The relationship between IFRS adoption and foreign direct investments in Gulf Cooperation Council countries

• Authors: Chehade Sarah , Procházka David

Title variants

PL

Związek między przyjęciem MSSF a bezpośrednimi inwestycjami zagranicznymi w krajach Rady Współpracy Zatoki Perskiej

• Languages of publication: EN

Abstracts

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 prop-erties of variables. The Pedroni panel co-integration approach tests co-integration among variables, and the instrumental Generalized Method of Moments (GMM) estimation tech-nique 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.

PL

Cel: Celem artykułu jest zbadanie związku między przyjęciem MSSF a napływem bezpo-średnich 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 testo-wania 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 zwięk-szają napływ BZI w badanych krajach. Przeciwnie do naszych oczekiwań, przyjęcie MSSF oka-zało się nieistotnym czynnikiem wpływającym na BZI wraz z innymi ekonomicznymi zmien-nymi kontrolnymi. Oryginalność/wartość: Badanie dostarcza dowodów empirycznych i analizy statystycznej związku przyjęcia MSSF z napływem BZI w krajach GCC z użyciem licznych zmiennych kontrolnych.

Keywords

EN

IFRS adoption; foreign direct investment (FDI); GCC countries; emerging economies; co-integration

PL

przyjęcie MSSF; bezpośrednie inwestycje zagraniczne; kraje Rady Współpracy Zatoki Perskiej; wschodzące gospodarki; kointegracja

• Publisher: Stowarzyszenie Księgowych w Polsce (SKwP), Zarząd Główny, Rada Naukowa
• Journal: Zeszyty Teoretyczne Rachunkowości
• Year: 2022
• Issue: 46(4)
• Pages: 9-26

Contributors

author

Chehade Sarah

• Prague University of Economics and Business, Faculty of Finance and Accounting, Department of Accountancy and Financial Management, Czech Republic; Lebanese International University, School of Business, Lebanon

author

Procházka David

• Prague University of Economics and Business, Faculty of Finance and Accounting, Department of Accountancy and Financial Management, Czech Republic

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