Author First name, Last name, Institution

Vincent Tawiah, DCU Business School
Ernest Gyapong, Zayed University

ORCID Identifiers

0000-0003-1679-387X

Document Type

Article

Source of Publication

International Journal of Finance and Economics

Publication Date

1-1-2021

Abstract

We have examined the relationship between international financial reporting standards (IFRS and IFRS for SMEs) and domestic credit to the private sector by banks. Using data on 107 developing countries from 2000 to 2017, we found that the use of IFRS and IFRS for SMEs is positively associated with an increase in domestic credit to the private sector in developing countries. Our analysis on the individual global standards shows that the relationship is much stronger for the use of full IFRS than IFRS for SMEs. We found that the effect of both international standards on domestic credit is more profound in countries with weaker institutional quality, indicating the overwhelming support that these sets of international standards are quality standards that boost confidence in financial statements. Other robustness tests confirm our results.

ISSN

1076-9307

Disciplines

Business

Keywords

developing countries, domestic credit, IFRS, IFRS (SME), private sector

Scopus ID

85105806366

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Indexed in Scopus

yes

Open Access

yes

Open Access Type

Hybrid: This publication is openly available in a subscription-based journal/series

Included in

Business Commons

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