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An Empirical Analysis of International Accounting Standards, Equity Markets, and Economic Growth in Developing Countries
Author(s) -
Larson Robert K.,
Kenny Sara York
Publication year - 1995
Publication title -
journal of international financial management and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.818
H-Index - 37
eISSN - 1467-646X
pISSN - 0954-1314
DOI - 10.1111/j.1467-646x.1995.tb00054.x
Subject(s) - equity (law) , developing country , accounting , economics , positive accounting , context (archaeology) , business , development economics , accounting information system , economic growth , financial accounting , political science , paleontology , law , biology
The International Accounting Standards Committee receives widespread support for its efforts to ‘harmonize’ international accounting. International Accounting Standards (IASs) are, however, controversial, particularly in the context of developing countries. The authors report the results of an exploratory study empirically examining the relationships between the adoption of IASs, equity market development, and economic growth in developing countries with equity markets. They analyzed 27 developing countries by means of a cross‐national sociological research design and partial least squares. The results indicate no major association between developing countries' equity market development and economic growth due to adoption of IASs. Questions for future research are proposed.