CORPORATE GOVERNANCE MECHANISMS AND THE QUALITY OF FINANCIAL REPORTING; EVIDENCE FROM EMERGING ECONOMIES

This study investigates the effect of corporate governance (CG) mechanisms on the financial reporting quality (FRQ) of manufacturing firms regulated by the Ghana Securities and Exchange Commission (SEC). Utilising a mixed-methods approach, data were collected through questionnaire surveys and in-depth interviews with a diverse group of stakeholders, yielding a sample of 150 respondents from quoted manufacturing firms. Our findings reveal that ownership structure (OS) has a significantly positive impact on FRQ. Similarly, audit committee (AC) characteristics exert a strongly positive influence on the quality of financial reports. In contrast, board characteristics (BC) show a positive but not statistically significant relationship with FRQ. Based on these results, we conclude that robust OS and AC frameworks are the primary drivers enhancing the FRQ of quoted manufacturing firms in Ghana. At the same time, the specific board characteristics examined play a more marginal role. This study contributes to the broader academic discourse on CG mechanisms and FRQ within the relatively unexplored context of a developing economy's capital market. The insights offer actionable implications for regulators, particularly the Ghana SEC, as well as standard-setters and investors dedicated to promoting effective corporate governance and elevating the value relevance of financial reporting.