Foreign Direct Investment Inflow in the Context of IFRS Adoption: Evidence from Slovakia

Radoslav Tusan – Department of Finance, Faculty of Economics, Technical University of Košice, Nemcovej 32, 042 00
Košice, Slovak Republic

Abstract

IFRS can be considered a global accounting standard; by accept­ing it, the country can help increase the transparency of financial state­ments. Increased transparency will subsequently attract new foreign inves­tors who prefer markets with high-quality information and provide them with the opportunity to assess investments at low costs and low risk. The adoption of IFRS can bring positive macroeconomic effects to countries, from which they can subsequently benefit and improve their overall econo­my. The article analyzes the impact of the adoption of IFRS on FDI in the Slo­vak Republic for the period from 1995 to 2020 through the correlation coeffi­cients of various related variables. Two research objectives were specified in the article: 1) the adoption of IFRS does not have a significant effect on the inflow of FDI; 2) the adoption of IFRS has a significant impact on the inflow of FDI. The comparison of correlation coefficients showed interesting results in the mentioned context.

LIMEN Conference

8th International Scientific-Business Conference – LIMEN 2022 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Hybrid (EXE Budapest Center, Budapest, Hungary), December 1, 2022,

LIMEN Conference proceedings published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia

LIMEN Conference 2022 Conference proceedings: ISBN 978-86-80194-66-0, ISSN 2683-6149, DOI:  https://doi.org/10.31410/LIMEN.2022

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

Suggested citation

Tusan, R. (2022). Foreign Direct Investment Inflow in the Context of IFRS Adoption: Evidence from Slovakia. In V. Bevanda (Ed.), International Scientific-Business Conference – LIMEN 2022: Vol 8. Conference proceedings (pp. 75-79). Association of Economists and Managers of the Balkans.  https://doi.org/10.31410/LIMEN.2022.75

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