IFRS Adoption and the Environment: Is Africa Closing Her Eyes to Something?

22 Pages Posted: 6 Sep 2014

Date Written: September 5, 2014

Abstract

This study aims at establishing a linkage between IFRS adoption and environmental pollution in Africa. More so, the role of institution was emphasized as a possible ameliorator of environmental pollution, in the face of IFRS adoption. The empirical model builds on the traditional EKC hypothesis, by including IFRS adoption variable and an interaction term (which captures the multiplicative between IFRS adoption and institutions). Data was gathered for 47 African countries for the period 2001-2013. The SGMM technique was used in the estimation process. The robust estimation reveals that a positive and significant linkage exist between IFRS adoption and environmental pollution. The interactive variable also shows that the effect of IFRS on the environment will reduce when institutions quality (in the form of bureaucratic corruption) is addressed.

Suggested Citation

Efobi, Uchenna, IFRS Adoption and the Environment: Is Africa Closing Her Eyes to Something? (September 5, 2014). Available at SSRN: https://ssrn.com/abstract=2492210 or http://dx.doi.org/10.2139/ssrn.2492210

Uchenna Efobi (Contact Author)

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

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