How Does Foreign Aid Affect the Relationship between IFRS Adoption and Foreign Direct Investment?

Uchenna Efobi and Matthias Nnadi
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Matthias Nnadi: Cranfield University, UK

No 15/014, Research Africa Network Working Papers from Research Africa Network (RAN)

Abstract: This paper constructs a theoretical model to explain the relationship between IFRS adoption, FDI and foreign aid. Using the SGMM estimation technique to check the issue of endogene-ity and reverse causality, this relationship was examined on 92 countries for the period 2003-2012. Overall, IFRS adoption attracts more aid when conditioned on foreign aid; however, when disaggregating foreign aid, the effect of foreign aid on the nexus was contradictory, while multilateral aid flow was positive. This result remained consistent despite the battery of checks.

Keywords: Accounting Standards; Foreign Aid; Foreign Direct Investment; Globalisation; IFRS Adoption (search for similar items in EconPapers)
Pages: 36
Date: 2015-05
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Citations: View citations in EconPapers (9)

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http://publications.resanet.org/RePEc/abh/abh-wpap ... adi_TIJA_revised.pdf Revised version, 2015 (application/pdf)

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Working Paper: How Does Foreign Aid Affect the Relationship between IFRS Adoption and Foreign Direct Investment? (2015)
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