The information content of annual earnings announcements and mandatory adoption of IFRS

► We examine the information content of earnings announcements following mandatory IFRS adoption. ► Findings suggest information content increased in 16 countries that mandated adoption of IFRS relative to 11 that maintained domestic accounting standards. ► The effect of mandatory IFRS adoption depends on the strength of legal enforcement in the adopting country. ► We find evidence of three mechanisms through which IFRS adoption increases information content: reducing reporting lag, increasing analyst following, and increasing foreign investment.