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The preparedness of companies to adopt International Financial Reporting Standards: Portuguese evidence

2007; Taylor & Francis; Volume: 32; Issue: 1 Linguagem: Inglês

10.1016/j.accfor.2007.11.001

1467-6303

Marta Silva Guerreiro, Lúcia Lima Rodrigues, Russell Craig,

Accounting Theory and Financial Reporting

This paper uses ordinal regression, structural equation modelling, and multivariate analysis techniques to investigate the preparedness to adopt IFRS that was exhibited by listed Portuguese companies in August 2003. We find the level of preparedness was significantly associated with company size, commercial internationalization, audit by a 'Big 4' accounting firm, and profitability. Our findings will help to indicate the pre-conditions that are likely to spur lagging companies (and countries) to prepare to implement IFRS.