scholarly journals Examining the Influence of Some Macroeconomic Factors on Foreign Direct Investments

2016 ◽  
Vol 9 (2) ◽  
pp. 159-182 ◽  
Author(s):  
Alina Țaran ◽  
Marilena Mironiuc ◽  
Maria-Carmen Huian
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Economic Freedom ◽  
Positive Influence ◽  
Foreign Direct Investments ◽  
Host Countries ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Financial Reporting Standards ◽  
Level Of Economic Development

AbstractThe aim of this paper is to study the determinants of inward foreign direct investments (FDI) at a multi-regional and European level, while focusing on a series of macroeconomic factors, in the FDI receiving countries. Multiple regression analysis and ANOVA analysis of variance are applied. Findings show that the degree of economic freedom is a significant factor of multi-regional inward FDI during the period 2012-2015, but this effect is caused only fiscal freedom, government spending, monetary, trade, and financial freedom. For the more economically and politically stable European countries, the level of economic freedom does not influence their inward FDI. At the same time, market size and level of economic development of the host countries have a positive influence on FDI inflows, while financial markets development, workforce availability and adoption of the International Financial Reporting Standards (IFRS) are not significant determinants.

scholarly journals What Drives Cross-Border Mergers and Acquisitions and Greenfield Foreign Direct Investment Capital Flows? Reconsideration in the Case of the Selected Former Yugoslav Countries

2021 ◽  
Vol 32 (3) ◽  
pp. 234-246
Author(s):  
Ksenija Denčić-Mihajlov ◽  
Vinko Lepojević ◽  
Jovana Stojanović
Keyword(s):  
Mergers And Acquisitions ◽  
Developing Economies ◽  
Random Effect ◽  
Random Effect Model ◽  
Foreign Direct Investments ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Cross Border ◽  
Data Framework ◽  
The Impact

Bearing in mind the different nature and the impact of various types of foreign direct investments (FDI) on the one hand, and the specific macroeconomic environment in the post-socialist countries on the other hand, in this paper we reexamine the selected macroeconomic factors that affect the two types of FDI inflows (cross-border mergers and acquisitions and greenfield FDI) in four countries of the former Socialist Federal Republic of Yugoslavia. The study employs the balanced panel data framework and covers twelve-year period (2006-2017). Having performed the Hausman test, we use the random effect model and provide evidence that: (1) the key FDI macroeconomic determinants in stable business conditions, examined in numerous research studies, can have a different impact on FDI in times characterized by unstability and financial crisis, (2) some determinants of FDI inflows have different importance and direction in the case of cross-border M&A and greenfield FDI. Our findings are relevant for policymakers who should reconsider the key factors that fuel the FDI inflows towards their developing economies.

IFRS Harmonization and Foreign Direct Investment

2016 ◽  
pp. 31-48 ◽  
Author(s):  
Javier Vidal-García ◽  
Marta Vidal
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Relevant Literature ◽  
Accounting Standards ◽  
Foreign Direct Investments ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Cross Border

IFRS refers to International Financial Reporting Standards, which are the guidelines that provide the framework for accounting works. The principles are also known as the International Accounting Standards (IAS). This global financial concept was first introduced in 2001 to equip investors with analyzed accounting statements. In this Chapter we review the relation between IFRS and Foreign Direct Investments (FDIs). We review the relevant literature that analyses the effects on IFRS on FDIs and cross-border acquisitions. The economic literature states that the introduction of IFRS has presented an important increase in FDIs. The evidence shows that IFRS adopting countries attract investments from countries that implemented IFRS and non-IFRS implementing countries.

IFRS Harmonization and Foreign Direct Investment

2020 ◽  
pp. 436-453
Author(s):  
Javier Vidal-García ◽  
Marta Vidal
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Relevant Literature ◽  
Accounting Standards ◽  
Foreign Direct Investments ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Cross Border

IFRS refers to International Financial Reporting Standards, which are the guidelines that provide the framework for accounting works. The principles are also known as the International Accounting Standards (IAS). This global financial concept was first introduced in 2001 to equip investors with analyzed accounting statements. In this Chapter we review the relation between IFRS and Foreign Direct Investments (FDIs). We review the relevant literature that analyses the effects on IFRS on FDIs and cross-border acquisitions. The economic literature states that the introduction of IFRS has presented an important increase in FDIs. The evidence shows that IFRS adopting countries attract investments from countries that implemented IFRS and non-IFRS implementing countries.

scholarly journals Specifics of IFRS Adoption by Central and Eastern European Countries: Evidence from Research

2017 ◽  
Vol 64 (1) ◽  
pp. 59-81 ◽  
Author(s):  
David Procházka
Keyword(s):  
Financial Reporting ◽  
Institutional Environment ◽  
Strong Dependence ◽  
Economic Consequences ◽  
Foreign Direct Investments ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Thomson Reuters ◽  
Eastern European Countries ◽  
New Eu Members

Abstract The paper reviews recent literature on the specifics of adoption of International Financial Reporting Standards (IFRS) by the new EU members from the Central and Eastern Europe. Despite being members of the EU or OECD, the transition to a standard developed economy has not yet finished. The first part of the paper presents macroeconomic statistics and capital market data, which underline a unique economic structure of the region (relative unimportance of capital markets for raising capital, strong dependence on foreign direct investments) combined with the lacks in institutional environment. Under such conditions, the economic consequences of IFRS adoption can be unpredictable and adverse. The second part of the paper analyses the reflection of specifics of the IFRS adoption in the CEE region in research studies covered by the Thomson Reuters’ Web of Science database. The analysis reveals (a) cross-country disproportion in the research coverage of the area; (b) relatively low coverage of the IFRS research focusing on these transition countries in top journals.

scholarly journals Specifics of IFRS Adoption by Central and Eastern European Countries: Evidence from Research

2017 ◽  
Vol 64 (1) ◽  
pp. 59-81 ◽  
Author(s):  
David Procházka
Keyword(s):  
Financial Reporting ◽  
Institutional Environment ◽  
Strong Dependence ◽  
Economic Consequences ◽  
Foreign Direct Investments ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Thomson Reuters ◽  
Eastern European Countries ◽  
New Eu Members

Abstract The paper reviews recent literature on the specifics of adoption of International Financial Reporting Standards (IFRS) by the new EU members from the Central and Eastern Europe. Despite being members of the EU or OECD, the transition to a standard developed economy has not yet finished. The first part of the paper presents macroeconomic statistics and capital market data, which underline a unique economic structure of the region (relative unimportance of capital markets for raising capital, strong dependence on foreign direct investments) combined with the lacks in institutional environment. Under such conditions, the economic consequences of IFRS adoption can be unpredictable and adverse. The second part of the paper analyses the reflection of specifics of the IFRS adoption in the CEE region in research studies covered by the Thomson Reuters’ Web of Science database. The analysis reveals (a) cross-country disproportion in the research coverage of the area; (b) relatively low coverage of the IFRS research focusing on these transition countries in top journals.

Compliance costs and comparability benefits of cross-listing

2019 ◽  
Vol 27 (4) ◽  
pp. 563-594
Author(s):  
Shiheng Wang ◽  
Serena Wu
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Foreign Firms ◽  
Host Countries ◽  
Accounting Standard ◽  
Compliance Costs ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Cross Listing ◽  
Depositary Receipts

Purpose The purpose of this paper is to examine two channels through which accounting standard differences could affect cross-listing: compliance costs and/or comparability benefits. Design/methodology/approach The authors use two settings to disentangle the two channels. First, financial reporting requirements are more stringent for cross-listings via direct listings than cross-listings via depositary receipts; as a result, the effect of compliance costs (if any) would be manifested differently in the two venues of cross-listings. Second, some host countries allow foreign firms to report under International Financial Reporting Standards (IFRS) without mandating IFRS for domestic firms; compared to host countries that mandate IFRS for both domestic and foreign firms, these IFRS-permitting countries provide a setting to test the importance of comparability benefits while holding constant compliance costs. Findings The authors find that prior to IFRS adoption, direct listings decrease with accounting standards differences between two countries while depositary receipts increase with such differences, consistent with the costs of complying with host country’s accounting standards affecting firms’ cross-listing decisions. After the harmonization of accounting standards, the authors find that IFRS-mandating host countries gain cross-listings from other IFRS-mandating jurisdictions, while IFRS-permitting countries do not experience such gains. These combined results suggest that accounting related compliance costs and comparability benefits both influence cross-listing decisions. Originality/value The paper employs unique settings that enable an in-depth examination of the role of compliance costs vs that of comparability benefits on cross-listing decisions. The settings employed by the authors allow them to disentangle the two channels and provide an important insight that accounting standard-related compliance costs and comparability benefits both affect cross-listing decisions.

Foreign direct investment, smart policies and economic growth

2017 ◽  
Vol 17 (3) ◽  
pp. 245-256 ◽  
Author(s):  
Murat Yulek ◽  
Nurullah Gur
Keyword(s):  
Host Country ◽  
Capital Accumulation ◽  
Developing Economies ◽  
Foreign Direct Investments ◽  
Domestic Investment ◽  
Host Countries ◽  
Fdi Inflows ◽  
Investment Policies ◽  
Net Benefits ◽  
Fdi Policies

Developing economies need foreign direct investments to complement domestic investment with a view to increase capital accumulation, productivity and growth rates. But, foreign direct investments (FDIs) may have costs in addition to the well-known benefits to the host country. Generating higher net benefits from FDI necessitates design and implementation of ‘smart’ investment policies by the host countries rather than the current orthodoxy of ‘neutral’ FDI policies, which is based on liberalizing the FDI inflows and aim to attract ‘any’ kind of FDI. In this article, we discuss such polices and how they relate to host country circumstances.

scholarly journals Foreign Direct Investment in GCC Countries: The Essential Influence of Governance and the Adoption of IFRS

2021 ◽  
Vol 14 (6) ◽  
pp. 264
Author(s):  
Costas Siriopoulos ◽  
Athanasios Tsagkanos ◽  
Argyro Svingou ◽  
Evangelos Daskalopoulos
Keyword(s):  
Financial Reporting ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Gulf Cooperation Council ◽  
International Financial Reporting Standards ◽  
Foreign Direct Investments ◽  
Reporting Standards ◽  
Factors Affecting ◽  
Financial Reporting Standards ◽  
Governance Quality

This paper presents an analysis of the factors affecting foreign direct investments, focusing on governance quality and adoption of International Financial Reporting Standards on countries of the Gulf Cooperation Council, which are a special case of study due to their idiosyncratic characteristics, rich natural resources and geographical position. Panel data analysis was conducted, implementing three different models (Fixed Effect, Random Effect, and Arellano Bond Dynamic Model). The results show that the adoption of International Financial Reporting Standards is a strong determinant that promotes foreign direct investments. As regards the governance quality, the block of Gulf Cooperation Council countries has fulfilled the minimum level of governance pre-conditions relative to foreign direct investments. In addition, governance indicators associated with law, rules, and corruption are more influential determinants for foreign direct investments.

scholarly journals Assessing variations in foreign direct investments under international financial reporting standards (IFRS) adoption, macro-socioeconomic developments and credit ratings

2016 ◽  
Vol 13 (3) ◽  
pp. 328-340
Author(s):  
Evangelos Daskalopoulos ◽  
Anastasios Evgenidis ◽  
Athanasios Tsagkanos ◽  
Costas Siriopoulos
Keyword(s):  
Financial Reporting ◽  
Credit Ratings ◽  
International Financial Reporting Standards ◽  
Positive Sign ◽  
Foreign Direct Investments ◽  
Reporting Standards ◽  
Developed Economies ◽  
Financial Reporting Standards ◽  
Data Framework ◽  
The Impact

The main purpose of this paper is to investigate the impact of an endogenous relationship between international financial reporting standards (IFRS) and sovereign credit ratings on the factors that determine foreign direct investments, by using an instrumental variable panel data framework. The results show that the adoption of IFRS by developed economies is interpreted by credit rating agencies as a positive sign that the firms will provide more transparent financial reports. In addition, the authors find that the consideration of the endogenous relationship between IFRS and credit ratings for developed economies highlights the importance of some variables that was not evident previously such as the degree of corruption and the educational level. Finally, the authors suggest that foreign direct investments are more easily attracted when one considers a joint factor which captures people’s perceptions about the ability of the government to implement policy and regulations that promote the development of public and private sector. Keywords: credit ratings, IFRS, FDI determinants. JEL Classification: C23, C26, M41, E51

scholarly journals INVESTMENT IN EDUCATION AS A KEY DETERMINANT OF AGRICULTURAL INSURANCE GROWTH

2013 ◽  
Vol 1 ◽  
pp. 118-124
Author(s):  
Sofija Adzic ◽  
Dragan Stojic
Keyword(s):  
Economic Freedom ◽  
Formal Education ◽  
Positive Influence ◽  
Regression Method ◽  
Foreign Direct Investments ◽  
Agricultural Insurance ◽  
Demand For Insurance ◽  
Elasticity Of Demand ◽  
Per Capita ◽  
The Impact

The main objective of this paper is to examine the impact of education, on decision tu purchase insurance. We measure the impact of education both through years of formal education and capital invested in research and development. The focus is on insurance in agriculture, due to the fact that Serbia, and it's prominent province of Vojvodina possess mainly agricultural lands. We use regression method incorporating several macro-economic variables as control variables: GDP per capita, index of economic freedom, foreign direct investments and private sector credit, to name few. Main results indicate significant and positive influence of education, as the educational elasticity of demand for insurance is significantly higher than one.

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