Measuring the Impact of Implementing the Principles of Corporate Governance in attracting Foreign Investments: Field Evidences from Jordanian Environment

Abstract

Purpose: The study aimed to measure the impact of implementing principles of corporate governance in attracting foreign investments.

Results: All the investments have positive impact upon local economy. Jordan has reformed its economic infrastructure to join the global economy. The reform has attracted international contracts. It was found that implementation of the principles of corporate governance played important role in attracting foreign investments by enhancing the reliability it created in the financial statements that play important role in building investor trust, and thus enabling companies to become global and capable of competing with others in the international markets.

Recommendations: Encouraging auditors to prepare their reports in compliance with the principles of corporate governance. Further advising foreign investors to look deeply in the infrastructures of Jordanian companies aimed at facilitating implementation of the principles of corporate governance.