Financial reporting quality in international settings: A comparative study of the USA, Japan, Thailand, France and Germany
AbstractThe purpose of this study is to show the importance of the business contexts of individual countries to understand corporate accounting practices in international settings. Using data from five countries, we show that while agency theory constructs are effective in explaining accounting practices in corporate settings that have a strong agency orientation, such as that of the United States, it is necessary to go beyond such constructs to understand accounting practices in other corporate settings. Given the variety of international business settings, we use a generic theory, institutional theory. To conduct this examination into cross-country accounting practices, we focus on an earnings quality measure based on accrual accounting practices, the abnormal accruals component of accounting earnings. We provide evidence to support the view that with varying business settings we are likely to see diversity in accounting practices that result in different levels of accruals or accruals based earnings quality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal The International Journal of Accounting.
Volume (Year): 45 (2010)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620179
Agency theory Financial reporting quality USA Japan Thailand France Germany;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Graham, Roger C. & King, Raymond D., 2000. "Accounting Practices and the Market Valuation of Accounting Numbers: Evidence from Indonesia, Korea, Malaysia, the Philippines, Taiwan, and Thailand," The International Journal of Accounting, Elsevier, vol. 35(4), pages 445-470, 010.
- Schmidt, Reinhard H., 2003. "Corporate Governance in Germany: An Economic Perspective," CFS Working Paper Series 2003/36, Center for Financial Studies (CFS).
- Gorm Gabrielsen & Jeffrey D. Gramlich & Thomas Plenborg, 2002. "Managerial Ownership, Information Content of Earnings, and Discretionary Accruals in a Non-US Setting," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(7&8), pages 967-988.
- Dollar, David & Hallward-Driemeier, Mary, 2000. "Crisis, Adjustment, and Reform in Thailand's Industrial Firms," World Bank Research Observer, World Bank Group, vol. 15(1), pages 1-22, February.
- Fan, Joseph P. H. & Wong, T. J., 2002. "Corporate ownership structure and the informativeness of accounting earnings in East Asia," Journal of Accounting and Economics, Elsevier, vol. 33(3), pages 401-425, August.
- Christoph van der Elst, 2004. "Industry-specificities and Size of Corporations: Determinants of Ownership Structures," Working Papers 04-19, Utrecht School of Economics.
- Fields, Thomas D. & Lys, Thomas Z. & Vincent, Linda, 2001. "Empirical research on accounting choice," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 255-307, September.
- Bunkanwanicha, Pramuan & Gupta, Jyoti & Wiwattanakantang, Yupana, 2006. "Pyramiding of Family-owned Banks in Emerging Markets," CEI Working Paper Series 2006-4, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
- Williamson, Oliver E, 1988. " Corporate Finance and Corporate Governance," Journal of Finance, American Finance Association, vol. 43(3), pages 567-91, July.
- Booth, L. & Asli Demirgu-Kunt, V.A. & Maksimovic, V., 1999.
"Capital Structure in Developing Countries,"
Rotman School of Management - Finance
00-001, Rotman School of Management, University of Toronto.
- Leuz, Christian & Nanda, Dhananjay & Wysocki, Peter D., 2003. "Earnings management and investor protection: an international comparison," Journal of Financial Economics, Elsevier, vol. 69(3), pages 505-527, September.
- Boonlert-U-Thai, Kriengkrai & Meek, Gary K. & Nabar, Sandeep, 2006. "Earnings attributes and investor-protection: International evidence," The International Journal of Accounting, Elsevier, vol. 41(4), pages 327-357, 012.
- Antoniou, Antonios & Guney, Yilmaz & Paudyal, Krishna, 2008. "The Determinants of Capital Structure: Capital Market-Oriented versus Bank-Oriented Institutions," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 43(01), pages 59-92, March.
- McGuire, Jean & Dow, Sandra, 2002. "The Japanese keiretsu system: an empirical analysis," Journal of Business Research, Elsevier, vol. 55(1), pages 33-40, January.
- In-Mu Haw & Bingbing Hu & Lee-Seok Hwang & Woody Wu, 2004. "Ultimate Ownership, Income Management, and Legal and Extra-Legal Institutions," Journal of Accounting Research, Wiley Blackwell, vol. 42(2), pages 423-462, 05.
- Naomi Soderstrom & Kevin Jialin Sun, 2007. "IFRS Adoption and Accounting Quality: A Review," European Accounting Review, Taylor & Francis Journals, vol. 16(4), pages 675-702.
- Hans Friderichs & Bernard Paranque, 2001. "Structures of Corporate Finance in Germany and France - A Comparative Analysis for West German and French incorporated Enterprises," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 221(5-6), pages 648-671.
- Shishido, Zenichi, 1999. "Japanese Corporate Governance: The Hidden Problems of the Corporate Law and Their Solutions," Berkeley Olin Program in Law & Economics, Working Paper Series qt0x2520bb, Berkeley Olin Program in Law & Economics.
- Flath, David, 1993. "Shareholding in the Keiretsu, Japan's Financial Groups," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 249-57, May.
- Ray Ball, 1995. "Making Accounting More International: Why, How, And How Far Will It Go?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 8(3), pages 19-29.
- Jean McGuire & Sandra Dow, 2009. "Japanese keiretsu: Past, present, future," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 333-351, June.
- Jeffrey L. Callen & Dan Segal, 2004. "Do Accruals Drive Firm-Level Stock Returns? A Variance Decomposition Analysis," Journal of Accounting Research, Wiley Blackwell, vol. 42(3), pages 527-560, 06.
- Ball, Ray & Kothari, S. P. & Robin, Ashok, 2000. "The effect of international institutional factors on properties of accounting earnings," Journal of Accounting and Economics, Elsevier, vol. 29(1), pages 1-51, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.