Abstract
This study examined the influence of corporate governance characteristics: size, women on board, financial skills of members, frequency of meetings and financial skills of the supervisory committee on compliance with International Financial Reporting Standards (IFRSs). The study was premised on Savings and Credit Co-operatives (SACCOs) complying with IFRSs disclosures. Yet, evidence on the relationship between corporate governance and IFRSs compliance in Tanzania is limited. Therefore, this paper contributes to the body of knowledge by extending the application of agency theory to determine the relationship among variables. Specifically, the study used a quantitative panel data set of 202 SACCOs from the 2013–2020 period collected from annual financial reports and subjected to descriptive analysis and regression models. Descriptive statistics indicate that SACCOs in Tanzania are complying with 44% of IFRSs disclosures. Results show a positive significant relationship between the board members possessing financial skills, the inclusion of women on the board, supervisory committee financial expertise and IFRS compliance level. Moreover, the study found no evidence that board size and board meetings influence IFRSs compliance levels. To improve IFRS compliance level, SACCOs in Tanzania are called to elect board members with financial skills; besides, financially skilled women should be encouraged to be part of SACCOs boards.
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Authors’ contributions
DAM developed the idea and carried out this study as a first author under the supervision of Dr. CSM and Dr. SN. All authors read and approved the final manuscript and agree to be accountable for all aspects of the work.
Disclosure statement
No relevant financial or non-financial competing interests to report.
Ethical clearance
The ethical clearance for this study was granted by the University of Dodoma (UDOM) ethical committee following postgraduate regulations of UDOM.
Data availability statement
The data set for this study will be available upon reasonable request.
Additional information
Funding
Notes on contributors
David A. Mwakapala
David A. Mwakapala is a lecturer at the University of Dodoma (UDOM), College of Business Studies and Economics. Currently, he is a Chief Internal Auditor at the University of Dodoma. He is a Certified Public Accountant (CPA), holder of an MBA in finance from the University of Dodoma. His broad research is in the area of accounts and finance.
Cosmas S. Mbogela
Cosmas S. Mbogela is a senior lecturer at Mzumbe University (MU), School of Business. He is a Certified Public Accountant (CPA), holder of a PhD in International Economics from the University of Hull, UK. He has published in local and internationally peer-reviewed journals in the areas of financial management and financial economics.
Sarah Ngomuo
Sarah Ngomuo is a lecturer at the University of Dodoma (UDOM), College of Business Studies and Economics. Ngomuo holds a PhD in Finance at Dong Bei University of Finance and Economics. Her published works in local and international peer-reviewed journals are in the areas of financial management and business management.