To identify how corporate characteristics impact the decision to converge, we tested three groups of European\nfirms assigned into a group by the time of the IFRS adoption. Following the theory on network externalities, we\nhypothesize that companies with more business complexity and higher value benefit from a positive network effect\nand therefore, represent a driving force in accounting standardization. We provide evidence, that a firm�s business\ncomplexity and valuation characteristics have a significant impact on IFRS adoption. We also document that the\nextenuating effects of jurisdictions and national levels of bureaucratic formalities in business are factors that affect\nfirms� IFRS adoption decisions.
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