دانلود رایگان مقاله استانداردهای گزارشگری مالی بین المللی و سرمایه گذاری مستقیم خارجی

Abstract

A number of empirical studies have shown that the adoption of International Financial Reporting Standards (IFRS) promotes foreign direct investment (FDI) in developing countries and this finding chimes with pronouncements and policies of various international organisations such as the World Bank (WB) and the International Monetary Fund (IMF). Contrastingly, and on the basis of a study of 34 countries over a 20year period, our study provides empirical evidence that the comparability effect of full IFRS adoption portend a negative impact on the net FDI of African countries. Our findings have two key implications. First, in the case of Africa, foreign investors appear to be concerned with the costs of operating in an IFRS-regulated environment. Secondly, fundamental institutional structures such as the rule of law, the legal system and the level of corruption, rather than IFRS adoption, appear more important in sustaining or enhancing the level of FDI in African countries.

5. Discussion of results and conclusions

Our pooled OLS result (Table 5) indicates that INFRAST and SPINT have negative impact on the net FDI of African countries. As demonstrated in Bartels et al. (2013), a lack of infrastructure can stall economic growth. Therefore investing in infrastructure that allows the efficient global trade integration is essential for optimum result. A rise in the level of a country's infrastructural development by 1 could cause a fall of 11.2% of its net FDI. Additionally, a rise in the SPINT of a country will trigger about 0.18% reduction in the net FDI. This result could be explained by the fact that resource-seeking FDIs, which are common in Africa, are mostly not determined by the availability of basic infrastructure but by the availability of raw materials- which confirms the location advantage of the OLI paradigm. The SPINT is a measure of determining the net interest rates charged on IMF loan obtained by member countries. Currently, the rates are submitted implicitly by the currencies employed in the special drawing rights which are: US$, Pound Sterling, Japanese Yen and Euros (Reich, 2013). The significant negative result of the global interest rate (SPINT) implies a perceived high risk premium on African investments which could lead to a higher threshold of expected return to trigger FDI flows. This can render the continent less competitive, compared with other emerging markets.