Kim and Shi (2012) investigate the impact of voluntary IFRS adoption on the information intermediation activities of individual analysts. They aim to investigate if IFRS voluntary adoption affects financial analysts' decision to follow and, in turn, if IFRS adoption improves information precision. Kim and Shi point out that many studies have examined the economic consequences of a firm's IFRS adoption and these studies provide evidence that corporate disclosures under IFRS are of higher quality than those under local accounting standards in many financial reporting regimes. Since past studies have not examined the effects of voluntary IFRS adoption on the quality of decisions made by financial analysts, Kim and Shi are motivated to investigate these effects.
My discussion proceeds as follows. Section II provides a brief summary of the research questions and the findings. Section III summarizes the empirical analyses. Section IV discusses the implications and contributions. Section V. concludes my...
