THE ROLE OF OWNERSHIP STRUCTURE, BOARD CHARACTERISTICS, AND AUDIT QUALITY ON FINANCIAL REPORTING QUALITY

Abstract

The quality of financial reporting is critical for organizational success and demands researchers' attention. The current study examines the influence of ownership structure, board characteristics, and audit quality on the financial reporting quality of commercial banks in Iraq. This study investigates the moderating effect of stakeholder pressure on the relationship between ownership structure, board characteristics, audit quality, and financial reporting quality. The primary data for this study was collected through surveys conducted with commercial banks in Iraq. The study employed smart-PLS to examine the relationship between variables. The results suggest a positive relationship between ownership structure, board characteristics, audit quality, and financial reporting quality. The study results indicate that stakeholder pressure has a significant moderating effect on ownership structure, board characteristics, audit quality, and financial reporting quality. The study guides regulators in developing regulations to enhance the quality of financial reporting through effective ownership structure, prominent board characteristics, and high audit quality.