The World Price of Earnings Opacity

Bhattacharya, Utpal; Daouk, Hazem; Welker, Michael

doi:10.2139/ssrn.282117

Cited by 189 publications

(167 citation statements)

References 54 publications

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“…The accounting standards for Singapore and Malaysia are based on International Accounting Standards, which are less stringent than US GAAP. Bhattacharya et al (2003) compare earnings management across countries in terms of increasing earnings, negative earnings avoidance and earnings smoothing. From their data, Singapore and Malaysia are similar in terms of "earnings opacity" but different from countries that have been used in prior research (US, UK and Australia).…”

Section: (2) Institutional Settingmentioning

confidence: 99%

Board Characteristics, Audit Committee Characteristics and Abnormal Accruals

Bradbury

Mak

Tan

2006

Pacific Accounting Review

180

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. ABSTRACT This paper examines the relation between governance (as measured by board and audit committee characteristics) and accounting quality (as measured by abnormal accruals) in a settingwhere there is no a priori reason to suspect systematic management of earnings. Using data from Singapore and Malaysia, we fi nd both board size and audit committee independence are related to lower abnormal working capital accruals. Furthermore, the relation between audit committee independence and higher quality accounting exists only when the abnormal accruals are income increasing. This suggests that audit committees are effective in the fi nancial reporting process by reducing the level of income increasing abnormal accruals. The results also indicate that audit committees are effective only when all members are independent directors.

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Section: (2) Institutional Settingmentioning

confidence: 99%

Board Characteristics, Audit Committee Characteristics and Abnormal Accruals

Bradbury

Mak

Tan

2006

Pacific Accounting Review

180

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“…Existing literature does not seem to provide clear indication with regard to this assumption. Some studies find that the market is able to properly assess the quality of earnings (Bhattacharya et al, 2003;Desai et al, 2006;Francis et al, 2005a;Gaio and Raposo, 2011;Hennes et al, 2008). Other studies suggest that the market fails to properly assess the quality of earnings in a timely manner (Chan et al, 2006;Collins and Hribar, 2000;Richardson, 2003;Sloan, 1996;Xie, 2001).…”

Section: Prior Literature and Hypothesis Developmentmentioning

confidence: 99%

Stock Options, Idiosyncratic Volatility, and Earnings Quality

Alam

Liu²,

Liu

et al. 2015

Rev. Pac. Basin Finan. Mark. Pol.

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Rev. Pac. Basin Finan. Mark. Pol. 2015.18. Downloaded from www.worldscientific.com by FLINDERS UNIVERSITY LIBRARY on 10/12/15. For personal use only.earnings quality and idiosyncratic volatility: Hence, the lower the earnings quality, the greater the idiosyncratic volatility, and the higher the value of stock options. This study investigates whether there is a link between CEO equity compensation and earnings quality. Using a simultaneous system of equations, we find negative correlations between the two, suggesting that managers have incentives to reduce earnings quality.

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“…For example, Ball et al (2000) classified seven countries based on legal tradition into code law and common law countries. Bhattacharya et al (2003) classified thirty-four countries based on characteristics of financial accounting variables of firms in each country. Saudagaran and Diga (1997) used disclosure scores for forty-one countries.…”

Section: Accounting Standardsmentioning

confidence: 99%

Accounting Regulation, Financial Development, and Economic Growth

Akisik

2013

Emerging Markets Finance and Trade

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This paper examines the relationship between accounting regulation, financial development, and economic growth in fifty-one developed and emerging market economies over the period 1997-2009. Accounting regulation has been the center of long-lasting debates in the accounting profession. The debates came to the forefront after several spectacular financial reporting frauds and scandals in the early 2000s damaged public confidence in capital markets. Using generalized method of moments estimation techniques, this study provides evidence that accounting regulation has a strong effect on economic growth even after controlling for a number of macroeconomic and socioeconomic variables.

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The World Price of Earnings Opacity

Cited by 189 publications

References 54 publications

Board Characteristics, Audit Committee Characteristics and Abnormal Accruals

Board Characteristics, Audit Committee Characteristics and Abnormal Accruals

Stock Options, Idiosyncratic Volatility, and Earnings Quality

Accounting Regulation, Financial Development, and Economic Growth

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