Empirical Evidence on Jurisdictions that Adopt IFRS

By Ole‐Kristian Hope, J. Jin, Tony Kang. 2006

295 citations recorded by the source corpus.

International Financial Reporting Standards (IFRS) have recently been adopted in a number of jurisdictions, including the European Union. Despite the importance of IFRS in the context of global accounting standards harmonization, little is known regarding what institutional factors influence countries' decisions to voluntarily adopt IFRS. This issue is relevant to standard‐setters because a better understanding of the motivations for adoption will enable them to promote IFRS more effectively to countries that currently do not employ IFRS. Consistent with bonding theory, we find that countries with weaker investor protection mechanisms are more likely to adopt IFRS. Our evidence also shows that jurisdictions that are perceived to provide better access to their domestic capital markets are more likely to adopt IFRS. Taken together, our results are consistent with the view that IFRS represent a vehicle through which countries can improve investor protection and make their capital markets more accessible to f...

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/c7b4496984e51aca1fa247c6fdb09c92d2f14c5e

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Citations in the corpus

Impact of International Financial Reporting Standard adoption on key financial ratios (2009, unknown): “The present paper contributes to the literature investigating the economic consequences of IFRS adoption (e.g. Bartov et al., 2005; Hope et al., 2005; Daske and Gebhardt, 2006; Ding et al., 2006; Barth et al., 2008) in two respects.”
Adopting a Label: Heterogeneity in the Economic Consequences of IFRS Adoptions * (2007, background): “…(e.g., Leuz and Verrecchia, 2000; Ashbaugh, 2001; Tarca, 2004; Cuijpers and Buijink, 2005; Renders and Gaeremynck, 2005) as well as studies examining the determinants and effects of mandatory IFRS adoption in certain countries (e.g., Comprix et al., 2003; Armstrong et al., 2006; Hope et al., 2006).”
IFRS reporting, firm-specific information flows, and institutional environments: international evidence (2012, unknown): “Recent studies by Durnev and Kim (2005), Francis et al. (2005), Hope et al. (2006), and Burgstahler et al. (2006) provide evidence corroborating the above argument.”
Network Effects in Countries’ Adoption of IFRS (2014, unknown): “In this vein, Hope et al. (2006) provide evidence that disclosure practices, investor protection, accessibility of equity markets to firms, and the size of equity markets are linked to country’s adoption decisions.”
Adopting a Label: Heterogeneity in the Economic Consequences Around IAS/IFRS Adoptions (2013, background): “…(e.g., Leuz and Verrecchia, 2000; Ashbaugh, 2001; Tarca, 2004; Cuijpers and Buijink, 2005; Renders and Gaeremynck, 2005) as well as studies examining the determinants and effects of mandatory IFRS adoption in certain countries (e.g., Comprix et al., 2003; Armstrong et al., 2006; Hope et al., 2006).”
Why do Countries Adopt International Financial Reporting Standards (2009, background): “Any errors are our responsibility.”
Home Bias, Foreign Mutual Fund Holdings, and the Voluntary Adoption of International Accounting Standards (2007, unknown): “For studies that analyze IAS choice see Leuz and Verrecchia (2000), Ashbaugh (2001) and Hung and Subramanyam (2004)).”
International Financial Reporting Standards: what are the benefits? (2011, methodology): “2008) was based on more than 100,000 firm-year observations drawn from 32 countries between 2000 and 2006 and employed a country-level enforcement index (Hope et al. 2006).”