IFRS adoption and economic growth in developing economies
by Godfred Matthew Yaw Owusu; Susela Devi K. Suppiah; Nur Ashikin Mohd Saat; Siong Hook Law
International Journal of Economics and Accounting (IJEA), Vol. 11, No. 1, 2022

Abstract: We examine whether the adoption of International Financial Reporting Standards (IFRS) affects economic growth in developing economies and investigate the role that country-level institutional quality plays in the relationship. Using a panel data averaged over three non-overlapping years, from the period 1996 to 2013, for 78 developing countries and employing the efficient two-step system generalised methods of moment (GMM) estimation technique; we find that countries that adopt IFRS experience better economic growth than non-adopting countries. Our results also demonstrate that good institutions moderate the IFRS-economic growth nexus. Taken together, these findings suggest that IFRS adoption has important implications for economic growth.

Online publication date: Sat, 11-Dec-2021

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