Corruption, Political Institutions, and Accounting Environment: A Cross-Country Study

Houqe, Nurul; Monem, Reza

doi:10.2139/ssrn.2263630

Cited by 10 publications

(10 citation statements)

References 24 publications

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“…This approach indicates that institutions may affect earnings management. Recently, a growing body of international research in the body of literature has emerged to examine the relationship between institutional factors and earnings management such as Kimbro (2002), Wu (2005), Malagueno, Albrecht, Ainge, and Stephens (2010), Memis and Cetenak (2012), González and Meca (2014), Houqe and Monem (2016). Additionally, political and economic differences in the institutional backgrounds between mature and emerging markets are large differences, which is clearly observable.…”

Section: Introduction 1mentioning

confidence: 99%

Provincial Governance Quality and Earnings Management: Empirical Evidence from Vietnam

Nguyen¹,

Duong²

2020

JAFEB

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The paper investigates the mechanism through which corporate credit ratings affect dividend payments by decomposing the mean difference of dividends into a part that is explained by the determinants of dividends and a residual part that is contributed by the pure credit group effect, in the framework of the traditional dividend model of Fama and French (2001). Historically, better credit rated firms have shown consistently higher propensity to pay dividends especially during the economic crisis period. According to the counter-factual decomposition technique of Jann ( 2008), better rated firms are more responsive to the firm characteristics that have positive impact on dividends and poor rated firms are more responsive to the negative dividend predictors. As a result, good (bad) credit ratings make corporate managers become more bold (timid) in their dividend payments and they tend to pay more (less) dividends than what their firm characteristics prescribe. The degree of information asymmetry increases for the poor group firms during crisis periods and they attempt to reserve more cash in preparation for future investments. The decomposition results suggest that the credit group effect can potentially exceed the effect of firm characteristics because firms of different credit ratings can respond to the very same firm characteristics in a different manner.

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Section: Introduction 1mentioning

confidence: 99%

Provincial Governance Quality and Earnings Management: Empirical Evidence from Vietnam

Nguyen¹,

Duong²

2020

JAFEB

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“…Based on the findings obtained in summary, it is possible to say that corruption affects the accounting quality of companies, the struggles to be carried out to control corruption will have positive results on the companies side, so that the effective allocation of resources will be possible for that economy and this situation will indirectly have positive effects on economic growth and development. (Houqe ve Monem, 2013;Kimbro, 2002;Lourançe vd., 2018;Malagueño vd., 2010;Riahi-Belkaoui, 2004;Riahi-Belkaoui ve AlNajjar, 2006;Wu, 2005 , 2015). Buradan hareketle bir işletmenin muhasebe kalitesi yüksek ise işletmenin mali tabloları muhasebe standartlara uygun olarak hazırlanmış ve işletme yönetiminin takdir yetkisi azalarak tahakkukların tahmini olarak hesaplanmasında hata olasılığı azalmıştır denilebilir (Barth vd., 2008).…”

Section: Results and Conclusionmentioning

confidence: 99%

Yolsuzluk Ve Muhasebe Kali̇tesi̇ İli̇şki̇si̇

Çetenak

Köse

Bekçi

2021

Mehmet Akif Ersoy Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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Bu araştırmanın amacı, yolsuzluk ve muhasebe kalitesi arasındaki ilişkiyi incelemek ve söz konusu ilişkiyi verilerine ulaşılabilen 11 farklı ülke için test etmektedir. Araştırmada, 2009-2019 yılları arasında Türkiye ve 10 farklı ülkenin yolsuzluk endeksleri ile bu ülkelerde faaliyet gösteren 3816 işletmenin isteğe bağlı tahakkukları incelenmiş araştırma sonucunda yolsuzluğun muhasebe kalitesini etkilediği sonucuna ulaşılmıştır. Çalışmada isteğe bağlı tahakkukların hesaplanmasında Düzeltilmiş Jones Modelinden faydalanılmış yolsuzluk endeksi ise Dünya Bankası veri tabanından alınmıştır.

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“…Countries can reduce the level of perceived corruption by increasing accounting and auditing standards to provide transparency in financial reporting (Rupeika-Apoga et al, 2018). Furthermore, Houqe and Monem (2013) examined the role of accounting information in reducing corruption using data covering 166 countries during the 1996-2011 period. The results show that countries willing to reduce corruption must improve the quality of accounting standards.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Good accounting quality can reduce corruption through better disclosure on every economic transaction (Houqe and Monem, 2013;Kimbro, 2002;Malagueño et al, 2010). Public policies that target the improvement of corporate accounting practices can be an effective anti-corruption strategy.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…The strength of audits and reporting standards reflects the quality of institutional governance and legal force in a country. According to Houqe and Monem (2013), high-quality accounting information is not only the result of good accounting standards, but also a number of other factors such as, the rule of law, and the power of law enforcement. Policies that strengthen governance through strengthening audit quality and reporting can be tools to control corruption and the shadow economy (Goel and Saunoris, 2014).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

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The Strength of Audits, Reporting Standards and Corruption, on Tax Evasion: A Cross-Country Study

Hudori¹,

Mustikasari²

2020

IJEBA

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Purpose: The study aims to examine the influence of audits, reporting standards and corruption on tax evasion on selected countries. Design/Methodology/Approach: Tax evasion is measured using the shadow economy estimation and a tax evasion survey from the IMD World Competitiveness Yearbook by using a sample of 132 countries in th eperiod 2008-2015. Data were analyzed using Ordinary Least Square regression (OLS) and multilevel mediation analysis. Findings: The results showed that improving audit quality and reporting standards reducing the level of corruption can significantly reduce tax evasion. We also find that corruption mediates the effect of the strength of audit and reporting standards on tax evasion. Practical Implications: Result implies that in order to reduce tax evasion, the government must reduce the level of corruption first through strengthening audits and reporting standards. At the end, it is hoped that no more corrupted officials will facilitate the company to manipulate financial statements. Originality/Value: This research provides a clearer view by building a conceptual framework on how corruption mediates the effect of audit power and reporting standards on tax evasion.

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Corruption, Political Institutions, and Accounting Environment: A Cross-Country Study

Cited by 10 publications

References 24 publications

Provincial Governance Quality and Earnings Management: Empirical Evidence from Vietnam

Provincial Governance Quality and Earnings Management: Empirical Evidence from Vietnam

Yolsuzluk Ve Muhasebe Kali̇tesi̇ İli̇şki̇si̇

The Strength of Audits, Reporting Standards and Corruption, on Tax Evasion: A Cross-Country Study

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