SAJMS - South Asian Journal of Management Sciences

The Impact of Director's Training Program on Financial Reporting Quality in East

This research provides evidence as to how training programs for directors associate with improvements in the quality of financial reporting. Director Training Programs (DTPs) are held to enable directors to better comprehend the specific context in which the business operates in, which includes: company-operations, environment, business norms, values and standards of probity, accountability, and a directors' fiduciary duties as agents of the investors. In particular, this study explores the recent stipulation of director training, and its potency on the financial-reporting quality of the companies publicly traded on the stock-market. For the purpose, data for listed firms from the countries of Australia, Malaysia, and Pakistan was taken. It was found that Australian companies with higher DTP spending and flexible development schedules (Online DTP) had an overall improved quality of financial reporting. Moreover, a well developed DTP is noted to relate positively with the overall financial-reporting quality in Malaysia. The results further indicate that, in all the three nations, firm-size negatively impacts the financial-reporting quality. However, older companies (firm-age), in the Asian economies, are accounted to have a comparatively overall lower quality of financial reporting.

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