An analysis of the firms-specific determinants influencing the voluntary IFRS adoption: evidence from Italian private firms

Sonja Pichler, Michela Cordazzo and Paola Rossi

International Journal of Accounting, Auditing and Performance Evaluation, 2018, vol. 14, issue 1, 85-104

Abstract: The EU regulation 1606/2002 enhances the financial statement comparability by requiring the IFRS mandatory application. In Italy, the implementation of EU regulation states that listed firms are required to prepare their financial statements in accordance with IFRS, then extended to private firms on a voluntary basis. The study aims to examine the influence of some firm-specific characteristics on voluntary IFRS adoption by analysing a selected sample of Italian private firms over 2006-2010. The results show that firms are more likely to adopt IFRS in their separate financial statements if there is the presence of ownership diffusion and a Big-4 along with greater profitability. Such adoption is not influenced by whether firms register a high level of capital intensity and leverage, and it does not increase with the firm size or level of foreign sales. Our findings may also represent a primary approach to investigate whether IFRS adoption could be beneficial for SMEs, as a large part of sampled firms may be classified according to the EU definition of SME.

Keywords: voluntary IFRS adoption; firm-specific determinants; accounting choices; private firms; Italy. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=89418 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:ids:ijaape:v:14:y:2018:i:1:p:85-104

Access Statistics for this article

More articles in International Journal of Accounting, Auditing and Performance Evaluation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().