Implementation of IFRS in Japan: An Analysis of Voluntary Adoption by Listed Firms

35 Pages Posted: 18 Mar 2020

See all articles by Begoña Giner

Begoña Giner

University of Valencia

Paloma Merello

Faculty of Economics. University of Valencia

Miho Nakamura

Oita University

Francisca Pardo

Universitat de València

Date Written: October 24, 2019

Abstract

Since 2010 Japanese listed firms can voluntarily use international financial reporting standards for their consolidated financial statements. Using financial and non-financial data, we carry out a comprehensive research into the adopters’ determinants. We employ a multi-period logit model that considers every annual decision made along the period 2010-2019. We find that the having outside networks through subsidiaries and a strong internal corporate governance system are key factors. We also confirm a contagion effect. Finally, our results suggest that goodwill is also relevant, since only Japanese accounting standards require annual amortization.

Keywords: IFRS adoption, reporting incentives, internationalization, network effect, contagion effect, mimetic isomorphism, Japan

JEL Classification: G38, M48

Suggested Citation

Giner Inchausti, Begoña and Merello, Paloma and Nakamura, Miho and Pardo, Francisca, Implementation of IFRS in Japan: An Analysis of Voluntary Adoption by Listed Firms (October 24, 2019). Available at SSRN: https://ssrn.com/abstract=3542995 or http://dx.doi.org/10.2139/ssrn.3542995

Begoña Giner Inchausti (Contact Author)

University of Valencia ( email )

Departament de Comptabilitat Edifici Departamental Oriental
E-46022 Valencia
Spain

Paloma Merello

Faculty of Economics. University of Valencia ( email )

Avda Tarongers s/n 46071
Valencia, Valencia 46023
Spain

Miho Nakamura

Oita University ( email )

Oita
Japan

Francisca Pardo

Universitat de València ( email )

Spain

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