<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Business entities operated in the form of capital companies, to maintain reliability and transparency of the activities conducted, should observe general supervisory framework of legal nature. The primary objective of the information policy is to provide stock market participants with appropriate standards of company transparency which through the corporate governance regulations should lead to the improvement in the quality of financial reporting. Financial statements should be reliable as it is only then that their aims and targets are met, and the image of business they depict should be created according to the <italic>true and fair</italic> principle, invoking the responsibility of individuals supervising the process of drawing up a financial statement. The aim of the paper is to indicate the essence of the relationship between the quality of financial statements and the application of corporate governance principles. The paper uses the analysis of regulations and review of literature in the field of corporate governance and reporting of listed companies. The results of the analysis confirm that the quality of reported information determines the effectiveness of corporate supervision; that integrated reporting (IR) is a tool enabling organizations to communicate their value to investors; and that corporate supervision allows said organizations to adopt the comprehensive approach in developing sustainable value.</p></abstract>

Business entities operated in the form of capital companies, to maintain reliability and transparency of the activities conducted, should observe general supervisory framework of legal nature. The primary objective of the information policy is to provide stock market participants with appropriate standards of company transparency which through the corporate governance regulations should lead to the improvement in the quality of financial reporting. Financial statements should be reliable as it is only then that their aims and targets are met, and the image of business they depict should be created according to the true and fair principle, invoking the responsibility of individuals supervising the process of drawing up a financial statement. The aim of the paper is to indicate the essence of the relationship between the quality of financial statements and the application of corporate governance principles. The paper uses the analysis of regulations and review of literature in the field of corporate governance and reporting of listed companies. The results of the analysis confirm that the quality of reported information determines the effectiveness of corporate supervision; that integrated reporting (IR) is a tool enabling organizations to communicate their value to investors; and that corporate supervision allows said organizations to adopt the comprehensive approach in developing sustainable value.

The relations between the quality of financial statements and corporate governance

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Business entities operated in the form of capital companies, to maintain reliability and transparency of the activities conducted, should observe general...

The relations between the quality of financial statements and corporate governance

Article Category: Review

Online veröffentlicht: 30. Juni 2019

Seitenbereich: 118 - 126

Eingereicht: 24. Mai 2018

Akzeptiert: 13. März 2019

DOI: https://doi.org/10.2478/ijme-2019-0009

Schlüsselwörter
corporate governance, information function of accounting, integrated report

© 2019 Iwona Franczak, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The relations between the quality of financial statements and corporate governance

Article Category: Review

Online veröffentlicht: 30. Juni 2019

Seitenbereich: 118 - 126

Eingereicht: 24. Mai 2018

Akzeptiert: 13. März 2019

DOI: https://doi.org/10.2478/ijme-2019-0009

Schlüsselwörtercorporate governance, information function of accounting, integrated report

© 2019 Iwona Franczak, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Schlüsselwörter
corporate governance, information function of accounting, integrated report