'Shopping Around' for Accounting Practices: The Financial Statement Presentation of French Groups

24 Pages Posted: 7 Aug 2003

See all articles by Yuan Ding

Yuan Ding

China Europe International Business School (CEIBS)

Michael Tenenhaus

HEC Paris - Economics & Decision Sciences

Hervé Stolowy

HEC Paris - Accounting and Management Control Department

Abstract

This article illustrates the progressive move away from traditional accounting practices through a study of the presentation of financial statements. Based on a sample of one hundred large French industrial and commercial groups over a ten-year period, and applying a logistic regression method, our survey confirms a trend among French companies, which are increasingly turning their backs on traditional national practices as regards the balance sheet format, the income statement format, the voluntary disclosure of a statement of changes in shareholders' equity and the cash flow statement format. This move towards "alternative" practices is made possible by the flexibility of French regulation, and can probably be explained by the desire of French firms to attract more investment on international capital markets. However, this trend shows no signs of a clear orientation towards any particular accounting model (IAS, U.S. or U.K.). The behaviour of the French firms observed in our study can be considered as a kind of "shopping around" for accounting practices.

Keywords: financial statements, harmonization, IASB, standardization

JEL Classification: M41, M44, M45, M47

Suggested Citation

Ding, Yuan and Tenenhaus, Michael and Stolowy, Hervé, 'Shopping Around' for Accounting Practices: The Financial Statement Presentation of French Groups. Abacus, Vol. 39, No. 1, pp. 42-65, 2003. Available at SSRN: https://ssrn.com/abstract=408283

Yuan Ding

China Europe International Business School (CEIBS) ( email )

699, Hongfeng Road
Shanghai 201206, Shanghai 201206
China

Michael Tenenhaus

HEC Paris - Economics & Decision Sciences ( email )

Paris
France

Hervé Stolowy (Contact Author)

HEC Paris - Accounting and Management Control Department ( email )

Jouy-en-Josas Cedex
France
+33 1 39 67 94 42 (Phone)
+33 1 39 67 70 86 (Fax)

HOME PAGE: http://www.hec.fr/stolowy

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