Documente Academic
Documente Profesional
Documente Cultură
Access to this document was granted through an Emerald subscription provided by All users group
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald
for Authors service information about how to choose which publication to write for and submission
guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as
well as providing an extensive range of online products and additional customer resources and
services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the
Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for
digital archive preservation.
Abstract
Purpose – The purpose of this paper is to review a synthesis of theories and empirical studies dealing
with the adoption of and compliance with IFRS in developing countries in an attempt to provide
directions for future research.
Design/methodology/approach – The review focusses on four main streams including: first, the
motives for IFRS adoption; second, corporate characteristics and the degree of compliance with IFRS;
third, the economic consequences of IFRS adoption and finally; fourth, the use of regulation as an
enforcement mechanism to monitor compliance with IFRS. The authors review empirical studies
specifically devoted to developing countries.
Findings – Regarding the first stream relating to IFRS adoption, the macroeconomic decision of adopting
IFRS in developing countries can be justified by two main theories which are: the economic theory of
network (Katz and Shapiro, 1985) and isomorphism (DiMaggio and Powell, 1991), however, empirical
evidence in developing countries to confirm these theories is limited. Regarding the second stream relating
to corporate characteristics and the degree of compliance with IFRS, the authors find that the results are
mixed. Regarding the third stream relating to the economic consequences of IFRS adoption, it seems that
the evidence is still limited in developing countries especially with respect to the impact of IFRS adoption
on foreign direct investment, cost of equity capital and earnings management. Regarding the fourth and
final stream in relation to regulation, enforcement and compliance with IFRS, the authors find that research
is very limited. It was evidenced in the very few research studies conducted, that global disclosure
standards are optimal only if compliance is monitored and enforced by efficient institutions.
Practical implications – The author’s study attempts to provide a foundational knowledge resource
that will inform practitioners, researchers and regulators in developing countries about the relevance of the
different theories that exist in the accounting literature to explain the adoption of and compliance with IFRS.
Originality/value – Compared to developed countries, the four streams outlined remain under-
researched in developing countries. Therefore, researchers should examine these topics in developing
countries to inform practitioners, regulators and the capital market about the effects of adopting IFRS
and their relevance to developing countries. In addition, researchers should embark on identifying new
theories to explain the adoption of and compliance with IFRS in developing countries that take into
consideration the socioeconomic culture of these settings.
Keywords Developing countries, IFRS, Enforcement, Regulation, Isomorphism,
Positive accounting theory
Paper type General review
Journal of Accounting in Emerging
The authors gratefully acknowledge the constructive comments and suggestions from the Economies
Vol. 6 No. 1, 2016
anonymous referees and Professor Gerrit Sarens, the associate editor. The authors are also grateful pp. 33-49
to participants in the American Accounting Association (AAA) Annual conference – Washington, © Emerald Group Publishing Limited
2042-1168
DC, USA, 2012 – for their helpful comments and suggestions. DOI 10.1108/JAEE-02-2013-0011
JAEE 1. Introduction
6,1 Globalization of the world economy has brought to the forefront the problems
engendered by differences in accounting reports used in many different countries. As a
result, the quest for international harmonization of accounting standards and practices
has been widely accepted as expedient and pragmatic (Chamisa, 2000; Samaha and
Stapleton, 2008; Samaha et al., 2009; Khlif and Souissi, 2010). This is congruent with
34 International Accounting Standards Board’s (IASB’s) stated aim to develop a single set
of high-quality accounting standards for all listed and other economically significant
business enterprises around the world (IASB, 1998). Following the recent globalization
waves in financial markets and the adoption of IFRS in the European community (EC),
the debate concerning the shift to IFRS and their economic consequences have been
gaining momentum ( Judge et al., 2010).
This debate is also present among policy makers and professionals in developing
countries where poor quality of financial reporting may impede their ability to attract
foreign investors, especially in their fledgling stock markets. For instance, Scott et al.
Downloaded by 190.60.213.162 At 13:47 28 August 2017 (PT)
countries. Section 3 presents research stream 2 by reviewing the theories and empirical
studies dealing with the micro-level firm-specific determinants of compliance with IFRS
in developing settings to examine the relevance of positive accounting theory to these
settings. Section 4 presents research stream 3 relating to the economic consequences of
IFRS adoption in developing economies. Section 5 presents research stream 4 by
reviewing the theories and empirical studies dealing with the role of regulation and
enforcement in relation to compliance with IFRS in developing countries. Finally,
Section 6 concludes the paper and suggests directions for future research.
pressures to move toward IFRS (Hassan, 2008). Finally, the third type is the normative
isomorphism which refers to the level of education attainment of a country (DiMaggio
and Powell, 1991). In this regard, the percentage of the population that is educated may
also affect accounting practices and therefore the shift toward IFRS (Hassan, 2008).
used to reduce agency costs and thus information asymmetry that exists between agents
(being managers and therefore insiders) and principals (who are outside the firm and less
informed). Since compliance with IFRS may mean that a firm restricts accounting choices
and makes more disclosure, therefore the existence of agency costs may be used to
explain the attitude of companies toward compliance with IFRS.
Agency theory suggests several variables to explain the degree of compliance with
IFRS. In particular, firm size, ownership diffusion, leverage and type of auditor have
frequently been hypothesized (Karim and Ahmed, 2005; Samaha and Stapleton, 2009;
Al-Akra et al., 2010) to affect compliance with IFRS by influencing the magnitude of
agency costs.
3.1.2 Signaling theory. Signaling theory was developed by Spence (1973) to explain
behavior in the labor markets (see also Watts and Zimmerman, 1986, p. 165). However,
signaling is a general phenomenon applicable in any market with information
asymmetry (Morris, 1987). The theory shows how this asymmetry can be reduced by
the party with more information signaling it to others. Applying signaling theory to
financial disclosure suggests that managers can use financial statements to signal their
expectations and intentions. Compliance with IFRS may signal to market participants
that the firm is prepared to disclose more information, or to use more restrictive
accounting standards.
Signaling theory suggests several variables to explain the degree of compliance with
IFRS. In particular, liquidity and profitability has frequently been hypothesized to
affect compliance with IFRS by influencing the problems of information asymmetry in
the market (Karim and Ahmed, 2005; Samaha and Stapleton, 2009; Al-Akra et al., 2010).
From the discussion of agency and signaling theories it can be seen that there is
considerable overlap between the two. Indeed Morris (1987) explored whether these two
theories are consistent, equivalent or competing, by examining the necessary and
sufficient conditions for them both. Morris suggests that as the sufficient conditions for
signaling theory are consistent with those of agency theory, the two theories are
consistent. However, a necessary condition for signaling theory, informational
asymmetry, is not shared by agency theory (although it is implied), and therefore they
are not equivalent, i.e. one is not implied by the other. Morris suggests that given this
consistency between agency and signaling theory it is possible to combine them to
yield predictions about accounting choices. Indeed, he concludes “[…] the prediction of
JAEE accounting choices can at least be improved by adding together the predictions from
6,1 each theory” (p. 52). It seems, therefore, that greater insight can be gained into why
companies comply with IFRS by drawing from both theories.
3.1.3 Political process theory. Positive accounting theory also considers the influence
of political costs (Watts and Zimmerman, 1990; Firth, 1979; Cahan, 1992). Inchausti
(1997) argues that the accounting policy of a firm, its existence and form, is determined
38 by considerations of contracting efficiency. Therefore, firms with serious agency
problems will spend more resources on contracting and monitoring than firms with
limited agency costs, and therefore, the same logic may be applied to political costs.
Political process theories suggest hypotheses about the use of accounting data to fix
prices in regulated industries, to fix tax policy or to decide policy on subsidies for
companies (Inchausti, 1997). Companies which are politically visible and subject to high
political costs, may employ financial information to avoid these risks, and also may
execute accounting changes to reduce such risks or even costs (Holthausen and
Downloaded by 190.60.213.162 At 13:47 28 August 2017 (PT)
Leftwich, 1983). Thus, companies with high political visibility and high political costs
have to improve compliance with IFRS as a form of restricted accounting choice and
expanded disclosure to reduce such risk. Therefore the existence of political costs may
be used to explain the attitude of companies toward the compliance with IFRS.
Political process theory suggests several variables to explain the degree of compliance
with IFRS. In particular, firm size and industry sector have frequently been hypothesized
(e.g. Karim and Ahmed, 2005; Samaha and Stapleton, 2009; Al-Akra et al., 2010) to affect
compliance with IFRS by influencing the magnitude of political visibility.
3.1.4 Capital need theory. Capital need theory suggests that companies desire to
raise capital as cheaply as possible. Increasing compliance with mandatory
requirements and the relative amount of voluntary compliance increases the ease by
which new capital can be raised (Marston and Shrives, 1996; Craven and Marston,
1999). Ashbaugh and Pincus (2001) argued that IFRS adoption is part of a concerted
effort by managers to satisfy the increased demand for information that typically
occurs as firms issue additional equity.
The capital need theory is employed to support the expectation that public
companies which are issuing securities will comply more than private companies
(which are in most cases closed companies). Finally, international companies are
competing for resources. The capital need theory is employed to support the
expectation that international companies will comply more than domestic companies.
Capital need theory suggests several variables to explain the degree of compliance
with IFRS. In particular, foreign listing and internationality have frequently been
hypothesized (e.g. Karim and Ahmed, 2005; Samaha and Stapleton, 2009; Al-Akra et al.,
2010) to affect compliance with IFRS by influencing the magnitude of competition
for resources.
foreign ownership) may play an important role in determining the extent of IFRS
compliance (Bova and Pereira, 2012), and therefore future empirical investigations have
to examine this issue to identify corporate governance attributes that strongly affect or
reduce the extent of compliance with IFRS.
after the adoption of the updated EASs in 2006 which are mainly inspired by IFRS.
He documents that there is no significant decrease of earnings management for the
post-adoption period.
Overall, it seems that the evidence for the economic consequences of IFRS is still
limited in developing countries especially with respect to the impact of IFRS adoption
on foreign direct investment and the cost of equity capital. Therefore, future research
should focus on such a crucial topic to inform policy assessments of the financial
reporting and capital market effects of adopting IFRS in developing countries.
the higher level of harmonization with IFRS in any economy does not guarantee
corporate compliance with the requirements. They suggest that the mechanism for
enforcing IFRS requirements is a key player affecting compliance in practice.
Three recent studies dealing with this topic in emerging economies are identified in
empirical literature. For instance, Chen and Zhang (2010) document that regulatory
enforcement undertaken by Chinese government in 2001 has contributed to an
increased compliance with IFRS for a sample of 103 Chinese companies between 1999
and 2004. They suggest that “the decline in earnings difference between firms’ financial
statements under Chinese GAAP and IFRS is the result of the implementation of the
2001 policy and the audit committee which effectively control the firm’s application of
standards rather than the differences between the standards” (p. 665). More recently,
Mısırlıoğlu et al. (2013) examine the question of whether the mandatory adoption of
IFRS increases the degree of firms’ compliance with IFRS in Turkey. Their findings
show that IFRS have an impact on certain accounts but the adoption is not uniform
across accounts. They also interview the Turkish auditors to understand the factors
that may constrain the successful switch toward IFRS. In their interview, Turkish
auditors suggest the dominance of tax laws, the lack of enforcement, corporate
governance issues and inadequate management information systems are all significant
in reducing the degree of compliance with IFRS in Turkey. Finally, Santos et al. (2014)
examine the same research topic in Brazil. They document that the degree of
compliance with IFRS has witnessed an improvement after the mandatory adoption
of these standards in 2010.
have to examine this issue to identify corporate governance attributes that strongly
affect or reduce the extent of IFRS compliance.
Regarding the third topic relating to the economic consequences of IFRS adoption,
there is a lack of evidence with regard to the effect of a country’s economic, legal and
political system on IFRS adoption in developing countries. Findings from some other
studies conducted in different developing countries suggest that the value relevance of
both earnings and book values has improved and foreign direct investment has
increased after such adoption. By contrast, IFRS adoption has not contributed to the
reduction of discretionary accruals. Overall it seems that the empirical evidence on
the economic consequences of IFRS adoption is still limited in developing countries
especially with respect to the impact on foreign direct investments and cost of equity
capital. Therefore, future research has to focus on this crucial topic to inform policy
assessments of the financial reporting and capital market effects of adopting IFRS in
developing countries.
Regarding the fourth and final topic in relation to regulation, enforcement and
compliance with IFRS, few research studies are identified. It was evidenced in these few
research studies that IFRS are optimal only if compliance is monitored and enforced by
efficient institutions. The use of regulation as an enforcement mechanism to monitor
compliance and impose punishments in cases of non-compliance would improve the
implementation of IFRS and enhance compliance levels. Companies do not comply with
mandatory requirements unless stringent regulation is in place. The presence of actual
liability in cases of non-compliance is important to insure implementation.
Compared to developed countries, these four topics remain under-researched in
developing countries. Therefore, future research avenues have to focus on these topics
in developing economies to inform regulators and capital markets about the effects of
adopting IFRS and their relevance to developing countries.
Future research should embark on identifying new theories to explain compliance
with IFRS in developing countries that take into consideration the socioeconomic
culture of these countries by integrating culture dimensions (e.g. uncertainty
avoidance, masculinity, individualism), the degree of market development and the level
of corruption. This is particularly important since the adoption of IFRS by countries
with institutional contexts different from those experienced by their Anglo-Saxon
counterparts along the flexibility of the principles-based approach may affect
the standard setting process in ways that are difficult to predict at the moment
(Carmona and Trombetta, 2008). In addition, examining how foreign ownership and IFRS in
other governance factors affect compliance with IFRS may also represent another developing
avenue of research in developing countries. Finally, future research may also consider
the effect of specific regulations enacted (e.g. governance rules, mandatory adoption
countries
of IFRS) on the degree of compliance with IFRS by comparing the index compliance for
the pre- and post-adoption periods.
45
Notes
1. Several literature reviews have been devoted to examine the effect of IFRS adoption in
the European Community (EC) including Soderstrom and Sun (2007) and Brüggemann
et al. (2013).
2. The economic value of IFRS refers to the ability of these standards to facilitate the efficient
allocation of capital in an economy, while their political value refers to political benefits from
having local authority over standard setting process.
Downloaded by 190.60.213.162 At 13:47 28 August 2017 (PT)
3. E.g. synchronization of local GAAP with IFRS adopted by the EC if the country has a close
economic relationship with the EC.
4. Which comply in all material respects with IFRS.
References
Ahmed, K.H., Chalmers, K. and Khlif, H. (2013), “A meta-analysis of IFRS adoption effects”,
The International Journal of Accounting, Vol. 48 No. 2, pp. 173-217.
Al-Akra, M., Eddie, I.A. and Ali, M.J. (2010), “The influence of the introduction of accounting
disclosure regulation on mandatory disclosure compliance: evidence from Jordan”,
The British Accounting Review, Vol. 42 No. 3, pp. 170-186.
Al Mutawaa, A. and Hewaidy, A. (2010), “Disclosure level and compliance with IFRS: an
empirical investigation of Kuwaiti companies”, International Business & Economics
Research Journal, Vol. 9 No. 6, pp. 33-50.
Al-Shammari, B., Brown, P. and Tarca, A. (2008), “An investigation of compliance with
international accounting standards by listed companies in the Gulf Co-operation Council
member states”, The International Journal of Accounting, Vol. 43 No. 4, pp. 425-447.
Ashbaugh, H. and Pincus, M. (2001), “Domestic accounting standards, international accounting
standards and the predictability of earnings”, Journal of Accounting Research, Vol. 39 No. 3,
pp. 417-434.
Barth, M., Landsman, W. and Lang, M. (2008), “International accounting standards and
accounting quality”, Journal of Accounting Research, Vol. 46 No. 3, pp. 467-498.
Bova, F. and Pereira, R. (2012), “The determinants and consequences of heterogeneous IFRS
compliance levels following mandatory IFRS adoption: evidence from a developing
country”, Journal of International Accounting Research, Vol. 11 No. 1, pp. 83-111.
Brüggemann, U., Hitz, J. and Sellhorn, T. (2013), “Intended and unintended consequences of
mandatory IFRS adoption: a review of extant evidence and suggestions for future
research”, European Accounting Review, Vol. 22 No. 2, pp. 1-37.
Cahan, S.F. (1992), “The effect of the antitrust investigations on discretionary accruals: a refined
test of the political-cost hypothesis”, The Accounting Review, Vol. 67 No. 1, pp. 77-95.
Carmona, S. and Trombetta, M. (2008), “On the global acceptance of IAS/IFRS accounting
standards: the logic and implications of the principles-based system”, Journal of
Accounting and Public Policy, Vol. 27 No. 6, pp. 455-461, available at: www.sciencedirect.
com/science/article/pii/S0278425408000926
JAEE Chamisa, E.E. (2000), “The relevance and observance of the IASC standards in developing
countries and the particular case of Zimbabwe”, The International Journal of Accounting,
6,1 Vol. 35 No. 2, pp. 267-286.
Chand, P. (2005), “Impetus to the success of harmonization: the case of South Pacific Island
Nations”, Critical Perspectives on Accounting, Vol. 16 No. 3, pp. 209-226.
Chen, J.J. and Zhang, H.T. (2010), “The impact of regulatory enforcement and audit upon IFRS
46 compliance – evidence from China”, European Accounting Review, Vol. 19 No. 4, pp. 665-692.
Chen, S., Sun, Z. and Wang, Y. (2002), “Evidence from China on whether harmonized
accounting standards harmonize accounting practices”, Accounting Horizons, Vol. 16 No. 3,
pp. 183-197.
Choi, F.D.S. and Mueller, G.G. (1992), International Accounting, Prentice-Hall, Englewood
Cliffs, NJ.
Craven, B.M. and Marston, C.L. (1999), “Financial reporting on the internet by leading UK
companies”, European Accounting Review, Vol. 8 No. 2, pp. 321-333.
Downloaded by 190.60.213.162 At 13:47 28 August 2017 (PT)
Dahawy, K. and Samaha, K. (2010), “An investigation of the views and perceptions of external
users of corporate annual reports in developing countries: the case of Egypt”, International
Journal of Accounting and Finance, Vol. 2 Nos 3/4, pp. 331-367.
Daske, H. (2006), “Economic benefits of adopting IFRS or US-GAAP – have the expected cost
of equity capital really decreased?”, Journal of Business Finance & Accounting, Vol. 33
Nos 3-4, pp. 329-373.
DiMaggio, P. and Powell, W.W. (1991), The New Institutionalism in Organizational Analysis,
University of Chicago Press, Chicago, IL.
Elbannan, M. (2011), “Accounting and stock market effects of international accounting standards
adoption in an developing economy”, Review of Quantitative Finance and Accounting,
Vol. 36 No. 2, pp. 207-245.
Firth, M.A. (1979), “The impact of size, stock market listing and auditors on voluntary disclosure
in corporate annual reports”, Accounting and Business Research, Vol. 9 No. 36, pp. 273-280.
Gordon, L.A., Loeb, M.P. and Zhu, W. (2012), “The impact of IFRS adoption on foreign direct
investment”, Journal of Accounting and Public Policy, Vol. 31 No. 4, pp. 374-398.
Hassan, M. (2008), “The development of accounting regulations in Egypt”, Managerial Auditing
Journal, Vol. 23 No. 5, pp. 467-484.
Healy, P.M. and Palepu, K.G. (2001), “A review of the empirical disclosure literature”, Journal of
Accounting and Economics, Vol. 31 Nos 1-3, pp. 405-440.
Holthausen, R.W. and Leftwich, R.W. (1983), “The economic consequences of accounting choice”,
Journal of Accounting and Economics, Vol. 5, pp. 77-117.
Hopwood, A. (1979), “Editorial”, Accounting, Organizations and Society, Vol. 4 Nos 1/2,
pp. 145-147.
IASB (1998), “Shaping IASC for the future”, discussion paper, International Accounting
Standards Committee, London, December.
Inchausti, B.G. (1997), “The influence of company characteristics and accounting regulation on
information disclosed by Spanish firms”, European Accounting Review, Vol. 6 No. 1,
pp. 45-68.
Ismail, W.A. and Kamarudin, K.A (2013), “Earnings quality and the adoption of IFRS based
accounting standards: evidence from an emerging market”, Asian Review of Accounting,
Vol. 21 No. 1, pp. 53-73.
Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: management behavior, agency costs
and ownership structure”, Journal of Financial Economics, Vol. 3 No. 3, pp. 305-360.
Joshi, P.L. and Ramadhan, S. (2002), “The adoption of international accounting standards by IFRS in
small and closely held companies: evidence from Bahrain”, The International Journal of
Accounting, Vol. 37 No. 4, pp. 429-440.
developing
Judge, W., Li, S. and Pinsker, R. (2010), “National adoption of international accounting
countries
standards: an institutional perspective”, Corporate Governance: An International Review,
Vol. 18 No. 3, pp. 161-174.
Karim, A. and Ahmed, J. (2005), “Determinants of IAS disclosure compliance in developing 47
countries, evidence from exchange-listed companies in Bangladesh”, Working Paper No. 21,
Working Paper Series, Centre for Accounting, Governance and Taxation Research, School
of Accounting and Commercial Law, Victoria University of Wellington, Wellington.
Katz, M.L. and Shapiro, C. (1985), “Network externalities, competition, and compatibility”, The
American Economic Review, Vol. 75 No. 3, pp. 424-440.
Khlif, H. and Souissi, M. (2010), “The determinants of corporate disclosure: a meta-analysis”,
International Journal of Accounting and Information Management, Vol. 18 No. 3,
pp. 198-219.
Downloaded by 190.60.213.162 At 13:47 28 August 2017 (PT)
Lin, Z.J. and Liyan, W. (2001), “Financial disclosures and accounting harmonization:
cases of three listed companies in China”, Managerial Auditing Journal, Vol. 16 No. 5,
pp. 263-273.
Liu, C., Yao, L.J., Hu, N. and Liu, L. (2011), “The impact of IFRS on accounting quality in a
regulated market: an empirical study of China”, Journal of Accounting, Auditing & Finance,
Vol. 26 No. 4, pp. 659-676.
Marston, C.L. and Shrives, P.J. (1996), “A review of the development and use of explanatory models
in financial disclosure studies”, working paper, University of Northumbria, Newcastle.
Mısırlıoğlu, I.U., Tucker, J. and Yükseltürk, O. (2013), “Does mandatory adoption of IFRS
guarantee compliance?”, The International Journal of Accounting, Vol. 48 No. 3, pp. 327-363.
Morris, R.D. (1987), “Signalling, agency theory and accounting policy choice”, Accounting and
Business Research, Vol. 18 No. 69, pp. 47-56.
Owusu-Ansah, S. and Yeoh, J. (2005), “The effect of legislation on corporate disclosure practices”,
Abacus, Vol. 41 No. 1, pp. 92-109.
Ramanna, K. and Sletten, E. (2009), “Why do countries adopt International Financial Reporting
Standards?”, Working Paper No. 09-102, Accounting and Management Unit, Harvard
Business School, available at: www.hbs.edu/faculty/Publication%20Files/09-102.pdf
Samaha, K. and Stapleton, P. (2008), “Compliance with international accounting standards in a
national context: some empirical evidence from the Cairo and Alexandria stock
exchanges”, Afro-Asian Journal of Finance and Accounting, Vol. 1 No. 1, pp. 40-66.
Samaha, K. and Stapleton, P. (2009), “Firm specific determinants of the extent of compliance with
international accounting standards in the corporate annual reports of companies listed on
the Egyptian Stock Exchange: a positive accounting approach”, Afro-Asian Journal of
Finance and Accounting, Vol. 1 No. 3, pp. 266-294.
Samaha, K., Dahawy, K., Stapleton, P. and Conover, T. (2009), “Progressing Egypt towards
convergence with IFRS: an agenda for future research”, Journal of Current Research in
Global Business, Vol. 12 No. 18, pp. 54-65.
Santos, E.S., Ponte, V. and Mapurunga, P.V.R. (2014), “Mandatory IFRS adoption in Brazil (2010):
index of compliance with disclosure requirements and explanatory factors of firms
reporting”, Revista Contabilidade & Finanças, Vol. 25 No. 65, pp. 161-176, available at:
www.scielo.br/pdf/rcf/v25n65/en_1519-7077-rcf-25-65-0161.pdf
Saudagaran, S.M. and Diga, J.G. (1997), “Financial reporting in developing capital markets:
characteristics and policy issues”, Accounting Horizons, Vol. 11 No. 2, pp. 41-64.
JAEE Scott, G.M., Enthoven, A.J.H., Jain, T., Most, K.S., Said, K.E. and Sycip, W. (1976), “Report of the
committee on accounting in developing countries”, The Accounting Review, Vol. 51 No. 4,
6,1 pp. 198-212.
Soderstrom, N.S. and Sun, K.J. (2007), “IFRS adoption and accounting quality: a review”,
European Accounting Review, Vol. 16 No. 4, pp. 675-702.
Spence, M. (1973), “Job market signalling”, Quarterly Journal of Economics, Vol. 87 No. 3,
48 pp. 355-379.
Taplin, R.H., Tower, G. and Hancock, P. (2002), “Disclosure (discernibility) and compliance of
accounting policies: Asia pacific evidence”, Accounting Forum, Vol. 26 No. 2, pp. 172-190.
Tay, J.S.W. and Parker, R.H. (1990), “Measuring international harmonization and
standardization”, Abacus, Vol. 26 No. 1, pp. 71-88.
Taylor, P. and Turley, S. (1986), The Regulation of Accounting, Basil Blackwell, Oxford.
Türel, A. (2009), “The value relevance of IFRS: the case of Turkey”, Economica, Vol. 5 No. 1,
pp. 119-128.
Downloaded by 190.60.213.162 At 13:47 28 August 2017 (PT)
Tweedie, D. and Seidenstein, T. (2005), “Setting a global standard: the case for accounting
convergence”, Northwestern Journal of International Law and Business, Vol. 25 No. 3,
pp. 589-608.
Walker, R.G. (1987), “Australia’s ASRB: a case study of political activity and regulatory
‘capture’ ”, Accounting and Business Research, Vol. 17 No. 67, pp. 269-286.
Watts, R. and Zimmerman, J. (1986), Positive Accounting Theory, Prentice-Hall Inc., Englewood
Cliff, NJ.
Watts, R. and Zimmerman, J. (1990), “Positive accounting theory: a ten year perspective”,
The Accounting Review, Vol. 65 No. 1, pp. 131-156.
Zeff, S.A. (1988), “Setting accounting standards: some lessons from the US experience”,
The Accountant’s Magazine, Vol. 92 No. 1, pp. 20-22.
Zeghal, D. and Mhedhbi, K. (2006), “An analysis of the factors affecting the adoption of
international accounting standards by developing countries”, The International Journal of
Accounting, Vol. 41 No. 4, pp. 373-393.
Zhou, H., Xiong, Y. and Ganguli, G. (2009), “Does the adoption of international financial reporting
standards restrain earnings management? Evidence from an developing market”, Academy
of Accounting and Financial Studies Journal, Vol. 13, pp. 43-56.
Further reading
Dumontier, P. and Raffournier, B. (1998), “Why firms comply voluntarily with IAS: an empirical
analysis with Swiss data”, Journal of International Financial Management and Accounting,
Vol. 9 No. 3, pp. 216-245.
Healy, P.M. and Palepu, K.G. (2003), “The fall of enron”, Journal of Economic Perspectives, Vol. 17
No. 3, pp. 3-26.
Masel, L. (1983), “The future of accounting and auditing standards”, Australian Accountant,
Vol. 53 No. 8, pp. 541-549.
Murphy, A.B. (1999), “Firm characteristics of Swiss companies that utilize international
accounting standards”, The International Journal of Accounting, Vol. 34 No. 1, pp. 121-131.
Nobes, C.W. and Parker, R. (2002), Comparative International Accounting, 7th ed., Prentice-Hall and
Pearson Education Limited, London.
Peavey, D.E. and Webster, S.K. (1990), “Is GAAP the GAP to international markets?”,
Management Accounting, Vol. 72 No. 2, pp. 31-35.
Samaha, K. (2005), “International accounting standards in an developing capital market: a study of IFRS in
compliance and factors explaining compliance in listed Egyptian companies”, unpublished
PhD thesis, Manchester Business School, University of Manchester, Manchester.
developing
Street, D.L. and Bryant, S.M. (2000), “Disclosure level and compliance with IASs: a comparison of
countries
companies with and without US listings and filings”, The International Journal of
Accounting, Vol. 35 No. 3, pp. 305-329.
Street, D.L. and Gray, S.J. (2002), “Factors influencing the extent of corporate compliance with 49
international accounting standards: summary of a research monograph”, Journal of
International Accounting, Auditing and Taxation, Vol. 11 No. 1, pp. 51-76.
excellences in teaching awards and recently in 2012; he was awarded the AUC excellence in
teaching award. He has developed and updated several accounting courses in the new accounting
curriculum that is effective September 2009 at the American University in Cairo. Samaha is a
Certified Public Accountant (CPA) from the Egyptian Society for Accountants and Auditors
(ESAA), and is certified by the Egyptian Accounting Syndicate and the Egyptian Financial
Supervisory Authority (EFSA). He is also a Member of the American Accounting Association
(AAA), European Accounting Association (EAA) and a Fellow of the Egyptian Institute for
Public Finance and Taxes. He has extensive practical experience in the application of
International Financial Reporting Standards (IFRSs) and has recently published four papers
about convergence with IASs/IFRSs in Egypt. Samaha is currently serving as an Audit
Consultant to several companies listed on the Egyptian Stock Exchange (EGX), as well as the
Ministry of Transport. He has also served as a consultant in many missions with the World Bank
and the Bi-National Fulbright Commission (The Commission for Educational and Cultural
Exchange between the USA and Egypt). Currently, he is serving as an Audit Consultant on a
project with the Egyptian Ministry of Transport (MOT) and the government of the Italian
Republic on restructuring the Egyptian National Railways (ENR). Samaha has several papers
that are published in academic accounting journals, and are presented in academic and
practitioners conferences. He has published in the International Journal of Auditing, Journal of
International Accounting, Auditing and Taxation, International Journal of Accounting, Auditing
and Performance Evaluation, Managerial Auditing Journal, Advances in Accounting, Journal of
Applied Accounting Research, International Journal of Accounting and Information Management,
Journal of Accounting in Emerging Economies, Research in Accounting in Emerging Economies,
Corporate Ownership and Control, Corporate Governance: The International Journal of Business
in Society, International Journal of Disclosure and Governance, Afro Asian Journal of Finance
and Accounting, Journal of Current Research in Global Business, International Journal of
Accounting and Finance, and the International Journal of Management and Decision Making.
He is currently serving as a member on the editorial board of the Afro Asian Journal of Finance &
Accounting that is published by Inderscience (www.inderscience.com/browse/index.php?
journalCODE¼aajfa) – UK. Dr Khaled Samaha is the corresponding author and can be
contacted at: ksamaha@aucegypt.edu
Hichem Khlif (PhD) is an Associate Professor at the University of Economic Sciences and
Management of Mahdia, Tunisia. His research focus is on the determinants of accounting
disclosure and meta-analysis.
For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: permissions@emeraldinsight.com
This article has been cited by:
1. Khaldoon Al-Htaybat. 2017. IFRS Adoption in Emerging Markets: The Case of Jordan. Australian
Accounting Review 12. . [Crossref]
Downloaded by 190.60.213.162 At 13:47 28 August 2017 (PT)