IFRS introduction, corporate governance and firm performance: evidence from Portugal

Euclides Major, Ana Marques

Research output: Contribution to journalArticlepeer-review


This paper assesses the relationship between the application of the International Financial Reporting Standards (IFRS), corporate governance and firm performance in Portugal. The sample consists of 240 observations, in 80 firms, over the period of 2003-2005. A corporate governance index is created to measure the compliance with the CMVM (Portuguese Securities Market Commission) recommendations. Results reveal that Portuguese companies that follow CMVM recommendations have a higher level of firm performance, which indicates an important link between financial and managerial accounting. Nevertheless, the level of compliance with the recommendations is still low. Finally, the study establishes that IFRS adoption, per se, is not associated with a higher level of corporate governance.
Original languageEnglish
Pages (from-to)55-70
JournalThe Journal of Applied Management Accounting Research
Issue number2
Publication statusPublished - 1 Jan 2009


  • IFRS
  • corporate governance
  • Portugal
  • finance performance
  • Portuguese Securities Market
  • Commission (CMVM)


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