 IFRS, financial development and income inequality: An empirical study using mediation analysisOrhan Akisik and Graham Gal Economic Systems, 2023, vol. 47, issue 2 Abstract: Income inequality continues to be an issue of concern. Early work on economic development suggested that, as a country’s economy grows, incomes would rise and reduce any income disparities. However, there is growing evidence that as countries develop, income inequality actually worsens. Some studies argue that this is the result of financial development and the growth of the financial sector. Although there is a good deal of empirical research on the relationship between financial development and income inequality, there is no prior work that examines how accounting standards, in particular International Financial Reporting Standards (IFRS), might influence this relationship. This study examines the relationship of IFRS and financial development with income inequality using mediation analysis over the period from 1998 to 2018. The results indicate that the impact of IFRS on income inequality is mediated by financial development. Moreover, there is a direct relationship between IFRS and inequality. Keywords: IFRS; Income inequality; Financial development; Mediation analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:47:y:2023:i:2:s0939362522001315 DOI: 10.1016/j.ecosys.2022.101069 Access Statistics for this article Economic Systems is currently edited by R. Frensch More articles in Economic Systems from Elsevier Contact information at EDIRC. |
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