MEASURING THE EFFECTS OF IFRS ADOPTION IN ROMANIA ON THE
VALUE RELEVANCE OF ACCOUNTING DATA

Irina-Doina Păşcan, „Petru Maior” University of Tg. Mureş, Romania

ABSTRACT: In Romania, the entities listed on a regulated market must prepare their individual
financial statements in accordance with the International Financial Reporting Standards (IFRS)
starting with the financial year 2012. Since the IFRSs are considered high-quality accounting
standards, IFRS adoption should lead to improvement of the quality of financial reporting. In this
paper, we analyze the effect of mandatory IFRS introduction in Romania on accounting quality.
Our main objective is to empirically test whether IFRS adoption in Romania increases the quality
of accounting data reported by Romanian entities listed on Bucharest Stock Exchange. The results
of our analysis conducted over the years 2010-2013 suggest that IFRS adoption in Romania
generates an enhancement of accounting quality, registered especially in the case of information
about the book value of equity.

Key words: IFRS, accounting quality, value relevance, Romanian listed entities, Bucharest Stock Exchange

JEL Codes: M 41