Adopting Strategic Management Practices for Better Financial Reporting Quality -An Empirical Approach

Current research aimed to shed the light on the adoption of strategic management practices and how it has the ability to increase quality of financial reporting. Aspects taken into consideration included (Strong CG, Integration with SP, Technology and Analytics, Transparency and Disclosure, Training and Capacity Building, Performance-Based Incentive Systems, Risk Management Integration). Primary data were collected through a quantitative questionnaire from the perspective of (207) financial managers within manufacturing and mining companies. SPSS was employed to screen and analyze collected primary data. Results accepted the main hypothesis as it appeared that strategic management practices are able to increase and support the quality of financial reports within manufacturing and mining companies. Among the chosen practices of strategic management, it was found that risk management integration scored the highest influence as analysis indicated a medium correlation coefficient of 0.841. The independent variable accounts for 70.8% of the observed variation in the dependent variable. Study recommended that business organizations need to create compensation systems which reward ethical conduct that supports enduring value growth. Organizations must establish incentive plans carefully in order to stimulate transparent financial disclosures while preventing unethical methods for achieving monetary targets.