Why firms listed on an unregulated financial market comply voluntarily with IFRS: An empirical analysis with French data
AbstractThis study examines the determinants of voluntary adoption of IFRS by French companies listed on an unregulated financial market. These firms can choose IFRS or the French accounting standards to present their accounts. We analyze the annual reports of 85 French firms listed in 2010 on an unregulated financial market: Alternext. The results reveal that size is an important determinant of the voluntary adoption of IFRS, showing a positive correlation. The percentage of assets in place is also a significant factor: firms with a higher percentage are protected by heavy barriers to entry and they thus voluntarily adopt IFRS. Industry sector shows a negative and significant relationship, as it explains the decision not to adopt IFRS. The following variables are not significant: leverage, internationality, profitability, type of auditor, and ownership concentration. Our findings suggest that without the intervention of regulatory bodies, companies listed on an unregulated financial market will continue to opt for local accounting standards, thereby maintaining the status quo.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00690935.
Date of creation: 2012
Date of revision:
Publication status: Published - Presented, Comptabilités et innovation, 2012, Grenoble, France
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00690935
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Voluntary adoption; determinants; accounting choices; IFRS; France; unregulated financial market;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Florence Depoers, 2000. "A cost benefit study of voluntary disclosure: some empirical evidence from French listed companies," European Accounting Review, Taylor and Francis Journals, vol. 9(2), pages 245-263.
- Stephen B Salter & Frederick Niswander, 1995. "Cultural Influence on the Development of Accounting Systems Internationally: A Test of Gray's  Theory," Journal of International Business Studies, Palgrave Macmillan, vol. 26(2), pages 379-397, June.
- Diamond, Douglas W & Verrecchia, Robert E, 1991. " Disclosure, Liquidity, and the Cost of Capital," Journal of Finance, American Finance Association, vol. 46(4), pages 1325-59, September.
- Tendeloo, Brenda van & Vanstraelen, Ann, 2005. "Earnings Management under German GAAP versus IFRS," Open Access publications from Maastricht University urn:nbn:nl:ui:27-18432, Maastricht University.
- Wallace, R. S. Olusegun & Naser, Kamal, 1995. "Firm-specific determinants of the comprehensiveness of mandatory disclosure in the corporate annual reports of firms listed on the stock exchange of Hong Kong," Journal of Accounting and Public Policy, Elsevier, vol. 14(4), pages 311-368.
- Chau, Gerald K. & Gray, Sidney J., 2002. "Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore," The International Journal of Accounting, Elsevier, vol. 37(2), pages 247-265.
- A Giner Inchausti, 1997. "The influence of company characteristics and accounting regulation on information disclosed by Spanish firms," European Accounting Review, Taylor and Francis Journals, vol. 6(1), pages 45-68.
- Jaggi, Bikki & Low, Pek Yee, 2000. "Impact of Culture, Market Forces, and Legal System on Financial Disclosures," The International Journal of Accounting, Elsevier, vol. 35(4), pages 495-519, 010.
- James Patton & Ivan Zelenka, 1997. "An empirical analysis of the determinants of the extent of disclosure in annual reports of joint stock companies in the Czech Republic," European Accounting Review, Taylor and Francis Journals, vol. 6(4), pages 605-626.
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Shahrokh M Saudagaran, 1988. "An Empirical Study of Selected Factors Influencing the Decision to List on Foreign Stock Exchanges," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 101-127, March.
- 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.
- 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 and Francis Journals, vol. 14(3), pages 487-524.
- Gary K Meek & Clare B Roberts & Sidney J Gray, 1995. "Factors Influencing Voluntary Annual Report Disclosures By U.S., U.K. and Continental European Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 555-572, September.
- Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-49, June.
- Bernard Raffournier, 1995. "The determinants of voluntary financial disclosure by Swiss listed companies," European Accounting Review, Taylor and Francis Journals, vol. 4(2), pages 261-280.
- G K Meek & S J Gray, 1989. "Globalization of Stock Markets and Foreign Listing Requirements: Voluntary Disclosures by Continental European Companies Listed on the London Stock Exchange," Journal of International Business Studies, Palgrave Macmillan, vol. 20(2), pages 315-336, June.
- Street, Donna L. & Bryant, Stephanie M., 2000. "Disclosure Level and Compliance with IASs: A Comparison of Companies With and Without U.S. Listings and Filings," The International Journal of Accounting, Elsevier, vol. 35(3), pages 305-329, 09.
- Annelies Renders & Ann Gaeremynck, 2007. "The Impact of Legal and Voluntary Investor Protection on the Early Adoption of International Financial Reporting Standards (IFRS)," De Economist, Springer, vol. 155(1), pages 49-72, March.
- Myers, Stewart C., 1977. "Determinants of corporate borrowing," Journal of Financial Economics, Elsevier, vol. 5(2), pages 147-175, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.