Firm characteristics and compliance with IAS/IFRS: Evidence from North African companies

Purpose – This paper aims to examine the influence of firm characteristics on harmonisation of companies listed on the Egypt, Morocco and Tunisia Stock Exchanges. Design/methodology/approach – This study uses a checklist based mainly on the International Financial Reporting Standards (IFRS). Findings – The findings of the study are that the level of compliance with IFRS was higher in 2010 than in 2005. Multiple regression analysis indicates that the level of compliance with IFRS increases with company size, institutional ownership, industry and language of disclosure. Research limitations/implications – The findings of this study suggest that both institutional- and firm-level forces influence the harmonisation process. Originality/value – This study contributes to the literature on accounting harmonisation in the context of North Africa