Corporate Governance and Financial Reporting Quality: The Case of The Tunisian Firms

nesrine klai, abdelwahed omri

Abstract


The proliferation of accounting scandals has prompted the need to improve the relevance of financial reporting by setting up good governance structures. The relationship between governance and information quality has been strongly debated in the context of developed countries. It is only recently that attention turned to the study of governance and financial disclosure in emerging countries.In this paper, we examine the effect of the governance mechanisms on the financial reporting quality for a sample of Tunisian firms. Specifically, we focus on the characteristics of the board of directors and the ownership structure of the firms listed on the Tunis Stock Exchange during the period 1997–2007. The results reveal that the governance mechanisms affect the financial information quality of the Tunisian companies. Particularly, the power of the foreigners, the families and the blockholders reduces the reporting quality, while the control by the State and the financial institutions is associated with a good quality of financial disclosure.

Full Text: PDF DOI: 10.5539/ibr.v4n1p158

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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