The Effect of Financial Reporting Comparability on Diversion of Opinion among Investors—the case of Korea

Abstract

This thesis studies the effect of financial reporting comparability on diversion of opinion among investors. Although financial reporting comparability has become a hot issue after adoption of IFRS, the impact of financial reporting comparability on diversion of opinion has rarely been studied. This thesis utilizing the measure of comparability developed by De. Franco, et al.(2011) based on the difference between a firm's expected earnings and other firm's expected earnings given the same economic events. Results of empirical analysis show that financial reporting comparability is negatively related with diversion of opinion among investors.