An Institutional Analysis of IFRS Adoption in Poor Jurisdictions
The last two decades witnessed a movement towards
harmonization of international financial reporting standards (IFRS)
throughout the global economy. This investigation seeks to identify
the factors that could explain the adoption of IFRS by poor
jurisdictions. While there has been a considerable amount of
literature published on the effects and key drivers of IFRS adoption
in both developed and developing countries, little attention has been
paid to jurisdictions with less developed capital markets and low
income levels exclusively. Drawing upon the Institutional Isomorphism theory and analyzing
a sample of 45 poor jurisdictions between 2008 and 2013, the study
empirically shows that poor jurisdictions are driven by legitimacy
concerns rather than by economic reasoning to adopt an international
accounting perspective. This in turn has implications for the IASB, as
it should seek to influence institutional pressures within a particular
jurisdiction in order to promote IFRS adoption.
[1] Pownall, G., & Schipper, K. (1999). Implications of accounting research
for the SEC's consideration of international accounting standards for
U.S. securities offerings. Accounting Horizons, Vol.13, No.3, 259-280.
[2] Rees, W. A., & Weisbach, M. S. (2002). Protection of minority
shareholder interests,cross-listings in the United States, and subsequent
equity offerings. Journal of Financial Economic, Vol.66, 65-104.
[3] Barth, M. (2008). Global financial reporting: Implications for U.S.
Academics. The Accounting Review, Vol.83, No.5, 1159-1179.
[4] Daske, H., Hail, L., Leuz, C., & Verdi, R. (2008). Mandatory IFRS
Reporting Around the World:Early evidence on the economic
consequences . Journal of Accounting Research,Vol.46, No.5, 1085-
1142.
[5] Wang, K., & Smith, L. M. (2009). How different GAAPs affect
performance of valuation models: Evidence from Asia-based companies.
Advances in Accounting, Vol.25, No.2, 284-294.
[6] Smith, L. M. (2012). IFRS and U.S. GAAP: Some key differences
accountants should know. Management Accounting Quarterly,Vol.14,
No.1, 19-26.
[7] Reineking, C., Chamberlain, D., Rudolph, H., & Smith, L. M. (2013).
An examination of inventory costing convergence under generally
accepted accounting principles and International Financial Reporting
Standards. Journal of International Business Research, Vol.13, No.2, 17-
32.
[8] Ding, Y., Hope, O., Jeanjean, T., & Stolowy, H. (2007). Differences
between domestic accounting standards and IAS: Measurement,
determinants and implications. Journal of Accounting and Public Policy,
Vol.26, 1-38.
[9] Barth, M., Landsman, W., & Lang, M. (2008). International Accounting
Standards and Accounting Quality. Journal of Accounting Research,
Vol.46, No.3, 467-498.
[10] Belkaoui, A. (1983). Economic, political, and civil indicators and
reporting and disclosure adequacy: Empirical investigation. Journal of
Accounting and Public Policy, Vol.2, No.3, 207-219.
[11] Belkaoui, A. (1996). Political, financial and economic risks and
accounting disclosure requirements of global stock exchanges. Research
in Accounting Regulation, Vol.10, 179-191.
[12] Belkaoui, A. (2004). Politically-connected firms: Are they connected to
earnings opacity? Research in Accounting Regulation, Vol.17, 25–38.
[13] Ali, M. J., & Ahmed, K. (2006). The legal and institutional framework
forcorporate financial reporting practices in South Asia. Research in
Accounting Regulation, Vol.19, 175-205.
[14] Ali, M., Ahmed, K., & Henry, D. (2006). Harmonization of Accounting
Measurement Practices in South Asia. Advances in International
Accounting, Vol.19, 25-58.
[15] Ball, R. (2006). International Financial Reporting Standards (IFRS):
Pros and cons for investors. Accounting and Business Research, Vol.36,
5-27.
[16] Ezzamel, M., Xiao, J. Z., & Pan, A. (2007). Political ideology and
accounting regulation in China. Accounting, Organizations and Society,
Vol. 32, No.7, 669-700.
[17] Hasan, T., Karim, W., & Quayes, S. (2008). Regulatory change and the
quality of compliance to mandatory disclosure requirements: Evidence
from Bangladesh. Research in Accounting Regulation, Vol.20, 193-203.
[18] Ernstberger, J., Stich, M., & Vogler, O. (2010). Economic Consequences
of Accounting Enforcement Reforms: The Case of Germany. European
Accounting Review, Vol.21, No.2, 217-251.
[19] Hail, L., Leuz, C., & Wysocki, P. (2010). Global Accounting
Convergence and the Potential Adoption of IFRS by the U.S. (Part II):
Political Factors and Future Scenarios for U.S. Accounting Standards.
Accounting Horizons, Vol.24, No.4, 567-588.
[20] Al-Akra, M., Eddie, I., & Ali, M. (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, 170-186.
[21] Alexander, D., & Servalli, S. (2010). The State and/of Accounting
Regulation. Paper presented at 6th Accounting History International
Conference, (pp. 18-20). Wellington, New Zealand.
[22] Alexander, D., & Micallef, M. (2011). Accounting Regulation in Malta.
Accounting in Europe, Vol.8, No.1, 1-21.
[23] Hitz, J., Ernstberger, J., & Stich, M. (2012). Enforcement of Accounting
Standards in Europe: Capital Market Based Evidence for the Two-tier
Mechanism in Germany. European Accounting Review, Vol.21, No.2,
253-281. [24] Dalton, D., Buchheit, S., Oler, D., & Zhou, M. (2013). Enforcement
Mechanisms for SEC Reporting Deadlines. Research in Accounting
Regulation, Vol.25, No.2, 185-195.
[25] Huertaa, E., Petridesb, Y., & Brauna, G. (2013). Translation of IFRS:
Language as a barrier to comparability. Research in Accounting
Regulation, Vol.25, No.1, 1-12.
[26] Zeghal, D., & Mhedhbi, K. (2006). An analysis of the factors affecting
the adoption of international accounting standards by developing
countries. The International Journal of Accounting, 373-386.
[27] Nobes, C., & Parker, R. (2008). Comparative International Accounting
(10 ed.). London: Prentice Hall, pp. 128-135.
[28] Roberts, C., Weetman, P., & Gordon, P. (2002). International Financial
Accounting (2 ed.). Essex: Prentice Hall, pp. 77-112.
[29] DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited:
Institutional Isomorphism and Collective Rationality in Organizational
Fields. American Sociological Review, Vol.48, No.2, 147-160.
[30] Judge, W., Li, S., & Pinsker, R. (2010). National Adoption of
International Accounting Standards: An Institutional Perspective.
Corporate Governance: An International Review, Vol.18, No.3, 161-
174.
[31] North, D. (1990). Institutions, institutional change, and economic
performance. New York : Cambridge University Press, pp. 34-42.
[32] Scott, W. R. (2001). Institutions and organizations (2nd ed). Thousand
Oaks, CA: Sage, pp. 73-82.
[33] Taylor, M. E., Evans, T. G., & Joy, A. C. (1986). The impact of IASC
accounting standards on comparability and consistency of international
reporting practices. International Journal of Accounting Education and
Research, Vol. 22, No. 1, 1-9.
[34] Peavy, D. E., & Webster, S. K. (1990). Is GAAP the gap to international
market? Management Accounting, Vol.72, 31-35.
[35] Talaga, J. A., & Ndubizu, G. (1986). Accounting and economic
development: relationships among paradigms. International Journal of
Accounting Education and Research, Vol.21, No.2, 55−68.
[36] Unerman, J. (2003). Enhancing Organizational Global Hegemony with
Narrative Accounting Disclosures: An Early Example. Accounting
Forum, Vol.27, No.4, 425-448.
[37] Mir, M. R. (2005). The adoption of international accounting standards in
Bangladesh. Accounting, Auditing & Accountability Journal, Vol.18,
No.6, 816-841.
[38] Larson, R., & Kenny, S. (1995). An Empirical Analysis of International
Accounting Standards, Equity Markets, and Economic Growth in
Developing Countries. Journal of International Financial Management
& Accounting, Vol.6, No.2, 130-157.
[39] Hossain, M., Tan, L. M., & Adams, M. (1994). Voluntary Disclosure in
an Emerging Capital Market: Some Empirical Evidence from
Companies Listed on the Kuala Lumpur Stock Exchange. The
international journal of accounting : TIJA, Vol.29, No.4, 334-351.
[40] Street, D. G., & Bryant, S. (1999). Acceptance and Observance of
International Accounting Standards: An Empirical Study of Companies
Claiming to Comply with IASs. The International Journal of
Accounting, Vol.34, No.1, 11-48.
[41] Street, D., & Gray, S. (2001). Observance of international accounting
standards : factors explaining non-compliance. ACCA research report,
Vol. 74.
[42] Dahawy, K., & Conover, T. (2007). Accounting disclosure in companies
listed on the Egyptian stock exchange. Middle Eastern Finance and
Economics, Vol.1, 5-20.
[43] La Porta, R., López-de-Silanes, F., Shleifer, A., & Vishny, R. (1998).
Law and Finance. The Journal of Political Economy, Vol.106, No.6,
1113-1155.
[44] Ball, R., Robin, A., & Kothari, S. (2000). The effect of international
institutional factors on properties of accounting earnings. Journal of
Accounting and Economics, Vol.29, No.1, 1-51.
[45] Ball, R., Robin, A., & Wu, J. (2003). Incentives versus standards:
properties of accounting income in four East Asian countries. Journal of
Accounting and Economics, Vol.36, 235-270.
[46] Lasmin. (2011). An Institutional Perspective on International Financial
Reporting Standards Adoption in Developing Countries. Academy of
Accounting and Financial Studies Journal, Vol.15, 61-70.
[47] Roberts, C., Weetman, P., Gordon, P., & Gordon, P. (2008).
International Corporate Reporting: A Comparative Approach. New
York: Pearson Education, pp. 83- 110.
[48] Meyer, J. W., & Rowan, B. (1977). Institutionalized organization:
Formal structure as myth and ceremony. American Journal of Sociology,
Vol.83, No.2 , 340–363.
[49] DiMaggio, P., & Powell, W. (1991). The New Institutionalism in
Organizational Analysis. University Of Chicago Press, pp. 10-123.
[50] Rodrigues, L., & Craig, R. (2007). Assessing international accounting
harmonization using Hegelian dialectic, isomorphism and Foucault.
Critical Perspectives on Accounting, Vol.18, No.6, 739-757.
[51] Touron, P. (2005). The adoption of US GAAP by French firms before
the creation of the International Accounting Standard Committee: an
institutional explanation. Critical Perspectives on Accounting, Vol.16,
No.6, 851–873.
[52] Ashraf, J., & Ghani, W. (2005). Accounting development in Pakistan.
International Journal of Accounting, Vol. 40, No.2, 175-201.
[53] Guler, I., Guillen, M., & Macpherson, J. (2002). Global Competition,
Institutions, and the Diffusion of Organizational Practices: The
International Spread of ISO 9000 Quality Certificates. Administrative
Science Quarterly, Vol.47, No.2, 207-232.
[54] Turner, B. (1993). Talcott Parsons, universalism, and the educational
revolution: Democracy versus Professionalism. The British Journal of
Sociology, Vol.44, No.1, 1-24.
[55] PwC. (2013). IFRS adoption by country. Retreived 03 27, 2015, from
http://www.pwc.com/us/en/issues/ifrs-reporting/publications/ifrs-statuscountry.
html
[56] Delloitte. (2014). IAS Plus. Retreived 03 27, 2015, from
http://www.iasplus.com/en
[57] Simon Fraser University. (2014). Retreived 04 18, 2015, from Adopt
IFRS: http://www.adoptifrs.org/
[58] WB. (2014). Reports on the Observance of Standards and Codes
(ROSC). Retrieved 01 14, 2015, from
http://www.worldbank.org/ifa/rosc.html
[59] Kaufmann, D., Kraay, A., & Mastruzzi, M. (2014). World Governance
Indicators. World Bank.
[60] WB. (2015). World Development Indicators. Retrieved 01 14,
2015,http://data.worldbank.org/data-catalog/world-developmentindicators
[61] WB. (2015). World Bank classification - Country and Lending Groups.
Retrieved 01 10, 2015, from http://data.worldbank.org/about/countryand-
lending-groups
[62] Schipper, K. (2003). Principles‐Based Accounting Standards.
Accounting Horizons, Vol.17, No.1, 61-72.
[63] CIA. (2015). The World Factbook. Retrieved 02 14, 2015, from Central
Intelligence Agency: https://www.cia.gov/library/publications/theworld-
factbook/fields/2100.html.
[1] Pownall, G., & Schipper, K. (1999). Implications of accounting research
for the SEC's consideration of international accounting standards for
U.S. securities offerings. Accounting Horizons, Vol.13, No.3, 259-280.
[2] Rees, W. A., & Weisbach, M. S. (2002). Protection of minority
shareholder interests,cross-listings in the United States, and subsequent
equity offerings. Journal of Financial Economic, Vol.66, 65-104.
[3] Barth, M. (2008). Global financial reporting: Implications for U.S.
Academics. The Accounting Review, Vol.83, No.5, 1159-1179.
[4] Daske, H., Hail, L., Leuz, C., & Verdi, R. (2008). Mandatory IFRS
Reporting Around the World:Early evidence on the economic
consequences . Journal of Accounting Research,Vol.46, No.5, 1085-
1142.
[5] Wang, K., & Smith, L. M. (2009). How different GAAPs affect
performance of valuation models: Evidence from Asia-based companies.
Advances in Accounting, Vol.25, No.2, 284-294.
[6] Smith, L. M. (2012). IFRS and U.S. GAAP: Some key differences
accountants should know. Management Accounting Quarterly,Vol.14,
No.1, 19-26.
[7] Reineking, C., Chamberlain, D., Rudolph, H., & Smith, L. M. (2013).
An examination of inventory costing convergence under generally
accepted accounting principles and International Financial Reporting
Standards. Journal of International Business Research, Vol.13, No.2, 17-
32.
[8] Ding, Y., Hope, O., Jeanjean, T., & Stolowy, H. (2007). Differences
between domestic accounting standards and IAS: Measurement,
determinants and implications. Journal of Accounting and Public Policy,
Vol.26, 1-38.
[9] Barth, M., Landsman, W., & Lang, M. (2008). International Accounting
Standards and Accounting Quality. Journal of Accounting Research,
Vol.46, No.3, 467-498.
[10] Belkaoui, A. (1983). Economic, political, and civil indicators and
reporting and disclosure adequacy: Empirical investigation. Journal of
Accounting and Public Policy, Vol.2, No.3, 207-219.
[11] Belkaoui, A. (1996). Political, financial and economic risks and
accounting disclosure requirements of global stock exchanges. Research
in Accounting Regulation, Vol.10, 179-191.
[12] Belkaoui, A. (2004). Politically-connected firms: Are they connected to
earnings opacity? Research in Accounting Regulation, Vol.17, 25–38.
[13] Ali, M. J., & Ahmed, K. (2006). The legal and institutional framework
forcorporate financial reporting practices in South Asia. Research in
Accounting Regulation, Vol.19, 175-205.
[14] Ali, M., Ahmed, K., & Henry, D. (2006). Harmonization of Accounting
Measurement Practices in South Asia. Advances in International
Accounting, Vol.19, 25-58.
[15] Ball, R. (2006). International Financial Reporting Standards (IFRS):
Pros and cons for investors. Accounting and Business Research, Vol.36,
5-27.
[16] Ezzamel, M., Xiao, J. Z., & Pan, A. (2007). Political ideology and
accounting regulation in China. Accounting, Organizations and Society,
Vol. 32, No.7, 669-700.
[17] Hasan, T., Karim, W., & Quayes, S. (2008). Regulatory change and the
quality of compliance to mandatory disclosure requirements: Evidence
from Bangladesh. Research in Accounting Regulation, Vol.20, 193-203.
[18] Ernstberger, J., Stich, M., & Vogler, O. (2010). Economic Consequences
of Accounting Enforcement Reforms: The Case of Germany. European
Accounting Review, Vol.21, No.2, 217-251.
[19] Hail, L., Leuz, C., & Wysocki, P. (2010). Global Accounting
Convergence and the Potential Adoption of IFRS by the U.S. (Part II):
Political Factors and Future Scenarios for U.S. Accounting Standards.
Accounting Horizons, Vol.24, No.4, 567-588.
[20] Al-Akra, M., Eddie, I., & Ali, M. (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, 170-186.
[21] Alexander, D., & Servalli, S. (2010). The State and/of Accounting
Regulation. Paper presented at 6th Accounting History International
Conference, (pp. 18-20). Wellington, New Zealand.
[22] Alexander, D., & Micallef, M. (2011). Accounting Regulation in Malta.
Accounting in Europe, Vol.8, No.1, 1-21.
[23] Hitz, J., Ernstberger, J., & Stich, M. (2012). Enforcement of Accounting
Standards in Europe: Capital Market Based Evidence for the Two-tier
Mechanism in Germany. European Accounting Review, Vol.21, No.2,
253-281. [24] Dalton, D., Buchheit, S., Oler, D., & Zhou, M. (2013). Enforcement
Mechanisms for SEC Reporting Deadlines. Research in Accounting
Regulation, Vol.25, No.2, 185-195.
[25] Huertaa, E., Petridesb, Y., & Brauna, G. (2013). Translation of IFRS:
Language as a barrier to comparability. Research in Accounting
Regulation, Vol.25, No.1, 1-12.
[26] Zeghal, D., & Mhedhbi, K. (2006). An analysis of the factors affecting
the adoption of international accounting standards by developing
countries. The International Journal of Accounting, 373-386.
[27] Nobes, C., & Parker, R. (2008). Comparative International Accounting
(10 ed.). London: Prentice Hall, pp. 128-135.
[28] Roberts, C., Weetman, P., & Gordon, P. (2002). International Financial
Accounting (2 ed.). Essex: Prentice Hall, pp. 77-112.
[29] DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited:
Institutional Isomorphism and Collective Rationality in Organizational
Fields. American Sociological Review, Vol.48, No.2, 147-160.
[30] Judge, W., Li, S., & Pinsker, R. (2010). National Adoption of
International Accounting Standards: An Institutional Perspective.
Corporate Governance: An International Review, Vol.18, No.3, 161-
174.
[31] North, D. (1990). Institutions, institutional change, and economic
performance. New York : Cambridge University Press, pp. 34-42.
[32] Scott, W. R. (2001). Institutions and organizations (2nd ed). Thousand
Oaks, CA: Sage, pp. 73-82.
[33] Taylor, M. E., Evans, T. G., & Joy, A. C. (1986). The impact of IASC
accounting standards on comparability and consistency of international
reporting practices. International Journal of Accounting Education and
Research, Vol. 22, No. 1, 1-9.
[34] Peavy, D. E., & Webster, S. K. (1990). Is GAAP the gap to international
market? Management Accounting, Vol.72, 31-35.
[35] Talaga, J. A., & Ndubizu, G. (1986). Accounting and economic
development: relationships among paradigms. International Journal of
Accounting Education and Research, Vol.21, No.2, 55−68.
[36] Unerman, J. (2003). Enhancing Organizational Global Hegemony with
Narrative Accounting Disclosures: An Early Example. Accounting
Forum, Vol.27, No.4, 425-448.
[37] Mir, M. R. (2005). The adoption of international accounting standards in
Bangladesh. Accounting, Auditing & Accountability Journal, Vol.18,
No.6, 816-841.
[38] Larson, R., & Kenny, S. (1995). An Empirical Analysis of International
Accounting Standards, Equity Markets, and Economic Growth in
Developing Countries. Journal of International Financial Management
& Accounting, Vol.6, No.2, 130-157.
[39] Hossain, M., Tan, L. M., & Adams, M. (1994). Voluntary Disclosure in
an Emerging Capital Market: Some Empirical Evidence from
Companies Listed on the Kuala Lumpur Stock Exchange. The
international journal of accounting : TIJA, Vol.29, No.4, 334-351.
[40] Street, D. G., & Bryant, S. (1999). Acceptance and Observance of
International Accounting Standards: An Empirical Study of Companies
Claiming to Comply with IASs. The International Journal of
Accounting, Vol.34, No.1, 11-48.
[41] Street, D., & Gray, S. (2001). Observance of international accounting
standards : factors explaining non-compliance. ACCA research report,
Vol. 74.
[42] Dahawy, K., & Conover, T. (2007). Accounting disclosure in companies
listed on the Egyptian stock exchange. Middle Eastern Finance and
Economics, Vol.1, 5-20.
[43] La Porta, R., López-de-Silanes, F., Shleifer, A., & Vishny, R. (1998).
Law and Finance. The Journal of Political Economy, Vol.106, No.6,
1113-1155.
[44] Ball, R., Robin, A., & Kothari, S. (2000). The effect of international
institutional factors on properties of accounting earnings. Journal of
Accounting and Economics, Vol.29, No.1, 1-51.
[45] Ball, R., Robin, A., & Wu, J. (2003). Incentives versus standards:
properties of accounting income in four East Asian countries. Journal of
Accounting and Economics, Vol.36, 235-270.
[46] Lasmin. (2011). An Institutional Perspective on International Financial
Reporting Standards Adoption in Developing Countries. Academy of
Accounting and Financial Studies Journal, Vol.15, 61-70.
[47] Roberts, C., Weetman, P., Gordon, P., & Gordon, P. (2008).
International Corporate Reporting: A Comparative Approach. New
York: Pearson Education, pp. 83- 110.
[48] Meyer, J. W., & Rowan, B. (1977). Institutionalized organization:
Formal structure as myth and ceremony. American Journal of Sociology,
Vol.83, No.2 , 340–363.
[49] DiMaggio, P., & Powell, W. (1991). The New Institutionalism in
Organizational Analysis. University Of Chicago Press, pp. 10-123.
[50] Rodrigues, L., & Craig, R. (2007). Assessing international accounting
harmonization using Hegelian dialectic, isomorphism and Foucault.
Critical Perspectives on Accounting, Vol.18, No.6, 739-757.
[51] Touron, P. (2005). The adoption of US GAAP by French firms before
the creation of the International Accounting Standard Committee: an
institutional explanation. Critical Perspectives on Accounting, Vol.16,
No.6, 851–873.
[52] Ashraf, J., & Ghani, W. (2005). Accounting development in Pakistan.
International Journal of Accounting, Vol. 40, No.2, 175-201.
[53] Guler, I., Guillen, M., & Macpherson, J. (2002). Global Competition,
Institutions, and the Diffusion of Organizational Practices: The
International Spread of ISO 9000 Quality Certificates. Administrative
Science Quarterly, Vol.47, No.2, 207-232.
[54] Turner, B. (1993). Talcott Parsons, universalism, and the educational
revolution: Democracy versus Professionalism. The British Journal of
Sociology, Vol.44, No.1, 1-24.
[55] PwC. (2013). IFRS adoption by country. Retreived 03 27, 2015, from
http://www.pwc.com/us/en/issues/ifrs-reporting/publications/ifrs-statuscountry.
html
[56] Delloitte. (2014). IAS Plus. Retreived 03 27, 2015, from
http://www.iasplus.com/en
[57] Simon Fraser University. (2014). Retreived 04 18, 2015, from Adopt
IFRS: http://www.adoptifrs.org/
[58] WB. (2014). Reports on the Observance of Standards and Codes
(ROSC). Retrieved 01 14, 2015, from
http://www.worldbank.org/ifa/rosc.html
[59] Kaufmann, D., Kraay, A., & Mastruzzi, M. (2014). World Governance
Indicators. World Bank.
[60] WB. (2015). World Development Indicators. Retrieved 01 14,
2015,http://data.worldbank.org/data-catalog/world-developmentindicators
[61] WB. (2015). World Bank classification - Country and Lending Groups.
Retrieved 01 10, 2015, from http://data.worldbank.org/about/countryand-
lending-groups
[62] Schipper, K. (2003). Principles‐Based Accounting Standards.
Accounting Horizons, Vol.17, No.1, 61-72.
[63] CIA. (2015). The World Factbook. Retrieved 02 14, 2015, from Central
Intelligence Agency: https://www.cia.gov/library/publications/theworld-
factbook/fields/2100.html.
@article{"International Journal of Business, Human and Social Sciences:71253", author = "C. F. Pricope", title = "An Institutional Analysis of IFRS Adoption in Poor Jurisdictions", abstract = "The last two decades witnessed a movement towards
harmonization of international financial reporting standards (IFRS)
throughout the global economy. This investigation seeks to identify
the factors that could explain the adoption of IFRS by poor
jurisdictions. While there has been a considerable amount of
literature published on the effects and key drivers of IFRS adoption
in both developed and developing countries, little attention has been
paid to jurisdictions with less developed capital markets and low
income levels exclusively. Drawing upon the Institutional Isomorphism theory and analyzing
a sample of 45 poor jurisdictions between 2008 and 2013, the study
empirically shows that poor jurisdictions are driven by legitimacy
concerns rather than by economic reasoning to adopt an international
accounting perspective. This in turn has implications for the IASB, as
it should seek to influence institutional pressures within a particular
jurisdiction in order to promote IFRS adoption.", keywords = "IFRS Adoption, isomorphism, poor jurisdictions,
accounting harmonization.", volume = "9", number = "11", pages = "3771-8", }
