Trends and Analysis of Financial Performance and Corporate Governance Disclosure reflecting on Annual Financial Reports of listed Companies in Zimbabwe

Abstract

The purpose of this study is to investigate experimentally the relationship between the listed non-financial corporations in Zimbabwe's level of Corporate Governance Disclosure (CGD) and their Financial Performances (Profitability). Information is derived from listed firms' 2022 annual reports. This study used OLS as an estimating method and is based on a sample of 94 listed companies. Return on assets (ROA) is used to quantify financial performance, or profitability, and 40 elements of information are used to determine the extent of corporate governance transparency level. When measuring corporate governance transparency using an unweighted method, it works best when no particular user group is given any weight at all. Following the creation of the disclosure index, a scoring system was created to evaluate the level of corporate governance. The outcome demonstrates a favourable correlation between the Financial Performances (Profitability) and the degree of Corporate Governance Disclosure (CGD). The report offers Zimbabwe’s regulators and policy makers empirical data disclosures made.