LAUSR

Abstract This study explores the influence of a country's financial development on the adherence of its companies to standardized reporting by comparing developed, emerging, and frontier markets. The results show that only high-income developed or emerging markets present a high number of companies committed to standardized reporting, although the conditions that lead to that outcome differ. Thus, a high level of institutional depth is the only necessary condition for developed markets, whereas for emerging markets, the results are more diverse and demanding. Both institutional depth and institutional efficiency could work, but two outstanding indicators of financial development are necessary. Therefore, emerging markets need stronger institutional support to deal with more areas of financial development; however, they also have multiple chances to achieve the outcome.