Determinants of stakeholder’s participation: The case of Business Combinations under Common Control

• Main Author: Macedo, Inês Maria Veloso Teles de
• Publication Date: 2022
• Format: Master thesis
• Language: eng
• Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
• Download full: http://hdl.handle.net/10071/27083
• topic: BCUCC; International Accounting Standard Board (IASB); Comment letters; Multinomial logistic regression; Regressão logística multinomial

The topic of Business Combinations under Common Control is a hot topic in the scientific community. Due to the lack of regulation on these combinations, which is creating too much diversity in the information disclosed, the IASB initiated a research project to explore possible reporting requirements for these transactions. As a result, a Discussion Paper was published in November 2020 where the IASB presents four criteria with the aim to guide the accounting for these combinations. These criteria, as well as the remaining preliminary views, were subsequently discussed by stakeholders through the submission of comment letters. This dissertation investigates what factors influence a stakeholder to agree with the criteria proposed by the IASB. The analysis is conduct through a qualitative methodology, followed by the estimation of an empirical multinomial logistic regression model, using a sample of 102 comment letters submitted by the various stakeholders. The main results indicate that 74.5% of the stakeholders agree with some or all of the criteria proposed by the IASB. The results also show that Europeans, as well as national accounting standard setters, are the stakeholders who have participated the most. The regression designed also reveals that stakeholders from African countries and accountancy bodies are more likely to agree with some of IASB’s criteria in relation to other stakeholders. On the other hand, stakeholders from non common law countries are less likely to agree with some or all the criteria presented by the IASB, compared to stakeholders from common law countries.