scholarly journals The Role of Financial Reporting Quality in mitigating the Restrictive Effect of Dividend Policy on Capital Investment Expenditure: An empirical study

2017 ◽  
Vol 39 (1) ◽  
pp. 43-71
Author(s):  
رحاب محمود حسن
Keyword(s):  
Empirical Study ◽  
Financial Reporting ◽  
Capital Investment ◽  
Dividend Policy ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Investment Expenditure

The Role of Financial Reporting Quality in Mitigating the Constraining Effect of Dividend Policy on Investment Decisions

2013 ◽  
Vol 88 (3) ◽  
pp. 1007-1039 ◽  
Author(s):  
Santhosh Ramalingegowda ◽  
Chuan-San Wang ◽  
Yong Yu
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Dividend Policy ◽  
Investment Decisions ◽  
Reporting Quality ◽  
Data Availability ◽  
Financial Reporting Quality ◽  
High Quality ◽  
Investment Projects

ABSTRACT Miller and Modigliani's (1961) dividend irrelevance theorem predicts that in perfect capital markets dividend policy should not affect investment decisions. Yet in imperfect markets, external funding constraints that stem from information asymmetry can force firms to forgo valuable investment projects in order to pay dividends. We find that high-quality financial reporting significantly mitigates the negative effect of dividends on investments, especially on R&D investments. Further, this mitigating role of financial reporting quality is particularly important among firms with a larger portion of firm value attributable to growth options. In addition, we show that the mitigating role of high-quality financial reporting is more pronounced among firms that have decreased dividends than among firms that have increased dividends. These results highlight the important role of financial reporting quality in mitigating the conflict between firms' investment and dividend decisions and thereby reducing the likelihood that firms forgo valuable investment projects in order to pay dividends. Data Availability: Data are available from public sources identified in the paper.

Labor and Finance: The Role of Financial Reporting Quality

2019 ◽  
Author(s):  
Boochun Jung ◽  
Woo-Jong Lee ◽  
David P. Weber ◽  
Daniel Yang
Keyword(s):  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality

Regulation of capital flows: Effects on liquidity and the role of financial reporting quality

2020 ◽  
Vol 175 ◽  
pp. 86-97
Author(s):  
Kyriaki Kosmidou ◽  
Dimitrios Kousenidis ◽  
Anestis Ladas ◽  
Christos Negkakis
Keyword(s):  
Financial Reporting ◽  
Capital Flows ◽  
Reporting Quality ◽  
Financial Reporting Quality

AUDIT COMMITTEE AND AUDIT CHANGE: EMPIRICAL EVIDENCE FROM THE EMERGING MARKET

2012 ◽  
Author(s):  
Zaitul Zaitul
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Practical Implication ◽  
Emerging Market ◽  
Reporting Quality ◽  
Theoretical Implication ◽  
Financial Reporting Quality ◽  
Financial Expertise ◽  
The Relationship

This study aims to investigate the relationship between audit committee and audit change in listed Indonesia Company. We use four variables for audit committee that is independence, size, financial expertise and activity. Besides, this study also uses three control variables (ROA, LEV, and SIZE). By using the Binary Logic Model (BLM) with panel data for 654 observation, we find that all hypotheses are rejected which means that there is no role of audit committee in determining the audit change. However, big and company with the higher leverage is less likely to change audit, firm. This finding has a practical and theoretical implication. For practical implication, regulator or government agent can increase the financial reporting quality by improving the role of audit committee by changing related mechanism.

scholarly journals The Role of Financial Reporting Quality in Accessing to Financial Debt: Evidence From Italy

2018 ◽  
Vol 8 (3) ◽  
pp. 278
Author(s):  
Andrea Rey ◽  
Giovanni Landi
Keyword(s):  
Financial Reporting ◽  
Financial Institution ◽  
Reporting Quality ◽  
Positive Association ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Accounting Quality ◽  
Accrual Quality

This paper aims to assess whether financial reporting quality affect the access of Italian Non-SME firms to financial debt. In order to measure the financial reporting quality, we assume as proxy the accrual quality. We carried out a regression analysis, using financial statement data of firms sampled. The results reveal a positive association between financial reporting quality and the access to bank and financial institution debt. In addition, our findings also show no association between financial debt maturity and the accounting quality of firms.

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