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Users’ Perception of Financial Reporting Quality in Ghana

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  • Joseph Mbawuni

Abstract

This paper assesses the extent to which top and middle management perceive FRQ of companies in Ghana after the adoption of International Financial Reporting Standards (IFRS). Drawing from the literature, a five-dimension FRQ questionnaire was developed for the study. It was a cross-sectional survey that involved a sample of 500 respondents from top and middle level management across seven industries in Ghana. The findings indicate that, generally top and middle management perceive the qualitative characteristics of FRQ of the Ghanaian companies to be very good. However, Timeliness of FRQ in terms of publishing audited financial reports was the only poorly rated qualitative characteristic. Implications to accounting theory and practitioners are discussed. Moreover, there were differences in respondents’ perception of FRQ according to their work background characteristics. It was found that top and middle management who were professional accountants were more critical in their assessment and therefore rated their perceived FRQ significantly lower than those who were non-accounting professionals. This study contributes to filling the void in FRQ literature regarding accounting information users’ assessment of FRQ in IFRS-compliant countries in Sub-Saharan Africa.

Suggested Citation

  • Joseph Mbawuni, 2019. "Users’ Perception of Financial Reporting Quality in Ghana," Accounting and Finance Research, Sciedu Press, vol. 8(3), pages 187-187, August.
    • Handle: RePEc:jfr:afr111:v:8:y:2019:i:3:p:187
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    References listed on IDEAS

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    1. Akintola Owolabi & Francis O. Iyoha, 2012. "Adopting International Financial Reporting Standards (IFRS) in Africa: benefits, prospects and challenges," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 1(1), pages 77-86.
    2. DeFond, Mark & Hu, Xuesong & Hung, Mingyi & Li, Siqi, 2011. "The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability," Journal of Accounting and Economics, Elsevier, vol. 51(3), pages 240-258, April.
    3. Ben K. Agyei-Mensah, 2012. "Association between firm-specific characteristics and levels of disclosure of financial information of rural banks in the Ashanti region of Ghana," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(1), pages 1-3.
    4. Anwer S. Ahmed & Scott Duellman, 2011. "Evidence on the role of accounting conservatism in monitoring managers’ investment decisions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 51(3), pages 609-633, September.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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