Convergence of Accounting Standards and Foreign Direct Investment

Jieping Chen (First Author), Yuan Ding (Participant Author), Bin Xu (Participant Author)

科研成果: 期刊稿件期刊论文

摘要

Since the development of the eclectic paradigm by Dunning (1977, 1988, 1993), many studies have investigated different forms of location advantages that attract foreign direct investment (FDI). In this study, we consider accounting standards as a component of the institutional infrastructure of a location and hypothesize that the convergence of domestic and International Financial Reporting Standards (IFRS) promotes FDI as it reduces information processing costs for foreign investors.2 We also hypothesize that the effect of reduced information costs is stronger for partner countries whose accounting systems showed greater pre-convergence differences because they magnify the facilitating role of accounting standard convergence for FDI. Using bilateral FDI data from 30 OECD countries between 2000 and 2005, we find evidence generally consistent with these hypotheses.
源语言英语
页(从-至)53-86
期刊International Journal of Accounting
49
1
DOI
出版状态已出版 - 2014

关键词

  • Accounting harmonization
  • Foreign direct investment
  • IFRS
  • Location
  • OECD

成果物的来源

  • ABDC-A
  • Scopus

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