Do Audit and Accounting Practices Matter for Greenfield FDI Inflows?

Abstract The study examines how the strength of application audit and accounting standards, as a component institutional infrastructure, affects greenfield FDI in four countries former Socialist Federal Republic Yugoslavia over twelve-year period (2006-2017). Using standard panel data econometric techniques, we conclude that stronger standards has positive impact on attracting FDI, seems to be more important stable business conditions. Our results are relevant policy makers, they point need for constant improvement system, thus encouraging better transparency lower transaction costs investors.