Corporate governance and compliance with IFRSs : the case of Tanzanian Savings and Credit Cooperatives

This study examined the influence of corporate governance characteristics: size, women on board, financial skills of members, frequency of meetings and financial skills of the supervisory committee on compliance with International Financial Reporting Standards (IFRSs). The study was premised on Savings and Credit Co-operatives (SACCOs) complying with IFRSs disclosures. Yet, evidence on the relationship between corporate governance and IFRSs compliance in Tanzania is limited. Therefore, this paper contributes to the body of knowledge by extending the application of agency theory to determine the relationship among variables. Specifically, the study used a quantitative panel data set of 202 SACCOs from the 2013-2020 period collected from annual financial reports and subjected to descriptive analysis and regression models. Descriptive statistics indicate that SACCOs in Tanzania are complying with 44% of IFRSs disclosures. Results show a positive significant relationship between the board members possessing financial skills, the inclusion of women on the board, supervisory committee financial expertise and IFRS compliance level. Moreover, the study found no evidence that board size and board meetings influence IFRSs compliance levels. To improve IFRS compliance level, SACCOs in Tanzania are called to elect board members with financial skills; besides, financially skilled women should be encouraged to be part of SACCOs boards.