In Model 1 of Table 3, we estimate Eq. (1) and include a separate set of quarter-year fixed
effects for IFRS and non-IFRS countries. This structure allows for different trends in liquidity as
well as arbitrary shocks to liquidity across IFRS and non-IFRS countries. The IFRS coefficient
is insignificant in the bid-ask spread and liquidity factor regressions, suggesting that across all
countries IFRS adoption has little systematic impact on market liquidity