ENHANCING FINANCIAL REPORTING THROUGH CORPORATE GOVERNANCE: A CASE STUDY OF LIBERIA

Corporate governance is what drives accountability, transparency, and trust in financial reporting. Effective governance practices are in fact the essentials for improving economic stability and boosting investor confidence, especially in a country with an emerging financial sector like Liberia. This study examines the relationship between corporate governance mechanisms and the quality of financial reporting in the Liberian context, addressing three objectives, namely:) to evaluate Liberia’s corporate governance framework, focusing on its alignment with international standards and its impact on financial reporting quality; ii) to analyze the effectiveness of governance mechanisms, including board structures, audit committees, and regulatory oversight, in promoting transparency and accountability; iii) to provide actionable recommendations for strengthening governance practices and to enhance financial reporting and attract investment in Liberia. Using a correlational and causal-comparative approach, this study investigated the type and degree of correlations between a multifaceted definition of financial reporting quality (i.e., accuracy, transparency) and governance mechanisms (i.e., board independence, audit committees). Patterns in the quantitative and qualitative data were used to make causal inferences. The main methods for gathering data were surveys and interviews. Board members, regulators, and financial professionals were given structured questionnaires to complete in order to evaluate reporting quality and governance procedures. Regulatory authorities and business executives participated in semi-structured interviews to obtain comprehensive knowledge of governance issues and best practices. Key words: Financial reporting, corporate governance, Research analysis, return on assets, returns on equity, independent variables, dependent variables.