Organizational Culture, Accountants' Competence, and Quality of Financial Reporting Among Commercial Banks in Uganda
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Date
2024-10
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Makerere University Business School
Abstract
The study examined the relationship between organizational culture, accountants’ competences,
and quality of financial reporting in commercial banks in Uganda. The specific objectives of the
study were; to assess the relationship between organizational culture and quality of financial
reporting in commercial banks in Uganda, the relationship between accountants’ competences
and quality of financial reporting in commercial banks in Uganda, the relationship between
organizational culture and accountants’ competences in commercial banks in Uganda and the
mediating role of accountants’ competences in the relationship between organizational culture
and quality of financial reporting in commercial banks in Uganda.
The study considered a correlation research design considering a quantitative research approach.
It targeted 150 participants but 114 managed to respond back. Data was collected using a
questionnaire.
The study revealed that there was a moderate, positive, and significant relationship between
organizational culture and financial reporting in commercial banks (r = .455**, p < 0.01) and the
analysis revealed that organizational culture had a significant and positive effect on quality of
financial reporting, with (Beta value = .217, p = .022 < 0.05). It was also revealed that there was
moderate, positive and significant relationship between accountants’ competences and quality
financial reporting in commercial banks (r = .545**, p < 0.01) and it was also revealed that
accountants’ competences had a significant and positive effect on quality of financial reporting
with (Beta value = .423, p = .000 < 0.05). The study results also indicated a moderate, positive
and significant correlation between organizational culture and the quality financial reporting in
commercial banks (r = .561**p < 0.01). The results indicated that Organizational Culture and
Accountants’ Competencies together accounted for 31.8% of the variance in the quality of
financial reporting. Results showed that accountants' competencies serve as a key mediator in the
relationship between organizational culture and the quality of financial reporting in commercial
banks. The Sobel test confirmed a significant mediation effect, with a notable z-value of
3.83352698 and a p-value below 0.05. The analysis revealed full mediation, as the direct effect
became insignificant (c′ = -0.0203) once the mediator (accountants' competencies) was included
in the model.
It was recommended that commercial banks prioritize the involvement of staff members at all
levels of the decision-making process to enhance organizational effectiveness and foster a more
inclusive work environment. It was also recommended that commercial banks need to invest in
comprehensive training and continuous professional development programs for their accountants
to address the identified gaps in software proficiency, data accuracy, and financial analysis.
Lastly, it was recommended that future reports provide detailed feedback on how various market
events and significant transactions have impacted the bank's performance.
Description
This is a research master thesis.
Keywords
Citation
Alex ,A.(2024). Organizational Culture, Accountants' Competence, and Quality of Financial Reporting Among Commercial Banks in Uganda.