Financial Clarity: An Approach to Attracting Domestic and Foreign Investors

Financial reporting is regarded as a reassuring link between the providers of financialresources for city management and urban managers. Although financial sustainableresources are necessary for financing the expenses of managing the city and it isnecessary that a considerable financial transaction be made from central government tothe municipality or any other service-providing organization, the experience of othercountries, especially the developed ones, indicate that moving towards providingsustainable financial resources for managing the cities has gained such a status that it isnot easy to ignore it. The current article, first, the concepts of financial clarity andfinancial reporting are introduced and, then, the importance of trust-building forcitizens and investors is investigated, and, at the end, issues in domestic and foreigninvestment and the role whereof on providing financial resources for municipalities areexplicated. The present research is descriptive, method-wise, the purpose of which is toindicate the effect of financial clarity on attracting citizens and domestic and foreigninvestors for financing urban services and projects. The results indicate that financialclarity in organizations better enables domestic and foreign investors to decide oninvestment in the city and that the citizens would take a more active role in managingthe city.