QUALITY CORPORATE FINANCIAL REPORTING AND STAKEHOLDERS INTERERST

Abstract

Information, Communication and Globalization has made the preparation of reports very easy because large volume of transactions needs to be processed. Quality corporate reporting is very essential for the growth of an organization and thus development of the economy of any country. Over the years the quality of reporting has received global and heightened concern as a result of the role it plays in allowing users of financial statements make economic decisions which to a very large extent talks about the soundness and healthiness of a business firm or organization. The objective of the study was to critically examine the relationship between Quality of Corporate Reporting and stakeholder’s interest. The study adopted an ex-post facto research design. The population was 35 manufacturing companies while 10 were selected purposively for a period of 10 years making 100 firm year observations. The findings reveal that Quality Corporate reporting had a significant impact on Creditors interest (Adj R2= 0.653, F(2, 97) = 48.60, P < 0.05), it also had a significant relationship on employees interest(Adj R2= 0.0.733, F(2, 97) = 40.81, P < 0.05). The study concluded that there exists a significant relationship between Quality of Corporate Reporting and all the variables of Stakeholders interest. It was recommended that Owners and Management of businesses must ensure that a mechanism and a structure is put in place to ensure that reports prepared are of high quality that will meet the needs of the stakeholders.