Institutional pressures, legitimacy, risks, uncertainty and voluntary adoption of IFRS for SMEs in Vietnam
DOI:
https://doi.org/10.15549/jeecar.v8i4.744Keywords:
Institutional Pressures, Legitimacy, Risks, Uncertainty, Voluntary Adoption Of International Financial Reporting StandardsAbstract
The purpose of this study was to determine the impact of institutional variables, risks, and dependence on the voluntary application of international financial reporting standards. The study used a quantitative research method based on regression analysis, with data obtained from a survey from among Vietnam's small and medium businesses. The findings confirmed that legitimacy, dependence, consistency, time, international trade, uncertainty, operational risk, financial risk, and industry all have a positive impact on the ability to voluntary application international financial reporting standards, with the exception of flexibility, which has a negative impact. The findings of the study have consequences for stakeholders in making proper policy decisions about the application of the International Financial Reporting Standards.
References
Abor, J., & Biekpe, N. (2006). SMEs' access to debt finance: A comparison of male-owned and female-owned businesses in Ghana. The International Journal of Entrepreneurship and Innovation, 7(2), 105-112. https://doi.org/10.5367/000000006776928627 DOI: https://doi.org/10.5367/000000006776928627
Albu, C. N., Albu, N., & Alexander, D. (2014). When global accounting standards meet the local context—Insights from an emerging economy. Critical Perspectives on Accounting, 25(6), 489-510. https://doi.org/10.1016/j.cpa.2013.03.005 DOI: https://doi.org/10.1016/j.cpa.2013.03.005
Albu, N., Albu, C. N., & Gray, S. J. (2020,). Institutional factors and the impact of international financial reporting standards: the Central and Eastern European experience. In Accounting Forum, 44(3), 184-214, https://doi.org/10.1080/01559982.2019.1701793. DOI: https://doi.org/10.1080/01559982.2019.1701793
Bassemir, M., & Novotny?Farkas, Z. (2018). IFRS adoption, reporting incentives and financial reporting quality in private firms. Journal of Business Finance & Accounting, 45(7-8), 759-796. https://doi.org/10.1111/jbfa.12315 DOI: https://doi.org/10.1111/jbfa.12315
Dandago, K. I., & Hassan, N. I. B. (2013). Decision usefulness approach to financial reporting: A case for Malaysian Inland Revenue Board. Asian Economic and Financial Review, 3(6), 772. http://www.aessweb.com/pdf-files/aefr%203(6)%20772-784.pdf
De Luca, F., & Prather-Kinsey, J. (2018). Legitimacy theory may explain the failure of global adoption of IFRS: the case of Europe and the US. Journal of Management and Governance, 22(3), 501-534. https://doi.org/10.1007/s10997-018-9409-9 DOI: https://doi.org/10.1007/s10997-018-9409-9
Dillard, J. F., Rigsby, J. T., & Goodman, C. (2004). The making and remaking of organization context. Accounting, Auditing & Accountability Journal, 17 (4), 506-542 https://doi.org/10.1108/09513570410554542 DOI: https://doi.org/10.1108/09513570410554542
Goodstein, J. D. (1994). Institutional pressures and strategic responsiveness: Employer involvement in work-family issues. Academy of Management journal, 37(2), 350-382. https://doi.org/10.2307/256833 DOI: https://doi.org/10.5465/256833
Gordon, L. A., & Narayanan, V. K. (1984). Management accounting systems, perceived environmental uncertainty and organization structure: an empirical investigation. Accounting, organizations and society, 9(1), 33-47. https://doi.org/10.1016/0361-3682(84)90028-X DOI: https://doi.org/10.1016/0361-3682(84)90028-X
Guerreiro, M. S., Lima Rodrigues, L., & Craig, R. (2021). Institutional theory and IFRS: an agenda for future research. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 50(1), 65-88. https://doi.org/10.1080/02102412.2020.1712877 DOI: https://doi.org/10.1080/02102412.2020.1712877
Guerreiro, M. S., Rodrigues, L. L., & Craig, R. (2012). Voluntary adoption of International Financial Reporting Standards by large unlisted companies in Portugal–Institutional logics and strategic responses. Accounting, Organizations and Society, 37(7), 482-499. https://doi.org/10.1016/j.aos.2012.05.003 DOI: https://doi.org/10.1016/j.aos.2012.05.003
Han, X. (2020). Risk management, legitimacy, and the overseas subsidiary performance of emerging market MNEs. International Business Review, 101732. https://doi.org/10.1016/j.ibusrev.2020.101732 DOI: https://doi.org/10.1016/j.ibusrev.2020.101732
Hitz, J. M. (2007). The decision usefulness of fair value accounting–a theoretical perspective. European accounting review, 16(2), 323-362. https://doi.org/10.1080/09638180701390974 DOI: https://doi.org/10.1080/09638180701390974
Le, V. N. T. & Hoang, T. H.. (2017). Formal accounting harmonization-A new measurement scheme demonstrated by Vietnam’s data and International Financial Reporting Standards. HCMCOUJS-ECONOMICS AND BUSINESS ADMINISTRATION, 7(1). DOI:10.46223/HCMCOUJS.econ.en.7.1.195.2017 DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.7.1.195.2017
Mantzari, E., Sigalas, C., & Hines, T. (2017). Adoption of the International Financial Reporting Standards by Greek non-listed companies: The role of coercive and hegemonic pressures. In Accounting Forum (Vol. 41, No. 3, pp. 185-205). https://doi.org/10.1016/j.accfor.2017.04.003 DOI: https://doi.org/10.1016/j.accfor.2017.04.003
Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American journal of sociology, 83(2), 340-363. https://www.jstor.org/stable/2778293 DOI: https://doi.org/10.1086/226550
Odia, J. O. (2016). The determinants and Financial Statement effects of IFRS adoption in Nigeria. In Economics and political implications of International Financial Reporting Standards (pp. 319-341). IGI Global. DOI: 10.4018/978-1-4666-9876-5.ch016 DOI: https://doi.org/10.4018/978-1-4666-9876-5.ch016
Oliver, C. (1991). Strategic responses to institutional processes. Academy of management review, 16(1), 145-179. https://doi.org/10.5465/amr.1991.4279002 DOI: https://doi.org/10.5465/amr.1991.4279002
Palmer, D. A., Jennings, P. D., & Zhou, X. (1993). Late adoption of the multidivisional form by large US corporations: Institutional, political, and economic accounts. Administrative science quarterly, 100-131. https://doi.org/10.2307/2393256 DOI: https://doi.org/10.2307/2393256
Phan, D. H. T. (2014). What factors are perceived to influence consideration of IFRS adoption by Vietnamese policymakers?. Journal of Contemporary Issues in Business and Government, The, 20(1), 27-40. DOI:10.7790/cibg.v20i1.18 DOI: https://doi.org/10.7790/cibg.v20i1.18
Phan, D., Joshi, M., and Mascitelli, B. (2018). What influences the willingness of Vietnamese accountants to adopt International Financial Reporting Standards (IFRS) by 2025. Asian Review of Accounting, 26(2), 225-247. https://doi.org/10.1108/ARA-03-2017-0052 DOI: https://doi.org/10.1108/ARA-03-2017-0052
Radomska, J. (2014). Operational risk associated with the strategy implementation. Management, 18(2), 31. DOI:10.2478/manment-2014-0040 DOI: https://doi.org/10.2478/manment-2014-0040
Scott, W. R. (2004). Institutional theory. Encyclopedia of social theory, 11, 408-414.
Svensson, G., & Saga, A. (2015). Choice of accounting framework from a stakeholder and disclosure perspective. Master thesis. https://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=7870432&fileOId=7870433
Tokar, M. (2005). Convergence and the implementation of a single set of global standards: the real-life challenge. Accounting in Europe, 2(1), 47-68. https://doi.org/10.1080/09638180500379079 DOI: https://doi.org/10.1080/09638180500379079
Zelinschi D, Levant Y, Berland N. (2012). Motivations for decoupling. The case of ?rst application of IFRS 8. In: The Interdisciplinary Perspectives on Accounting Conference 2012. July 11–13, Cardiff, UK.
Downloads
Published
How to Cite
Issue
Section
License
The JEECAR journal allows the author(s) to hold the copyright and publishing rights of their own manuscript without restrictions.
This journal applies the Creative Attribution Common License to works we publish, and allows reuse and remixing of its content, in accordance with a CC-BY 4.0 license.
Authors are free to: Share — copy and redistribute the material in any medium or format and Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
No additional restrictions — The author may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
The JEECAR Journal is committed to the editorial principles of all aspects of publication ethics and publication malpractice as assigned by the Committee on Public Ethics.
