Ethical Leadership and Financial Reporting Practices in Chad

Purpose: The aim of the study was to assess the ethical leadership and financial reporting practices in Chad. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicated that when leaders prioritize ethical conduct and integrity, it positively influences how financial information is reported and communicated to stakeholders. Ethical leaders foster a culture of transparency, accountability, and honesty, which leads to more accurate and reliable financial reporting. This, in turn, enhances investor confidence, reduces the risk of financial fraud, and promotes long-term sustainability for the organization. Studies also highlight the importance of ethical leadership in regulatory compliance, as leaders who prioritize ethics are more likely to ensure that financial reporting practices adhere to legal and ethical standards. Overall, the link between ethical leadership and financial reporting practices underscores the significant impact that leaders have on the integrity and credibility of financial information within companies. Implications to Theory, Practice and Policy: Transformational leadership theory, stakeholder theory and agency theory may be used to anchor future studies on assessing the ethical leadership and financial reporting practices in Chad. Organizations should implement comprehensive ethics training programs for leaders and employees to enhance ethical awareness, decision-making, and behavior related to financial reporting. Policymakers and regulators should strengthen regulatory oversight and enforcement mechanisms related to financial reporting practices.