The determinants and effects of the early adoption of IFRS 15:Evidence from a developing country

Abstract

Our study examines the determinants (especially governance and board characteristics) of the early adoption of the International Financial Reporting Standard 15 (IFRS 15) in a developing market-namely, the Egyptian Stock Exchange.Further, our study examines the difference in IFRS 15ʹs effects on the financial statement accounts between the early adopters and the non-early adopters.Based on the Egyptian Stock Exchange (EGX) 100 index, the study uses 79 firmyear observations for the early adoption period (2019-2020).We manually collected data from the Egyptian companies' annual reports and the Thomson Reuters database and analysed them using logistic regression and t-tests.Out of the various examined governance mechanisms, we found that board size significantly negatively affects the early adoption of IFRS 15.In contrast, female directors have a significant positive effect on the early adoption of IFRS 15 in Egypt.Regarding the effects of firm characteristics, we found that firm age, firm size, and financial leverage have significant positive effects on the early adoption of IFRS 15.In contrast, profitability and audit quality have an insignificant effect on the early adoption of IFRS 15.Finally, we found a significant difference in profitability

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 20 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.