Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS

Bayar Gardi (), Mehmet Aga and Nabaz Nawzad Abdullah
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Bayar Gardi: Department of Accounting and Finance, Cyprus International University, Northern Cyprus, Mersin 10, Lefkosa 99040, Turkey
Mehmet Aga: Department of Accounting and Finance, Cyprus International University, Northern Cyprus, Mersin 10, Lefkosa 99040, Turkey
Nabaz Nawzad Abdullah: Department of Business Administration, College of Administration and Economics, Lebanese French University, Erbil 44001, Kurdistan Region, Iraq

Sustainability, 2023, vol. 15, issue 13, 1-19

Abstract: This study investigates how corporate governance affects the financial reporting quality of selected banks in Iraq, focusing on the role of IFRS adoption. The research collected data from 298 questionnaires distributed among diverse private banks, including IS Bank, Vakif Bank, RT Bank, Cihan Bank, Bank of Iraq, and TD Bank. Sobel analysis was used to analyze the mediation between variables. The results demonstrate that IFRS adoption plays a positive mediating role in the relationship between corporate governance and financial reporting quality in private banks. The study highlights the practical benefits of implementing strong corporate governance practices and adopting IFRS, such as improved reporting quality, regulatory compliance, better decision-making, and enhanced reputation. Private banks in Iraq can utilize these findings to enhance their financial performance and reputation by shaping their accounting and governance policies. The research paper provides original insights into the positive impact of corporate governance on financial reporting quality while considering the mediating influence of IFRS adoption, making it a valuable contribution to the research community.

Keywords: IFRS; financial reporting quality; corporate governance; private banks; auditing (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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