IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v47y2007i2p305-333.html
   My bibliography  Save this article

Accountability and value enhancement roles of corporate governance

Author

Listed:
  • Ping-Sheng Koh
  • Stacie Kelley Laplante
  • Yen H. Tong

Abstract

We examine the twin roles of accountability and value enhancement of corporate governance in the context of financial reporting. We investigate the accountability role by examining the association between governance structures and abnormal accruals, and the value enhancement role by investigating the association between abnormal accruals explained by governance structures and future performance. We differentiate between governance mechanisms that have direct roles in the financial reporting process (audit related) from mechanisms that have indirect roles (board related). We find that independent and active audit committees and independent boards are important governance attributes for financial reporting. We show that both audit-related and board-related governance structures are value enhancing. Copyright (c) The Authors Journal compilation (c) 2007 AFAANZ.

Suggested Citation

  • Ping-Sheng Koh & Stacie Kelley Laplante & Yen H. Tong, 2007. "Accountability and value enhancement roles of corporate governance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(2), pages 305-333.
  • Handle: RePEc:bla:acctfi:v:47:y:2007:i:2:p:305-333
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-629X.2006.00207.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Won Sil Kang & Alan Kilgore & Sue Wright, 2011. "The effectiveness of audit committees for low- and mid-cap firms," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(7), pages 623-650, July.
    2. James Routledge & David Morrison, 2012. "Insolvency administration as a strategic response to financial distress," Australian Journal of Management, Australian School of Business, vol. 37(3), pages 441-459, December.
    3. C. Piot & L. Kermiche, 2009. "A quoi servent les comit├ęs d'audit ? Un regard sur la recherche empirique," Post-Print halshs-00537952, HAL.
    4. Mark Wilson, 2011. "Earnings Management in Australian Corporations," Australian Accounting Review, CPA Australia, vol. 21(3), pages 205-221, September.
    5. Liyu He & Sue Wright & Elaine Evans & Susan Crowe, 2009. "What makes a board independent? Australian evidence," Accounting Research Journal, Emerald Group Publishing, vol. 22(2), pages 144-166, September.
    6. Dewaelheyns, Nico & Eeckloo, Kristof & Van Herck, Gustaaf & Van Hulle, Cynthia & Vleugels, Arthur, 2009. "Do non-profit nursing homes separate governance roles?: The impact of size and ownership characteristics," Health Policy, Elsevier, vol. 90(2-3), pages 188-195, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:47:y:2007:i:2:p:305-333. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaanzea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.