Download or read book Accounting Conservatism and Board of Director Characteristics written by Anwer S. Ahmed and published by . This book was released on 2007 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using three different measures of conservatism, we document that (i) the percentage of inside directors is negatively related to conservatism, and (ii) the percentage of outside directors' shareholdings is positively related to conservatism. Our results hold after controlling for industry, firm size, leverage, growth opportunities, institutional ownership, inside director ownership, and unobservable firm characteristics that are stable over time. Overall, the evidence is consistent with accounting conservatism assisting directors in reducing agency costs of firms.

Download or read book Board of Directors Characteristics and Conditional Accounting Conservatism written by Juan M. García Lara and published by . This book was released on 2007 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a sample of Spanish listed firms for the period 1997-2002 we find that firms where the CEO has low influence over the functioning of the board of directors show a greater degree of accounting conservatism. We measure the influence of the CEO over the board of directors using two aggregate indexes combining 6 (8) characteristics of the functioning of the board of directors and its monitoring committees: board size, proportion of non-executive directors, proportion of independent directors, whether the chairman of the board is an executive director, the number of board meetings, and the existence of an audit committee, a nomination/remuneration committee and an executive committee. We define conservatism as the asymmetric recognition speed of good and bad news in earnings, and we measure it following Basu (1997) and Ball and Shivakumar (2005). Our results are robust to alternative specifications and specific controls for investment opportunities and for the endogenous nature of corporate governance and earnings quality. Overall, our evidence shows that firms with strong boards use conservative accounting numbers as a governance tool, even in an institutional setting with low litigation risk such as Spain.

Download or read book Corporate Board Characteristics and Accounting Conservatism written by Salami Suleiman and published by LAP Lambert Academic Publishing. This book was released on 2015-07-27 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: Controversy persists on the role of accounting conservatism in financial reporting. The separation of ownership from management and the presence of creditors result in information asymmetry among stakeholders to a firm which conservative reporting. This has been a tool for disciplining governance in corporate entities. Accounting Conservatism therefore puts an end to Collapse of Multinational Firms through sound corporate governance.

Download or read book Comparative Research on Earnings Management Corporate Governance and Economic Value written by Vieira, Elisabete S. and published by IGI Global. This book was released on 2021-02-12 with total page 433 pages. Available in PDF, EPUB and Kindle. Book excerpt: New trends are emerging regarding earnings management and corporate governance showing similarities and striking differences in the practices of different countries and economies. These new trends currently shape the field of modern corporate governance with crucial issues being looked at in governance law and practices, accounting systems, earnings quality and management, stakeholder involvement, and more. In order to advance these new avenues in corporate governance, research looks at accounting policies firms use in different opportunistic circumstances in order to manage earnings, the corporate governance practices in different countries, firm performance, and other dimensions of companies. The understanding of these topics is beneficial in understanding the current state of different types of firms and their practices in modern times. Comparative Research on Earnings Management, Corporate Governance, and Economic Value is focused on the investigation of key challenges and perspectives of corporate governance and earnings management and outlines possible scenarios of its development. The chapters explore this new avenue of research and cover theoretical, empirical, and experimental studies related to different themes in the global context of earnings management and corporate governance. This book is ideal for economists, businesses, managers, accountants, practitioners, stakeholders, researchers, academicians, and students who are interested in the current issues and advancements in corporate governance and earnings management.

Download or read book The Characteristics of a Classified Board and the Effects of the Board on Earnings Quality Accounting Conservatism and Credit Risk written by SangHyun Suh and published by . This book was released on 2009 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance studies document that strong corporate governance brings positive effects to firms; there are two different arguments about the effects of a classified board in which shareholders can change only one third of board members per year. That is, a classified board can decrease firm value by lowering the level of accountability to shareholder and investors or increase firm value by increasing board independence and focusing more on long-term planning. This study examines the characteristics of firms with a classified board and the effects of a classified board on earnings quality, accounting conservatism, and credit risk. It documents that classified board firms have both strong and weak governance characteristics. That is, firms with classified boards tend to have a larger board size, a lower percentage of insider directors on the board, a lower outside director ownership, and more operational complexity. This study finds that the market perceives classified board firms as having higher earnings quality than unitary board firms although there is no difference in accrual earnings quality, and there is no difference in accounting conservatism. However, classified board firms have higher credit ratings than unitary board firms. This study shows that there are no changes in earnings quality or credit risk when a firm changes its board structure either from unitary to classified or from classified to unitary. The study also finds that there is a decrease in accounting conservatism when a firm changes its board structure from classified to unitary, but that when a firm changes its board structure from a unitary to a classified, there is no accounting conservatism change with the accrual measure, but that the accounting conservatism increases under the market approach. These results seem to challenge the argument that a higher level of accountability to shareholders and investors results from a unitary board. Overall, the evidence is more consistent with the arguments in favor of a classified board. It also appears that the market puts more weight on the positive effects of classified boards than on the negative effects, although some active shareholders and investors argue for declassification of classified board and emphasize that a higher level of accountability should follow. Of course, a classified board can have negative effects on corporate governance, such as increased shirking, empire-building, and enjoying private benefits at shareholders cost. However, the board can also provide positive corporate governance effects such as the avoidance of inefficient actions, and more efficient investments in long-term projects. Therefore, it appears that, as Koppes et al. (1999) mention, attention should not be focused on the existence of a classified board, but on the effectiveness of the board, and that a classified board is not necessarily inconsistent with good corporate governance. It also should not be expected that a one-size-fits-all approach to corporate governance mechanism would enhance every firm's performance and firm value (Coles et al., 2008).

Download or read book Which Characteristics Determine a Perfect Board of Directors A Review of the Economic Literature written by Felix Pütz and published by GRIN Verlag. This book was released on 2021-09-10 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic Paper from the year 2020 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Maastricht University, language: English, abstract: The board of directors is an important organizational institution, whose purpose is to reduce the agency problem inherited by the management of a firm. However, because of various accounting frauds and failures in corporate governance in the history of larger corporations, there is increasing public attention regarding the effectiveness of a board and how a perfect board should be designed to increase their oversight quality. Because of these many researchers investigated this topic. This paper reviews recent academic research regarding the characteristics of a perfect board of directors. Firstly, the paper analyses different board characteristics, then it investigates the importance of the composition and size of the audit committee.

Download or read book The Board of Directors written by Ettore Croci and published by Springer. This book was released on 2018-12-04 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt: Boards of directors are a central feature of any corporate governance regime. The role of directors and how they affect firm value and policies is examined in depth in academic literature. However, it is easy to get both lost and overwhelmed when searching through the literature review that investigates several characteristics, often one at the time. This book provides a careful and concise look at corporate finance literature, specifically with regard to the board of directors, summarizing the main findings and reconciling them. This book documents the pros and cons associated with the various attributes of the board and the directors as found in the current literature and provides sections geared specifically to practitioners in this space, as well, allowing for a better and more comprehensive description of this important corporate governance mechanism. The resulting book aims to facilitate the interpretation of changes in corporate governance through the lens of the recent academic literature.

Download or read book Positive Accounting Theory written by Ross L. Watts and published by . This book was released on 2004 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance Accounting Conservatism and Manipulation written by Judson Caskey and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a model to analyze how board governance affects firms' financial reporting choices, and managers' incentives to manipulate accounting reports. In our setting, ceteris paribus, conservative accounting is desirable because it allows the board of directors to better oversee the firm's investment decisions. This feature of conservatism, however, causes the manager to manipulate the accounting system to mislead the board and distort its decisions. Effective reporting oversight curtails managers' ability to manipulate, which increases the benefits of conservative accounting and simultaneously reduces its costs. Our model predicts that stronger reporting oversight leads to greater accounting conservatism, manipulation, and investment efficiency.

Download or read book Association Between Board Characteristics and Accounting Conservatism written by Joo Ann Ho and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting Conservatism Analysis in Indonesia After Adoption of IFRS and Relation to the Characteristics of the Board As One of the Mechanism of Corporate Governance Empirical Study on Manufacturing Companies Listed on the Stock Exchange written by Muhammad Sadat Sadat Husein Pulungan and published by . This book was released on 2017 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to analyze the level of accounting conservatism in companies listed on the Stock Exchange. Analysis of accounting conservatism was performed using quantitative methods. Accounting conservatism roommates applied in different levels are influenced by external and internal factors. The external factors used in this study is the adoption of IFRS, while the internal factors are used that good corporate governance mechanisms such as the proportion of independent directors, the intensity of board meetings, managerial ownership, educational background of financial accounting and audit committee members and the size of the company. This study measured conservatism based on the accrual that was developed by Gipoly and Hyan (2002). The population of this study were manufacturing companies listed on the stock exchange Indonesi in 2005-2012. The sample was 38 manufacturing companies determined by purposive sampling. Data analysis was performed with the classical assumption and hypothesis testing with multiple linear regression models. The results of this study indicate that the IFRS, the intensity of board meetings, and institutional ownership have significant effects on the level of accounting conservatism. On the other hand, the proportion of independent directors, the educational background of financial accounting and audit committee members and the size of the company does not have a significant effect on the level of accounting conservatism after the adoption of IFRS.

Download or read book Accounting Conservatism and Board Monitoring written by Yanmin Gao and published by . This book was released on 2016 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a theoretical foundation for findings in empirical studies that document a positive association between conservatism and strong corporate governance through the board's monitoring efficiency. We construct a model with a board that decides whether to replace the incumbent manager based on accounting information and the outcome of its monitoring strategy, which also depends on the accounting information. If accounting is used only for the replacement decision, conservatism is harmful. However, conservatism is beneficial if accounting is relevant to the monitoring decision because it enhances the net benefit of monitoring. The net benefit of conservatism increases if the board becomes more efficient in monitoring. We also discuss earnings management and specific empirical implications.

Download or read book Truth in Accounting written by Kenneth MacNeal and published by University of Pennsylvania Press. This book was released on 2016-11-11 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a volume in the Penn Press Anniversary Collection. To mark its 125th anniversary in 2015, the University of Pennsylvania Press rereleased more than 1,100 titles from Penn Press's distinguished backlist from 1899-1999 that had fallen out of print. Spanning an entire century, the Anniversary Collection offers peer-reviewed scholarship in a wide range of subject areas.

Download or read book Corporate Governance Mechanisms and Accounting Conservatism written by Mahmoud Nasr and published by . This book was released on 2018 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: This paper investigates the effect of corporate governance (CG) mechanisms (board size, board independence, separation of chairman and CEO roles, and external auditor type) on accounting conservatism in Egypt. Design/methodology/approach: Archival data relating to CG and accounting conservatism are collected and analysed using multivariate regression techniques.Findings: The findings indicate that board independence is positively associated with accounting conservatism. By contrast, board size and auditor type are negatively associated with accounting conservatism, while separating the chairperson and CEO roles has no significant relationship with accounting conservatism.Originality/value: To the best of our knowledge, this is one of the first empirical attempts at providing evidence on the relationship between corporate governance and accounting conservatism in Egypt.

Download or read book Meet Beat Market Expectation Accounting Conservatism and Corporate Governance written by Bikki Jaggi and published by . This book was released on 2014 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting conservatism has been recognized as a reporting strategy that benefits shareholders and financial statement users. We hypothesize that managers in general are likely to sacrifice the benefit associated with accounting conservatism when adopting meeting/beating market expectations (hereafter MBME). Our findings show a negative association between MBME, proxied by analysts' consensus forecasts, and accounting conservatism, defined in terms of conditional conservatism (Basu, 1997; Ball and Shivakumar, 2005, 2006) and we show that such relationship is not a mechanical connection between reporting strategy and managerial incentives to report higher earnings. Further analysis show that the negative relationship still exists after controlling for expectation as well as accrual-based and real earnings management. However, we document that G-index (Gompers et al., 2003), reflecting corporate governance in terms of anti-takeover provisions, has a significant impact on the negative association between accounting conservatism and MBME. Such finding shows that firms with less anti-takeover provisions, proxied by G-index, are less likely to sacrifice the benefit associated with conservative accounting for MBME.

Download or read book Accounting Conservatism and Earnings Quality written by Farzaneh Nassir Zadeh and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose -- The study on the relationship between accounting conservatism and earnings quality is not new. However, the results are inconsistent and mixed, and to some degree, even contradictory, which represents a gap in the literature. The purpose of this study is to provide some explanations for these mixed results in the literature by investigating the effect of corporate governance mechanisms, as a moderator variable (which has not been considered in the literature before), on the relationship between accounting conservatism and earnings quality based on the Dechow and Dichev model and the modified Jones model. Design/methodology/approach --The statistical model used in this study is a multivariate regression model; furthermore, the statistical technique used to test the hypotheses is panel data. Findings --The findings reveal that the adopted models Dechow and Dichev) and the corporate governance mechanisms (such as board independence, large shareholders, and institutional ownership) can have a moderating effect on the relationship between accounting conservatism and earnings quality. These findings are exciting, contribute to the current literature, and explain some of the reasons for mixed results. Practical implications -- The findings of the current study provide an important guideline for firms to consider the impact of adopted models (Dechow and Dichev), as well as the corporate governance mechanisms (such as board independence, large shareholders, and institutional ownership) on the relationship between accounting conservatism and earnings quality. Originality/value -- Examining the impact of Dechow and Dichev models as well as the corporate governance mechanisms on the relationship between accounting conservatism and earnings quality is new in this paper. It can explain part of the reasons for the mixed and inconsistent results in the literature.

Download or read book Management Through Accounts written by James Harris Bliss and published by . This book was released on 1924 with total page 880 pages. Available in PDF, EPUB and Kindle. Book excerpt: