Abstract
We examine the relation between information transparency and design innovation by using the mandatory adoption of International Financial Reporting Standards (IFRS) in 2005 as an exogenous increase in information transparency. We find that firms’ mandatory adoption of IFRS is positively related to their likelihood of winning the iF design award that acknowledges excellent product/service designs. We further find that after the adoption, firms attract more international institutional investors who may better monitor and advise product design; and that the effect of the IFRS mandate is more pronounced for firms with expanded international sales that may benefit more from international markets.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.