Subject of this diploma thesis is to provide an overview of economic theories on why companies tend to invest at foreign markets directly and thus to determine the foreign direct investment (FDI) itself. Covered areas include a foreign direct investment typology, motivation to invest, localisation factors, attractiveness and measurement of a host country business environment. Various types of FDI, methodology and forms of FDI statistical coverage analysis is included in the thesis. Three frameworks influencing all the segments of the FDI are covered in depth. These include the foreign policy factors, domestic policy factors and a process of economic transformation in the Czech Republic. Corresponding analytics map a development between a FDI and selected macroeconomic indicators of the Czech Republic. The analysis shows that foreign investment has a certain influence over selected macroeconomic indicators, however it is not always possible to quantify it as well as to predict its trend. On the other side it is often difficult to prove an influence of macroeconomic development on intensity of the FDI inflow to the Czech Republic. Keywords: foreign investment, determinants of the foreign direct investment inflow, foreign direct investment macroeconomic indicators

This study investigates how the mandatory adoption of the international reporting standards IFRS (International Financial Reporting Standards) for publicly listed companies affect countries’ levels of in- and outflow of cross-border capital. The continued harmonization of financial reporting standards on an international level is bringing up questions regarding supposed benefits of their implementation. These benefits cover areas such as increased accessibility of external financing, lower costs of capital, greater opportunities to receive a loan with longer terms, and the perceived improvements to the quality and transparency of annual reports. These factors, along with others, are driving forces as to why countries should experience changes in cross-border flows of capital when they officially adopt IFRS. It is this study’s goal to establish differences and relationships between different components of the international flow of capital and the aforementioned adoption. In this study the components are represented by the dependent variables; foreign direct investment inflow, foreign direct investment outflow, foreign portfolio investment, foreign loans as well as loans that are given to other countries. To analyse differences caused in these values by the adoption, paired t-tests are performed on data consisting of 2 360 observations from 59 countries during the period of 2001-2019. In addition, 42 countries from the continent of Asia are investigated during the period of 2013-2019 with several multiple regression analyses to determine relationships, in this case the data consisted of 4 410 observations. The paired t-tests exhibited statistically significant increases in all variables as of the adoption while the multiple regressions analyses resulted in only one out of five variables having a significant relationship with the event, that variable being foreign direct investment outflow. The results put to question previous studies successful attempts to show significant positive relationships between adoption and countries’ levels of foreign direct investment inflow, foreign portfolio investment, foreign loans and loans given to other countries. The result also has implications for further research in regard to choice of controlling variables as well as method of data collection. / Denna studie undersöker hur den obligatoriska implementeringen av de internationella redovisningsstandarderna IFRS (International Financial Reporting Standards) för börsnoterade företag påverkar länders in- och utgående flöden av gränsöverskridande kapital. Den fortsatta harmoniseringen av redovisningsstandarder på internationell nivå tar upp frågor gällande implementeringens påstådda fördelar. Fördelar som implementering av IFRS leder till täcker områden såsom ökad tillgänglighet av extern finansiering, lägre kapitalkostnader, större möjligheter att ta ut lån med längre löptider, och att årsredovisningar upplevs få bättre kvalitet och bli mer transparenta. Ovanstående faktorer m.fl. utgör grunden till varför länder borde uppleva förändringar i gränsöverskridande kapitalflöden i och med implementering av redovisningsstandarderna. Det är denna studies mål att etablera skillnader och samband mellan olika beståndsdelar av det internationella kapitalflödet och denna implementering. De beståndsdelarna representeras i denna studie av de fem olika beroende variablerna; ingående utländsk investering, utgående utländsk investering, utländsk portföljinvestering, utländska lån samt lån som delas ut till andra länder. För att undersöka ifall skillnader uppstår i dessa värden i och med implementering utförs parade t-test på ett dataunderlag av 2 360 antal observationer tagna från 59 länder under perioden 2001–2019. Dessutom undersöks 42 länder i kontinenten Asien under perioden 2013–2019 med multipla regressionsanalyser för att påvisa samband, datan i detta fall uppgick till 4 410 stycken observationer. T-testen visade på statistiskt signifikanta ökningar i alla variabler i och med implementeringen av IFRS medan de multipla regressionsanalyserna resulterade i att endast en av de fem olika variablerna, nämligen utgående utländsk investering, hade ett signifikant positivt samband med händelsen. Resultaten problematiserar tidigare studier som föreslår att det existerar signifikanta positiva samband mellan implementering och länders nivåer av ingående utländsk investering, utländsk portföljinvestering, utländska lån och lån som delas ut till andra länder. Undersökningen har även implikationer för framtida undersökningars val av kontrollvariabler och datainsamlingsmetod.