Abstract

http://ssrn.com/abstract=751264
 
 

References (46)



 
 

Citations (21)



 


 



Empirical Evidence on Jurisdictions that Adopt IFRS


Ole-Kristian Hope


University of Toronto - Rotman School of Management

Justin Yiqiang Jin


McMaster University - DeGroote School of Business

Tony Kang


McMaster University - DeGroote School of Business

May 24, 2006


Abstract:     
International Financial Reporting Standards (IFRS) have recently been adopted in a number of jurisdictions, including the European Union. Despite the importance of IFRS in the context of global accounting standards harmonization, little is known regarding what institutional factors influence countries' decisions to voluntarily adopt IFRS. This issue is relevant to standard setters because a better understanding of the motivations for adoption will enable them to promote IFRS more effectively to countries that currently do not employ IFRS. Consistent with bonding theory, we find that countries with weaker investor protection mechanisms are more likely to adopt IFRS. Our evidence also shows that jurisdictions that are perceived to provide better access to their domestic capital markets are more likely to adopt IFRS. Taken together, our results are consistent with the view that IFRS represent a vehicle through which countries can improve investor protection and make their capital markets more accessible to foreign investors.

Number of Pages in PDF File: 33

Keywords: International Financial Reporting Standards, Bonding, Capital Market Access

JEL Classification: G15, M41, M44, M47, G38

working papers series


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Date posted: July 19, 2005  

Suggested Citation

Hope, Ole-Kristian and Jin, Justin Yiqiang and Kang, Tony, Empirical Evidence on Jurisdictions that Adopt IFRS (May 24, 2006). Available at SSRN: http://ssrn.com/abstract=751264 or http://dx.doi.org/10.2139/ssrn.751264

Contact Information

Ole-Kristian Hope
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6
Canada
HOME PAGE: http://www.rotman.utoronto.ca/FacultyAndResearch/Faculty/FacultyBios/Hope.aspx
Justin Y. Jin
McMaster University - DeGroote School of Business ( email )
1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada
905-525-9140 ext. 26194 (Phone)
905-521-8995 (Fax)
Tony Kang (Contact Author)
McMaster University - DeGroote School of Business ( email )
1280 Main Street West
Hamilton, ON L8S 4M4
Canada
905-525-9140 x23846 (Phone)
905-521-8995 (Fax)
HOME PAGE: http://www.degroote.mcmaster.ca/profiles/tony-kang/
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