The Determinants Of Capital Flight: Evidence From MENA Countries

This paper examines the determinants of capital flight in seven Middle East and North Africa (MENA) countries during the period of 1981-2008. The results are robust to four econometrics techniques: Ordinary least Squares, Fixed effects, Random Effects, and Seemingly Unrelated Regression Model. The empirical findings indicate that the capital flight in MENA countries is driven mainly by lag capital flight, external debt, foreign direct investment, real GDP growth rate and uncertainty. Based on these results, the paper recommends that governments in these countries should manage their external debt efficiently, and stabilize their monetary and macroeconomic policies in order to staunch capital flight

The effect of qualified auditors' opinions on share prices: evidence from Jordan

Purpose – This study aims at investigating the effect of the qualified audit reports on shares prices and returns in Jordan. Design/methodology/approach – A market-based study conducted on the qualified audit reports of the shareholding companies in Jordan during the period 2000-2005. Findings – The conclusions of the study showed that there is no clear or significant effect of a qualified audit opinion on share prices and returns. Practical implications – Based on the conclusions of the study, the researchers recommend there is a need for further educating users of the role of the audit report and the need for extending this study to investigate the effect of the qualified audit reports on share prices and returns during other periods and using different test periods other than the announcement date. Originality/value – This study is original because it provides us with new evidence about the effect of qualified audit reports on shares prices and returns in a developing country.Audit reports, Auditing, Jordan, Share prices