Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Corporate governance and the level of compliance with IFRS: Evidence from listed firms in a developing economy

Author(s): Solomon Awariya, Simon Akumbo Eugene Mbilla, Stanley Akamiri Abopaam

The purpose of this study was to examine the degree to which corporate governance mechanisms affect the level of compliance with IFRS in Ghana. Board characteristics, audit committee characteristics and ownership structures are use as proxy for corporate governance mechanisms. 26 companies listed on the Ghana stock market was sample for the study from 2008Q1 to 2017Q4. Ordinary Least Squares (OLS) estimation techniques were employed for the study. The study finds the level of compliance with IFRS to be about 100%. The study further reveals that, there is a positive significant relationship between the level of compliance with IFRS and board independence, government ownership and a negative relationship with CEO duality. The findings suggest that corporate governance mechanisms are capable of improving the level of compliance with IFRS in Ghana. It is thus recommended for policy makers to develop a framework that would ensure that firms pay more attention to their board dynamics so as to enhance the overall corporate reporting environment.

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