We would like these impacts to always have a positive impact; however the impact can negatively affect a business. Researchers Holger Daske, Leuz Hail, Christian Leuz and Rodrigo Verdi examined 3,100 companies in 26 countries mandated to adopt IFRS in their paper “Mandatory IFRS Reporting Around the World: Early Evidence on Economic Consequences.” The study examines the economic effects of IFRS, both early and mandatory adoption” (Bolt-Lee). They were able to conclude that a company's adoption of IFRS creates strong economic benefits in countries with strict financial reporting regulation. The article also explains that these benefits include an increase in the market value of the shares, an increase in market liquidity, and a lower cost of capital. Companies with large differences between GAAP and IFRS standards show the greatest benefits when supported by strong regulation