|
|
|
|
||||
|
||||
The Impact of Mandatory IFRS Adoption on Foreign Mutual Fund Ownership: The Role of ComparabilityMark L. DeFondUniversity of Southern California - Leventhal School of Accounting Xuesong HuUniversity of Oregon - Department of Accounting Mingyi HungThe Hong Kong University of Science and Technology & University of Southern California Siqi LiSanta Clara University - Leavey School of Business May, 15 2011 Journal of Accounting & Economics (JAE), Vol. 51, No. 3, 2011 Abstract: Proponents of IFRS argue that mandating a uniform set of accounting standards improves financial statement comparability that in turn attracts greater cross-border investment. We test this assertion by examining changes in foreign mutual fund investment in firms following mandatory IFRS adoption in the European Union in 2005. We measure improved comparability as a credible increase in uniformity, defined as a large increase in the number of industry peers using the same accounting standards in countries with credible implementation. Consistent with this assertion, we find that foreign mutual fund ownership increases when mandatory IFRS adoption leads to improved comparability.
Keywords: Comparability, Uniformity, IFRS, Mutual Funds, Foreign Investment JEL Classification: M40, M41, G15, G18, G23 Accepted Paper SeriesDate posted: May 16, 2011Suggested CitationContact Information
|
|
||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo1 in 0.281 seconds
