IDEAS home Printed from https://ideas.repec.org/a/aic/saebjn/v64y2017i1p59-81n59.html
   My bibliography  Save this article

Specifics Of Ifrs Adoption By Central And Eastern European Countries: Evidence From Research

Author

Listed:
  • David PROCHÃ ZKA

Abstract

The paper reviews recent literature on the specifics of adoption of International Financial Reporting Standards (IFRS) by the new EU members from the Central and Eastern Europe. Despite being members of the EU or OECD, the transition to a standard developed economy has not yet finished. The first part of the paper presents macroeconomic statistics and capital market data, which underline a unique economic structure of the region (relative unimportance of capital markets for raising capital, strong dependence on foreign direct investments) combined with the lacks in institutional environment. Under such conditions, the economic consequences of IFRS adoption can be unpredictable and adverse. The second part of the paper analyses the reflection of specifics of the IFRS adoption in the CEE region in research studies covered by the Thomson Reuters’ Web of Science database. The analysis reveals (a) cross-country disproportion in the research coverage of the area; (b) relatively low coverage of the IFRS research focusing on these transition countries in top journals. JEL Codes - M41

Suggested Citation

  • David PROCHÃ ZKA, 2017. "Specifics Of Ifrs Adoption By Central And Eastern European Countries: Evidence From Research," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 64(1), pages 59-81, March.
    • Handle: RePEc:aic:saebjn:v:64:y:2017:i:1:p:59-81:n:59
    as

    Download full text from publisher

    File URL: http://saeb.feaa.uaic.ro/index.php/saeb/article/view/1039
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jere Francis & Inder Khurana & Xiumin Martin & Raynolde Pereira, 2008. "The Role of Firm-Specific Incentives and Country Factors in Explaining Voluntary IAS Adoptions: Evidence from Private Firms," European Accounting Review, Taylor & Francis Journals, vol. 17(2), pages 331-360.
    2. Patrik Svoboda, 2007. "Reporting of tangible fixed assets pursuant to the Czech accounting law and International Accounting Standards IAS/IFRS and US GAAP [Vykazování hmotného dlouhodobého majetku dle českého účetního pr," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 55(6), pages 255-264.
    3. Naomi Soderstrom & Kevin Jialin Sun, 2007. "IFRS Adoption and Accounting Quality: A Review," European Accounting Review, Taylor & Francis Journals, vol. 16(4), pages 675-702.
    4. Iatridis, George & Rouvolis, Sotiris, 2010. "The post-adoption effects of the implementation of International Financial Reporting Standards in Greece," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 19(1), pages 55-65.
    5. Karol Marek KLIMCZAK, 2011. "Market Reaction to Mandatory IFRS Adoption: Evidence from Poland," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 10(2), pages 228-248, June.
    6. Patrik Svoboda & Emil Svoboda, 2007. "Tangible fixed assets of a company pursuant to the czech accounting law and international accounting standards," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 10(1), pages 57-65.
    7. Albu, Cătălin Nicolae & Albu, Nadia & Alexander, David, 2014. "When global accounting standards meet the local context—Insights from an emerging economy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(6), pages 489-510.
    8. Leuz, Christian & Nanda, Dhananjay & Wysocki, Peter D., 2003. "Earnings management and investor protection: an international comparison," Journal of Financial Economics, Elsevier, vol. 69(3), pages 505-527, September.
    9. Alicja Jaruga & Justyna Fijalkowska & Malgorzata Jaruga-Baranowska & Maciej Frendzel, 2007. "The Impact of IAS/IFRS on Polish Accounting Regulations and their Practical Implementation in Poland," Accounting in Europe, Taylor & Francis Journals, vol. 4(1), pages 67-78, June.
    10. Nadia Albu & Catalin Nicolae Albu, 2014. "Editorial - IFRS application in Central and South-Eastern European countries," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 13(2), pages 182-197, June.
    11. Beverley Jackling & Bryan Howieson & Riccardo Natoli, 2012. "Some Implications of IFRS Adoption for Accounting Education," Australian Accounting Review, CPA Australia, vol. 22(4), pages 331-340, December.
    12. Nadia Albu & Cătălin Nicolae Albu, 2012. "International Financial Reporting Standards in an Emerging Economy: Lessons from Romania," Australian Accounting Review, CPA Australia, vol. 22(4), pages 341-352, December.
    13. Anwer S. Ahmed & Michael Neel & Dechun Wang, 2013. "Does Mandatory Adoption of IFRS Improve Accounting Quality? Preliminary Evidence," Contemporary Accounting Research, John Wiley & Sons, vol. 30(4), pages 1344-1372, December.
    14. Nadia Albu & Ioana Lupu & Raluca Sandu, 2014. "Multinationals as Vectors of Corporate Governance Improvement in Emerging Economies in Eastern Europe: A Case Study," CSR, Sustainability, Ethics & Governance, in: Sabri Boubaker & Duc Khuong Nguyen (ed.), Corporate Governance in Emerging Markets, edition 127, pages 331-349, Springer.
    15. Houqe, Muhammad Nurul & van Zijl, Tony & Dunstan, Keitha & Karim, A.K.M. Waresul, 2012. "The Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World," The International Journal of Accounting, Elsevier, vol. 47(3), pages 333-355.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Callao, Susana & Jarne, José I. & Wroblewski, David, 2020. "Do the burst of financial crisis and European Union membership impact Earnings Management. Evidence from emerging Eastern European countries," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 25(4), pages 608-647.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trimble, Madeline, 2018. "A reinvestigation into accounting quality following global IFRS adoption: Evidence via earnings distributions," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 33(C), pages 18-39.
    2. Trinh, Quoc Dat & Haddad, Christian & Salameh, Elie, 2023. "Financial institutional blockholders and earnings quality: Do blockholders contestability and countries' institutions matter?," International Review of Financial Analysis, Elsevier, vol. 87(C).
    3. Ahmed, Kamran & Chalmers, Keryn & Khlif, Hichem, 2013. "A Meta-analysis of IFRS Adoption Effects," The International Journal of Accounting, Elsevier, vol. 48(2), pages 173-217.
    4. Philip Brown, 2013. "Some Observations on Research on the Benefits to Nations of Adopting IFRS," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 3, pages 1-19, December.
    5. June Cao & Chris Patel, 2020. "The role of the national institutional environment in IFRS convergence: a new approach," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 3367-3406, December.
    6. N. Eriotis & T. Kounadeas & K. Liapis & E. Poutos, 2019. "The Impact of IFRS Adoption by Greek Listed Companies on the Earnings Quality: An Empirical Investigation," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 9(3-4), pages 90-100.
    7. Kim, Hyonok & Yasuda, Yukihiro & 安田, 行宏, 2020. "Earnings Management and Stock Market Listing," Working Paper Series G-1-24, Hitotsubashi University Center for Financial Research.
    8. Sílvio Hiroshi Nakao & Sidney J. Gray, 2018. "The Impact of IFRS in Brazil: The Legacy of Mandatory Book‐tax Conformity," Australian Accounting Review, CPA Australia, vol. 28(4), pages 482-495, December.
    9. In Tae Hwang & Kang Sung Hur & Sun Min Kang, 2018. "Does the IFRS Effect Continue? An International Comparison," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    10. Christensen, Hans B. & Hail, Luzi & Leuz, Christian, 2013. "Mandatory IFRS reporting and changes in enforcement," Journal of Accounting and Economics, Elsevier, vol. 56(2), pages 147-177.
    11. Isidro, Helena & Raonic, Ivana, 2012. "Firm incentives, institutional complexity and the quality of “harmonized” accounting numbers," The International Journal of Accounting, Elsevier, vol. 47(4), pages 407-436.
    12. Cai, Lei & Rahman, Asheq & Courtenay, Stephen, 2014. "The Effect of IFRS Adoption Conditional Upon the Level of Pre-adoption Divergence," The International Journal of Accounting, Elsevier, vol. 49(2), pages 147-178.
    13. Nobes, Christopher, 2018. "Lessons from misclassification in international accounting," The British Accounting Review, Elsevier, vol. 50(3), pages 239-254.
    14. Houqe, Muhammad Nurul & Monem, Reza M. & Tareq, Mohammad & van Zijl, Tony, 2016. "Secrecy and the impact of mandatory IFRS adoption on earnings quality in Europe," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 476-490.
    15. El-Helaly, Moataz & Ntim, Collins G. & Al-Gazzar, Manar, 2020. "Diffusion theory, national corruption and IFRS adoption around the world," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 38(C).
    16. Visani, Franco & Di Lascio, F. Marta L. & Gardini, Silvia, 2020. "The impact of institutional and cultural factors on the use of non-GAAP financial measures. International evidence from the oil and gas industry," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    17. Tudor Liviu-Alexandru, 2022. "IFRS adoption and the impact on foreign direct investment – evidence from Central and Eastern European countries," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 870-878, August.
    18. Oz, Ibrahim Onur & Yelkenci, Tezer, 2018. "Examination of real and accrual earnings management: A cross-country analysis of legal origin under IFRS," International Review of Financial Analysis, Elsevier, vol. 58(C), pages 24-37.
    19. Andreas Charitou & Irene Karamanou & Anastasia Kopita, 2018. "The determinants and valuation effects of classification choice on the statement of cash flows," Accounting and Business Research, Taylor & Francis Journals, vol. 48(6), pages 613-650, September.
    20. Papadamou, Stephanos & Tzivinikos, Trifon, 2013. "The risk relevance of International Financial Reporting Standards: Evidence from Greek banks," International Review of Financial Analysis, Elsevier, vol. 27(C), pages 43-54.

    More about this item

    Keywords

    IFRS adoption; Central and Eastern Europe; Listed companies; Private companies;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:saebjn:v:64:y:2017:i:1:p:59-81:n:59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.