The Role of Corporate Governance in Reducing the Adverse Impacts on the Reliability of Financial Statements Evidence from Saudi Listed Firms

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Alhanouf Alhasani
Alhanouf Alhasani
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Ibrahim Sweiti
Ibrahim Sweiti

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The Role of Corporate Governance in Reducing the Adverse Impacts on the Reliability of Financial Statements Evidence from Saudi Listed Firms Banner
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The study aims to measure the role of corporate governance in reducing the adverse effects of financial statements. Moreover, it focuses on answering the question: Does corporate governance have a positive role in providing reliable financial statements? Based on the statistical analysis and theoretical framework, the researcher reached several results, namely: There is no significant relationship between the following independent variables, and reducing the adverse effects of the reliability of the financial statements as a dependent variable: the size of the board of directors, board meetings, a separation between the chief executive officer and the chairman of the board, compliance with regulations and laws, company size, profitability, and sector type. Also, it was revealed that there was a positive relationship between the following independent variables and the reduction of the adverse effects on the reliability of the financial statements as a dependent variable: non-executive directors of the board, audit quality, and financial leverage.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Alhanouf Alhasani. 2026. \u201cThe Role of Corporate Governance in Reducing the Adverse Impacts on the Reliability of Financial Statements Evidence from Saudi Listed Firms\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 23 (GJMBR Volume 23 Issue D1): .

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Corporate governance, financial statements, risk management, Saudi Arabia.
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-D Classification: JEL Code: F65
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v1.2

Issue date

April 24, 2023

Language

English

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The study aims to measure the role of corporate governance in reducing the adverse effects of financial statements. Moreover, it focuses on answering the question: Does corporate governance have a positive role in providing reliable financial statements? Based on the statistical analysis and theoretical framework, the researcher reached several results, namely: There is no significant relationship between the following independent variables, and reducing the adverse effects of the reliability of the financial statements as a dependent variable: the size of the board of directors, board meetings, a separation between the chief executive officer and the chairman of the board, compliance with regulations and laws, company size, profitability, and sector type. Also, it was revealed that there was a positive relationship between the following independent variables and the reduction of the adverse effects on the reliability of the financial statements as a dependent variable: non-executive directors of the board, audit quality, and financial leverage.

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The Role of Corporate Governance in Reducing the Adverse Impacts on the Reliability of Financial Statements Evidence from Saudi Listed Firms

Alhanouf Alhasani
Alhanouf Alhasani
Ibrahim Sweiti
Ibrahim Sweiti

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