Corporate Governance Mechanisms and Quality of Financial Reporting Among Cooperatives in the Cotabato Province, Philippines

This study examined the relationship between corporate governance mechanism and quality of financial reporting among cooperatives in Cotabato Province, Philippines. In this study, corporate governance mechanisms refer to key board-related attributes, including board size, board diversity, board independence, board committee structure, and the frequency of board meetings, while quality of reporting is measured in terms of relevance, faithful representation, comparability, verifiability and timeliness, and understandability. Previous studies have shown that the effectiveness of corporate governance mechanisms significantly contributes to the ability of cooperatives to produce high-quality financial reports characterized by transparency, reliability, and accountability. However, the study focused only on officially registered cooperatives that are members in good standing at Cooperative Development Authority and operating in provincial areas of the Philippines. Using a descriptive-correlational research design, data were collected from 115 cooperative members, supervisors, senior-level managers, and members of board of directors selected through purposive sampling. Descriptive statistics and Spearman's rank-order correlation were employed to analyze the data. The findings revealed that cooperatives generally exhibited strong corporate governance mechanisms and high levels of quality of reporting. Furthermore, a statistically significant positive relationship was found between corporate governance mechanisms and quality of financial reporting, indicating that cooperatives with stronger governance structures tend to produce higher-quality financial reports. While the results demonstrate a meaningful association, no causal relationship can be established due to the correlational nature of the study. This study contributes to the literature on corporate governance and cooperative management by providing empirical evidence from the Philippine cooperative sector and highlighting the importance of effective governance mechanisms in promoting high-quality financial reporting, transparency, and organizational accountability.