Stronger Corporate Governance Leads to More Transparent IFRS Adoption
The article explores how strong corporate governance affects European companies' decisions on adopting international accounting standards in 2005. By looking at factors like board independence and audit committee effectiveness, the researchers found that firms with better governance disclose more information, follow the standards more closely, and use certain provisions less for their own benefit. This information is important for accountants, managers, and regulators in countries planning to switch to these standards.