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Vol.9 No.1

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Determinants of Quality of Financial Information: Empirical Evidence from Cement Sector of Bangladesh

Asian Journal of Business Environment / Asian Journal of Business Environment, (P)2765-6934; (E)2765-7027
2019, v.9 no.1, pp.13-20
Musfiqur Rahman (University of Dhaka)
Mehedi Hasan (University of Dhaka)
Musfiqur, R. , & Mehedi, H. (2019). Determinants of Quality of Financial Information: Empirical Evidence from Cement Sector of Bangladesh. Asian Journal of Business Environment, 9(1), 13-20.

Abstract

Purpose - The purpose of this paper is to find out the determinants of the quality of financial information in the financial environment of the cement companies of Bangladesh. Research design, data and methodology - This study considers a total of fifty-eight firm years as the sample from the seven listed cement companies of Bangladesh during the period of 2007 to 2015. This study applies the multivariate regression analysis including the pooled OLS, panel and controlling time. Results - This study finds that profitability and external financing are the two major explanatory variables in determining the quality of financial information. This study also finds that firm size and accrual quality don’t have any significant influence on quality of financial information. Conclusion - This study observed that profitability of this sector which is much volatile and prone to be manipulated. Thus, this paper suggests that higher profitability needs more scrutiny while assessing quality of financial information. Finally, this study provides some indications for future research such as considering the listed firms of other sectors of Bangladesh or cross country comparison in different country setting.

keywords
Quality, Financial Information, Profitability, Leverage, Manipulation.

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