Analysts’ Information Environment and Voluntary Turn Away from IFRS: A Discussion

This discussion paper critically evaluates the current research on the impact of the regulatory switch from International Financial Reporting Standards (IFRS) to local Generally Accepted Accounting Principles (GAAP) on the analyst’s information environment. While the voluntary and mandatory adoption of IFRS has been examined extensively, research on the voluntary switch from IFRS back to local accounting standards is sparse. The study by Filip et al (2026) enhances our understanding by examining the effects of a firm’s reversion to local GAAP on the analyst’s information environment. It reveals that a voluntary switch leads to reduced analyst following, lower forecast accuracy, and diminished informativeness of analyst recommendations. Future research could further investigate the economic implications, regulatory influences, and methodological concerns associated with such voluntary switches.