Impact of IFRS 16 on transportation and logistics companies – An empirical analysis of the leasing standard effect on European logistics companies

Abstract

This thesis analyzes the possible impact of the newly introduced leasing standard IFRS 16 for a sample of 23 listed companies in Europe's transport industry. Previous research tended to look at companies listed on stock exchanges in various countries before the new standard was issued. The adoption of IFRS 16 will have a significant effect on key financial figures. In fact, lease capitalization led to a significant increase in the debt to assets ratio. Profitability metrics such as ROA and ROE are less clear when capitalizing leases. There will be a significant impact on the balance sheet through changes in debt levels and financial performance metrics, which affect market reactions. Sectors with a higher proportion of leasing and "more expensive" leasing, such as Courier, will notice a greater effect on abnormal returns. Significant abnormal returns around the release dates of quarterly reports indicate that investors react strongly to new financial information.