Location of Repository

European Accounting Harmonisation: Consequences of IFRS Adoption on Trade in Goods and Foreign Direct Investments

By Laura Márquez-Ramos


This paper focuses on the importance of accounting harmonisation in foreign activities at country level. The adoption of International Financial Reporting Standards (IFRS) is considered to reduce information costs among countries and, therefore, encourage international trade in goods and investment. The results provide evidence that benefits exist in terms of trade in goods and foreign direct investments (FDI) when IFRS are adopted.IFRS, trade in goods, FDI, gravity

OAI identifier:

Suggested articles



  1. (2006). A more complete conceptual framework for SME finance”,
  2. (1998). Commission of the European Communities
  3. (2009). Financial Information Globalization and Foreign Investment Decisions.” Available at SSRN: http://ssrn.com/abstract=1446522. 16 -
  4. (2010). IFRS in your pocket”. Deloitte Touche Tohmatsu. http://www.iasplus.com -
  5. (2008). Incentives or Standards: What Determines Accounting Quality Changes Around
  6. (2004). Information costs and home bias: an analysis of US holdings of foreign equities.”
  7. (1999). Real capital market integration: How far has integration gone? What euro effect?”,
  8. (2005). The determinants of cross-border equity flows,”
  9. (2009). The effect of IFRS adoption on cross-border investment in equity and debt markets.” Working paper. Available at http://ssrn.com/abstract=1403451.
  10. (2000). The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?”, NBER Working Paper Series, Working Paper 7777.
  11. (2007). The Value Relevance of Accounting Income Reported by DAX-30

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.