IFRS Adoption, Extent of Disclosure, and Perceived Corruption: A Cross-Country Study

Houqe, Muhammad Nurul; Monem, Reza

doi:10.1016/j.intacc.2016.07.002

Cited by 92 publications

(154 citation statements)

References 73 publications

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“…To minimise the likelihood of model misspecification due to country differences, we controlled for (i) GDP ( LnGDP ), measured as the natural logarithm of countries’ sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products; (ii) investor protection ( INVP ), measured as directors’ liability index, which is minority shareholders’ protection against directors’ misuse of corporate assets for personal gain; and (iii) disclosure ( DISC ), which is the extent of disclosure in protecting minority shareholders through transparency and disclosure of related‐party transactions (Houqe and Monem, ).…”

Section: Methodsmentioning

confidence: 99%

Carbon disclosure, emission intensity and cost of equity capital: multi‐country evidence

Bui

Moses

Houqe

2019

Accounting & Finance

111

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This study examines the joint effect of carbon disclosure and greenhouse gas (GHG) emissions on firms’ implied cost of equity capital (COC). Based on 4655 firm‐year observations across 34 countries, we find firms’ GHG emission intensity to be positively associated with COC. However, we find also that the penalty linked with higher COC is moderated by extensive carbon disclosure. We provide evidence that the extent of carbon disclosure helps reduce the premium required by investors to compensate for poor carbon performance. Our study provides insights to policymakers, investors and managers on the combined effect of carbon disclosure, and emission intensity.

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Section: Methodsmentioning

confidence: 99%

Carbon disclosure, emission intensity and cost of equity capital: multi‐country evidence

Bui

Moses

Houqe

2019

Accounting & Finance

111

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“…For emerging countries, for example, society's perception regarding levels of government corruption, low legal enforcement, and ownership rights violations, are factors that mitigate the quality of accounting information (Houqe & Monem, 2016).…”

Section: Accounting Standardization -Ifrsmentioning

confidence: 99%

IFRS, synchronicity, and financial crisis: the dynamics of accounting information for the Brazilian capital market

Figlioli

Lemes

Lima

2017

Rev. contab. finanç.

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This study aims is to investigate the synchronicity levels of shares traded on the spot market of the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA) in relation to the accounting convergence process towards International Financial Reporting Standards (IFRS) in Brazil. The term synchronicity refers to the amount that company-specific information and market information are reflected in stock prices. The more share prices reflect company-specific information rather than market information, the greater the informational content of these prices will be in terms of representing the economic value of a particular company. For this investigation, information on companies and shares from 2005 to 2015 was collected, excluding the financial sector. The data were analyzed using cross-sectional and panel regressions. The results indicate a reduction in the synchronicity levels of stocks in the period of full adoption of IFRS in Brazil from 2010 onwards. From 2008 to 2009, which includes the partial adoption of IFRS in Brazil, statistically significant results were not found for the synchronicity levels of shares. However, for times of financial crisis, evidence was found of a reduction in the relevance of accounting information even with the adoption of international accounting standards. The results obtained for the Brazilian context do not support the idea that the adoption of IFRS necessarily causes an increase in the informational content of financial statements and that relevant information is consequently reflected in stock prices.

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“…For instance, Hou et al (2014) find strong evidence supporting the positive role of mandatory IFRS adoption on the relationship between accounting-based performance and executive compensation in China. Houqe and Monem (2016) analyze a sample of 104 countries over the period 2009-2011 and suggest that the length of IFRS experience and the extent of accounting disclosure are negatively related to the perceived level of corruption in a country. More importantly, developing countries benefit more from IFRS experience in lowering their perceived levels of corruption.…”

Section: Introductionmentioning

confidence: 99%

Executive cash compensation and tax aggressiveness of Chinese firms

Huang

Ying

Shen

2018

Rev Quant Finan Acc

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We examine the influence of corporate compensation policies on firms' tax aggressiveness in an emerging market where executive compensation is primarily in cash form. Based on a handcollected dataset of 958 firm-year observations of Chinese listed firms for the 2006-2012 period, we find that firms paying higher executive cash compensation are associated with lower tax aggressiveness. This relationship also holds for the excess cash compensation measures which control for executive shareholding, firm profitability, size, growth opportunity, and board independence. We further document that mutual funds ownership pressure firms paying higher compensation to reduce their tax aggressiveness, suggesting adverse selection by mutual funds on firms exhibiting risky tax avoidance activities. High leverage offsets the negative link between cash compensation and tax aggressiveness, indicating a complementary effect between debt and tax avoidance, and, hence, suggesting that creditor monitoring is weak. These results are robust to the system-GMM estimation, which simultaneously account for the endogeneity of executive compensation, tax aggressiveness, ownership and control, leverage, and corporate governance.Our findings on Chinese firms have important policy implications for developing countries around the world with concentrated ownership structure, weak institutional environment, widespread corruption, ineffective rule of law, and ongoing significant social and political transformation. JEL classifications: G3; M4 Arellano M, Bover O (1995) Another look at the instrumental variable estimation of errorcomponents models.

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IFRS Adoption, Extent of Disclosure, and Perceived Corruption: A Cross-Country Study

Cited by 92 publications

References 73 publications

Carbon disclosure, emission intensity and cost of equity capital: multi‐country evidence

Carbon disclosure, emission intensity and cost of equity capital: multi‐country evidence

IFRS, synchronicity, and financial crisis: the dynamics of accounting information for the Brazilian capital market

Executive cash compensation and tax aggressiveness of Chinese firms

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