The impact of mandatory IFRS adoption on cross-border equity investments of individual investors
IFRS reporting is currently accepted in over 100 countries around the world. Regulators justify the move towards IFRS by the expectation that collective adoption of IFRS will enhance transparency and comparability of financial statements across countries and thus, among other benefits, one single accounting language will reinforce cross-border equity investments (e.g., EC, 2002). In this essay, we evaluate this claim by analyzing IFRS-related changes in cross-border equity investments of individual investors.
KeywordsEarning Management Trading Volume Individual Investor Home Market Trade Size
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