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Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS

Author

Listed:
  • Bayar Gardi

    (Department of Accounting and Finance, Cyprus International University, Northern Cyprus, Mersin 10, Lefkosa 99040, Turkey)

  • Mehmet Aga

    (Department of Accounting and Finance, Cyprus International University, Northern Cyprus, Mersin 10, Lefkosa 99040, Turkey)

  • Nabaz Nawzad Abdullah

    (Department of Business Administration, College of Administration and Economics, Lebanese French University, Erbil 44001, Kurdistan Region, Iraq)

Abstract

This study investigates how corporate governance affects the financial reporting quality of selected banks in Iraq, focusing on the role of IFRS adoption. The research collected data from 298 questionnaires distributed among diverse private banks, including IS Bank, Vakif Bank, RT Bank, Cihan Bank, Bank of Iraq, and TD Bank. Sobel analysis was used to analyze the mediation between variables. The results demonstrate that IFRS adoption plays a positive mediating role in the relationship between corporate governance and financial reporting quality in private banks. The study highlights the practical benefits of implementing strong corporate governance practices and adopting IFRS, such as improved reporting quality, regulatory compliance, better decision-making, and enhanced reputation. Private banks in Iraq can utilize these findings to enhance their financial performance and reputation by shaping their accounting and governance policies. The research paper provides original insights into the positive impact of corporate governance on financial reporting quality while considering the mediating influence of IFRS adoption, making it a valuable contribution to the research community.

Suggested Citation

  • Bayar Gardi & Mehmet Aga & Nabaz Nawzad Abdullah, 2023. "Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS," Sustainability, MDPI, vol. 15(13), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:9869-:d:1175892
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    2. Ruhul Quddus Majumder, 2025. "The Role of Cost Accounting Data in Enhancing Manufacturing Efficiency," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 1121-1133, July.
    3. Abdelnaser M. Mohamed Amer & Asil Azimli & Muri Wole Adedokun, 2025. "Earnings Management and IFRS Adoption Influence on Corporate Sustainability Performance: The Moderating Roles of Institutional Ownership and Board Independence," Sustainability, MDPI, vol. 17(17), pages 1-27, September.

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