The impact of IFRS Adoption as Control Variable on the Stock Market-Growth Nexus : Model Countries Germany and Poland

The purpose of this paper is to investigate the theoretical association between stock market development and economic growth before and after the adoption of international financial reporting standards (IFRS) as control variable, in 2005 in Europe. In this study, quantitative research is considered for Germany and Poland over the period 1993-2016, which means that the relationship between the rate of economic growth as dependent variables and financial development level, real GDP per capita and gross investment as independent variables. In order to achieve the objectives of the study, Autoregressive Distribution lag (ARDL) and ECM model are considered. The findings suggest that stock market development has affected economic growth in both countries, but with different degrees of impact. Additionally, the relationship has been affected by the adoption of IFRS in the stock markets of the two countries; however, the effects vary across countries