TITLE:
The Effect of IFRS Adoption on Investment Management: A Review of the Literature
AUTHORS:
Konstantinos Kapellas, Georgia Siougle
KEYWORDS:
International Financial Reporting Standards (IFRS), Investment Management, European Crisis
JOURNAL NAME:
Technology and Investment,
Vol.9 No.1,
January
26,
2018
ABSTRACT: Recent literature contains a number of studies that
provide evidence that improvements in the performance related to business
investments are associated with the main positive results of the implementation
of international financial reporting standards (hear after IFRS). This study is
an effort trying to summarize empirical evidences in current literature about
the effect of the IFRS adoption on investment management. We summarize
literature on the effect of IFRS a) in a European setting b) in a worldwide
setting. We especially refer to the effect of European Crisis on Investment
Management. We summarize evidence on the impact of IFRS adoption worldwide on
investments assets, foreign direct investments (FDIs), cross boarder
investments (Merger and Acquisition activities) and foreign mutual fund
ownership. We finally present some evidence on the impact of IFRS adoption on
US home bias and try to document the impact of IFRS adoption on international
listing and IPOS in global markets.