Voluntary adoption of IFRS: A study of determinants for UK unlisted firms
We examine the determinants of voluntary adoption of IFRS by medium-to-large UK unlisted firms (8417 firms comprising 287 IFRS firms and 8130 non-IFRS firms in 2009). Analysing voluntary adoption allows us to better understand the cost/benefits of choosing a specific set of accounting standards. Using univariate and multivariate analyses, we find that internationality, leverage, firm size and auditor reputation help explain UK unlisted firms' choice of voluntarily selecting IFRS. Other firm characteristics such as profitability, capital intensity, industry, growth, ownership structure, and employee productivity do not appear to play a significant role in the decision. Additionally, we find that newly incorporated firms a higher probability of adopting IFRS.
|Date of creation:||21 May 2012|
|Date of revision:|
|Publication status:||Published in Comptabilités et Innovation, May 2012, France. pp.cd-rom, 2012|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00935013|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- 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.
- DeFond, Mark & Hu, Xuesong & Hung, Mingyi & Li, Siqi, 2011. "The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability," Journal of Accounting and Economics, Elsevier, vol. 51(3), pages 240-258, April.
- Günther, Nina & Gegenfurtner, Bernhard & Kaserer, Christoph & Achleitner, Ann-Kristin, 2009. "International financial reporting standards and earnings Quality: the myth of voluntary vs. mandatory adoption," CEFS Working Paper Series 2009-09, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
- 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.
- El-Gazzar, Samir M. & Finn, Philip M. & Jacob, Rudy, 1999. "An empirical investigation of multinational firms' compliance with International Accounting Standards," The International Journal of Accounting, Elsevier, vol. 34(2), pages 239-248, 06.
- Palepu, Krishna G., 1986. "Predicting takeover targets : A methodological and empirical analysis," Journal of Accounting and Economics, Elsevier, vol. 8(1), pages 3-35, March.
- Vicentiu M. Covrig & Mark L. Defond & Mingyi Hung, 2007. "Home Bias, Foreign Mutual Fund Holdings, and the Voluntary Adoption of International Accounting Standards," Journal of Accounting Research, Wiley Blackwell, vol. 45(1), pages 41-70, 03.
- 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.
- Irene Karamanou & George P. Nishiotis, 2009. "Disclosure and the Cost of Capital: Evidence from the Market's Reaction to Firm Voluntary Adoption of IAS," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(7-8), pages 793-821.
- Mary E. Barth & Wayne R. Landsman & Mark H. Lang, 2008. "International Accounting Standards and Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 467-498, 06.
- Stefano Cascino & Joachim Gassen, 2010. "Mandatory IFRS adoption and accounting comparability," SFB 649 Discussion Papers SFB649DP2010-046, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Naomi Soderstrom & Kevin Jialin Sun, 2007. "IFRS Adoption and Accounting Quality: A Review," European Accounting Review, Taylor & Francis Journals, vol. 16(4), pages 675-702.
- Ball, Ray & Kothari, S. P. & Robin, Ashok, 2000. "The effect of international institutional factors on properties of accounting earnings," Journal of Accounting and Economics, Elsevier, vol. 29(1), pages 1-51, February.
- Hollis Ashbaugh & Morton Pincus, 2001. "Domestic Accounting Standards, International Accounting Standards, and the Predictability of Earnings," Journal of Accounting Research, Wiley Blackwell, vol. 39(3), pages 417-434, December.
- Christopher Nobes, 2010. "On Researching into the Use of IFRS by Private Entities in Europe," Accounting in Europe, Taylor & Francis Journals, vol. 7(2), pages 213-226, December.
- Ball, Ray & Robin, Ashok & Wu, Joanna Shuang, 2003. "Incentives versus standards: properties of accounting income in four East Asian countries," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 235-270, December.
- Katherine Schipper, 2005. "The introduction of International Accounting Standards in Europe: Implications for international convergence," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 101-126.
- Sylvain Durocher & Yves Gendron, 2011. "IFRS: On the Docility of Sophisticated Users in Preserving the Ideal of Comparability," European Accounting Review, Taylor & Francis Journals, vol. 20(2), pages 233-262.
- Ashbaugh, Hollis, 2001. "Non-US Firms' Accounting Standard Choices," Journal of Accounting and Public Policy, Elsevier, vol. 20(2), pages 129-153.
- Holger Daske, 2006. "Economic Benefits of Adopting IFRS or US-GAAP - Have the Expected Cost of Equity Capital Really Decreased?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(3-4), pages 329-373.
- Jere Francis & Inder Khurana & Xiumin Martin & Raynolde Pereira, 2008. "The Role of Firm-Specific Incentives and Country Factors in Explaining Voluntary IAS Adoptions: Evidence from Private Firms," European Accounting Review, Taylor & Francis Journals, vol. 17(2), pages 331-360.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00935013. See general information about how to correct material in RePEc.
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.