ACCOUNTING AND CORPORATE GOVERNANCE: STRENGTHENING TRANSPARENCY AND MARKET TRUST

Abstract

The intersection between accounting and corporate governance plays a critical role in building transparency and trust in financial markets. This article examines the symbiotic relationship between the quality of accounting information and corporate governance structures to strengthen integrity and positive market perception. First, it explores how corporate governance practices, including board composition, member independence, and control mechanisms, influence the disclosure of accurate and relevant financial information. The importance of these elements in promoting accountability and alignment of interests is highlighted. In addition, the crucial role of accounting in this context is analyzed, focusing on the adoption of robust accounting standards, the implementation of reliable information systems, and the transparent presentation of financial data. It discusses how accurate and comprehensible accounting can strengthen investor confidence, reduce information asymmetry and mitigate risks of opportunistic behaviour. Taken together, this study highlights the importance of an effective synergy between accounting and corporate governance in promoting transparency and trust in financial markets, underlining their impact on informed decision-making and economic stability.