1.10. Adoption and implementation of IFRS in Chile: Impact on financial ratio and the market reaction.

ABARCA, ALLYSON, DIAZ, FERNANDO, ESPINOSA, CHRISTIAN, MAQUIEIRA, CARLOS

SUMMARY
In 2009 Chile became the first South American country to adopt the IFRS. This study analyzes a sample of 43 public firms that adopted IFRS in 2009. The first objective of this study is to analyze the impact of adopting IFRS on some financial ratios. The results show statistically significant increases in each one of the financial ratios. The second objective is to analyze the market reaction associated to the announcement of the adoption and implementation of IFRS using event studies’ methodology. The results show that there are no statistically significant abnormal returns associated to both announcements.

CJEL: C30, C33, G15 and G32
Key words: IFRS, South America, Financial ratios, Event study.