The impact of financial reporting quality on debt maturity: the case of private firms

The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.

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An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

Gadjah Mada International Journal of Business ◽

10.22146/gamaijb.5484 ◽

2011 ◽

Vol 13 (3) ◽

pp. 287 ◽

Cited By ~ 5

Author(s):

Nurul Nazlia Jamil ◽

Sherliza Puat Nelson

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Audit Committee ◽

Reporting Quality ◽

Audit Committees ◽

Financial Reporting Quality ◽

Financial Expertise ◽

Monitoring Mechanism ◽

The Impact

Financial reporting quality has been under scrutiny especially after the collapse of major companies. The main objective of this study is to investigate the audit committee’s effectiveness on the financial reporting quality among the Malaysian GLCs following the transformation program. In particular, the study examined the impact of audit committee characteristics (independence, size, frequency of meeting and financial expertise) on earnings management in periods prior to and following the transformation program (2003-2009). As of 31 December 2010, there were 33 public-listed companies categorized as Government-Linked Companies (GLC Transformation Policy, 2010) and there were 20 firms that have complete data that resulted in the total number of firm-year observations to 120 for six years (years 2003-2009). Results show that the magnitude of earnings management as proxy of financial reporting quality is influenced by the audit committee independence. Agency theory was applied to explain audit committee, as a monitoring mechanism as well as reducing agency costs via gaining competitive advantage in knowledge, skills, and expertise towards financial reporting quality. The study is important as it provides additional knowledge about the impact of audit committees effectiveness on reducing the earnings management, and assist practitioners, policymakers and regulators such as Malaysian Institute of Accountants, Securities Commission and government to determine ways to enhance audit committees effectiveness and improve the financial reporting of GLCs, as well as improving the quality of the accounting profession.

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The impact of corporate governance on the financial reporting quality in Saudi banks

Global Journal of Economic and Business ◽

10.31559/gjeb2020.8.1.12 ◽

2020 ◽

Vol 8 (1) ◽

pp. 166-179

Author(s):

Ahmed Zakaria Zaki Osemy

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Reporting Quality ◽

Financial Reporting Quality ◽

The Impact

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Firm Structural Characteristics and Financial Reporting Quality of Listed Deposit Money Banks in Nigeria

International Business Research ◽

10.5539/ibr.v9n1p106 ◽

2015 ◽

Vol 9 (1) ◽

pp. 106 ◽

Cited By ~ 1

Author(s):

Olumide A. Olowokure ◽

Muhammad Tanko ◽

Terzungwe Nyor

Keyword(s):

Financial Reporting ◽

Structural Characteristics ◽

Emerging Market ◽

Secondary Data ◽

Reporting Quality ◽

Financial Reporting Quality ◽

Loan Loss ◽

Loan Loss Provisions ◽

The Impact

<p>The quality of financial report is very crucial as published financial reports remains, for the most part, the only means by which outside shareholders and investors keep themselves informed about the performance of the firm. In the present economic scenario, this concern for financial reporting quality becomes more acute as emerging market economies and more importantly mono economies like Nigeria face greater uncertainties as they combat the challenges of unprecedented fall in oil prices. In addition to this, the suspension of the CEO, Chairman and two other directors of Stambic IBTC bank by the Financial Reporting Council of Nigeria for filling a misleading financial statement for 2013 and 2014 has also shown that the issue of financial reporting quality cannot be overemphasized. Using secondary data from the published reports of thirteen listed deposit money banks in Nigeria for over a period of ten years between 2005 and 2014, this paper seeks to find the determinants of financial reporting quality and reports the findings of the impact of structural characteristics like age, size and level of leverage on financial reporting quality. Using prio studies as a guide, we developed a model for loan loss provisions and generated the residuals, using these residuals know as abnormal loan loss provisions as the dependent variable for the multiple regression analysis, the study did not find any evidence of significant relationship between firm age, size, leverage and financial reporting quality.</p>

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Effects of leadership and accounting capacity on accountability through the quality of financial reporting by public organisations in Vietnam

Journal of Asia Business Studies ◽

10.1108/jabs-02-2020-0077 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Yen Thi Tran ◽

Nguyen Phong Nguyen ◽

Trang Cam Hoang

Keyword(s):

Public Sector ◽

Financial Reporting ◽

Reporting Quality ◽

Financial Reporting Quality ◽

Equation Modeling ◽

Content Type ◽

Research Results ◽

Public Organisations ◽

The Impact

Purpose By drawing on the institutional theory and contingency theory, this study aims to examine the effects of leadership and accounting capacity on the quality of financial reporting and accountability of public organisations in Vietnam. Furthermore, this paper is to determine the impact of financial reporting quality on accountability. Design/methodology/approach The research model and hypotheses have been tested by partial least squares structural equation modeling, with 177 survey samples obtained from accountants and managers working in the public sector in Vietnam. Findings The research results indicate that leadership and accounting capacity have a positive effect on financial reporting quality; leadership and accounting capacity positively influence accountability; and the quality of financial reporting has a positive impact on accountability. Research limitations/implications The research results provide empirical evidence of the direct impact of leadership and accounting capacity on financial reporting quality and accountability of public organisations in a developing country. Moreover, the current work also provides important evidence for the impact of financial reporting quality on accountability. Practical implications Public sector organisations must realise that leadership and accounting capacity play a vital role in the accounting reform process. Public institutions likewise need to pay attention to develop accounting capacity and promote leadership. Moreover, the results respond to the continuing call for increased citizen trust in public organisations. Originality/value To the best of the authors’ knowledge, this study is the first to examine the chain from leadership, accounting capacity, financial reporting quality and accountability in the context of public sector organisations in an Asian transition market.

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