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Adoption of the International Financial Reporting Standards (IFRS) on companies’ financing structure in emerging economies

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  • dos Santos, Marco Aurélio
  • Fávero, Luiz Paulo Lopes
  • Distadio, Luiz Fernando

Abstract

This paper aims to study the relationship between the adoption of the International Financial Reporting Standards (IFRS) and the companies’ financing structure in different emerging economies. A linear hierarchical regression model is applied, considering firm, country and region levels, in a database of 150,265 observations of companies from 145 countries between 2003 and 2014. The impact of the adoption of IFRS in financing decisions is heterogeneous among companies from different regions and countries. This effect is clearer when country controls are applied to monitor the legal enforcement and investor safety, such as the quality of the boards and accounting audits.

Suggested Citation

  • dos Santos, Marco Aurélio & Fávero, Luiz Paulo Lopes & Distadio, Luiz Fernando, 2016. "Adoption of the International Financial Reporting Standards (IFRS) on companies’ financing structure in emerging economies," Finance Research Letters, Elsevier, vol. 16(C), pages 179-189.
    • Handle: RePEc:eee:finlet:v:16:y:2016:i:c:p:179-189
    DOI: 10.1016/j.frl.2015.11.002
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    Cited by:

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    2. repec:mth:ijafr8:v:8:y:2018:i:2:p:278-292 is not listed on IDEAS
    3. Benkraiem, Ramzi & Gaaya, Safa & Lakhal, Faten & Lakhal, Nadia, 2023. "Economic policy uncertainty, investor protection, and the value of excess cash: A cross-country comparison," Finance Research Letters, Elsevier, vol. 52(C).
    4. Onali, Enrico & Ginesti, Gianluca & Ballestra, Luca Vincenzo, 2017. "Investor reaction to IFRS for financial instruments in Europe: The role of firm-specific factors," Finance Research Letters, Elsevier, vol. 21(C), pages 72-77.

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    More about this item

    Keywords

    IFRS; Financing structure; Multilevel models; Emerging market firms;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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