A meta-analytic review of the impact of financial reporting quality on firm value and performance: Evidence from systematic literature synthesis

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Abstract

This study conducts a systematic review combined with meta-analysis to quantify the overall effect of financial reporting quality (FRQ) on firm value, thereby addressing inconsistencies in prior empirical findings (Chen et al., 2023; Gaio & Raposo, 2011). Based on data from 22 reputable Scopus-indexed articles (including 41 effect sizes) screened following the PRISMA procedure, the study employs a random-effects model to estimate the correlation coefficient. The results confirm that FRQ has a positive and statistically significant impact on firm value, with an overall correlation coefficient of r = 0.091, supporting the predictions of agency theory (Jensen & Meckling, 1976) and signaling theory (Spence, 1973). Further analysis indicates that the market reacts more sensitively to accrual-based earnings management (r = 0.181) than to real earnings management. Although a high level of heterogeneity exists across studies (I² > 98%) due to differences in measurement approaches, the findings remain robust after publication bias tests. The study provides important implications for managers and policymakers regarding the role of information transparency in reducing agency costs and maximizing firm value.

Keywords: Financial Reporting Quality, Firm Value, Meta-Analysis, Systematic Review, Earnings Quality, Information Asymmetry, Corporate Governance

Authors’ individual contribution: Conceptualization — T.T.H.T.; Methodology — T.T.H.T.; Validation — N.H.D.; Formal Analysis — N.H.D.; Investigation — T.T.H.T.; Data Curation — T.T.H.T.; Writing — Original Draft — T.T.H.T.; Writing — Review & Editing — T.T.H.T. and N.H.D.; Visualization — T.T.H.T.; Supervision — N.H.D.; Project Administration — T.T.H.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D82, G32, G34, M41

Received: 15.02.2026
Revised: 19.03.2026; 13.04.2026
Accepted: 28.04.2026
Published online: 30.04.2026

How to cite this paper: Tran, T. T. H., & Dang, N. H. (2026). A meta-analytic review of the impact of financial reporting quality on firm value and performance: Evidence from systematic literature synthesis. Business Performance Review, 4(2), 45–58. https://doi.org/10.22495/bprv4i2p5