IDEAS home Printed from https://ideas.repec.org/a/nms/untern/10.5771-0042-059x-2015-2-222.html
   My bibliography  Save this article

Opting for Swissness in Financial Reporting – Some Preliminary Explanations for the Shift of Accounting Standards among Large Corporations in Switzerland 2007-2013

Author

Listed:
  • Missonier-Piera, Franck

Abstract

During the last decades, several Swiss listed firms have decided to switch from internationally recognized accounting standards to Swiss GAAP FER. Some preliminary explanations are provided in this paper. Based on a match-pair sample of 62 firms over the period 2007-2013, the univariate signed tests exhibit that firms switching to their local GAAP are on average smaller, generate less profitability, have less investment opportunities and are less exposed internationally than IFRS firms. Besides, further analysis shows that the perceived quality of the firms’ financial statements that switch to Swiss standards is not impacted significantly (when measured by analyst forecast errors). Lastly, in the year of the accounting change, audit fees decreased for changing firms. These results may suggest an economically rational choice made by switching firms.

Suggested Citation

  • Missonier-Piera, Franck, 2015. "Opting for Swissness in Financial Reporting – Some Preliminary Explanations for the Shift of Accounting Standards among Large Corporations in Switzerland 2007-2013," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 69(2), pages 222-233.
  • Handle: RePEc:nms:untern:10.5771/0042-059x-2015-2-222
    DOI: 10.5771/0042-059X-2015-2-222
    as

    Download full text from publisher

    File URL: https://www.nomos-elibrary.de/10.5771/0042-059X-2015-2-222
    Download Restriction: no

    File URL: https://libkey.io/10.5771/0042-059X-2015-2-222?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Galai, Dan & Masulis, Ronald W., 1976. "The option pricing model and the risk factor of stock," Journal of Financial Economics, Elsevier, vol. 3(1-2), pages 53-81.
    2. Leuz, C & Verrecchia, RE, 2000. "The economic consequences of increased disclosure," Journal of Accounting Research, Wiley Blackwell, vol. 38, pages 91-124.
    3. Bowen, Robert M. & DuCharme, Larry & Shores, D., 1995. "Stakeholders' implicit claims and accounting method choice," Journal of Accounting and Economics, Elsevier, vol. 20(3), pages 255-295, December.
    4. Myers, Stewart C., 1977. "Determinants of corporate borrowing," Journal of Financial Economics, Elsevier, vol. 5(2), pages 147-175, November.
    5. Angels Fitó & Francesc Gómez & Soledad Moya, 2012. "Choices in IFRS Adoption in Spain: Determinants and Consequences," Accounting in Europe, Taylor & Francis Journals, vol. 9(1), pages 61-83, June.
    6. Rick Cuijpers & Willem Buijink, 2005. "Voluntary adoption of non-local GAAP in the European Union: A study of determinants and consequences," European Accounting Review, Taylor & Francis Journals, vol. 14(3), pages 487-524.
    7. Elizabeth Stanny & Kirsten Ely, 2008. "Corporate environmental disclosures about the effects of climate change," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(6), pages 338-348, November.
    8. Bernard Raffournier, 1995. "The determinants of voluntary financial disclosure by Swiss listed companies," European Accounting Review, Taylor & Francis Journals, vol. 4(2), pages 261-280.
    9. Murphy, Ann B., 1999. "Firm Characteristics of Swiss Companies that Utilize International Accounting Standards," The International Journal of Accounting, Elsevier, vol. 34(1), pages 121-131.
    10. Florence Depoers, 2000. "A cost benefit study of voluntary disclosure: some empirical evidence from French listed companies," European Accounting Review, Taylor & Francis Journals, vol. 9(2), pages 245-263.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Corinne Bessieux-Ollier & Élisabeth Walliser, 2012. "Why firms listed on an unregulated financial market comply voluntarily with IFRS: An empirical analysis with French data," Post-Print hal-00690935, HAL.
    2. Andy Lardon & Marc Deloof, 2014. "Financial disclosure by SMEs listed on a semi-regulated market: evidence from the Euronext Free Market," Small Business Economics, Springer, vol. 42(2), pages 361-385, February.
    3. Oxelheim, Lars, 2019. "Optimal vs satisfactory transparency: The impact of global macroeconomic fluctuations on corporate competitiveness," International Business Review, Elsevier, vol. 28(1), pages 190-206.
    4. Paul André & Peter Walton & Dan Yang, 2012. "Voluntary adoption of IFRS: A study of determinants for UK unlisted firms," Post-Print hal-00935013, HAL.
    5. Costanza Fabio, 2018. "Voluntary application of IFRS by unlisted companies: evidence from the Italian context," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(2), pages 73-86, May.
    6. Missonier-Piera, Franck, 2007. "Motives for fixed-asset revaluation: An empirical analysis with Swiss data," The International Journal of Accounting, Elsevier, vol. 42(2), pages 186-205.
    7. Stolowy, Hervé & Jeanjean, Thomas & Erkens, Michael, 2011. "The economic consequences of increasing the international visibility of financial reports," HEC Research Papers Series 957, HEC Paris.
    8. Lopes, Patricia Teixeira & Rodrigues, Lucia Lima, 2007. "Accounting for financial instruments: An analysis of the determinants of disclosure in the Portuguese stock exchange," The International Journal of Accounting, Elsevier, vol. 42(1), pages 25-56.
    9. Core, John E. & Schrand, Catherine M., 1999. "The effect of accounting-based debt covenants on equity valuation1," Journal of Accounting and Economics, Elsevier, vol. 27(1), pages 1-34, February.
    10. Bruno Fabre, 2010. "Le rôle de la diffusion d'informations relatives aux actifs immatériels auprès des parties prenantes : synthèse et illustrations," Post-Print halshs-00525811, HAL.
    11. Gaetano Matonti & Giuseppe Iuliano, 2012. "Voluntary Adoption of Ifrs by Italian Private Firms: A Study Of The Determinants," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 2(2), pages 43-70, December.
    12. Jonas Mackevičius & Jiří Strouhal & Svetlana Zverovich, 2008. "Comparative Analysis of the National Accounting Standards of the Czech Republic and Lithuania," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2008(4), pages 22-44.
    13. Devalle, Alain & Rizzato, Fabio & Busso, Donatella, 2016. "Disclosure indexes and compliance with mandatory disclosure—The case of intangible assets in the Italian market," Advances in accounting, Elsevier, vol. 35(C), pages 8-25.
    14. Jirí Strouhal & Petra Ždárská, 2008. "Comparison of the requirements for reporting of listed and non-listed companies: some issues from the Czech Republic," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 55, pages 143-153, November.
    15. Riccardo, Macchioni & Giuseppe, Sannino & Gianluca, Ginesti & Carlo, Drago, 2013. "Firms’ disclosure compliance with IASB’s Management Commentary framework:an empirical investigation," MPRA Paper 59321, University Library of Munich, Germany.
    16. Marc de Bourmont, 2010. "Les Etudes Portant Sur Les Determinants D'Une Publication Volontaire D'Informations Au Sein Des Rapports Annuels : L'Interet De La Realisation D'Une Analyse Multi-Echantillons / Multi-Periodes," Post-Print hal-00481107, HAL.
    17. Thomas Jeanjean & Hervé Stolowy & Michael Erkens, 2012. "Economic consequences of adopting English for annual reports," Post-Print hal-00690931, HAL.
    18. Thomas Jeanjean & Hervé Stolowy & Michael Erkens, 2010. "Really “Lost in translation”? The economic consequences of issuing an annual report in English," Post-Print hal-00479511, HAL.
    19. Bikki Jaggi & Alessandra Allini & Riccardo Macchioni & Annamaria Zampella, 2018. "Do investors find carbon information useful? Evidence from Italian firms," Review of Quantitative Finance and Accounting, Springer, vol. 50(4), pages 1031-1056, May.
    20. Viral V. Acharya & Hanh T. Le & Hyun Song Shin, 2017. "Bank Capital and Dividend Externalities," The Review of Financial Studies, Society for Financial Studies, vol. 30(3), pages 988-1018.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nms:untern:10.5771/0042-059x-2015-2-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nomos Verlagsgesellschaft mbH & Co. KG (email available below). General contact details of provider: http://www.nomos.de/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.