Assessing the Effects of IFRS Adoption on Economic Growth: A Cross Country Study

Yıl 2016, Cilt: 2 Sayı: 2, 65 - 80, 31.12.2016

Ahmet Özcan

Öz

As the world economy is becoming much more globalized than before, International Financial Reporting Standards grabs too much attention from academicians and practitioners. International Financial Reporting Standards is a set of accounting standards stating how economic transactions should be reported in financial statements. International Financial Reporting Standards play a vital role in functioning of the global economy. International Financial Reporting Standards enable investors to compare financial position and performance across firms. The adoption of International Financial Reporting Standards affects economy in so many ways. A major driver for IFRS adoption by countries is the desire to integrate into the global economy. Some of previous research studies show that the adoption of International Financial Reporting Standards has a positive impact on the economic growth. In this paper, it is investigated whether the adoption of IFRS fosters countries’ economic growth. The research hypothesis is that the implementation of IFRS significantly improves economic growth rate. In this study, panel data regression analysis is used to test relationship between the adoption of International Financial Reporting Standards and economic development. The gross domestic product is used as an independent variable. The results yielded by the empirical analysis enable us to analyze the economic benefits of IFRS adoption in the global economy.        

Anahtar Kelimeler

International Financial Reporting Standards, Economic Growth, Accounting Policy

Kaynakça

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