How Quality of Accounting Information Will Influence Corporate Performance in China - Essay Example

Abstract

Few studies have focused on how the quality of accounting information but none has addressed its influence on corporate performance in China. The purpose of the study is to find out how the quality of accounting information will influence corporate performance in China. The project evaluates various factors that shape corporate performance. The introduction contains the purpose, scope, description, and justification, which put the research into proper context. The literature review critically analyses the research topic from a variety of perspectives including investment efficiency, internal control deficiencies, liquidity risk reduction, profitability, and external financing. The methodology used in the research is qualitative and employs survey questionnaire for data collection. The analysis of the results concentrates on the various corporate performance and accounting information aspects based on a questionnaire prepared in advanced. The critical evaluation and subsequent conclusions demonstrate that quality of accounting information will influence corporate performance in China positively but negatively for loss-making corporates.

Chapter 1: Introduction

Purpose

The primary aim of the project is to establish how the quality of accounting information will influence corporate performance in China. Accounting procedures are critical components of corporate governance, which have received global recognition guided by significant accounting principles standards such as International Financial Reporting Standards (IFRS), and Generally Accepted Accounting Principles (GAAP) accounting principles (Foo, 2016). Finding the influence of quality of accounting information is essential considering the increasing role of Chinese corporate world in the global market. The economic essence of accounting information has been under research but understanding it from the context of China would provide sufficient information about the attractiveness of the growing corporate sector in the Asian market.

Scope

The project will evaluate the corporate performance using a multidimensional approach considering its relevance among corporate managers, investors, and countries with strict corporate regulations regimes. The project seeks to establish the link between quality of accounting information and corporate performance by using Tesco as the study area due to its global presence as a supermarket chain. The evaluation will help to understand the influence of quality accounting information from managerial, auditors and investors perspectives given their core roles in the corporate operations.

Objectives

The project will seek to achieve the following objectives to put the study into proper context:

• To investigate the relationship between quality of accounting information and corporate performance in the Chinese sector
• To discover corporate performance factors susceptible to the influence of quality accounting information
• To find out the implications of poor quality of accounting information to corporate performance
• To explore future changes in quality of accounting information, which may further influence corporate performance in China

Research Questions

The project will focus on the following research questions to form a foundation for investigation and subsequent analysis:

• How does the quality of accounting information influence corporate performance in China?
• What corporate performance factors do the quality of accounting information influence?
• What are the implications of the poor quality of accounting information to corporate performance in China?
• What future changes that will occur regarding the quality of accounting information and corporate performance?

Background and Context of the Project

Accounting information quality is a developing area of research that transcends disciplines and industries due to the growing focus on quality corporate governance. Emerging cases of accounting information distortion have caught the attention of the international community particularly the corporates operating in a highly competitive market. Investors rely on information to make decisions in the mature markets. China is yet to achieve maturity when compared to US market (Foo, 2016). Cases of poor quality financial reporting, credibility, comparability, and relevance in accounting are likely to affect the Chinese market and individual corporations due to lack of stringent regulatory mechanisms. The value relevance of quality of accounting demands behaviours, which sustain different investors, auditing bodies and compliance institutions in the global market.

The accounting scandal at Tesco gained international focus following abnormal shortfalls in the profits before 2014. The company faced a gruelling task of convincing its stakeholders and investors about the €250million overstatement in the financial statements (ACCA Global, 2016). PwC speculated risk of manipulation of Tesco‘s accounts, which could impair its revenues and costs. The corporation risk signing off accountings, losing suppliers, investors and the customers due to its image as a public company. The project uses a Tesco as target study area guided by the history of accounting information distortion. Information seeking will help the researcher understand the extent quality of accounting information would influence corporate performance in China.

Justification

China is an emerging market but with low mechanisms for regulation accounting reporting behaviours. The quality of accounting information has gained economic relevance due to globalization and relevance of developing sectors besides U.S as well as Europe (Ran et al., 2015). The demand for quality information from investors and stakeholders implies that accounting has value relevance, which determines how the companies sustain relationships at the micro and macro levels. Accounting information must feature decision usefulness, relevance, reliability, comparability, consistency, and predictive capability to shape the investment, liquidity, profitability, as well as control in the corporate sector (Riccardi, 2015). The usefulness of accounting information shapes corporate performance. Hardly have researchers established how the quality of accounting information influence corporate performance in the developing Chinese market hence the aim for undertaking the project.

Description of the Problem

Establishing the influence of quality of accounting information on corporate performance in China is a critical area for research. Knowing the factors of corporate performance would suffice to comprehend how the quality of accounting information influences each aspect. The Chinese market features a two-tier governance system, hence the existence of strict supervisory, regulations and policies (Wang and Wu, 2011). The perception of corporations towards the reliability, comparability, consistency, predictive ability, and value of the accounting information should be clearly understand to establish the main issues that they seek to protect or streamline.

Summary of what the Project Delivered

The project established quality of accounting information would influence corporate performance in China positively. The research found that investment efficiency, reduction of liquidity risk, profitability, and internal control deficiencies are integral factors of corporate performance, which quality of accounting information influences considerably.

Major changes in relation to PID

The only change that the researcher made was the data collection. The project utilized survey questionnaire through qualitative design instead of interview method as proposed in the PID.

Project Organization

The project is organized in as follows:

Chapter 1: Introduction

Chapter 2: Literature Review

Chapter 3: Methodology

Chapter 4: Analysis of Results

Chapter 5: Critical evaluation

Chapter 6: Conclusion

The other sections contain a list of references & bibliography, and appendices. The appendices contain questionnaire, charts, and graphs used for data analysis.

Chapter 2: Literature Review

The following review uses an analytical approach to establishing what researchers have found about the how the quality of accounting information influences corporate performance.

Corporate Internal Controls

The quality of accounting information eliminates internal control deficiencies. Kraus and Lind (2010) carried out a quantitative study that focused on 15 Sweden multinational firms, which revealed the need for efficient corporate control measures at the corporate levels. The study established the importance of internal measure, which requires implementation in the dynamic China corporate market. Essential, Kraus and Lind (2010) found the need for top management utilizing accounting information to sustain efficient internal control in the subordinate corporate levels. Similarly, Dhaliwal et al. (2011) found congruence between internal disclosures and controls. However, the researchers insisted on board control as a way of streamlining how the information is used to finance operations, particularly at credit and banking corporates.

Naiker and Sharma (2009) argued that degree of internal control depends on the role of audit committee. The study concurred with Dhaliwal et al. (2011) arguments about using board control to eliminate internal control deficiencies through efficient audits. Additionally, Naiker and Sharma (2009) found that quality accounting information increases monitoring of internal controls for firms operation under certain financial reporting regimes. A meta-analysis of 48 studies by Lin and Hwang (2010) confirmed that internal controls require quality and prompt accounting reports to overcome impediments in different levels of management.

Investment Efficiency

New accounting principles improved the quality of accounting information in corporates, which reinforced the ability of firms to make sound investment decisions. According to Brüggemann, Hitz and Sellhorn (2013) firms in the EU regions faced efficient investment regimes following mandatory publication of transparent of financial statements under IFRS guidelines. China complied with the standards, which indicates that private and public corporates will undergo the same transformation. Chen et al. (2011) emphasized the role of accounting information in helping firms understand taxation regimes, capital markets, and investment protection in diverse countries. The study focused on U.S private firms to affirm that the quality accounting reporting would enable corporates in emerging markets to make engage in efficient investments ventures across the globe. Iatridis (2010) perspective on the adoption of IFRS as a factor of accounting information showed that Chinese firms could make sound investments and judgments about potential prospects. The qualitative research was limited to UK, but it provided a scope of evidence that affirmed how firms miss investments due to discrepancies in accounting information.

Correspondingly, Wysocki (2011) viewed the new accounting procedures under IFRS as the means for eliminating inconsistent investment outcomes, which limited the opportunities for corporations. While some of the Chinese private and public corporates operate under GAAP, adjustment to new accounting procedures under IFRS is easy, which will facilitate publication of sound accounting information to reduce inefficiencies. Biddle, Hilary, and Verdi (2009) concurred that the relationship between accounting information and corporate performance is high, but firms must utilize sufficient information to predict investment levels. The qualitative study Biddle, Hilary, and Verdi (2009) viewed accounting quality as means for reducing frictions and adversities at macroeconomic level if corporates are to make significant investments.

Additionally, improvement in investment efficiency requires corporates to publish reliable accounting information and sustain strict financial reporting. Cheng, Dhaliwal, and Zhang (2013) acknowledged that quality financial reporting is a component of investment decision-making in stable and emerging markets. The study found that transparent accounting disclosure eliminates the financial constraints for private and public firms in the long term. However, Ahmed and Duellman (2010) insisted that corporate boards and managers must sustain conservative accounting to generate profitability, cash flows, and gross margins in accordance with the future financial projections. Evidently, sound investment decisions in the Chinese markets would largely depend on the role of the corporate boards.

Accounting quality leads to information asymmetry between managers and investors, which shape investment decisions. According to a study on 500 employees by Cassar, Ittner, and Cavalluzzo (2015) sophisticated, but clear accounting, procedure ensures that firms communicate with investors as well as financial institutions. Reduction of information asymmetries ensures that companies sustain reliable investors and lenders who contribute funds to achieve quality corporate performance. Chinese corporates are subject to intense government regulation, which may reduce lending, and investment but firms require transparent accounting and financial statements to avoid distortion from the state (Chen et al., 2011). Beatty, Liao and Weber (2010) argued that the quality of accounting information would reduce information asymmetry through monitoring. Corporates perform well when the managers, governments, and investors communicate freely based on accounting information published.

High Profitability

Corporations achieve high profitability when they publish correct information on sales and costs. According to Dedman and Lennox (2009), private UK companies experienced financial constraints for withholding information from publicly filed accounts. The companies were supposed to present correct sales and costs information to enable managers to evaluate the industrial competition. However, Dedman and Lennox (2009) acknowledged that some firms withhold information to generate profits but only in the short term. A similar analysis on UK listed companies found that accounting conservatism as an impediment to success in the corporate industry. Iatridis (2011) found that UK listed firms who use Big 4 auditors enhances less conservative accounting procedures, which enable them to foster greater growth prospects. Taipaleenmäki and Ikäheimo (2013) added that the convergence between performance and profitability would continue particularly for firms with IT based accounting framework. China corporate relies on IT network hence the installation of relevant accounting framework will facilitate efficient accounting controls at the corporate level.

Chinese firms will assess market variables using quality accounting statements guided by Staikouras and Wood (2011) findings on how European corporates overcome shocks. While the study did not focus on Chinese banks, it presented a universal case of how firms survive in the greater macroeconomic environment. The conduct of the accounting officials and the board determine the success of a firm in adjusting to various market variables to overcome financial constraints. The ability of corporates to sustain profitability in the dynamic Chinese will require strict accounting board and procedures. Chen et al. (2011) found that the Chinese economy has undergone significant restructuring in the last three decades, which could make or break corporate performance for firms without stable auditing, financial reporting, and overall accounting frameworks. The study assessed accounting quality as a determinant factor for earnings, and cost of equity, which shape profitability levels.

Low Liquidity Risk

Chinese corporations will face low liquidity risks if they sustain accounting quality during reporting. Bardos (2011) found a positive relationship between quality of financial information and liquidity among firms listed on NASDAQ. The restatement of accounting information promotes returns volatility and accommodates changing price levels. Bardos (2011) argued that income-increasing restatements decrease firms’ liquidity risks, particularly during a financial crisis. Jeffrey (2011) insisted that the association between corporate performance and high liquidity gives the firms capacity to make considerable investments.

Conversely, Lee and Masulis (2009) viewed the quality of accounting information as a component of reducing cost and liquidity risks. The qualitative study insisted on the need for firms to sustain quality accounting information to attract investors. The capacity to underwrite costs and risks by creating demand for new equity is the best platform to sustain performance in the long term. Lee and Masulis (2009) focus entailed small and large companies with high probabilities of seasonal equity offerings. Sadka (2011) conducted a qualitative research that aimed at finding the effect of transparent accounting information. While the qualitative study did not focus on specific, it established that firms reduced systematic liquidity risks when they utilized high-quality accounting information. The research further confirmed that corporate firms across the globe survived financial crisis for using information that investors and core stakeholders could trust.

Increased External Financing

Corporates expand the scope of external financing by using correct accounting statements. Devalle, Onali, and Magarini (2010) found that companies in Germany France and the United Kingdom accommodated IFRS standards to retain the confidence of lenders and investors. IFRS adoption promoted accounting quality, which created value relevance for the firms whose aim to decrease risks during the financial crisis. Correspondingly, U.S corporations managed to predict banking failure based on the quality of accounting information published during the 2008 financial crisis. Jin, Kanagaretnam, and Lobo (2011) argued that the information that banks published in 2007 allowed firms to assess the loan quality, balance sheet position, and profitability. The information came in handy in informing managers about consideration of alternative sources of external financing. Some of the firms sustained their corporate performance while others collapsed for failing to utilize sufficient accounting information to make predictions (Jin, Kanagaretnam, and Lobo, 2011).

Kober, Lee and Ng (2010) confirmed the usefulness of quality accounting information in creating new external financing sources using a case study of Australian firms. While the firms had sustained GAAP compliance, the accounting system allowed the managers to prepare information that external users could comprehend hence it become a component for financial decision-making. Chinese firms could achieve the same familiarity effect particularly the organizations that utilize GAAP and IFRS accounting systems to process information for external users. According to Hope, Thomas, and Kolk (2011, p.935), the financial credibility of a firm shapes information symmetry with the external providers of finance. The study used a case study of private firms to demonstrate the relevance quality accounting information in attaining external financiers. The possibility of high performance for Chinese multinationals is high considering the same principles regulate accounting procedures firms.

Chapter 3: Methodology

The principal aim of this chapter is to present the method used in the study and the applicability of the identified research design.

Research Design

The study used a qualitative design approach to assess the study variables. A survey method was used to obtain the data from a selected number of stakeholders from the corporate world. Survey method allows researchers to measure attention, attitudes and experiences with accuracy.

Target Population

The researcher utilized responses from 50 respondents who filled separate questionnaires. Each participant filled different questions using ‘yes’, ‘no’, or ‘no response’ approach as a way of allowing them to make clear opinions on how the quality of accounting information will influence corporate performance in China. The researcher retrieved, arranged, organized, and compiled all the questionnaire with appropriate responses for analysis.

Sampling Procedure

A random sampling procedure was used to select respondents from Tesco. The research identified 50 respondents where 30 males and 20 females were selected to respond to the research questions regarding how the quality of accounting information will influence corporate performance in China.

Data collection

The data collection procedure used in the study was direct survey questionnaire. The technique allowed the research to formulate questions appropriately. The primary aim was to gather data that could be used for analysis.

Ethical considerations

The researcher sought consent from the Tesco supermarket before distributing questionnaires to the managers, auditors, and investors. Each participant gave consent to provide responses for the research. The information was provided on voluntary. The project does not reveal the names of the respondents for reasons for privacy and confidentiality.

Chapter 4: Analysis of the Results

Part I: Descriptive Analysis Demographic profile of the participants

The respondents were managers, qualified auditors, and investors from Tesco Supermarket. There were 50 respondents where 20 respondents were between 21-30 years (40%) while 30 respondents were more than 30 years old (60%) (Refer Pie Chart 2)

There were 30 (60%) males and 20 (40%) females who participated in the study conducted within Tesco chain (refer Graph 3).

The respondents had different levels of experience (refer to graph) working for the giant chain supermarket. Out of 50 respondents, 10 (20%) had 1-5years, 15 (30%) had 5-10years while 25 (50%) more than 10 years of working experience at Tesco (refer Graph 4)

The respondents had different academic qualifications (refer pie chart 5) hence, they worked at different levels of management at Tesco. Out of the 50 respondents, 10 (20%) had diplomas, 15 (30%) had bachelor's, 15 (30%) has Masters and 10 (20%) had PhDs.

Part II: Descriptive Analysis Responses for the survey questionnaire

Question 1

40 (80%) respondents agreed that quality of accounting information eliminates internal control deficiencies. Conversely, 10 (20%) respondents disagreed that accounting will affect corporate performance positively by eliminating internal controls (refer Graph 7)

Question 2

Out of 50 participants, 35 (70%) respondents disagree that that accounting quality will negatively affect China’s corporate sector during suspicious transactions. 7 (14%) respondents agreed that quality of accounting would not streamline information asymmetry hence it would have negative effect on the China’s corporate sector. 8 (16%) respondents did not respond (refer graph 8).

Question 3

45 (90%) respondents said yes that quality accounting reports would promote the success of the corporate sector in China while 5 (10%) respondents said no to mean that corporate performance was not dependent on quality accounting reports (refer pie chart 9).

Question 4

All the respondents (100%) said yes that quality of accounting information increases investment efficiency in the Chinese corporate sector (refer Graph 10).

Question 5

Out of 50 respondents, 40 (80%) respondents agreed that publishing reliable and accounting information increases ease of investment for shareholders hence influencing Chinese corporate performance positively. 5 (10%) respondents disagreed that publication of reliable and predictive accounting information would ease investment for Chinese shareholders while 5 (10%) participants did not respond (refer Graph 11).

Question 6

35 (70%) said no to disagree with the assertion that quality accounting information is the main factors that investors perception. 5 (10%) respondents agreed that investors consider quality of accounting information while 10 (20%) respondents did not provide any response (refer Pie Chart 12)

Question 7

45 (90%) respondents said yes that quality of accounting information directly affects corporate profitability while 5 (10%) participants said no to disagree that quality of accounting information has a direct effect on profits hence. 5 (10%) did not respond (refer Graph 13 )

Question 8

All the respondents (100%) agreed that sound and reliable accounting information facilitate the reduction of unaccounted costs, which will promote corporate performance in China (refer Graph 14)

Question 9

44 (88%) respondents say yes to agree that lack of credible accounting information negatively affects liquidity risk for the corporate sector in China. 4 (8%) said no to imply that lack of credible information does not affect liquidity risk, which impairs corporate performance. Out of 50 respondents, 2 (4%) did not respond (refer Pie chart 15)

Question 10

All the respondents (100%) said yes to imply that quality of accounting information drives external financing, which promotes corporate performance in a country such as China (refer graph 16)

Question 11

All the respondents (100%) said no to imply that transparent accounting information does not pose a threat to loss-making corporates in countries such as China (refer Graph 17)

Question 12

38 (76%) respondents agreed that reliable and quality accounting information might scare investors for loss-making corporates while 12 (24%) respondents disagreed that the information would impede external investors (refer pie chart 18)

Question 13

24 (48%) respondents identified investment efficiency, 10 (20%) participants established internal control efficiencies, 9 (18%) recognized reduction in liquidity risk while 7 (14%) identified as profitability the positive factors attributed accurate, reliable and quality accounting information (refer Graph 19.

Question 14

The only negative factor associated with accurate, reliable, and quality of accounting information emerging from all respondents (100%) was scaring away investors. All the respondents identified the negative factor as an impediment performance in loss-making corporates.

Question 15

10 out of 50 respondents were auditors. The auditors acknowledged accurate, reliable, and quality accounting information as the primary factor that influences corporate performance positively. The respondents identified investment efficiencies, internal controls, and liquidity risks as the most sensitive issues pertaining corporate performance, which accounting information influences considerably.

Chapter 4: Critical Evaluation

Eighty per cent represents a significant proportion of the respondents who agree that quality of accounting information eliminates internal control deficiencies. Evidently, lack of internal control deficiencies will influence corporate performance in Chinese positively. Reliable, accurate, and transparent accounting information is an essential component of internal control, which informs the firms to make relevant adjustments at the corporate level (Jasch, 2009). The finding cements the essence of honest auditing, reporting, and accounting.

Similarly, 70% participants acknowledged that quality of accounting information does not have a negative influence on the Chinese corporate performance. The findings show the essence of sustaining internal controls and information symmetry particularly in an institution with a history of distorted accounting information. Information symmetry determines how corporations communicate with investors among other stakeholders, which will underscore performance of the corporates in the Chinese market.

A significant proportion (90%) of the respondents recognizes quality accounting reports will promote the success of the corporate sector in China. China has a two-tier governance system, which requires corporations to adhere to reliable and consistent reporting. Corporates will boost performance if they comply with accounting reporting guidelines to mitigate new challenges and risks in the developing Chinese sector. Accounting support streamlines internal finance functions.

Landmark finding from the study (100%) was that quality of accounting would increase investment efficiency in the Chinese corporate sector. Investors make efficient decisions when they have accounting reports, which have comparability, consistent, reliability, and predictive ability (Fan and Morck, 2013). Each correct audit or financial report presents an opportunity and a chance for evaluating potential risks among prospective investors.

80% agreement that publishing reliable accounting information would increase the ease of investment further confirms the extent corporates help shareholders. The primary focus of any corporate is increasing shareholders’ value, which further cements investment efficiency for firms. Evidently, quality of accounting information will influence corporate performance positively by increasing the capacity of a firm to invest and attract external investors as well as shareholders.

However, quality accounting information does not primarily shape investors perception hence accounting information quality would not influence corporate perception according to 70% response level in the analysis. A corporation must consider evaluating its performance against political stability, portfolio allocation, and economic risks, which determine investors’ perception (Warren and Reeve, 2007).

The most important aspect of corporate performance that emerged from the analysis was profitability, which 90% respondents acknowledged as having direct correlation with quality of accounting information. Corporates in China will attain consistent performance if they use reliable accounting reports to forecast and determine profits (Leitner, 2012). Quality accounting information determines earnings, revenues, and income statements.

In addition, the analysis showed that respondents agree (100%) that reliable accounting information reduces unaccounted costs, which will promote corporate performance in China. Unaccounted costs occur when audit committee and financial officers fail to provide correct reports. Costs remain an integral component for the price and a starting point for accounting (Forssbaeck, 2014). A corporation must have sufficient reporting guidelines to eliminate unaccounted costs, which distort the financial statements.

Generally, lack of credible accounting information will negatively influence the liquidity risk of a corporate in the Chinese sector. 88% response implies that the respondents the association between liquidity and corporate performance in the developing Chinese market. The ability of corporates to use quality accounting information to reduce systematic liquidity risks means that firms have the capacity to concentrate on high-value projects (Kalyebara and Islam, 2014). Such investment project increases returns and overall profitability in the long-term

Conversely, 100% agreement that quality if accounting information drives external financing for corporates is critical. Ability to borrow from banks increases the capacity to sustain operations. The banking sector remains a significant external financier in China (Bansal, Phatak, and Sharma, 2015). Banks evaluate firms’ statements to understand its financial position. Reliable and comparable accounting information ease lending.

Additionally, loss-making corporates would benefit from transparent accounting information guided by the 100% agreement from the respondents. The quality of accounting would salvage the performance of Chinese corporates from making losses. The information streamlines internal control deficiencies, creates room for investment and external financing once a company publishes transparent reports.

Equally important, 76% of respondents agreed that the quality of accounting information would attract investors for a loss-making an organization. While 24% respondents disagree that correct information would encourage external investment, they forget that a firm’s value remains intact when it makes losses in the short term. Some of the external investors would inject money to salvage such a corporate with regimes of losses but with high viability if properly managed.

Admittedly, the respondents attributed investment efficiency, internal control efficiencies, reduction in liquidity risks and profitable as the positive factors associated with accurate, reliable as well as the quality of accounting information. The findings demonstrate the association between accounting information and corporate performance as multidimensional. Corporates will attain positive performance by evaluating the identified aspects, which are subject to the influence of quality of accounting information. The only negative factor that emerged from the analysis was correct accounting information scaring away investors for loss-making corporates. Loss of investors would limit the capacity to expand and undertake the profitable projects, which would curtail overall performance in the short and long-term.

Twenty per cent of the respondents comprised of auditors who pointed out that that quality of accounting information would have an overall positive influence on corporate performance. The participants understand the degree of importance of accounting reports hence the ability to acknowledge the positive influence of reliable information on corporate performance. The high mechanisms in china should promote a corporation's ability to meet investment, internal controls, and liquidity risks need in the developing Asian market.

Chapter 6: Conclusion

Evidently, quality of accounting information will have a positive influence on the corporate performance in China. The Chinese market has not achieved maturity like U.S and Europe. The analysis has established that the reliable accounting information promotes information asymmetry, particularly when firms have suspicious transactions. Informative accounting reports will have a positive influence on corporate performance by boosting investment efficiencies, easing investment for shareholders, increasing profitability, eliminate unaccounted costs, and reduce liquidity risk. Corporate performance among Chinese firms will require publication of reliable accounting information to increase external financing to sustain major operations. However, loss-making corporates may scare off the investors when they public reliable accounting information. Apparently, corporate performance is a multidimensional component, which further establishes the need for publishing quality and reliable accounting reports.

Limitations of the study

The research sought consent from Tesco to carry out the studies. However, some of the targeted respondents declined to participate in the project, which only limited the sampled population to 50 participants. Time limitations reduced the scope of the project hence only a few variables could be investigated and analysed. In addition, the research focused on Tesco alone as the target study area, which evoked issues of generalizability within the context of the supermarket.

Recommendation for further research

Future researchers should consider investing more time to establish how the quality of accounting information sustains corporate performance in other emerging markets. The empirical evidence from the study would help to understand the essence of publishing reliable accounting reports. Understanding the topic from the context of another developing market would help to identify other or similar factors influencing corporate performance.

Personal Reflection

I managed to find that corporate performance is a multifaceted component, which means that quality of accounting information affects corporations from diverse angles. Using Tesco as a case study further revealed the extent companies acknowledge quality accounting information. The information determines internal controls, shapes investment decisions, and stakeholders relationships, which determine the performance of firms in the long-term. While the data collection process was a challenge, engaging managers, auditors, and investors affiliated to Tesco helped me to comprehend how the subject of accounting reporting as well as corporate governance is gaining attention in emerging market.

I have managed to compile a landmark project within a limited period, which has confirmed that I have applied some of the skills that I have acquired over time. Data analysis was another challenge but it enabled me to seek consultation from relevant research materials and journals. In addition, I have learned that working on a project requires critical assessment of issues starting from the topic and the variables that required subsequent analysis and findings. The lesson will come in handy in future academic and independent research work.

Nonetheless, I found myself deviating from the topic inspired by the need to complete the project. The thought of presenting substandard work and the risk of failing in the significant semester project helped me to get back on track. Clearly, I could follow all the outlined guidelines as outlined, but I would find myself giving up. The ultimate goal of attaining academic excellence gave me the motivation to carry out the project to meet the expectations of the supervisors. I realized that working hard to impress the instructors would limit the chances of learning comprehensively in such a landmark learning venture.