Does Transition to IFRS 16 Affect Companies Financial Performance: The Case of Baltic Listed Companies-Reference-Cited by-同舟云学术

Does Transition to IFRS 16 Affect Companies Financial Performance: The Case of Baltic Listed Companies

Published:2023-06-01 Issue:1 Volume:89 Page:67-86
ISSN:2335-8750
Container-title:Management of Organizations: Systematic Research
language:en
Short-container-title:

Author:

Legenzova Renata¹,Žilaitytė Liveta²

Affiliation:

1. 1 PhD, professor at the Faculty of Economics and Management , Vytautas Magnus University , Lithuania .

2. 2 Financial project controller at Nokia , Lithuania .

Abstract

Abstract The paper assesses the effect of transitioning to IFRS 16 on Baltic listed companies’ financial performance. The results revealed that 74.63% of sample companies were affected with an average 8.68% increase in total assets and 13.03% increase in total liabilities. Return on assets and assets turnover ratios of the affected companies decreased by an average of 8.33%, the quick ratio and current ratio decreased by 7.84%, while the debt-to-equity ratio increased by 28.63%. The sectors most heavily impacted by transitioning to IFRS 16 were communication services and basic materials sectors.

Publisher

Walter de Gruyter GmbH

Subject

Pharmacology (medical),Complementary and alternative medicine,Pharmaceutical Science

Link

https://www.sciendo.com/pdf/10.2478/mosr-2023-0005

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