scholarly journals Discretionary accruals, liquidity and corporate governance index in Brazil

2008 ◽  
Vol 5 (3) ◽  
pp. 26-33 ◽  
Author(s):  
Ricardo Lopes Cardoso ◽  
André Carlos Busanelli de Aquino ◽  
Jose Elias Feres de Almeida ◽  
Antonio Jose Barbosa das Neves
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Discretionary Accruals ◽  
Original Model ◽  
Empirical Results ◽  
Accounting Choices ◽  
Level Ii ◽  
Governance Index ◽  
The Capital Market

This study investigates if the level of discretionary accruals (DAs) is different for companies whose corporate governance level is certified by Bovespa compared to those ones that are not. And also for companies whose stocks negotiated at Bovespa have high liquidity compared to the ones with low liquidity. The main purpose is to comprehend the phenomenon of accounting choices (measured as DAs), its incentives and counter-incentives. In this context, the issues were: i) Is there any difference of DAs intensity between certified and non-certified companies, considering the corporate governance level?; ii) Is there any difference of DAs intensity with high liquidity stocks at Bovespa and those ones with low liquidity? This research took into consideration Jones` original model (1991), a sample with 1,791 observations collected from 1997 to 2004. Empirical results from our study show that there is no significant statistic difference in the level of DAs between the firms listed or not in the corporate governance index. This suggests the need to consider incentives and counter-incentives from the capital market to those different set of firms, in relation with accounting choices

scholarly journals Corporate governance reporting: Compliance with upper limits for severance payments to members of executive boards in Germany

2020 ◽  
Vol 2 (2) ◽  
pp. 18-32 ◽  
Author(s):  
Alexander Dilger ◽  
Ute Schottmüller-Einwag
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Corporate Governance Code ◽  
Severance Payments ◽  
Upper Limits ◽  
Executive Boards ◽  
Comparative Corporate Governance ◽  
The Capital Market

We examine how corporate governance reporting corresponds to actual conduct regarding severance payment caps for prematurely departing members of executive boards in Germany. Firstly, we evaluate the declarations of conformity for all companies listed in the CDAX between 2010 and 2014, which we use to determine conformity and deviation rates, and analyse the reasons for deviation, contributing to current research on comparative corporate governance, which focuses on when, why and how companies deviate from legitimate corporate governance goals (Aguilera, Judge, & Terjesen, 2018). Secondly, we assess the compensation amounts of all severance payments made and published by DAX companies to compare the respective severance ratio with the cap recommended by the German Corporate Governance Code (GCGC). We find that more than 20% of companies listed in the CDAX declared deviation in the declaration of conformity. Moreover, in 57% of actual severance cases where DAX companies had previously declared their conformity, the cap was exceeded. Yet, none of the companies that had exceeded the cap disclosed this in the following declaration of conformity. In most cases, the corporate reports deviated from reality and therefore could not serve as a suitable basis for decisions by the capital market.

scholarly journals Quality of corporate governance: Contribution to improving companies performance in Bosnia and Herzegovina

2021 ◽  
Vol 9 (2) ◽  
pp. 19-33
Author(s):  
Slobodan Marin ◽  
Rade Tešić ◽  
Milan Šušić
Keyword(s):  
Corporate Governance ◽  
Bosnia And Herzegovina ◽  
Capital Market ◽  
Business Performance ◽  
Business Environment ◽  
Governance System ◽  
Corporate Governance System ◽  
Business Conditions ◽  
The Capital Market

A quality corporate governance system is a basic prerequisite for a sustainable growth economy, more easily increasing the efficiency of the economic system and guaranteeing access to external sources of capital. The level of quality of corporate governance can be defined as the degree of fulfillment of set standards of corporate governance defined at the international and national institutional level. In the new, modern business conditions, with strong dynamic changes in the social and business environment, modern corporate companies, ie their management bodies, are taking on new characteristics, adapting to new requirements and challenges. In this sense, the new demanding business conditions require continuous improvement of corporate governance potential. Based on previous theoretical and empirical knowledge, Bosnia and Herzegovina has the characteristics of a closed corporate governance system in both entities, so, as a basis for developing models for measuring the level of corporate governance, selected models that measure corporate governance in countries with typical closed corporate governance systems. A significant number of studies show that corporations that achieve higher standards and better corporate governance practices also have better business performance results and thus greater value in the capital market. This means that corporations with a higher level of corporate governance also have better financial operating results, easier access to financial capital, and greater value in the capital market. The main purpose of the research is to determine the level of influence of the quality of corporate governance on business performance, ie to determine whether corporations that had good corporate governance had higher business liquidity and vice versa. The main goal of the research is to establish the link and relationship between quality and corporate performance management indicators of the corporation's business.

scholarly journals The determinents of accruals based earnings management :case of listed Moroccan companies

2017 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Sanae Hoummani ◽  
Said Radi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Discretionary Accruals ◽  
The Other ◽  
Growth Opportunities ◽  
Negative Relation ◽  
Empirical Results ◽  
Concentrated Ownership ◽  
Corporate Governance Mechanisms ◽  
Effective Role

This article aims to identify the determinants of accruals based earning's management in Moroccan listed companies. On one hand, it examines the relation between discretionary accruals as the measure of earning's management and what literature documents as incentives to this practice, in particular, politico-contractual motivations, the avoidance of losses and earnings decreases and growth opportunities. On the other hand, it investigates whether corporate governance mechanisms may constrain management's opportunistic behaviors. The empirical results provide evidence that managers manipulate earnings in the presence of losses and, that growing firms is more likely to engage in earning's management. In terms of constraining factors, our findings indicate a negative relation between discretionary accruals and both institutional and concentrated ownership. Thus, we suggest that these shareholders play an effective role on monitoring managers.

scholarly journals Company’s Sustainability and Accounting Conservatism: Firms Delisting from KOSDAQ

2019 ◽  
Vol 11 (6) ◽  
pp. 1775 ◽  
Author(s):  
Hyuk Shawn ◽  
Yun-wha Kim ◽  
Jae-gyung Jung
Keyword(s):  
Capital Market ◽  
Earnings Quality ◽  
Reporting Quality ◽  
Discretionary Accruals ◽  
Accounting Conservatism ◽  
Litigation Risk ◽  
Reported Earnings ◽  
Quality Measurements ◽  
The Capital Market

This paper finds evidence that delisting firms make reported earnings more conservative to avoid litigation risk. Conservatism has been used as one of suitable reporting quality measurements that is separate from discretionary accruals, in that investors can monitor the firm’s contract efficiency or litigation risk by demanding conservatism. We collect a sample that is composed of 6348 listed non-financial companies for the period 2009–2016. Our results are as follows. First, we find that companies ahead of delisting are more conservative than other companies in Korean Securities Dealers Automated Quotations (KOSDAQ). Second, companies that are ahead of delisting whose auditor is non-big4 are significantly more conservative. Our results imply that companies that are in the process of delisting are seeking to increase their sustainability and to improve earnings quality, such as conservatism, and that small auditors are more conservative in order to mitigate the higher risk of litigation in comparison with big4 auditors. This study has a role to complement prior studies regarding delisting, and provides that the delisting institutions in KOSDAQ market can improve the efficiency and the reliability of the capital market.

Current Disclosure and Transparency Practices in Saudi Corporate Governance

2014 ◽  
Vol 28 (2) ◽  
pp. 176-192 ◽  
Author(s):  
Faleh Salem al-Kahtani
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Annual Reports ◽  
Governance System ◽  
Corporate Governance System ◽  
The Capital Market

This article will investigate the current disclosure and transparency practices in the Saudi corporate governance system. The purpose of this article is to examine whether the disclosure and transparency requirements are satisfied, adequate and respected by the Saudi listed corporations. The disclosure and transparency prerequisites are also measured, and some of the main facets that have been sustained until now by the listed corporations are explored. In particular, a variety of the main disclosure and transparency ideologies that have been violated by some of the listed corporations are provided. In additional, the significance of disclosure and transparency in company annual reports is debated. The Capital Market Authority Board has consequently imposed fines on listed corporations responsible for violations. The Capital Market Authority Board has taken the defamation approach as punishment for such listed corporations.

scholarly journals Momentous of Corporate Governance in the Capital Market

2018 ◽  
Vol Volume-2 (Issue-5) ◽  
pp. 1055-1061
Author(s):  
Mayank Goyal ◽  
Dipanshu Mishra ◽  
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
The Capital Market

KURUMSAL YÖNETİM ENDEKSİ KAPSAMINDAKİ İŞLETMELERİN FİNANSAL PERFORMANS ANALİZİ

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Fatih Temizel ◽  
Hamza Doğan ◽  
Berfu Ece Bayçelebi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Capital Market ◽  
Solution Method ◽  
Topsis Method ◽  
Governance Index ◽  
Order Preference ◽  
Topsis Technique ◽  
Independent Rating ◽  
Performance Ranking

According to regulations of Capital Market Board (CMB), Corporate Governance Principles Compliance Notes are given by independent rating institutions to companies whose shares are traded on Borsa İstanbul. Via those notes the 50 most successful companies on corporate governance are determined. In order to obtain indicators for the price and yield analysis, the 50 most successful shares are included in the Borsa İstanbul Corporate Governance Index. In this study with the exception of financial sector companies, financial performance ranking of 34 out of 50 companies of the Corporate Governance Index is performed by TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method. TOPSIS method was used based on the 10 financial ratios of the companies. 5 year performance rankings covering the years 2011-2015 were obtained and the ranking changes were examined. Finally, the 5-year average performance rankings were calculated and financial performance ratings of the companies in the index for 5 years is revealed.

scholarly journals Notícias do mercado de capitais e janelas de eventos para adesões e migrações aos NDGCs

2018 ◽  
Vol 17 (1) ◽  
pp. 245-282
Author(s):  
Ricardo Adriano Antonelli ◽  
Ademir Clemente ◽  
Romualdo Douglas Colauto
Keyword(s):  
Corporate Governance ◽  
Qualitative Analysis ◽  
Event Study ◽  
Market News ◽  
Capital Market ◽  
Event Studies ◽  
The Capital Market

Resumo: Neste artigo teve-se como objetivo analisar a influência das notícias relacionadas ao mercado de capitais na determinação da janela do evento para adesões e migrações aos Níveis Diferenciados de Governança Corporativa (NDGCs) da B3 (Brasil, Bolsa, Balcão). A metodologia emprega quatro etapas: determinação do melhor tamanho da janela para 104 empresas; análise do tamanho das janelas consideradas outliers; análise qualitativa das notícias referentes à janela do evento para os outliers, com base no Bloomberg®; e aplicação do Estudo de Eventos para os casos considerados outliers. Os resultados encontrados indicaram uma tendência de pequenas janelas, limitadas a 5-5 dias para cerca de 59,6% dos casos. Para os 42 casos considerados outliers, isto é, janela maior que 5-5 dias, foram encontradas notícias para 61,9%, dos quais apenas 6 casos apresentaram dummies significativas no Estudo de Eventos. A metodologia utilizada conseguiu explicar 68 casos em que houve adesão, migração ou notícia.Palavras-chave: Governança Corporativa. Estudo de eventos. Janelas de eventos. Notícias. Capital market news and windows of events for accessions and migrations to NDGCs Abstract: This article aims to analyze the influence of news related to the capital market in determining the window of the event for accessions and migrations to the BM&FBovespa NDGCs. Four steps are followed: determinig the best size of the window for 104 companies; analysing the size of the Windows which are considered outliers; qualitative analysis of the news related to the window of events for outliers, based on Bloomberg®; and application of the Event Studies for the cases considered outliers. The results of the study indicated a tendency of small windows, limited to 5-5 days for about 59.6% of the cases. For the 42 cases considered outliers, i.e, window bigger than 5-5 days, news was found for 61.9%, from which just 6 ones got meaningful dummies in the Event Study. Even though, the applied methodology succeded explaining 68 of the cases in which there was accession, migration or news.Keywords: Corporate Governance. Windows of Events. Janelas de eventos. News.

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