Institutional Structure, IFRS Adoption and Foreign Portfolio Investment in Africa
Institutional Structure, IFRS Adoption and Foreign Portfolio Investment in Africa

Summary/Abstract: This paper examines institutional structures, IFRS adoption and Foreign Portfolio Investment FPI among some selected African countries. Previous studies have focused only on IFRS adoption and FPI but literature have shown that institutional structure may likely affect their relationship, so this study assesses the moderating effect of institutional structure. Panel data analysisis applied to estimate the formulated model and analyze the data. The results show that adoption of IFRS have significant impact on FPI and that Institutional variables plays important roles on the extent to which IFRS affects FPI. Findings further reveal that institution variables are more significant in the countries that fully adopted IFRS thus aiding its effect on FPI. It shows that countries should look beyond adoption of IFRS to attract FPI but to also focus on their institution structures as it serves as catalysis for efficient implementation of IFRS. The study has contributed to the existing literature by examine the moderating effect of institutional structure which no study has done before.

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