Economic Consequences of IFRS Adoption: The Role of Changes in Disclosure Quality*

This study adopts a two‐step approach to highlight the disclosure quality channel that drives economic consequences of IFRS adoption. This approach helps address the identification challenge noted by prior research and offers direct evidence on the role of disclosure quality. In the first step, we document the impact of the IFRS mandate on changes in disclosure quality proxied by the granularity of line item disclosure in financial statements. We find that IFRS‐adopting firms provide more disaggregated information upon IFRS adoption, such as more granular disclosure of intangible assets and long‐term investments on the balance sheet and greater disaggregation of depreciation, amortization, and nonoperating income items on the income statement. In the second step, we link the observed disclosure changes to the benefits and costs of IFRS adoption. We show that greater disaggregated information due to IFRS adoption enhances market liquidity and decreases information asymmetry, but does not affect audit fees differentially. Our evidence has implications for standard setters as they evaluate cost‐benefit trade‐offs when considering disclosure changes in the future.     

Evidence of European Trade and Investment U-Shaping Industrial Output in Bulgaria, Hungary, Poland, and Romania

Industrial output in Central and Eastern Europe evolved in a U-shape during the first seven years of transition. The literature explains the initial collapse of industrial output as an inefficient outcome driven by supply side distortions that constrained the transition process. We show that the U-shape experience of industrial sectors is an outcome driven by an intrasector change, induced by investment demand shocks, in the market orientation of production away from products traditionally sold into the CMEA market and towards products traditionally sold into the EU market. This revisionist view has important implications for policy formation. J. Comp. Econom., December 1999, 27(4), pp. 730–752. LICOS, Centre for Transition Economics, Katholieke Universiteit Leuven, Debériotstraat 34, 3000 Leuven, Belgium; and Department of Economics, Trinity College, Dublin, Dublin 2, Ireland, and LICOS, Centre for Transition, Katholieke Universiteit Leuven, Debériostraat 34, 3000 Leuven, Belgium.     

Nonparametric mean and variance estimation from truncated data

Abstract

This paper considers situations where a known number of the smallest values of a sample and a known number of the largest values have been truncated. The problem is to obtain an estimate of the population mean, an estimate of the standard deviation of this estimate of the mean, and an estimate of the population standard deviation. This paper derives a nonparametric estimate for each of these three cases. These estimates are approximately valid for most continuous statistical populations of practical interest when a small number of sample values are truncated and the sample size is not too small. The mean estimate consists of a linear function of the ordered values of the truncated sample, while each standard deviation estimate is the square root of a quadratic function of these observations.     

Large sample validity of the binomial distribution for lives with unequal mortality rates

Abstract

Let us consider a group of n lives which are observed during some time or age interval. Suppose that the following conditions are satisfied: 1. The probability of death within the interval considered has the same value q for each person of the group.

2. These lives represent statistically independent observations (with respect to mortality).

     

Consumer uncertainty,revisited

Uncertainty is an important concept within consumer behavior which to date is under‐theorized, especially in relation to important downstream variables such as information search intention and purchase intention, and can therefore lead to a loss of utility. The authors propose a new multidimensional conceptualization of consumer uncertainty and develop a theoretical model of uncertainty within two consumer behavior contexts, namely avoidance of sweatshop apparel and avoidance of food additives. Drawing on literature‐based insights as well as qualitative research and Expected Utility Theory, the authors develop hypotheses that offer insight into the potential antecedents (ambiguity and credibility) and consequences (search intention and purchase intention) of uncertainty. Using survey data, the authors test the hypotheses, finding strong support for many relationships hypothesized. Research and managerial implications are discussed. © 2011 Wiley Periodicals, Inc.     

Review and future directions of cross-cultural consumer services research

It is widely recognized that an increasing number of service firms are expanding into international markets. Many studies in the services marketing literature have focused on the identification and discussion of similarities and/or differences in consumer service experiences across nations and cultures. In this paper we review the relevant literature, address conceptual and methodological issues associated with extant cross-cultural consumer services research and suggest theories and approaches in regards to future research in the area. In addition, we introduce and discuss the concept of “cultural service personality” as a potential new theoretical perspective.