Influence of the adoption of a new regulation on the size of companies

This study focuses in small and medium-sized Portuguese companies that adopted the Accounting Standards of Financial Reporting (NCRF) in 2010. A sample of 27658 Portuguese companies not listed in Portugal was used from the SABI (Iberian Balance Sheet Analysis System). The study aims to analyze the changes that occurred in terms of the size of companies after the adoption of the standards in the period between 2005 and 2018. The results show that there was an increase in the number of small and medium-sized enterprises and a reduction of microenterprises after the implementation of the regulation, although is not possible to determine whether this is related to the adoptions of the regulations.