INVESTIGATING THE FACTORS AFFECT MANAGERIAL READINESS TO ADOPT IFRS IN COMPANIES LISTED ON THE TSE

Authors: Mohammad Sayrani, Parmida Rashidi, Hamidreza Salehi & Elaheh Pouya

ABSTRACT

Purpose: The purpose of this study is to investigate the factors that affect managerial readiness to adopt International Financial Reporting Standards (IFRS) in companies listed on the Tehran Stock Exchange (TSE).

Design/methodology/approach: This study is cross-sectional. A descriptive survey methodology was used and the data were collected via a questionnaire. The population consisted of all the financial managers of TSE-listed companies, and 65 financial managers were selected as the sample.

Findings: The results indicated that managerial readiness to adopt IFRS is positively associated with managers’ attitudes toward and opinions on IFRS, quality indicators, the effect of IFRS adoption on the management, and costs and benefits of IFRS for the company’s operations.

Originality: This paper contributes to the literature on the factors that affect managerial readiness to adopt International Financial Reporting Standards (IFRS). This study provides more insights into our understanding of the factors in managerial readiness to adopt IFRS. To the best of the authors’ knowledge, this is the first research on investigating the factors in managerial readiness to adopt International Financial Reporting Standards (IFRS). This study has been more distinctive since has been done in companies listed on the Tehran Stock Exchange, with its unique and particular conditions.

Research limitations/implications: Since it has been proven that factors such as culture, politics, economy, and other factors have a significant impact on the acceptance of IFRS standards, extending the results of this study to other countries should be careful. Also like with any research, this study implies certain limitations specifically related to the sample selection, a sample size, which may affect the generalizability of the results. Thus, future research may rely on a larger sample combining and covering other cultural areas.

Practical implications: This study and its results will deliver evidence-based outcomes for Iran which will better formulate policy makers, accounting practitioners, and educators to more effectively implement International Financial Reporting Standards (IFRS).

Keywords: Managerial Readiness, International Reporting Standards, Tehran Stock Exchange.

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