Conforming to this idea, we propose the following hypothesis:
H1. Ceteris paribus, compliance with the environmental requirements of IASs/IFRSs, is
positively related to size.
Our previous analysis indicates that Germany is the country with the least constraining
regulation on environmental disclosures. Therefore, in conformity with the idea that IAS/IFRS compliance depends on the regulatory environment of reporting firms, we state the following hypothesis:
H2. Ceteris paribus, compliance with the environmental requirements of IASs/IFRSs, is
stronger in countries with constraining regulation on environmental disclosure, i.e., the UK and France, than in countries with less constraining regulations, i.e., Germany.