IFRS adoption, cost of equity and firm value: evidence from Iraq

Purpose: The aim of this study is to examine the effect of adoption of IFRS on the Iraqi environment by studying the relationship between the adoption of international financial reporting standards and the cost of equity and the effect of the cost of equity on the value of the company. Theoretical framework: The international financial reporting standards (IFRS) are becoming special driver for the convergence of management and financial accounting and as the leading principles for over 120 countries in the world including those that voluntarily adopted the standards. Design/methodology/approach: The population of the study comprises 17 commercial companies listed in the Iraqi Stock Exchange for the periods of 2011-2013 and 2016-2018 with the exception of Islamic companies due to the difference in the privacy of the applicable regulations Findings: The results from the data collected through questionnaire survey showed the distinctive effects of financial and management accounting standards before and after the adoption of IFRS. Therefore, there are inconsistencies in the results of the value of the companies between the samples for the periods before and after the application of international financial reporting standards. Research, Practical & Social implications: The study examined the differences in the outcomes of the years when IFRS was yet to be adopted when the standards are adopted by considering the control variables such as age of the companies, size of the companies and leverages. Originality/value: the value of the study's originality by measuring adopting IFRS for the first time in Iraqi Banking for the periods of 2011-2013 and 2016-2018 with the exception of Islamic companies due to the difference in the privacy of the applicable regulations