Professional Management, Board Efficacy and Financial Reporting Quality: Evidence from Stock Markets in Sub-Saharan Africa

26 Pages Posted: 18 Feb 2021 Last revised: 29 Mar 2023

See all articles by Isaac Marfo Oduro

Isaac Marfo Oduro

University of Kwazulu-Natal

Mabutho Sibanda

University of KwaZulu-Natal - Faculty of Commerce & Management (Westville Campus)

Samuel Agyei

University of Cape Coast

Date Written: February 9, 2021

Abstract

This study examined the influence of firms’ reliance on professional management (ProMgt) and board efficacy (BodEff) on financial reporting quality (FRQ) of listed firms in Sub-Saharan Africa (SSA). Using the system generalised method of moments (sys-GMM) framework to analyse data from 13 stock exchanges in Africa and 472 firms from 2007 to 2017, the study found that professional management and board efficacy exhibits a positive and significant relationship with financial reporting quality in SSA. Thus, policies aimed at improving financial reporting quality must consider facilitating the engagement of professional management and ensuring board efficacy.

Keywords: Financial reporting quality, Reliance on professional management, Board efficacy, Sub-Saharan Africa

JEL Classification: M41

Suggested Citation

Oduro, Isaac Marfo and Sibanda, Mabutho and Agyei, Samuel, Professional Management, Board Efficacy and Financial Reporting Quality: Evidence from Stock Markets in Sub-Saharan Africa (February 9, 2021). Available at SSRN: https://ssrn.com/abstract=3782199 or http://dx.doi.org/10.2139/ssrn.3782199

Isaac Marfo Oduro (Contact Author)

University of Kwazulu-Natal ( email )

Faculty of Commerce & Management
Westville Campus
Durban, DE Durban 4000
South Africa

Mabutho Sibanda

University of KwaZulu-Natal - Faculty of Commerce & Management (Westville Campus) ( email )

Durban 4000
South Africa

Samuel Agyei

University of Cape Coast ( email )

PMB, UCC, GHANA
Cape Coast, Central Region PMB
Ghana

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