Exploring the Governance-Disclosure Nexus: The Influence of Board, Audit Committee, and Auditor on Financial Reporting Quality
Keywords:
Governance, Financial Reporting Quality, Board of DirectorsAbstract
This study, Exploring the Governance-Disclosure Nexus: The Influence of Board, Audit Committee, and Auditor on Financial Reporting Quality, investigates how governance factors, specifically the characteristics of the board of directors, audit committee, and external auditors, influence the quality of financial disclosures. Financial reporting quality is crucial for stakeholders' decision-making, and governance mechanisms play a pivotal role in ensuring the transparency and reliability of financial statements. The research examines the interplay between these governance factors and the accuracy, completeness, and timeliness of financial disclosures. Using a sample of publicly listed companies, the study employs both quantitative and qualitative methods, including regression analysis to identify correlations between governance characteristics and financial reporting outcomes, as well as interviews with key financial officers and auditors to provide contextual insights. The results reveal that a well-established, independent board, an active audit committee, and the presence of high-quality external auditors significantly enhance the quality of financial reporting. The study also highlights the moderating effect of corporate culture and regulatory environments on the governance-disclosure relationship. These findings provide valuable insights for policymakers, regulators, and corporate governance practitioners seeking to improve financial reporting standards and accountability in the corporate sector.
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