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The implications of IFRS adoption on foreign direct investment in poor countries

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  • Catalina Florentina PRICOPE

    (Bucharest University of Economic Studies)

Abstract

Globalisation has contributed to the acceleration of international capital transactions and has increased investors’ need to access homogeneous, reliable and comparable financial reports. The objective of the study is to investigate the impact of International Financial Reporting Standards adoption on foreign direct investment flows in poor countries. In order to achieve this objective, the propensity score matching method was applied on a sample of 38 poor countries between 2008 and 2014. Results indicate that International Financial Reporting Standards adoption has a positive impact on foreign direct investment flows in poor countries.

Suggested Citation

  • Catalina Florentina PRICOPE, 2017. "The implications of IFRS adoption on foreign direct investment in poor countries," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(146), pages 218-218.
    • Handle: RePEc:aud:audfin:v:15:y:2017:i:146:p:218
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    References listed on IDEAS

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    More about this item

    Keywords

    IFRS adoption; foreign direct investment; poor countries; propensity score matching;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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