An Investigation of Compliance With International Accounting Standards by Listed Companies in the Gulf Co-Operation Council Member States

49 Pages Posted: 16 Feb 2007

See all articles by Bader Al-Shammari

Bader Al-Shammari

Public Authority for Applied Education and Training (PAAET)

Philip R. Brown

UWA Business School, M250; Financial Research Network (FIRN)

Ann Tarca

University of Western Australia

Date Written: January 24, 2007

Abstract

This study investigates the extent of compliance with international accounting standards (IASs) by companies in the Gulf Co-Operation Council (GCC) member states (Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates). Based on a sample of 137 companies (436 company-years) we found that compliance increased over time, from 68% in 1996 to 82% in 2002. There was significant variation in compliance among the six countries and between companies based on size, leverage, internationality and industry. Non-compliance was greater than that observed in developed countries and reflected limited monitoring and enforcement by the bodies responsible for overseeing financial reporting and limited comprehensiveness of audits by external auditors.

Keywords: International Accounting Standards (IAS), compliance, audit, enforcement, Gulf Co-Operation Council (GCC) member states

JEL Classification: K22, M41, M44, M47, M49

Suggested Citation

Al-Shammari, Bader and Brown, Philip R. and Tarca, Ann, An Investigation of Compliance With International Accounting Standards by Listed Companies in the Gulf Co-Operation Council Member States (January 24, 2007). Available at SSRN: https://ssrn.com/abstract=963574 or http://dx.doi.org/10.2139/ssrn.963574

Bader Al-Shammari

Public Authority for Applied Education and Training (PAAET) ( email )

P.O.Box 43197
Hawally, AK 32046
Kuwait
+9656517710 (Phone)
+9654860420 (Fax)

Philip R. Brown

UWA Business School, M250 ( email )

Crawley, Western Australia 6009
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Ann Tarca (Contact Author)

University of Western Australia ( email )

Business School
35 Stirling Highway
Crawley WA 6009
Australia
+61 8 6488 3868 (Phone)
+61 8 6488 1047 (Fax)

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