IFRS Impact on Swedish Companies

Abstract: This thesis aims to investigate whether the implementation of IFRS has affected the accounting quality in Swedish companies. The results of this study is analyzed through the theory of information asymmetry and previous empirical studies. The study employs a quantitative method using linear regression analysis on market value of equity, book value of equity and earnings pre- and post-IFRS to investigate what effect, if any, IFRS implementation has had on the value relevance of accounting information in Swedish companies. The study also utilizes the Fisher Z-test to compare the correlation between the variables before and after IFRS implementation. The Ohlson model is used to measure the value relevance of accounting data. The study’s findings demonstrate that IFRS implementation has not had a significant effect on the value relevance of book value of equity but it has significantly increased the value relevance of earnings in Swedish companies. The study contributes to highlighting how IFRS implementation has impacted the value relevance of the accounting information book value of equity and earnings. It also provides insights into potential explanations for the observed differences in impact.