Accounting Ethics and Quality of Financial Reporting: What a Malaise in Public Limited Companies in Cameroon?

Abstract

The rising occurrence of bankruptcy and fraud among companies has raised serious concerns about the integrity of financial reporting. This study investigates the influence of accounting ethics on the quality of financial reporting in public limited companies (PLCs) in Cameroon. Using a quantitative research approach, data were collected from 65 PLCs across three regions of Cameroon through purposive sampling. Structured questionnaires with a 5-point Likert scale were distributed, and all 65 returned questionnaires were included in the analysis. The data were analysed using ordinary least squares regression methods. The results indicate that while objectivity and integrity are positively linked to the quality of financial reporting, professional competence and due care have no significant effect on it. These findings are consistent across various models and measures of financial reporting, emphasizing the importance of accounting ethics as a crucial tool for ensuring reporting quality. Based on these results, it is recommended that regulatory bodies implement comprehensive ethics training programs for accounting professionals at all organizational levels to enhance the reliability and transparency of financial reports.