Harmonisation of Accounting Standards: how useful is it for multi-listed companies?
2019-02-18T04:08:02Z (GMT) by
This thesis comprises two research studies investigating two of the proposed benefits of the International Harmonisation Program (IHP) undertaken by the Australian Accounting Standards Board (MSB) from 1996 to 2002. The IHP aimed to harmonise Australian accounting standards with International Accounting Standards' (IASs). The motivation for these studies is the lack of empirical evidence on the impact of harmonisation on multi-listed companies and the impact generally of the IHP. Besides investors, multi-listed companies are expected to benefit most from harmonisation. Harmonisation of accounting standards is expected to reduce the cost of comparing alternative sets of financial information for investors leading to lower cost of capital for multi-listed companies (Howieson (1998)). It is also expected to eliminate or reduce the need for additional reporting requirements and, therefore, reduce the financial reporting and operating costs of multi-listed companies (Brown and Clinch (1998)). Prior literature has suggested that International Accounting Standards are closer to US GMP than any other GMP. This implies that harmonisation of Australian accounting standards with JASs under the !HP has brought Australian GMP closer to US GMP. This thesis investigated the benefits of IHP to Australian companies listed on US stock exchanges [...]