Does the adoption of IFRS promote emerging stock markets development? Evidence from MENA countries

Klibi, Mohamed Faker; Kossentini, Anas

doi:10.1504/ijaape.2014.064242

Cited by 16 publications

(13 citation statements)

References 35 publications

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“…We also found that the legal system was positive and significant at the 1% level. This was consistent with prior research such as Klibi and Kossentini (2014) who found that in common law countries, the level of investor protection is relatively high and, this encourages investors to actively participate in the stock market, and this could lead to an improvement in the development of the stock market. Finally, we found that the coefficients on macroeconomic stability and the adoption of the IFRS were insignificant, suggesting that these variables had no impact on stock market development.…”

Section: Empirical Results and Discussionsupporting

confidence: 91%

“…The literature examined the impact of the IFRS on the development of capital markets (Zeghal & Mhedhbi, 2012;Klibi & Kossentini, 2014;Ben Othman & Kossentini, 2015;Emudainohwo, 2020). A consistent finding across these studies was that the adoption of the IFRS has a positive impact on the development of emerging markets.…”

Section: Literature Reviewmentioning

confidence: 94%

“…The adoption of the IFRS (ADOPIFRS): Hope et al (2006) argued that IFRS adoption improves the quality of financial reports; disclosure policies and enhances the integration of domestic markets into world markets, and therefore accelerates economic growth. Many studies found a positive impact of the adoption of IFRS on stock market development (e.g., Zeghal & Mhedhbi, 2012;Klibi & Kossentini, 2014;Ben Othman & Kossentini, 2015;Emudainohwo, 2020). In our research, we used a dummy variable equals 1 for companies which adopted the IFRS and 0 otherwise.…”

Section: Level Of Investment (Inv)mentioning

confidence: 99%

“…Poor compliance with contracts can influence investors' willingness to commit their wealth to fund projects. Klibi and Kossentini (2014) found that the legal system affects stock market development. In our paper, we use a dummy variable that is equal to one for countries from the common-law origin and zero for countries from the civil-law origin.…”

Section: Level Of Investment (Inv)mentioning

confidence: 99%

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The Impact of Adoption of The XBRL on the Development of Stock Markets

Sassi¹,

Othman²,

Hussainey³

2021

APMAJ

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The paper examines the impact of adoption of the eXtensible Business Reporting Language (XBRL) on the development of stock markets using a large international sample. Our analysis was based on panel estimation techniques for 18 countries for a period of 20 years from 2000 to 2019. Our analysis provided empirical evidence that the adoption of the XBRL has a negative impact on the development of stock markets. This implies that strict policies are needed for the successful adoption of the XBRL and also a mechanism is needed to ensure that stakeholders understand the value of the information provided by the XBRL formatted financial reports. Keywords: XBRL, development of capital markets, panel estimation techniques, cross-countries study

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Section: Empirical Results and Discussionsupporting

confidence: 91%

Section: Literature Reviewmentioning

confidence: 94%

Section: Level Of Investment (Inv)mentioning

confidence: 99%

Section: Level Of Investment (Inv)mentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Adoption of The XBRL on the Development of Stock Markets

Sassi¹,

Othman²,

Hussainey³

2021

APMAJ

View full text Add to dashboard Cite

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“…For example, Bhatia and Tripathy (2018) found that the transition to IFRS increases the return to scale of Indian IT firms in the diaspora. Klibi and Kossentini (2014) also highlighted that the use of IFRS impact stock market development in emerging countries. Other scholars such as Campa and Donnelly (2016), and Cormier et al (2015) has provided evidence on how IFRS improve reporting quality.…”

Section: 0mentioning

confidence: 99%

Convergence to IFRS: a comparative analysis of accounting standards in India

Tawiah

2020

IJAAPE

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This study has employed summative content analysis to measure de-jure harmonisation between the Indian converged IFRS (Ind.AS) and IFRS under the headings Definition Terms (DT), Measurement and Recognition (M/R), and Presentation and Disclosures (P/D). The study has also introduced the convergence index, which was used to investigate differences that the convergences process has removed between the existing GAAP (AS) and IFRS.There are significant differences between Ind.AS and IFRS in Measurement/Recognition and Presentation/Disclosure. The convergence index shows that Ind.AS has removed about 86% of the difference between the existing local GAAP (AS) and IFRS. The most interesting difference between Ind.AS and IFRS is that Ind.AS provides options where IFRS does not, while IFRS also provides options where Ind.AS does not.Users of financial statements should understand that, although India has converged to IFRS, there are significant differences between Measurement/Recognition and Presentation/Disclosure of some major transactions. However, most of the differences between IFRS and Ind.AS are time and transaction-specific likely to be undertaken by large companies; hence, it may not reflect in financial statements of small and medium enterprises.The study makes a methodological contribution by introducing a convergence index which measures how a country has bridge the gap between local GAAP and IFRS

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The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross‐countryanalysis

Elmghaamez

Attah‐Boakye

Adams

et al. 2021

Thunderbird Intl Bus Rev

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This article seeks to contribute to International Financial Reporting Standards (IFRS) literature by examining the effects of adopting IFRS on stock market performance worldwide from the diffusion of innovation theory perspective. Our study revealed several interesting findings after using combinations of unique panel data sets from 110 countries worldwide and conducting a robust empirical analysis from 1995 to 2014. First, we found a positive association between late mandatory IFRS adoption and stock market integration in Europe. Second, our findings indicate a significant negative association between early IFRS adoption and the following financial indicators: stock market trading volumes, stock market capitalization, market turnover, and market return. Third, our study reveals an insignificant association between early IFRS adoption and stock price volatility alongside stock market development. Our findings are robust and have significant practical and policy implications for regulators and policymakers of multinational corporations.

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Does the adoption of IFRS promote emerging stock markets development? Evidence from MENA countries

Cited by 16 publications

References 35 publications

The Impact of Adoption of The XBRL on the Development of Stock Markets

The Impact of Adoption of The XBRL on the Development of Stock Markets

Convergence to IFRS: a comparative analysis of accounting standards in India

The diffusion of innovation theory and the effects of IFRS adoption by multinational corporations on capital market performance: a cross‐countryanalysis

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