IFRS 18 AND THE GLOBAL STANDARDIZATION OF RESULT SUBTOTALS: A MULTI-JURISDICTIONAL ECONOMETRIC ANALYSIS IN THE LIGHT OF INSTITUTIONAL THEORY

This study investigates the impact of IFRS 18 on the standardization of performance subtotals through the lens of institutional theory, critically addressing methodological limitations inherent to the short post-implementation period. Using a hybrid sample of 425 companies (85 per country) and aggregated data from regulators in the United Kingdom, Australia, Canada, South Korea, and Brazil over the period 2015-2024, we implement a multilevel econometric strategy combining triple fixed-effects panel models with difference-in-differences approaches, instrumental variables, and mediation analysis. Our results, robust to extensive sensitivity tests including statistical power analysis (1-β = 0.89), indicate that the adoption of IFRS 18 is associated with a 42.3% reduction in cross-country dispersion of operating profit (p < 0.01), an effect mediated by 65% through the quality of institutional enforcement. Heterogeneity analyses reveal that the effects are 73% larger in jurisdictions with high-quality enforcement, corroborating institutional theory assumptions. Additionally, we document a 58.7% contraction in heterogeneous Management Performance Measures (MPMs) intensity (p < 0.01) and a 34.5% increase in the value relevance of standardized operating profit. We explicitly discuss the implications for accounting standardization theory and propose an integrated framework for evaluating international regulatory reforms.