An empirical analysis of the impact of corporate transparency on foreign direct investment

This study tests for the relation between corporate transparency and foreign direct investment (FDI) using a sample of 118 countries. The study also develops a set of indicators to measure corporate transparency. The findings indicate support for the hypotheses that a) greater levels of corporate transparency are associated with higher levels of inward FDI flows, and b) corporate transparency has a greater impact on inward FDI in developing countries than developed countries.