IFRS and FPI nexus: does the quality of the institutional framework matter for African countries?

IF 3.2 Q1 BUSINESS, FINANCE
Chipo Simbi, Jacqueline A. Arendse, S. Khumalo
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引用次数: 1

Abstract

PurposeThe institutional framework of an African country may influence the effectiveness of the International Financial Reporting Standards (IFRS) on foreign investment inflows. The purpose of this paper is to argue that the quality of a country's institutional framework impacts the effectiveness of IFRS to an adopting country and ultimately influences the levels of Foreign Portfolio Investment (FPI).Design/methodology/approachEmploying country-level data. A sample of 15 countries from Africa is used. Data is collected over a period of 22 years (1994–2014). The authors employ the General Method of Moments (GMM) panel regression technique to examine whether the quality of a country's institutional framework has an impact on the relationship between IFRS and FPI and the Propensity Score Matching (PSM) technique to assess the level of impact.FindingsThe findings reveal that the quality of a country's institutional framework moderates the strength of the association between IFRS and FPI. Overall, the authors find that the quality of the institutional frameworks in African countries has a negative effect on the IFRS and FPI nexus.Research limitations/implicationsThe study focuses exclusively on African countries; using an exclusively African sample limits the generalisation of results to other continents like Latin America with similar environments to Africa.Practical implicationsThis study provide evidence that IFRS alone cannot ensure the intended capital market benefits but encourages the development of strong institutions in African countries to realise the most from IFRS adoption. The emphasis on institutional development is an essential contribution that this study makes.Originality/valueThis study is unique since it emphasises the importance of institutional framework quality when considering the impact of IFRS on foreign investment inflows in an African setting.
《国际财务报告准则》和FPI的关系:体制框架的质量对非洲国家重要吗?
目的非洲国家的制度框架可能会影响国际财务报告准则(IFRS)对外国投资流入的有效性。本文的目的是论证一个国家制度框架的质量会影响国际财务报告准则对采用国的有效性,并最终影响外国证券投资(FPI)的水平。设计/方法/方法采用国家级数据。样本来自非洲的15个国家。数据收集时间为22年(1994-2014)。作者采用一般矩量法(GMM)面板回归技术来检验一个国家制度框架的质量是否对IFRS和FPI之间的关系产生影响,并使用倾向得分匹配(PSM)技术来评估影响程度。研究结果表明,一个国家的制度框架的质量调节了IFRS和FPI之间的关联强度。总体而言,作者发现非洲国家制度框架的质量对IFRS和FPI之间的关系有负面影响。研究局限/影响本研究只关注非洲国家;仅使用非洲样本限制了将结果推广到与非洲环境相似的其他大陆,如拉丁美洲。实际意义本研究提供的证据表明,国际财务报告准则本身不能确保预期的资本市场收益,但鼓励非洲国家发展强大的制度,以从采用国际财务报告准则中实现最大收益。强调制度发展是本研究的重要贡献。原创性/价值本研究的独特之处在于,在考虑国际财务报告准则对非洲环境下外国投资流入的影响时,它强调了制度框架质量的重要性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
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