scholarly journals An analysis of the effect of board characteristics and governance indices on the quality of accounting information

2014 ◽  
Vol 3 (3) ◽  
pp. 104-119
Author(s):  
Raef Gouiaa ◽  
Daniel Zéghal
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Accounting Information ◽  
Accounting Conservatism ◽  
The Other ◽  
Academic Governance ◽  
Board Characteristics ◽  
Quality Of Accounting Information

The objective of this study is to examine the effect on the quality of accounting information published by Canadian firms of board of directors’ characteristics compared to that of governance indices that measure board quality. We find that the majority of board characteristics have an important and significant effect on the levels of earnings management and accounting conservatism. On the other hand, in the case of the studied attributes of the quality of accounting information, we find that the effect of governance indices that assess the quality of boards of directors is not clearly established. Particularly, our results reveal that individual measures of the characteristics of boards of directors allow for a better detection and explanation of the quality of accounting information than do multi-factor commercial and academic governance indices.

scholarly journals Political and financial background in board interlocking and earnings management in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cristian Baú Dal Magro ◽  
Roberto Carlos Klann
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Accounting Information ◽  
Real Earnings Management ◽  
The Political ◽  
Content Type ◽  
Quality Of Accounting Information

Purpose Although board interlocking underlying forces are largely hidden, the purpose of this paper is to provide managers, auditors, analysts, regulators and other stakeholders with sociological board interlocking information considering the different backgrounds of their members. Design/methodology/approach The research sample gathered 1,606 observations from 2010 to 2017. For data analysis, the direct and indirect board interlocking linkages, considering the different backgrounds of board members, established the centrality indicators. Subsequently, the authors used these indicators according to each measured background in the regression models. Findings The results indicate that the political background of board interlocking members is positively related to real earnings management practices, while the financial background has a mitigating effect on such practices. Research limitations/implications The findings suggest that individual skills and interests conveyed across the corporate social network have shaped corporate governance, with distinct impacts on the quality of accounting information. Practical implications The authors conclude that both backgrounds could have implications on agency conflicts, increasing (policy) or reducing (financial) information asymmetry between the company and its various stakeholders, which indicates that the authors must consider sociological and not just economic aspects within corporate governance. Social implications The sociological background of individuals is necessary for the congruence of monitoring mechanisms, and consequently, the quality of accounting information. Originality/value This study examines the influence of the political and financial background of board interlocking members on real earnings management practices in Brazilian publicly traded companies in the International Financial Reporting Standards post-adoption period.

scholarly journals Study on the Influence of CFO Characteristics on Accounting Conservatism of Listed Companies

2021 ◽  
Vol 275 ◽  
pp. 03005
Author(s):  
Miao Yu
Keyword(s):  
Economic Development ◽  
Social Economy ◽  
Accounting Information ◽  
Personal Characteristics ◽  
Listed Companies ◽  
Accounting Conservatism ◽  
Quality Of Accounting Information ◽  
The Difference ◽  
The Relationship

As the information reflection of social economy, the quality of accounting information is closely related to economic development and market operation system. And accounting conservatism is one of the important standards to measure of quality of accounting information. As the maker and executor of the financial strategy of the listed company, the CFO’s different personal characteristics will affect its choice of different accounting policies, thus affecting the accounting conservatism of the enterprise. Therefore, this paper selects CFOs of A-share listed companies in Shanghai and Shenzhen from 2016 to 2018 as research objects, respectively discusses the influence of CFO’s natural attributes and social attributes on accounting conservatism, and analyzes the moderating effect of property rights and CFO’s power on the relationship between them. The results show that the CFO’s age, tenure, education, professional skills, salary and number of part-time jobs are negatively correlated with accounting conservatism. The female CFO, shareholding and concurrent director are significantly positively correlated with accounting conservatism. The difference of property right nature and CFO power moderates the relationship between CFO characteristics and accounting conservatism to some extent. On this basis, this paper puts forward corresponding suggestions on how to improve accounting conservatism and promote economic development.

scholarly journals The efficiency of accounting normalization in the matter Of intangibles: Asset versus Expense

2011 ◽  
Vol 1 (1) ◽  
pp. 72
Author(s):  
Ben Brahim Houneida ◽  
Mounira Ben Arab
Keyword(s):  
Balance Sheet ◽  
Accounting Information ◽  
The Other ◽  
Intangible Asset ◽  
Earnings Volatility ◽  
Future Earnings ◽  
Quality Of Accounting Information ◽  
Intangible Investments ◽  
The Future

Abstract In this paper, we seek to show if the intangible investments may accomplish the recognition’s criteria of an intangible asset and we show, thus, if these criteria are capable to preserve the quality of accounting information. We find that the capability of the intangible investments (R&D), immediately expensed, in the generation of future benefits is more important than the other investments (tangibles and intangibles investments recognized in the balance sheet). This capability is largely influenced by the engagement’s degree of the managers. Further, these investments are susceptible to diminish the future earnings volatility and, consequently, their future profits may be measured with reliability and capitalized in the balance sheet as an asset essentially for the firms that have a strong alignment between the manager’s and shareholder’s interest.

Accounting conservatism quality of accounting information and crash risk of stock prices

2014 ◽  
Vol 11 ◽  
pp. 120-137 ◽  
Author(s):  
Dimitrios V. Kousenidis ◽  
Anestis C. Ladas ◽  
Christos I. Negakis
Keyword(s):  
Stock Prices ◽  
Accounting Information ◽  
Accounting Conservatism ◽  
Crash Risk ◽  
Quality Of Accounting Information

scholarly journals A comparative analysis of the effect of board characteristics and governance indices on companies’ costs of financing: the Canadian evidence

2013 ◽  
Vol 11 (1) ◽  
pp. 136-150 ◽  
Author(s):  
Raef Gouiaa ◽  
Daniel Zéghal
Keyword(s):  
Boards Of Directors ◽  
Equity Capital ◽  
Cost Of Debt ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Academic Governance ◽  
Board Characteristics ◽  
Financing Costs ◽  
The Cost

The objective of this study is to examine the effect of board of directors’ characteristics compared to that of governance indices that measure board quality, on the costs of financing Canadian firms. We find that the majority of board characteristics have an important and significant effect on the cost of equity capital, the cost of debt and the average cost of capital. On the other hand, in the case of the financing costs studied, we find that the effect of governance indices that assess the quality of boards of directors is not clearly established. Particularly, our results reveal that individual measures of the characteristics of boards of directors allow for a better explanation of companies’ costs of financing than do multi-factor commercial and academic governance indices.

scholarly journals The ownership structure, the board of directors and the quality of accounting information

2013 ◽  
Vol 10 (4) ◽  
pp. 420-433 ◽  
Author(s):  
Nejla Ould Daoud Ellili
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Ownership Structure ◽  
Accounting Information ◽  
Poor Quality ◽  
Annual Data ◽  
Quality Of Accounting Information ◽  
The Board Of Directors ◽  
Recent Financial Crisis

High quality accounting information is vital for the accuracy of the financial statements, whereas poor quality information may lead to serious economic problems. The recent financial crisis has attracted the interest of many researchers in determining the factors that may affect the quality of accounting information. In this field, our research investigates the possible impact of the ownership structure and of the make-up of the board of directors on the quality of accounting information, using annual data from 29 companies listed on the Abu Dhabi Securities Exchange in 2008 and 2009. The actual research starts by presenting an appropriate measure of the quality of the accounting information, then developing a model explaining the relationship between the ownership structure, the board of directors and the quality of the accounting information. In the light of our results, we will be able to provide recommendations for helping the companies improve the quality of their financial reporting.

scholarly journals Research on the Relationship between the Female Directors' Personal Characteristics and the Quality of Accounting Information

2021 ◽  
Vol 96 ◽  
pp. 02008
Author(s):  
Lu Yin
Keyword(s):  
Board Of Directors ◽  
Accounting Information ◽  
Personal Characteristics ◽  
Quality Of Information ◽  
Female Directors ◽  
Quality Of Accounting Information ◽  
The Board Of Directors ◽  
The Relationship ◽  
Positive Effect

This paper explores the relationship between female directors and the quality of accounting information. it takes 51 enterprises from 2008 to 2018 as samples, selects the proportion of female directors, age, education background and financial background to study the personal characteristics. The results show that: the percentage of female directors is directly proportional to the accounting information; the higher the female director's education, the higher the quality of information; the female directors with financial background have a specific positive effect on the improvement of accounting information. Based on this, this paper proposes some suggestions on how to strengthen the construction of the board of directors and improve the quality of information about listed companies.

scholarly journals Influência do refazimento das demonstrações contábeis no gerenciamento de resultados das empresas listadas na BM&FBovespa

2017 ◽  
Vol 16 (1) ◽  
pp. 95-120
Author(s):  
Paulo Roberto da Cunha ◽  
Leonardo Barbi Fernandes ◽  
Cristian Bau Dal Magro
Keyword(s):  
Earnings Management ◽  
Accounting Information ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Management Quality ◽  
Quality Of Accounting Information ◽  
Survey Sample ◽  
Quantitative Nature ◽  
Negative Earnings

A qualidade da informação contábil é essencial para os stakeholders, e a prática de gerenciamento de resultado é uma medida de qualidade da informação. Atrelada a isso, a Comissão de Valores Mobiliários (CVM) solicita a republicação das demonstrações contábeis sempre que julgar necessário. Contudo, no ato da republicação das demonstrações contábeis pode haver diferentes julgamentos em relação às escolhas contábeis por parte dos gestores, ocasionando modificações no nível de gerenciamento de resultados das organizações e assimetria informacional entre o principal e o agente. Desse modo, o objetivo com este estudo foi verificar a influência do refazimento das demonstrações contábeis no gerenciamento de resultados das empresas listadas na BM&FBovespa. A análise ocorreu no período pré-refazimento, ano do refazimento e pós-refazimento. Realizou-se uma pesquisa descritiva, documental e com abordagem de cunho quantitativo. A amostra da pesquisa foi composta por 18 empresas com refazimento das demonstrações contábeis entre 1995 e 2012, e para fins de comparação foram selecionadas 18 empresas sem refazimento listadas na BM&FBovespa que continham similaridades em relação ao tamanho e ao setor de atuação. Os resultados não revelam diferenças quanto à média dos accruals discricionários entre os períodos pré-refazimento, ano do refazimento e pós-refazimento. Por outro lado, os resultados em comparação com as empresas que não foram obrigadas ao refazimento das demonstrações contábeis revelam que o refazimento influencia o gerenciamento de resultado negativo. Diante das variáveis testadas, verificou-se que o endividamento influencia o gerenciamento de resultado negativo e que o tamanho da empresa influencia o gerenciamento de resultado positivo.Palavras-chave: Refazimento das demonstrações contábeis. Gerenciamento de resultados. Qualidade da informação contábil. Abstract The quality of accounting information is essential for stakeholders and the practice of earnings management is a measure of quality of the information. Coupled to this, the Brazilian Securities Commission (CVM) requests the republication of the financial statements whenever necessary. However, upon republication of the financial statements may be different judgments about the financial choices by managers, resulting in changes in the level of earnings management organizations and informational asymmetry between the principal and the agent. Thus, the objective with this study was to investigate the influence of the restatement of financial statements in earnings management of companies listed on BM&FBovespa. The analysis took place in the pre-restatement period, the year of restatement and post-restatement. We conducted a descriptive, documentary, with quantitative nature approach. The survey sample consisted of 18 companies with restatement of financial statements from 1995 to 2012 and for comparison 18 companies without restatement listed on BM&FBovespa containing similarities in the size and sector of activity were selected. The results did not reveal differences from the average of discretionary accruals between the periods of pre-restatement, year of restatement and post-restatement. On the other hand, the results compared to companies that were not required to restate the financial statements reveal that the restatement influences the negative earnings management. Before the variables tested, it was found that the debt influences the negative earnings management and company size influences the positive earnings management.Keywords: Restatement of financial statements. Earnings management. Quality of accounting information.

scholarly journals Effects of Board of Directors' Characteristics on the Quality of Accounting Information in Brazil

2014 ◽  
Vol 25 (66) ◽  
pp. 255-266 ◽  
Author(s):  
Luciana Holtz ◽  
Alfredo Sarlo Neto
Keyword(s):  
Board Of Directors ◽  
Executive Director ◽  
Accounting Information ◽  
Market Liquidity ◽  
Board Independence ◽  
Earnings Informativeness ◽  
Information Relevance ◽  
Quality Of Accounting Information ◽  
The Board Of Directors

One of the board of directors' responsibilities is to monitor the quality of information disclosed in financial reports. The board's structural and compositional characteristics can affect the quality of reported accounting information. The aim of this study was to investigate the effects of the board's structural and compositional characteristics on the quality of accounting information of companies listed on the Brazilian Securities, Commodities, and Futures Exchange (Bolsa de Mercadorias e Futuros - BM&FBovespa). Specifically, the characteristics studied were the size and independence of the board of directors and separation of the roles of chairman and executive director. Accounting information relevance and earnings informativeness were used as proxies for the quality of accounting information. The sample included non-financial companies listed on the BM&FBovespa with annual stock market liquidity higher than 0.001, covering the period from 2008–2011. Data were collected from the Economática® database and directly from companies' annual reports and reference forms available on the Securities Commission (Comissão de Valores Mobiliários - CVM) or BM&FBovespawebsites. Data analysis was undertaken using the multiple regression technique for calculating the models of accounting information relevance and earnings informativeness. The results reveal that, for companies that trade stocks on the BM&FBovespa in the Brazilian market, the characteristics of board independence and separation of the roles of chairman and executive director positively influence the quality of reported accounting information, specifically regarding the relevance of equity. Earnings informativeness is positively affected by board independence and negatively affected by larger board size (more than nine members). Overall, the results corroborate international studies such as those of Vafeas (2000), Firth, Fung, and Rui (2007), Ahmed, Hossain, and Adams (2006) and Dimitropoulos and Asteriou (2010), especially regarding board independence. The study showsthat stronger governance structures have a positive effect on the quality of reported accounting information.

Sign in / Sign up

Export Citation Format

Share Document