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The role of institutional pressures in developing countries. Implications for IFRS

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  • Cătălina Florentina PRICOPE

    (Bucharest University of Economic Studies, Romania)

Abstract

As more countries consider the adoption of International Financial Reporting Standards (IFRS) it becomes increasingly important to understand the key factors that encourage IFRS diffusion on a global scale. The purpose of this study is to identify the relationship between institutional factors and IFRS adoption in developing countries. Drawing upon the institutional isomorphism theory and using a logit model to analyse a sample of 97 developing countries in 2013, this paper provides empirical evidence that the process of IFRS adoption is significantly influenced by mimetic pressures. These findings contradict the mainstream belief that IFRS adoption in developing countries is driven by perceived economic benefits.

Suggested Citation

  • Cătălina Florentina PRICOPE, 2016. "The role of institutional pressures in developing countries. Implications for IFRS," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(607), S), pages 27-40, Summer.
    • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:2(607):p:27-40
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    Cited by:

    1. Alexandra-Gabriela Marina, 2019. "ACCOUNTING AND CULTURAL DIMENSIONS IN EUROPE AND CIS COUNTRIES REGARDING THE ADOPTION OF IFRS FOR SMEs," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(21), pages 1-2.

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