DeFond, Mark L.
[Verfasser:in]
;
Hu, Xuesong
[Sonstige Person, Familie und Körperschaft];
Hung, Mingyi
[Sonstige Person, Familie und Körperschaft];
Li, Siqi
[Sonstige Person, Familie und Körperschaft]
The Impact of Mandatory IFRS Adoption on Foreign Mutual Fund Ownership
Erschienen in:SCU Leavey School of Business Research Paper ; No. 09-06
Umfang:
1 Online-Ressource (48 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1473889
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 9, 2010 erstellt
Beschreibung:
Proponents of International Financial Reporting Standards (IFRS) argue that mandating a uniform set of accounting standards improves financial statement comparability that in turn attracts greater cross-border investment. Our study tests this assertion by examining the change in foreign mutual fund investment in firms that began using IFRS after its mandatory adoption in the European Union (EU) in 2005. We hypothesize that firms experience larger increases in foreign mutual fund ownership when there is a credible increase in uniformity from IFRS adoption. We define a credible increase in uniformity as a large increase in the number of industry peers using the same accounting standards in countries where IFRS is credibly implemented. Consistent with our hypothesis, we find that subsequent to mandatory IFRS adoption, the increase in foreign mutual fund investment is greater among the firms that experience relatively large increases in uniformity and are in countries with strong implementation credibility