An institutional perspective on the timing of the adoption of accounting standards by large non-financial firms

This research aims to identify the factors which explain the timing of the adoption of new and revised accounting standards by large firms. The investigation uses a mixed methods explanatory sequential quan→QUAL design as part of a pragmatic constructivist methodology. Quantitative (quan) analysis of financial statements for 158 non-financial FTSE 350 firms identifies the timing of the adoption of accounting standards since IFRS became mandatory for these firms in 2005. Findings are that early adoption is relatively unpopular but its extent varies across standards so that IFRS 6: Exploration for and evaluation of mineral assets, IFRS 8: Operating segments and the new consolidation standards were adopted early by a number of firms. Qualitative analysis (QUAL) of interviews with chief financial officers, group financial controllers, auditors and the IASB explores the values and meanings behind decisions whether to adopt a new standard from the mandatory effective date included in the published standard or to adopt early. Findings are that institutional pressures to copy the practices of other firms have an impact on both firms and their auditors and these pressures influence firms to stay in the mainstream by adopting new accounting standards from the mandatory effective dates. Firms may find the motivation to resist these pressures and adopt early if they see an efficiency, economic or strategic benefit in doing so. By including the views of preparers, this research contributes to knowledge of the financial accounting practices of large firms. It also makes a number of contributions to institutional theory inter alia by portraying the institutional environment as a network of relationships and interdependencies, by presenting empirical evidence regarding the existence and interaction of multiple institutional pressures, and by considering how firms use the tactic of escape in order to avoid the requirements of an existing standard by placing themselves in the new regulatory environment containing the new standard.

Name dc:type.qualificationname

phd

Level dc:type.qualificationlevel

doctoral

Grantor dc:publisher.institution

University of Greenwich

Year dc:date.issued

2015

Author dc:creator

• Reilly, Dawn

Advisors dc:contributor.advisor

• Vellam, Iwona
• Catchpowle, Lesley

• HG Finance

Language dc:language

en