Authors:

  • Gwen Yu

Excerpt

Accounting Standards and International Portfolio Holdings. Gwen Yu, March 4, 2014, Paper. "Do differences in countries' accounting standards affect global investment decisions? We explore this question by examining how accounting distance, the difference in the accounting standards used in the investor's and the investee's countries, affects the asset allocation decisions of global mutual funds. We find that investors tend to underweight investees with greater accounting distance. Using the mandatory adoption of International Financial Reporting Standards (IFRS) as an event that changed the accounting standards of various country-pairs..." Link