The Role of Good Corporate Governance in Mediating the Influence of Owner Factors and SME Characteristics on Accounting Information

Abstract

One of the reasons small and medium enterprises (SMEs) in developing countries often experience failure is their limited use of accounting information. SMEs can benefit from implementing the principles and best practices of good corporate governance (GCG), which are expected to enhance managerial accountability and improve decision-making processes. This study to examine how owner education, business duration, and business scale influence the use of accounting information, with good corporate governance serving as a mediating variable among SMEs in Makassar City. Total of 111 SME owners were selected as respondents using a simple random sampling method. Data were collected through structured questionnaires distributed directly to respondents and analyzed using path analysis with AMOS 26 software. The results indicate that owner education and business duration have a positive and significant effect on good corporate governance, while business scale has a negative but significant effect. Furthermore, good corporate governance mediates the relationship between owner education, business duration, and business scale toward the use of accounting information. These findings emphasize the importance of implementing good corporate governance improve the effective utilization of accounting information and support sustainable business performance among SMEs in developing economies.