Abstract:
The finance literature suggest that investment decisions are largely influenced by the quality of
corporate financial information released by firms in their financial statements, and that capital market
participants use corporate financial information released by firms for investment decisions. Factors
that influence the development of capital markets in developing markets include: appropriate legal and
regulatory framework, effective securities exchange commission, an active stock exchange market,
availability of accurate and reliable information about firms’ financial performance and position. An
improved financial reporting environment that produces accurate and high-quality financial reports on a
timely basis contributes significantly to the development capital markets in developing economies. It is
therefore important that the Institute of Chartered Accountants Ghana (ICAG), regulator of accounting
practice in Ghana should strengthen its regulatory role to ensure that accountants in Ghana helping
generate financial information for firms listed on the Ghana Stock Exchange are sufficiently
knowledgeable and skilled in matters regarding financial reporting and provide financial reports guided
by sound reporting ethics and the principle of integrity
