| Autor: |
Qingliang Tang, Huifa Chen, Neal Arthur |
| Rok vydání: |
2019 |
| Předmět: |
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| Zdroj: |
Journal of Financial Reporting and Accounting. 17:104-132 |
| ISSN: |
1985-2517 |
| DOI: |
10.1108/jfra-07-2017-0051 |
| Popis: |
Purpose The purpose of this study is to investigate whether a country’s ownership concentration affects the financial reporting quality in a cross-country setting. Design/methodology/approach This paper uses six accounting and auditing indicators to construct a comprehensive index to measure the country-level financial reporting quality. Findings The authors find a non-linear nature of the relationship between the national financial reporting quality and national ownership structure. Specifically, the relation is negative in a relatively spread ownership structure with no controlling shareholders, implying the entrenchment effects dominate. When ownership is highly concentrated, particularly with controlling shareholders whose interest is aligned with that of the firm, the relation turns to positive and alignment effects dominate. Originality/value The study is an important extension of prior research examining the financial reporting quality effect of ownership concentration. It enhances the understanding of the role of ownership concentration in determining a country’s financial reporting quality and has potential important policy implications for countries’ reformers and regulators who are concerned with the transparency of financial reporting and the quality of corporate governance. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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