Why choosing IFRS? Benefits of voluntary adoption by European private companies
Jérémie Bertrand,
Hélène de Brebisson and
Aurore Burietz
Post-Print from HAL
Abstract:
In 2005, International Financial Reporting Standards (IFRS) have been legally adopted by listed firms to facilitate the harmonization of accounting practices. However, IFRS remain an option for non-listed firms in some countries. We investigate whether European privately held firms can raise more debt when they voluntarily report their consolidated financial information according to IFRS rather than local accounting rules. Using fixed effects regressions on 8391 firms in 22 European Union (EU) countries from 2005–2018, we document that IFRS adoption leads to more private debt issue for non-listed firms. This accounting option could be particularly useful for opaque firms or firms located in common law countries. Our results contribute to the debate on European accounting policy for non-listed firms.
Keywords: IFRS; Bank debt; Non-listed entities (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-acc
Note: View the original document on HAL open archive server: https://hal.science/hal-03132826
References: Add references at CitEc
Citations: View citations in EconPapers (2)
Published in International Review of Law and Economics, 2021, 65, pp.105968. ⟨10.1016/j.irle.2020.105968⟩
Downloads: (external link)
https://hal.science/hal-03132826/document (application/pdf)
Related works:
Journal Article: Why choosing IFRS? Benefits of voluntary adoption by European private companies (2021) ![Downloads](/downloads_econpapers.gif)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03132826
DOI: 10.1016/j.irle.2020.105968
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).