The effect of financial reporting quality on corporate investment efficiency: Evidence from the Tunisian stock market

Houcine, Asma

doi:10.1016/j.ribaf.2017.07.066

Cited by 46 publications

(65 citation statements)

References 64 publications

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“…Empirically has not found the role of moderation with firm size (firm size) linking the ownership structure with fraud financial statements. In the form of this research study, firm size factors have a significant influence and moderate the relationship between ownership structure and fraud financial statements (Dowdell et al, 2014;Houcine, 2017). The size of the firm is an important factor related to the ownership structure because if the size of the firm is bigger, more information for investors in relation to the investments were made.…”

Section: Effect Of Moderation Firm Size Between Ownership Structure Amentioning

confidence: 94%

“…The greater the domestic ownership will be more effective in controlling all the actions that are opportunistic made by management. Controls will leading the management to be careful at low levels in using debt to anticipate financial distress and Financial risk and will minimize fraud in financial reporting (Crutchley, 1999;Dowdell, et al, 2014;Houcine, 2017). Domestic share ownership has a better ability to supervise management in managing the company.…”

Section: Effect Of Domestic Ownership On Fraud Financial Statementmentioning

confidence: 99%

“…Jensen and Meckling (1976) argued that public ownership would result in better management of the corporate system due to more corporate oversight of shareholders. The higher the percentage of public stock ownership of the company will press the management in the presentation of information on a regular basis and on time, because the accuracy will have an impact on economic decision-making (Houcine, 2017) H3: Influential Public Institutional Ownership in Fraud Disclosure Financial Reporting.…”

Section: Effect Of Public Ownership On Fraud Financial Statementmentioning

confidence: 99%

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Corporate Governance in Detecting Lack of Financial Report

Syamsudin

Imronudin

Utomo

et al. 2017

JDM

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Fraudulent financial statements begins with the act of manipulating the financial statements for personal gain. Efforts to fulfill obligations on the rights of stakeholders make corporate governance play an important role in minimizing the occurrence of fraudulent financial statements. This study aims to investigate the phenomenon of corporate governance in detecting fraud or irregularities in the preparation of financial statements. Fraud detection is measured by the Beneish model.. The sample used in this research is 694 with manufacturing company period 2011-2015. Sampling technique with purposive sampling method. To test the Hypothesis used logistic regression analysis with moderation model. The results obtained are foreign ownership, domestic ownership and public ownership significant negative effect on fraud financial statement. While firm size has a significant positive effect fraud financial statement. Firm size as a moderating variable further strengthens the relationship between foreign ownership, domestic ownership and public ownership of fraud financial statements. AbstrakKecurangan laporan keuangan diawali dengan perbuatan memanipulasi laporan keuangan demi mendapatkan keuntungan pribadi. Upaya pemenuhan kewajiban terhadap hak para stakeholder membuat corporate governance berperan penting dalam meminimalisir terjadinya kecurangan laporan keuangan. Penelitian ini bertujuan untuk menyelidiki fenomena corporate governance dalam mendeteksi kecurangan atau penyimpangan dalam penyusunan laporan keuangan. Sampel yang digunakan pada penelitian ini yaitu 694 dengan perusahaan manufaktur periode 2011-2015. Teknik pengambilan sampel dengan metode purposive sampling. Untuk menguji hipotesis digunakan analisis regresi logistik dengan model moderasi. Hasil penelitian yang didapat adalah kepemilikan asing, kepemilikan domestik, dan kepemilikan publik berpengaruh negatif signifikan terhadap fraud financial statement. Sedangkan firm size memiliki pengaruh positif signifikan fraud financial statement. Firm size sebagai variabel moderasi semakin memperkuat hubungan antara kepemilikan asing, kepemilikan domestik, dan kepemilikan publik terhadap fraud financial statement.

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Section: Effect Of Moderation Firm Size Between Ownership Structure Amentioning

confidence: 94%

Section: Effect Of Domestic Ownership On Fraud Financial Statementmentioning

confidence: 99%

Section: Effect Of Public Ownership On Fraud Financial Statementmentioning

confidence: 99%

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Corporate Governance in Detecting Lack of Financial Report

Syamsudin

Imronudin

Utomo

et al. 2017

JDM

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“…Until recently, scholars have been trying to prove the existence of earnings smoothing activities (Beidleman, 1973;Boterenbrood, 2014;Khalil & Simon, 2014), figuring how (Atik, 2009;Francis et al, 2016) and when (Gassen et al, 2006;Gill de Albornoz & Alcarria, 2003) managers smooth earnings, characterizing earnings smoothing firms Bouwman, 2014;Z. Huang & Xue, 2016;Safdar & Yan, 2016;Silhan, 2014), and most importantly understanding the motivation (Goel & Thakor, 2003;Lambert, 1984;Trueman & Titman, 1988) and consequences (Houcine, 2017;Shubita, 2015;Tucker & Zarowin, 2006) of such behavior. This paper aims to review prior literatures, specifically on the role of earnings smoothing.…”

Section: Introductionmentioning

confidence: 99%

Earnings Smoothing as Information Signaling or Garbling: A Review of Literature

Shabani

Sofian²

2018

AJFA

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Earnings smoothing, which refers to the action of managers managing earnings to reduce fluctuations of reported earnings, is a special type of earnings management because while earnings smoothing may be used to distort shareholders and creditors' view of corporate actual performance, it may also serve as a tool to communicate corporate private information of future earnings to the aforementioned stakeholders. Hence, it comes to no surprise when prior literatures reveal that the studies on the role of earnings smoothing are divided into two streams: as information signaling and information garbling. This paper aims to review prior literatures, specifically on the role of earnings smoothing either as information signaling or garbling based on four themes: firm value, financing need, compensation contract and outsiders' intervention. This paper reviews journal articles gathered from Web of Science database. Based on the shortcomings of prior literatures, this paper highlights avenue for future research.

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“…To optimize portfolio, nonlinear mathematical models for some were specified and presented then using the change of variables technique that in operations research literature is a simple technique, two models could merged and integer linear model variables were created and the results were used to calculate the software Lingo.If Policy makers in this area are interested that in addition to considering cutting alpha, to have amounts parameters such as the total budget and each budget and also the annual output value, also have the optimum values, for this purpose, the following table represents sensitivity analysis to policymakers: Research finds out that some characteristics of earnings quality, such as reliability and smoothness, appear to influence the investment efficiency [27]. High earnings quality will help investors choose the efficient investments, while earnings management reduces earnings quality and thus affects investor's decision.…”

Section: Literature Review On Effects Of Earnings Management On Invesmentioning

confidence: 99%

Effects of Earnings Management to Investor Decision –Empirical Evidence in Vietnam Stock Market

Hong

Linh

2020

Wseas Transactions on Environment and Development

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Earnings result reflects business performance and hence earnings quality plays an important role in making investment decision of investors. However, little research has been done regarding the effects of earnings management on investor decision. In this study, we examine the effects of earnings management on investor decision and look for empirical evidences with a sample consisting of 2,980 firm-year observations from 669 companies listed on two main stock exchanges of Vietnam during the five-year period 2013-2017. This study conducts a multivariate linear regression, in which investor decision is the dependent variable and earnings management is one of the regressors. The random effect model, which is the most appropriate model in our study, reveals that the higher level of earnings management of a company, the more likely investors decide to own shares of that company, implying a warning sign for investors. Besides, investors prefer to own shares of companies with high ROE and low financial leverage, while investor’s decision is not significantly affected by type of auditors, revenue growth or asset size of the companies. However, price factor is not examined in this study and could be an extension of future research.

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The effect of financial reporting quality on corporate investment efficiency: Evidence from the Tunisian stock market

Cited by 46 publications

References 64 publications

Corporate Governance in Detecting Lack of Financial Report

Corporate Governance in Detecting Lack of Financial Report

Earnings Smoothing as Information Signaling or Garbling: A Review of Literature

Effects of Earnings Management to Investor Decision –Empirical Evidence in Vietnam Stock Market

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