Samaher Sami Alasiri


The main objective of this research is to investigate the impact of corporate governance on foreign investment. Also, it aims to check whether there is a relationship between corporate governance on foreign investment. The researcher applied the quantitative approach, using the questionnaire to collect the required data. The participants of the study were financial managers and their representatives in Saudi Arabian shareholding companies. The collected responses were only (60) responses. The Statistical Program for Social Sciences (SPSS) was used for data analysis. The study revealed that corporate governance contributes to a reduction in creative accounting practices and thus increases the confidence of foreign investors. The study found that there is a direct association between the application of Corporate Governance and the attraction of foreign investment to the domestic economy in Saudi Arabia. The study recommended that corporate governance not only sets up a system of institutions that govern the relationship between owners, investors, creditors, and managers but also it would contribute in the creation of a good investment environment that attract foreign investment. The obligation to apply corporate governance’ principles is considered one of the essential methods that provide foreign investors with a high level of trust.

JEL: G30, G34, O16


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corporate governance, foreign investments, shareholding companies, creative accounting

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