Abstract
This study empirically examines the impact of International Financial Reporting Standards (IFRS) adoption, on the Foreign Direct Investment (FDI) inflows in Algeria, for the period 1970-2017. Although a limited number of empirical studies have been conducted on the association of IFRS adoption with FDI inflows, there has been no prior research in the Algerian context. The analysis was conducted, using the Toda-Yamamoto Granger Causality Approach and the Autoregressive Distributed-lag (ARDL) Bounds Testing Technique. The findings revealed evidence that IFRS adoption did have a significant negative effect on FDI inflows Algeria, both in the long-run as well as in the short-run. The findings offered several significant implications for governments, policymakers, investors, managers, researchers, practitioners and other interested groups, interested in understanding the economic importance of adopting international accounting standards, as one of the driving determinants of FDI inflows in developing countries.