*To What Extent Do Managers in SMEs See a Need to Provide Internationally Comparable Accounting Information? Empirical Evidence from Germany

• In Event: Accounting in SMEs

Abstract

This empirical study, which is based on a survey carried out among unlisted German SMEs, investigates the perceived need for unlisted SMEs to provide internationally comparable accounting information. Based on contingency theory it analyses whether this need is influenced by company-specific characteristics. Our findings reveal that the involvement of international equity providers as well as the consolidation in an international group plays an important role in explaining this need. Other characteristics such as profitability, leverage, size or industry do not seem to be significant determinants. In a second step the actual application of IFRS is examined. The results indicate that the perceived need for internationally comparable accounting information is a significant determinant. Beyond that, the decision to apply IFRS is influenced by the interaction of size and need indicating cost-considerations. In contrast to prior research based on archival data our study using survey data can include the application of IFRS in reconsolidations. Furthermore, the examination of the abstract need is not limited to companies that have already adopted IFRS and is neither influenced by existing reservations against IFRS or the IFRS for SMEs nor their specific properties.

Authors

• Brigitte Eierle, University of Bamberg

• Christiane Helduser, Otto-Friedrich Universität Bamberg

• David Shirkhani, Otto-Friedrich Universität Bamberg