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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

An investment is considered effective when it has a positive impact on a company and its growth. However, to get an investment is demanding since it is influenced by various factors, especially internal management, which can hinder the achievement of the main investment objectives. The study aims to provide empirical evidence on the impact of financial reporting quality (FRQ); environmental, social, governance and prosperity disclosures (ESGP) on investment efficiency (IE), as well as the role of information asymmetry (IA) as a moderator. Purposive sampling was used in the sample selection process for firms that are listed on IDX_IC Shares (Indonesian Stock Exchange) during the 2019-2021 timeframe, while balanced panel data was used. Panel data regression was used for regression analysis. Based on the research, it was found that the FRQ affects investment efficiency; while ESG and prosperity disclosure did not affect investment efficiency. Furthermore, information asymmetry affects investment efficiency, and it can moderate (weaken) the effect of FRQ on investment efficiency. However, the information asymmetry did not weaken the influence of ESG and prosperity disclosure on investment efficiency. These findings indicate that the FRQ is the primary determining factor in investment. With the best quality financial information, it is easier to identify investment opportunities that can increase investment efficiency. Meanwhile, ESG and prosperity disclosure cannot directly influence investment decisions to achieve investment efficiency. Yet, the existence of information asymmetry results in disclosure being paid more attention by management so that it tends to have more effect on efficient investment. The research implicates the importance of understanding for stakeholders to pay more attention to the impacts arising from information asymmetry (referring to moral hazard) on investment efficiency. [ABSTRACT FROM AUTHOR]

Audit committee (AC) responsibilities have increased over time, prompting concerns that overloading the AC with too many duties may impair the AC's ability to oversee financial reporting. Using new AC charter-based proxies to measure AC responsibilities, we find that an emphasis on the AC overseeing financial risk management (which is a noncore AC duty) is associated with worse financial reporting quality, as proxied by restatements—consistent with the argument of AC overload by distraction. This overload effect is attenuated when an AC has more directors to share duties or when the AC retains an expert auditor who can serve as a substitute for AC oversight. This overload effect is accentuated when AC members are busy with multiple board appointments or when the external auditor is busy with other audits. We also find that AC financial risk oversight is associated with more AC meetings and greater turnover of AC directors, consistent with the notion of overload. In sharp contrast, we find that greater AC oversight over internal controls (which is a core AC duty) is associated with improved financial reporting quality. Overall, we document that the nature of AC duties impacts the AC's ability to promote financial reporting quality and that noncore duties may overload ACs. This paper was accepted by Suraj Srinivasan, accounting. Funding: The authors are grateful for funding provided by the Eller College of Management at the University of Arizona, the Broad College of Business at Michigan State University, and the Carson College of Business at Washington State University. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2022.00360. [ABSTRACT FROM AUTHOR]

Copyright of EUL Journal of Social Sciences / LAÜ Sosyal Bilimler Dergisi is the property of EUL Journal of Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research delves into the influence of adopting international financial reporting standards (IFRSs) on the financial reporting quality (FRQ) of Indian multinational corporations (MNCs). It also investigates the moderating impact of the internal control system (ICS) on the relationship between IFRSs and FRQ. The data collection involves a survey using a previously validated and adjusted scale from earlier studies. A sample of 512 participants is selected through purposive sampling methods. The analysis employs partial least square structural equation modelling (PLS-SEM) to validate the data and test the hypotheses. The results indicate a significantly positive influence of perceived benefits, perceived ease of implementation, and government policy on IFRS adoption within Indian MNCs. However, the impact of legal requirements on IFRS adoption in Indian MNCs is insignificantly positive. Furthermore, adopting IFRSs substantially positively affects FRQ within Indian MNCs. Similarly, FRQ significantly positively affects the relevance, accuracy, understandability, comparability, and timeliness of MNCs' financial reports in India. The moderating role of the ICS in the connections between IFRS adoption and FRQ is positive yet insignificant within Indian MNCs. The insights derived from this study are valuable for investors, shareholders, government authorities, financiers, board members, and top executives of organisations. [ABSTRACT FROM AUTHOR]

The aim of this research is to analyze and provide empirical evidence regarding the influence of HR Competency, Government Internal Control System (SPIP), Organizational Environment on Financial Reporting Quality with the Regional Government Information System (SIPD) as mediation. The population in this research is the Regional Government Work Units (SKPD) in Regencies/Cities throughout Lombok Island. The sample for this research was taken using a purposive sampling method, using the Slovin formula to obtain a sample of 296 respondents from 148 OPDs in districts/cities throughout Lombok Island. This research uses a survey method. The research data analysis method uses Structural Equation Modeling- Partial Least Square (SEM-PLS). The results of this research indicate that HR Competency, Government Internal Control System (SPIP) and Regional Government Information System (SIPD) influence the quality of regional financial reports and the Organizational Environment does not influence the quality of regional financial reports. The results of the mediation test show that the Regional Government Information System (SIPD) mediates the influence between HR Competency and the Government Internal Control System (SPIP) on the quality of regional financial reports. Meanwhile, the Regional Government Information System (SIPD) does not mediate the influence of the Organizational Environment on the quality of financial.

This study aims to analyze the effect of political will and information technology on fraud prevention either directly or through the quality of financial reporting information. This study uses a survey method that intentionally targets five village officials responsible for village financial administration. The survey was conducted in Pangkep Regency, South Sulawesi Province, Indonesia. Data collection was carried out using a questionnaire with a total research sample of 325 respondents. Data analysis was conducted using partial least squares structural equation modeling with the help of the SmartPls 4.0 application. The results showed that political will had a positive and significant effect on fraud prevention (β = 0.198; t-value = 3.230 > 1.97) but had no effect on the quality of financial reporting information (β = 0.053; t-value = 0.696 < 1.97). Information technology had a significant negative effect on fraud prevention (β = –0.198; t-value = 3.019 > 1.97) and a significant positive effect on the quality of financial reporting information (β = 0.186; t-value = 2. 863 > 1.97). Fraud prevention has a positive and significant effect on the quality of financial reporting information (β = 0.161; t-value = 2.598 > 1.97). Political will has no significant effect on fraud prevention through the quality of financial reporting information (β = 0.009; t-value = 0.628 < 1.97), while information technology has a positive and significant effect on fraud prevention through the quality of financial reporting information (β = 0.029; t-value = 2.093 > 1.97).

This study aims to investigate the impact of accounting ethics on the quality of financial reporting of MSMEs in Ghana, a sector vital to economic stability. Given the critical role of MSMEs in the Ghanaian economy, there is an urgent need to establish ethical financial practices that promote transparency and sustainability in the sector.Using Stakeholder Theory, thisstudy specifically examines how variables of ethical leadership, employee motivation, training and education, regulatory environment, technology solutions, and internal controls affect this relationship.Data were collected from 368 participants in 100 MSMEs from the Central Region of Ghana using a quantitative approach and a standardized questionnaire based on a five-point Likert scale. The main analytical tool for data analysis is Structural Equation Modeling (SEM) with SMART PLS 4. The results of this study indicate that accounting ethics has a significant effect on the quality of financial reporting of MSMEs in Ghana. Ethical leadership, training and education, and employee motivation significantly mediate the relationship between accounting ethics and financial reporting quality of MSMEs in Ghana.Meanwhile, internal control, technology solutions, and regulatory environment do not significantly mediate the relationship between accounting ethics and financial reporting quality of MSMEs in Ghana. This study offers useful insights into the significance of accounting ethics in improving the integrity of financial reporting of MSMEs in Ghana.

We investigate whether board-interlocked firms via an audit committee (AC) board member exhibit correlated non-audit service (NAS) purchases, and whether financial reporting quality and future firm performance vary with the amount of correlated NAS purchases from the AC interlock. We find that AC interlocked firms have positively correlated total NAS and three NAS subtypes—Tax, Assurance, and Other—in the overall sample period from 2000 to 2016, and in each of the subperiods pre- and post-SOX (Sarbanes–Oxley Act). Firms with a larger NAS component that is explained by the AC interlock tend to exhibit lower financial reporting quality. We also find evidence that firms with higher AC interlocked NAS purchases are associated with lower future performance, although this association exists only in the pre-SOX period. Overall, the evidence suggests that greater NAS purchases among AC interlocked firms can have a detrimental effect on financial reporting quality and auditor independence. While these detrimental effects are concentrated in the pre-SOX period when there were less restrictions on NAS purchases, we find some evidence that the association with lower financial reporting quality persists in the post-SOX period. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Earnings, as one of the most important outputs of the accounting and financial reporting system, are of great interest to various users for making appropriate decisions in resource allocation. In addition to its quantitative value, if earnings lack appropriate quality, it can lead stakeholders astray and result in misinformed decisions. According to research literature, there are numerous definitions and classifications of earnings quality (EQ) and financial reporting quality (FRQ), along with measurement criteria, but there is no general consensus among them. The criteria examined in this study include a total of eight criteria based on accounting (accruals, persistence, predictability, and smoothness) and market-based (value relevance, timeliness, and conservatism) perspectives. For this purpose, after reviewing the research literature in this field, the advantages and disadvantages of these criteria were explored and critiqued. Research in this area can contribute to the development and determination of an optimal model in the context of the Iranian capital market. [ABSTRACT FROM AUTHOR]

Using a unique hand-collected dataset of purchase obligations, we find that customers' financial reporting quality is positively associated with future supply contracts, indicating that suppliers are more willing to contract with customers who provide them with better information. Further, the association between customers' financial reporting quality and future supply contracts is stronger for customers with strong bargaining power, which is consistent with suppliers relying more on financial reports when they have less access to customers' private information. Collectively, our results suggest that customers' financial reporting quality plays an important role in influencing suppliers' decisions to contract with customers for the future supply of goods and services. Data Availability: Data for dependent variable are manually collected and data for all other variables are available from public sources cited in the text. JEL Classifications: D80; M41. [ABSTRACT FROM AUTHOR]

This study examines the impact of governance on the efficiency of nonprofit organizations and the relationship among different governance mechanisms. Using a dataset of 3496 Chinese foundations from 2011 to 2015, we find that internal governance, external donor governance, and external governance environment are significantly and positively associated with foundations' efficiency. Importantly, substitutional relationships exist among these governance mechanisms. Financial reporting quality is a major channel through which governance influences efficiency. Furthermore, the positive association between governance and efficiency is more pronounced for small foundations than for large ones and for noneducation‐focused foundations than for education‐focused ones. This study offers practical guidance for foundations to improve their efficiency by enhancing both internal and external governance and will be of interest to foundation leaders, donors, and policymakers. [ABSTRACT FROM AUTHOR]

This study investigated the interactive effect of key audit matters (KAMs) and stock ownership on German audit committee (AC) members' preferences regarding accounting issues in an experimental setting. Specifically, we explored whether the increased accountability of AC members to investors, resulting from KAM disclosures, is influenced by whether an AC member owns shares in the audited company. Our findings suggest that the disclosure of KAMs supports a conservative management accounting preference. However, KAMs can be used by stock-owning AC members as disclaimers that inform the investing public and might serve as legitimation tools for ACs with a preference for less conservative accounting. Hence, our study provides evidence from a two-tier governance country that audit committee members' accounting preferences based on disclosed KAMs depend on their financial independence. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Educação e Pesquisa em Contabilidade is the property of Revista de Educacao e Pesquisa em Contabilidade and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: The study aims to investigate market reactions associated with the JUST 100 rankings published by JUST Capital, a non-profit organization, as well as differences in financial reporting quality and performance between selected firms and their industry peers. Design/methodology/approach: This study uses a sample of 431 firms selected as the 100 America's Most Just Companies between 2016 and 2020 by JUST Capital. This study performs both an event study to determine whether the rankings are useful to investors and cross-sectional regression analyses on the characteristics of selected firms compared to their peers. Findings: This study finds that investors react positively to selected firms around the time of the release of the JUST 100 rankings, suggesting that the rankings are decision-useful. This study also finds that selected firms exhibit higher accounting quality and financial performance than their peers. Research limitations/implications: Rankings may not be free from bias because of JUST Capital's ownership of an exchange-traded fund. Social implications: The findings validate the rankings as well as the methodology used by JUST Capital, as they show market participants value firms that engage in socially responsible actions through their commitment to positively impact five key stakeholder groups: employees, customers, communities, environment and shareholders. Originality/value: To the best of the authors' knowledge, this is the first study that shows the importance of the JUST 100 rankings for investment decisions. Considering the growing push for companies to disclose environmental, social and governance (ESG) activities, this study provides evidence to support ESG disclosure regulations. [ABSTRACT FROM AUTHOR]

The present study aims to investigate the impact of companies' business strategies on financial reporting quality taking into account the effect of managers' overconfidence. The data of 140 companies listed on the Tehran Stock Exchange for ten years, from 2013 to 2022, were collected based on the systematic deletion model, and hypotheses were tested using multivariate linear regression. The results revealed the type of strategy chosen by companies significantly affects the quality of financial reporting. Companies that pursue aggressive strategies demonstrate better financial reporting quality compared with defensive companies, which aligns with previous research results. Bermpei (2021) showed that companies' operating policies significantly impact financial reporting. The results also revealed that managerial overconfidence has a significant adverse effect on financial reporting quality; it reduces the significant impact of business strategy on the quality of financial reporting. In companies with overconfident managers, the significant impact of business strategy on the financial reporting quality is decreased. The findings provide valuable insight into the importance of selecting an appropriate business strategy for enhancing companies' financial reporting quality, which should be considered by professional authorities to strengthen the quality of financial reporting. [ABSTRACT FROM AUTHOR]

With a focus on the mediating function of financial reporting quality (FRQ), this study investigates how corporate governance (CG) shapes investment efficiency (IE) of nonfinancial enterprises listed on the Pakistan Stock Exchange (PSX) from 2013 to 2023. Effective CG practices greatly improve IE, according to a study using a sample of 200 enterprises and strong hypothesis testing with the Generalized Method of Moments (GMM) that addresses the issue of endogeneity and unabsorbed heterogeneity. Additionally, the study shows that accurate and transparent financial reporting is crucial for making the best investment decisions and that first-class reporting of financial information plays a crucial mediating role in this relationship. Control factors such as business size, leverage, firm age, and financial slack are incorporated into the research to guarantee thorough results. The findings broaden our understanding by illustrating how FRQ plays a mediating function in the relationship between CG and IE and how CG and FRQ cooperate to enhance IE. CG significantly affects FRQ, and FRQ affects IE. Studies offer useful advice for corporatemanagers and policymakers. [ABSTRACT FROM AUTHOR]

This study explores the relationship between financial reporting quality and insurer governance, with the hypothesis that robust governance procedures exert better control over managers' opportunistic behavior. The analysis is based on a dataset of insurer firms from 2014 to 2021. The econometric results obtained using the two‐step system GMM technique reveal that the overarching influence of corporate governance on enhancing financial reporting quality is evident, with board and risk governance matters the most. Among individual governance attributes, the optimal board size, a higher proportion of independent directors, audit and risk committees' size, and risk committee independence play a significant role in governing discretionary accruals. The efficacy of governance mechanisms considerably differs across life and non‐life insurers, shedding light on the nuanced dynamics within the Indian insurance market. The results lend empirical support to resource dependency and agency theories within the Indian insurance sector. The implications suggest potential avenues for amending or redesigning governance norms with specificities of insurers and the ultimate goal of fostering an environment conducive to enhancing the reporting quality of Indian insurance firms. [ABSTRACT FROM AUTHOR]

This article documents the link amid audit quality and earnings manipulation among companies listed at the Nairobi Securities Exchange. Existing literature has shown that audit quality can influence earnings management though with inconsistent findings. We anchor this study on agency theory and use two measures to determine audit quality -audit fees and auditor industry specialization. We use discretionary accruals computed by the Modified Jones Model to quantify earnings manipulation. The study controlled for firm size and found out that audit fees have a negative but statistically significant effect on earnings manipulation while auditor industry specialization showed a positive but statistically insignificant influence on earnings manipulation. These findings align with those arguing that higher audit fees imply comprehensive audit work to minimize earnings manipulation. The study implies that regulators, audit committees, and managers ought to emphasize not only the lowest bidder for audit services but the auditor's technical competence. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between internal audit effectiveness, corporate governance attributes, and sustainable financial reporting quality within Tanzanian commercial banks. Grounded by agency cost theory to provide new insights into the determinants of financial reporting quality in a developing country context. A cross‐sectional and correlational research design was employed, utilizing a structured questionnaire distributed to 150 respondents across a representative sample of Tanzanian commercial banks. Data analysis was conducted using multiple linear regression techniques, with comprehensive diagnostic tests to ensure the robustness of the findings. The results indicate that larger board sizes and proactive board role performance significantly enhance financial reporting quality, reflecting the importance of strong governance structures. Board independence showed a significant impact on financial reporting quality, suggesting that board independence with active engagement contributes to financial reporting quality. Internal audit quality also emerged as a critical predictor of reliable financial reporting, underscoring the role of internal audit in promoting transparency and accountability. These findings contribute to the ongoing debate in corporate governance literature by providing evidence from a developing country perspective, highlighting the nuanced roles of governance and audit in shaping financial reporting quality. This study fills a key gap in the literature by focusing on the Tanzanian banking sector, offering practical recommendations for policymakers and practitioners aimed at enhancing the integrity of financial reporting. Policymakers should emphasize board independence and the active involvement of board members and strengthen internal audit functions to improve reporting transparency and accountability. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Management & Systems is the property of Business Administration Association of R.O.C. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This study investigates the relationship between foreign ownership, earnings quality and overinvestment in Japanese zombie firms. Design/methodology/approach: The study makes use of data from Japanese firms listed on the first section of the Tokyo Stock Exchange from 2009 to 2019. The study employs logistic and multinomial logistic models to test whether the overinvestment behavior of zombie firms is mitigated by foreign shareholdings and earnings quality. Findings: The results show that (1) zombie firms tend to overinvest; (2) an increase in foreign ownership mitigates the overinvestment of zombie firms and (3) the mitigation of zombie firms' overinvestment by foreign ownership is stronger with higher earnings quality. Originality/value: This study extends the discussion of earnings quality and investment efficiency to the zombie firm setting. Previous studies in accounting suggest that high earnings quality enhances firms' investment efficiency. The findings suggest that both a change in ownership structure and high-quality accounting information are necessary to mitigate the inefficiency of zombie firms. [ABSTRACT FROM AUTHOR]

This research objective of the study is to examine the impacts of accounting controls on the quality of financial reporting within microfinance banks (MFBs) located in Kwara State, Nigeria. A cross-sectional survey methodology was utilized in this research, involving a total of 216 stakeholders from all 27 licensed MFBs. The study drew upon primary data obtained from a selected group of 140 stakeholders within the MFB industry in Kwara State, Nigeria, utilizing random and stratified sampling methods. The data analysis was conducted using descriptive and inferential statistics employing the Partial Least Square Structural Equation Modelling technique. The results of the study reveal that both detective and corrective controls have a significant positive effect on the financial reporting quality of MFBs in the area, while preventive controls do not exhibit a significant impact on financial reporting quality at a 5% level of significance. This study concludes that accounting controls, particularly corrective and detective controls, play a crucial role in enhancing the quality and reliability of financial reporting in microfinance banks, while the impact of preventive controls remains less significant, with insights into the implications of these findings and offers recommendations for improving financial reporting practices in MFBs. Microfinance institutions should continue to invest in robust corrective and detective controls to enhance their ability to detect and rectify errors and fraudulent activities in financial reporting processes. This investment should include regular reconciliation procedures, comprehensive audits, and the use of advanced fraud detection techniques.

AbstractThe widespread coronavirus (COVID-19) has sparked considerable worry among businesses worldwide, including Ghana. Despite a growing body of information on market and business reactions to the COVID-19 pandemic, there are few to no studies that have empirically examined the direct impact of COVID-19 on a firm’s financial reporting. The paper employed a panel regression model to examine COVID-19 impacts on a firm’s financial reporting delay over 3 years for 100 firms in Ghana comprising 30 listed firms and 70 private firms. The study’s empirical findings indicate COVID-19 and financial report delays have a positive and significant relationship. The study also established that the positive relationship is more pronounced for low-performing and private firms. The study recommended that a firm’s operational strategies be improved and well-coordinated during pandemics to avoid reporting and subsequent operational delays.

The current research aims to investigate the gender roles of accounting financial expertise (AFE) auditors for the accuracy of financial reporting. By utilizing four measures, namely two forms of real earnings management and two forms of discretionary accruals, we have developed a comprehensive index referred to as the Index of Financial Reporting Quality (IFRQ). Financial statistics were obtained from the annual COMPUSTAT database using Wharton Research Data Services (WRDS). Information related to audit services and accounting financial expertise was acquired from the ‘Institutional Shareholder Services’ (ISS) for the period spanning from 2003 to 2019. Possible endogeneity controlled through the Propensity Score Matching (PSM) technique, i.e. firm-level characteristics between gender diverse auditors and financial reporting quality. Moreover, Generalized Method of Moments (GMM) econometric technique was utilized in order to derive precise and reliable coefficient values. Most important and robust conclusion of the study is that the gender of the auditor matters greatly in impacting the quality of financial reporting. The findings of the present research suggest that the quality of financial reports is enhanced when women with accounting knowledge serve on the audit committee. This study highlights the significance of diversity, not only as a matter of ethical consideration, but also as a concrete advantage in the endeavor to enhance the quality of financial reporting.

This paper presents a dataset from a survey of the perception and experiences of owner-managers and accountants of SMEs concerning the ethical culture and financial reporting quality in their organisation. The dataset was collected from November 2022 to February 2023 using the convenience sampling method. A total of 181 valid responses from 218 responses were obtained during the data collection process. During instrument development, extensive pretesting was used to validate suitable questions for the respondents. The instrument was developed by adapting from prior studies and the inferences made from the qualitative survey prior to this study process. The survey was designed to elicit data from the owner-managers and accountants of SMEs concerning the relationship between the elements of ethical culture (i.e., formal systems, informal systems, leadership, and religiosity) and the financial reporting quality in SMEs. The dataset serves as an insightful reference for researchers, SME players, and policymakers to better understand the impending benefits of implementing ethical culture for improving the financial reporting quality among SMEs. In summary, the dataset, which was stored in a publicly available repository, can be conveniently used to quantify, and understand the organisational ethical culture in the context of SMEs.

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)