Servizio Comunitario di Informazione in materia di Ricerca e Sviluppo - CORDIS

Final Activity Report Summary - INTACCT (The European IFRS Revolution: Compliance, Consequences and Policy Lessons)

The main activities of the Network were:
1. Doctoral level research training;
2. Supervised research by ESRs and ERs and faculty research;
3. Research dissemination and impact; 4.
Career development of researchers.

1. Research Training. The Network employed and trained 26 Early Stage Researchers and 6 Experienced Researchers, delivering 425 months of recruitment overall. Of the 32 researchers employed by the network, 19 are women. The comprehensive training programme delivered 253 hours of formal training. The Workshops featured presentations and opportunities for one-on-one advice from many leading INTACCT faculty and leading international researchers in the field, including Professors Beatty (Ohio State), Easton (Notre Dame), Leone (Pennsylvania State), Leuz (Chicago), Penman (Columbia), Rees (Edinburgh), Segal (Toronto), Shivakumar (LBS), Stark(Manchester), Walker (Manchester), Wysocki (Miami/MIT), Segal (Toronto) and Ryan (New York). Several senior European practitioners and policy makers also played important roles in these training activities.

2. Research Output: Overall some 115 papers authored or co-authored by INTACCT faculty and/or researchers have so far been published or accepted for publication. INTACCT peer-reviewed publications appear in some of the highest quality and most highly cited academic accounting and finance journals in the world. There are 167 working papers in the publication pipeline or earmarked for eventual publication as at the end of the project. It is encouraging to note that a very significant number of the reported working papers involve ESRs as co-authors. There are strong reasons to believe that INTACCT researchers will soon have papers accepted in high quality journals. Research output addresses both generic research questions related to the quality of financial reporting, its determinants and consequences; and specific research aimed at investigating these issues in the context of the introduction of International Financial Reporting Standards (IFRS) for listed firms in Europe.

Research was organised along the following broad themes:
IFRS adoption: compliance and enforcement,
Comparative analysis of IFRS-related accounting quality changes,
Economic consequences of IFRS adoption, and,
Emerging issues in financial reporting and capital markets.

The research output reports a range of evidence suggesting that the quality of application of IFRS has been uneven across Europe. This appears to be due to the incentives facing preparers (companies), auditors and regulation enforcers. Given these results, it is perhaps unsurprising that the market consequences of IFRS adoption have also been uneven across Europe. Several INTACCT papers document important market benefits of IFRS, but on average benefits are only observed in countries where incentives to produce high quality financial reporting and enforcement levels are expected to be high. This suggests that regulatory attention to enforcement mechanisms is required. INTACCT research has suggested possible solutions that might be explored.

3. Research Dissemination and Impact: The statistical data reveal that INTACCT researchers and faculty have made a considerable impact on the academic and policy/practice communities through presentations and participation at international conferences, seminars and workshops. Several senior faculty members in INTACCT have also been very active in policy circles, including key EU policy bodies involved in accounting regulation.

4. Career development of the 26 ESRs who have worked and received training in the Network, 9 have already successfully completed their PhDs and another one has submitted and is waiting for his defence. A further 8 ESRs are expected to submit their PhDs in the first half of 2011. We regard the rate of PhD completions to date as a very positive outcome. INTACCT researchers are now working in academic positions at some of the top universities in Europe and another is working at University of Chicago. Two other recently employed researchers are now working in industry with major international firms.

Reported by

University of Lancaster
LA1 4YW Lancaster
United Kingdom
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