QUALITY OF INFORMATION SUPPLIED TO BOARD OF DIRECTORS: A CASE STUDY ON A HIGHER LEARNING INSTITUTION

The Board of Directors for a corporation is responsible for the company’s operational and financial performance as well as its conduct. In the execution of their responsibilities, they have to make decisions on a broad spectrum of issues based on the information provided by the Management. The nature and quality of the information provided to them to enhance their efficiency and effectiveness have been in question. This paper seeks to develop a research tool to measure the adequacy of the internal reporting system that provides information to companies’ Board of Directors. The efficiency and effectiveness of the internal reporting system are evaluated by measuring the gap between the levels of satisfaction that directors have on each of the characteristics with that of the preparers’ perception. The instruments to measure those constructs were developed and tested based on a pilot study performed on an academic institution. The paper reports on the outcome of the pilot study. The result will be used to develop measurement tools for evaluating the efficiency and effectiveness of an internal reporting system of companies.

Keywords: Board of Directors, management, quality of information, internal reporting system, efficiency, effectiveness, level of satisfaction