The Relative Importance of Firm and Country Characteristics for Earnings Quality around the World
We examine the relative importance of firm, industry and country characteristics in explaining earnings quality in a wide sample of firms in 38 countries over 1990-2003. An aggregate earnings quality measure based on seven earnings attributes (accruals quality, persistence, predictability, smoothness, value relevance, timeliness and conservatism) indicates firm and industry characteristics today explain much more of the variation in earnings quality rankings than country characteristics. The main results hold for different levels of a country's economic development and investor protection. We also find that firm and industry characteristics became more important in the late 1990s as accounting and financial globalization accelerated. Thus, firm and industry characteristics have incremental explanatory power beyond cross-country variation in determining earnings quality worldwide.
If 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.
Volume (Year): 19 (2010)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REAR20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REAR20|
When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:19:y:2010:i:4:p:693-738. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.