Financial Reporting and Governmental Value Creation in Selected Commercial Banks in Rwanda

Financial reporting is imperative for firms' information preparation and presentation for stakeholders' use. The commercial banks in Rwanda faced governmental value degradation due to management's self interests and unskilled accountants that were not able to provide financial information that portrays real taxable income. This study examined the effect of financial reporting on government's value creation in selected commercial banks in Rwanda. Triangulation design was adopted for this study, ex post facto design was used for secondary data and primary data were collected from 142 respondents' working selected commercial banks in Rwanda. The multiple regression models were used for the analysis. The findings showed that financial reporting has significant effect on governmental value creation. This study concluded that financial reporting applied by commercial banks in Rwanda is fundamental for governmental value creation. This study recommended that government of Rwanda should focus on improvement of financial reporting practices by creating an autonomous body that should monitor financial reporting from private, public companies, NGO and Non-Profit organizations so that it increases its tax revenue base and tax net.