PulseExploreJournal ClubDebatesTrendingResearchersJournals
Instagram
HomeExploreJournal ClubTrending
Synapse
⌘+K
Synapse
August 20, 20260 citationsOpen Access

Corporate Governance Mechanisms and the Quality of Financial Reporting; Evidence From Emerging Economies

View Full Paper
FSFrederick SaahEDEmmanuel Asiedu DadzieJSJoan Phyliss Somevi

Key Points

  • To examine the effects of corporate governance mechanisms—specifically ownership structure, audit committee characteristics, and board characteristics—on the financial reporting quality of manufacturing firms.
  • Utilized a mixed-methods design incorporating questionnaire surveys and in-depth qualitative interviews.
  • Sampled 150 diverse stakeholder respondents from quoted manufacturing firms regulated by the Ghana Securities and Exchange Commission.
  • Ownership structure showed a statistically significant positive effect on financial reporting quality.
  • Audit committee characteristics exerted a strongly positive and statistically significant influence on the quality of financial reports.
  • Board characteristics exhibited a positive relationship with financial reporting quality that was not statistically significant.

Abstract

This study investigates the effect of corporate governance (CG) mechanisms on the financial reporting quality (FRQ) of manufacturing firms regulated by the Ghana Securities and Exchange Commission (SEC). Utilising a mixed-methods approach, data were collected through questionnaire surveys and in-depth interviews with a diverse group of stakeholders, yielding a sample of 150 respondents from quoted manufacturing firms. Our findings reveal that ownership structure (OS) has a significantly positive impact on FRQ. Similarly, audit committee (AC) characteristics exert a strongly positive influence on the quality of financial reports. In contrast, board characteristics (BC) show a positive but not statistically significant relationship with FRQ. Based on these results, we conclude that robust OS and AC frameworks are the primary drivers enhancing the FRQ of quoted manufacturing firms in Ghana. At the same time, the specific board characteristics examined play a more marginal role. This study contributes to the broader academic discourse on CG mechanisms and FRQ within the relatively unexplored context of a developing economy's capital market. The insights offer actionable implications for regulators, particularly the Ghana SEC, as well as standard-setters and investors dedicated to promoting effective corporate governance and elevating the value relevance of financial reporting.

Ask AI
Helpful
Bookmark
Share
View Full Paper

Cite This Study

Saah et al. (2026) studied this question.

synapsesocial.com/papers/6a86b5eb8a91293e6a1cd837https://doi.org/10.5281/zenodo.21977533
Ask AI
Helpful
Bookmark
Share
View Full Paper