Contemporary Review of Financial Reporting Quality Studies in Emerging Countries
Keywords:
Financial Reporting Quality, Emerging Countries, Systematic Literature Review
Abstract
This study reviews research on the quality of financial reports. It highlights the influencing factors of financial reporting quality, provides more information for measuring and improving financial reporting quality, and offers suggestions for future research. By the method proposed by Tranfield et al. (2003), this paper conducted a literature review on the quality of financial reports and their related terms, influencing factors and measurement methods. When conducting the literature search, Scopus and Google Scholar search engines were used to screen top-ranked journals, such as Science Direct and Emerald, to find high-quality papers. The selected online publishing materials cover the period from 2020 to 2023. This review found that previous research discussed the quality of financial reporting using different metrics and various theories. In addition, this study also revealed the factors that influence the improvement of financial reporting quality in emerging countries. This article contends that due to the lack of empirical research on the quality of financial reports from the perspective of other stakeholders, future research needs to focus on the impact of corporate stakeholders on financial report quality, especially in emerging countries.
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References
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Dalwai, T., Mohammadi, S. S., Chugh, G., & Salehi, M. (2023). Does intellectual capital and corporate governance have an impact on annual report readability? Evidence from an emerging market. International Journal of Emerging Markets, 18(9), 2402–2437. https://doi.org/10.1108/IJOEM-08-2020-0965
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Habib, A., & Hasan, M. M. (2020). Business strategies and annual report readability. Accounting & Finance, 60(3), 2513–2547. https://doi.org/10.1111/acfi.12380
Harymawan, I., Nasih, M., Rahayu, N. K., Kamarudin, K. A., & Wan Ismail, W. A. (2022). Busy CEOs and financial reporting quality: evidence from Indonesia. Asian Review of Accounting, 30(3), 314–337. https://doi.org/10.1108/ARA-11-2021-0203
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Kaawaase, T. K., Nairuba, C., Akankunda, B., & Bananuka, J. (2021). Corporate governance, internal audit quality, and financial reporting quality of financial institutions. Asian Journal of Accounting Research, 6(3), 348–366. https://doi.org/10.1108/AJAR-11-2020-0117
Klish, A. A., Shubita, M. F. S., & Wu, J. (2022). IFRS adoption and financial reporting quality in the MENA region. Journal of Applied Accounting Research, 23(3), 570–603. https://doi.org/10.1108/JAAR-08-2020-0155
Kontesa, M., Lako, A., & Wendy, W. (2020). Board capital and earnings quality with different controlling shareholders. Accounting Research Journal, 33(4–5), 593–613. https://doi.org/10.1108/ARJ-01-2020-0017
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Kutan, A., Laique, U., Qureshi, F., Rehman, I. U., & Shahzad, F. (2021). A survey on national culture and corporate financial decisions: current status and future research. International Journal of Emerging Markets, 16(7), 1234–1258. https://doi.org/10.1108/IJOEM-12-2019-1050
Larcker, D. F., & Richardson, S. A. (2004). Fees Paid to Audit Firms, Accrual Choices, and Corporate Governance. Journal of Accounting Research, 42(3), 625–658. https://doi.org/10.1111/j.1475-679X.2004.t01-1-00143.x
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Luo, S., & Song, F. (2022). Principles-based versus rules-based: accounting standards precision and financial restatements in China. Asian Review of Accounting, 30(4), 581–615. https://doi.org/10.1108/ARA-09-2021-0177
Madawaki, A., Ahmi, A., & Ahmad, H. N. (2022). Internal audit functions, financial reporting quality, and the moderating effect of senior management support. Meditari Accountancy Research, 30(2), 342–372. https://doi.org/10.1108/MEDAR-04-2020-0852
Mahdi Sahi, A., Sahi, A. M., Abbas, A. F., & F. A. Khatib, S. (2022). Financial reporting quality of financial institutions: Literature review. In Cogent Business and Management, 9(1). Cogent OA. https://doi.org/10.1080/23311975.2022.2135210
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Mardessi, S. (2022). Audit committee and financial reporting quality: the moderating effect of audit quality. Journal of Financial Crime, 29(1), 368–388. https://doi.org/10.1108/JFC-01-2021-0010
Marzuki, H., Hasnan, S., & Ali, M. M. (2022). CONTEMPORARY REVIEW OF CORRUPTION RISK STUDIES. In Corporate Governance and Organizational Behavior Review, 6(2), 255–267. Virtus Interpress. https://doi.org/10.22495/cgobrv6i2sip10
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Naz, A., Krošláková, M. N., Farheen, I., ?virik, M., & Michálková, A. (2023). Nexus between corporate governance and earnings management in family and non-family firms. E a M: Ekonomie a Management, 26(2), 42–57. https://doi.org/10.15240/tul/001/2023-2-003
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Ogaluzor, O. I., & Ohaka, J. (2019). Effect of Audit Committee Characteristics on Financial Reporting Quality. https://www.researchgate.net/publication/338458166
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Published
2025-06-21
How to Cite
Xi, P., Hasnan, S., & Othman, I. W. (2025). Contemporary Review of Financial Reporting Quality Studies in Emerging Countries. Information Management and Business Review, 17(2(I), 1-13. https://doi.org/10.22610/imbr.v17i2(J).4531
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Research Paper
Copyright (c) 2025 Pan Xi, Suhaily Hasnan, Intan Waheedah Othman
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