Konstantia Dalla, Petros Lois and Georgios Makrygiannakis
This paper aims to examine the quality of relations within upper-level management in Greek public hospitals (GPHs), as well as to specify the extent to which these facilitate or…
Abstract
Purpose
This paper aims to examine the quality of relations within upper-level management in Greek public hospitals (GPHs), as well as to specify the extent to which these facilitate or hinder the forthcoming International Public Sector Accounting Standards (IPSAS) adoption and implementation.
Design/methodology/approach
A survey was conducted on a sample of 143 upper-management professionals drawn from across the 125 GPHs. A multivariate structural equation model (SEM) is used to investigate the degree of interdependence of the level of convenience of implementation under the view of the leader-member exchange (LMX) scale.
Findings
The findings suggest that the established leader-member relations in the GPHs facilitate reforms. However, these relationships are of little benefit to IPSAS adoption and implementation mainly due to the low degrees of competence and commitment to IPSAS. The passive adoption of IPSAS is the most likely outcome.
Originality/value
The study recontextualizes the LMX model to public sector research. The findings have value to hospital leadership and to policymakers, as well as to researchers studying the difficulties of IPSAS adoption and implementation.
Details
Keywords
George Iatridis and Konstantia Dalla
While the Greek GAAP is stakeholder‐oriented and commonly viewed as a historical cost accounting model, IFRS is shareholder‐oriented and generally perceived as a fair‐value…
Abstract
Purpose
While the Greek GAAP is stakeholder‐oriented and commonly viewed as a historical cost accounting model, IFRS is shareholder‐oriented and generally perceived as a fair‐value accounting model. The study seeks to investigate the effects of adopting IFRSs on the financial statements of Greek listed companies. It focuses on major Greek industrial sectors and stock market indices and investigates the effects of IFRS adoption on company financial position and performance.
Design/methodology/approach
A binary logistic regression has been applied in order to capture the differences between the pre‐official adoption and official adoption periods. The model focuses on 2004 and 2005. The dependent variable is a dummy variable and takes the following values: 1 for 2005 and 0 for 2004.
Findings
The study shows that IFRS implementation has influenced positively the profitability of most industrial sectors as well as those firms that belong to FTSE 40 and SMALLCAP 80. IFRS adoption appears to negatively influence liquidity for a number of industrial sectors and stock market constituents. An increase in leverage is obtained from the examination of the sample stock market indices and industrial sectors. Similar findings are evidenced for firms of large size and high financing needs.
Research limitations/implications
The study is limited in the following respects. The results reflect short‐term timing differences, which may reverse in later accounting periods. Also, companies should have anticipated IFRS adoption and might have adjusted their accounting policies accordingly, or even managed their reported numbers, in the period under investigation, since the EU Regulation passed in 2002.
Originality/value
The findings of the study are useful for investors, shareholders, financial analysts and other market participants as they provide information about the impact of IFRS implementation per major sector and market index. The effects would be expected to vary as each sector and market index carries different financial attributes. Users of accounting information could make use of the findings of the study for the evaluation of the financial performance and prospects of a sector/index and for other investment decision‐making purposes. The study also contributes to the literature as it focuses on a code law country that is stakeholder‐oriented.