Do the Rules Attract the Money? Implication of IFRS Adoption on Foreign Direct Investment
Do the Rules Attract the Money? Implication of IFRS Adoption on Foreign Direct Investment

Author: Uchenna Efobi

Publisher:

Published: 2014

Total Pages: 22

ISBN-13:

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The adoption of IFRS is expected to significantly affect the quality of global financial reporting and improve investment decisions. A major question that arises, therefore, is: does this stance hold when the time dimension, post IFRS adoption period (i.e. the number of years a country has adopted IFRS), is considered? Secondly, what role do institutions play in this relationship? A sample of 92 countries, comprising of both developed and developing countries, was selected for the period 2002-2010. The baseline model comprise of the macro-economic, structural covariates and measures of institutions, IFRS adoption and the interactions between institutions and IFRS adoption. The System Generalized Method of Moments estimation technique was used for the data estimations. The results show that IFRS is not able to attract much of FDI, and institutional development plays a substitutive role in this regard. This implies that as they pursue the adoption of IFRS, countries should drive at the development of their institutional capacity through policies that will support private investment, regulatory quality, and rule of law, property rights and protection and control of corruption.

Beyond the UN Global Compact
Beyond the UN Global Compact

Author: Liam Leonard

Publisher: Emerald Group Publishing

Published: 2015-04-13

Total Pages: 337

ISBN-13: 1785605577

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This book offers global perspectives on institutions and regulations promoting sustainable economic growth in the Post 2015 development agenda. It addresses sustainability issues from multidisciplinary viewpoints. This second volume, focusing on The UN Global Compact, advances perspectives on the non-compulsory alternative to market regulations.

Transparency Vs. Comparability
Transparency Vs. Comparability

Author: Gregory Sabin

Publisher:

Published: 2019

Total Pages: 33

ISBN-13:

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This paper examines the roles comparability and transparency play in the relation between IFRS adoption and foreign direct investment (FDI). In this study, I disentangle the impact of transparency and comparability through the use of a natural experiment resulting from Mexico's adoption of IFRS in 2012. Greater comparability (adoption of IFRS by both domestic and foreign parties), controlling for transparency (adoption of IFRS by Mexico), increases FDI inflows as reported in column 5 in Table 4. Individually, greater transparency and comparability have been associated with increases in investment activity. However, it is unclear from the existing literature how transparency and comparability interact in the FDI setting. Consistent with prior findings, I find the adoption of IFRS is associated with increases in inbound foreign direct investment. This paper contributes to the literature on IFRS and FDI, specifically with respect to the role of common financial standards in increasing foreign investment activity.

How Does Foreign Aid Affect the Relationship Between IFRS Adoption and Foreign Direct Investment?
How Does Foreign Aid Affect the Relationship Between IFRS Adoption and Foreign Direct Investment?

Author: Efobi Uchenna

Publisher:

Published: 2015

Total Pages: 36

ISBN-13:

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This paper constructs a theoretical model to explain the relationship between IFRS adoption, FDI and foreign aid. Using the SGMM estimation technique to check the issue of endogeneity and reverse causality, this relationship was examined on 92 countries for the period 2003-2012. Overall, IFRS adoption attracts more aid when conditioned on foreign aid; however, when disaggregating foreign aid, the effect of foreign aid on the nexus was contradictory, while multilateral aid flow was positive. This result remained consistent despite the battery of checks.

The Theoretical Relationships Among Foreign Direct Investments, Migration and IFRS Adoption
The Theoretical Relationships Among Foreign Direct Investments, Migration and IFRS Adoption

Author: David Anthony Procházka

Publisher:

Published: 2015

Total Pages: 16

ISBN-13:

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The globalization of the world economy is accompanied by changes in volume and structure of international trade, capital flows and human migration. The paper focuses on theoretical aspects of recent changes in the area of international harmonization of accounting through the adoption of the International Financial Reporting Standards (IFRS), migration and foreign direct investments with the emphasis on their mutual interdependencies.

Cultural Finance: A World Map Of Risk, Time And Money
Cultural Finance: A World Map Of Risk, Time And Money

Author: Thorsten Hens

Publisher: World Scientific

Published: 2020-10-29

Total Pages: 573

ISBN-13: 9811221960

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This book provides a comprehensive overview of the emerging field of cultural finance. It summarizes research results of cultural differences in financial decision making and financial markets. Many of the results have been published in leading academic journals over the last ten years but some are presented here for the first time. The book is based on an international survey on risk and time preferences — the INTRA study, conducted in 53 countries worldwide. Applications to financial markets include the equity premium puzzle, the value premium, dividend payout policies and asset allocations.

Did China's Adoption of IFRS Attract More Foreign Institutional Investment?
Did China's Adoption of IFRS Attract More Foreign Institutional Investment?

Author: Mark L. DeFond

Publisher:

Published: 2014

Total Pages: 54

ISBN-13:

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We examine the impact of China's IFRS adoption on foreign institutional investment. We find that foreign institutional investment does not increase after China's IFRS adoption, and some evidence that it actually declines, particularly among firms with weaker incentives to credibly implement IFRS, or with greater ability to manipulate IFRS's fair value provisions. We also find that the association between earnings and returns generally declines after IFRS adoption, consistent with reduced earnings quality. In addition, we find that foreign institutional investors' returns decline after China's IFRS adoption. Finally, the decline in foreign institutional investment is greater among investors from countries with weak institutions that have also adopted IFRS. Taken together, our evidence suggests that China's weak institutional infrastructure impairs IFRS's ability to improve financial reporting quality and increase foreign institutional investment.

International Accounting and Multinational Enterprises
International Accounting and Multinational Enterprises

Author: Lee H. Radebaugh

Publisher: John Wiley & Sons

Published: 2006-01-04

Total Pages: 520

ISBN-13: 0471652695

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This text presents international accounting within the context of managing multinational enterprises, focusing on business strategies and how accounting applies to these strategies. This unique approach gives students the opportunity to learn about international accounting from a perspective similar to what they will experience in the business world. The book explains the key factors that influence accounting standards and practices in different countires, and how those factors impact the convergence of standards worldwide. Particular emphasis is given to culture and its unique contribution to accounting standards and practices worldwide. The book focuses on the needs of users of financial and accounting information across borders with the aim of enhancing their understanding of how to use information and make more informed decisions in an increasingly complex and dynamic international business environment.