Mastering Corporate Integrity: The Dynamic Relationship Between Board Independence and Financial Quality

Abstract

The quality of financial reporting is increasingly scrutinized in the context of corporate governance, particularly with respect to board independence. This study explores the relation among board independence and financial reporting quality, an area of growing interest as stakeholders demands greater transparency in corporate financial practices. Board independence is hypothesized to increase the quality of financial reporting by mitigating conflicts of interest and increasing accountability. This research employs a bibliometric approach to review 66 journal articles published between 1995 and 2020, focusing on the social sciences and business disciplines. Using the bibliometric 3.0 package in R-studio, we carry out a comprehensive bibliometric analysis to identify key sources, influential authors, and the evolution of research themes. Our findings indicate a rising focus on the impact of board independence on financial reporting, with significant attention to the role of independent audit committees and the importance of diversity in board composition. We also observe an increasing number of studies on how board independence affects company transparency and earnings management. This paper offers important implications for policymakers, investors, and corporate governance researchers, emphasizing the need to strengthen board independence practices to enhance financial reporting quality and corporate transparency.