Title: Corporate governance as a cornerstone of transparency and trust: empirical evidence from GCC firms

Authors: Abdullah E. Alajmi; Rasheed Alrashidi

Addresses: Department of Accounting, Public Authority for Applied Education and Training, P.O. Box 23167, Safat, 13092, Kuwait ' Department of Accounting, Public Authority for Applied Education and Training, P.O. Box 23167, Safat, 13092, Kuwait

Abstract: This study investigates the impact of corporate governance mechanisms on the accuracy, reliability, and transparency of financial disclosures. Examining Gulf Cooperation Council (GCC) firms, we explore how board composition, audit committee oversight, executive compensation structures, shareholder engagement, and internal controls collectively shape financial reporting quality (FRQ). Additionally, we analyse the interplay between regulatory frameworks and corporate governance practices, highlighting their role in enhancing financial transparency and stakeholder confidence. Quantitative analyses support the observed relationships between corporate governance and FRQ. By elucidating these mechanisms, the research improves our understanding of transparent and credible financial reporting practices. As GCC firms navigate evolving corporate responsibility landscapes, this study emphasises the crucial role of robust governance in fostering integrity and reliability in financial reporting.

Keywords: transparency; trust; empirical analytics; corporate governance; FRQ; financial reporting quality.

DOI: 10.1504/IJBAF.2024.139360

International Journal of Behavioural Accounting and Finance, 2024 Vol.7 No.2, pp.177 - 192

Received: 06 Nov 2023
Accepted: 27 Feb 2024
Published online: 01 Jul 2024 *

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