IFRS and secrecy : assessing accounting value relevance across Africa

Hillier, David and Hodgson, Allan and Ngole, Shaban (2016) IFRS and secrecy : assessing accounting value relevance across Africa. Journal of International Financial Management and Accounting, 27 (3). pp. 237-268. ISSN 0954-1314 (https://doi.org/10.1111/jifm.12043)

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Abstract

We examine the value relevance of accounting across several African countries and test whether IFRS improved the value association of earnings and equity book values. We report a stronger valuation association between accounting and stock prices in African countries classified as having a secrecy culture. This increases after IFRS and more so for earnings. On the other hand, IFRS induced a stronger increase in the book value coefficient in the less secretive and more developed South African market. We surmise that the more conceptual focus of IFRS induced an increased demand for higher-quality accounting professionals, which had a filtering-down effect of improving quality information flow and breaking down the secrecy culture. Our research highlights the diverse impacts of IFRS and the role of culture, asset markets and accounting professionalism, in driving the relevance of accounting components across Africa.

ORCID iDs

Hillier, David ORCID logoORCID: https://orcid.org/0000-0002-1591-4038, Hodgson, Allan and Ngole, Shaban;
  • Item type:Article
    ID code:61556
    Dates:
    Date
    Event
    31 October 2016
    Published
    5 November 2015
    Published Online
    Notes:This is the peer reviewed version of the following article: Hillier, D., Hodgson, A., & Ngole, S. (2016). IFRS and secrecy: assessing accounting value relevance across Africa. Journal of International Financial Management and Accounting, 27(3), 237-268., which has been published in final form at https://doi.org/10.1111/jifm.12043. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
    Subjects:Social Sciences > Commerce > Accounting
    Department:Strathclyde Business School > Accounting and Finance
    Depositing user: Pure Administrator
    Date deposited:11 Aug 2017 10:35
    Last modified:11 Nov 2024 11:18
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/61556
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