The effects of financial reporting on bank loan contracting in global markets: Evidence from mandatory IFRS adoption
Abstract
This discussion is written for “The Effect of Financial Reporting on Bank Loan Contracting in Global Markets: Evidence from Mandatory IFRS Adoption” by Chen, Chin, Wang, and Yao (2015). I begin with the research question and a brief summary of the main findings of this study and subsequently discuss the strengths and some potential limitations of the study. This study seeks to contribute to the literature by investigating the effect of mandatory IFRS adoption in 18 countries on price and nonprice contract terms. The evidence provided in this study suggests that mandatory IFRS adoption increases information asymmetry between firms and loan providers, which leads to trade-offs between contract terms.
Publication Title
Journal of International Accounting Research
Recommended Citation
Lin, S. (2015). The effects of financial reporting on bank loan contracting in global markets: Evidence from mandatory IFRS adoption. Journal of International Accounting Research, 14 (2), 83-87. https://doi.org/10.2308/jiar-10473
