Relations between IFRS Adoption and Financial and Non-financial Measures of Economic Entities, Empirical Results from the Selected Countries of Western Europe
Relations between IFRS Adoption and Financial and Non-financial Measures of Economic Entities, Empirical Results from the Selected Countries of Western Europe

Author(s): Marcin Kędzior, Dorota Kędzior
Subject(s): Business Economy / Management, Economic policy, EU-Accession / EU-DEvelopment, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: IFRS adoption; European Union; financial ratios; non-financial ratio; accounting harmonization;
Summary/Abstract: The aim of the article was to analyze the relationship between the application of IFRS by economic entities and financial and non-financial measures of enterprises in the selected countries of Western Europe. 461 companies from Western European countries were analyzed. The article discusses the issues of preparing financial statements according to IFRS. The subject of the detailed analysis were correlations between the IFRS application and profitability, liquidity ratio, assets turnover, investment intensity, total debt ratio, company size, company growth, international activity, market share and industry concentration. The higher level of risk, lower liquidity, lower turnover of assets, higher capital intensity, higher company size, age of the business unit, broader international operations and higher market shares in companies applying IFRS in selected countries of Western Europe were verified empirically.

• Details
• Contents