EXPLANATORY FACTORS OF THE COMPLIANCE WITH IFRS 16 (LEASES) DISCLOSURE REQUIREMENTS: EVIDENCE FROM THE PORTUGUESE STOCK MARKET

• Published in: Revista Globalización, competitividad y gobernabilidad competitividad y gobernabilidad, 2023, Vol.17 (2), p.101-115
• Main Authors: Lemos, Kátia, Monteiro, Sónia, Oliveira, Vânia
• Format: Article
• Language: English
• Subjects: Accounting; Compliance; determinant factors; Disclosure; disclosure index; factores determinantes; fatores determinantes; grado de cumplimiento; grau de cumprimento; Hypotheses; IFRS 16 Leases; IFRS 16 Locações; International finance; International Financial Reporting Standards; Leases; Lessees; level of compliance; Liability; Literature reviews; NIIF 16 Arrendamientos; Securities markets; Stock exchanges; transición; transition; transição; índice de divulgación; índice de divulgação
• ISSN: 1988-7116; 1988-7116
• DOI: 10.58416/GCG.2023.V17.N2.05

This paper aims to analyze the degree of compliance with the IFRS 16 disclosure requirements, in the first year of mandatory adoption of IFRS 16, and to identify its determinant factors. As methodology, we performed a content analysis of the reports and accounts of a sample of companies listed on Euronext Lisbon. A multiple linear regression model was also developed, which assumes the compliance disclosure index as a dependent variable as some companies’ characteristics as potential explanatory factors. Results of descriptive statistics indicate that, in the first year of adoption of IFRS 16, the average level of compliance with disclosure requirements is approximately 0.66. The multivariate analyses reveals that the type of auditor significantly positively influences the compliance disclosure index and therefore we conclude that entities with accounts audited by one of the Big Four exhibit a higher level of disclosure than those that are audited by other audit firms.