Tawiah, Vincent and Soobaroyen, Teerooven (2022) The relationship between the adoption of International Public Sector Accounting Standards and sources of government financing: Evidence from developing countries. Accounting Forum, 48 (2). pp. 307-330. DOI https://doi.org/10.1080/01559982.2022.2151073
Tawiah, Vincent and Soobaroyen, Teerooven (2022) The relationship between the adoption of International Public Sector Accounting Standards and sources of government financing: Evidence from developing countries. Accounting Forum, 48 (2). pp. 307-330. DOI https://doi.org/10.1080/01559982.2022.2151073
Tawiah, Vincent and Soobaroyen, Teerooven (2022) The relationship between the adoption of International Public Sector Accounting Standards and sources of government financing: Evidence from developing countries. Accounting Forum, 48 (2). pp. 307-330. DOI https://doi.org/10.1080/01559982.2022.2151073
Abstract
We examine the association between the adoption of International Public Sector Accounting Standards (IPSAS) and the level of government financing in the context of developing countries. We draw upon signalling theory, robust econometric techniques and a sample of 54 developing countries over a 13-year period. Our results show that adopting IPSAS is significantly associated with increased financing from international sources and foreign aid. In contrast, there is no significant association for the case of domestic credit. Our results are more pronounced for developing countries that have adopted accrual-based IPSAS than for those that have adopted cash-based IPSAS. Finally, we find that the association between IPSAS and government financing remains similar regardless of the country’s level of institutional quality. Our evidence implies that there is a benefit of increased debt financing after adopting IPSAS, indicative of the incremental signal international capital providers place on the availability of IPSAS-based public sector financial reports.
Item Type: | Article |
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Uncontrolled Keywords: | Developing countries; domestic credit; foreign aid; government financing; International Public Sector Accounting Standards (IPSAS) |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 25 Jan 2023 15:03 |
Last Modified: | 30 Oct 2024 20:54 |
URI: | http://repository.essex.ac.uk/id/eprint/33972 |
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