The Impact of International Financial Reporting Standards on Information Asymmetry

(Pages 2655-2664)

Tetyana Chala1,*, Iryna Hrabynska2, Olеna Ptashchеnko3, Oksana Perchuk4, Oksana Posadnieva5, Olga Bioko6
1Department of Statistics, Accounting and Auditing / Department of Management and Administration, V.N. Karazіn Kharkiv National University, Kharkiv 61000, Ukraine.
2Department of Analytical and International Economics, Ivan Franko National University of Lviv, Lviv 79000, Ukraine.
3Department of Entrepreneurship and Trade, West Ukrainian National University, Ternopil 46000, Ukraine.
4Department of Accounting, Taxation and Business Management, Hryhorii Skovoroda University in Pereiaslav, Pereyaslav 08400, Ukraine.
5Department of Finance, Accounting and Taxation, Kherson National Technical University, Kherson 73008, Ukraine.
6Department of Accounting, Analysis and Audit, Odesa National Economic University, Odesa 65000, Ukraine.


The problem of business transparency for various groups of stakeholders has become more acute in the current context of growing economic uncertainty in the world. The IFRS implementation is one of the tools for improving the availability and quality of information, which is the special focus. The aim of the article is to determine the impact of the implementation and application of International Financial Reporting Standards (IFRS) on business transparency and the quality of information available to stakeholders for making their decisions. The study involved the synthesis method to identify trends in the development of the sample companies in the context of IFRS implementation, as well as economic and statistical methods to process the financial reporting data. The correlation and regression formed the methodological background of the analysis to determine the separate and joint impact of factors on the information asymmetry level, which is represented by the Cost of Capital (COC) of the selected companies within the scope of this study. Correlation and regression of the studied companies showed a decreased Cost of Capital of the companies after the IFRS implementation compared to the situation before IFRS implementation, which indicates reduced information asymmetry. The analysis of the data of the selected companies revealed that there is an inverse relationship between the information asymmetry level and the Debt to Equity ratio of the company, as well as between the information asymmetry level and the Earnings per Share of the company. Besides, the study of the impact of digitalization and the COVID-19 pandemic on the information asymmetry level is of interest to the researchers.


Information asymmetry, International financial reporting standards, Transparency, Cost of Capital, Debt to Equity ratio.

JEL Classification:

D24, L15

How to Cite:

Tetyana Chala, Iryna Hrabynska, Olеna Ptashchеnko, Oksana Perchuk, Oksana Posadnieva, Olga Bioko. The Impact of International Financial Reporting Standards on Information Asymmetry. [ref]: vol.21.2023. available at:

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