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2022 | 46 | nr 4 | 9--26
Tytuł artykułu

The Relationship between IFRS Adoption and Foreign Direct Investments in Gulf Cooperation Council Countries

Warianty tytułu
Związek między przyjęciem MSSF a bezpośrednimi inwestycjami zagranicznymi w krajach Rady Współpracy Zatoki Perskiej
Języki publikacji
EN
Abstrakty
EN
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) estimation 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 empirical evidence and statistical analysis on the effect of IFRS adoption on FDI inflows in the GCC area. (original abstract)
Cel: Celem artykułu jest zbadanie związku między przyjęciem MSSF a napływem bezpośrednich inwestycji zagranicznych (BIZ) na próbie krajów Rady Współpracy Zatoki Perskiej (GCC), tj. Arabii Saudyjskiej, Kuwejtu, Kataru oraz Zjednoczonych Emiratów Arabskich w latach 1990-2020.
Metodyka/podejście badawcze: W artykule zastosowano analizę statystyczną opartą na macierzy korelacji panelowej i panelowego testu pierwiastka jednostkowego w celu określenia właściwości zintegrowania zmiennych. Wykorzystano również podejście Pedroniego do testowania kointegracji między zmiennymi oraz uogólnioną metodę momentów (estymacja GMM) w celu określenia istotności związku między zmiennymi.
Wyniki: Rezultaty badań wskazują, że tylko PKB per capita, kurs walutowy i handel zwiększają napływ BZI w badanych krajach. Przeciwnie do naszych oczekiwań, przyjęcie MSSF okazało się nieistotnym czynnikiem wpływającym na BZI wraz z innymi ekonomicznymi zmiennymi kontrolnymi.
Oryginalność/wartość: Badanie dostarcza dowodów empirycznych i analizy statystycznej związku przyjęcia MSSF z napływem BZI w krajach GCC z użyciem licznych zmiennych kontrolnych. (abstrakt oryginalny)
Rocznik
Tom
46
Numer
Strony
9--26
Opis fizyczny
Twórcy
  • Prague University of Economics and Business ; Lebanese International University, School of Business, Lebanon
  • University of Economics, Prague, PhD student
Bibliografia
  • Ajibade A.T., Okere W., Isiaka M.A., Mabinuori O. (2019), International financial reporting standard (IFRS) adoption and foreign direct investments (FDI): A comparative analysis of Nigeria and Ghana, "Asian Journal of Economics, Business and Accounting", 11 (2), pp. 1-10, DOI: 10.9734/AJEBA/2019/v11i230122.
  • Aziz O.G., Mishra A.V. (2016), Determinants of FDI inflows to Arab economies, "The Journal of International Trade & Economic Development", 25 (3), pp. 325-356, https://doi.org/10.1080/09638199.2015.1057610.
  • Beneish M.D., Miller B.P., Yohn T.L. (2015), Macroeconomic evidence on the impact of mandatory IFRS adoption on equity and debt markets, "Journal of Accounting and Public Policy", 34 (1), pp. 1-27, http://dx.doi.org/10.1016/j.jaccpubpol.2014.10.002.
  • Bushman R.M., Smith A.J. (2001), Financial accounting information and corporate governance, "Journal of accounting and Economics", 32 (1-3), pp. 237-333.
  • Daskalopoulos E., Evgenidis A., Tsagkanos A., Siriopoulos C. (2016), Assessing variations in foreign direct investments under international financial reporting standards (IFRS) adoption, macro-socioeconomic developments and credit ratings, "Investment Management and Financial Innovations", 13 (3-2), pp. 328-340, DOI: 10.21511/imfi.13(3-2).2016.05.
  • Efobi U., Nnadi M., Odebiyi J., Beecroft I. (2014), Do the rules attract the money? Implication of IFRS adoption on foreign direct investment, "Implication of IFRS Adoption on Foreign Direct Investment", 14 (2), pp. 22-44.
  • Golubeva O. (2020), Maximising International Returns: Impact of IFRS on Foreign Direct Investments, "Journal of Contemporary Accounting & Economics", 16 (2), pp. 1-20, https://doi.org/10.1016/j.jcae.2020.100.200.
  • Gordon L.A., Loeb M.P., Zhu W. (2012), The impact of IFRS adoption on foreign direct investment, "Journal of Accounting and Public Policy", 31 (4), pp. 374 -398, http://dx.doi.org/10.1016/j.jaccpubpol.2012.06.001.
  • Kao C., Chiang M.H. (2000), On the estimation and inference of a cointegrated regression in panel data, "Central for Policy Research Paper", 145 (15), pp. 179-222.
  • Lasmin R. (2012), The unwanted effects of international financial reporting standards (IFRS) adoption on international trade and investments in developing countries, "Journal of Economics and Economic Education Research", 13 (1), pp. 1-14.
  • Leuz C. (2003), IAS Versus U.S. GAAP: Information Asymmetry-Based Evidence from Germany's New Market, "Journal of Accounting Research", 41 (3), pp. 445-472, https://doi.org/10.1111/1475-679X.00112.
  • Lim E.-G. (2001), Determinants of, and the relation between, foreign direct investment and growth a summary of the recent literature, IMF Working Paper no 175.
  • Lungu C.I., Caraiani C., Dascălu C. (2017), The impact of IFRS adoption on foreign direct investments: Insights for emerging countries, "Accounting in Europe", 14 (3), pp. 331-357, DOI: 10.1080/17449480.2017.1374546.
  • Mameche Y., Masood A. (2021), Macroeconomic evidence on the impact of mandatory IFRS adoption on FDI in the Gulf Cooperation Council (GCC) countries, "Journal of Accounting in Emerging Economies", 11 (4), pp. 610-631, DOI: 10.1108/JAEE-04-2020-0084.
  • Márquez-Ramos L. (2011), European accounting harmonisation: Consequences of IFRS adoption on trade in goods and foreign direct investments, "Emerging Markets Finance and Trade", 47 (sup4), pp. 42-57, DOI: 10.2753/REE1540-496X4705S403.
  • Nnadi M., Soobaroyen T. (2015), International financial reporting standards and foreign direct investment: The case of Africa, "Advances in Accounting", 31 (2), pp. 228-238, http://dx.doi.org/10.1016/j.adiac.2015.09.007.
  • Owusu G.M., Saat N.A.M., Suppiah S.D.K., Siong H.L. (2017), IFRS adoption, institutional quality and foreign direct investment inflows: A dynamic panel analysis, "Asian Journal of Business and Accounting", 10 (2), pp. 43-75.
  • Pedroni, P. (2004), Panel co-integration: asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis, "Econometric Theory", 20 (3), pp. 597-625.
  • Procházka D.A., Procházková Ilinitchi C. (2011), The theoretical relationships among foreign direct investments, migration and IFRS adoption, "European Financial and Accounting Journal", 6 (4), pp. 1-15, http://dx.doi.org/10.18267/j.efaj.21.
  • Samargandi N.A., Alghfais M., AlHuthail H.M. (2022), Factors in Saudi FDI inflow, "SAGE open", 12 (1), pp.1-12, DOI: 10.1177/21582440211067242.
  • Siriopoulos C., Tsagkanos A., Svingou A., Daskalopoulos E. (2021), Foreign direct investment in GCC countries: The essential influence of governance and the adoption of IFRS, "Journal of Risk and Financial Management", 14 (6), pp. 264, https://doi.org/10.3390/jrfm14060264.
  • Soderstrom, N.S. and Sun, K.J. (2007), IFRS adoption and accounting quality: a review, "European Accounting Review", 16 (4), pp.675-702, DOI: 10.1080/09638180701706732.
  • Toumeh A.A., Yahya S. (2019), A Review of Earnings Management Techniques: An IFRS Perspective, "Global Business & Management Research", 11 (3), pp. 1-13.
  • Trabelsi R. (2016), Are IFRS harder to implement for emerging economies compared to developed countries? A literature review, "Journal of Modern Accounting and Auditing", 12 (1), pp. 1-16, https://doi.org/10.17265/1548-6583/2016.01.001.
  • Yousefinejad M., Ahmad A., Salleh. A., Rahim A. (2018), Causal relationship between International Financial Reporting Standards (IFRS) and foreign direct investment (FDI): a panel data analysis of ASEAN countries, "Asian Journal of Accounting and Governance", 10, pp. 61-72, http://dx.doi.org/10.17576/AJAG-2018-10-06.
  • IAS plus, https://www.iasplus.com/en/resources/ifrs-topics/useof-ifrs (access 12.10. 2022).
  • OECD Benchmark Definition of Foreign Direct Investment, Annex VI (access 12.10. 2022).
  • OECD Library, https://doi.org/10.1787/9a523b18-en (access 12.10. 2022).
  • World Bank Organization official website, https://databank.worldbank.org/metadataglossary/world-developmentindicators (access 29.09.2022).
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171658656

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