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PurposeThe purpose of this paper is to analyze the consequences of using international accounting standards (IAS/IFRS) for the development of capital markets located in developing countries (emerging capital markets).Design/methodology/approachThe authors conduct an empirical study using a sample of 38 developing countries with capital markets, starting by comparing the means of the different measures studied before and after the use of IAS/IFRS. A multivariate statistical analysis is conducted based on the estimation of a model of panel data with fixed effects.FindingsThe results show that the development of the emerging capital markets is positively and significantly associated with the use of international accounting standards.Practical implicationsThe paper's findings are of interest to several different parties, primarily the national accounting standardization body, the IASB, many international organizations and international investors.Originality/valueThe paper describes an empirical study, conducted on a group of developing countries, which provides a better understanding of the potential consequences of the use of IASB standards. The paper is also a meaningful contribution to the international accounting literature, as it examines an interesting subject that has not yet been investigated.

Purpose The purpose of this paper is to examine empirically the association between the adoption of international accounting standards (IAS/IFRS) and the performance of emerging capital markets. Design/methodology/approach Data related to 31 developing countries with capital markets were used. The authors performed univariate analyses (means comparison before and after the use of IAS/IFRS), as well as multivariate analyses (estimation of models of panel data), to test the hypothetical relations set up in the paper. Findings The results suggest that the performance of emerging capital markets is significantly and positively associated with IAS/IFRS use. They are consistent with several empirical investigations which highlighted the relevance of financial information under IAS/IFRS in emerging capital markets. Practical implications Several organizations and decision-makers including the IASB, governments, capital markets regulators and international investors should find the policy implications of this paper very meaningful. Originality/value To the best of the authors’ knowledge, the relationship between the use of IAS/IFRS and the performance of emerging capital markets based on a group of countries has not yet been explored.

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The research problem: This study investigates whether the adoption of the International Financial Reporting Standard (IFRS) for small- and medium-sized entities (SMEs) is linked to national culture. Motivation or theoretical reasoning: Little is known about the role of cultural dimensions in explaining countries’ adoption of the IFRS for SMEs. Focusing on this topic could contribute to a better understanding of the adoption of the IFRS for SMEs and would enrich the international accounting literature. Conducting a specific empirical investigation into the IFRS for SMEs is motivated by the difference between the full IFRS and the IFRS for SMEs, by the inherent characteristics of SMEs, and by differences between the number of countries that adopted the full IFRS and those that have adopted the IFRS for SMEs. The test hypotheses: We used Hofstede’s dimensions of national culture (Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long-term Orientation, and Indulgence) to capture a country’s culture. We expected that these six dimensions would play a crucial role in countries’ decision to adopt the IFRS for SMEs. Based on previous relevant studies, we developed a research hypothesis for each of the mentioned cultural dimensions. Target population: We selected the 101 countries included in Hofstede’s study. For each country, we looked at the data available on the IFRS website to identify its position in relation to the IFRS for SMEs. The final sample included 97 countries. Adopted methodology: After classifying countries in three groups (Non-Adopters, Voluntary Adopters, and Mandatory Adopters), we performed several statistical regressions with adoption of the IFRS for SMEs as the dependent variable and the cultural dimensions as the relevant independent variables. Analyses: Among others, we used several logistic regressions to estimate the association between national culture and the use of the IFRS for SMEs. We initially performed a statistical estimation for each of the six dimensions of national culture. Then, we included all cultural dimensions simultaneously. Finally, we performed robustness tests by applying multinomial regressions and focusing on the group of full IFRS adopters. Findings: Empirical results revealed that the adoption of the IFRS for SMEs was less likely in countries with the highest levels of individualism. This conclusion held for both Mandatory and Voluntary Adopters. In contrast, the other dimensions of national culture were not significant in explaining the adoption of the IFRS for SMEs by national accounting regulators.