As a result of globalization, current international trade seeks opportunities not only
to import and export physical goods across borders, but also to invest and raise
capital internationally. With the growing internationalization of trade and the
globalization of financial markets, financial information that is prepared in
accordance with national regulations may no longer satisfy the needs of
international decision makers (Zeghal & Mhedhbi, 2006). This situation creates a
need for effective communication about corporations’ financial position, activities,
and future goals to an internationally diversified audience of shareholders,
creditors, and other stakeholders (Murphy, 1999).