Financial accounting information, organizational complexity and corporate governance systems

Bushman, Robert M.; Chen, Qi; Engel, Ellen; Smith, Abbie J.

doi:10.1016/j.jacceco.2003.09.005

Cited by 832 publications

(603 citation statements)

References 76 publications

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“…Prior empirical studies have given rise to inconsistent results regarding the relationship between the corporate governance mechanisms and accounting conservatism. Some studies find that the corporate governance is positively correlated with accounting conservatism (Ahmed and Duellman, 2007;Beekes, Pope, and Young, 2004), others show that they are negatively correlated (Bushman, Chen, Engel, and Smith, 2004;LaFond and Roychowdhury, 2008), while yet others find that they are not correlated. In addition, Chi et al (2009) indicate that there are two different perspectives regarding the relationship between corporate governance and accounting conservatism, with one being complementary and the other substitutionary.…”

Section: Corporate Characteristics Accounting Conservatism and Finanmentioning

confidence: 99%

Accounting Conservatism Trends and Financial Distress: Considering the Endogeneity of the C-Score

Kao¹,

Sie²

2016

International Journal of Financial Research

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To consider a firm's characteristics endogeneity and thereby determine its trend toward accounting conservatism, which in turn affects its financial distress, this study adopts the two-stage least squares approach. The first stage involves investigating the effect of the corporate characteristics on accounting conservatism. The empirical results indicate that financial distress and accounting conservatism exhibit a positive correlation. With respect to the non-financially distressed company, the accounting conservatism of the financially-distressed company is higher. The second phase in the logistic regression is to explore the relationship between the accounting conservatism trends and financial distress. The empirical results indicate that the trends and volatility of the accounting conservatism are significant and positively related to the financial distress, which may be due to the recognition of the company's annual loss on one occasion or the accountants' role in the function of exercising external oversight, thus increasing the company's accounting conservatism. According to the empirical results of this study we have found that the accounting conservatism trends of different company characteristics helps to determine the signs of financial distress. It is recommended that within the management of the company's operations the users of financial statements be aware of the trend and volatility of the accounting conservatism. This is of particular importance due to the probable development of the relevant decision-making processes of the company's stakeholders.

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Section: Corporate Characteristics Accounting Conservatism and Finanmentioning

confidence: 99%

Accounting Conservatism Trends and Financial Distress: Considering the Endogeneity of the C-Score

Kao¹,

Sie²

2016

International Journal of Financial Research

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“…As a result, the capital structure puzzle has been enriched with the inclusion of ownership structure and its relevance on financial decisions and corporate valuation (Morck et al, 1989;McConnell and Servaes, 1995). Following this approach, our paper is concerned with the role of both capital structure and ownership structure as mechanisms of corporate governance and their ability to reduce the managers' discretionary choices in the accounting area (Bushman and Smith, 2002;Bushman et al, 2004). This can be said to be the first contribution of our paper since we introduce a modern and suitable indicator of managers' discretionary decisions in order to evaluate the performance of corporate governance mechanisms.…”

Section: Introductionmentioning

confidence: 99%

Earnings management and internal mechanisms of corporate governance: Empirical evidence from Chilean firms

López‐Iturriaga¹,

Saona²

2005

COC

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We analyze the ability of the capital structure and the ownership structure as mechanisms of control of the managers of the firms and to reduce their accounting discretionary power for a sample of Chilean firms. Using earnings management and abnormal accruals as indicators of discretionary behavior, our results show that both debt and ownership concentration reduce the managers' discretionary behavior, so we corroborate the outstanding role both mechanisms play in a country with low protection of investors' rights. At the same time, we find that earnings management is fostered by institutional investor ownership.

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“…Nesse sentido, Bushman et al (2004) ressaltam que os diretores externos exigem que as informações dos relatórios contábeis sejam tempestivas com o propósito de ajudá-los no acompanhamento das suas responsabilidades.…”

Section: A Tempestividade De Acordo Com O Conselho Federal Deunclassified

“…As informações oportunas são aquelas que incorporam renda econômica, ou seja, podem afetar a tomada de decisão de agentes econômicos, que, por sua vez, pode alterar o valor das ações (Bushman et al, 2004). Informações tempestivas são aquelas disponíveis em tempo hábil para a tomada de decisão de interessados.…”

Section: A Tempestividade De Acordo Com O Conselho Federal Deunclassified

Tempestividade Da Informação Contábil Em Empresas Familiares Brasileiras

2016

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INTRODUÇÃOBoa parte das empresas, ao iniciar suas atividades, é gerida por famílias, as quais podem decidir por manter a propriedade e a gestão familiar, desde que os benefícios sejam maiores do que os custos (Cheng, 2014). A propriedade familiar, nos últimos anos, tem sido objeto de inúmeras pesquisas (Miralles-Marcelo, Miralles-Quirós, & Lisboa, 2014), com o intuito de verificar o efeito do controle e/ou gestão familiar nas empresas, sob a perspectiva da gestão e finanças empresariais (Barontini & Caprio, 2006).A concentração de propriedade, típica de empresas familiares, além de contribuir para a gestão e finanças empresariais, influencia de maneira positiva a qualidade da informação contábil (Alves, 2012;Cascino, Pugliese, Mussolino, & Sansone, 2010). Nesse sentido, Wang (2006) destaca que empresas familiares fornecem informações de qualidade aos usuários das demonstrações financeiras, a fim de obterem capital ao menor custo.Entre as diversas medidas para avaliar a qualidade da informação contábil, a tempestividade relaciona-se à perspectiva de a informação estar disponível em tempo hábil aos gestores para a tomada de decisão, de acordo com a necessidade destes. A eficácia do sistema contábil depende desse aspecto da qualidade, pois proporciona informações úteis e tempestivas para permitir a obtenção de benefícios aos gestores (Silva & Brito, 2002 REFERENCIAL TEÓRICONesta seção, apresentam-se as principais referências acerca da propriedade familiar, tempestividade da informação contábil e a relação entre tempestividade da informação contábil e empresas familiares, a fim de dar embasamento teórico ao presente estudo. Empresas familiares e as informações contábeisAs empresas familiares são o tipo de organização empresarial que predomina em todo o mundo e contribuem significativamente para a criação da riqueza mundial. A maioria das organizações é controlada por fundadores, herdeiros ou famílias dos herdeiros

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Financial accounting information, organizational complexity and corporate governance systems

Cited by 832 publications

References 76 publications

Accounting Conservatism Trends and Financial Distress: Considering the Endogeneity of the C-Score

Accounting Conservatism Trends and Financial Distress: Considering the Endogeneity of the C-Score

Earnings management and internal mechanisms of corporate governance: Empirical evidence from Chilean firms

Tempestividade Da Informação Contábil Em Empresas Familiares Brasileiras

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