The Importance of the Audited Financial Statement in Attracting Foreign Investors in Private Sector in Kosovo

Haliti Rudhani Leonora, Ismajli Hysen () and Mustafa Albulena
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Haliti Rudhani Leonora: University of Applied Sciences Ferizaj, Ferizaj, Republic of Kosovo
Ismajli Hysen: University of Prishtina, Prishtina, Republic of Kosovo
Mustafa Albulena: University of Prishtina, Prishtina, Republic of Kosovo

Baltic Journal of Real Estate Economics and Construction Management, 2017, vol. 5, issue 1, 118-136

Abstract: Responding to globalization of the international business environment the companies need to draw and present reliable and comparable audited financial statements, and consequently there is a vital need to implement international financial reporting standards. Foreign investments in Kosovo as a new developing country are growing. The purpose of this paper is to consider the role of audited financial statements in encouraging foreign investment in the private sector in Kosovo. To examine this issue, we have analysed three determinant factors in presenting financial statements to the foreign investors: auditor’s report, auditor reputation and relevance of auditor’s findings. The results of this study indicate that these variables have a positive effect on promotion of foreign investment. These results also revealed that audited financial statements are very important for Kosovo companies in order to ensure an equal worldwide treatment.

Keywords: Audited financial statements; audit report; auditor reputation; foreign investments; findings (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:bjrecm:v:5:y:2017:i:1:p:118-136:n:9

DOI: 10.1515/bjreecm-2017-0009

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