A Critical Examination on Corporate Governance Influence on Timely Financial Reporting By Kenyan Listed Manufacturing Firms
Keywords:
Corporate Governance, FINANCIAL REPORTING, Manufacturing firms.Abstract
This study seeks to establish the effect of corporate governance on timely financial reporting of manufacturing firms listed at the Nairobi Securities Exchange. Among the key roles, which can be dealt with by corporate governance, is guaranteeing quality of the financial reporting process. The beginning point of the preparation of financial reporting is corporate governance. It utilized the descriptive research design in a bid to measure the data trends that exists in reference to the topic of study. The population of the study uses all 67 registered manufacturing firms at the Nairobi Securities Exchange, and secondary data gathered from the individual listed firm’s annual reports and financial statements. The annual unit of analysis was used for the data analysis as data was collected on an annual basis from 2016 to 2020. Multiple linear regression and correlation analysis conducted, as correlation analysis established the strength and association firm size and corporate governance on the financial reporting of manufacturing firms at the Nairobi Securities Exchange. The study findings revealed that board independence, audit and risk committee, board size, and firm size do not have a significant correlation with financial reporting quality. Further study findings were that the model entailing corporate governance that include; board independence, audit and risk committee, and board size, as well as firm size, explains timely financial reporting to a very least extent with a coefficient of determination value of 2.04%. Additional study findings were that that the model entailing corporate governance that include; board independence, audit and risk committee, and board size, as well as firm size, does not significantly predict financial reporting quality. Final study findings were that board independence, audit and risk committee, board size, and firm size do not have a significant relationship with financial reporting quality.
Empirically, the study has only utilized secondary data, the study can be followed by studies using primary data therefore, open to further investigations.
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