The Effect of Accounting Ethical Practices on the Quality of Financial Reports of Manufacturing Companies in Uganda.
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Date
2023-09-11
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Uganda Christian University
Abstract
The purpose of this study was to examine the relationship between accounting ethical practices and financial reporting quality of manufacturing companies, a case study of Gulu Agricultural Development Company Ltd. Accounting ethical practices are the moral principles and values that guide the behavior of accountants and auditors in their professional activities. Financial reporting quality is the degree to which financial statements reflect the true economic performance and position of a company. The study used a survey method to collect data from 104 Accounting Practitioners and those with knowledge of finance and accounts functionalities and employed multiple regression analysis to test the hypotheses. The results showed that accounting ethical practices have a positive and significant effect on financial reporting quality, indicating that companies with higher levels of ethical standards tend to produce more reliable and transparent financial reports.
The study also found out that the size, profitability, leverage, and audit quality of the companies moderates the relationship between accounting ethical practices and financial reporting quality. The study contributed to the literature by providing empirical evidence on the role of ethics in enhancing the quality of financial reporting in Uganda, a developing country with limited accounting regulations and enforcement mechanisms. The study also provided practical implications for managers, regulators, auditors, and investors who are interested in improving the quality of financial information in the manufacturing sector.
Description
This is a dissertation.