Does IFRS adoption decrease the cost of equity of the global tourism firms?

Zhi Yuan Feng, Ying Chieh Wang, Hua Wei Huang

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


This article answers the question of whether the adoption of International Financial Reporting Standards (IFRS) reduces the cost of equity capital, with a focus on the tourism industry. We employ a set of global tourism companies and find that mandatory IFRS adoption has a significantly negative relation with the cost of equity capital. However, we find that this relation is varied with different business cultures and geographic areas. Moreover, from interactive analyses of country institutions for the relation between mandatory IFRS adoption and tourism firm’s cost of equity, we show that adopting IFRS complements the deficiencies of various country institutions, such as investor protection, the strength of legal enforcement, and corporate governance.

Original languageEnglish
Pages (from-to)1615-1631
Number of pages17
JournalTourism Economics
Issue number8
Publication statusPublished - 2017 Dec 1

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Tourism, Leisure and Hospitality Management


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