The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability

• 成果类型: Article
• 署名作者: DeFond, Mark; Hu, Xuesong; Hung, Mingyi; Li, Siqi
• 署名单位: University of Southern California; University of Oregon; Santa Clara University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2011.02.001
• 发表日期: 2011
• 关键词: international accounting standards; HOME BIAS

摘要

Proponents of IFRS argue that mandating a uniform set of accounting standards improves financial statement comparability that in turn attracts greater cross-border investment. We test this assertion by examining changes in foreign mutual fund investment in firms following mandatory IFRS adoption in the European Union in 2005. We measure improved comparability as a credible increase in uniformity, defined as a large increase in the number of industry peers using the same accounting standards in countries with credible implementation. Consistent with this assertion, we find that foreign mutual fund ownership increases when mandatory IFRS adoption leads to improved comparability. (C) 2011 Elsevier B.V. All rights reserved.