Observational analysis shows that improved human resource competence boosts financial reporting quality in SOEs, indicating a vital role for human capital.
Key Points
Human resource competence significantly improves the quality of accounting information systems, enhancing financial reporting.
LISREL software applied to Structural Equation Modeling revealed strong relations between human resource competence and financial reporting quality.
The study highlights the dual effect of human resource competence on financial reports—both directly and indirectly through accounting systems.
These findings underscore the importance of competent human capital for transparent and timely financial reporting in State-Owned Enterprises.