This paper examines the economic consequences of increased disclosure for German firms that switched from German GAAP to international reporting standards (IAS or US-GAAP). The study finds that firms adopting international reporting standards exhibit lower bid-ask spreads and higher trading volumes compared to firms using German GAAP. These differences are statistically and economically significant, controlling for firm characteristics and self-selection bias. However, the study does not find a reduction in share price volatility. The results suggest that switching to international reporting standards represents a substantial increase in a firm's commitment to disclosure, leading to lower information asymmetry and improved market efficiency. The study also finds that the effects of international reporting are consistent across IAS and US-GAAP adopters, indicating that the commitment to increased disclosure, rather than the specific standard, is the key factor. The findings contribute to the literature on international accounting standards and their impact on firm value and market efficiency. The study uses a combination of cross-sectional and event study analyses to document these effects, and the results are robust to various alternative explanations and model specifications.This paper examines the economic consequences of increased disclosure for German firms that switched from German GAAP to international reporting standards (IAS or US-GAAP). The study finds that firms adopting international reporting standards exhibit lower bid-ask spreads and higher trading volumes compared to firms using German GAAP. These differences are statistically and economically significant, controlling for firm characteristics and self-selection bias. However, the study does not find a reduction in share price volatility. The results suggest that switching to international reporting standards represents a substantial increase in a firm's commitment to disclosure, leading to lower information asymmetry and improved market efficiency. The study also finds that the effects of international reporting are consistent across IAS and US-GAAP adopters, indicating that the commitment to increased disclosure, rather than the specific standard, is the key factor. The findings contribute to the literature on international accounting standards and their impact on firm value and market efficiency. The study uses a combination of cross-sectional and event study analyses to document these effects, and the results are robust to various alternative explanations and model specifications.