Financial statement comparability on a national level: Empirical evidence from listed companies in Sweden
Independent thesis Advanced level (degree of Master (Two Years)), 80 credits / 120 HE creditsStudent thesis
This study examines whether financial statement comparability increases between companies by implementing IFRS on a national level. Financial statement comparability is achieved when companies’ accounting systems, for a given set of economic transactions, produce similar financial statements. Previous researchers have found that IFRS contribute to increased international comparability, whereas other researchers have found that the implementation leads to difficulties on a national level. To measure comparability we modify De Franco, Kothari and Verdi’s (2011) model by introducing three new variables: size, leverage, and cash flow from operations to total assets. Our sample consists of listed companies in Sweden with 3,485 firm-quarter observations from the 2001-2004 period and 3,783 firm-quarter observations from the 2005-2008 period. We find that financial statement comparability within an industry is increased by implementing IFRS in Sweden. This study contributes to the literature by suggesting that financial statement comparability increases between companies by implementing IFRS on a national level.
Place, publisher, year, edition, pages
2015. , 36 p.
Financial statement comparability; national level; IFRS
IdentifiersURN: urn:nbn:se:uu:diva-255989OAI: oai:DiVA.org:uu-255989DiVA: diva2:824255
Master Programme in Accounting, Auditing and Analysis