Other studies have investigated the mandatory adoption of IFRS in individual countries, with the
important advantage of reducing the problem of omitting variables. Callao et al. (2007), for instance,
focus on the adoption of IFRS in Spain and find that the value-relevance of financial reporting does
not improve, whereas comparability even worsens for firms adopting IFRS. Horton and Serafeim
(2010) examine the UK stock market reporting a decrease in forecast errors for firms mandatorily
adopting IFRS. Christensen et al. (2007) investigate a similar setting, but focus on the effect of
adopting IFRS on debt contracting, documenting significant market reactions to IFRS reconciliation
announcements. Gjerde et al. (2008) focus on IFRS restatements for firms listed on the Oslo Stock
Exchange and find mixed results according to the research methodology employed, whereas Iatridis
and Rouvolis (2010) examine the Greek context documenting higher value-relevance for IFRS-based
financial statements.