Determinants of Financial Reporting Quality in Developing Countries

This thesis aims to identify the determinants of financial reporting quality (FRQ) in seven different countries between 2011 and 2019. Accruals Ratio is a crucial accounting and auditing indicator used to build a comprehensive index to assess the quality of financial reporting at the country level. Panel data from secondary sources is used. The majority of the data required for analysis was extracted adequately and conveniently from the audited financial reports of the selected firms during the study period. To examine the study's model, multiple regression is used. The primary determinants used in this study are firm size, leverage, growth, and profitability. The findings revealed that firms with higher debt levels are willing to reveal more information to satisfy their creditors. This study also discovered that firms with higher profits generate higher-quality financial reports. Profitability should therefore be a good predictor of financial reports. Larger companies must provide higher quality information because they are more vulnerable to investigations, highlighting the firm size's importance. The findings also show that firms with greater exposure and visibility have minor information asymmetry between managers and investors. As a result, full-grown firms are more likely to produce high-quality financial reports. Keywords: Determinants, Accruals Quality, Financial Reporting Quality, Firm size, Leverage, Firm Growth, Profitability, Country-level financial reporting