Aspects Concerning the Linkage between IFRSs Adoption and the Informational Efficiency of Financial Markets

Author:Lecturer Ştefana DIMA (CRISTEA), Ph. D., Univ. Prof. Bogdan DIMA, Ph. D., Otilia ŞĂRĂMĂT, Ph. D. Student

JEL:G14

DOI:

Keywords:financial information, informational efficiency, financial assets, EMH, AMH

Abstract:
The purpose of the present paper is to analyze several aspects connected to the idea that IFRSs provide relevant financial information which contribute to the increase in informational efficiency of the financial markets. The working hypothesis is that the changes in financial information – as a consequence of IFRSs issuance and adoption – influence market efficiency. The authors’ approach takes into consideration the current international harmonization process, which is of critical importance to the nature and quality of the financial information transmitted by the issuers to the market. The main outcome of such an analysis resides in the idea that informational efficiency is a reflection of the overall functional efficiency of the financial markets and extensively to the entire economic system. The role of the international financial reporting standards becomes in this context not only to ensure the market with relevant financial information but also to sustain economic growth. \r\n\r\n\r\n\r\n

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