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http://dx.doi.org/10.14400/JDC.2018.16.12.163

The Effect of PP&E Revaluation under K-IFRS on Information Asymmetry  

Shin, Chan-Hyu (Pusan National University)
Publication Information
Journal of Digital Convergence / v.16, no.12, 2018 , pp. 163-173 More about this Journal
Abstract
This study examined the difference between the information asymmetry in pre- and post K-IFRS adoption used each samples. Efficient market assumption suggests that capital markets already have recognized real value of PP&E and applied those values for estimating the item, in which case PP&E revaluation is not additional information in the capital market but simply an activity to makes costs. This study examined whether the information asymmetry had reduced significantly after adopting K-IFRS or not, verified each period samples those are pre- and post-adopting the asset revaluation since it could have been adopted in advance from 2008. As study results, I confirmed PP&E revaluation affected to reduce the information asymmetry in pre- adopting K-IFRS, but not in post- adopting K-IFRS. These results could be one of proofs which are supported that capital market have been judging PP&E revaluation as the window dressing.
Keywords
Asset Revaluation; Information Asymmetry; K-IFRS; PP&E; Window Dressing;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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