Financial Reporting Quality and Customers’ Value Creation in Selected Commercial Banks in Rwanda

Dr. NIYONZIMA, Theogene (PhD)
Adventist University of Central Africa (AUCA), Kigali, Rwanda


This study evaluated the contribution of financial reporting quality on customers’ value creation in Rwanda. The literature indicates that creating value for customers is important for sustainability of any kind of business. The study used ex-post factor and survey designs. The population of the study was 11 commercial banks licensed in Rwanda. Purposive sampling technique was used to select six banks which have data that covered a period of last years 18 years. Secondary data were extracted from past financial statements of the selected banks. Using total enumeration, primary data were collected from 148 staff of the six banks who work in the departments of accounting, finance and management, who are knowledgeable in financial reporting quality and value creation. Adapted and validated questionnaire was used in collecting primary data. The findings revealed that financial reporting quality had significant effect on customers’ value creation (Adj-R2=0.4338, F(5,102)=79.76, p <.01), validated by qualitative findings (Adj-R2=.435, F(8,133)=14.553, p <.05). The study concluded that financial reporting quality influences value creation for customers in selected commercial banks in Rwanda.

Keywords: bank, customer, financial information, financial reporting, value creation


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