Explanation described above. We further expect a country’s economic size, measured by GDP , to temper the perceived benefits of a growing IFRS network. Larger countries, due to the size of their markets, are likely to attract foreign capital and maintain international trade even if they continue using domestic standards. For countries in the largest size quartile, we find that an inter-quartile increase in perceived network benefits in the associated with 5 percent of the shift from no IFRS-related activities (level 1 ) to some harmonization efforts (level 2); by contrast, for countries in the smallest size quartile, an inter-quartile increase in perceived network benefits is associated with 46 percent of the shift form level “1” to level “2.” These findings suggest that network effects matter less to larger countries such that these countries are more likely to refrain from adopting IFRS altogether or to tailor IFRS harmonization extensively.