scholarly journals International financial reporting standards, domestic debt finance and institutional quality: Evidence from developing countries

2021 ◽  
Author(s):  
Vincent Tawiah ◽  
Ernest Gyapong
Keyword(s):  
Developing Countries ◽  
Financial Reporting ◽  
Institutional Quality ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Domestic Debt ◽  
Debt Finance ◽  
Quality Evidence

scholarly journals INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION, INVESTOR PROTECTION, AND FOREIGN PORTFOLIO INVESTMENT: A REVIEW

2021 ◽  
pp. 17-38
Keyword(s):  
Developing Countries ◽  
Financial Reporting ◽  
Investor Protection ◽  
International Financial Reporting Standards ◽  
Regulatory Environment ◽  
Portfolio Investment ◽  
Reporting Standards ◽  
Foreign Portfolio Investment ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

This paper aims to analyze the impacts of International Financial Reporting Standards (IFRS) adoption on foreign portfolio investment (FPI) in relation to investor protection based on existing empirical literature. This study uses a historical approach and focuses on thirty-six relevant articles published in accounting and finance journals. The author provides a theoretical groundwork of the association between IFRS adoption and FPI and summarizes the results. The findings are critically analyzed by employing developed vs. developing country lens. The review study reveals that the effects of IFRS adoption on FPI significantly differ between developed and developing countries. Although the positive impact of IFRS adoption on FPI is documented in existing literature, not all countries (particularly developing countries), firms, and users have benefited or equally benefited from IFRS adoption regarding FPI. In addition, the positive impacts of IFRS adoption on FPI are associated with the country's regulatory environment, such as level of investor protection. The findings of the study suggest that developing countries should ensure a proper regulatory environment to reap the full benefits of IFRS adoption. This review contributes to the existing literature by providing a comparative analysis of IFRS adoption effect on FPI between developed and developing countries while also suggests future research avenues.

scholarly journals FINANCIAL REPORTING STANDARDS ADOPTION AND FOREIGN DIRECT INVESTMENT IN NIGERIA AS MODERATED BY INSTITUTIONAL QUALITY

2021 ◽  
Vol 4 (2) ◽  
pp. 66-92
Author(s):  
James Neminebor ◽  
◽  
Suleiman Aruwa ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Institutional Quality ◽  
Political Stability ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Ex Post ◽  
Ex Post Facto

The adoption of IFRS enhanced the transparency of stewardship reporting and thus improved the investment ability of countries affected. The study examined the moderating effect of institutional quality on the relationship between international financial reporting standards and foreign direct investment in Nigeria from 2012 to 2018 Institutional quality was measured by political stability and control of corruption while foreign direct investment was measured by foreign investment on equity, foreign portfolio investment on money market and foreign direct investment on trade credits. Ex-post facto research design was adopted and the Generalised Methods of Moments (GMM) was used for the analysis. The study found that with the aid of institutional quality, the IFRS has a significant effect on investment inflows in Nigeria. The study concludes that international financial reporting standards has a significant influence on foreign direct investment with strengthened institution and anticorruption efforts in Nigeria. Therefore, the study recommends that the Nigerian government should strengthen its institutional mechanisms to fully benefit from the adoption of IFRS and drive inflows of foreign direct investment.

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