INTERNATIONAL FINANCIAL REPORTING STANDARDS AND THEIR INFLUENCE ON EDUCATIONAL GOVERNANCE IN AFRICAN NATIONS

Abstract

International Financial Reporting Standards (IFRS) is considered a way of attracting Foreign Direct Investments (FDI), improving comparability in financial reporting, reducing information asymmetries and cost for foreign investors.  The effect of regulatory quality is found as an incentive for quality of accounting information, which is of great importance to accounting educators and compliance to the IFRS by firms. Using the fixed effect model for the regression and a sample of 45 countries in Africa, we find that compliance of IFRS has a positive impact on the flow of FDIs. We also established that regulatory quality is an incentive for compliance to IFRS standards. The results which are very useful to managers of education (teachers of accounting education), show that IFRS compliance by African countries will boost the flow of FDIs by increasing comparability. Improving regulatory quality will further strengthen the effect of IFRS compliance as well as enhance transparency