The effect of quality of financial reports on the share price value of the listed companies in Dar es salaam Stock Exchange

Abstract

The study analyzes the impact of quality of financial reports on the share price value of the listed companies in Dar es Salaam Stock Exchange (DSE) from 2019 -2022. To achieve the objective of the study, annual reports of 26 listed companies in the DSE were selected using purposive sampling technique for the period under the study. The study employed explanatory research design and a multiple regression analysis was employed to analyze the data. The empirical findings indicate that fundamental, enhancing qualitative characteristics and firm size are positively related with share price. This implies that quality financial reports contribute to an increase in share price. In managerial perspective, the study also provide evidence that quality of financial reports fosters shares price. The study recommends that management should focus on enhancing the quality of financial reports as a means to increase share price. Furthermore, policy makers should formulate and enforce policies that will improve the traits of quality of financial reports and impacting the share prices. Lastly the study suggested future studies to be conducted on financial or non-financial companies, introduce new research variables and considering alteration of the research methodology.

Keywords: Quality of financial reports, share price value, Dar es Salaam stock exchange, Tanzania