The role of institutional isomorphism in explaining the voluntary IFRS adoption
Since 2005, International Financial Reporting Standards (IFRS) have been widely used on a mandatory basis worldwide, but some countries are relevant exceptions to this policy. Based on the institutional isomorphism framework, this study examines the reasons why listed companies voluntarily adopt IF...
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| Format: | Article |
| Language: | English |
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Universidad de Murcia
2025-01-01
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| Series: | Revista de Contabilidad: Spanish Accounting Review |
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| Online Access: | https://revistas.um.es/rcsar/article/view/508231 |
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| _version_ | 1841549478870384640 |
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| author | Begoña GIner Paloma Merello Miho Nakamura Francisca Pardo |
| author_facet | Begoña GIner Paloma Merello Miho Nakamura Francisca Pardo |
| author_sort | Begoña GIner |
| collection | DOAJ |
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Since 2005, International Financial Reporting Standards (IFRS) have been widely used on a mandatory basis worldwide, but some countries are relevant exceptions to this policy. Based on the institutional isomorphism framework, this study examines the reasons why listed companies voluntarily adopt IFRS in a very specific environment: Japan. Using financial and non-financial data, we conduct a comprehensive investigation of the determinants of IFRS adoption. We use a multi-period logit model that takes into account all annual decisions made during the period 2013-2018. We confirm that both coercive and normative isomorphism associated with some legislative changes, together with mimetic isomorphism embedded in Japanese culture, lead firms to adopt IFRS rather than Japanese General Accepted Accounting Principles (J-GAAP). These findings suggest that the legitimacy of IFRS makes this set of standards a more appropriate reporting system to deal with the uncertainty associated with the country's openness to the outside world.
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| format | Article |
| id | doaj-art-11554adf1d0c44f198ab51be1d3be205 |
| institution | Kabale University |
| issn | 1138-4891 1988-4672 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Universidad de Murcia |
| record_format | Article |
| series | Revista de Contabilidad: Spanish Accounting Review |
| spelling | doaj-art-11554adf1d0c44f198ab51be1d3be2052025-01-10T13:12:25ZengUniversidad de MurciaRevista de Contabilidad: Spanish Accounting Review1138-48911988-46722025-01-0128110.6018/rcsar.508231The role of institutional isomorphism in explaining the voluntary IFRS adoptionBegoña GIner0https://orcid.org/0000-0002-9958-9008Paloma Merello1https://orcid.org/0000-0001-8240-3003Miho Nakamura2https://orcid.org/0000-0002-1048-3443Francisca Pardo3https://orcid.org/0000-0002-1836-5775University of Valencia, Valencia-SPAINUniversity of Valencia, Valencia-SPAINOita University, Oita-JAPANUniversity of Valencia, Valencia-SPAIN Since 2005, International Financial Reporting Standards (IFRS) have been widely used on a mandatory basis worldwide, but some countries are relevant exceptions to this policy. Based on the institutional isomorphism framework, this study examines the reasons why listed companies voluntarily adopt IFRS in a very specific environment: Japan. Using financial and non-financial data, we conduct a comprehensive investigation of the determinants of IFRS adoption. We use a multi-period logit model that takes into account all annual decisions made during the period 2013-2018. We confirm that both coercive and normative isomorphism associated with some legislative changes, together with mimetic isomorphism embedded in Japanese culture, lead firms to adopt IFRS rather than Japanese General Accepted Accounting Principles (J-GAAP). These findings suggest that the legitimacy of IFRS makes this set of standards a more appropriate reporting system to deal with the uncertainty associated with the country's openness to the outside world. https://revistas.um.es/rcsar/article/view/508231IFRS adoptionInstitutional theoryIsomorphismReporting incentivesJapan |
| spellingShingle | Begoña GIner Paloma Merello Miho Nakamura Francisca Pardo The role of institutional isomorphism in explaining the voluntary IFRS adoption Revista de Contabilidad: Spanish Accounting Review IFRS adoption Institutional theory Isomorphism Reporting incentives Japan |
| title | The role of institutional isomorphism in explaining the voluntary IFRS adoption |
| title_full | The role of institutional isomorphism in explaining the voluntary IFRS adoption |
| title_fullStr | The role of institutional isomorphism in explaining the voluntary IFRS adoption |
| title_full_unstemmed | The role of institutional isomorphism in explaining the voluntary IFRS adoption |
| title_short | The role of institutional isomorphism in explaining the voluntary IFRS adoption |
| title_sort | role of institutional isomorphism in explaining the voluntary ifrs adoption |
| topic | IFRS adoption Institutional theory Isomorphism Reporting incentives Japan |
| url | https://revistas.um.es/rcsar/article/view/508231 |
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