The Impact of Financial Reporting on the Financial Market in Kosovo

Kosovo is emerging from an era of totalitarian government and a collective ownership economy. Privatization is a key process of the strategy for economic renewal, though the lack of high quality financial reporting in most sectors of Kosovo's has had severe negative consequences for economic development. Investment by both foreign and Kosovar investors is discouraged and the privatization of previously publicly owned businesses has been done without financial reports, so that the value received has often been far less than the value of the businesses. In addition, the lack of quality financial reporting has meant that it has not been possible to create a securities market so the only source of investment is through loans by banks which charge high interest rates due to the lack of competition. Strategies for the development of quality financial accounting and a security market are considered