Xanthi Gkougkousi and Gerard Mertens, ‘Impact of mandatory IFRS adoption on the financial sector’, reported in Panel 5.10 in relation to the cost of equity capital, also look at the effects of mandatory IFRS adoption on European banks and insurers in relation to market liquidity. For their liquidity tests the sample is 1,778 firm-years (2% non-EU) for firms from 21 countries (two non-EU: Iceland and Norway). The period covered is 2002–2007. The control is a matched sample of US firms.