THE ROLE OF CORPORATE GOVERNANCE ON THE INFORMATIVENESS OF THE DEVELOPING COUNTRIES FINANCIAL STATEMENTS
DOI:
https://doi.org/10.24193/subbnegotia.2026.1.03Keywords:
Corporate Governance, Financial statements, Informativeness, firm’s level, ZimbabweAbstract
Corporate governance analysis is vital for understanding corporate dynamics and boosting investor confidence. Its disclosure in financial statements enhances transparency, reduces information asymmetry, and lowers agency costs, thereby increasing firm value and profitability. In Zimbabwe, poor adherence to governance principles affects the informativeness of financial statements. This study explores firm-level governance indicators: board effectiveness, director liability, shareholder rights, transparency, and minority protection and their impact on financial reporting. Using interviews with top management, thematic analysis revealed that effective governance improves financial statement quality. The study recommends mandatory disclosure of governance aspects to foster investor trust, accountability, and company growth despite political and economic challenges.
JEL classification: G34; M41
Article History: Received: October 8, 2025; Reviewed: February 26, 2026;
Accepted: March 17, 2026; Available online: March 24, 2026.
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