Examining dual accounting systems in Europe

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dc.contributor.author Macías Dorissa, Marta Pilar
dc.contributor.author Muiño Vázquez, Flora
dc.date.accessioned 2011-11-25T18:45:49Z
dc.date.available 2011-11-25T18:45:49Z
dc.date.issued 2011-03
dc.identifier.bibliographicCitation The International Journal of Accounting, March 2011, v. 46, n. 1, pp. 51-78
dc.identifier.issn 0020-7063
dc.identifier.uri http://hdl.handle.net/10016/12645
dc.description.abstract After adoption of International Financial Reporting Standards (IFRS) for consolidated financial statements by European listed companies, a number of European countries still require the use of local standards in the preparation of legal entity financial statements. This study investigates whether this requirement can be explained by a low demand for high quality financial reporting and an orientation of accounting toward the fulfilment of regulatory needs in these countries. Specifically, using accounting quality as an indicator of the focus of accounting on capital providers' needs, we compare accounting quality between countries permitting and prohibiting the use of IFRS in individual financial statements. Consistent with our expectations, we find that countries requiring the use of local standards in the preparation of legal entity financial statements exhibit a significantly lower level of accounting quality, both prior to and after IFRS adoption. We interpret these results as evidence that these countries have local standards more oriented toward the satisfaction of regulatory needs, rather than investors' needs. Furthermore, since differences in accounting quality persist after the implementation of IFRS, results suggest that firms in these countries face a lower demand for high quality financial reporting
dc.description.sponsorship We appreciate the financial support from the Spanish Ministry of Education through grants SEJ 2007 and SEJ- 2010, and the Comunidad de Madrid through grant CCG06-UC·M/TIC-0766
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.rights ©Elsevier
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other IFRS endorsement
dc.subject.other Accounting quality
dc.subject.other Value relevance
dc.subject.other Domestic GAAP
dc.title Examining dual accounting systems in Europe
dc.type article
dc.description.status Publicado
dc.relation.publisherversion http://dx.doi.org/10.1016/j.intacc.2010.12.001
dc.subject.eciencia Empresa
dc.identifier.doi 10.1016/j.intacc.2010.12.001
dc.rights.accessRights openAccess
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 51
dc.identifier.publicationissue 1
dc.identifier.publicationlastpage 78
dc.identifier.publicationtitle The International Journal of Accounting
dc.identifier.publicationvolume 46
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