the real impacts on capital markets is obvious. The main goal of this study is to identify whether there is statistical evidence of the relationship between decreased/increased cost of equity capital among Russian listed companies and mandatory adoption of IFRS. Theoretical part includes an overview of the relevant theory, reasons of accounting harmonization as well as potential challenges. There are also described the main findings and real evidences of adoption impacts on the main capital and financial markets. Practical part of this paper is aimed to investigate whether the proposed benefits of IFRS adoption may be similarly observed in an environment of transition economy.

Klíčová slova

Cost of equity capital, International Financial Reporting Standards, Transition economy, Russia

Keywords

Russia, Cost of equity capital, International Financial Reporting Standards (IFRS), Transition economy

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 29. 11. 2016

Obhajoba závěrečné práce

• Obhajoba proběhla 8. 6. 2017
• Vedoucí: David Procházka
• Oponent: Libor Vašek

Vysoká škola ekonomická v Praze

Magisterský studijní program:
Finance and Accounting