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When global accounting standards meet the local context—Insights from an emerging economy

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  • Albu, Cătălin Nicolae
  • Albu, Nadia
  • Alexander, David

Abstract

We investigate the translation and application of global accounting standards in a local context, with Romania as our country case study. Our theoretical framework is derived from institutional theory. We develop this by complementing isomorphism (DiMaggio and Powell, 1983) with an emphasis on the behavior of actors and with the different strategic responses that organizations enact as a result of the institutional pressures toward conformity, following Oliver (1991). We contend that local actors play a more important role in triggering organizational responses than is implied by Oliver's (1991) framework in the application of International Financial Reporting Standards (IFRS). This is because organizational responses to these global standards are conditioned by the interplay between actors, who are searching for legitimacy and the attainment of their own (mutually conflicting) interests.

Suggested Citation

  • Albu, Cătălin Nicolae & Albu, Nadia & Alexander, David, 2014. "When global accounting standards meet the local context—Insights from an emerging economy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(6), pages 489-510.
    • Handle: RePEc:eee:crpeac:v:25:y:2014:i:6:p:489-510
    DOI: 10.1016/j.cpa.2013.03.005
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