Adoption of international accounting standards and performance of emerging capital markets

Karim Mhedhbi and Daniel Zeghal

Review of Accounting and Finance, 2016, vol. 15, issue 2, 252-272

Abstract: Purpose - The purpose of this paper is to examine empirically the association between the adoption of international accounting standards (IAS/IFRS) and the performance of emerging capital markets. Design/methodology/approach - Data related to 31 developing countries with capital markets were used. The authors performed univariate analyses (means comparison before and after the use of IAS/IFRS), as well as multivariate analyses (estimation of models of panel data), to test the hypothetical relations set up in the paper. Findings - The results suggest that the performance of emerging capital markets is significantly and positively associated with IAS/IFRS use. They are consistent with several empirical investigations which highlighted the relevance of financial information under IAS/IFRS in emerging capital markets. Practical implications - Several organizations and decision-makers including the IASB, governments, capital markets regulators and international investors should find the policy implications of this paper very meaningful. Originality/value - To the best of the authors’ knowledge, the relationship between the use of IAS/IFRS and the performance of emerging capital markets based on a group of countries has not yet been explored.

Keywords: Developing countries; Accounting; Performance of capital markets; International accounting standards (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:rafpps:v:15:y:2016:i:2:p:252-272

DOI: 10.1108/RAF-08-2013-0099

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