IDEAS home Printed from https://ideas.repec.org/a/pmu/oecono/v1y2023p11-28.html
   My bibliography  Save this article

A Screening of Tools to Measure the Quality of Financial Reporting

Author

Listed:
  • Tatiana Dănescu

    (Faculty of Economics and Law, Department of Economic Sciences ED1, University of Medicine, Pharmacy, Science and Technology "George Emil Palade" of Targu Mures, Gheorghe Marinescu, nr. 38, Targu Mures, 540139, Romania)

  • Roxana Maria Stejerean

    (1 Decembrie 1918" University of Alba Iulia, 5 Gabriel Bethlen Street, Alba Iulia, 510009, Romania)

Abstract

The main objective of this research is to identify and systematize tools for measuring the quality of financial reports, in order to support researchers considering this comprehensive area. By using the PRISMA system in as transparent a manner as possible, we also aimed to find potential gaps in all 89 articles and scholarly papers examined in the smallest detail. As the quality of financial reporting is ultimately aimed at mediating the relationship between the entity and the user, it is not a topic addressed individually, the secondary object of this paper is to expose the most common themes and discussions associated with this object of study, such as: characteristics of entities, adoption of International Financial Reporting Standards, shareholding structure, corporate governance and audit committee.

Suggested Citation

  • Tatiana Dănescu & Roxana Maria Stejerean, 2023. "A Screening of Tools to Measure the Quality of Financial Reporting," Acta Marisiensis. Series Oeconomica, "George Emil Palade" University of Medicine, Pharmacy, Sciences and Technology of Târgu-Mureș, România - Faculty of Economics and Law, vol. 1, pages 11-28, December.
    • Handle: RePEc:pmu:oecono:v:1:y:2023:p:11-28
    as

    Download full text from publisher

    File URL: https://oeconomica.umfst.ro/images/oeco2023/2_danescu_stejerean_2023_eng_final.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Francis, Jennifer & LaFond, Ryan & Olsson, Per & Schipper, Katherine, 2005. "The market pricing of accruals quality," Journal of Accounting and Economics, Elsevier, vol. 39(2), pages 295-327, June.
    2. Wuchun Chi & Dan Dhaliwal & Oliver Zhen Li & Tzong‐Huei Lin, 2013. "Voluntary Reporting Incentives and Reporting Quality: Evidence from A Reporting Regime Change for Private Firms in Taiwan," Contemporary Accounting Research, John Wiley & Sons, vol. 30(4), pages 1462-1489, December.
    3. Zhiming Ma & Kirill E. Novoselov & Kaitang Zhou & Yi Zhou, 2019. "Managerial academic experience, external monitoring and financial reporting quality," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 46(7-8), pages 843-878, July.
    4. Jones, Jj, 1991. "Earnings Management During Import Relief Investigations," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 29(2), pages 193-228.
    5. T.G. Saji, 2021. "Asymmetric financial reporting quality and firm size: conditional evidence from an emerging market," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 23(5), pages 977-1004, December.
    6. Kothari, S.P. & Leone, Andrew J. & Wasley, Charles E., 2005. "Performance matched discretionary accrual measures," Journal of Accounting and Economics, Elsevier, vol. 39(1), pages 163-197, February.
    7. Mahdi Salehi & Nasrin Ziba & Ali Daemi Gah, 2018. "The relationship between cost stickiness and financial reporting quality in Tehran Stock Exchange," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 67(9), pages 1550-1565, November.
    8. Md Mamunur Rashid, 2020. "Presence of professional accountant in the top management team and financial reporting quality," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 16(2), pages 237-257, April.
    9. Elias Gebrayel & Hajer Jarrar & Charbel Salloum & Quentin Lefebvre, 2018. "Effective association between audit committees and the internal audit function and its impact on financial reporting quality: Empirical evidence from Omani listed firms," Post-Print hal-04134798, HAL.
    10. Salau Olarinoye Abdulmalik & Ayoib Che-Ahmad, 2020. "Regulatory changes and audit fees: the moderating effect of overlapping directorship and financial reporting quality," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 12(1), pages 90-104, July.
    11. Jinhan Pae, 2005. "Expected Accrual Models: The Impact of Operating Cash Flows and Reversals of Accruals," Review of Quantitative Finance and Accounting, Springer, vol. 24(1), pages 5-22, January.
    12. Irena Hutton & Danling Jiang & Alok Kumar, 2015. "Political Values, Culture, and Corporate Litigation," Management Science, INFORMS, vol. 61(12), pages 2905-2925, December.
    13. repec:eme:jaar00:jaar-10-2021-0264 is not listed on IDEAS
    14. DeFond, Mark L., 2010. "Earnings quality research: Advances, challenges and future research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 402-409, December.
    15. Givoly, Dan & Hayn, Carla, 2000. "The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative?," Journal of Accounting and Economics, Elsevier, vol. 29(3), pages 287-320, June.
    16. Abdulaziz Alzeban, 2019. "An examination of the impact of compliance with internal audit standards on financial reporting quality," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 17(3), pages 498-518, September.
    17. Magali Costa & Inês Lisboa & Ana Gameiro, 2022. "Is the Financial Report Quality Important in the Default Prediction? SME Portuguese Construction Sector Evidence," Risks, MDPI, vol. 10(5), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adnan Shoaib & Muhammad A. Siddiqui, 2022. "Earning information content changes based on accrual measures and quality measures: Evidences from member countries of Asia Pacific trade agreement," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1526-1546, January.
    2. Rajiv D. Banker & Dmitri Byzalov & Shunlan Fang & Byunghoon Jin, 2020. "Operating asymmetries and non-linear spline correction in discretionary accrual models," Review of Quantitative Finance and Accounting, Springer, vol. 54(3), pages 803-850, April.
    3. Rajgopal, Shiva & Venkatachalam, Mohan, 2011. "Financial reporting quality and idiosyncratic return volatility," Journal of Accounting and Economics, Elsevier, vol. 51(1), pages 1-20.
    4. Rajgopal, Shiva & Venkatachalam, Mohan, 2011. "Financial reporting quality and idiosyncratic return volatility," Journal of Accounting and Economics, Elsevier, vol. 51(1-2), pages 1-20, February.
    5. Ana Isabel Ramos Domingues & António de Melo da Costa Cerqueira & Elísio Fernando Moreira Brandão, 2016. "Idiosyncratic Volatility and Earnings Quality: Evidence from United Kingdom," FEP Working Papers 579, Universidade do Porto, Faculdade de Economia do Porto.
    6. Nyanine Chuele Fonou Dombeu & Bomi Cyril Nomlala, 2023. "Earnings Quality Research: Trend, Recent Evidence and Future Direction," International Review of Management and Marketing, Econjournals, vol. 13(5), pages 1-8, September.
    7. DeFond, Mark L., 2010. "Earnings quality research: Advances, challenges and future research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 402-409, December.
    8. Demetris Christodoulou & Le Ma & Andrey Vasnev, 2018. "Inference‐in‐residuals as an Estimation Method for Earnings Management," Abacus, Accounting Foundation, University of Sydney, vol. 54(2), pages 154-180, June.
    9. Matthew Notbohm & Katherine Campbell & Adam R. Smedema & Tianming Zhang, 2019. "Management’s personal ideology and financial reporting quality," Review of Quantitative Finance and Accounting, Springer, vol. 52(2), pages 521-571, February.
    10. Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
    11. Abdullah Alsaadi, 2021. "Can Inclusion in Religious Index Membership Mitigate Earnings Management?," Journal of Business Ethics, Springer, vol. 169(2), pages 333-354, March.
    12. Chad R. Larson & Richard Sloan & Jenny Zha Giedt, 2018. "Defining, measuring, and modeling accruals: a guide for researchers," Review of Accounting Studies, Springer, vol. 23(3), pages 827-871, September.
    13. Masahiro Enomoto, 2018. "Effects of Corporate Governance on the Relationship between Accounting Quality and Trade Credit: Evidence from Japan," Discussion Paper Series DP2018-12, Research Institute for Economics & Business Administration, Kobe University, revised Dec 2023.
    14. Shan Lu & Peng Wu & Lei Gao & Richard Gifford, 2023. "Are State-Owned Enterprises Equally Reliable Information Suppliers? An Examination of the Impacts of State Ownership on Earnings Management Strategies of Chinese Enterprises," Mathematics, MDPI, vol. 11(4), pages 1-26, February.
    15. Katsuhiko Muramiya & Tomomi Takada, 2015. "Cross-Shareholdings and Information Environment," Discussion Papers in Economics and Business 15-20, Osaka University, Graduate School of Economics.
    16. Sudip Datta & Mai Iskandar‐Datta & Vivek Singh, 2014. "Opaque financial reports and R2: Revisited," Review of Financial Economics, John Wiley & Sons, vol. 23(1), pages 10-17, January.
    17. Chung, Y. Peter & Hong, Hyun A. & Kim, S. Thomas, 2019. "What causes the asymmetric correlation in stock returns?," Journal of Empirical Finance, Elsevier, vol. 54(C), pages 190-212.
    18. Alzoubi, Ebraheem Saleem Salem, 2018. "Audit quality, debt financing, and earnings management: Evidence from Jordan," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 30(C), pages 69-84.
    19. Kim, Hyonok & Yasuda, Yukihiro & 安田, 行宏, 2020. "Earnings Management and Stock Market Listing," Working Paper Series G-1-24, Hitotsubashi University Center for Financial Research.
    20. Yongtao Hong & Fariz Huseynov & Wei Zhang, 2014. "Earnings Management and Analyst Following: A Simultaneous Equations Analysis," Financial Management, Financial Management Association International, vol. 43(2), pages 355-390, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    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:pmu:oecono:v:1:y:2023:p:11-28. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ion Cozac (email available below). General contact details of provider: https://edirc.repec.org/data/feuttro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.