Abstract Cost management (CM) continues to shape how manufacturing firms listed on the Ghana Stock Exchange manage resources and improve profitability (PF), yet limited empirical attention has focused on how financial reporting quality (FRQ) transmits this relationship within the Ghanaian context. This study examined the effect of CM on PF and assessed the mediating effect of FRQ. A quantitative, cross-sectional explanatory design was adopted. The population consisted of 600 employees, with a sample of 395 selected through stratified and purposive sampling. Data were collected using structured questionnaires and analyzed using structural equation modeling (SEM) in Smart PLS 4. CM shows a significant and positive influence on PF. FRQ also has a significant and positive influence on PF. CM significantly improves FRQ, while FRQ mediates the relationship between CM and PF, indicating that stronger reporting systems enhance the effect of CM on PF. The study is limited to two listed manufacturing firms, restricting wider generalization. Future studies may extend to additional firms and sectors for broader evidence. The findings suggest that strengthening CM practices and FRQ improves PF in GSE-listed manufacturing firms. The study provides evidence on the mediating effect of FRQ in the CM–PF relationship within the Ghanaian manufacturing setting.
Boadi et al. (Mon,) studied this question.