Improving Investment Efficiency

The Donald A Corbin Distinguished Professor of Accounting Hamid Pourjalali and the Shidler College Distinguished Associate Professor Boochun Jung published “Does International Accounting Standard No 27 Improve Investment Efficiency?” in Journal of Accounting, Auditing and Finance.  This paper documents that firms experience a significant increase in investment efficiency after adopting International Accounting Standard (IAS) No. 27. IAS 27 defines “control” criteria for consolidated entities as majority control rights rather than majority financial ownership.