Role of country-level characteristics in segment reporting: EU evidence

Ahmed Aboud, Akrum Helfaya

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Based on a country-level characteristics framework, we empirically test the impact of IFRS 8 adoption, the country’s legal system and country-level of legal enforcement, investor protection, conservatism, and closeness between national GAAP and IFRS on both quantity and quality of segment reporting. Using a sample of companies from 15 EU countries covering four years (two years pre and two years post-adoption of IFRS 8), we find that the adoption of IFRS 8 is associated with a decrease in the quantity and an increase in the quality of segment reporting. Moreover, we report that a common law system, country-level of legal enforcement and investor protection have a significant and positive impact on the quantity/quality of segment reporting. While country-level of conservatism and closeness between national GAAP and IFRS are negatively related to the quantity/quality of segment reporting. In addition to firm-level characteristics, this study extends the prior limited literature by documenting the importance of country-level characteristics as factors that enhance segment reporting practices in Europe. We also discuss the research contributions and implications for research, professional practice, and policymakers.
    Original languageEnglish
    Article number0
    Pages (from-to)0
    JournalThe International Journal of Accounting
    Volume0
    Publication statusAccepted for publication - 19 Jul 2019

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