Accounting standards internationalization revisit: Managing responsible diffusion

AbstractWe first examine the predictive factors of adopting IFRS and then create a framework based on our empirical finding. Following DiMaggio and Powell (1983) ‘s Institutional Isomorphism theory and applying regression analysis, we empirically show a contradictory fact that IFRS adoption is not related with its corresponding economic benefits because countries’ need to be socially accepted by global community is very paramount that the decision to adopt IFRS might not be triggered by the need to compete economically. We further reveal that countries are social entities that seek legitimacy and have been influenced by international organizations (coercive isomorphism), uncertain situations (mimetic isomorphism), and their own cognitive base (normative isomorphism) to accept IFRS for non-economic reasons. Finally, we offer a framework of IFRS diffusion by contrasting our proposed institutional perspectives with main stream neoclassical views of the west