The Impact of Institutional Factors on IFRS Voluntary Adoption in EU Selected Countries

Abstract :

The aim of the article was to empirically verify the impact of institutional factors on the voluntary use of IFRS in selected EU countries. Factors affecting the voluntary adoption of IFRS were presented, and factors were divided into internal and external. Stock exchange manufacturing companies from selected EU countries were the subject of the analysis. The following factors have been proven to affect the voluntary adoption of IFRS: stock exchange and banking development, government efficiency, freedom from corruption, business freedom, investment freedom, judicial independence, protection of property rights, and legal enforcement of contracts