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An investigation of compliance with international accounting standards by listed companies in the Gulf Co-Operation Council member states

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  • Al-Shammari, Bader
  • Brown, Philip
  • Tarca, Ann

Abstract

This study investigates the extent of compliance with international accounting standards (IASs) by companies in the Gulf Co-Operation Council (GCC) member states (Bahrain, Oman, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates). Based on a sample of 137 companies (436 company-years) we find that compliance increased over time, from 68% in 1996 to 82% in 2002. Despite strong economic and cultural ties between the GCC states, there was significant between-country variation in compliance and among companies based on size, leverage, internationality, and industry. The study provides evidence of de jure but not de facto harmonization in the region. Noncompliance reflected some ineffectiveness in the functions of external auditors and enforcement bodies, which may be of interest to countries that have adopted IASs recently.

Suggested Citation

  • Al-Shammari, Bader & Brown, Philip & Tarca, Ann, 2008. "An investigation of compliance with international accounting standards by listed companies in the Gulf Co-Operation Council member states," The International Journal of Accounting, Elsevier, vol. 43(4), pages 425-447, December.
  • Handle: RePEc:eee:accoun:v:43:y:2008:i:4:p:425-447
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    References listed on IDEAS

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    1. repec:eee:advacc:v:35:y:2016:i:c:p:8-25 is not listed on IDEAS
    2. repec:hur:ijarbs:v:7:y:2017:i:11:p:716-730 is not listed on IDEAS
    3. Alali, Fatima A. & Foote, Paul Sheldon, 2012. "The Value Relevance of International Financial Reporting Standards: Empirical Evidence in an Emerging Market," The International Journal of Accounting, Elsevier, vol. 47(1), pages 85-108.
    4. Al-Hadi, Ahmed & Taylor, Grantley & Hossain, Mahmud, 2015. "Disaggregation, auditor conservatism and implied cost of equity capital: An international evidence from the GCC," Journal of Multinational Financial Management, Elsevier, vol. 29(C), pages 66-98.
    5. repec:eee:jocaae:v:11:y:2015:i:3:p:262-279 is not listed on IDEAS
    6. repec:eee:advacc:v:30:y:2014:i:2:p:413-424 is not listed on IDEAS
    7. Ana Isabel Morais & Ana Fialho, 2008. "Do Harmonised Accounting Standards Lead to Harmonised Accounting Practices? An Empirical Study of IAS 39 Measurement Requirements in Some European Union Countries," Australian Accounting Review, CPA Australia, vol. 18(3), pages 224-236, September.
    8. Al-Hadi, Ahmed & Taylor, Grantley & Al-Yahyaee, Khamis Hamed, 2016. "Ruling Family Political Connections and Risk Reporting: Evidence from the GCC," The International Journal of Accounting, Elsevier, vol. 51(4), pages 504-524.
    9. katia Corsi & Daniela Mancini, 2015. "Regulatory compliance of financial control systems and its implications for accountants. Some evidence from Italian experience," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2015(3), pages 65-91.
    10. Eulaiwi, Baban & Al-Hadi, Ahmed & Taylor, Grantley & Al-Yahyaee, Khamis Hamed & Evans, John, 2016. "Multiple directorships, family ownership and the board nomination committee: International evidence from the GCC," Emerging Markets Review, Elsevier, vol. 28(C), pages 61-88.
    11. Faisal S. Alanezi & Mishari M. Alfaraih & Eyad A. Alrashaid & Saad S. Albolushi, 2012. "Dual/joint auditors and the level of compliance with international financial reporting standards (IFRS-required disclosure): The case of financial institutions in Kuwait," Journal of Economic and Administrative Sciences, Emerald Group Publishing, vol. 28(2), pages 109-129, February.
    12. Abdallah, Abed Al-Nasser & Hassan, Mostafa Kamal & McClelland, Patrick L., 2015. "Islamic financial institutions, corporate governance, and corporate risk disclosure in Gulf Cooperation Council countries," Journal of Multinational Financial Management, Elsevier, vol. 31(C), pages 63-82.

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