<abstract xmlns="http://www.w3.org/1999/xhtml"><p> 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.</p></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.

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

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Responding to globalization of the international business environment the companies need to draw and present reliable and comparable audited financial...

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

Published Online: Nov 28, 2017

Page range: 118 - 136

DOI: https://doi.org/10.1515/bjreecm-2017-0009

Keywords
Audited financial statements, audit report, auditor reputation, foreign investments, findings

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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

Published Online: Nov 28, 2017

Page range: 118 - 136

DOI: https://doi.org/10.1515/bjreecm-2017-0009

KeywordsAudited financial statements, audit report, auditor reputation, foreign investments, findings

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Audited financial statements, audit report, auditor reputation, foreign investments, findings