This paper examines the consequences of Financial Reporting Quality (FRQ) on Corporate Performance, using three proxies of FRQ: (i) earnings quality; (ii) conservatism; and (iii) accruals quality. Our purpose is to analyze the effect of a good FRQ on financial performance (FP) measured by the market to book ratio. To this end, the proposed hypotheses are tested on an unbalanced sample of 1, 960...

Since the early 1990’s the general and financial management of the Victorian public sector has been significantly transformed. This research constructs and explains the content, nature and quality of non-financial disclosures, including those related to performance indicators via a disclosure indicator analysis (DIA) of actual reporting practices in recent Government Budget papers. It reports t...

This paper analyses and discusses the “positive” issues of the overriding international financial reporting standards principle of “true and fair view” in connection with corporate governance mechanisms. The analysis is based on case study evidence. Empirical evidence from the Parmalat case with regards to the role of the information supply and demand side agents is analysed. This study provide...

The paper analyzes proposed accounting for financial instruments, specifically the practice of a debtor reducing the carrying value of debt and recognizing a gain as the debtor's own credit quality deteriorates. A numerical example based on Boston Chicken in 1997 shows how several common ratios provide opposite signals under current versus proposed accounting. A discussion of the example raises...

Poor quality information costs businesses trillions of dollars. Yet a foundational model influencing the quality of financial reporting information – the United States’ accounting model of information usefulness is still not empirically validated. In the near future this model is set to be incorporated into an international standard, globally affecting professional decisions about the character...

Prior research has investigated the association between executive equity compensation and earnings management but the evidence is not conclusive. We investigate this question using the quantile regression approach which allows the coefficient on the independent variable (equity compensation) to shift across the distribution of the dependent variable (earnings management). Based on a sample of 1...