The Usefulness of Accounting Information, Economic Variables and Corporate Governance Measures in Predicting Corporate Failure - An Empirical Study

2007 ◽  
Author(s):  
Heba Abou-El-Sood
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Accounting Information ◽  
Economic Variables ◽  
Corporate Failure

scholarly journals The Usefulness Of Accounting Information, Economic Variables, And Corporate Governance Measures To Predict Corporate Failure

2011 ◽  
Vol 24 (4) ◽  
Author(s):  
Heba S. Abou El Sood
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Empirical Study ◽  
Prediction Accuracy ◽  
Accounting Information ◽  
Failure Prediction ◽  
Statistical Testing ◽  
Font Size ◽  
Economic Variables ◽  
Corporate Failure

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: Times New Roman;"><span style="font-size: 10pt; vertical-align: baseline; mso-fareast-font-family: SimSun; mso-fareast-language: ZH-CN;">This paper has the core aim of investigating the usefulness of employing accounting information, macroeconomic variables and corporate governance measures to predict corporate failure in an Egyptian setting. </span><span style="font-size: 10pt; vertical-align: baseline; mso-bidi-language: AR-EG;">The empirical study is directed to adapting a corporate failure prediction model applied to a sample of Egyptian companies listed in the Egyptian stock market. A sample of 79 companies drawn from the 100 most actively traded firms listed in the Egyptian stock market has been used for the empirical testing. A pooled sample is formed covering the period 2000-2005 inclusive. The empirical study emphasized improving failure prediction accuracy by introducing two classes of variables besides financial ratios based on accounting information. These classes of variables are <span style="mso-bidi-font-style: italic;">economic variables</span> and <span style="mso-bidi-font-style: italic;">corporate governance measures</span>. Logistic regression analysis has been used to test the predictive accuracy of four models. Model I included accounting information only. Model II added economic variables to accounting information. Model III included corporate governance measures and accounting information. Finally, model IV employed these three classes of variables together. Analysis of the statistical testing results indicated that employing the three classes of variables together improved the prediction accuracy to reach 84.8% in the classification sample and 78.2% in the validation sample. Furthermore, model IV is used to predict failure up to three years prior to failure and therefore can provide a tool for failure prediction for enhancing auditing, investment and credit decisions in an Egyptian market setting.</span></span></p>

Corporate governance and Corporate Failure

2012 ◽  
Author(s):  
A.M.I Lakshan ◽  
W.M.H.N. Wijekoon
Keyword(s):  
Corporate Governance ◽  
Corporate Failure

Impact of accounting information system on corporate governance: evidence from Pakistani textile sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samza Fatima ◽  
Muhammad Ishtiaq ◽  
Adnan Javed
Keyword(s):  
Corporate Governance ◽  
Textile Industry ◽  
Accounting Information ◽  
Business Environment ◽  
Point Of View ◽  
Primary Data ◽  
Specific System ◽  
Content Type ◽  
Accounting Information Systems ◽  
Textile Sector

Purpose Efficient corporate governance is always important to safeguard the interest of all the stakeholders in the business environment. Therefore, this study focuses on the investigation of the relationship between accounting information systems (AIS) and corporate governance in the textile sector of Pakistan. The textile sector is the backbone of the Pakistani economy and has an important contribution toward the gross domestic product and as well as exports of the country. Design/methodology/approach The data were collected from the finance managers with the sample size of 300 firms of All Pakistan textile mills association, self-delivery and collection method used. Both descriptive and inferential statistics used to analyze data through the Statistical Package for Social Sciences 23. Findings The findings of this study proved that AIS has a significant impact on corporate governance. It is important from the management point of view to record the daily transaction in a better way with the use of a specific system and every member uses the computerized system to accomplish their tasks in the organization. Originality/value The textile industry is the backbone of Pakistan’s economy. The study conducted in this paper by primary data and drawing original contributions in the existing literature. Moreover, the findings of this study are going to have considerable theoretical and practical implications for the market.

scholarly journals Political and financial background in board interlocking and earnings management in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cristian Baú Dal Magro ◽  
Roberto Carlos Klann
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Accounting Information ◽  
Real Earnings Management ◽  
The Political ◽  
Content Type ◽  
Quality Of Accounting Information

Purpose Although board interlocking underlying forces are largely hidden, the purpose of this paper is to provide managers, auditors, analysts, regulators and other stakeholders with sociological board interlocking information considering the different backgrounds of their members. Design/methodology/approach The research sample gathered 1,606 observations from 2010 to 2017. For data analysis, the direct and indirect board interlocking linkages, considering the different backgrounds of board members, established the centrality indicators. Subsequently, the authors used these indicators according to each measured background in the regression models. Findings The results indicate that the political background of board interlocking members is positively related to real earnings management practices, while the financial background has a mitigating effect on such practices. Research limitations/implications The findings suggest that individual skills and interests conveyed across the corporate social network have shaped corporate governance, with distinct impacts on the quality of accounting information. Practical implications The authors conclude that both backgrounds could have implications on agency conflicts, increasing (policy) or reducing (financial) information asymmetry between the company and its various stakeholders, which indicates that the authors must consider sociological and not just economic aspects within corporate governance. Social implications The sociological background of individuals is necessary for the congruence of monitoring mechanisms, and consequently, the quality of accounting information. Originality/value This study examines the influence of the political and financial background of board interlocking members on real earnings management practices in Brazilian publicly traded companies in the International Financial Reporting Standards post-adoption period.

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