Examining the role of earnings, transparency, reporting timelines and accruals on firm performance: Evidence from listed companies of Pakistan

Abstract

The main aim of the study is to examine the role of earnings, transparency, reporting timelines and accruals on firm performance.  The current study is considered listed companies of Pakistan from 2010 to 2022 as a sample for analysis. Keeping in view the concept of agency theory information asymmetry framework, the current study investigates how key financial variables like, earnings, transparency, reporting timelines and accruals affect the firm performance. The firm performance is taken as a dependent variable and measured by return on investment (ROI) and Tobin’s Q. The study is adopting a panel regression analysis. The findings predict positive and statistically significant association between earnings and return on investment. The study also found that accruals has a negative relationship with return on investment.  Another predicating variables such as Transparency and timeliness also show positive relationship with respect to firm performances. The study concluded that accounting information is indispensable for investment decisions and overall firm performance.