Full Length Research Paper

Professionals’ perceptions of Trinidad and Tobago financial reporting environment

Anthony R. Bowrin

Department of Accounting, Law and Finance, College of Business and Management, Saginaw Valley State University, University Center, Michigan 48710, USA

E-mail: abowrin@svsu.edu

Accepted September 16, 2013

Abstract

The purpose of this study was to describe professionals’ perceptions about the quality of the financial reporting environment in Trinidad and Tobago (T&T). Also, the study examines whether there are differences in professionals’ perception of the quality of the T&T financial reporting environment based on sex and occupation. The purposive, snowball sampling technique was used to select participants for the study. The final sample of persons contacted was 62, of which 32 completed the self-administered questionnaire. On average participants rated the overall quality of the financial reporting environment in T&T as below average (mean 5.42, median 5.57, SD 1.43). Also, the average rating on strength of auditing and reporting standards (mean 5.91, median 6.20, SD 1.56) and strength of investor protection laws (mean 4.21, median 4.00, SD 1.85) indicated that these aspects of the T&T financial reporting environment were perceived as relatively weak. The low level of disclosures and perceived quality of the overall financial reporting environment suggest that it might be beneficial for leaders in the T&T financial community to revise the laws and regulations governing public disclosures to provide greater public oversight similar to what prevail in advanced market-based economies.

Keywords: Trinidad and Tobago, Financial Reporting Environment.