Determinants Of Financial Reporting Quality Evidence From Large Manufacturing Share Companies Of Addis Ababa

This study intends to assess the determinants of financial reporting quality in largernmanufacturing share company’s in Addis Ababa. Accordingly, the study usedrndocumentary analysis of companies’ audited financial statements and in depthrninterview with directors/officials of manufacturing firms. Using simple randomrnsampling method, the study selected a sample of fourteen (14) companies to studyrnthem for the period of five years (2010-2014) with the total of 70 observations.rnThe results of panel least square regression analysis show that: Firm Profitability,rnType of Auditor and Share Dispersion, have statistically significant and positivernrelationship with manufacturing share companies’ financial reporting quality. Onrnthe other hand, Firm Size has a negative and statistically significant relationship withrnmanufacturing share companies’ financial reporting quality. The study suggests,rnstakeholdersto consider intensive investigation and internal control for lowrnperformance and large firm size respectively, further, employing large audit firmsrnimprove the quality of information produced.rnKeywords: financial reporting quality, firm specific attributes, earning management,rndiscretionary (abnormal) accrual

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