Exploring the factors that mediate the relationship between accounting ethics and financial reporting quality among MSMEs

Authors

  • Ibrahim Anyass Ahmed University of Education, Winneba, Ghana
  • Prince Dacosta Anaman University of Ghana, Accra, Ghana
  • Mawuena Akosua Cudjoe University of Ghana, Accra, Ghana
  • Benjamin Akyen University of Education, Winneba, Ghana
  • Christian Donkor University of Education, Winneba, Ghana

DOI:

https://doi.org/10.14414/tiar.v14i2.4711

Keywords:

Accounting ethics, Financial reporting quality, Ethical leadership, MSMEs, Developing country

Abstract

This study aims to investigate the impact of accounting ethics on the quality of financial reporting of MSMEs in Ghana, a sector vital to economic stability. Given the critical role of MSMEs in the Ghanaian economy, there is an urgent need to establish ethical financial practices that promote transparency and sustainability in the sector.Using Stakeholder Theory, thisstudy specifically examines how variables of ethical leadership, employee motivation, training and education, regulatory environment, technology solutions, and internal controls affect this relationship.Data were collected from 368 participants in 100 MSMEs from the Central Region of Ghana using a quantitative approach and a standardized questionnaire based on a five-point Likert scale. The main analytical tool for data analysis is Structural Equation Modeling (SEM) with SMART PLS 4. The results of this study indicate that accounting ethics has a significant effect on the quality of financial reporting of MSMEs in Ghana. Ethical leadership, training and education, and employee motivation significantly mediate the relationship between accounting ethics and financial reporting quality of MSMEs in Ghana.Meanwhile, internal control, technology solutions, and regulatory environment do not significantly mediate the relationship between accounting ethics and financial reporting quality of MSMEs in Ghana. This study offers useful insights into the significance of accounting ethics in improving the integrity of financial reporting of MSMEs in Ghana.

Author Biographies

Ibrahim Anyass Ahmed, University of Education, Winneba, Ghana

Ibrahim Anyass Ahmed is a lecturer in the accounting department of the University of Education
Winneba. He holds a bachelor’s and master’s degree in accounting from the University of
Ghana Legon. Currently, he is a PhD student at the University of South Africa. His research
interests focus on sustainability disclosure, corporate governance, and public financial
management.
Author’s contact details: School of Business, University of Education Winneba- Ghana;
ianyass@uew.edu.gh

Prince Dacosta Anaman, University of Ghana, Accra, Ghana

Prince Dacosta Anaman is a lecturer in the School of Business at Perez University College,
Winneba and Accra campuses, Ghana. He holds a Master of Philosophy in Accounting from the
University of Ghana and a Bachelor of Science in Accounting Education from the University of
Education, Winneba. His professional experience spans academia and practical applications in
accounting, where he has worked as a tutor, lecturer, and financial administrator. His research
interests include financial literacy, tax compliance, corporate governance, and the impact of
ESG reporting on financial performance. Prince has published in various academic journals and
presented papers at international conferences, focusing on sustainable business practices and
financial management in Sub-Saharan Africa.
Author’s contact details: School of Business, Perez University College, Ghana;
+233249700137; dacostaanaman057@gmail.com

Mawuena Akosua Cudjoe, University of Ghana, Accra, Ghana

Dr. Mawuena Akosua Cudjoe is a Lecturer at the University of Ghana Business School, Ghana.
She holds a PhD in Accounting from Putra Business School, Universiti Putra Malaysia, and an
MPhil (Accounting) and Bachelor's in Administration (Accounting) from the University of Ghana.
Her research interests encompass Sustainability, Governance, Carbon and Climate Accounting
and Finance, and Accounting Information Quality. Dr. Cudjoe has published articles in peer-
reviewed journals including the Journal of Accounting and Finance, Cogent Business &
Management, and the African Journal of Accounting, Auditing and Finance. As part of her
academic service, Dr. Cudjoe serves as a reviewer for several international peer-reviewed
journals.
Author's contact details: Faculty- University of Ghana (Business School), Legon, Accra Ghana;
macudjoe@ug.edu.gh

Benjamin Akyen, University of Education, Winneba, Ghana

Akyen Benjamin is a graduate teaching assistant in the Department of Accounting at the School
of Business of the University of Education, Winneba, Ghana. He was conferred on the degree
Bachelor of Business Administration (2022) in Accounting from the same institution and
currently pursuing a Master of Philosophy in Accounting Programme at the University of

Education, Winneba. His current research dwells and touches on financial reporting, taxation,
public sector management and entrepreneurship which are the core roots within an economy.
He has published an article which addresses the growth of SMEs in relation to proper financial
management practices with others under review in other journals.
Author's contact details: School of Business; University of Education, Winneba; P. O. Box KB 25
- Winneba(C/R), Ghana; +233554353957; benjaminakyen6@gmail.com

Christian Donkor, University of Education, Winneba, Ghana

Christian Donkor is a researcher and graduate student in the Department of Accounting at the
University of Education, Winneba, Ghana. He earned a Bachelor of Business Administration in
Accounting (2018-2022) from the University of Education, Winneba. He is currently pursuing a
Master of Philosophy in Accounting at the same institution. His research focuses on Corporate
Social Responsibility, financial reporting quality, and sustainability accounting.
Author's contact details: School of Business, University of Education, Winneba, Ghana;
+2330540423128; ideas4christian@gmail.com

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Submitted

2024-08-21

Published

2025-08-08

How to Cite

Exploring the factors that mediate the relationship between accounting ethics and financial reporting quality among MSMEs. (2025). The Indonesian Accounting Review, 14(2), 253-271. https://doi.org/10.14414/tiar.v14i2.4711

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Vol. 14 No. 2 (2024): July - December 2024

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Articles

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How to Cite

Exploring the factors that mediate the relationship between accounting ethics and financial reporting quality among MSMEs. (2025). The Indonesian Accounting Review, 14(2), 253-271. https://doi.org/10.14414/tiar.v14i2.4711