Analyzing the effect of using international accounting standards on the development of emerging capital markets

Purpose – The purpose of this paper is to analyze the consequences of using international accounting standards (IAS/IFRS) for the development of capital markets located in developing countries (emerging capital markets). Design/methodology/approach – The authors conduct an empirical study using a sample of 38 developing countries with capital markets, starting by comparing the means of the different measures studied before and after the use of IAS/IFRS. A multivariate statistical analysis is conducted based on the estimation of a model of panel data with fixed effects. Findings – The results show that the development of the emerging capital markets is positively and significantly associated with the use of international accounting standards. Practical implications – The paper's findings are of interest to several different parties, primarily the national accounting standardization body, the IASB, many international organizations and international investors. Originality/value – The paper describes an empirical study, conducted on a group of developing countries, which provides a better understanding of the potential consequences of the use of IASB standards. The paper is also a meaningful contribution to the international accounting literature, as it examines an interesting subject that has not yet been investigated.