Accounting conservatism and corporate cross- listing: The mediating effect of the corporate governance

Mrad, Mouna

doi:10.1080/23322039.2022.2090662

Cited by 7 publications

(8 citation statements)

References 84 publications

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“…The result is similar to previous research byAhmed and Henry (2012),Nasr and Ntim (2017), El-habashy (2019), Al-Saidi (2020), andMrad (2022). Moreover, the research is also similar to the opinion of the controller in Vietnam that the board size, board independence, and audit organization are one of the influences on the information quality of financial reporting through conservatives of VN100 listed enterprises.…”

supporting

confidence: 89%

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The board of directors influence on the information quality of financial reporting through accounting conservatism – Empirical evidence on Vietnamese listed enterprises

Tuan

Thinh

Thuy

2023

Investment Management and Financial Innovations

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The information quality contained in financial reporting has practical implications for stakeholders. Accounting conservatism is a criterion that affects the authentication of the value of assets and liabilities related to the financial reporting of enterprises. The role of the board of directors is to supervise the information quality of an enterprise. The purpose of the paper is to examine how the board of directors influences the information quality of financial reporting through accounting conservatism. The survey sample includes 100 listed enterprises that have the highest capitalization in Vietnam’s stock market. Time series data taken for the last five years are published by enterprises from 2018 to 2022. The paper implements the quantitative method of ordinary least squares to test the hypotheses. The results explore that board size, board independence, and audit organization affect the information quality of financial reporting through accounting conservatism. Accordingly, board size has the strongest influence, and board independence has the weakest effect on the information quality of financial reporting through accounting conservatism. The research suggests some policies for Vietnamese listed enterprises to have appropriate regulations for the board of directors and strengthen control of the information quality of financial reporting.

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supporting

confidence: 89%

“…However, ownership concentration sometimes also improves the performance of the enterprises. It can ensure selection accounting policies to reduce opportunistic behaviors and increase investor confidence (Mrad, 2022). Elshandidy and Hassanein (2014) find that ownership concentration affects conservatives.…”

Section: Ownership Concentrationmentioning

confidence: 99%

The board of directors influence on the information quality of financial reporting through accounting conservatism – Empirical evidence on Vietnamese listed enterprises

Tuan

Thinh

Thuy

2023

Investment Management and Financial Innovations

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“…It has also been proven that accounting conservatism can help raise the value of the company and its stock. Accounting conservatism could facilitate directors, particularly outside directors, as a beneficial tool in showing their responsibilities of ratifying and monitoring crucial decisions [9]. As a result, the stronger board with more independence in decision-making is likely to be efficient at appreciating the benefits of conservatism, so they are more inclined to require conservative accounting practices [10].…”

Section: -Introductionmentioning

confidence: 99%

Ownership Concentration and Accounting Conservatism: The Moderating Role of Board Independence

Phan

Ngo

et al. 2022

Emerg Sci J

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The purpose of this study is to examine the moderating effect of board independence on the relationship between ownership concentration and accounting conservatism. Using fixed-effect regressions for a sample of 165 Vietnamese listed companies from 2007 to 2017, the results revealed that the proportion of outstanding shares owned by the largest shareholder is negatively associated with accounting conservatism and board independence plays a moderating role in this relationship. Our results are robust after applying alternative measures of the largest ownership and correcting for potential endogeneity using fixed-effects regression with instrumental variables. Overall, our evidence shows that firms with concentrated ownership should keep a high non-executive ratio to maintain accounting conservatism. In other words, increasing the number of non-executive directors on boards in firms with a substantial proportion of shares held by the largest shareholder is likely to strengthen the information environment, giving financial reporting more credibility.JEL Classification: G30; G32. Doi: 10.28991/ESJ-2023-07-01-07 Full Text: PDF

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“…The effect of being a listed entity on conservatism is not clear. While Mrad (2022) mentioned that prior literature indicates that the mandatory adoption of IFRS standards in France has decreased the accounting conservatism of French-listed entities this author finds evidence that French cross-listed firms in the US tend to have a more conservative accounting practice. Furthermore, Cerqueira and Pereira (2020) found that European entities tend to be more conservative and their results suggest that it is higher in commonlaw countries as a response to investors' demand for conservatism in financial statements.…”

Section: Revaluations' Determinants and Hypotheses Developmentmentioning

confidence: 89%

Conservatism and its determinants for Portuguese small and medium entities

Pereira¹,

Gomes²,

Martins³

2023

Int. j. adv. appl. sci.

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In this study, we aim at analyzing whether Portuguese small and medium entities (SMEs) are accounting conservatively and what the determinants for conservatism are. While conservatism remains on accounting for a long time, both within the local accounting standards and IFRS firms may opt for a revaluation model to subsequently measure fixed assets. As the number of assets may be carried to higher values than firm becomes less conservative. Therefore, we propose that revaluations are a negative proxy for conservatism. We find that revaluations are not used in an often manner and they are higher for listed than for unlisted firms. Furthermore, our results suggest that debt and firm size are both positively associated with conservatism. Both associations are more significant for listed than non-listed firms. In addition, return on equity tends to increase conservatism, but only for the most indebted unlisted firms. These pieces of evidence are consistent with conservatism being a mechanism to regulate managers’ activity and to capture the confidence of stakeholders.

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Accounting conservatism and corporate cross- listing: The mediating effect of the corporate governance

Cited by 7 publications

References 84 publications

The board of directors influence on the information quality of financial reporting through accounting conservatism – Empirical evidence on Vietnamese listed enterprises

The board of directors influence on the information quality of financial reporting through accounting conservatism – Empirical evidence on Vietnamese listed enterprises

Ownership Concentration and Accounting Conservatism: The Moderating Role of Board Independence

Conservatism and its determinants for Portuguese small and medium entities

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