Contribuie adoptarea IFRS la protejarea investitorilor minoritari?

• Published in: Audit financiar (Bucharest, Romania ) Vol. 16; no. 152; pp. 584 - 598
• Main Authors: Dima, Bogdan, Dima, Ştefana Maria, Nachescu, Miruna Lucia
• Format: Journal Article
• Language: English
• Published: Camera Auditorilor Financiari din România 2018; Chamber of Financial Auditors of Romania
• Subjects: Accounting - Business Administration; Economy; minority shareholders; IFRSs; insolvency; OECD nonOECD countries; legal system
• ISSN: 1583-5812; 1844-8801

The purpose of the present article is to analyse the connection between the protection of minority shareholders and International Financial Reporting Standards’ (IFRSs’) adoption. Thus, the authors estimate the status of IFRSs’ adoption for 109 countries and involve the Protecting Minority Investors’ ranking (as a component of Ease of Doing Business Index provided by World Bank). In order to deal with the reverse causality issues, a GMM methodological framework was adopted. The results reveal that the impact of IFRSs’ adoption on a country’s rank (in respect to the status of minority investors’ protection) is reverse U-shaped and statistically significant. These findings are robust, even if we consider different control variables (legal system features, conditions of borrowed financial resources’ markets and insolvency resolution procedures) and estimation methodologies. In addition, the authors compare OECD versus non-OECD countries and find that the strongest impact of IFRSs’ adoption is in the case of the latter group.