Financial Reporting Quality and Firm Performance: Evidence from Emerging Markets
Keywords:
Financial reporting quality, Firm performance, Emerging markets, Accounting transparencyAbstract
The relationship between financial reporting quality and firm performance in emerging markets. Using a sample of companies from various emerging market economies, we examine the impact of financial reporting quality on key performance indicators such as profitability, stock returns, and market valuation. Our analysis incorporates measures of financial reporting quality based on accounting transparency, adherence to international accounting standards, and auditor independence. The results suggest a positive association between financial reporting quality and firm performance, indicating that companies with higher levels of transparency and adherence to accounting standards tend to exhibit better financial performance. Furthermore, we find that the quality of financial reporting has a significant impact on investor perceptions and market valuation, with firms demonstrating higher reporting quality receiving higher valuations in the stock market. Overall, our findings highlight the importance of financial reporting quality as a determinant of firm performance and investor confidence in emerging markets.
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