We test whether mandatory IFRS adoption affects firm-level ‘crash risk,' defined as the frequency of extreme negative … risk differently. We find that IFRS adoption decreases crash risk among non-financial firms, especially among firms in poor … contrast, IFRS adoption has no effect on crash risk for financial firms, on average, but decreases crash risk among firms less …

We examine the impact of mandatory IFRS adoption on firm-level “crash risk,” defined as the frequency of extreme …, crash risk decreases among industrial firms and increases among financial firms after the IFRS mandate. We also find that … crash risk decreases relatively more among industrial firms where IFRS results in more credible changes to local GAAP, and …