The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries
Purpose: This paper investigates the relationship between International Financial Reporting Standards (IFRS) adoption and Foreign Direct Investments (FDI) inflows in a sample of Gulf Cooperation Council (GCC) countries, namely Kuwait, Qatar, UAE, and Saudi Arabia over the period standing between 19...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Rada Naukowa SKwP
2022-12-01
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| Series: | Zeszyty Teoretyczne Rachunkowości |
| Subjects: | |
| Online Access: | http://ztr.skwp.pl/gicid/01.3001.0016.1300 |
| _version_ | 1828064793437667328 |
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| author | Sarah Chehade David Procházka |
| author_facet | Sarah Chehade David Procházka |
| author_sort | Sarah Chehade |
| collection | DOAJ |
| description | Purpose: This paper investigates the relationship between International Financial Reporting Standards (IFRS) adoption and Foreign Direct Investments (FDI) inflows in a sample of Gulf Cooperation Council (GCC) countries, namely Kuwait, Qatar, UAE, and Saudi Arabia over the period standing between 1990 and 2020. Methodology/approach: This study implements a statistical analysis, starting with a panel correlation matrix and then a panel unit root test to identify the integrating properties of variables. The Pedroni panel co-integration approach tests co-integration among variables, and the instrumental Generalized Method of Moments (GMM) estima-tion technique identifies the relationship among variables and their significance.
Findings: The results imply that only Gross Domestic Product (GDP) per capita, exchange rate and trade enhance FDI inflows in the studied countries. Contrary to our expectations, the IFRS was found to be insignificant on FDI along with economic control variables.
Originality/value: Using multiple control variables, this study provides original em-pirical evidence and statistical analysis on the effect of IFRS adoption on FDI inflows in the GCC area.
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| first_indexed | 2024-04-10T23:05:13Z |
| format | Article |
| id | doaj.art-055181de493f43b1be4cba4db0aae1e8 |
| institution | Directory Open Access Journal |
| issn | 1641-4381 2391-677X |
| language | English |
| last_indexed | 2024-04-10T23:05:13Z |
| publishDate | 2022-12-01 |
| publisher | Rada Naukowa SKwP |
| record_format | Article |
| series | Zeszyty Teoretyczne Rachunkowości |
| spelling | doaj.art-055181de493f43b1be4cba4db0aae1e82023-01-13T11:02:49ZengRada Naukowa SKwPZeszyty Teoretyczne Rachunkowości1641-43812391-677X2022-12-0146492610.5604/01.3001.0016.130001.3001.0016.1300The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countriesSarah Chehade0David Procházka1Prague University of Economics and Business Faculty of Finance and Accounting Department of Accountancy and Financial ManagementPrague University of Economics and Business Faculty of Finance and Accounting Department of Accountancy and Financial ManagementPurpose: This paper investigates the relationship between International Financial Reporting Standards (IFRS) adoption and Foreign Direct Investments (FDI) inflows in a sample of Gulf Cooperation Council (GCC) countries, namely Kuwait, Qatar, UAE, and Saudi Arabia over the period standing between 1990 and 2020. Methodology/approach: This study implements a statistical analysis, starting with a panel correlation matrix and then a panel unit root test to identify the integrating properties of variables. The Pedroni panel co-integration approach tests co-integration among variables, and the instrumental Generalized Method of Moments (GMM) estima-tion technique identifies the relationship among variables and their significance. Findings: The results imply that only Gross Domestic Product (GDP) per capita, exchange rate and trade enhance FDI inflows in the studied countries. Contrary to our expectations, the IFRS was found to be insignificant on FDI along with economic control variables. Originality/value: Using multiple control variables, this study provides original em-pirical evidence and statistical analysis on the effect of IFRS adoption on FDI inflows in the GCC area. http://ztr.skwp.pl/gicid/01.3001.0016.1300IFRS adoptionforeign direct investment (FDI)GCC countriesemerging economiesco-integration |
| spellingShingle | Sarah Chehade David Procházka The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries Zeszyty Teoretyczne Rachunkowości IFRS adoption foreign direct investment (FDI) GCC countries emerging economies co-integration |
| title | The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries |
| title_full | The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries |
| title_fullStr | The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries |
| title_full_unstemmed | The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries |
| title_short | The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries |
| title_sort | relationship between ifrs adoption and foreign direct investments in gulf cooperation council countries |
| topic | IFRS adoption foreign direct investment (FDI) GCC countries emerging economies co-integration |
| url | http://ztr.skwp.pl/gicid/01.3001.0016.1300 |
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