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Efobi, Uchenna and Covenant University, Theses (2017) INTERNATIONAL FINANCIAL REPORTING STANDARD, TRADE AND FOREIGN DIRECT INVESTMENT IN SUB-SAHARA AFRICAN COUNTRIES. ["eprint_fieldopt_thesis_type_phd" not defined] thesis, COVENANT UNIVERSITY.

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Since the promulgation of IFRS as a result of the metamorphosis of the International Accounting Standard Board from the International Accounting Standard Committee in 2001, improved global capital flow and trade were identified as some of the outcomes from using IFRS for global financial reporting practice. Due to the fact that IFRS includes more realistic measure of accounting numbers and promotes better disclosure of accounting transactions, it is adjudged as a better form of financial reporting practice. Thus it reduces information asymmetry between preparers and users of financial information and promotes better disclosure and lowers cost of monitoring of subsidiaries and information barriers to cross border investments and trade. The rising global campaign for developing countries, including those in Africa, to adopt IFRS, still requires further examination as to its impact. More so, Africa is confronted by poor institutional framework and accounting infrastructure, and based on this, the consequent effect of IFRS adoption on trade and investment require empirical clarification. In essence, three important questions were asked: (i) to what extent has IFRS adoption enhanced trade flow of selected African countries? (ii) How has IFRS adoption impacted on the volume of FDI inflow to selected African countries? (iii) to what extent has the development of the accounting infrastructure in the selected African countries’ affected the influence of the adoption of IFRS on trade and FDI inflow. In answering the research questions, a panel data, consisting of 48 African countries were gathered and for the period 2002 – 2014. The econometric model were sourced from different database including the World Bank’s World Development Indicator, the United Nations Conference on Trade and Development Statistics and the Price Water House Coopers data on the extent of IFRS adoption around the world. The data were estimated using three approaches: the Ordinary Least Square regression, the Random Effect approach and the system GMM. The three estimation methods are deemed important considering their merits and weaknesses; thus, a multiplicity of methods will help for sensitivity checks. The key results from the study include that African countries will benefit more from IFRS by improving their institutional framework and more so through the development of accounting infrastructure.

Item Type: Thesis (["eprint_fieldopt_thesis_type_phd" not defined])
Uncontrolled Keywords: Accounting Information; Accounting Standards; Foreign Direct Investment; Financial Reporting; Institutions: Trade
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 16 Oct 2017 10:55
Last Modified: 16 Oct 2017 11:08

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