IFRS Framework/ EU Directives and their Effect on Investment Decisions: Evidence from the Greek Food & Drink Sector on the Athens Stock Exchange

Abstract

IFRS framework and EU directives affect capital markets. In this paper, the impact of the development of IFRS is investigated, considering the current situation in the years of the global financial crisis and recognizing the importance of small and medium-sized entities. It has recently been known that specific standards for SMEs have been published; IFRS for SMEs in 2009. In particular, it is asked if this will be following the small and medium-sized entities in Greece. Indeed, in Greece, there is an effort to issue the New Greek Standards close to IFRS for all kind of companies regardless of their size. The paper uses facts and figures about Food and Drink Sector, focusing on listed companies in ASE. The objective is to explore whether, how and why somebody should invest in this sector in ASE. The paper examines these investment opportunities in relation to the IFRS adoption and EU directives in Greece.