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Compliance with international financial reporting standards: the case of listed firms in Ghana

Author

Listed:
  • Kingsley Opoku Appiah
  • Dadson Awunyo-Vitor
  • Kwame Mireku
  • Christian Ahiagbah

Abstract

Purpose - This study aims to examine the association between five firm-specific characteristics and the level of compliance with International Financial Reporting Standards (IFRS) by companies listed on Ghana Stock Exchange. The five firm-specific characteristics are firm size, profitability, leverage, auditor type and firm age. Design/methodology/approach - The study uses dataset from 31 listed Ghanaian firms from 2008 to 2012. Random effect is used to examine the influence of the predictive variables on the level of IFRS corporate compliance. Findings - The result reveals a positive significant relationship between the level of compliance and firm size, auditor type, cross-listing and sector (information and communications technology (ICT) and agro-forestry). On the contrary, the level of compliance exhibits a negative significant association with leverage and firm age. It is observed that the level of compliance is not related to profitability. The results are robust to different model specifications. Practical implications - This study identifies firm-specific characteristics that influence IFRS compliance by listed firms in Ghana. This would aid accounting policy makers to institute strategies to encourage compliance with IFRS by the listed firms. Originality/value - The study contributes to financial reporting literature relating to developing economies and Ghana, in particular.

Suggested Citation

  • Kingsley Opoku Appiah & Dadson Awunyo-Vitor & Kwame Mireku & Christian Ahiagbah, 2016. "Compliance with international financial reporting standards: the case of listed firms in Ghana," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 14(1), pages 131-156, July.
    • Handle: RePEc:eme:jfrapp:v:14:y:2016:i:1:p:131-156
    DOI: 10.1108/JFRA-01-2015-0003
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    Citations

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    Cited by:

    1. Gatluak Gach Chuol Thony & Anthony Duku Peter, 2023. "The Impact of Adoption of International Financial Reporting Standard on Quality of Accounting Information in South Sudan: A Case Study of Kenya Commercial Bank and Cooperative Bank," International Journal of Science and Business, IJSAB International, vol. 19(1), pages 28-48.
    2. Tsalavoutas, Ioannis & Tsoligkas, Fanis & Evans, Lisa, 2020. "Compliance with IFRS mandatory disclosure requirements: A structured literature review," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    3. Amal Yamani & Khaled Hussainey, 2021. "Compliance with IFRS 7 by financial institutions: evidence from GCC," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(1), pages 42-57, March.
    4. MNIF, Yosra & TAHARI, Marwa, 2022. "Audit committee characteristics and compliance by Islamic banks with AAOIFI accounting standards," Advances in accounting, Elsevier, vol. 57(C).
    5. Joseph Mbawuni, 2019. "Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(9), pages 1-29, September.

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