The Impact of Corporate Governance Mechnanisms on Financial Reporting Quality in Yemen

Abstract

The goal of this study was to look at the impact of corporate governance mechanisms (Board of Directors, audit committee, and internal audit) as well as international financial reporting standards (IFRS) on financial reporting quality. In order to gather relevant information about Yemen's financial reporting quality, the researcher conducted a survey and distributed it via application. In addition, 290 Yemeni private sector workers participated in this study. Smart PLS software was used to conduct structural equation modelling prior to using SPSS (SEM). Corporate governance can be measured in a variety of ways, and the audit committee is no exception. The audit committee's size is determined by its independence as well as the expertise of its members. The study's findings show that the audit committee, internal audit, and international financial reporting standards all have a significant impact on financial reporting quality. The board of directors, however, has no influence on the quality of financial reporting. International financial reporting standards, as well as the outcomes of corporate governance (Audit Committee and Internal Audit), all contribute to improved financial reporting quality.