Accounting System Convergence and Enterprise Cross-border Investment Efficiency in Countries Along the Belt and Road

Kexin Li

doi:10.62051/ijgem.v10n5.10

Authors

Kexin Li

DOI:

https://doi.org/10.62051/ijgem.v10n5.10

Keywords:

Belt and Road, Accounting system convergence, IFRS, Information asymmetry, Cross-border direct investment efficiency, Institutional environmen

Abstract

Against the background of the in-depth advancement of the "Belt and Road" (B&R) Initiative, cross-border direct investment (CBFI) has become a core driver of economic cooperation among countries along the route. However, significant differences in accounting systems among these countries have exacerbated cross-border information asymmetry, thereby restricting the improvement of investment efficiency. Taking panel data of 48 countries along the B&R from 2015 to 2023 as the research sample, this study measures the convergence degree of national accounting standards with International Financial Reporting Standards (IFRS) using the adoption degree and clause similarity scoring method. It empirically tests the impact of accounting system convergence on enterprise CBFI efficiency through panel regression, and explores the mediating role of information asymmetry, as well as the moderating effects of cultural differences, legal environment, and national governance level. The results show that: (1) The IFRS convergence level of countries along the B&R has obvious regional differences, generally at a medium to low level; (2) Accounting system convergence can significantly alleviate cross-border information asymmetry, thereby positively improving enterprise CBFI efficiency; (3) Cultural differences have a negative moderating effect on the positive impact of accounting convergence on investment efficiency, while a sound legal environment and high national governance level can positively strengthen this effect. Based on the research conclusions, this study puts forward targeted policy suggestions for promoting regional accounting coordination along the B&R and improving the efficiency of enterprise cross-border investment, which provides theoretical and practical references for the sustainable development of B&R cross-border investment and the integration of global accounting systems.

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