Author(s): Sanjay Pareek, Vivek Soni and Sana Maidullah
Corporate governance comprises the frameworks, principles, and procedures by which corporations are managed and regulated, safeguarding the interests of all stakeholders. For financial reporting to be accurate, transparent, and accountable, strong governance procedures are essential. This study examines the effects of governance factors on the accuracy and transparency of financial reports using an empirical analysis. These factors include board independence, audit committee efficacy, transparency, and CEO duality. To evaluate the suggested hypotheses, data was gathered from publicly traded Indian businesses and we used statistical and econometric techniques including structural equation modeling (SEM) and confirmatory factor analysis (CFA) to arrive at our results. The study sheds light on the important governance elements that raise the quality of financial reporting. Robust governance frameworks enhance transparency and foster investor confidence, both of which are crucial for the sustained development of financial markets. The findings indicate that firms with strong governance processes are more adept at fulfilling stakeholder expectations and reducing risks linked to financial misreporting. The study's findings are relevant to policymakers, who might utilize these insights to enhance policies that bolster governance norms.