Foreign investors prefer markets with less information asymmetry and high quality financial information that enables them to assess investment prospects at a lower cost. Therefore, IFRS employs as one of the key inputs to increase transparency, reduce information asymmetries and ultimately affect investors’ decision making. Hence, this paper attempts to highlight the existence gaps in the IFRS literature to motivate future researchers to study on relationship between IFRS adoption and FDI. This paper also suggests to future study to examine the mediating roles of Information asymmetry in relationship between IFRS adoption and FDI.
Keywords: IFRS adoption, information asymmetry, foreign direct investment, ASEAN countries
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