scholarly journals Study on the Influence of Accounting Conservatism on Investment Efficiency—Based on the Perspective of Board Characteristics

2019 ◽  
Author(s):  
JIN-PING LIU ◽  
YU-JING CUI
Keyword(s):  
Accounting Conservatism ◽  
Investment Efficiency ◽  
Board Characteristics

The impact of board characteristics on corporate investment decisions: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Board Of Directors ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Independent Directors ◽  
Investment Efficiency ◽  
Content Type ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
The Impact

Purpose The purpose of this study is to investigate the influence of board characteristics on firms’ investment decisions. Design Methodology Approach The study used data sourced from annual reports of firms listed on the Ghana Stock Exchange from 2014 to 2018. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by a regression analysis which forms the main data analysis. Findings The multiple regression analysis results indicated that the proportion of independent directors and financial experts on the board are negatively related to firm investment. These findings imply that independent directors and financial experts on the board can help firms reduce overinvestment and improve investment efficiency. Originality Value The extant literature shows that the board of directors are an effective mechanism to reduce agency problems in firm decisions and operating performance. However, there has been little research on the role of the board of directors in corporate investment policy.

Gender diversity, financial expertise and its effects on accounting quality

2017 ◽  
Vol 55 (2) ◽  
pp. 347-382 ◽  
Author(s):  
Isabel-Maria García-Sánchez ◽  
Jennifer Martínez-Ferrero ◽  
Emma García-Meca
Keyword(s):  
Earnings Quality ◽  
Investor Protection ◽  
Gender Diversity ◽  
Accounting Conservatism ◽  
Accounting Quality ◽  
Content Type ◽  
Board Characteristics ◽  
Financial Expertise

Purpose The purpose of this paper is to analyze whether gender diversity on board and financial expertise on audit committee affect accounting conservatism in banking sector. Additionally, the authors focus on the effects of board characteristics on bank earnings quality and examine their effects on earnings persistence. Design/methodology/approach The authors use a large sample of 159 banks from nine different countries from the period 2004-2010. The authors study whether the differences in the timeliness of earnings to bad news and earnings quality across governance structures of banks are driven by differences across investor protection and bank regulation levels in banks. Findings The findings confirm the monitoring role of both female and financial experts, noting a positive effect of them on accounting conservatism and earnings quality in banks. According to the institutional characteristics, the results suggest the complementary role of banking regulation and investor protection levels in these effects, noting that in contexts of higher regulatory and greater investor protection environments, gender diversity and financial expertise on boards have more influence on the conservatism and earnings quality of banks. Originality/value The authors contribute to both the accounting quality literature and the corporate governance literature by identifying board characteristics that are associated with higher conservatism and quality of earnings in banks around the world. In addition, this study also contributes to the ethics literature by highlighting the benefits of gender diversity and financial expertise in upholding the integrity of financial reporting. Moreover, this paper adds to prior literature about board of directors and accounting quality by identifying additional complementary factors – bank regulation and investor protection – and by focusing on a specific industry, the banking industry.

scholarly journals Moderating Effect of Financial Constraint on Relationship Between Accounting Conservatism and Investment Efficiency of Nigerian Consumer Goods Firms

2021 ◽  
Vol 1 (1) ◽  
pp. 25-42
Author(s):  
Aminu Lawal ◽  
Shehu Usman Hassan
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Secondary Data ◽  
Moderating Effect ◽  
Accounting Conservatism ◽  
Investment Efficiency ◽  
Financial Constraint ◽  
Moderation Effect ◽  
Ex Post ◽  
The Impact

This study explores the moderating effect of financial constraint on relationship between Accounting conservatism and investment efficiency of consumer goods firms listed on the Nigerian Stock Exchange market. The study used correlational and ex-post facto research design in a sample of 27 consumer goods firms. Secondary data for a period of 10 years (2010-2019) was used, and Advanced panel multiple regression was employed in data analysis. The results obtained from this research indicate that there is a significant relationship between accounting conservatism and investment efficiency. The study also found that there is a significant moderation effect between accounting conservatism and financial constraint on defining investment efficiency of consumer goods firms in Nigeria. The study concludes by showing that financial constraint has antagonistic role to accounting conservatism on explaining investment efficiency thus, conservatism may not improve investment efficiency in firms facing financial constraints. The study suggests that consideration of firms financial conditions should form an essential part of any analysis towards understanding the impact of Accounting conservatism more especially on investment behaviour, because of the influence financial constraint has on accounting conservatism is antagonistic in nature

scholarly journals ACCOUNTING CONSERVATISM AND INVESTMENT EFFICIENCY OF LISTED NIGERIAN CONGLOMERATE FIRMS

2017 ◽  
Vol 3 (11) ◽  
pp. 167
Author(s):  
Lawal Aminu ◽  
Shehu Usman Hassan
Keyword(s):  
Decision Making ◽  
Positive Relationship ◽  
Ordinary Least Squares ◽  
Accounting Conservatism ◽  
Investment Efficiency ◽  
Statistical Software ◽  
Independent Variables ◽  
Simple Regression Analysis ◽  
The Relationship ◽  
Simple Regression

This study explores the relationship between Accounting conservatism and investment efficiency in Nigeria. The study model examined the relationship between the independent variables (Accounting conservatism) and the dependent variable of investment efficiency, by applying the simple regression analysis of 10 years data Ordinary Least Squares (OLS) which cover the period of 2005-2014. All of tests have been done using stata11 statistical software. The results obtained from this research indicate that there is a significant relationship between accounting conservatism and investment efficiency. The study concluded that there is a positive relationship between Accounting conservatism and investment efficiency in Nigerian conglomerate firms. The study suggest that need to embrace the element of conservatism in to the accounting regulatory framework, because of it role in constraining managers to act efficiently in an investment monitoring and decision making.

Sign in / Sign up

Export Citation Format

Share Document