Factor that Affect Quality of Financial Report in Commercial Banks of Ethiopia

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2021-01

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Abstract

The study aims to examine factor that affect quality of financial report in commercial banks of Ethiopia. The dependant variable Financial Reporting quality regressed against independent variables level of financial leverage, profitability, firm size, board of size, IFRS adoption and ownership structure. The study used explanatory research design the quantitative data were collected through the annual financial report from seventeen Commercial Banks over the period from 2014 to 2019. The study finds that the factor that affect quality financial reporting quality and suggests that Firm Leverage, Firm Profitability, ownership structure and IFRS adoption influence on positive and statistically insignificant relationship with FRQ Commercial Banks financial reporting quality. However, board of size and Firm size had a negative, and statistically insignificant relationship with FRQ. Finally, recommended IFRS adoption their consistence conversion some elements of financial statement for banks need to enhance by maintaining the current level of reporting quality.

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Keywords

Financial Reporting quality, Financial leverage, profitability

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