Corporate Governance Mechanisms and their impact on Financial Reporting Quality in India
DOI:
https://doi.org/10.29070/f7ajd997Keywords:
Corporate Governance, Financial Reporting Quality, Audit Committee, Board of Directors, Earnings Management, India, Transparency, SEBIAbstract
Corporate governance has emerged as a critical determinant of financial reporting quality, particularly in emerging economies like India. Effective governance mechanisms ensure transparency, accountability, and reliability in financial disclosures, thereby enhancing stakeholder confidence. This article examines the relationship between corporate governance structures—such as board composition, audit committees, ownership patterns, and regulatory frameworks—and financial reporting quality in India. Using a doctrinal and analytical approach based on secondary data, the study explores how governance mechanisms influence earnings management, disclosure practices, and compliance with accounting standards. The findings suggest that strong governance structures significantly improve financial reporting quality, though challenges such as regulatory enforcement gaps and board inefficiencies persist. The study concludes with recommendations for strengthening governance frameworks to ensure high-quality financial reporting in India.
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References
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