Abstract
Research question: What is general profile of countries adopting IPSAS in accounting, institutional and economic terms? Motivation: IPSAS are perceived as benchmark of public sector's accounting standardization. Their adoption becomes highly promoted by several institutional organizations such as World Bank and IMF. Following previous literature review about IPSAS-adoption, researchers focused on only both factors (Ilie & Miose, 2012) and effects (Christiaens et al., 2015; Opanyi, 2016) of use of these standards. Hence, this study focus on specificities of IPSAS-adopters. Idea: This research aims to determine profile of countries adopting IPSAS internationally for year 2016. Also, it suggests an empirical treatment of countries' economic risk. Indeed, this axis was not treated by previous IPSAS researches. Thus, we add to literature review by analyzing, empirically profile of IPSAS-adopters. Data: Data sources are World Bank, FMI and IPSAS Board. Moreover, we propose two new measures for public-market security and for accounting-system's modernization and transparency. Tools: A logistic regression is applied to test theoretical hypotheses. Then, test of marginal effect was applied in order to detect most common character among IPSAS-adopters. Findings: The result of empirical study showed that IPSAS-adopters have a modern accounting system based on accruals. These countries have a flexible legal system and an internationally legitimated private accounting system based on IFRS. However, there is any relationship between IPSAS-adoption and the public-market's security. Moreover, test of marginal effect indicates that most widely character among IPSAS-adopters use of IFRS. Contribution: Determining IPSAS-adopters' profile is a new research's axis. It is useful for countries' stakeholders that look for accounting, institutional and economic profiles of these entities.
Highlights
International Public-Sector Accounting Standards Board (IPSASB) has tried to adapt standardization to the needs of public entities in international context and that finished by promoting international public Sector Accounting Standards (IPSAS) (IPSASB, 2014)
In the light of these arguments, this article aims to analyze different profiles of IPSAS-adopters in order to answer to following question: What is the general profile of countries adopting IPSAS in accounting, institutional and economic terms?
Note: IFRSA = IFRS adoption, Cash_Accrual = accounting system type, Law = flexibility of the legal system, RLGS= Robustness of legal guarantees provided by the State, LogGNIppp = Logarithm of gross national into studies measured (GNI) per capital PPP, LogPubDebt = Economic risk
Summary
Subprime crisis had led to an increase in the level of public debt, linked to an increase in the amount of expenditure incurred to support economy and banking system in some European countries. Debt burden is a risk factor for all countries that appear weakened by sovereign debt crisis. This crisis is due to the poor quality of public and private sector financial reporting as well as to the lack of harmonization of accounting practices and standards (Ernest and Young, 2013; Lüder, 2002; Brusca et al, 2016). International Public-Sector Accounting Standards Board (IPSASB) has tried to adapt standardization to the needs of public entities in international context and that finished by promoting international public Sector Accounting Standards (IPSAS) (IPSASB, 2014) This is the main interest of national governments and international institutions (Brusca & Martínez, 2016). In the light of these arguments, this article aims to analyze different profiles of IPSAS-adopters in order to answer to following question: What is the general profile of countries adopting IPSAS in accounting, institutional and economic terms?
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