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

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  • 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
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    References listed on IDEAS

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