The Role of Corporate Governance in Reducing the Adverse Impacts on the Reliability of Financial Statements Evidence from Saudi Listed Firms

Alhanouf Alhasani; Ibrahim Sweiti

doi:10.34257/GJMBRDVOL23IS1PG1

Authors

Alhanouf Alhasani
Ibrahim Sweiti

Keywords:

corporate governance, financial statements, reliability of financial statements

Abstract

The study aims to measure the role of corporate governance in reducing the adverse effects of financial statements. Moreover, it focuses on answering the question: Does corporate governance have a positive role in providing reliable financial statements? Based on the statistical analysis and theoretical framework, the researcher reached several results, namely: There is no significant relationship between the following independent variables, and reducing the adverse effects of the reliability of the financial statements as a dependent variable: the size of the board of directors, board meetings, a separation between the chief executive officer and the chairman of the board, compliance with regulations and laws, company size, profitability, and sector type. Also, it was revealed that there was a positive relationship between the following independent variables and the reduction of the adverse effects on the reliability of the financial statements as a dependent variable: non-executive directors of the board, audit quality, and financial leverage.

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The Role of Corporate Governance in Reducing the Adverse Impacts on the Reliability of Financial Statements Evidence from Saudi Listed Firms. (2023). Global Journal of Management and Business Research, 23(D1), 1-17. https://doi.org/10.34257/GJMBRDVOL23IS1PG1

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