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.