Prior literature states that the voluntary adoption of IFRS by private firms is related to some firms’ contracting incentives (for example, the leverage or the firm’ size). In Italy, from the 2006 the private firms that meet the criteria of the Legislative Decree 38/2005 may prepare (voluntary choice) the separate financial statements according to the IFRS. In 2009 we find that some private firms have voluntarily adopted the IFRS. The aim of the paper is to analyze the determinants of voluntary adoption of IFRS by those firms in their separate financial statements. According to prior literature, we find those firms are more likely to adopt IFRS when the ownership is dispersed, there are foreign shareholders and firms are more leveraged. We also find that the likelihood of IFRS voluntary adoption by private subsidiaries firms increases when their parent company complies with IFRS.
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