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The Relative Success of IFRS Adopted African Countries to Attract Foreign Investment

Author

Listed:
  • Oberholzer Merwe

    (North-West University, South Africa)

  • Omotoso Matthew Olubayo

    (North-West University, South Africa)

  • Schutte Danie

    (North-West University, South Africa)

  • Buys Pieter

    (North-West University, South Africa)

Abstract

Within the context that the adoption of International Financial Reporting Standards (IFRS) can be linked to institutional isomorphism, the purpose of the study was to determine how successful IFRS-adopted African countries are to convert governance and economic factors into foreign direct investment (FDI) and foreign portfolio investment (FPI). Data envelopment analysis (DEA) was used to develop two models to calculate the technical efficiency (TE) for 16 African countries that adopted IFRS (2014-2019). The first model considered how multiple economic factors as input variables are converted into FDI and FPI, while similarly, the second model considered governance factors as input variables.

Suggested Citation

  • Oberholzer Merwe & Omotoso Matthew Olubayo & Schutte Danie & Buys Pieter, 2022. "The Relative Success of IFRS Adopted African Countries to Attract Foreign Investment," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 67(1), pages 44-62, April.
    • Handle: RePEc:vrs:subboe:v:67:y:2022:i:1:p:44-62:n:3
    DOI: 10.2478/subboec-2022-0004
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    References listed on IDEAS

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    More about this item

    Keywords

    International Financial Reporting Standards (IFRS); foreign direct investment (FDI); foreign portfolio investment (FPI); data envelopment analysis (DEA); institutional isomorphism;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • F18 - International Economics - - Trade - - - Trade and Environment
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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