Examination of the financial reporting quality: Case of companies listed on the Casablanca Stock Exchange

Abstract

  Given the intense rivalry between companies, most organizations must make appropriate and timely investments in order to protect and expand their activities (Yuan and Jiang, 2010). Therefore, financial reporting should provide the necessary information to investors, creditors and other current and potential stakeholders to make appropriate decisions. The analytical framework proposed by Stolowy and Breton (2003) for the management of accounting data is based on the assumption that the objective of the dissemination of financial information is to reduce the financing costs borne by companies.

               In this article, we study the extent of practices limiting the quality of financial reporting among non-financial companies listed on the BVC, using a battery of models proposed by the literature. We are also developing a multidimensional index to assess the quality of financial reporting, and apply it to all observations made with non-financial companies listed on the BVC from 2010 to 2019