An empirical investigation of Greek firms' compliance to IFRS disclosure requirements

This study investigates the compliance of Greek firms to IFRS disclosure requirements. Using a checklist based on the disclosure requirements contained on the proposed standard for SMEs, a compliance score was calculated for a sample of 32 listed and non-listed Greek firms. Subsequently, univariate tests and a multivariate regression model were run to investigate what firm characteristics (listing status, sector, size, profitability) may be related to the extent of compliance. On average, firms comply with about two-thirds of the disclosure requirements. Compliance is positively and significantly influenced by listing status, while the univariate analysis indicated that the larger firms exhibit higher compliance rates. Results are of particular interest to accounting regulators who set disclosure requirements and capital market participants. However, the small size of the sample limits the power of the statistical analysis. The paper empirically investigates the compliance with IFRS requirements and ultimately on the quality of financial statements.compliance; disclosure requirements; small and medium-sized enterprises; SMEs; International Financial Reporting Standards; IFRS; Greece; accounting standards.

The relevance of IFRS to an emerging market: evidence from Greece

Purpose – This paper aims to examine the relevance of International Financial Reporting Standards (IFRS) in emerging markets, with special reference to the case of Greece. Design/methodology/approach – This paper adopts a mixed methodology relying primarily on secondary sources such as the relevant legislation, published annual reports and reports on the effects of the application of IFRS by Greek firms as well as the results of a postal survey addressed to the finance managers of the top 100 Greek firms. For the postal survey, a modified version of the questionnaire used by Tyrall et al. was adopted. Findings – Although the Greek environment was not appropriate for IFRS application, participants in the survey believe that their adoption improved the quality of financial reporting. The introduction of IFRS increased the reliability, transparency and comparability of the financial statements. Practical implications – This study provides insights regarding the extent to which the introduction of IFRS influenced the accounting information supplied by firms operating within the European Union. Originality/value – The paper empirically investigates the impact of the introduction of IFRS on the quality of financial statements within the context of emerging markets.Emerging markets, Financial reporting, Greece