Yosra MNIF SELLAMI

Аннотация

INTRODUCTION mechanisms, procedures, and laws, known as In the context of economic changes and governance, has emerged to guarantee developments, the role of governance has discipline in preparing financial reports. become increasingly crucial. The suitability of financial reports in their current form and the The need for governance appeared in many rules on which they are prepared to satisfy the economic establishments, whether advanced or desire of the beneficiaries of those reports, on modest, after the financial and economic crisis, the one hand, and the quality and trust that especially the collapse of the American dealers attach to those reports, on the other economy in 2002. The importance of hand, have been significantly influenced by governance increased due to the countries of governance. Therefore, it has become necessary the world's trend towards the capitalist system, to standardize the regulatory frameworks that where they rely on private companies to govern the work of companies and financial achieve growth. The widening separation of institutions in various markets to give ownership from management to obtain sources confidence to accounting outputs. This set of of financing that are less expensive than https://www.theamericanjournals.com/index.php/tajmei 14 THE USA JOURNALS THE AMERICAN JOURNAL OF MANAGEMENT AND ECONOMICS INNOVATIONS (ISSN- 2693-0811) VOLUME 06 ISSUE03 banking sources has led to a weakening of the century, as a result of what the global economy mechanisms for monitoring the work of witnessed. From the financial and accounting managers, and the poor quality of information repercussions and collapses of a number of leads to the prevention of supervision and international companies, such as those that control and works to spread corruption and lack occurred in Southeast Asia, the Enron scandal, of trust. Following sound corporate governance and the subsequent collapse of Arthur- principles creates the necessary precautions Anderson, one of the five largest auditing firms against corruption and mismanagement while in the world. encouraging transparency in economic life and In conclusion, this study holds significant combating institutional resistance to reform. implications for the field as it aimed to Sustainable development is considered one of investigate the relationship between good the most critical administrative issues for governance and the quality of financial reports. institutions that want to have a future in the The findings, which suggest a positive twenty-first century, where good social and correlation between good governance and environmental performance represents a financial report quality, underscore good significant factor for the success of institutions, governance's crucial role in ensuring financial as the focus is no longer on profitability to reports' accuracy and reliability. This, in turn, measure the success of institutions. Still, enhances the trust of stakeholders in the instead, other non-financial indicators must be financial information companies provide, taken into account for disclosure. It is reported thereby contributing to the overall in the financial statements of shareholders and transparency and credibility of the financial consumers to emphasize transparency and sector. information and the extent of the institution's Literature Review ability to achieve sustainable development by focusing on the economic, environmental, and The literature on governance has witnessed a social aspects. All of this is accomplished using significant surge, particularly after the crisis of governance mechanisms that work to gain confidence in some of the largest companies. responsibility, transparency, justice, and This surge was prompted by the realization that disclosure of high-quality, comprehensive, and governance, with its mechanisms and transparent financial reports that can be built. It characteristics, can effectively prevent and is necessary to make sound strategic decisions. reduce profit management operations, thereby (Cooray, 2020). enhancing the quality of financial reports. Almaqtari et al., 2018, in their study The Impact Good governance has become a significant of Corporate Governance Mechanisms on the condition for achieving sustainable Quality of Financial Reporting: Evidence from development and improving living standards in India,' and Bako, 2018, in his focus on the all its dimensions. It creates the necessary Nigerian chemical industry, both underscored political, legal, economic, and social conditions the profound impact of corporate governance to eradicate poverty, create job opportunities, mechanisms on actual profit management protect the environment, and advance women. practices. It is based on applying the concepts of transparency, legal accountability and The study (Almaqtar, 2020) indicated the credibility to the existence of effective, efficient impact of corporate governance mechanisms on and responsive public institutions.