Barth, Landsman, Lang and Williams (2006) find that an international sample of firms that voluntarily
adopted IFRS up to 2003 exhibits lower levels of earnings management and more timely loss recognition than a
matched sample of firms using local GAAP. As an extension of these findings, Daske, Hail, Leuz and Verdi
(2007) focus on the heterogeneity in the consequences of voluntary IFRS adoption and find that on average
capital markets respond modestly to voluntary IFRS reporting. However, consistent with their predictions, they
find that "serious" adopters experience significantly stronger effects on their cost of capital and market liquidity
than “label” adopters, suggesting that for some firms the quality of financial reporting improves in association