Published Online:January 2026
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP130126
DOI:10.71329/IUPJARAP/2026.25.1.274-300
Author Name:Devarajappa S and Rajath B S
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:274-300
The study examines how the convergence of Indian Accounting Standards (Ind-AS) with International Financial Reporting Standards (IFRS) has affected the performance of selected Bombay Stock Exchange (BSE)-listed companies’ share prices. The study is restricted to selected BSE-listed companies of Karnataka. Total six companies were selected, for shortterm performance of stock prices. Event study methodology was employed, and daily abnormal returns (AR) and cumulative AR (CAR) were calculated using the marketadjusted model over two 41-day windows (±20 days around key events: MCA notification on February 16, 2015, and mandatory adoption from April 1, 2016), with BSE Sensex as benchmark and parameters from a 180-day estimation window. In order to test the hypothesis t-test was used. According to the findings of the study, the adoption converged accounting standards has had a significant impact on several stocks. The examination of the share price performance reveals that there is no regular pattern of AR for these companies; in certain instances, the market responded both favorably and unfavorably during event window one, and in all cases, the market responded favorably during event window two. Therefore, it can be said that the adoption of IFRS proved positive for increasing the wealth of the shareholders of the selected companies in the short term. The study does not rule out the impact of other factors such as political or macroeconomic in this regard.
The present study examines how the Indian stock market responded to India’s implementation of International Financial Reporting Standards (IFRS) in 2016. Prior to 2016, domestic accounting standards were used by all Indian companies.