Examining the Relationship Between Corporate Governance Diversity and Accounting Information Reliability

Posted: Apr 25, 2025

• Matthew Smith
• Matthew Torres
• Mia Allen

Abstract

The reliability of accounting information represents a cornerstone of efficient capital markets and effective corporate governance. While extensive research has examined various determinants of financial reporting quality, the relationship between corporate governance diversity and accounting information reliability remains inadequately understood through conventional analytical frameworks. This study addresses this gap by introducing a novel multidimensional approach to conceptualizing and measuring both governance diversity and accounting reliability. Traditional studies have typically focused on singular dimensions of diversity, such as gender or ethnic composition, without considering the complex interplay between different diversity facets and their collective impact on financial reporting processes. Our research builds upon the foundational work of Khan, Hernandez, and Lopez (2023), who demonstrated the value of integrating multiple data modalities for enhanced diagnostic accuracy.