Impacts of Mandatory International Financial Reporting Standards Adoption on Foreign Portfolio Investment in Developing Countries: A Comparative Study

Foreign portfolio investment (FPI) represents a significant portion of international capital flow (Makaew 2010; Onuorah & Akujuobi 2013) and is considered as a key source of funds, especially for developing countries (Brana & Lahet 2010). FPI is helpful in diversifying sources of external finance, reducing capital cost and hence, indirectly promoting overall growth (Ahmad, Draz & Yang 2016). Professional accountants around the world assume that a uniform accounting standard such as International Financial Reporting Standards (IFRS) will harmonise the accounting practices worldwide and in turn will enhance quality and comparability of financial information as well as attract more FPI (Beneish et al 2015; Hansen et al 2015; De George et al 2016). However, there are inconsistent findings regarding the impacts of IFRS adoption on FPI between developed and developing countries. In response to this problem, this research proposes to test moderating effects of investor protection and stock market development on IFRS and FPI in developing countries. We encourage the HDR candidate to conduct HDR research project to address the following research objectives:

1. To investigate the impacts of IFRS adoption on FPI;
2. To ascertain the moderating effect of investor protection on the relationship between IFRS adoption and FPI; and
3. To examine the moderating effect of stock market development on the relationship between IFRS adoption and FPI.

Higher Degree by Research (HDR) Program

School: ACC

Program Name(s) and Codes : PhD (ACC), DR200

Academic Enqiury Contact
HDR Coordinator – Associate Professor Prem Yapa