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International Accounting Standards and Foreign Direct Investment

Author

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  • Gene Johnson
  • Tam Vu
  • Eric Im

Abstract

This paper examines the impact of the International Financial Reporting Standard (IFRS) adoption on Foreign Direct Investment (FDI) inflows. An annual panel dataset of 136 countries from 2002 to 2013 are used. Based on several preliminary tests, we perform random effect instrumental variable estimations on the dataset. We find that IFRS adoption has positive effect on FDI inflows, both directly and indirectly through interaction with regulatory quality. The results are robust to several alternative models with different governance-indicator variables.

Suggested Citation

  • Gene Johnson & Tam Vu & Eric Im, 2016. "International Accounting Standards and Foreign Direct Investment," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 2(3), pages 143-150.
    • Handle: RePEc:rss:jnljbs:v2i3p3
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Abdullah Al FAISAL & Mohammed Saiful ISLAM, 2022. "The impact of foreign direct investment on the economy of Bangladesh: A time-series analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(630), S), pages 123-142, Spring.

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    Keywords

    IFRS; FDI; governance; corruption;
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