THE MEDIATING ROLE OF IFRS AMONGST CG AND QUALITY OF REPORTING

Abstract

The present study examines the influence of corporate governance on the quality of financial reporting within Jordanian commercial banks, with particular attention to the adoption of international financial reporting standards (IFRS). Data were collected through 269 survey responses obtained from these banks. The mediating effects of each factor were assessed using the Sobel method. Results indicate that, in the context of commercial banks, the adoption of IFRS positively moderates the relationship between corporate governance and financial reporting quality. The study highlights the practical benefits of implementing IFRS alongside robust corporate governance, including enhanced institutional reputation, improved reporting accuracy, superior decision-making, and compliance with regulatory requirements. By refining their governance structures and accounting practices, Jordanian commercial banks can leverage these findings to enhance both their institutional image and financial performance. This research contributes significantly to the academic literature by providing novel insights into the beneficial impact of corporate governance on the quality of financial disclosure, while accounting for the mediating role of IFRS adoption.