[gov3009-l] Ramanna on "Network effects in International Financial Reporting Standards"

Hi all, We hope that you can join us for the Applied Statistics Workshop this Wednesday, November 3rd when we will be happy to have Karthik Ramanna at the Harvard Business School. Karthik will give a talk entitled "Network effects in countries' adoption of International Financial Reporting Standards." You will find an abstract and a link to the paper below. As always, we will serve a light lunch (sandwiches) and the talk will begin around 12:15p. "Network effects in countries' adoption of International Financial Reporting Standards" Karthik Ramanna Harvard Business School CGIS K354 (1737 Cambridge St.) Wednesday, November 3rd, 12 noon Abstract: If a country’s accounting standards represent a political-economic equilibrium, why is that equilibrium for some countries shifting over time in favor of International Financial Reporting Standards (IFRS)? We develop and test the hypothesis that perceived network benefits from the extant worldwide adoption of IFRS influences a country’s shift away from local accounting standards. That is, as more jurisdictions with economic ties to a given country adopt IFRS, perceived benefits from lowering transactions costs to foreign financial-statement users come to outweigh institutional differences (e.g., auditing technology) that make IFRS adoption costly. We find that perceived network benefits increase the degree of IFRS harmonization among countries, although larger countries and countries less dependent on foreign trade have a differentially lower response to these perceived benefits. Paper: http://www.iq.harvard.edu/events/sites/iq.harvard.edu.events/files/SSRN-id1… Cheers, matt. ~~~~~~~~~~~ Matthew Blackwell PhD Candidate Institute for Quantitative Social Science Department of Government Harvard University url: http://people.fas.harvard.edu/~blackwel/