Why choosing IFRS? Benefits of voluntary ...
Document type :
Article dans une revue scientifique
Title :
Why choosing IFRS? Benefits of voluntary adoption by European private companies
Author(s) :
Bertrand, Jérémie [Auteur]
de Brebisson, Hélène [Auteur]
Burietz, Aurore [Auteur]
Lille économie management - UMR 9221 [LEM]
de Brebisson, Hélène [Auteur]
Burietz, Aurore [Auteur]
Lille économie management - UMR 9221 [LEM]
Journal title :
International Review of Law and Economics
Pages :
105968
Publisher :
Elsevier [1981-....]
Publication date :
2021-03
ISSN :
0144-8188
English keyword(s) :
IFRS
Bank debt
Non-listed entities
Bank debt
Non-listed entities
HAL domain(s) :
Sciences de l'Homme et Société/Gestion et management
English abstract : [en]
In 2005, International Financial Reporting Standards (IFRS) have been legally adopted by listed firms to facilitate the harmonization of accounting practices. However, IFRS remain an option for non-listed firms in some ...
Show more >In 2005, International Financial Reporting Standards (IFRS) have been legally adopted by listed firms to facilitate the harmonization of accounting practices. However, IFRS remain an option for non-listed firms in some countries. We investigate whether European privately held firms can raise more debt when they voluntarily report their consolidated financial information according to IFRS rather than local accounting rules. Using fixed effects regressions on 8391 firms in 22 European Union (EU) countries from 2005–2018, we document that IFRS adoption leads to more private debt issue for non-listed firms. This accounting option could be particularly useful for opaque firms or firms located in common law countries. Our results contribute to the debate on European accounting policy for non-listed firms.Show less >
Show more >In 2005, International Financial Reporting Standards (IFRS) have been legally adopted by listed firms to facilitate the harmonization of accounting practices. However, IFRS remain an option for non-listed firms in some countries. We investigate whether European privately held firms can raise more debt when they voluntarily report their consolidated financial information according to IFRS rather than local accounting rules. Using fixed effects regressions on 8391 firms in 22 European Union (EU) countries from 2005–2018, we document that IFRS adoption leads to more private debt issue for non-listed firms. This accounting option could be particularly useful for opaque firms or firms located in common law countries. Our results contribute to the debate on European accounting policy for non-listed firms.Show less >
Language :
Anglais
Peer reviewed article :
Oui
Audience :
Internationale
Popular science :
Non
Collections :
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