The Impact of Qualitative Characteristics of Financial Reporting in Corporate Governance Empirical Study on Sudan Based Companies Case Study of Sudan Telecommunications Company Ltd (Sudatel

Abstract

The thesis addresses Impact of Qualitative Characteristics of Financial Reporting (QCFR) in Corporate Governance (CG); Empirical Study on Sudan Based Companies; Case Study of CoSudan Telecommunications mpany Ltd (Sudatel). The problem of the thesis is that the majority of past research dealt with general framework of the corporate governance rather than considering principals’ factors that effect this framework, so the problem is how to find a mechanism for CG based on QCFR that lead to rational decision. The main objective is building of scientific module for the relation between QCFR & CG. In line with sited objectives and problem for this thesis, the main hypothesis is there is a significant relation between QCFR & CG. The thesis takes the descriptive methodology in theoretical part by explaining the main concepts and in case study take analytical methodology. The scope in the theoretical part restricted on general concepts of financial reporting and its development and qualitative characteristics also mentioned the agency theory as introductory to CG: its concepts, historical development in some countries, while in case study part restricted to 15 financial reporting of Sudatel for the period from financial year 1994 up to 2008. Data collects from financial reporting and process the qualitative one by using scoring model (Rasch model) and then analyze by using EViews 5.This thesis has sought to contribute reached by many findings the most important one is: The study displayed that there is very strong positive correlation between GC and the reliability as one of the high quality financial reporting while (R=0.88) and the same strong positive correlation with other characteristics (relevant, comparability and understandability). In general the main finding is the thesis showed that the General Accepted Accounting Practice (GAAP) which followed by Sudatel positively affect the QFR and will affect the CG correlation the thesis noticed many recommendations the most important one is: Sudatel as a case study needed to keep the strength of the QCFR that give the strong positive correlation with good corporate governance and keep this strength in line with the development in IAS and CG. Also Sudatel board structure requested to consider the principles of the CG despite of the capital structure.