Auditor Conservatism and Reporting Quality: The Role of Auditor Portfolios

2017 ◽  
Author(s):  
Curtis M. Hall ◽  
J. Scott Judd ◽  
Jayanthi Sunder
Keyword(s):  
Reporting Quality ◽  
Auditor Conservatism

Labor and Finance: The Role of Financial Reporting Quality

2019 ◽  
Author(s):  
Boochun Jung ◽  
Woo-Jong Lee ◽  
David P. Weber ◽  
Daniel Yang
Keyword(s):  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality

Turnaround times and modes of reporting critical results in Asian laboratories

2021 ◽  
pp. 000456322198936
Author(s):  
Tony Badrick ◽  
Mohamed Saleem ◽  
Wesley Wong
Keyword(s):  
Quality Improvement ◽  
Performance Index ◽  
Clinical Chemistry ◽  
Reporting Quality ◽  
Turnaround Time ◽  
Timely Manner ◽  
Phone Calls ◽  
Key Performance Index ◽  
Critical Results

Background Reporting critical results in a timely manner is a crucial role of clinical laboratories. Traditionally, these results were reported using the phone or fax system. However, there are now other modes of communication for this reporting. Quality improvement in any organization is driven by detection of errors and benchmarking against peers. In the case of critical result reporting, there are few current widely used Benchmarking schemes. Methods The Roche Clinical Chemistry Benchmarking Survey in 2019 added questions about critical result reporting including the mode of communication and turnaround time key performance index. This survey includes over 1100 laboratories from 20 countries. Results The survey revealed a range of communication strategies with phone calls still the commonest followed by email. The key performance index for most laboratories was less than 10 min. Conclusion Benchmarking can provide key information for quality improvement activities, particularly pre- and postanalytical.

Regulation of capital flows: Effects on liquidity and the role of financial reporting quality

2020 ◽  
Vol 175 ◽  
pp. 86-97
Author(s):  
Kyriaki Kosmidou ◽  
Dimitrios Kousenidis ◽  
Anestis Ladas ◽  
Christos Negkakis
Keyword(s):  
Financial Reporting ◽  
Capital Flows ◽  
Reporting Quality ◽  
Financial Reporting Quality

scholarly journals Venture Capital and Financial Reporting in Newly Public Firms

2018 ◽  
pp. 411-429
Author(s):  
Lars Helge Hass ◽  
Monika Tarsalewska
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Active Role ◽  
Real Earnings Management ◽  
Venture Capitalists ◽  
Public Firms ◽  
Reporting Practices

Financial intermediaries such as venture capitalists (VCs) not only provide financing, they also play an active role in firm governance and in financial practices before a firm goes public. Venture capitalists are actively engaged in monitoring and advising their portfolio firms. Thus, one also expects them to exert significant influence over the development of financial reporting practices. This chapter reviews recent literature and empirical evidence on VCs and financial reporting quality in newly public firms. It surveys the role of VCs in such activities as earnings management. In particular, it discusses how their monitoring activities and reputation can impact how their portfolio firms establish financial reporting practices. Subsequently, it also reviews the consequences of misreporting, and whether they affect VC behavior ex ante. Finally, the chapter uses recent data to provide empirical evidence on the effect of VCs on accrual and real earnings management.

Foreign Investors, External Monitoring, and Stock Price Crash Risk

2019 ◽  
Vol 35 (4) ◽  
pp. 829-853
Author(s):  
Jeong-Bon Kim ◽  
Xiaoxi Li ◽  
Yan Luo ◽  
Kemin Wang
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Reporting Quality ◽  
Crash Risk ◽  
Accrual Quality ◽  
Foreign Investors ◽  
External Monitoring ◽  
Risk Reducing ◽  
Local Firms

We investigate whether foreign investors help to reduce local firms’ future stock price crash risk through their external monitoring. We find that the entrance of foreign investors is associated with a significant reduction in local firms’ future crash risk. Further investigation reveals that foreign investors help to improve local firms’ financial reporting quality from the perspectives of accrual quality, conservatism, and annual report tone management. The evidence is consistent with our conjecture that foreign investors play an important external monitoring role, which reduces managerial bad-news hoarding and thereby lowers local firms’ future crash risk. We also find that the crash risk–reducing role of foreign investors is more pronounced when foreign investors are more familiar with the institutional background of the host country, when they have stronger incentives to monitor local firms, and when local firms have higher governance efficacy. A variety of robustness checks reveals that our results are unlikely to be driven by potential endogeneity.

Modeling product market competition and reporting quality: the transitional economy of China

2017 ◽  
Vol 43 (2) ◽  
pp. 154-166 ◽  
Author(s):  
Amjad Iqbal ◽  
Zia-ur-Rehman Rao ◽  
Muhammad Zubair Tauni ◽  
Khalil Jebran
Keyword(s):  
Market Competition ◽  
Reporting Quality ◽  
Product Market ◽  
Transitional Economy ◽  
Product Market Competition ◽  
Absolute Level ◽  
Content Type ◽  
The Absolute

Purpose The purpose of this paper is to examine the role of product market competition in shaping a firm’s reporting quality (RQ). Design/methodology/approach This research uses an aggregate measure of a firm’s RQ, considering both the absolute level of discretionary accruals (DA) and the quality of accruals, using modified Jones model and Francis et al. (2005) accruals quality model, respectively. Whereas, the Herfindahl-Hirschman index and the Lerner index are used to measure product market competition. Further, this study considers the transitional economy of China and employs panel data estimation techniques for testing the hypothesized relationships. Findings This study finds that firms operating in more competitive industries are associated with higher RQ. This association still prevails when analysis is done using the component measures of RQ (i.e. the absolute level of DA and the quality of accruals). Overall, the empirical results provide evidence on the disciplining role of product market competition among Chinese firms. Practical implications Given the complex governance structures and specific kind of agency problems in Chinese corporations, this study suggests that product market competition may play an external disciplining role to improve the corporate information environment. Originality/value This research explores the role of product market competition for a firm’s RQ in Chinese-listed companies, while the prior studies on the same topic are mostly from the developed countries.

scholarly journals Managerial empire building and segment reporting quality: The role of auditor industry specialization

2014 ◽  
Vol 12 (1) ◽  
pp. 518-530
Author(s):  
Chaur-Shiuh Young ◽  
Chia-Hui Chen ◽  
Fei-Liang Chien ◽  
Tzu-Yi Yu
Keyword(s):  
Reporting Quality ◽  
Management Approach ◽  
Lower Segment ◽  
Accounting Standard ◽  
Industry Specialization ◽  
External Auditors ◽  
Empire Building ◽  
Segment Reporting ◽  
Ifrs 8

This study aims to explore whether empire building firms have lower segment reporting quality under the new accounting standard-IFRS No. 8, Operating Segments. IFRS No. 8 requires firms to report segment information on basis of the management approach, which implying the opportunity of managerial manipulation. We use the sample of 8 countries that have followed IFRS 8 over the period 2009-2011, and find that when managers with high incentives to build managerial empire will conceal segment reporting information on purpose which leads to lower segment reporting quality. Furthermore, our results show that external auditors with industrial experience attenuate the agency problem of managerial empire building and consequently increase segment reporting quality.

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