أثر تطبيق معيار حوكمة الشركات الإفصاح والشفافية على جودة المعلومات المحاسبية

The Effect of Applying Corporate Governance Disclosure and Transparency Standards on The Quality of Accounting Information

Abstract

In light of the crises the world has experienced over the past two decades, international bodies have sought to establish rules that regulate standards of monitoring and supervision in commercial banks, since the banking sector represents the backbone of economic life. Accordingly, corporate governance, in its renewed model over the last decade, has introduced greater transparency in management, regulated the relationships among the parties within a company, and enhanced confidence in the information contained in the reports issued by these companies, thereby achieving a higher level of report quality. The problem addressed in this study concerns the impact of applying the corporate governance standard of disclosure and transparency on the performance of Libyan commercial banks. The study aims to examine the extent to which the application of this standard affects the quality of accounting information in Libyan commercial banks. To achieve the objectives of the study, a questionnaire was used as a tool for data collection. To measure the impact of applying corporate governance standards—specifically disclosure and transparency—on the quality of accounting information, this standard, drawn from the principles of the Organisation for Economic Co-operation and Development (OECD), was used as the independent variable, namely disclosure and transparency, to assess its effect on the dependent variable, which is the quality of accounting information in banks. The study sample included members of boards of directors, non-executive members, internal auditors, accountants, and heads of departments in several branches of Libyan commercial banks. The descriptive method was used for analysis through the SPSS program. The results of the study indicate that there is a positive impact of this governance standard on the quality of accounting information in Libyan commercial banks. However, this impact was found to be weak in terms of disclosure and transparency affecting the quality of accounting information, contrary to previous studies. When compared with earlier research, it was observed that the environment in which Libyan banks operate differs from those in other studies, as Libyan banks face several environmental, economic, political, and security-related challenges. The study also offered several recommendations, among which are the need for the central bank to ensure that banks implement the governance guidelines issued by the Central Bank of Libya, that banks should have a governance principles manual and a committee responsible for ensuring compliance with these principles, and that the central bank should ensure the application of the principle of public disclosure and transparency regarding financial and non-financial reports and information.