Effect of Accounting Ethics on Quality of Financial Reporting among Listed Commercial Banks in Rwanda Stock Exchange

Q3 Economics, Econometrics and Finance

Afro-Asian Journal of Finance and Accounting Pub Date : 2023-11-04 DOI:10.53819/81018102t2248

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引用次数: 0

Abstract

Accounting ethics is an important element for enhancing the quality of financial reporting in financial institutions because it requires bank staffs to exercise integrity, objectivity and professional competence and due care. This research examined the effect of accounting ethics on quality of financial reporting among listed commercial banks in Rwanda stock exchange. The objectives of the study were to investigate the effect of accounting integrity on the quality of financial reporting among listed commercial banks in Rwanda, to determine the effect of accounting objectivity on the quality of financial reporting among listed commercial banks in Rwanda and to examine the effect of accountants’ professional competence and due care on the quality of financial reporting among listed commercial banks in Rwanda stock exchange .Theories underpinning the study are business entity theory, going concern theory and agency theories. The study used correlation design with a quantitative approach. The sample size was 363 respondents who included accounting, finance and auditing staff, heads of departments and members of the boards of directors of the four selected commercial banks. However, only 203 (56% response rate) completed the survey. Stratified simple random and purposive sampling techniques were used to select this sample. Data was analyzed through descriptive analysis. Findings for the first hypothesis (H01) show that accounting integrity has a statistically significant effect on the quality of financial reporting among selected commercial banks in Rwanda (β=.196; p<.05). This suggests that holding other factors constant, accounting integrity contributes up to 19.6% of the variation in the quality of financial reporting. For the second hypothesis (H02), it is observed that accounting objectivity has a statistically significant effect on the quality of financial reporting among selected commercial banks in Rwanda (β=.591; p<.05). Regarding the third hypothesis (H03), findings show that professional competence and due care have no statistically significant effect on the quality of financial reporting among selected commercial banks in Rwanda (β=.140; p>.05). The study recommends strengthening professional knowledge and training by investing in continuous training and development programs. Promotion of ethical practices, enhancement of staff and management collaboration and learning culture across the surveyed commercial banks are also recommended. It is hoped that the study will enable the listed commercial banks to improve ethical practices and competences among staffs so as to enhance quality of reporting. Other academicians may also find the study valuable in benchmarking their studies on the same subject. Keywords: Accounting Ethics, Quality of Financial Reporting, Commercial Banks, Rwanda Stock Exchange

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会计伦理对卢旺达证券交易所上市商业银行财务报告质量的影响

会计道德是提高金融机构财务报告质量的重要因素，因为它要求银行工作人员诚信、客观、专业能力和应有的谨慎。本研究考察了会计道德对卢旺达证券交易所上市商业银行财务报告质量的影响。本研究的目的是调查会计诚信对卢旺达上市商业银行财务报告质量的影响。确定会计客观性对卢旺达上市商业银行财务报告质量的影响，并检验会计师的专业能力和应有注意对卢旺达证券交易所上市商业银行财务报告质量的影响。支撑本研究的理论是企业实体理论、持续经营理论和代理理论。本研究采用定量相关设计。样本规模为363名受访者，其中包括四家选定的商业银行的会计、财务和审计人员、部门负责人和董事会成员。然而，只有203人(56%的回复率)完成了调查。本研究采用分层、简单随机和有目的抽样技术。数据分析采用描述性分析。第一个假设的结果(H01)表明，在卢旺达选定的商业银行中，会计诚信对财务报告质量具有统计显著的影响(β= 0.196;术;. 05)。这表明，在保持其他因素不变的情况下，会计诚信对财务报告质量变化的贡献高达19.6%。对于第二个假设(H02)，可以观察到会计客观性对卢旺达选定的商业银行的财务报告质量具有统计显着的影响(β=.591;术;. 05)。关于第三个假设(H03)，研究结果表明，在卢旺达选定的商业银行中，专业能力和应有的谨慎对财务报告质量没有统计学上显著的影响(β=.140;p> . 05)。该研究建议通过投资于持续培训和发展项目来加强专业知识和培训。报告亦建议在接受调查的商业银行推广操守操守、加强员工与管理层的合作及学习文化。希望这项研究能帮助上市商业银行提高员工的道德操守和能力，从而提高报告质量。其他学者可能也会发现这项研究对他们在同一主题上的研究进行基准测试很有价值。关键词:会计伦理，财务报告质量，商业银行，卢旺达证券交易所

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来源期刊

Afro-Asian Journal of Finance and Accounting Economics, Econometrics and Finance-Finance

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting