Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The influence of country, industry, and topic factors on IFRS policy choice
AU - Stadler, Christian
AU - Nobes, Christopher
PY - 2014
Y1 - 2014
N2 - This paper proposes a framework for understanding management's decision-making on observable accounting policy choices. The framework is used to hypothesize how country, industry, and topic factors influence policy choice under International Financial Reporting Standards (IFRS). The hypotheses are tested on the choices made by the largest firms from 10 jurisdictions on a comprehensive set of IFRS policy topics, which are hand-collected from the financial statements. The results are consistent with the framework: country factors are particularly influential when the choice does not affect an important accounting number; and industry and topic factors influence the choice on some topics. Overall, we find that country factors have the greatest influence on IFRS policy choice.
AB - This paper proposes a framework for understanding management's decision-making on observable accounting policy choices. The framework is used to hypothesize how country, industry, and topic factors influence policy choice under International Financial Reporting Standards (IFRS). The hypotheses are tested on the choices made by the largest firms from 10 jurisdictions on a comprehensive set of IFRS policy topics, which are hand-collected from the financial statements. The results are consistent with the framework: country factors are particularly influential when the choice does not affect an important accounting number; and industry and topic factors influence the choice on some topics. Overall, we find that country factors have the greatest influence on IFRS policy choice.
KW - accounting choice
KW - IFRS
KW - international differences
U2 - 10.1111/abac.12035
DO - 10.1111/abac.12035
M3 - Journal article
VL - 50
SP - 386
EP - 421
JO - Abacus
JF - Abacus
SN - 0001-3072
IS - 4
ER -