Factors that affect the adoption of International Financial Reporting Standards in Libyan companies with moderating effect of foreign ownership
<p>International Financial Reporting Standards (IFRS) is a set of international accounting</p><p>standards, which facilitate the reporting of financial results of companies. The purpose</p><p>of this study is to examine the predic...
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| Format: | thesis |
| Language: | eng |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=11156 |
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| Summary: | <p>International Financial Reporting Standards (IFRS) is a set of international accounting</p><p>standards, which facilitate the reporting of financial results of companies. The purpose</p><p>of this study is to examine the predictors and the effect of adopting IFRS on the</p><p>organizational level in Libya. The population consists of 2,212 respondents. Using the</p><p>random sample technique, the sample size accounted for 425 and a total of 248</p><p>responses were collected. The data was analysed using SPSS and AMOS. SPSS was</p><p>used to examine the data and conduct the descriptive analysis while AMOS was used</p><p>to conduct the regression analysis. The study proposed that perceived organizational</p><p>factors (POF) (accounting capabilities (AC), top management support (TMS), and</p><p>organizational readiness (OR), perceived technical factors (PTF) (compatibility</p><p>(COMP) and complexity (COX), and perceived environmental factors (PEF)</p><p>(government regulation (GR) and external pressure (ER) will affect the adoption of</p><p>IFRS which in turn will affect the organizational performance (OP) of accounting</p><p>companies in Libya. Foreign ownership (FO) is expected to be a moderating variable.</p><p>The findings showed that the POF (Coefficient=.284, P<0.05) are the most important</p><p>constructs followed by the PEF (Coefficient=.260, P<0.05) and the PTF</p><p>(Coefficient=.203, P<0.05). AC is the most important components of the POF followed</p><p>by TMS. In the PEF, only the External Pressure (EP) has a significant effect on the</p><p>adoption of IFRS. In the PTF, COMP has a positive effect on the adoption of IFRS</p><p>while COX has a negative effect. The adoption of IFRS has a positive effect on OP.</p><p>The moderating effect of FO was confirmed only between the POF and the adoption of</p><p>IFRS. Decision makers are advised to conduct training to enhance the AC of the</p><p>personnel in Libyan companies. They are also advised to adopt the IFRS because it has</p><p>a positive impact on the OP of Libyan companies.</p> |
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