Accounting Standards Harmonization and Financial Integration

Dhaliwal, Dan S.; He, Wen; Li, Yan; Pereira, Raynolde

doi:10.1111/1911-3846.12495

Cited by 19 publications

(22 citation statements)

References 98 publications

(215 reference statements)

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“…The widespread adoption of IFRS has drawn great interest on investigating the determinants and consequences of adopting IFRS (Zaidi and Huerta, 2014;Zaidi and Paz, 2014;Jung et al, 2016;Houqe, 2018). Researchers find the after-effects of accounting standard harmonization as transparency in accounting statements (Bhat et al, 2016), financial market integration (Dhaliwal et al, 2019), audit efficiency and accuracy (Zhang, 2018) and reduced earnings management (Dayanandan et al, 2016). Thus, a great number of studies explain the nuances of implementing common accounting standards at the firm level (Ipino and Parbonetti, 2017;Onali et al, 2017;Bassemir, 2018;Neel, 2017) and country-level (Juhmani, 2017;Mazzi et al, 2019;Zeng, 2019;Guermazi and Halioui, 2020), but do not explain the spread of IFRS across countries over time.…”

Section: Diffusion Of Ifrs 685mentioning

confidence: 99%

Diffusion of IFRS using innovation diffusion models

Dayyala

Zaidi

Bagchi

2020

IJAIM

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Purpose This study aims to examine the diffusion pattern of International Financial Reporting Standards (IFRS) into the countries and identifies the channels of diffusion. Design/methodology/approach Data includes 98 countries that made a public commitment to IFRS adoption from 2000 to 2016. Adoptee countries are categorized based on Rogers’ adopter categorizations to understand country characteristics. Innovation diffusion models such as internal influence, external influence and bass diffusion that explain diffusion patterns are applied to the cumulative adoption of IFRS. Coefficients of internal and external diffusion are obtained using the models to explain the mode of diffusion pattern of IFRS. Further tests are done to identify the best model that explains IFRS diffusion. Findings Findings show that IFRS diffusion is a result of external influence through vertical communication from a centralized body (IASB) and internal influence due to imitation and interpersonal communication between countries. Imitation effect among the countries has a stronger effect on the IFRS adoption compared to the communication obtained from IASB. Practical implications Findings obtained can help standards-setting bodies, organizations and countries to understand the potential future of adopters and non-adopters. It facilitates the standard-setting bodies to manage IFRS diffusion by implementing measures to spread the word on the benefits of IFRS. Originality/value The study generates value by modeling a successive increase in the number of IFRS adoptee countries using empirical methods and identifies the reasons for the diffusion life cycle of IFRS.

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Section: Diffusion Of Ifrs 685mentioning

confidence: 99%

Diffusion of IFRS using innovation diffusion models

Dayyala

Zaidi

Bagchi

2020

IJAIM

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“…Esta paridad se podría generar por exigencias del entorno legal, económico, de la industria particular en la que se desenvuelven las empresas o, especialmente, por las necesidades de integración de los mercados de valores (Chumaceiro y Hernández, 2012;young & zeng, 2015;Urdaneta, Pérez y Acurero, 2018;Cantillo y Rivero, 2019;Dhaliwal, He, Li & Pereira, 2019), además, dependería de aspectos como la fortaleza del proceso de emisión y aplicación de las normas contables, el nivel de exigencia de las auditorías independientes, el cumplimiento efectivo de la legislación comercial y el grado de protección de los inversionistas (Archibold et al, 2017;Ross, Shi & Xie, 2019;Cantillo y Rivero, 2019).…”

Section: Marco Conceptualunclassified

“…yDhaliwal et al (2019). Porcentaje de empresas colombianas cotizadas no financieras que revelan sus políticas contables para reconocer sus inventarios en sus estados financieros anuales (2011-2017)…”

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Los IFRS y la armonización contable material de los inventarios de las empresas colombianas cotizantes no financieras

Bonilla¹,

Sarmiento²,

Navarrete³

et al. 2020

Revista Económicas CUC

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Los inventarios son un rubro estratégico en el desarrollo del objeto social de las empresas que se dedican, principalmente, a la manufactura y comercialización de productos. Así entonces, esta investigación es una contribución a la literatura sobre los efectos de la convergencia colombiana hacía IFRS. Se analizó la armonización material de las prácticas sobre el tratamiento contable de los inventarios para empresas cotizantes no financieras, esto a partir del estudio de sus estados financieros y la estimación de un índice de Herfindahl para medir la coincidencia en la elección de la fórmula del cálculo del costo. Al comparar el periodo previo (2011 y 2013) con el de aplicación de los IFRS (2015 y 2017) se encontró que hay un aumento relevante en las divulgaciones sobre las políticas contables y el reconocimiento inicial de estos activos, pero aún son bastantes las brechas en aspectos como la medición posterior, el valor neto realizable y el deterioro. En cuanto a la divulgación de información referente a pérdidas por deterioro del inventario se concluye que hay un aumento sustancial entre el periodo previo y el de aplicación.

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“…For instance, some scholars found a positive association between IFRS adoption and financial market integration (e.g., Cai & Wong, 2010;E. De George, 2013;Dhaliwal, He, Li, & Pereira, 2019), whereas others found an insignificant association between them (Alnodel, 2016;Naranjo, Saavedra, & Verdi, 2017). Similarly, while some previous studies reported a positive relationship between IFRS and market capitalization (Ben Othman & Kossentini, 2015;Judge et al, 2010;Klibi & Kossentini, 2014;Lasmin, 2011), other studies found a negative link between them (Brochet, Jagolinzer, & Riedl, 2013;Hope et al, 2006;Renders & Gaeremynck, 2007;Shima & Yang, 2012).…”

Section: Introductionmentioning

confidence: 99%

The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross‐countryanalysis

Elmghaamez

Attah‐Boakye

Adams

et al. 2021

Thunderbird Intl Bus Rev

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This article seeks to contribute to International Financial Reporting Standards (IFRS) literature by examining the effects of adopting IFRS on stock market performance worldwide from the diffusion of innovation theory perspective. Our study revealed several interesting findings after using combinations of unique panel data sets from 110 countries worldwide and conducting a robust empirical analysis from 1995 to 2014. First, we found a positive association between late mandatory IFRS adoption and stock market integration in Europe. Second, our findings indicate a significant negative association between early IFRS adoption and the following financial indicators: stock market trading volumes, stock market capitalization, market turnover, and market return. Third, our study reveals an insignificant association between early IFRS adoption and stock price volatility alongside stock market development. Our findings are robust and have significant practical and policy implications for regulators and policymakers of multinational corporations.

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Accounting Standards Harmonization and Financial Integration

Cited by 19 publications

References 98 publications

Diffusion of IFRS using innovation diffusion models

Diffusion of IFRS using innovation diffusion models

Los IFRS y la armonización contable material de los inventarios de las empresas colombianas cotizantes no financieras

The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross‐countryanalysis

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