ORCID Identifiers

0000-0003-1368-7182

Document Type

Article

Source of Publication

Investment Management and Financial Innovations

Publication Date

1-1-2016

Abstract

© Evangelos Daskalopoulos, Anastasios Evgenidis, Athanasios Tsagkanos, Costas Siriopoulos, 2016. The main purpose of this paper is to investigate the impact of an endogenous relationship between international financial reporting standards (IFRS) and sovereign credit ratings on the factors that determine foreign direct investments, by using an instrumental variable panel data framework. The results show that the adoption of IFRS by developed economies is interpreted by credit rating agencies as a positive sign that the firms will provide more transparent financial reports. In addition, the authors find that the consideration of the endogenous relationship between IFRS and credit ratings for developed economies highlights the importance of some variables that was not evident previously such as the degree of corruption and the educational level. Finally, the authors suggest that foreign direct investments are more easily attracted when one considers a joint factor which captures people’s perceptions about the ability of the government to implement policy and regulations that promote the development of public and private sector.

ISSN

1810-4967

Publisher

LLC CPC Business Perspectives

Volume

13

Issue

3

First Page

328

Last Page

340

Disciplines

Business

Keywords

Credit ratings, FDI determinants, IFRS

Scopus ID

85048567811

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Indexed in Scopus

yes

Open Access

yes

Open Access Type

Gold: This publication is openly available in an open access journal/series

Included in

Business Commons

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