A Meta-Analysis of The Corporate Governance Impact on Foreign Direct Investment in Kuwaiti Financial Sector

Abstract

This study uses mata-analysis of the existing empirical research to identify and interpret multiple dimensions of the relationship between corporate governance and foreign direct investment in the financial sector of Kuwait. Previous studies are more focused on regression analysis and rarely any holistic interpretations are generated towards a collective understanding of these relationships. There are two main focal findings emerged in this study. Firstly, the study has shown variant correlations across sixty-seven different studies, showing temporal and regional differences for the relationships between CG and FDI. Secondly, the study had compiled a collective list of fourteen components of CG and FDI in the sixty-seven different studies. These components are linked back to a unified theoretical lens developed based on agency and stewardship. The study suggests that both theoretical and practical attempts towards relating CG to FDI, particularly in the financial sector be looked at the factors where there are agency hazards but at the same time a trust component is operating. Therefore, factors such as related to the nationality of foreign investors and perception of the same in the locality are significant to be explore more in future.

Keywords: Corporate governance, foreign direct investment, agency, and stewardship.

DOI: 10.7176/EJBM/15-5-02

Publication date: February 28^th 2023