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Measurement of harmony of financial reporting within and between countries: the case of the Nordic countries

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  • Sally Aisbitt

Abstract

This article aims to examine the usefulness of Archer et al.et's (1995) decomposed C-index in measuring harmony and hence harmonization. Financial reporting in the Nordic countries (Denmark, Finland, Norway and Sweden) at four dates in the period between 1981 and 1998 is used as a case study to demonstrate the method and to generate debate about the methodology. The discussion of the results of the analysis leads to the identification of a number of problems that arise in the interpretation of the indices. The difficulties have been divided into two main groups: (1) problems relating to causal inference; and (2) problems relating to properties of the indices. It is argued that the inter-play between these difficulties means that the use and interpretation of the indices is very complicated. Overcoming these obstacles would require a far more intricate model, which might prove less satisfactory than a qualitative analysis based on closer examination of the base data.

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  • Sally Aisbitt, 2001. "Measurement of harmony of financial reporting within and between countries: the case of the Nordic countries," European Accounting Review, Taylor & Francis Journals, vol. 10(1), pages 51-72.
    • Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:51-72
    DOI: 10.1080/09638180122041
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    1. Richard Morris & R. Parker, 1998. "International harmony measures of accounting policy: comparative statistical properties," Accounting and Business Research, Taylor & Francis Journals, vol. 29(1), pages 73-86.
    2. Emmanuel N. Emenyonu & Ajay Adhikari, 1998. "Measuring the Degree of International Harmony in Selected Accounting Measurement Practices," Australian Accounting Review, CPA Australia, vol. 8(16), pages 24-32, November.
    3. Leo van der Tas, 1992. "Evidence of EC financial reporting practice harmonization," European Accounting Review, Taylor & Francis Journals, vol. 1(1), pages 69-104.
    4. Emenyonu, Emmanuel N. & Gray, Sidney J., 1996. "International accounting harmonization and the major developed stock market countries: An empirical study," The International Journal of Accounting, Elsevier, vol. 31(3), pages 269-279.
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    1. Jiri Strouhal & Dana Dvorakova & Bohuslava Knapova, 2009. "Preliminary view on owner’s and manager’s approach to valuation," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 178-185, November.
    2. Hermes, Cornelis & Oxelheim, L. & Randoy, Trond & Hooghiemstra, Reginald, 2015. "The impact of board internationalization on earnings management," Research Report 15010-I&O, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    3. Muhammad Jahangir Ali, 2006. "Disclosure harmonization of accounting practices: the case for South Asia," Asian Review of Accounting, Emerald Group Publishing, vol. 14(1), pages 168-186, July.
    4. Jones, Stewart & Finley, Aimee, 2011. "Have IFRS made a difference to intra-country financial reporting diversity?," The British Accounting Review, Elsevier, vol. 43(1), pages 22-38.
    5. Salma Damak-Ayadi, 2007. "De L'Efficacite Des Mesures De Convergence Pour Preparer Le Passage Aux Ias/Ifrs En France," Post-Print halshs-00544879, HAL.
    6. Hooghiemstra, Reggy & Hermes, Niels & Oxelheim, Lars & Randøy, Trond, 2019. "Strangers on the board: The impact of board internationalization on earnings management of Nordic firms," International Business Review, Elsevier, vol. 28(1), pages 119-134.
    7. Andersson, Patric & Hellman, Niclas, 2020. "Analysts’ evaluations of acquisitions: Swedish survey evidence on IFRS knowledge and the use of accounting information for valuation purposes," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    8. Axel Haller, 2002. "Financial accounting developments in the European Union: past events and future prospects," European Accounting Review, Taylor & Francis Journals, vol. 11(1), pages 153-190.
    9. Cristina Silvia Nistor & Cristina Alexandrina Stefanescu, 2012. "Public vs. Banking Sector Accounting - How Far Is Romania from International Referential?," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 86-100, June.
    10. Patricia Teixeira Lopes & Lucia Lima Rodrigues, 2004. "Accounting practices for financial instruments. How far are Portuguese companies from IAS?," FEP Working Papers 150, Universidade do Porto, Faculdade de Economia do Porto.
    11. Stefanescu Cristina Alexandrina, 2012. "Accounting Practices From Financial Instruments Disclosure Perspective '" The Case Of Romanian Banking System," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 595-601, December.
    12. Malcolm Anderson, 2002. "Accounting History publications 2001," Accounting History Review, Taylor & Francis Journals, vol. 12(3), pages 505-512.
    13. Wolfgang Ballwieser, 2019. "Überlegungen zu Theorie und Praxis der Finanzberichterstattung: Herausforderungen, Erkenntnisse und Lücken [Reflections on Theory and Practice of Financial Reporting: Challenges, Scientific Finding," Schmalenbach Journal of Business Research, Springer, vol. 71(2), pages 169-211, July.
    14. Ross H. Taplin, 2017. "Measuring the Comparability of Company Accounts Conditionally: A Research Note," Abacus, Accounting Foundation, University of Sydney, vol. 53(4), pages 527-542, December.
    15. Mustata Razvan V. & Matis Dumitru & Dragos Dana Simona, 2010. "Material Accounting Harmonization: An Overview Of Trade Literature," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 548-552, July.
    16. Qu, Xiaohui & Zhang, Guohua, 2010. "Measuring the convergence of national accounting standards with international financial reporting standards: The application of fuzzy clustering analysis," The International Journal of Accounting, Elsevier, vol. 45(3), pages 334-355, September.
    17. Alessandro Mechelli, 2009. "Accounting Harmonization and Compliance in Applying IASB Standards: An Empirical Survey about the First Time Adoption of IAS 7 by Italian Listed Groups," Accounting in Europe, Taylor & Francis Journals, vol. 6(2), pages 231-270, December.
    18. Ana Yetano S�nchez de Munia�n, 2003. "Harmonization at the European Union: A difficult but needed task," Documentos de Trabajo dt2003-07, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    19. Sally Aisbitt, 2002. "Harmonisation of financial reporting before the European Company Law Directives: the case of the Nordic Companies Act," Accounting and Business Research, Taylor & Francis Journals, vol. 32(2), pages 105-117.
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