Disclosure of audit engagement partner identity, board gender diversity and financial reporting quality: an emerging country perspective

Purpose The study examined the effect of audit engagement partner’s identity disclosure (EPID) on financial accounting information quality and further explored the complementary effect of EPID and board gender diversity on financial accounting information quality. Design/methodology/approach Data for the study were obtained from the audited annual reports of microfinance companies operating in Ghana for the period 2009–2023. Earnings management indicator represented financial accounting information quality. For result estimation, multiple panel estimation techniques were employed. Findings The results show that earnings management (i.e. the indicator for financial accounting information quality) responds inversely to the disclosure of audit engagement partner’s identity, but this inverse effect gets amplified/pronounced in the presence of increasing board gender diversity. Practical implications Financial accounting information quality in firms in developing economies like Ghana can be ensured if engagement partners are made to reveal their identity as a tool for accountability and transparency. But more importantly, firms should ensure their boards are more gender inclusive or balanced if the quality of financial reports is to be highly amplified. Originality/value The study confirms that firms in developing economies/markets like Ghana can benefit from the accountability and transparency tool of audit engagement partner identity disclosure and that firms could maximize the effect of this accountability tool by ensuring board gender diversity.