| Summary: | 碩士 === 國立成功大學 === 會計學系碩博士班 === 100 === This study investigates the relationship between mandatory adoption of International Financial Reporting Standards(IFRS) and cost of capital of Chinese listed firms. We can evaluate and reference the changes of cost of capital of Taiwanese listed firms, after Taiwan mandatory adopting International Financial Reporting Standards, by investigating the changes of cost of capital of Chinese firms.
Most of prior researches focused on examining the relationship between manda-tory adoption of IFRS and cost of equity capital, but there’re a few of researches focus on the relationship between mandatory adoption of IFRS and cost of debt capital. In addition, most of prior literatures selected sample from listed firms of European Union, and investigated the economic consequences after mandatory adopting International Financial Reporting Standard. However there’re short of literatures looking into the economic consequences after mandatory adopting or converging the International Financial Reporting Standard in Asia capital market.
Using a sample of A-share listed firms of Shanghai and Shenzhen Stock Ex-change during the 2000-2009(2011) period. By comparing cost of capital of A-share listed firms during the 2000-2011 period, we observed the influence of Mandatory adoption IFRS on the change of cost of capital.
Empirical results indicate that (1) During the 2000-2009 period, because of con-verging with IFRS and the improvement of legal enforcement, A-share listed firms’ cost of equity is become lower as the time pass by. (2) During the 2000-2011 period, because of converging with IFRS and the improvement of legal enforcement, A-share listed firms’ cost of debt is become lower as the time pass by.
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