Impact of The Quality of Financial Reporting Environment on the Organizational Foreign Direct Investment in the Arab Countries
The study aimed at revealing the nature of the relationship between foreign direct investment and the quality of the Arab financial reporting environment
after adopting IFRS during the period 2007 - 2018. To study this relationship, the paper uses panel cointegration with a corresponding vector error
correction model (VECM) to investigate in three main areas: Business impact of rules on FDI, FDI based on technology transfer, Prevalence of foreign
ownership, by using the Eviews.7 program. The results showed a long-run relationship between the quality of the Arab financial reporting environment
and the foreign direct investment in all indicators and the same period. This is the first study that we are aware of to directly examine this relation in
Arab Economies, thus, this paper provides new empirical evidence in Arab Economies for increased resource allocation efficiency.