Factors influencing the quality of financial information: A systematic literature review

Masidivinga Landu, Jorge H. Mota, António Carrizo Moreira and Ana Maria Bandeira

South African Journal of Accounting Research, 2025, vol. 39, issue 2, 149-176

Abstract: Purpose: This research seeks to identify the key factors influencing the quality of financial information within the context of globalisation and complex commercial transactions.Motivation: In today's globalised environment, trust in financial information is crucial for maintaining market stability and efficiency. Understanding these influencing factors is paramount for sound decision-making by firm managers.Design/Methodology/Approach: A Systematic Literature Review methodology is employed. The investigation examines 50 articles from the SCOPUS and Web of Science databases to identify the key determinants affecting financial information quality.Main findings: The investigation identifies critical factors at firm, country and international levels. Firm-level factors include corporate governance practices, incentives for transparent disclosure and bank monitoring. Country-level influences stem from regulatory frameworks and firm-agent dynamics. Finally, international factors involve competition within capital markets and the degree of a firm's internationalisation.Practical implications: The research provides key recommendations for both firm managers and regulatory bodies. Managers are advised to adopt transparent policies, implement rigorous audit processes and foster a culture of integrity and accuracy. Additionally, strengthening regulatory bodies and supervisory entities is crucial for effectively monitoring financial practices and penalising misconduct.Novelty/Contribution: This research represents a pioneering effort to systematically synthesise factors affecting financial information quality. It provides a comprehensive framework for academics and practitioners, promoting sustainable economic growth and informed decision-making.

Date: 2025
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DOI: 10.1080/10291954.2024.2366169

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