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Voluntary adoption of IFRS: A study of determinants for UK unlisted firms

Author

Listed:
  • Paul André

    (ESSEC Business School)

  • Peter Walton

    (ESSEC Business School)

  • Dan Yang

    (Capital Normal University [Beijing])

Abstract

We examine the determinants of voluntary adoption of IFRS by medium-to-large UK unlisted firms (8417 firms comprising 287 IFRS firms and 8130 non-IFRS firms in 2009). Analysing voluntary adoption allows us to better understand the cost/benefits of choosing a specific set of accounting standards. Using univariate and multivariate analyses, we find that internationality, leverage, firm size and auditor reputation help explain UK unlisted firms' choice of voluntarily selecting IFRS. Other firm characteristics such as profitability, capital intensity, industry, growth, ownership structure, and employee productivity do not appear to play a significant role in the decision. Additionally, we find that newly incorporated firms a higher probability of adopting IFRS.

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  • Paul André & Peter Walton & Dan Yang, 2012. "Voluntary adoption of IFRS: A study of determinants for UK unlisted firms," Post-Print hal-00935013, HAL.
    • Handle: RePEc:hal:journl:hal-00935013
    Note: View the original document on HAL open archive server: https://hal.science/hal-00935013
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    References listed on IDEAS

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    IFRS; Adoption;

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