| Autor: |
Larelle Chapple, Nilan Gandhi, Victoria J. Clout |
| Rok vydání: |
2013 |
| Předmět: |
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| Zdroj: |
Accounting Research Journal. 26:88-108 |
| ISSN: |
1030-9616 |
| DOI: |
10.1108/arj-dec-2011-0045 |
| Popis: |
Purpose – The purpose of this paper is to study whether auditor independence reforms introduced in 2004 led to an enhancement in earnings quality in the post-reform era. Design/methodology/approach – This study predicts that as the cost of compliance will vary based on a firm's existing corporate governance regime and the level of external scrutiny (monitoring) it faces, we compare the earnings quality of a sample of “established” (SP while this was not the case for emerging firms. The evidence also suggests that corporate governance mechanisms of board independence and board financial skill are associated with higher earnings quality; while the higher the concentration of insider firm ownership is associated with lower earnings quality. Practical implications – This study provides policy makers with evidence as to changes in reporting behaviour following law reform aimed at strengthening auditor independence. Originality/value – The studies on earnings quality are informed by the US market practices. Australia provides a unique setting through its auditor independence reforms to examine the impact of reform choices. This study also investigates two specific subsets of the market: established firms and emerging firms. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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