Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2023.2223264
The impact of public governance perception on the quality of financial reporting
Ahmed Yamen
Gökberk Can
Sažetak
The article examines the relationship between public governance
perception (PG) and the overall quality of the financial reporting
index (OQFRI). The study combines the World Bank’s Worldwide
Governance Indicators (WGIs), which are used as a measure for
country-level governance. In addition, the study of Tang et al. for
the overall financial reporting index (OQFRI) is used to measure
the quality of financial reporting. Our balanced panel data set has
418 observations, constructed with 38 countries and the period
from 2004 to 2014 is tested using a linear mixed model (LMM) to
consider both random and fixed effects. The results indicate a
positive relationship between regulatory quality, political stability,
the rule of law, government effectiveness and quality of financial
reporting. But, findings reveal that voice and accountability and
control of corruption have no significant impact on the quality of
financial reporting. Our results suggest that institutional quality
and public governance perception should be considered by auditors
while evaluating the quality of financial reports and their risk.
Also, it is important to consider the role of public governance in
addition to the role of corporate Governance in improving the
quality of financial reporting.
Ključne riječi
institutional quality; public governance perception; quality of financial reporting
Hrčak ID:
314898
URI
Datum izdavanja:
25.6.2023.
Posjeta: 93 *