Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks

Sitota Getachew

doi:doi:10.11648/j.ijsts.20211002.16

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Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks

Sitota Getachew

Published in International Journal of Science, Technology and Society (Volume 9, Issue 2)

Received: 5 March 2020 Accepted: 17 February 2021 Published: 26 March 2021

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Abstract

The main purpose of this study was to assess financial reporting qualities of commercial banks of Ethiopia that incorporated both private and public sectors (17 commercial banks). Mixed research approach was used and quantitative (using questionnaires) and qualitative data (using interview) data’s were taken by using purposive and judgmental sampling design respectively. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part and semi-structured interview guide for the qualitative were used as data collection tools. SPSS version 20 for windows was employed to perform statistical analysis and findings were displayed using tables and pie-charts. In order to investigate the findings, the study tried to assess the qualities of those targeted banks financial report depending on fundamental (relevance and faithfulness) and enhancing (understandability, comparability and timeliness) qualitative characteristics of accounting information. Accordingly, survey results showed that the qualities of financial report of privates sector banks is relatively moderate than the public sectors banks. Recognizing the weakness of both sector banks financial report qualities, the researcher would like to recommend that it’s better if private and public sector banks of Ethiopia shall recognize the above mentioned characteristics of accounting information system for improving their qualities of financial report.

Published in	International Journal of Science, Technology and Society (Volume 9, Issue 2)
DOI	10.11648/j.ijsts.20211002.16
Page(s)	87-97
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Comparability, Faithfulness, Relevance, Understandability, Timeliness

References

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[2]	FASB (2008). Financial Accounting Series, Statement of Financial Accounting Standards No. 1570-100: Exposure Draft on an Improved Conceptual Framework for Financial Reporting. Norwalk.
[3]	Heidi Vander Bauwhede. (2001). What Factors Influence Financial Statement Quality: Framework Some empirical Evidence. Holland, J. (1999). Financial Reporting, Private Disclosure and the Corporate.
[4]	IASB (2008). Exposure Draft on an improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information. London.
[5]	Iu, J. & Clowes, C. (2004). Evaluating a measure of content quality for accounting narratives (with an empirical application to narratives from Australia, Hong Kong, and the United States). Working paper series.
[6]	Jonas, G. & Blanchet, J. (2000). Assessing Quality of Financial Reporting. Accounting Horizons, 14(3), 353-363, 12(1), 1911-2025.
[7]	Kenneth E. O. (2012). Adoption of IFRS and financial statements effects: The Perceived Implications on FDI and Nigeria Economy. Australian Journal of Business and Management.
[8]	Kirubel Asegdew. (2016). Determinants of Financial Reporting Quality: Evidence from Large Manufacturing Share Companies of Addis Ababa. MSc Thesis Presented to the School of Graduate Studies of Addia Ababa University. 4p.
[9]	Melese Hailemariam (2016). The adoption, challenges and perception of international financial reporting standards (IFRS) on the quality of financial reporting of financial institution in Addis Ababa, Ethiopia. MSc Thesis Presented to the School of Graduate Studies of Addis Abeba University. 16p.
[10]	Mekonnen Aboneh (2011). Financial Reporting Quality in Privately owned companies: The Impact of private ownership on quality of accounting reports (Addis Ababa- Ethiopia). MSc Thesis Presented to the School of Graduate Studies of Addis Abeba University. 16p.
[11]	NiCE (Nijmegen Center for Economics) Working Paper (2009). Quality of Financial Reporting: measuring qualitative characteristics. Institute for Management Research Radboud University Nijmegen.
[12]	[12] Beest, F., Braam, G., & Boelenns, S. (2009). Qualities of Financial Report: Measuring Qualitative Characteristics. NICE.
[13]	Abernathy, J. L. 92010). Three Essay on Audit Committees and Financial Reporting Qualities, Audit Committee Financial Expertise. (Order No.3439793).
[14]	Downen, T. (March 1, 2014). Defining and Measuring Financial Reporting Precision. Journal of Theoretical Accounting Research, Vol. 9, No. 2, pp 21-67(2014).
[15]	Gajevszky, A. (2015). Assessing Financial Reporting Qualities: From Romania. Audit Financial, (1583-5812;)

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Sitota Getachew. (2021). Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks. International Journal of Science, Technology and Society, 9(2), 87-97. https://doi.org/10.11648/j.ijsts.20211002.16

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Sitota Getachew. Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks. Int. J. Sci. Technol. Soc. 2021, 9(2), 87-97. doi: 10.11648/j.ijsts.20211002.16

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AMA Style

Sitota Getachew. Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks. Int J Sci Technol Soc. 2021;9(2):87-97. doi: 10.11648/j.ijsts.20211002.16

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@article{10.11648/j.ijsts.20211002.16,
  author = {Sitota Getachew},
  title = {Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks},
  journal = {International Journal of Science, Technology and Society},
  volume = {9},
  number = {2},
  pages = {87-97},
  doi = {10.11648/j.ijsts.20211002.16},
  url = {https://doi.org/10.11648/j.ijsts.20211002.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsts.20211002.16},
  abstract = {The main purpose of this study was to assess financial reporting qualities of commercial banks of Ethiopia that incorporated both private and public sectors (17 commercial banks). Mixed research approach was used and quantitative (using questionnaires) and qualitative data (using interview) data’s were taken by using purposive and judgmental sampling design respectively. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part and semi-structured interview guide for the qualitative were used as data collection tools. SPSS version 20 for windows was employed to perform statistical analysis and findings were displayed using tables and pie-charts. In order to investigate the findings, the study tried to assess the qualities of those targeted banks financial report depending on fundamental (relevance and faithfulness) and enhancing (understandability, comparability and timeliness) qualitative characteristics of accounting information. Accordingly, survey results showed that the qualities of financial report of privates sector banks is relatively moderate than the public sectors banks. Recognizing the weakness of both sector banks financial report qualities, the researcher would like to recommend that it’s better if private and public sector banks of Ethiopia shall recognize the above mentioned characteristics of accounting information system for improving their qualities of financial report.},
 year = {2021}
}

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TY  - JOUR
T1  - Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks
AU  - Sitota Getachew
Y1  - 2021/03/26
PY  - 2021
N1  - https://doi.org/10.11648/j.ijsts.20211002.16
DO  - 10.11648/j.ijsts.20211002.16
T2  - International Journal of Science, Technology and Society
JF  - International Journal of Science, Technology and Society
JO  - International Journal of Science, Technology and Society
SP  - 87
EP  - 97
PB  - Science Publishing Group
SN  - 2330-7420
UR  - https://doi.org/10.11648/j.ijsts.20211002.16
AB  - The main purpose of this study was to assess financial reporting qualities of commercial banks of Ethiopia that incorporated both private and public sectors (17 commercial banks). Mixed research approach was used and quantitative (using questionnaires) and qualitative data (using interview) data’s were taken by using purposive and judgmental sampling design respectively. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part and semi-structured interview guide for the qualitative were used as data collection tools. SPSS version 20 for windows was employed to perform statistical analysis and findings were displayed using tables and pie-charts. In order to investigate the findings, the study tried to assess the qualities of those targeted banks financial report depending on fundamental (relevance and faithfulness) and enhancing (understandability, comparability and timeliness) qualitative characteristics of accounting information. Accordingly, survey results showed that the qualities of financial report of privates sector banks is relatively moderate than the public sectors banks. Recognizing the weakness of both sector banks financial report qualities, the researcher would like to recommend that it’s better if private and public sector banks of Ethiopia shall recognize the above mentioned characteristics of accounting information system for improving their qualities of financial report.
VL  - 9
IS  - 2
ER  -

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Author Information

Sitota Getachew

Accounting and Finance Department, Injibara University, Injibara, Ethiopia

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Plain Text BibTeX RIS

APA Style

Sitota Getachew. (2021). Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks. International Journal of Science, Technology and Society, 9(2), 87-97. https://doi.org/10.11648/j.ijsts.20211002.16

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ACS Style

Sitota Getachew. Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks. Int. J. Sci. Technol. Soc. 2021, 9(2), 87-97. doi: 10.11648/j.ijsts.20211002.16

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AMA Style

Sitota Getachew. Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks. Int J Sci Technol Soc. 2021;9(2):87-97. doi: 10.11648/j.ijsts.20211002.16

Copy | Download

@article{10.11648/j.ijsts.20211002.16,
  author = {Sitota Getachew},
  title = {Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks},
  journal = {International Journal of Science, Technology and Society},
  volume = {9},
  number = {2},
  pages = {87-97},
  doi = {10.11648/j.ijsts.20211002.16},
  url = {https://doi.org/10.11648/j.ijsts.20211002.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsts.20211002.16},
  abstract = {The main purpose of this study was to assess financial reporting qualities of commercial banks of Ethiopia that incorporated both private and public sectors (17 commercial banks). Mixed research approach was used and quantitative (using questionnaires) and qualitative data (using interview) data’s were taken by using purposive and judgmental sampling design respectively. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part and semi-structured interview guide for the qualitative were used as data collection tools. SPSS version 20 for windows was employed to perform statistical analysis and findings were displayed using tables and pie-charts. In order to investigate the findings, the study tried to assess the qualities of those targeted banks financial report depending on fundamental (relevance and faithfulness) and enhancing (understandability, comparability and timeliness) qualitative characteristics of accounting information. Accordingly, survey results showed that the qualities of financial report of privates sector banks is relatively moderate than the public sectors banks. Recognizing the weakness of both sector banks financial report qualities, the researcher would like to recommend that it’s better if private and public sector banks of Ethiopia shall recognize the above mentioned characteristics of accounting information system for improving their qualities of financial report.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Assessment of Financial Reporting Qualities of Ethiopian Commercial Banks: A Comparative Study on Private and Public Banks
AU  - Sitota Getachew
Y1  - 2021/03/26
PY  - 2021
N1  - https://doi.org/10.11648/j.ijsts.20211002.16
DO  - 10.11648/j.ijsts.20211002.16
T2  - International Journal of Science, Technology and Society
JF  - International Journal of Science, Technology and Society
JO  - International Journal of Science, Technology and Society
SP  - 87
EP  - 97
PB  - Science Publishing Group
SN  - 2330-7420
UR  - https://doi.org/10.11648/j.ijsts.20211002.16
AB  - The main purpose of this study was to assess financial reporting qualities of commercial banks of Ethiopia that incorporated both private and public sectors (17 commercial banks). Mixed research approach was used and quantitative (using questionnaires) and qualitative data (using interview) data’s were taken by using purposive and judgmental sampling design respectively. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part and semi-structured interview guide for the qualitative were used as data collection tools. SPSS version 20 for windows was employed to perform statistical analysis and findings were displayed using tables and pie-charts. In order to investigate the findings, the study tried to assess the qualities of those targeted banks financial report depending on fundamental (relevance and faithfulness) and enhancing (understandability, comparability and timeliness) qualitative characteristics of accounting information. Accordingly, survey results showed that the qualities of financial report of privates sector banks is relatively moderate than the public sectors banks. Recognizing the weakness of both sector banks financial report qualities, the researcher would like to recommend that it’s better if private and public sector banks of Ethiopia shall recognize the above mentioned characteristics of accounting information system for improving their qualities of financial report.
VL  - 9
IS  - 2
ER  -

Copy | Download