IFRS adoption and economic growth in developing economies

We examine whether the adoption of International Financial Reporting Standards (IFRS) affects economic growth in developing economies and investigate the role that country-level institutional quality plays in the relationship. Using a panel data averaged over three non-overlapping years, from the pe...

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Main Authors: Owusu, Godfred Matthew Yaw, Suppiah, Susela Devi K., Mohd Saat, Nur Ashikin, Law, Siong Hook
Format: Article
Language:English
Published: Inderscience Publishers 2021
Online Access:http://psasir.upm.edu.my/id/eprint/97612/
http://psasir.upm.edu.my/id/eprint/97612/1/ABSTRACT.pdf
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author Owusu, Godfred Matthew Yaw
Suppiah, Susela Devi K.
Mohd Saat, Nur Ashikin
Law, Siong Hook
author_facet Owusu, Godfred Matthew Yaw
Suppiah, Susela Devi K.
Mohd Saat, Nur Ashikin
Law, Siong Hook
author_sort Owusu, Godfred Matthew Yaw
building UPM Institutional Repository
collection Online Access
description We examine whether the adoption of International Financial Reporting Standards (IFRS) affects economic growth in developing economies and investigate the role that country-level institutional quality plays in the relationship. Using a panel data averaged over three non-overlapping years, from the period 1996 to 2013, for 78 developing countries and employing the efficient two-step system generalised methods of moment (GMM) estimation technique; we find that countries that adopt IFRS experience better economic growth than non-adopting countries. Our results also demonstrate that good institutions moderate the IFRS-economic growth nexus. Taken together, these findings suggest that IFRS adoption has important implications for economic growth.
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spelling upm-976122022-07-25T03:58:49Z http://psasir.upm.edu.my/id/eprint/97612/ IFRS adoption and economic growth in developing economies Owusu, Godfred Matthew Yaw Suppiah, Susela Devi K. Mohd Saat, Nur Ashikin Law, Siong Hook We examine whether the adoption of International Financial Reporting Standards (IFRS) affects economic growth in developing economies and investigate the role that country-level institutional quality plays in the relationship. Using a panel data averaged over three non-overlapping years, from the period 1996 to 2013, for 78 developing countries and employing the efficient two-step system generalised methods of moment (GMM) estimation technique; we find that countries that adopt IFRS experience better economic growth than non-adopting countries. Our results also demonstrate that good institutions moderate the IFRS-economic growth nexus. Taken together, these findings suggest that IFRS adoption has important implications for economic growth. Inderscience Publishers 2021 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/97612/1/ABSTRACT.pdf Owusu, Godfred Matthew Yaw and Suppiah, Susela Devi K. and Mohd Saat, Nur Ashikin and Law, Siong Hook (2021) IFRS adoption and economic growth in developing economies. International Journal of Economics and Accounting, 11 (1). pp. 1-18. ISSN 2041-868X; ESSN: 2041-8698 https://www.inderscienceonline.com/doi/abs/10.1504/IJEA.2022.119613 10.1504/IJEA.2022.119613
spellingShingle Owusu, Godfred Matthew Yaw
Suppiah, Susela Devi K.
Mohd Saat, Nur Ashikin
Law, Siong Hook
IFRS adoption and economic growth in developing economies
title IFRS adoption and economic growth in developing economies
title_full IFRS adoption and economic growth in developing economies
title_fullStr IFRS adoption and economic growth in developing economies
title_full_unstemmed IFRS adoption and economic growth in developing economies
title_short IFRS adoption and economic growth in developing economies
title_sort ifrs adoption and economic growth in developing economies
url http://psasir.upm.edu.my/id/eprint/97612/
http://psasir.upm.edu.my/id/eprint/97612/
http://psasir.upm.edu.my/id/eprint/97612/
http://psasir.upm.edu.my/id/eprint/97612/1/ABSTRACT.pdf