Het effect van de interactie tussen de institutionele omgeving en de accounting standaarden op de kwaliteit van financiële staten en de kapitaalkost van ondernemingen.

We investigate the association between corporate governance strength and EU listed firms choices with respect to IFRS adoption in 2005. We measure governance strength by aggregating variables such as board independence, board functioning and audit committee effectiveness. The firms exhibit heterogeneity in both compliance and disclosure quality; some firms do not even meet the minimum disclosure requirements. Regression results show that stronger governance firms disclose more information, comply more fully and use IAS 39s carve-out provision less opportunistically. These findings are germane to accountants, managers, and regulators in countries soon to adopt IFRS.

Trefwoorden:Compliance, Disclosure, Corporate Governance, International Financial Reporting Standa, Accounting