Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries
This study investigates the causal relationship between International Financial Reporting Standard (IFRS) adoption and Foreign Direct Investment (FDI) inflows in ASEAN countries during the period of 2001 to 2016. This study applies panel co-integration and causality test to examine the short and lon...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://journalarticle.ukm.my/19723/1/28738-91513-1-PB.pdf |
| _version_ | 1796933118086610944 |
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| author | Yousefinejad, Maryam Azlina Ahmad, Fairuz Md. Salleh, Ruzita Abdul Rahim, |
| author_facet | Yousefinejad, Maryam Azlina Ahmad, Fairuz Md. Salleh, Ruzita Abdul Rahim, |
| author_sort | Yousefinejad, Maryam |
| collection | UKM |
| description | This study investigates the causal relationship between International Financial Reporting Standard (IFRS) adoption and Foreign Direct Investment (FDI) inflows in ASEAN countries during the period of 2001 to 2016. This study applies panel co-integration and causality test to examine the short and long run and causal relationship between variables. IFRS adoption was measured based on dummy variable in Model 1 and level of IFRS compliance in Model 2. Findings of this study confirm the presence of co-integration between variables and the Dynamic Ordinary Least Square (DOLS) estimation analysis reveals positive and significant relationship between IFRS adoption, based on both measures and FDI inflows. Furthermore, the causality test shows that there is short run causality from IFRS to FDI inflows and long run causality between variables. This study extends knowledge on the relationship between IFRS adoption and FDI inflows by examining this relationship in the setting of ASEAN countries. Findings of this study could be useful for countries which are IFRS adopter and also non-adopters to understand the economic consequences of IFRS adoption, in their effort to attract more investors so as to accelerate economic growth. |
| first_indexed | 2024-03-06T04:42:16Z |
| format | Article |
| id | ukm.eprints-19723 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:42:16Z |
| publishDate | 2018 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-197232022-09-15T01:41:01Z http://journalarticle.ukm.my/19723/ Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries Yousefinejad, Maryam Azlina Ahmad, Fairuz Md. Salleh, Ruzita Abdul Rahim, This study investigates the causal relationship between International Financial Reporting Standard (IFRS) adoption and Foreign Direct Investment (FDI) inflows in ASEAN countries during the period of 2001 to 2016. This study applies panel co-integration and causality test to examine the short and long run and causal relationship between variables. IFRS adoption was measured based on dummy variable in Model 1 and level of IFRS compliance in Model 2. Findings of this study confirm the presence of co-integration between variables and the Dynamic Ordinary Least Square (DOLS) estimation analysis reveals positive and significant relationship between IFRS adoption, based on both measures and FDI inflows. Furthermore, the causality test shows that there is short run causality from IFRS to FDI inflows and long run causality between variables. This study extends knowledge on the relationship between IFRS adoption and FDI inflows by examining this relationship in the setting of ASEAN countries. Findings of this study could be useful for countries which are IFRS adopter and also non-adopters to understand the economic consequences of IFRS adoption, in their effort to attract more investors so as to accelerate economic growth. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19723/1/28738-91513-1-PB.pdf Yousefinejad, Maryam and Azlina Ahmad, and Fairuz Md. Salleh, and Ruzita Abdul Rahim, (2018) Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries. Asian Journal of Accounting and Governance, 10 . pp. 61-72. ISSN 2180-3838 https://ejournal.ukm.my/ajac/issue/view/1139/showToc |
| spellingShingle | Yousefinejad, Maryam Azlina Ahmad, Fairuz Md. Salleh, Ruzita Abdul Rahim, Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries |
| title | Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries |
| title_full | Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries |
| title_fullStr | Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries |
| title_full_unstemmed | Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries |
| title_short | Causal relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) : a panel data analysis of ASEAN countries |
| title_sort | causal relationship between international financial reporting standard ifrs and foreign direct investment fdi a panel data analysis of asean countries |
| url | http://journalarticle.ukm.my/19723/1/28738-91513-1-PB.pdf |
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