Mandatory IFRS Adoption and Financial Statement Comparability
研究强制采用IFRS是否通过提高财务报表可比性来减少内幕交易获利，发现英国公司采用后内幕买入异常回报降低，支持可比性改善带来资本市场收益。
This study examines whether mandatory adoption of International Financial Reporting Standards ( IFRS ) leads to capital market benefits through enhanced financial statement comparability. U.K. domestic standards are considered very similar to IFRS , suggesting any capital market benefits observed for U.K.‐domiciled firms are more likely attributable to improvements in comparability (i.e., better precision of across ‐firm information) than to changes in information quality specific to the firm (i.e., core information quality). If IFRS adoption improves financial statement comparability, we predict this should reduce insiders' ability to benefit from private information. Consistent with these expectations, we find that abnormal returns to insider purchases ― used to proxy for private information ― are reduced following IFRS adoption. Similar results obtain across numerous subsamples and proxies used to isolate IFRS effects attributable to comparability. Together, the findings are consistent with mandatory IFRS adoption improving comparability and thus leading to capital market benefits by reducing insiders' ability to exploit private information.