IFRS adoption and economic growth in developing economies

• Main Authors: Owusu, Godfred Matthew Yaw, Suppiah, Susela Devi K., Mohd Saat, Nur Ashikin, Law, Siong Hook
• Format: Article
• Language: English
• Published: Inderscience Publishers 2021
• Online Access: http://psasir.upm.edu.my/id/eprint/97612/1/ABSTRACT.pdf; http://psasir.upm.edu.my/id/eprint/97612/; https://www.inderscienceonline.com/doi/abs/10.1504/IJEA.2022.119613

We examine whether the adoption of International Financial Reporting Standards (IFRS) affects economic growth in developing economies and investigate the role that country-level institutional quality plays in the relationship. Using a panel data averaged over three non-overlapping years, from the period 1996 to 2013, for 78 developing countries and employing the efficient two-step system generalised methods of moment (GMM) estimation technique; we find that countries that adopt IFRS experience better economic growth than non-adopting countries. Our results also demonstrate that good institutions moderate the IFRS-economic growth nexus. Taken together, these findings suggest that IFRS adoption has important implications for economic growth.