The adoption of IAS/IFRS : the case of Greece

International Accounting Standards/ International Financing Reporting Standards (IAS/IFRS) were developed with a view to harmonizing accounting practices. Despite the fact that several papers have examined the effect of IAS/IFRS on equity and debt markets, only few have focused on Greece. The present thesis uses both polled and panel data (fixed and random effects techniques) analysis techniques. Using data from 181 Greek companies listed on the Athens Stock Exchange, the results show that firstly, IAS/IFRS adoption and earnings management are negatively related suggesting that Greek companies tend to use fewer discretionary accruals after IAS/IFRS adoption as a way of earnings management. Secondly, the adoption of IAS/IFRS lowered the cost of debt of Greek companies implying that the increased quality as well as quantity of accounting disclosures reduces the uncertainty regarding a company‟s default risk and the mis-coordination between companies and suppliers, which in turn enables companies to borrow at better terms. Finally, the results indicate that IAS/IFRS adoption increased the gearing level of Greek companies, implying that the decreased uncertainty and risk of a company through IAS/IFRS adoption, enhances the company‟s borrowing bargain power and subsequently its gearing level

Chasing noise in the stock market: an inquiry into the dynamics of investor sentiment and asset pricing

This study explores the inclusion of sentiment measures as a risk factor in asset pricing. Using UK market data for the period January 1993 to December 2020, we create a new sentiment variable, and construct both raw and clean sentiment indices from a principal component analysis of a variety of literature-acknowledged sentiment proxies. Essentially, the model estimations are categorized into two: first, the study documents the performance of the traditional pricing models on portfolios formed on different characteristics. Second, the study augments the first category by iterating sentiment variables into the model specification. The findings reveal that sentiment-augmented asset pricing models outperform the traditional models in explaining the excess returns of the portfolios. Furthermore, using Hansen & Jagannathan (1997) non-parametric model performance technique, we observe that the sentiment-induced models produce a small distance error compared to the traditional models, thus validating the use of sentiment measures in our pricing mechanism. It is therefore opined that extant asset pricing models may not be sufficient to explain market or pricing anomalies. Investors’ sentiment is an important systematic risk factor that possesses useful information, and by implication, market analysts and stakeholders must take serious cognizance of its propensities when forecasting risk-adjusted returns

VfM audit and the UK public sector:A critical review of the VfM reports

The study investigates why the value for money (VfM) audit, in its current form, fails to capture the actual state of affairs in the UK public organizations. To address this, we utilize a VfM assessment matrix and key public sector performance indicators to critically evaluate the VfM reports published by two main public bodies in the United Kingdom, that is, the National Health Services and the police authorities, alongside the reports published by the National Audit Office and Her Majesty's Inspectorate of Constabulary and Fire & Rescue Services. Our results reveal that the VfM reports do not clearly show how the 3Es (i.e., economy, efficiency, and effectiveness) associated with the VfM assessment are attained. There are also limited suggestions on the public bodies’ service output or social outcomes and how performance targets are fulfilled. We deduce that the VfM audit's failure to capture these elements significantly curtails the benefits of the VfM exercise to public bodies. We argue for complementing the current VfM assessment with a review of the performance of these bodies based on the services they offer as well as their strategic objectives

Dynamic connectedness between investors’ sentiment and asset prices : A comparison between major markets in Europe and USA

Peer reviewedPublisher PD

Reports on payments to governments: a report on early developments and experiences.

We are concerned in this report to review and discuss aspects of the Reports submitted in line with the Payments to Governments Regulations. We consider the process of transposition of this Accounting Law into UK law and the early implementation or operationalization of this law in the UK. Recommendations drawn from the study will be useful for Publish What You Pay (PWYP) and other interested stakeholders in communications with government, regulators and standard setters and in general campaign activity. This is the commissioned report for Publish What You Pay