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

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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)

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.

Suggested Citation

  • Haliti Rudhani Leonora & Ismajli Hysen & Mustafa Albulena, 2017. "The Importance of the Audited Financial Statement in Attracting Foreign Investors in Private Sector in Kosovo," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 5(1), pages 118-136, November.
    • Handle: RePEc:vrs:bjrecm:v:5:y:2017:i:1:p:118-136:n:9
    DOI: 10.1515/bjreecm-2017-0009
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    References listed on IDEAS

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    1. Ghosh, Saibal, 2007. "External Auditing, Managerial Monitoring and Firm Valuation: An Empirical Analysis for India," MPRA Paper 17142, University Library of Munich, Germany.
    2. Berry, Aidan & Robertson, Jenny, 2006. "Overseas bankers in the UK and their use of information for making lending decisions: Changes from 1985," The British Accounting Review, Elsevier, vol. 38(2), pages 175-191.
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