Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 158

Article in Press

CORPORATE GOVERNANCE AND FINANCIAL REPORTING PRACTICES IN ETHIOPIA

Teferi Deyuu Alemi

  •  Received: 29 September 2020
  •  Accepted: 06 April 2021
This study examined and analyzed the corporate governance and financial reporting Practices in Ethiopia before and after adopting IFRS voluntarily at firm level. To achieve these objectives, data were collected from secondary sources which were annual reports of the firms. Sample of 40 companies have been selected from the total population of 120 corporate companies in Ethiopia using a stratified multistage sampling techniques. Various indices have been also employed. The study period covered a period of ten years ranging from 2004-05 to 2013-14. To analyze the data both descriptive (mean, frequency, standard deviation) and inferential statistics and statistical tests (independent- t test, One way ANOVA and Wilcoxon signed rank – test) were employed. The study revealed that corporates in Ethiopia has started to use IFRS in their financial reporting for the first time in 2002/03. The study revealed that the corporate governance reporting practices in Ethiopia have been at poorer level while the corporate financial reporting practices have been relatively at better position. The study also found that the influence of IFRS adoption on the corporate governance reporting practices of companies in Ethiopia were statistically insignificant, while its influence on financial reporting was significant.

Keywords: IFRS, Corporate Governance Reporting, Financial Reporting and Ethiopia.