Analysis of social, political, economic and cultural factors on the adoption of International Public Sector Accounting Standards by countries
Name: JULIANA BATISTA CALLEGARIO
Publication date: 18/12/2015
Advisor:
Name |
Role |
|---|---|
| FERNANDA FILGUEIRAS SAUERBRONN | Advisor * |
| JOSE ELIAS FERES DE ALMEIDA | Co-advisor * |
Examining board:
| Name |
Role |
|---|---|
| EDUARDO JOSÉ ZANOTELI | Internal Examiner * |
| FERNANDA FILGUEIRAS SAUERBRONN | Advisor * |
| JOSE ELIAS FERES DE ALMEIDA | Co advisor * |
| TERESA CRISTINA JANES CARNEIRO | External Examiner * |
Summary: This study investigates which cultural, social, political and economic factors influence the
adoption of International Financial Reporting Standards Applied to the Public Sector
(International Public Sector Accounting Standards - IPSAS) by countries. Based on
information provided by IFAC (2007) and Deloitte (2013) the different positions were
analyzed and segregated taken by countries such as adoption of IPSAS completely; signaling
intent to adopt; Partial adoption on a cash basis (Cash Basis) IPSAS; and adoption of the
accrual basis based on IPSAS. The factors were raised GDP per capita; number of inhabitants;
non-adoption of IFRS (International Financial Reporting Standards) by the countries;
perception index of corruption; origin of the legal system; and cultural dimensions of
Hofstede (2015), collected between 1995 and 2013 for 214 countries, initially. The
methodological approach is applied logistic regression model (logit) based on Clements, Neill
and Stovall (2010), adapted for panel data with random effects. The results indicate that
countries that intend to adopt IPSAS can be explained by the positive variation of the
variables GDP per capita, number of inhabitants, the origin of Anglo-Saxon legal system,
socialist and French, and the negative variation of cultural variables: individualism and
indulgence. In another test conducted, it was found that countries that have partially adopted
the IPSAS, applying the accrual basis can be explained by the positive variation of the
variables GDP per capita, number of inhabitants and the individualistic culture of a company;
and the negative variation of the variables of the Corruption Perceptions Index, Scandinavian
legal system of origin and cultural variables: masculinity and long-term orientation. As a
complement, logistic regression that uni any interest in IPSAS showed that socialist countries
of origin and cultures with little social inequality, less uncertainty avoidance and pragmatic
few can justify such a choice. There was also a positive relationship with the number of
inhabitants and GDP per capita, which suggests that more populated and developed countries
tend to adopt IPSAS. The other tested logistic regressions did not allow statistical inference.
Still, in any regression tested, there was evidence of dependency between the IFRS not
allowed by the countries with the non-adoption of IPSAS.
