THE EFFECT OF MANDATORY IFRS ADOPTION ON EQUITY GROWTH OF UZBEK PUBLIC INTEREST ENTITIES (PIES)

This study examines the effect of mandatory International Financial Reporting Standards (IFRS) adoption on capital formation in Uzbekistan, with a particular focus on total equity growth among Public Interest Entities (PIEs). Using a panel dataset comprising 12 listed companies over the period 2017–2024, a fixed-effects regression model was employed to assess the transition from National Accounting Standards (NAS) to IFRS. The results indicate a statistically significant contraction in reported equity growth following mandatory IFRS adoption in 2021, which is interpreted as a "transparency correction" arising from stricter IFRS recognition and measurement requirements. IFRS adoption is associated with a 32.8% decrease in reported equity growth rates, while profitability, measured by return on equity (ROE), remains a highly significant positive determinant of equity growth. The findings suggest that IFRS adoption has contributed to improving the reliability and transparency of financial reporting in the Uzbek market by promoting more rigorous recognition and measurement practices compared with the pre-mandatory reporting period.