Characteristics of UK firms related to timing of adoption of Statement of Standard Accounting Practice No. 20

George Emmanuel Iatridis, Nathan Lael Joseph

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This study examines whether the timing of adoption of the UK Statement of Standard Accounting Practice No. 20 'Foreign Currency Translation' depended on firms' financial characteristics. Consistent with US studies, we find that early adopters tended to be larger firms, and that variables, such as growth options, profitability, leverage and management payout, have strong predictive power. In general, the decision to adopt the Statement of Standard Accounting Practice No. 20 did not appear to adversely affect the profitability measures or dividend payout. Firms tended to adopt when the adverse economic consequences of the adoption were likely to be minimal. They also appeared to defer the adoption of the standard to influence their financial performance and, hence, to achieve certain corporate financial objectives. © 2006 AFAANZ.
Original languageEnglish
Pages (from-to)429-455
Number of pages27
JournalReview of Accounting and Finance
Volume46
Issue number3
DOIs
Publication statusPublished - 18 Aug 2006
Externally publishedYes

Keywords

  • Timing of adoption
  • Translation gains and losses
  • UK Statement of Standard Accounting Practice No. 20
  • US SFAS 52

Fingerprint Dive into the research topics of 'Characteristics of UK firms related to timing of adoption of Statement of Standard Accounting Practice No. 20'. Together they form a unique fingerprint.

  • Cite this