The influences of institutional actors on the adoption of accounting standards for the public sector in Portugal

Abstract

This study analyzes how different institutional actors influenced the adoption of accounting standards based on the IPSAS in Portugal. There is a need to understand how social structures of signification, legitimation, and domination are activated by different institutional actors in the process of adopting accounting standards, particularly in a context of financial crisis. The study of the Portuguese case is particularly relevant due to the fact that the process of adopting new accounting standards based on the IPSAS took place in the context of a financial crisis related to the sovereign debt problem. Knowledge of the process of adopting accounting standards based on the IPSAS in Portugal can be useful for current and future agents of accounting changes in other countries. This research adopted a retrospective case study methodology, supported by documentary sources and semi-structured interviews as data collection and evidence generation methods. The main contribution of this study is to show the relevance of the balanced use of different social structures (signification, legitimation, and domination) in accounting change processes, as well as to show the strengthening of the power of institutional actors at the economic and political level vis-à-vis other institutional actors in contexts of financial crisis.