Why Global Accounting Standards Diffuse? An Analysis From the Lenses of Actor-Network Theory

60 Pages Posted: 1 Jun 2022

See all articles by Ana Caria

Ana Caria

University of Minho - School of Economics and Management

Delfina Gomes

University of Minho - School of Economics and Management

Date Written: February 25, 2022

Abstract

This study examines the voluntary adoption of International Financial Reporting Standards (IFRS). It makes a case for the need to move beyond a purely rational behavior and structural conformity due to wider institutional pressure as well as the necessity to incorporate networks of actors, organizational diversity and practice variation into the analysis. Thus, this study aims to contribute to the broad understanding of how and why global standards like the IFRS diffuse, by examining the early and voluntary adoption of IFRS by a Portuguese company – Jerónimo Martins – that adopted IFRS voluntarily in 2000. For the purpose of this study, Actor-Network Theory (ANT), and particularly the concept of translation are useful to study the IFRS adoption as a process of actor-network building. The analysis shows that the adoption of IFRS was not a straightforward one, but rather involved several actors that faced particular challenges while responding to several interessement devices used to enroll them into the new accounting regime. The study highlights the need for further research focusing on the micro-processes surrounding IFRS adoption to better understand how accounting standards are made valuable in local and organizational contexts and the factors involved in their adoption.

Keywords: voluntary adoption, diffusion, IFRS, ANT, Portugal

JEL Classification: M41

Suggested Citation

Caria, Ana and Gomes, Delfina, Why Global Accounting Standards Diffuse? An Analysis From the Lenses of Actor-Network Theory (February 25, 2022). Available at SSRN: https://ssrn.com/abstract=4121183 or http://dx.doi.org/10.2139/ssrn.4121183

Ana Caria (Contact Author)

University of Minho - School of Economics and Management ( email )

Campus Gualtar
Braga, 4710-057
Portugal

Delfina Gomes

University of Minho - School of Economics and Management ( email )

Gualtar
Braga, 4710
Portugal

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