Title: Voluntary adoption of IFRS by Tunisian listed firms: analysis of the incentives factors

Authors: Sana Ben Ghodbane

Addresses: Higher Institute of Business and Accountancy of Bizerte, Street Sadek El Jaouani, 7021 Zarzouna Bizerte, Tunisia

Abstract: The harmonisation of accounting standards has made considerable progress in the word within a relatively short period of time (Camfferman and Zeff, 2006). Research examining voluntary adoption of IAS/IFRS is numerous but there none has been made in the Tunisian context. In this study we focus on those studies that are particularly significant. In this respect, emerging economies, aim to play an active role in the convergence process (Ezzamel and Xiao, 2007). The purpose of the paper is to analyse the incentives of voluntary adoption of IFRS by Tunisian firms in their individual financial statement. Prior researches suggest that firms are more likely to adopt IFRS when the ownership is dispersed, foreign sales are important and firms have a high leverage level. In this research, we find that having a foreign ownership, being a subsidiary and having a parent firm preparing its consolidated financial statements according to IFRS motivated practitioners and managers to adopt IFRS voluntary.

Keywords: voluntary adoption; IFRS adoption; International Financial Reporting Standards; determinants; accounting choices; Tunisia; incentives; accounting standards; emerging economies; foreign ownership; subsidiaries; parent firms; consolidated financial statements.

DOI: 10.1504/IJCA.2016.10002489

International Journal of Critical Accounting, 2016 Vol.8 No.5/6, pp.433 - 443

Received: 25 Apr 2016
Accepted: 27 Apr 2016

Published online: 18 Jan 2017 *

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