Education As A Catalyst For Improvement Of Owner’s Equity Structure Of Georgian Joint Stock Companies

Education is a catalyst through which major societal changes take place. This paper is based on the premise that Georgian state-owned joint stock companies need financial statements in order to improve its capital structure. The above-mentioned premise is also based on the assumption that implementation of high quality accounting standards is crucial to the provision of financial statements that are necessary for joint stock comapanies to improve its owner's equity financing opportunities. Therefore, the role of education must be examined in the context of implementation of International Financial Reporting Standards. The research process was organized as follows: the Global Comepetetiveness Index of 2014-2015 by Klaus Schwab published by the World Economic Forum was obtained as a source of data to examine educational systems and the implementation of IFRS in various countries of the world. It was evident that Georgia's educational system and the level of IFRS implementation both need improvement. The goal of this research was to study if there is any cause and effect relationship between the quality of educational system and IFRS implementation in 144 countries of the world, including Georgia. Empirical evidence suggests that the quality of countries' educational and research institutions are a 57% precondition to the successful implementation of IFRS. Furthermore, collaboration between educational institutions and private sector entities is a 62% precondition to the full implementation of IFRS.