Abstract

https://ssrn.com/abstract=1065859
 
 

References (32)



 
 

Citations (69)



 


 



Home Bias, Foreign Mutual Fund Holdings, and the Voluntary Adoption of International Accounting Standards


VICENTIU M. COVRIG


affiliation not provided to SSRN

Mark L. DeFond


University of Southern California


Journal of Accounting Research, Vol. 45, Issue 1, pp. 41-70, March 2007

Abstract:     
We test the assertion that a consequence of voluntarily adopting International Accounting Standards (IAS) is the enhanced ability to attract foreign capital. Using a unique database that reports firm-level holdings of over 25,000 mutual funds from around the world, our multivariate tests find that average foreign mutual fund ownership is significantly higher among IAS adopters. We also find that IAS adopters in poorer information environments and with lower visibility have higher levels of foreign investment, consistent with firms using IAS adoption to provide more information and/or information in a more familiar form to foreign investors. Taken together, our findings are consistent with voluntary IAS adoption reducing home bias among foreign investors and thereby improving capital allocation efficiency.

Number of Pages in PDF File: 30


Date posted: December 11, 2007  

Suggested Citation

COVRIG, VICENTIU M. and DeFond, Mark L., Home Bias, Foreign Mutual Fund Holdings, and the Voluntary Adoption of International Accounting Standards. Journal of Accounting Research, Vol. 45, Issue 1, pp. 41-70, March 2007. Available at SSRN: https://ssrn.com/abstract=1065859 or http://dx.doi.org/10.1111/j.1475-679X.2007.00226.x

Contact Information

VICENTIU M. COVRIG (Contact Author)
affiliation not provided to SSRN
No Address Available
Mark L. DeFond
University of Southern California
Los Angeles, CA 90089
United States
Feedback to SSRN


Paper statistics
Abstract Views: 814
Downloads: 13
References:  32
Citations:  69