Financial Reporting and Organisational Effectiveness in Mogadishu University, Somalia

ABSTRACT The study examined the relationship between financial reporting and organizational effectiveness. The objectives of the study was to determine the level of financial reporting, determine the level of organizational effectiveness, and determine if there is significance relationship between financial reporting and organizational effectiveness in Mogadishu University. The study used a descriptive cross-sectional study design using a quantitative approach on population consisting of university management, senior teaching staff and student representatives in Mogadishu University, Data was collected using a questionnaire and was analyzed using frequency, percentages, mean and standard deviation, correlation and regression analyses generated from SPSS. The study found a high level of qualitative characteristics of financial reporting in relation to presentation of financial report free from material error and bias. The study found a low level of quality of presentation of financial information in financial reporting related consolidating the right university’s liabilities, temporary losses on investments and addressing pension obligations in the financial report. The study found a very low level of pay satisfaction among the teaching staff in Mogadishu University. Financial reporting had a significant relationship with organizational effectiveness in M-ogadish u University. The study recommends that to achieve the desired level of organizational effectiveness, the University council which is the supreme policy making organ of the university and the overall management of the university should ensure that financial report fully incorporate key qualitative characteristics and quality of presentation of financial information through incorporation of consolidating the right university’s liabilities.

 Tab~e of Contents

DECLARATION A

DECLARATION B

ACKNOWLEDGMENTS iii

ABSTRACT iv

List of Tables vii

CHAPTER PAGE

ONE Problem and fts Scope 1

Background of the study 1

Statement of the problem 4

Purpose of the study 4

Research Objectives 5

Research questions 5

Hypotheses 6

Scope of the study 6

Significance of the Study 7

Operational definitions of key terms 8

TWO REVIEW OF RELATED LITERATURE 10

Concepts, Opinions, Ideas from AuthorsExpei-ts 10

Financial reporting 10

Organisationai effectiveness 11

Theoretical perspective 12

Summary of literature gaps 18

THREE METHODOLOGy 20

Research Design 20

Population of the study 20

Sample size 20

Sampling technique 21

Instrument 22

Reliability and Validity of the study instrument 22

Procedures of Data Collection 24

Data analysis 25

Ethical considerations 25

Limitation of the study 26

FOUR Presentation, Analysis And Interpretat~n Of Data 27

Introduction 27

Response rate 27

FIVE Summary Of Findings, Conclusions And Recommendations 44

Summary of findings 44

Profile of respondents 44

Conclusions of the study 47

Recommendations 49

References 51

Appendix 1: Study questionnaire 54

SECTION II: Financial Reporting 55

TRANSMIUAL Letter for the Respondents 58

Authorized letter 59

Curriculum vitae 60