Purpose This study systematically reviewed the relationship between governance mechanisms, institutional quality and financial reporting quality (FRQ) of financial institutions in Nigeria, South Africa and India. This study evaluated the effect of institutional differences on the effectiveness of corporate governance in enhancing the quality of reporting. Methodology/Approach A Systematic Literature Review (SLR) was used, with the framework of PRISMA 2020. The main database used was Scopus, and Google Scholar was used as a secondary source. From an initial 82 records, 34 peer-reviewed studies (2021–2026) met the inclusion criteria. Findings Results showed that governance components (board independence, audit committee effectiveness and CEO duality) enhanced FRQ in the three countries. But the quality of these relationships differs greatly from institution to institution. The effects of governance–FRQ were most pronounced and consistent in South Africa because of higher levels of regulatory enforcement and institutional quality. India had moderate and mixed relationships as dual institutional logics affected the results; Nigeria had weaker and inconsistent relationships as institutional fragility affected the results. The institutional quality was identified as a significant and important moderate variable in the quality of governance. Originality/Value This research fills a gap in the FRQ literature regarding the integration of governance mechanisms and institutional quality into a single systematic review framework, and presents comparative evidence from three key emerging economies, a topic few studies have explored in the field of financial institutions. Practical Implications The results indicate that governance reform efforts need to be complemented by institutional strengthening. To improve the outcomes of FRQ, policymakers should pay special attention to improving the capacity for enforcement, ensuring consistency in the regulatory process, and building institutional credibility.
Dagunduro et al. (Tue,) studied this question.