The Effect of Corporate Governance Mechanisms on the Quality of Financial Statements and Its Reflection on the Type of Auditor's Opinion
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Published:2023-02-24
Issue:60, 1
Volume:18
Page:59-79
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ISSN:1813-1719
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Container-title:Tikrit Journal of Administrative and Economic Sciences
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language:
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Short-container-title:Tikrit J. Admin. Econ. Sci.
Abstract
Corporate governance has become an important topic after the financial crises that occurred in many companies and led to their collapse in the nineties of the twentieth century, and technological developments affected accounting and the appropriateness of financial reports. Many corporations used corporate governance concepts to acquire the trust of investors who value transparency and information sharing. The goal of this research is to look at the impact of corporate governance structures on financial reports quality and how it relates to the type of external auditor. The findings of the study show that institutional shareholder ownership has a positive and significant link with financial report quality, and that the auditor's view diminishes the relationship between institutional shareholder ownership and financial report quality. The study concluded that managers' ownership has a positive and important relationship with the quality of financial reports, and the auditor's statement has no effect on the relationship between managers' ownership and the quality of financial reports. The structure of the board of directors has a positive and important relationship with the quality of financial reports, and the auditor's statement has no effect on the relationship between the structure of the board and the quality of financial reports. Finally, the size of the council has a positive and important relationship. The auditor's comments reduce the relationship between board size and the quality of financial reporting.
Publisher
Tikrit University
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