| Abstract: | The main purpose of the study was to examine the determinants of financial reporting quality in Ethiopian private banks. Ten years data from 2010 to 2019 were collected from National bank of Ethiopia and banks audited financial statements of ten sampled banks with total of 100 observations by using simple random sampling method,. The study used financial reporting quality as a dependent variable and eight firm specific attributes as independent variables; they are profitability, liquidity, leverage, non-performing loan, bank size, bank age, auditor change and IFRS adoption. Based on empirical evidence obtained the quality of accounting information of Ethiopian private banks can be influence by liquidity, bank size and IFRS adoption positively and leverage, profitability, non-performing loan and bank age negatively. Therefore, the above variables have a significant impact on financial reporting quality of Ethiopian private banks and board of directors of banks need to consider these variables while designing their financial reporting system; on the same token investors need to consider these variables in their investment decisions when they want to make an investment in Ethiopian private banks. But auditor change does not have significant impact on financial reporting quality. |
