Auditor Opinion, IFRS Adoption and Macro Determinants of Financial Distress

Tarek Elkalla

Accounting and Finance Research, 2025, vol. 14, issue 2, 40

Abstract: This study aims to investigate the impact of auditor opinion, IFRS adoption, and macro-level factors on financial distress using a sample of 221 non-financial UK manufacturing firms listed between 2014 and 2023. A panel fixed-effects regression model is applied to test the research hypotheses, with Altman’s Z-Score serving as a proxy for financial distress. The findings reveal a significant negative association between IFRS adoption and Altman’s Z-Score, while auditor opinion exhibits a significant positive relationship with the Z-Score. Additionally, strong evidence suggests that a composite measure of country-level index variables is significantly linked to higher financial distress. This paper makes a valuable contribution to the financial distress literature by addressing the limited research on the predictive role of IFRS adoption and auditor opinion in financial distress. Furthermore, by examining macro-level influences, this study adds to the existing literature, which predominantly focuses on firm-specific factors.

Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.sciedupress.com/journal/index.php/afr/article/download/27473/17004 (application/pdf)
https://www.sciedupress.com/journal/index.php/afr/article/view/27473 (text/html)

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:jfr:afr111:v:14:y:2025:i:2:p:40

Access Statistics for this article

More articles in Accounting and Finance Research from Sciedu Press Contact information at EDIRC.
Bibliographic data for series maintained by Sciedu Press ().