Does Corporate Governance Affect the Financial Performance and Quality of Financial Reporting of Companies? A Study on Selected Indian Companies

Kalyani, Sushil; Mathur, Neeti; Gupta, Prashant

doi:10.1007/978-3-319-94613-9_7

Cited by 14 publications

(12 citation statements)

References 16 publications

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“…This implies that other governance variables (e.g. board size and board independence) have no significant association with FRQ, which is against the findings of several prior studies (Bravo and Reguera-Alvarado, 2018;Kalyani et al, 2019). The significant inverse relationship between industry and FRQ signifies the supremacy of non-manufacturing companies over manufacturing companies in terms of the quality of information disclosed (this study assigns "1" for manufacturing companies and "0" for non-manufacturing companies).…”

Section: Discussioncontrasting

confidence: 73%

“…Considering its importance, it is imperative to identify the factors that affect the level of FRQ. Consequently, prior research has identified several firm-specific factors that can influence the quality of financial reporting, including corporate governance mechanism (Bravo and Reguera-Alvarado, 2018;Kalyani et al, 2019), ethics and diversity management (Labelle et al, 2010), innovation (Lobo et al, 2018), Chief Executive Officer (CEO) attributes (Francis et al, 2008;Huang et al, 2012), managerial ability (García-Meca and García-Sánchez, 2018), financial constraints (Kurt, 2018), financial expertise of CEO (Matsunaga and Yeung, 2008), financial expertise of Chief Financial Officer (CFO) (Aier et al, 2005), management's personal ideology (Notbohm et al, 2019), CEO and CFO power (Jiang et al, 2010;Baker et al, 2019) and the characteristics of the top management team (TMT) (Zhang, 2019). Among these factors, there is increasing interest in the role played by the members of the TMT, specifically how their financial expertise can affect the level of the firm's FRQ (Aier et al, 2005;Matsunaga and Yeung, 2008).…”

Section: Introductionmentioning

confidence: 99%

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Presence of professional accountant in the top management team and financial reporting quality

Rashid

2020

JAOC

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Purpose The purpose of this study is to examine the effect of the presence of professional accountants in the top management team (TMT) on financial reporting quality (FRQ) in public limited companies using the context of Bangladesh, which is an emerging economy. Design/methodology/approach This study adopts a modified version of Beest et al.’s (2009) FRQ index to measure the quality of information published in 351 annual reports of listed companies in Bangladesh. It also uses a qualitative characteristics approach to measure the quality of financial reporting, as defined by the International Financial Reporting Standards framework 2018, as opposed to an accrual or value relevance approach that solely depends on the information disclosed in the financial statements. Findings This study finds that the presence of professional accountants in the TMT is positively and significantly associated with FRQ. The findings also show that the sample companies disclosed better quality information in the enhancing qualitative characteristics category, as compared to the fundamental qualitative characteristics category. Originality/value This study uses the context of Bangladesh to explore a new type of relationship between the presence of professional accountants in the TMT and FRQ.

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Section: Discussioncontrasting

confidence: 73%

Section: Introductionmentioning

confidence: 99%

Presence of professional accountant in the top management team and financial reporting quality

Rashid

2020

JAOC

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“…The Audit Committee is considered to be a privileged original mechanism for improving corporate governance by presenting an ultimate monitor of the corporate reporting process (Kalyani et al , 2019; Pérez-Cornejo et al , 2019). In addition, as it is the only governance body for which a specific requirement of competence is required, and of the major environmental concerns, expansionary attention by the audit committee on climate change and regulations related to sustainable development will be fundamental (Peters and Romi, 2014).…”

Section: Theoretical Framework and Hypothesis Developmentmentioning

confidence: 99%

An empirical investigation of factors influencing the environmental reporting quality: evidence from France

Moalla

Salhi

Jarboui

2020

SRJ

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Purpose This study empirically tests a comprehensive set of relevant factors to explain environmental reporting quality. This study aims to understand whether environmental assurance has a direct effect on “environmental reporting quality”. In addition, this study also aims to examine the relationship between corporate governance and the quality of environmental reporting as measured by voluntary and timely reporting. Design/methodology/approach A number of econometric techniques are used including panel data specifications using a sample of French listed companies in SBF120 for the period 2012–2017. Findings The results demonstrate that the presence of an environmental audit committee and the size of the environmental external assurance firm has a significant effect on the level of voluntary reporting of environmental information. The results also reveal that the presence of the environmental audit committee, as well as the corporate social responsibility (CSR) committee, the size of the environmental external assurance and corporate governance index, affect the timely environmental reporting. Research limitations/implications This study helps all market participants to more comprehensively evaluate the quality of environmental reporting in the French context and highlights whether various factors could affect the quality of the environmental information disclosed using a multi-theoretical framework. Originality/value This paper fills the gap in the literature by highlighting an unexplored field of literature about the quality of environmental reporting by linking on the division of the quality of environmental information reporting into sub-dimensions (voluntary reporting and timely reporting) in the French context. To the knowledge, no empirical study has been done on the timely reporting of environmental information in the French context or other contexts. The originality of the work consists of the fact that it is one of the first works that deal with the relationship between environmental external assurance, corporate governance and the quality of environmental reporting.

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“…Empirical studies show that the most important qualitative characteristics of accounting information for managers of enterprises are relevance, reliability, timeliness, comparability and comprehensibility (Nobesa & Stadlerb 2015). On the basis of this, scientists have developed various methods of assessing the quality of financial reporting, allowing to assess the quality of financial reporting based on the above characteristics of accounting information (Beest et al 2009;Al-Dmour et al 2018;Kalyani et al 2019). These models differ in terms of both the content of their underlying assumptions and the form of implementation and the set of qualitative characteristics to be assessed.…”

Section: Literature Reviewmentioning

confidence: 99%

Quality of Financial Reporting of the Enterprise: Evaluation Methodology

Pravdiuk

Bondarenko

Pokynchereda

et al. 2021

EJSD

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The article substantiates the necessity of carrying out the assessment of the quality of financial reporting of the enterprise with the purpose of inserting the level of its information filling to the needs of users and increasing their confidence in the institute of accounting. Proceeding from it theoretical and methodological positions of estimation of quality of the financial reporting on the basis of use of the theory of qualimetry are developed. The proposed model covers three consecutive stages, which provide for the description of the process of assessing the quality of financial reporting, the formation of a system of indicators for assessing the quality of financial reporting and determining the scale of their assessment, the quantitative assessment of qualitative properties of financial reporting, the analysis of the results of assessing the quality of financial reporting and management decisions. It is grounded that practical application of the developed method of assessment of financial reporting quality in contrast to the existing methods allows the development of separate models of assessment of financial reporting quality taking into account the needs of specific groups of users of accounting information and in accordance with the priority of qualitative properties of financial reporting defined by them.

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Does Corporate Governance Affect the Financial Performance and Quality of Financial Reporting of Companies? A Study on Selected Indian Companies

Cited by 14 publications

References 16 publications

Presence of professional accountant in the top management team and financial reporting quality

Presence of professional accountant in the top management team and financial reporting quality

An empirical investigation of factors influencing the environmental reporting quality: evidence from France

Quality of Financial Reporting of the Enterprise: Evaluation Methodology

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