THE IMPACT OF FINANCIAL REPORTING QUALITY ON NON-FINANCIAL BUSINESS PERFORMANCE IN

MOGADISHU- SOMALIA

BY

ABDIWAHAB MOHAMUD NUR

ISMAIL ADAM ALI
 Problem Statement of the Study

Currently, the necessity for producing quality financial report has received great attention
over the world. Providing high quality financial reporting information is important because
it will positively influence capital providers and other stakeholders in making investment,
credit and similar resource allocation decisions enhancing overall market efficiency.

However, The Impact of Financial Reporting Quality on Non-Financial Business

Performance has not been investigated yet in Mogadishu, Somalia. This means there is a
gap which needed to be covered by the researchers. There for this study attempts to fill this
gap by emphasizing the impact of financial reporting quality on non-financial business
performance in Mogadishu, Somalia.
Study Objectives

Purpose of the Study

 To the objectives of this study is to investigate the Impact of Financial Reporting Quality
on Non-Financial Business Performance in Mogadishu Somalia.

Research objectives
1. To examine the impact of Relevance on Non-Financial Business Performance in
Mogadishu Somalia.
2. To investigate the impact of Understandability on Non-Financial Business Performance
in Mogadishu Somalia.
3. To investigate the impact of Faith representation on Non-Financial Business
Performance in Mogadishu Somalia.
Scope of the Study

Geographical Scope
This study took place at Small Business in Mogadishu Somalia.

Time Scope
This study was conducted in 7 months from January to July 2024.
 Significance of the study

This research was conducted to investigate the impact of the Financial Reporting
Quality on Non-Financial Business Performance. It is useful for:

 To all organizations whether they are profit organizations or not-profit organizations.

 To organizations in Mogadishu to understand how to develop their business
performance.
 To provide advance knowledge about business organization managers.
 And also, is crucial for future researchers and academic scholars,
Conceptual Framework of the Study

Independent Variable (IV) Dependent Variable (DV

Relevance

Non-Financial Business
Understandability Performance

Faithfull Representation
Methodology

Research Design
The study will apply a descriptive and correlational research design using
quantitative in examining the Impact of Financial Reporting Quality on Non-
Financial Business Performance in Mogadishu Somalia.

Study Population
The study population was unknown because of there is no government agency
which is in charge in counting their number.
Methodology

Sample Size
A target sample size of 239 responders is intended for this study. This number comes from
a previous study by Al-Dmour et al. (2018) titled "The impact of the quality of financial
reporting on non-financial business performance and the role of organizations
demographic' attributes (Type, size, and experience),".

Sampling techniques procedure

The researcher used a purposive random sampling approach. Purposive sampling is a non-
probabilistic sampling method used in research to select individuals or cases that meet
specific criteria
 Methodology

Data collection instruments/tool

To assess the impact of financial reporting quality on non-financial
businesses in Mogadishu, Somalia, a questionnaire will serve as the
principal research instrument. The questionnaire design is derived from a
previous study by (Al-Dmour et al., 2018), tailored to the specific context
and objectives of this research. Questionnaire design involves various
considerations to ensure the effectiveness of the survey instrument. It is
important to keep the questionnaire short and concise, while including all
necessary questions to address the research objectives (Arundel, 2023).
Methodology

Data analysis
This study will explain, describe and present the findings basing on the
specific objective of the study and research questions where data analysis
was initially done through sketchy and generalized summarized of the
findings from observation and conclusions in the process of data
collection.
Data analysis will be used Smart pls.
BRCE