The Effects of IFRS Adoption on Economic Growth: a cross-country study
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Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
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Author
Date
2023
Department
Major/Subject
Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
46+8
Series
Abstract
Objectives The main objective of this study was to conduct an examination of the actual advantages that accrue from the adoption of International Financial Reporting Standards (IFRS) on a national level. Summary The International Financial Reporting Standards (IFRS) have been widely adopted since the early 2000s, and numerous studies have investigated their benefits at the firm level. However, little attention has been paid to whether these benefits actually lead to economic growth in the long-term. This study aims to address this gap by examining the effects of IFRS adoption on a country-level economic scale, using GDP growth as proxy for economic growth. By doing so, this study aims to provide a more comprehensive understanding of the effects of IFRS adoption beyond the firm level, contributing to existing literature on the topic and informing policymakers, regulators, and other stakeholders involved in financial reporting standards. Conclusions The study finds no evidence supporting IFRS adoption boosting the economic growth of nations, other than for developing countries. This poses the question if IFRS adoption is as beneficial as often theorized.Description
Thesis advisor
Stepanov, RomanKeywords
financial statements, accounting, accounting standards, agency theory, economic growth
