Hong, Hung, and Lobo (2014) [24]

・ Examine the impact of mandatory IFRS adoption on IPO underpricing and the relative amount of IPO capital raised in foreign markets.

・ Sample of 3651 IPOs worldwide, including 1540 firms in 20 mandatory IFRS adopters countries in 2005, and 2111 firms of 9 non IFRS adopters countries with sample periods of 2003-2004 and 2006-2007.

・ Mandatory IFRS adoption decrease IPO underpricing and increase the relative proceeds from foreign markets.

・ Mandatory IFRS adoption has a greater impact on IPO underpricing and relative foreign proceeds for firms in countries with a larger number of accounting changes, and this relation is more pronounced among firms in countries with stronger implementation credibility.

・ The decrease in underpricing after mandatory IFRS adoption holds for both domestic IPOs and global IPOs, but this effect is more pronounced for global IPOs than for domestic IPOs.

Khurana and Michas (2011) [22]

・ Examines home bias portfolios investments whether mandatory IFRS adoption at the country level lowers US investors’ propensity to overweight domestic stocks in their common stock portfolios.

・ Sample of 85 countries, 33 that adopted IFRS during the 2003-2007 time period, 30 that continued to mandate local accounting standards through 2007, and 22 that mandated the use of IFRS even before 2003.

・ A common set of global accounting standards matter for portfolio holdings of US investors and the enforcement of standards is a key factor in making investments outside the US

・ US home bias decreases for countries that mandate IFRS adoption, after controlling for country-fixed effects.

・ Mandatory IFRS adoption reduces the US home bias greater for countries with larger differences between IFRS and their domestic accounting standards, for countries with a stricter rule of law and a common law legal origin, and in countries with greater incentives to report high-quality financial information.

Lee and Fargher (2010) [21]

・ Examine whether the adoption of IFRS is associated with an increase in the level of investment in foreign equities held by Australian investors.

・ Sample 256 observations of 40 countries, including 21 IFRS-adopters and 19 non-adopters in 2002 to 2008.

・ The adoption of IFRS is associated with greater cross-border equity investment.

・ Investors benefited from a reduction in information asymmetry through an increase in the comparability of financial reports.

Louis and Urcan (2014) [15]

・ Examine whether the 2005 mandatory adoption of IFRS leads to an increase in cross-border acquisitions into the adopting countries and whether any documented effect is driven by concurrent enforcement changes.

・ Sample of completed acquisitions 885 of listed firms from the adopting countries and 2285 acquisitions of unlisted companies from 2000 to 2010.

・ Mandatory IFRS adoption substantially increases cross-border acquisitions of listed companied in the adopting countries.

・ IFRS adoption increase significantly the odds of a cross-border acquisition of a listed firm in the adopting countries.

・ The increase in the flow of investment into the IFRS adopting countries comes from both non-IFRS adopting countries and other IFRS adopting countries.

Shima, and Gordon (2011) [23]

・ Investigate whether a country’s use of IFRS is associated with increased US investment in foreign equities.

・ Sample of US holdings of foreign equities for the years 2003-2006 in 44 countries.

・ IFRS adoption is associated with US investment when it is combined with a strong regulatory environment, strong enforcement regime.

・ Mandatory IFRS adoption is attractive to US investors only when combined with a strong regulatory environment.