Analyzing the effect of using international accounting standards on the development of emerging capital markets

Daniel Zeghal and Karim Mhedhbi

International Journal of Accounting & Information Management, 2012, vol. 20, issue 3, 220-237

Abstract: Purpose - The purpose of this paper is to analyze the consequences of using international accounting standards (IAS/IFRS) for the development of capital markets located in developing countries (emerging capital markets). Design/methodology/approach - The authors conduct an empirical study using a sample of 38 developing countries with capital markets, starting by comparing the means of the different measures studied before and after the use of IAS/IFRS. A multivariate statistical analysis is conducted based on the estimation of a model of panel data with fixed effects. Findings - The results show that the development of the emerging capital markets is positively and significantly associated with the use of international accounting standards. Practical implications - The paper's findings are of interest to several different parties, primarily the national accounting standardization body, the IASB, many international organizations and international investors. Originality/value - The paper describes an empirical study, conducted on a group of developing countries, which provides a better understanding of the potential consequences of the use of IASB standards. The paper is also a meaningful contribution to the international accounting literature, as it examines an interesting subject that has not yet been investigated.

Keywords: Developing countries; Capital markets; Accounting standards; International standards; Emerging economies; Accounting; International accounting standards; Economic consequences (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijaimp:v:20:y:2012:i:3:p:220-237

DOI: 10.1108/18347641211245100

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