“Economic Consequences” Mid-Term Review February 2009, Valencia

1. “Economic Consequences”Mid-Term ReviewFebruary 2009, Valencia Ulf Brüggemann Theodosia Konstantinidi Urška Kosi Laura Marquez Ramos

2. Economic Consequences Regulation (EC) No 1606/2002 - Article 1: “This Regulation has as its objective the adoption and use of international accounting standards … to ensure a high degree of transparency and comparability of financial statements and hence an efficient functioning of the Community capital market and of the Internal Market.” • Capital market effects vs. real economic consequences • Intended vs. unintended economic consequences Caveats: • Compliance and enforcement • Market solution?

3. Background Ulf Brüggemann Since 04/2007 INTACCT ESR, Lancaster University Since 10/2004 PhD Studies, University of Cologne 07/2003 Diploma in Business Administration, University of Münster PhD Thesis: “Economic Consequences of mandatory IFRS adoption in Europe” PhD supervisor: Carsten Homburg (University of Cologne) INTACCT supervisors: Peter F. Pope, Steve Young (Lancaster University), Holger Daske (University of Mannheim, Frankfurt University)

4. Experiences Ulf Brüggemann Lancaster: • PhD and Research Seminars • Stimulating research environment INTACCT: • Workshops / Colloquia • International conferences • Great community  current / future collaboration

5. Output Ulf Brüggemann Research: • “Mandatory IFRS adoption, information and market liquidity around earnings announcements” (with Paulo Alves and Peter F. Pope) • “How do foreign retail investors react to global IFRS adoption?” (with Holger Daske, Carsten Homburg and Peter F. Pope) Other Activities: • Book review (TIJA) • Web-based literature database • ESR/ER group projects

6. Future Plans Ulf Brüggemann Research: • Finish current projects • Review of IFRS literature (with Jörg-Markus Hitz and Thorsten Sellhorn) • Project on unintended consequences of IFRS adoption • Project on market reactions to earnings announcements After INTACCT (03/2010)  job market

7. Background Theodosia Konstantinidi Since 10/2007 INTACCT ESR, University of Cyprus Since 10/2007 PhD Studies, Lancaster University 2006-2007 MSc in Accounting and Financial Management, Lancaster University PhD Thesis: ‘The accrual anomaly under different accounting standards: Risk or mispricing” PhD supervisor: Peter F. Pope (Lancaster University) INTACCT supervisors: Andreas Charitou (University of Cyprus) Irene Karamanou (University of Cyprus) Peter F. Pope (Lancaster University)

8. Experiences Theodosia Konstantinidi • Studying and living in Cyprus • INTACCT and PhD Seminars (Lancaster & international) • Travelling and international exposure • Knowledge sharing within network

9. Output Theodosia Konstantinidi Research: “The accrual anomaly under different GAAP regimes” “Accrual and cash flow multiple-based valuation. Implications for the accruals anomaly” Other Activities: Web-based literature database

10. Future Plans Theodosia Konstantinidi Research: Continuous education Complete current and start new projects Collaboration with other ESR’s (with Zoltan) After INTACCT (10/2010)  position at a university

11. Background Urška Kosi 04/2004 MSc in Economics, University of Ljubljana Since 09/2007 INTACCT ESR, University of Macedonia Since 10/2007 PhD Student, Lancaster University PhD Thesis: “Contemporary Issues in Financial Reporting” PhD supervisor: Peter F. Pope (Lancaster University) INTACCT supervisors: Annita Florou (University of Macedonia), Peter F. Pope (Lancaster University), Aljoša Valentinčič (University of Ljubljana)

12. Experiences • Urška Kosi • Interaction with international accounting community • Research seminars/workshops (Lancaster & international) • Collaboration within the network and research discussions

13. Output Urška Kosi Research: “Asset Write-Offs in the Absence of Agency Problems” (with Neil Garrod, Aljoša Valentinčič) “Institutional Environment in EU Countries” “IFRS and Debt Contracting?” (with Annita Florou) Other Activities: ESR/ER group projects Coordination of reporting activities Conference and seminar attendance

14. Future Plans Urška Kosi Research: Finish current projects IFRS reconciliations (with Katja Kaker) IFRS consequences in financial sector • After INTACCT (07/2010)  position at a university

15. Background Laura Márquez-Ramos • Business Administration and Management, Universitat Jaume I, Castellón (1998-2002) • Background: International Economics • Ph D. International Economics (2007): “New determinants of bilateral trade: An empirical analysis for developed and developing countries” • Related publications: • “Technological Innovation, Trade and Development”, in Information and Communication Technologies for Economic and Regional Developments, ed. Dr. M. Hakikur Rahman. Idea group inc, 2007 • “The Role of Distance in Gravity Regressions: Is There Really a Missing Globalisation Puzzle?”, Topics in Economic Analysis & Policy, 7 (1), 2007 • “The Effect of Trade Facilitation on Sectoral Trade”, the B.E. Journal of Economic Analysis & Policy,8 (1) (Topics), Article 42, 2008

16. Experiences Laura Márquez-Ramos Varna: • Learning Български and a culture • Learning accounting • Interaction with international accounting community • International research seminars • Living experiences in a transition country

17. Output Laura Márquez-Ramos (May 2007- February 2008) Research: “The Effect of IFRS Adoption on Trade and Foreign Direct Investments” Workshops, conferences and schools: IV Accounting Research Symposium, Amsterdam Ninth Trento Summer School, Intensive Course in Financial Instability and Crises, Trento VI Workshop de investigación empírica en contabilidad financiera, Madrid 18th International conference of international trade and finance association (IFTA), Lisbon VIII doctoral meetings in international trade and international finance, Barcelona

18. Future Plans Laura Márquez-Ramos Academic profile: Working as a lecturer at University Jaume I (March 2008) Teaching 2008-2009: Economic integration in a Master’s degree, World Economy, Economics, and Quantitative Methodology for Business Research: IFRS effect at a macroeconomic level Experimental interest, voluntariety vs. mandatoriety