Original scientific paper
NATIONAL LEGISLATIVE SYSTEMS AND FOREIGN STANDARDS AND REGULATIONS: THE CASE OF INTERNATIONAL FINANCIAL REPORTING STANDARDS` ADOPTION
Bogdan Dima
Stefana Dima
Nicoleta Claudia Moldovan
Marilen Gabriel Pirtea
Abstract
This study is focused on the linkages between the
legislative families as descriptors of national legislative
systems and International Financial Reporting
Standards (IFRSs) issued by the International
Accounting Standards Board (IASB). We consider
such analysis as a case study for the more general issue
of explaining the preferences of national regulators
in the adoption of foreign norms, rules, standards
and practices. By using a dataset of 162 jurisdictions
and dummy variables designed to capture the
current stage of IFRSs adoption and, respectively, the
taxonomy of their legislative systems, we find that a
full IFRSs adoption is more likely to occur in countries
which have principles-based on legislative monosystems.
In addition, we observe that a strong rule of
law, with an effective mechanism of property rights
reinforcement, as well as the pre-adoption existence
of a pro-growth set of public policies can contribute
to the encouragement of IFRSs adoption.
Keywords
IFRSs adoption; legislative families; rule of law; growth
Hrčak ID:
109112
URI
Publication date:
1.10.2013.
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