The Effect of Financial Reporting Quality on Firm Financial Performance: The Moderating Role of Ownership Structure

The purpose of the study is to analyze the effect of financial reporting quality on firm financial performance and the moderating role of ownership structure between financial reporting quality and firm financial performance. This study conducted the analysis of 20 cement firms listed on Pakistan stock exchange from the period 2011 to 2016. Furthermore, this study utilizes the OLS regression model to estimate the dependent and independent variable. The study used statistics-based models to examine the independent variables. The result indicates that there is a positive relation between financial reporting quality and firm financial performance. It is confirmed that an increase in the quality of financial reporting can affect positively the firm financial performance. Also, the institutional have a positive impact on firm financial performance and financial reporting quality. On the other hand, the Result shows that there is a negative effect on the moderating role of the managerial ownership on the relationship between the firm financial reporting quality and firm performance quality. Investors judge the company positively which dedicated to the correct information about firm financial reporting and show a high quality to their investors. Hence all hypothesis of the study was accepted.