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

Author(s): Radoslav Tusan
Subject(s): Social Sciences, Economy
Published by: Udruženje ekonomista i menadžera Balkana
Summary/Abstract: IFRS can be considered a global accounting standard; by accepting it, the country can help increase the transparency of fnancial 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 beneft 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 coefcients of various related variables. Two research objectives were specifed in the article: 1) the adoption of IFRS does not have a signifcant effect on the inflow of FDI; 2) the adoption of IFRS has a signifcant impact on the inflow of FDI. The comparison of correlation coefcients showed interesting results in the mentioned context.

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