The Impact of Financial Reporting Quality on Corporate Governance Practices: A Global Perspective

Abstract

The standard of financial reporting is an important factor that plays a significant part in the formation of corporate governance procedures in a variety of marketplaces. the link between the quality of financial reporting and the efficacy of corporate governance systems from a global perspective. The purpose of this article is to investigate the ways in which accurate, transparent, and timely financial reports have an impact on the decision-making processes of boards of directors, auditors, and stakeholders. This is accomplished by analysing data from publicly traded companies distributed throughout several locations. analyses the consequences of financial reporting quality on governance structures, shareholder rights, and overall corporate performance. uses a comparative examination of organisations operating under different regulatory frameworks and investigates the ramifications of these frameworks. what effects do differences in reporting standards, such as IFRS and GAAP, have on the accountability and transparency of corporations? The findings indicate that thorough financial reporting has a positive correlation with improved corporate governance procedures, which in turn fosters higher investor trust and long-term sustainability. through the provision of policy suggestions for the enhancement of financial reporting standards in order to establish stronger corporate governance on a worldwide scale.