The effect of ifrs adoption on financial reporting quality; the moderating role of corporate governance
No Thumbnail Available
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
KNUST
Abstract
This study examines how corporate governance moderates international financial reporting requirements on quality. The study investigated data from 15 Ghana Stock Exchange (GSE) industrial businesses over 14 years using an explanatory research approach. The study examined IFRS adoption, corporate governance, and discretionary accruals using a random effect model. This research found that IFRS adoption had a little negative effect on discretionary accruals (DA) at the 10% significance level but not at the 5% significance level. This research showed no significant effect of corporate governance procedures on financial reporting quality in Ghanaian manufacturing enterprises. The study also found no moderating influence of company governance on IFRS adoption and financial reporting quality. IFRS adoption may not immediately improve profit quality, but Ghanaian manufacturing enterprises must improve their awareness of IFRS criteria and consider internal evaluations to comply, according to the report. Companies should also customise governance practises to their requirements and monitor and analyse how IFRS adoption and governance affect financial reporting quality. Future research should encompass broader industry sectors and extend the analysis over a more extended period to capture any evolving dynamics
Description
A thesis submitted to the department of accounting and finance, kwame nkrumah university of science and technology, kumasi in partial fulfilment of the requirements for the award of a master of science degree in accounting and finance