Causal Relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI): A Panel Data Analysis of ASEAN Countries

Maryam Yousefinejad · Fairuz Md. Salleh · Ruzita Abdul Rahim

19 citations0/0 files storedAsian Journal of Accounting and Governance

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance International Business and FDI Accounting Theory and Financial Reporting

Abstract

This study investigates the causal relationship between International Financial Reporting Standard (IFRS) adoption and Foreign Direct Investment (FDI) inflows in ASEAN countries during the period of 2001 to 2016. This study applies panel co-integration and causality test to examine the short and long run and causal relationship between variables. IFRS adoption was measured based on dummy variable in Model 1 and level of IFRS compliance in Model 2. Findings of this study confirm the presence of co-integration between variables and the Dynamic Ordinary Least Square (DOLS) estimation analysis reveals positive and significant relationship between IFRS adoption, based on both measures and FDI inflows. Furthermore, the causality test shows that there is short run causality from IFRS to FDI inflows and long run causality between variables. This study extends knowledge on the relationship between IFRS adoption and FDI inflows by examining this relationship in the setting of ASEAN countries. Findings of this study could be useful for countries which are IFRS adopter and also non-adopters to understand the economic consequences of IFRS adoption, in their effort to attract more investors so as to accelerate economic growth.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 19 citations exist upstream.

References

1969Investigating Causal Relations by Econometric Models and Cross-spectral Methods 2002Unit root tests in panel data: asymptotic and finite-sample properties 1999Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors 2007Accounting Information, Disclosure, and the Cost of Capital 2008Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences 2004On the estimation and inference of a cointegrated regression in panel data 2002The Geography of Equity Listing: Why Do Companies List Abroad?2011Does Mandatory Adoption of IFRS Improve Accounting Quality? Preliminary Evidence

Cited by

2022Inward FDI, IFRS Adoption and Institutional Quality: Insights from the MENA Countries 2023Impact of mandatory IFRS adoption on economic growth: the moderating role of Covid-19 crisis in developing countries 2022Factors Influencing Cryptocurrency Awareness Among Young Working Adults in Malaysia: A Conceptual Paper

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.