Journal of Management Research
Volume 24, Number 1 (January - June 2024)
ISSN: 0972-5814 Online ISSN: 0974-455X
The Effect of Corporate Governance on Financial Reporting Quality: Evidence from Some Listed Industries in Bangladesh
Sazid Hasan Ruko
| Abstract |
The purpose of this study is to investigate the impact of corporate governance on financial reporting quality. The sample for this study consists of 49 companies selected on the basis of convenient sampling from nine industries. Total Accruals (as proxy of FRQ) is considered as dependent variable; where the independent variables are - Board Size, Board Independence, Audit Committee Size, Audit Committee Independence, and Audit Committee Accounting Expertise. Control variables are Firm Size and Leverage. The multiple regression model with relevant hypotheses are developed and studied at 10% level of significance. The study has found no significant impact of governance factors on reporting quality of the companies, but the control variables, Firm Size and Leverage have significant impact on the FRQ. Large companies generally try to maintain their
reputation from all aspects. Hence, good reporting quality is not an exception. The debt covenants and issuer attention can add extra thought to the companies having debt to maintain good reporting quality. The future researchers of this field can combine both primary approaches through interviewing of accounting officials and traditional secondary approaches to understand the variation of reporting quality to a great extent.
