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Journal articles on the topic 'Quality of financial reporting'
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Bohusova, Hana. "Financial Reporting Quality." International Journal of Monetary Economics and Finance 13, no. 3 (2020): 1. http://dx.doi.org/10.1504/ijmef.2020.10028791.
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Brown, Paul R. "Quality Financial Reporting." International Journal of Accounting 38, no. 3 (2003): 395–96. http://dx.doi.org/10.1016/s0020-7063(03)00049-9.
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Lee, Tom. "Financial Reporting Quality Labels." Accounting, Auditing & Accountability Journal 7, no. 2 (1994): 30–49. http://dx.doi.org/10.1108/09513579410058256.
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Aderin, A., and J. P. Otakefe. "International financial reporting standards and financial reporting quality in Nigeria." Journal of Science and Technology (Ghana) 35, no. 3 (2016): 73. http://dx.doi.org/10.4314/just.v35i3.7.
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Dibua, Ekene C., Joy N. Ikilidih, and Emmanuel C. Ibekie. "Effect of International Financial Reporting Standards on Financial Reporting Quality." Journal of Global Interdependence and Economic Sustainability 3, no. 7 (2024): 1–11. https://doi.org/10.5281/zenodo.12692678.
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<em>The adoption and implementation of International Financial Reporting Standards (IFRSs) in different countries of the world has become a contemporary issue particularly with regard to the quality of financial reports. The study reported that various studies used positive approach and some used positive pattern. Some Studies used either of primary or secondary sources of data. The study looked at the impact of the International Financial Reporting Standard (IFRS) on financial reporting comparability, reliability, and understandability. The current investigation was carried out as a desk review. The search was conducted using the term Quality of Financial Reporting, and the results were based on publications found in internet databases. Due to complex and competitive business contexts, it is necessary to comprehend the quality of financial reporting and to be aware of the influences. The study found that IFRS adoption are determined by comparing the parameters concerned between pre and post IFRS regimes in given jurisdictions. The review concept and empirical evidences of IFRS adoption and financial reporting quality from many countries reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though its impact has been reported to be positive in majority of studies.</em>
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Choi, Yun－Yee. "Advertising and Financial Reporting Quality." Korean Business Education Review 35, no. 5 (2020): 481–500. http://dx.doi.org/10.23839/kabe.2020.35.5.481.
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Monroe, Gary S. "Financial Reporting and Audit Quality." Australian Accounting Review 21, no. 3 (2011): 203. http://dx.doi.org/10.1111/j.1835-2561.2011.00137.x.
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Jonas, Gregory J., and Jeannot Blanchet. "Assessing Quality of Financial Reporting." Accounting Horizons 14, no. 3 (2000): 353–63. http://dx.doi.org/10.2308/acch.2000.14.3.353.
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GARRETT, JACE, RANI HOITASH, and DOUGLAS F. PRAWITT. "Trust and Financial Reporting Quality." Journal of Accounting Research 52, no. 5 (2014): 1087–125. http://dx.doi.org/10.1111/1475-679x.12063.
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Salah, Wafaa, and Abdallah Abdel-Salam. "The Effects of International Financial Reporting Standards on Financial Reporting Quality." Athens Journal of Business & Economics 5, no. 3 (2019): 221–42. http://dx.doi.org/10.30958/ajbe.5-3-3.
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Florou, Annita, Serena Morricone, and Peter F. Pope. "Proactive Financial Reporting Enforcement: Audit Fees and Financial Reporting Quality Effects." Accounting Review 95, no. 2 (2019): 167–97. http://dx.doi.org/10.2308/accr-52497.
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ABSTRACT We examine the costs and benefits of proactive financial reporting enforcement by the U.K. Financial Reporting Review Panel. Enforcement scrutiny is selective and varies by sector and over time, yet can be anticipated by auditors and companies. We find evidence that increased enforcement intensity leads to temporary increases in audit fees and more conservative accruals. However, cross-sectional analysis across market segments reveals that audit fees increase primarily in the less-regulated AIM segment, and especially those AIM companies with a higher likelihood of financial distress and less stringent governance. On the contrary, less reliable operating asset-related accruals are more conservative in the Main segment and, in particular, those Main companies with stronger incentives for higher financial reporting quality. Overall, our study indicates that financial reporting enforcement generates costs and benefits, but not always for the same companies. JEL Classifications: K42; M41; M42; M48. Data Availability: Data are available from the public sources cited in the text.
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Kaawaase, Twaha Kigongo, Catherine Nairuba, Brendah Akankunda, and Juma Bananuka. "Corporate governance, internal audit quality and financial reporting quality of financial institutions." Asian Journal of Accounting Research 6, no. 3 (2021): 348–66. http://dx.doi.org/10.1108/ajar-11-2020-0117.
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PurposeThe purpose of this study is to establish the relationship between corporate governance attributes (board expertise, board independence and board role performance), internal audit quality and financial reporting quality using evidence from Uganda's financial institutions.Design/methodology/approachThis study research design is cross sectional and correlational. The study used a questionnaire survey of Chief Finance Officers, Senior Accountants and Internal audit managers of financial institutions in Uganda. Data were analyzed with the help of Statistical Package for Social Sciences.FindingsResults indicate that board expertise and board role performance are significantly associated with financial reporting quality. Also, internal audit quality is significantly associated with financial reporting quality. Board independence is not a significant predictor of financial reporting quality.Originality/valueThis paper provides insights of what matters for financial reporting quality in Uganda's financial reporting quality. It uses the qualitative characteristics of financial statements to measure financial reporting quality. This paper focuses mainly on the conceptual framework developed by the International Accounting Standards Board.
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Lobo, Gerald J., Yuan Xie, and Joseph H. Zhang. "Innovation, financial reporting quality, and audit quality." Review of Quantitative Finance and Accounting 51, no. 3 (2017): 719–49. http://dx.doi.org/10.1007/s11156-017-0686-1.
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McDaniel, Linda, Roger D. Martin, and Laureen A. Maines. "Evaluating Financial Reporting Quality: The Effects of Financial Expertise vs. Financial Literacy." Accounting Review 77, s-1 (2002): 139–67. http://dx.doi.org/10.2308/accr.2002.77.s-1.139.
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Audit committees evaluate financial reporting quality as part of their corporate oversight responsibilities. Given this responsibility, the national stock exchanges now require all audit committee members to be financially literate and at least one member to have financial expertise. In light of recent debates over this requirement, we provide evidence on how experts and literates differ in their evaluations of financial reporting quality. Results suggest that experts' evaluations of financial reporting quality are more strongly associated with their assessments of characteristics underlying reporting quality (e.g., relevance) espoused in Statement of Financial Accounting Concepts No. 2's framework than literates' evaluations. Additionally, literates are more likely than experts to identify concerns about reporting treatments for business activities that are prominent in the business press or are distinguished by their nonrecurring nature, while experts are more likely to raise concerns about reporting treatments for less prominent, recurring activities. This same pattern occurs in the ratings of the quality of the reporting treatments for specific financial statement items with respect to elements underlying reporting quality (e.g., neutrality); literates (experts) assess the quality elements for the reporting treatments of prominent and nonrecurring items (less prominent and recurring items) comparatively lower than experts (literates). These results suggest that including financial experts on audit committees is likely to change the structure and focus of audit committee discussions about financial reporting quality, and may affect the committee's overall assessment of the quality of a company's financial reports.
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Anastasia Chi-Chi (PhD), Onuorah, and Imene Oghenefegha Friday. "Corporate Governance and Financial Reporting Quality in Selected Nigerian Company." International Journal of Management Science and Business Administration 2, no. 3 (2014): 7–16. http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.23.1001.
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This paper evaluated the level of performance of some selected companies ranging from commodities, brewery, banking, oil and gas and beverages in terms of corporate governance measure indictors on the firm quality of financial reporting in Nigeria. The data were collected from 2006 to 2015. Econometric analysis were conducted and the result suggests that the correlation among corporate governance indicators of board structure (size-BRDSZ and independence-BRDID), audit quality (audit committee size (ADCMZ), the quality of external audit (EADTQ) as measured by the presence of an auditor among the big-4), board experience (i.e. experience-BRDEX) and financial reporting quality is 93.47%. The independent variables can explain the variation in the FRQDA by 54.29%. There is overall significance among the parameters measuring financial reporting quality as discretionary accruals of firm (FRQDA). Board structure (size-BRDSZ), board experience (experience-BRDEX) and the quality of external audit (EADTQ) have positive impact on the financial reporting quality measured by the discretionary accruals of firm (FRQDA) by 16.01, 0.05 and 2.75. However, independent directors on the board of firm (independence-BRDID) and audit quality (audit committee size (ADCMZ) negatively affect financial reporting quality measured by the discretionary accruals of firm (FRQDA) as much as 0.99 and 20.01. Guarantee Trust Bank Plc. among the five selected companies of study in Nigeria has better performance of financial reporting based on board structure (size-BRDSZ) and audit committee size (ADCMZ). This revealed that there is short run relationship among Audit quality (audit committee size (ADCMZ), and the quality of external audit (EADTQ) as measured by the presence of an auditor among the big-4) and board experience (i.e. experience-BRDEX) have not granger cause FRQDA. It further recommended that greater focus on corporate governance indicators so as to bring about global standard financial reporting in the Nigerian emerging market for investment opportunity.
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Huang, Hua-Wei, Ena Rose-Green, and Chih-Chen Lee. "CEO Age and Financial Reporting Quality." Accounting Horizons 26, no. 4 (2012): 725–40. http://dx.doi.org/10.2308/acch-50268.
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SYNOPSIS: This study examines the association between chief executive officer (CEO) age and the financial reporting quality of firms. The financial reporting qualities examined are the meeting or beating of analyst earnings forecasts and financial restatements. Based on extant research, we hypothesize that older CEOs are associated with higher-quality financial reporting. Using a sample of 3,413 firms for the period 2005 to 2008, we find a positive association between CEO age and financial reporting quality. Specifically, we find that CEO age is negatively associated with firms meeting or beating analyst earnings forecasts and financial restatements. Our study therefore extends the corporate governance and financial reporting quality literature by identifying CEO age as a determinant of financial reporting quality. Data Availability: Data are publicly available.
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Muttakin, Mohammad Badrul, Dessalegn Mihret, Tesfaye Taddese Lemma, and Arifur Khan. "Integrated reporting, financial reporting quality and cost of debt." International Journal of Accounting & Information Management 28, no. 3 (2020): 517–34. http://dx.doi.org/10.1108/ijaim-10-2019-0124.
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Purpose Although proponents of integrated reporting (IR) advocate that this emerging practice has the potential to transform corporate reporting, the eventuation of this expectation would depend on the incentive IR provides to firms. This study aims to examine whether IR is associated with cost of debt and whether IR moderates the relationship between financial reporting quality and cost of debt. Design/methodology/approach Based on insights drawn from information asymmetry and agency theories, the authors develop models that link IR and financial reporting quality with a firm’s cost of debt. The authors analyze 847 firm-year observations drawn from non-financial firms traded on the Johannesburg Stock Exchange, for the period between 2009 and 2015. Findings The authors find that firms that provide integrated reports tend to have a lower cost of debt than those do not provide IR. The authors also find an inverse association between financial reporting quality and cost of debt, and that integrated reports accentuate this association. The findings suggest that the debt market perceives value in the information presented in integrated reports beyond what is furnished in financial reports. Originality/value To the best of the authors’ knowledge, this study is the first to document evidence suggesting that the debt market perceives value in the information presented in integrated reports, beyond what is furnished in financial reports.
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Angela, Windy, and Rilya Aryancana. "The Effect of Financial Reporting Quality on Financing and Investment." Global Journal of Business and Social Science Review (GJBSSR) Volume 4 (2016: Issue-3) 4, no. 3 (2016): 113–20. http://dx.doi.org/10.35609/gjbssr.2016.4.3(16).
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Objective - This study examines the effect of financial reporting quality on financing and investment of 15 large Indonesian companies that may still be under-investing in relation to its regional peers. Methodology/Technique - This research uses the quantitative research technique which involves field search, library research and statistical methods. Findings - The results suggest that (1) financial reporting quality has negative effect on financing (2) financial reporting quality has positive effect on investment among companies with higher likelihood of over-investing and negative effect on investment among those with higher likelihood of under-investing. Novelty - This research is complementary to previous researchers because they use financial reporting data of companies located in the United States whose domestic capital markets remain the largest and deepest globally. This might affect the degree of information asymmetry and financing frictions that companies face and hence, lead to an upward bias of the effect. Meanwhile, this research is conducted in Indonesia whose non-financial companies obtain nearly 50% of their financing from abroad via loans, bonds, and other credit. Type of Paper - Conceptual Type of Paper - Financial reporting quality; Financing; investment; Likelihood of over-investing; Likelihood of under-investing.
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Kim, Im Hyeon. "Tax Audit and Financial Reporting Quality." Korean Accounting Journal 26, no. 6 (2017): 203–36. http://dx.doi.org/10.24056/kaj.2017.12.001.
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Alzeban, Abdulaziz. "CAE Remuneration and Financial Reporting Quality." Revista de Contabilidad 24, no. 1 (2021): 90–103. http://dx.doi.org/10.6018/rcsar.367981.
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Remuneración del Director Ejecutivo de la Auditoría y Calidad de la Información Financiera. En este trabajo se explora la relación entre la remuneración fija pagada al Director Ejecutivo de Auditoría (CAE) y la consiguiente calidad de la información financiera (FRQ). Así, se argumenta que una estrategia de remuneración basada en el rendimiento de la empresa es perjudicial para la FRQ, y que cuando el CAE recibe una remuneración fija, hay menos amenazas para la objetividad de la auditoría interna (IA) y, por lo tanto, una mayor FRQ como aproximación a la calidad de los informes financieros. Los datos se obtienen a través de una encuesta, y la información se recoge de los informes anuales. Los resultados indican que cuando el CAE es compensado de acuerdo con el desempeño de la empresa, la objetividad se reduce, con el consiguiente resultado de que la FRQ se ve afectada. Además, cuando la remuneración y compensación del CAE es aprobada por el comité de auditoría, en lugar de por el CEO, la FRQ es mayor. También se encuentran pruebas de que los efectos de la objetividad de la IA se eliminan cuando el CEO participa en la aprobación de la remuneración y compensación del CAE. El estudio aporta ideas sobre la cuestión de si la remuneración del CAE mejora la objetividad de la IA y, al hacerlo, es de interés para los comités de auditoría con responsabilidad en esa dirección. Se utilizan dos métodos de estimación diferentes para confirmar la solidez de los resultados. This paper reports on a study exploring the relationship between the fixed remuneration paid to the Chief Auditing Executive (CAE), and the subsequent financial reporting quality (FRQ). The study argues from the viewpoint that a strategy of compensation provided on the basis of company performance is detrimental to FRQ, and that when the CAE receives fixed remuneration, there is less threat to internal audit (IA) objectivity, and hence, greater FRQ as proxied by accruals quality. Data are obtained via a survey questionnaire, and information offered within annual reports. The findings indicate that when the CAE is compensated according to company performance, objectivity is reduced, with the consequent outcome that FRQ is impaired. Furthermore, when CAE remuneration and compensation are approved by the audit committee, rather than by the CEO, FRQ is higher. Evidence that the effects of IA objectivity are eliminated when the CEO is involved in approving CAE remuneration and compensation is also found. The study provides insights into the question of whether CAE remuneration enhances IA objectivity, and in doing so is of interest to audit committees with responsibility in that direction. Two different estimation methods are used as a means of confirming the robustness of these results.
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Filip, Andrei, Réal Labelle, and Stéphane Rousseau. "Legal Regime and Financial Reporting Quality." Contemporary Accounting Research 32, no. 1 (2014): 280–307. http://dx.doi.org/10.1111/1911-3846.12071.
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Malinic, Dejan. "Ethical dimensions of financial reporting quality." Ekonomika preduzeca 59, no. 5-6 (2011): 243–61. http://dx.doi.org/10.5937/ekopre1106243m.
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Park, KoEun. "Financial reporting quality and corporate innovation." Journal of Business Finance & Accounting 45, no. 7-8 (2018): 871–94. http://dx.doi.org/10.1111/jbfa.12317.
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Rubin, Amir, and Dan Segal. "Directors skill and financial reporting quality." Journal of Business Finance & Accounting 46, no. 3-4 (2018): 457–93. http://dx.doi.org/10.1111/jbfa.12359.
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Abiodun, Olatunde Omotayo, Tunji Trimisiu Siyanbola, and Amos Adejare Aderibigbe. "Corporate Governance and Financial Reporting Quality." International Journal of Economics, Business and Management Research 08, no. 09 (2024): 155–63. http://dx.doi.org/10.51505/ijebmr.2024.8910.
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This research delves into the influence of corporate governance on the quality of financial reporting by conducting an extensive review of existing literature. The analysis sourced articles from accounting journals and published materials from 2013 to 2023. Through this examination, we identified areas with inadequate information and gaps in the literature, underlining the necessity for further research. Furthermore, this paper presents pivotal insights and investigates various facets of financial reporting quality. The study reviewed six theories -stakeholders' theory, agency theory, stewardship theory, core competencies theory, transaction cost analysis theory, and resource-based view theory. This study concludes that corporate governance has significant implications for the quality of financial reporting.
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Al-Shaer, Habiba, Aly Salama, and Steven Toms. "Audit committees and financial reporting quality." Journal of Applied Accounting Research 18, no. 1 (2017): 2–21. http://dx.doi.org/10.1108/jaar-10-2014-0114.
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Purpose The purpose of this paper is to examine the determinants of the volume of environmental disclosures and their quality, with particular focus on the role of audit committees (ACs) and the effects of the Smith report recommendations for the UK Corporate Governance Code. Design/methodology/approach Quantitative large sample analysis of UK FTSE350 companies for the period 2007-2011. Findings Firms with higher quality ACs make higher quality disclosures. Larger firms with block shareholders have greater volume of disclosures, whilst AC quality does not increase disclosure volume. Research limitations/implications Findings are based on evidence from single country and imply further international comparative research. Practical implications ACs mitigate the requirement for prescriptive legislation on narrative accounting disclosures relating to environmental issues. Originality/value The paper contributes to research that has examined the relationship between corporate governance mechanisms, specifically ACs, and the quality of financial reporting by considering voluntary narrative disclosures on environmental matters.
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HAM, CHARLES, MARK LANG, NICHOLAS SEYBERT, and SEAN WANG. "CFO Narcissism and Financial Reporting Quality." Journal of Accounting Research 55, no. 5 (2017): 1089–135. http://dx.doi.org/10.1111/1475-679x.12176.
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Call, Andrew C., John L. Campbell, Dan S. Dhaliwal, and James R. Moon. "Employee quality and financial reporting outcomes." Journal of Accounting and Economics 64, no. 1 (2017): 123–49. http://dx.doi.org/10.1016/j.jacceco.2017.06.003.
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Šodan, Slavko, Ivana Perica, and Stipe Ćurković. "AGENCY CONFLICTS AND FINANCIAL REPORTING QUALITY." Ekonomska misao i praksa 32, no. 2 (2023): 495–509. http://dx.doi.org/10.17818/emip/2023/2.10.
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This paper examines the impact of agency conflicts in owner-manager-creditors relations on financial reporting quality. Based on arguments from the agency theory and the positive accounting theory, we assume that companies without debt and in which managers are ultimate owners, i.e. where agency conflicts are not profound, have a higher earnings quality than companies using financial leverage and with separated owner-manager role. The data for empirical part of the research was gathered from Orbis Europe database. The sample consists of very large, large, and medium-sized companies from Croatia, Serbia, and Slovenia with financial data covering 2018 and 2019. In order to test research hypotheses the sample is divided into two groups depending on a company's ownership and debt characteristics. Descriptive statistics, univariate tests, correlation analysis and regression analysis are used to analyse the results. Our findings indicate that there is no statistically significant difference in the earnings quality concerning the type of ownership, while the level of financial leverage, by contrast, significantly decreases the earnings quality.
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Gaynor, Lisa Milici, Andrea Seaton Kelton, Molly Mercer, and Teri Lombardi Yohn. "Understanding the Relation between Financial Reporting Quality and Audit Quality." AUDITING: A Journal of Practice & Theory 35, no. 4 (2016): 1–22. http://dx.doi.org/10.2308/ajpt-51453.
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SUMMARY A primary goal of both financial reporting research and audit research is to understand the determinants of quality, and researchers in both areas have identified a wide set of variables that enhance or impair quality. In this paper, we define financial reporting quality and audit quality and use a person/task/environment framework to summarize prior findings on the determinants of each. We use this framework to discuss the links between the financial reporting and audit academic literatures and highlight the recursive relation between financial reporting quality and audit quality. Our discussion provides insights and suggestions on how financial reporting and audit researchers can learn from each other to improve our collective understanding of financial reporting and audit quality. Using this framework, we also identify opportunities for future research.
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Angela, Windy, and Rilya Aryancana. "The Effect of Financial Reporting Quality on Financing and Investment." ETIKONOMI 16, no. 1 (2017): 81–92. http://dx.doi.org/10.15408/etk.v16i1.4600.
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This paper analysis the effect of reporting quality on financing and investment. It is important for us to understand the relation among them in order to prepare Indonesian companies for ASEAN Economic Community in 2015. The study examines the effect of financial reporting quality on financing and investment of 15 Indonesian companies with large market capitalization based on the Standard and Poor’s Rating Services in its first survey of the major corporate credit trends in the Association of Southeast Asian Nations (ASEAN). Those companies may still be under-investing in relation to its regional peers. The results suggest that (1) financial reporting quality has negative effect on financing. (2) financial reporting quality has positive effect on investment among companies with higher likelihood of over-investing and negative effect on investment among those with higher likelihood of under-investing.DOI: 10.15408/etk.v16i1.4600
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Selmha Bella Arvhiari, Dirvi Surya Abbas, and Mohamad Zulman Hakim. "Pengaruh Financial Reporting Quality,Internet Financial Reporting (IFR) dan Transparency Terhadap Information Asymmetry." SANTRI : Jurnal Ekonomi dan Keuangan Islam 1, no. 6 (2023): 63–73. http://dx.doi.org/10.61132/santri.v1i6.102.
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This study aims to examine the effect of Financial Reporting Quality, Internet Financial Reporting and Transparency variables on Information Asymmetry. This research is a quantitative study that uses secondary data. The population in this study are infrastructure, utilities and transportation companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2021 period, totaling 56 companies. The results of this study indicate that Financial Reporting Quality has no effect on Information Asymmetry, Internet Financial Reporting has no effect on Information Asymmetry, Transparency has a negative effect on Information Asymmetry.
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Baaba Amanamah, Richmell. "Corporate Governance, Financial Leverage, External Audit Quality, and Financial Reporting Quality in Ghanaian Companies." Financial Markets, Institutions and Risks 8, no. 1 (2024): 43–62. http://dx.doi.org/10.61093/fmir.8(1).43-62.2024.
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Good corporate governance influences the capital structure adopted by a firm. Higher financial leverage increases a firm’s risk. This might result in a window-dressing of financial statements to maintain the value of the firm. The study examined the interaction between corporate governance, financial leverage, external audit quality, and their combined influence on the quality of financial reporting inside enterprises in Ghana. The extensive inquiry was conducted using a dataset consisting of 650 observations and encompassing the timeframe from 2009 to 2021 using SPSS Process version 4.2. The findings of this study revealed a significant inverse correlation between the size of the board and the level of compliance with International Financial Reporting Standards with a correlation coefficient of -0.056. With a correlation coefficient of 0.003, the analysis revealed that there is no linear association between Board Gender Diversity (BGD) and International Financial Reporting Standards. With regards to Independent Audit Committee with a correlation coefficient of around 0.068, the findings of the study indicated a statistically significant positive relationship between the presence of an Independent Audit Committee and the level of compliance with International Financial Reporting Standards. The study showed a negative correlation of -0.024 between Financial Leverage and International Financial Reporting Standards Compliance. The observed data suggests a notable and favourable correlation between Audit Fee and International Financial Reporting Standards Compliance with a significant positive correlation of around 0.157. The model employed in the study exhibited multiple R (R) of about 0.191, indicating a modest positive association between the predictor variables and International Financial Reporting Standards Compliance. The coefficient of determination (R Square) was 0.037, indicating that 3.7% of the variation in International Financial Reporting Standards Compliance can be attributed to the predictor variables in the model used for the study. Furthermore, the study revealed an unstandardized coefficient of -0.003 and a standardized coefficient of -0.078 for Board Size, 0.023 and 0.016 for Board Gender Diversity, 0.028 and 0.109 for the Independent Audit Committee, -2.152E-05 and -0.031 for Financial Leverage and 2.809E-08 and 0.156 for Audit Fee. The study again revealed a significant indirect effect through Financial Leverage (FL) on Board Size and International Financial Reporting Standards Compliance with bootstrapped results of 0.0001. On the contrary, the study revealed that Financial Leverage does not mediate Board Gender Diversity and International Financial Reporting Standards Compliance, Independent Audit Committee, and International Financial Reporting Standards Compliance with, an indirect effect of -0.0021 and -0.0009 respectively. With mediation through Audit Fee, the study showed significant indirect effects for all three independent variables. Board Size at 0.0000, Board Gender Diversity at -0.0016, and Independent Audit Committee at -0.0027. The findings from the direct effects study indicate that Board Size and Audit Fee have a notable influence on IFRS Compliance, hence affecting the quality of financial reporting. However, no concrete evidence was found to establish a link between Board Gender Diversity and Independent Audit Committee and IFRS Compliance. For the mediation effects, it was discovered that Financial Leverage played a role as a mediator in elucidating the connection between Board Size and IFRS Compliance. Furthermore, the Audit Fee variable served as an intermediary in clarifying the associations between Board Size, Board Gender Diversity, Independent Audit Committee, and IFRS Compliance. It is recommended for companies to give utmost importance to the principles of openness, accountability, and consistent monitoring of financial leverage. Moreover, the study recommends the allocation of resources towards high-caliber external audits as it plays a pivotal role in bolstering the precision and dependability of financial reporting.
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Sudarlan, Sudarlan, Surahman, Nurita Affan, Putri Maghfirah Vidhiyanty, and Lutfilatul Hasanah. "Enhancing financial reporting quality in village-owned enterprises: The role of organizational competencies." Public and Municipal Finance 13, no. 2 (2024): 83–97. http://dx.doi.org/10.21511/pmf.13(2).2024.08.
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The quality of financial reporting in village-owned enterprises (VOEs) is critical for ensuring transparency and accountability in local governance. This study explores the impact of education level, training programs, work experience, internal control systems, and information technology on the quality of financial reports in VOEs. The objective is to determine how these factors influence financial reporting quality to support effective local governance. The paper involves a sample of 120 VOE managers and employs quantitative analysis to examine the relationships between these factors and the quality of financial reporting in Indonesia. The results indicate that higher education levels, comprehensive training programs, and extensive work experience positively affect the quality of financial reporting. Specifically, the study finds that educated personnel and well-structured training programs enhance the accuracy and reliability of financial reporting. In contrast, the anticipated positive impact of IT utilization on financial reporting quality was not observed, suggesting that issues related to IT infrastructure and integration may limit its effectiveness. Additionally, robust internal control systems significantly improve the quality of financial reports. Overall, the analysis emphasizes the importance of investing in education, training, and internal controls to enhance financial reporting quality in VOEs. The findings highlight the need for further research into the challenges of IT integration to fully harness its benefits for financial transparency.
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Churet, Cécile, and Robert G. Eccles. "Integrated Reporting, Quality of Management, and Financial Performance." Journal of Applied Corporate Finance 26, no. 1 (2014): 56–64. http://dx.doi.org/10.1111/jacf.12054.
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Interest in integrated reporting continues to grow as its proponents cite a number of significant benefits to both companies and investors. But given the still‐early stages of development of this new management practice and the relative paucity of data, establishing empirical confirmation of these claims is difficult. Using RobecomSAM's proprietary database of over 2,000 companies surveyed during its annual Corporate Sustainability Assessment (CSA), the authors discuss the extent and recent growth of integrated reporting, and its likely effects on important indicators of both ESG quality of management and financial performance.The authors begin by reporting that although only 12% of the companies in the survey dataset practiced some form of integrated reporting in 2012, that number represented a 50% increase from 2011. The authors also report a strong relationship between integrated reporting and ESG quality of management, which some studies suggest has become a useful indicator of the overall effectiveness of management in creating value over the long term. This relationship is particularly strong in certain sectors, notably healthcare. At the same time, the authors find a relationship between integrated reporting and financial performance for two sectors—healthcare and information technology—though not for the population as a whole. The authors suggest that this apparent lack of effect may be attributable to a time lag between integrated reporting's contribution to better ESG quality of management, and the eventual reflection of such management in financial performance.
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Dibua, Ekene C., Joy N. Ikilidih, and Szhamaki Mohammed. "Impact of International Financial Reporting Standard (IFRS) Adoption on Accounting Quality and Financial Reporting." Journal of Global Interdependence and Economic Sustainability 3, no. 6 (2024): 1–12. https://doi.org/10.5281/zenodo.11575347.
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<em>The adoption of International Financial Reporting Standards (IFRS) has been a significant development in the global financial reporting landscape, with the aim of enhancing the comparability, transparency, and quality of financial information. This study provided a comprehensive review of the existing literature on the impact of IFRS adoption on accounting quality and financial reporting. The study included 500 public listed firms from 6 different African countries. After satisfying the respective pre and post estimation tests, the researcher conducted descriptive analysis, correlation analysis and regression analysis using the Difference-in-Difference regression model. The findings of the study concluded that IFRS adoption has a significant impact on Accounting Quality and Financial Reporting quality of selected public listed firms. Also, country-level factors (Legal System) were a significant determinant for the adoption of IFRS. It was thus recommended that Policymakers and regulators should continue to support and promote the adoption of IFRS, companies should ensure effective implementation of IFRS, including appropriate training of accounting personnel and the establishment of robust internal controls, and investors and other financial statement users should utilize IFRS-based financial information with increased confidence, as it provides more reliable and comparable data for decision-making.</em>
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Zhong, Yu. "Audit Quality and Financial Reporting Quality: Evidence from China." Advances in Economics and Management Research 12, no. 1 (2024): 557. https://doi.org/10.56028/aemr.12.1.557.2024.
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The implementation of effective auditing procedures facilitates the production of superior financial reports. This study examines the impact of high-quality audits on the quality of financial reports, employing data from public sources and Chinese company databases during the period from 2000 to 2022. The implementation of effective auditing procedures facilitates the production of superior financial reports, particularly when such information is utilized in the business decision-making. The quality of audits is a significant determinant of the reliability of financial reporting. When auditors and clients have differing perspectives, it can have adverse implications for the financial stability of the company. Audit quality is particularly salient for smaller firms. The findings of this study indicate that the integration of robust internal controls and comprehensive audits can enhance the quality of financial reporting. This study elucidates the impact of audits on the broader economic landscape and underscores the vital role of auditing in ensuring the integrity of financial reporting. The insights derived from this study can inform the practices of accounting firms and regulatory bodies. However, further research is recommended to gain a more nuanced understanding.
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Nurquran, Pramesari Dinar, and Ardianto Ardianto. "The Way Financial Distress Affects Financial Reporting Delay." Jurnal Manajemen Teori dan Terapan| Journal of Theory and Applied Management 16, no. 1 (2023): 81–94. http://dx.doi.org/10.20473/jmtt.v16i1.41174.
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Objective: Previous studies identified a significant effect of financial distress experienced by a company on the delay in submitting its audited financial report. However, no analysis to identify whether the effect is direct or indirect by decomposing the total effect calculated. This study conducted further analysis aiming to reveal the mechanism of the way financial distress affects financial reporting delay, whether the effect is entirely direct or there is a portion of indirect effect, by decomposing the total effect using the quality of financial report as a mediating factor. Design/Methods/Approach: Public companies listed at Indonesian Stock Exchange (IDXI), whichever delay in submitting audited financial reports were targeted population, the purposive sampling method was implemented to collect financial reports within the 2014-2020 period. Logistic regression, linear regression, and a technique to decompose the effect into four components under the mediation model are analysis methods. In addition, the quality of the financial report measured by the Beneish Score was used as a mediator variable. Findings: This study found that the more severe the financial distress experienced by a company, the more likely it will delay submitting its audited financial report. Although there is an indication that financial distress affects the quality of the financial report, however no significant evidence that the quality of the financial report mediates some of the effects of financial distress on financial reporting delay. In other words, the effect of financial distress is direct. Originality/Value: This study delivered new insight by including financial reporting quality as a potential mediating variable in the relationship between financial distress and financial reporting delay. The existence of mediating variable allowed us to decompose the total effect of financial distress on the financial reporting delay and identify whether financial distress's effect on financial reporting delay is direct or indirect. The identification of direct and indirect effects will reveal the mechanism of how financial distress effects affect financial reporting delay. The researchers expected to add new insight, where the use of financial reporting quality as a mediating variable was expected to reveal the mechanism of the relationship between financial distress and financial reporting delay. This study evaluates the relationship between financial distress experienced by companies, financial reporting quality, and financial reporting delay. Practical/Policy implication: The findings of this study suggest that investors have to be more careful in investment decision-making on public companies that delay submitting their audited financial reports, and regulators have to strengthen protection for investors.
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Thuan, Pham Quoc. "Financial reporting quality in enterprises in Vietnam." Science & Technology Development Journal - Economics - Law and Management 3, no. 2 (2019): 143–52. http://dx.doi.org/10.32508/stdjelm.v3i2.551.
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Financial reporting quality is one the most interesting topic, drawing many researchers and scientists' attentions in the field of a ccounting. Previous studies have shown that the measurement of financial reporting quality is developed in two main d irections: direct measurement (by operationalizing the qualitative characteristics) and indirect measurement (examines the level of earnings management; the specific elements in the annual report in depth,… as a proxy for financial reporting quality). This research aims to build, complete the measurement scale and assess the quality of financial reporting based on qualitative characteristics defined by FASB & IASB 2010. Qualitative research is used to build and complete the measurement scale of financial reporting through case studies using in-depth interviews and focus groups with respondents being specialists and experts in accounting field ( including. university lecturers, chief accountants, heads of internal control, Information technology managers and chief financial officers in enterprises in Vietnam). Quantitative research is used for measuring the financial reporting quality through survey on enterprises in Vietnam. The findings show that financial reporting quality is considered acceptable with average point being 3.7102/5. Among 3 qualitative characteristics of financial reporting quality, the enhancing characteristics are highly evaluated (4.2065/5) while the fundamental characteristics (relevance and faithful presentation) are considered as moderate (3.7032/5 and 3.5590/5).
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Kabwe, Martin. "Corporate governance attributes and financial reporting quality." International Journal of Research in Business and Social Science (2147- 4478) 12, no. 1 (2023): 179–91. http://dx.doi.org/10.20525/ijrbs.v12i1.2287.
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The study's objective was to analyse the relationship between corporate governance attributes and financial reporting quality from a developing country perspective. Data was collected through quantitative content analysis of annual reports and audited financial statements (2012 to 2018) of Zambian-listed companies. This was a longitudinal study that involved panel data analysis. Therefore, a Hausman test was conducted to select the model to use. Panel regression analysis was used as a data analysis technique. Results show a statistically significant positive relationship between board size and financial reporting quality. A positive but statistically insignificant relationship existed between board accounting expertise, board gender diversity, audit committee independence and financial reporting quality. A negative but insignificant relationship existed between board independence and financial reporting quality. The corporate governance system alone cannot guarantee quality financial information by reporting entities. This could be related to the lack of an effective corporate governance system. Therefore, authorities must consider strengthening the regulatory enforcement mechanisms to ensure that companies achieve high financial reporting quality.
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Kim, Tae-Nyun, and Yutong Xie. "Disclosure of off-balance sheet financing and financial reporting quality." Journal of Accounting and Public Policy 50 (March 2025): 107285. https://doi.org/10.1016/j.jaccpubpol.2025.107285.
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Renkas, Jurij, Olena Goncharenko, and Olena Lukianets. "Quality of financial reporting: approaches to measuring." International Journal of Accounting and Economics Studies 4, no. 1 (2015): 1. http://dx.doi.org/10.14419/ijaes.v4i1.5509.
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<p>Financial reporting must meet many criteria to be considered high quality because it is the quality of information that determines the viability of future strategic decisions. The article investigates the essence of the concept of "quality" and "quality of financial infor-mation", and defines indicators and criteria of the financial reporting quality. As for the quality of the financial reporting, it is found that the latter is a structured reflection of financial condition and financial results of the entity, therefore, can be regarded as a set of components: quality of the financial information; quality of presentation of the financial information. It was found that the quality of the reporting of financial information is evaluated using a system of indicators that are qualified by the Financial reporting framework as the qualitative characteristics of useful financial information and National Accounting Statement (standard) 1 as the qualitative characteristics of financial reporting. In terms of formalization (presentation within the legislation forms) of the financial information presentation in Ukraine, we can speak of quality only in respect of the notes to the financial statements. It has been established that quality assessment indicators of presenting the financial information in the notes may be: readability of the information, visualization of the representation. Research of the quality requirements for the financial statements (information) of the participating countries of the former Soviet Union has identified many variations, but the most commonly used features are relevance, reliability, comparability and understandability. It is indicated that most post-Soviet countries, including Ukraine, gradually bring its legislation on the regulation of financial statements in conformity with IFRS. But there are still many unresolved differences, chief among which are the qualitative characteristics of the financial statements that should provide the information needs of different user groups.</p>
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Kabwe, Martin. "Effect of International Financial Reporting Standards Compliance on Financial Reporting Quality: Evidence from a Developing Country." International Journal of Finance and Accounting 8, no. 1 (2023): 36–57. http://dx.doi.org/10.47604/ijfa.1802.
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Purpose: Despite global adoption of International Financial Reporting Standards to improve financial reporting quality, there is still inconclusive and limited empirical evidence of improving financial reporting quality especially from developing countries. Therefore, the study analysed the relationship between International Financial Reporting Standards compliance and Financial Reporting Quality from an African country perspective.
 Methodology: Financial Reporting Quality was measured using measurement tool developed by the Nijmegen Center for Economics and International Financial Reporting Standards compliance was measured using dichotomous and partial compliance methods. Study period was 2012 to 2018 involving 20 Zambian listed companies. Study involved panel data analysis and hence, Hausman test was conducted to select the model. Multiple linear regression was used as a data analysis method.
 Findings: The results indicated a statistically insignificant relationship between International Financial Reporting Standards compliance and Financial Reporting Quality. Therefore, the implication of the study is that the adoption of International Financial Reporting Standards does not influence financial reporting quality among Zambian listed companies. The low compliance with International Financial Reporting Standards among the listed may have contributed.
 Unique Contribution to Theory, Practice and Policy: This is first study in Zambia looking at the influence of IFRS Compliance on Financial Reporting Quality and therefore, contributes to the extant empirical studies analysing whether IFRS compliance influences the financial reporting quality given the mixed results across.
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Arthur, Neal, Huifa Chen, and Qingliang Tang. "Corporate ownership concentration and financial reporting quality." Journal of Financial Reporting and Accounting 17, no. 1 (2019): 104–32. http://dx.doi.org/10.1108/jfra-07-2017-0051.
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Purpose The purpose of this study is to investigate whether a country’s ownership concentration affects the financial reporting quality in a cross-country setting. Design/methodology/approach This paper uses six accounting and auditing indicators to construct a comprehensive index to measure the country-level financial reporting quality. Findings The authors find a non-linear nature of the relationship between the national financial reporting quality and national ownership structure. Specifically, the relation is negative in a relatively spread ownership structure with no controlling shareholders, implying the entrenchment effects dominate. When ownership is highly concentrated, particularly with controlling shareholders whose interest is aligned with that of the firm, the relation turns to positive and alignment effects dominate. Originality/value The study is an important extension of prior research examining the financial reporting quality effect of ownership concentration. It enhances the understanding of the role of ownership concentration in determining a country’s financial reporting quality and has potential important policy implications for countries’ reformers and regulators who are concerned with the transparency of financial reporting and the quality of corporate governance.
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Subhani, Waseem, Ali Amin, Muhammad Azeem Naz, Muhammad Umair Nazir, and Nasir Sultan. "Board Gender Diversity and Financial Reporting Quality." Journal of Policy Research 10, no. 2 (2024): 607–17. http://dx.doi.org/10.61506/02.00275.
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We analyze the impact of board gender diversity on financial reporting quality using Kanter’s framework of group composition. Specifically, we classify boards into skewed, tilted, and balanced categories, and examine how each type influences reporting quality. Using ordinary least squares regression for hypothesis testing and, for robustness, apply critical mass theory and the generalized method of moments estimation. Our findings indicate that gender diversity is positively associated with financial reporting quality. Notably, highest influence is observed in balanced boards with more than 35% female directors. Furthermore, female directors’ presence in audit committee increases financial reporting quality. Overall, our results support Kanter’s framework and critical mass theory, underscoring their significant positive influence.
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Abu Hamour, Aiman Mahmoud, Mousa Mohammad Abdullah Saleh, Khawla Kassed Abdo, Alq’aqa’a Khalaf Ali Alzu’bi, Esra Ali Alnsour, and Abdullah Mahmoud Yousef Jwaifel. "The effect of financial reporting quality on earnings quality of industrial companies." Corporate and Business Strategy Review 5, no. 2 (2024): 38–50. http://dx.doi.org/10.22495/cbsrv5i2art4.
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This study investigates the relationship between financial reporting quality and earnings quality in Jordanian industrial companies. This paper used a survey-based approach, utilizing questionnaires to collect data from selected participants representing Jordanian industrial companies using SmartPLS 4. The study confirms a positive relationship between financial reporting and earnings quality in Jordanian industrial companies. Preparing accurate financial reports allows visualization of the company’s financial position and performance in accordance with accounting standards and disclosure practices. The findings offer valuable guidance to regulators, investors, and stakeholders in understanding the significance of financial reporting quality and its implications for evaluating financial performance and decision-making processes. In addition to promotes financial transparency and informed decision making in the Jordanian industrial sector. This study enhances understanding of the importance of financial reporting quality for ensuring reliable and accurate earnings information. The study’s PLS-SEM methodology also contributes to the methodological literature in this area.
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Tiurmaida, Januarti, Etty Murwaningsari, Binsar Simanjuntak, and Sekar Mayangsari. "Determinant of Indonesia Government Financial Reporting Quality." Journal of Business and Management Review 2, no. 9 (2021): 595–604. http://dx.doi.org/10.47153/jbmr29.2192021.
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This study aims to examine the factors that determine the quality of financial statements in the central government in Indonesia at Ministries/Agencies, namely audit findings and follow-up of audit recommendations. This study uses quantitative methods with secondary data from 74 of 88 Ministries/Agencies in the Central Government in Indonesia. The sampling method is purposive sampling with financial statements starting from 2015-2019 which are processed using the STATA. This study shows that audit findings and follow-up of audit recommendations affect the quality of financial reporting. The more audit findings can have a negative impact on the quality of financial reports and the more follow-up on audit results recommendations can have a positive impact on the quality of financial reporting. This study only analyzes audit findings and follow-up of audit recommendations without any other variables that can support the quality of financial statements and can lead to accuracy in this study. Research is important for the central government in maximizing efforts to maintain the quality of financial reports in the context of accountability to stakeholders, especially to the community through the House of Representatives. This study provides new insights into the factors that determine the quality of central government financial reports in Indonesia.
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Chu, Ling, Jie Dai, and Ping Zhang. "Auditor Tenure and Quality of Financial Reporting." Journal of Accounting, Auditing & Finance 33, no. 4 (2016): 528–54. http://dx.doi.org/10.1177/0148558x16665701.
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Prior studies in general suggest a positive association between auditor tenure (the length of an auditor–firm relationship) and reporting quality (the informational content of reported earnings). In this study, we present evidence that the association is reversed when clients represent increased litigation risks to their auditors. Featuring downward biases in reported earnings as a measure of reporting quality that stem from auditors’ minimization of costs from potential audit errors, we argue that the magnitude of such downward bias decreases in auditors’ experiences with their clients (tenure improves reporting quality). Furthermore, we predict that longer auditor tenure is associated with larger downward bias for firms with increased audit risks (tenure impairs reporting quality). Using non-operating accruals as proxy for downward bias in reported earnings, we find robust empirical evidence in support of our prediction.
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Litt, Barri, Divesh S. Sharma, Thuy Simpson, and Paul N. Tanyi. "Audit Partner Rotation and Financial Reporting Quality." AUDITING: A Journal of Practice & Theory 33, no. 3 (2014): 59–86. http://dx.doi.org/10.2308/ajpt-50753.
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SUMMARY: Audit partner rotation has received considerable attention globally and in the U.S. since the Sarbanes-Oxley Act of 2002 accelerated the rotation period from seven to five years and expanded the cooling-off period from two to five years. However, research on the effects of audit partner rotation on financial reporting quality in the U.S. is virtually non-existent, largely due to the absence of publicly available information on audit partners. Using a novel approach to determine audit partner rotation, we investigate the effect of rotation on financial reporting quality in the U.S. We find evidence of lower financial reporting quality following an audit partner change. Specifically, we find lower financial reporting quality during the first two years with a new audit partner relative to the final two years with the outgoing partner. We find the lower financial reporting quality to be more prevalent for larger clients. Further analyses suggest the initial year post-rotation presents audit challenges for Big 4 partners, which persist for at least three years for non-Big 4 partners. Audit challenges also appear greater for city-level non-industry specialist auditors and smaller audit offices. We discuss the implications of our results for regulators, policymakers, and the profession at large.
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Diaz, Jamie, Gregory W. Martin, and Wayne B. Thomas. "Financial Reporting Quality and Auditor Locality Contagion." AUDITING: A Journal of Practice & Theory 36, no. 4 (2017): 71–87. http://dx.doi.org/10.2308/ajpt-51694.
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SUMMARY Research in information economics seeks to understand how the actions of one individual affect the decisions of related individuals. We examine this issue in the context of information contagion between audit offices in the same locality. Specifically, we investigate whether contagion among Big N audit offices in the same metropolitan statistical area (MSA) causes their client firms' financial reporting quality to correlate. We document a relation between overstatement of earnings for one firm (as evidenced by a subsequent restatement) and higher abnormal accruals for another firm in that same year, where both firms' auditors are located in the same MSA. The correlation in reporting quality is consistent with contagion in practices between auditors. We also find evidence that auditor competition is one channel through which information contagion occurs. The between-audit office contagion we document is incremental to within-audit office contagion documented by prior research. Our evidence is important in understanding additional factors related to the quality of auditing and financial reporting and thus should be relevant to audit committees, regulators attempting to improve audit quality, and stakeholders in general.