Financial Reporting Quality in Emerging Economies

Table Of Contents

• Cover
• Title
• Copyright
• About the author
• About the book
• This eBook can be cited
• Contents
• Index of figures
• Index of tables
• Index of abbreviations
• Index of symbols
• 1 Introduction
• 1.1 Motivation and research questions
• 1.2 Scientific positioning of the study
• 1.3 Outline of the study
• 2 Conceptual foundation
• 2.1 Basis of financial reporting quality
• 2.1.1 Purpose and addressees of financial reporting
• 2.1.2 Definition of financial reporting quality
• 2.1.3 Measures of financial reporting quality
• 2.2 Emerging economies and their accounting environment
• 2.2.1 Definition of emerging economies
• 2.2.2 Role of emerging economies in the global economy
• 2.2.3 Accounting characteristics
• 2.2.3.1 Introduction
• 2.2.3.2 Economic policies
• 2.2.3.3 Culture
• 2.2.3.4 Historical development and accounting origins
• 2.2.3.5 Accounting regulation and enforcement
• 2.2.3.6 Accounting education
• 2.2.3.7 Financing systems and capital markets
• 2.3 Financial reporting environment in Brazil, South Africa and Germany
• 2.3.1 Overview
• 2.3.2 Brazil
• 2.3.3 South Africa
• 2.3.4 Germany
• 2.3.5 Conclusion
• 3 Review of prior research
• 3.1 Overview of research approaches
• 3.2 Financial reporting practice
• 3.2.1 Indirect measure studies
• 3.2.2 Direct measure studies
• 3.3 Determinants of financial reporting quality
• 3.4 Capital market consequences of financial reporting quality
• 3.5 Implications for this study
• 4 Theory and hypotheses development
• 4.1 Conceptual framework and theoretical foundation
• 4.1.1 Introduction
• 4.1.2 Contingency theory as conceptual basis
• 4.1.3 Culture approach
• 4.1.4 Societal effects approach
• 4.1.5 Institutionalism
• 4.1.5.1 Introduction
• 4.1.5.2 New institutional economics
• 4.1.5.2.1 Basic assumptions of new institutional economics
• 4.1.5.2.2 Agency and signaling theory
• 4.1.5.2.3 Financial reporting as solution for agency problems
• 4.1.5.3 Positive accounting theory and political costs
• 4.1.5.4 New institutional sociology
• 4.1.5.4.1 Basic assumptions of new institutional sociology
• 4.1.5.4.2 Legitimacy theory
• 4.1.5.4.3 Stakeholder theory
• 4.1.6 Summary
• 4.2 Hypotheses development
• 4.2.1 Introduction
• 4.2.2 Financial reporting practice
• 4.2.3 Determinants of financial reporting quality
• 4.2.4 Capital market consequences
• 4.2.5 Summary
• 5 Research design
• 5.1 The empirical field
• 5.1.1 Sample selection
• 5.1.2 Sample description
• 5.1.2.1 Industry composition
• 5.1.2.2 Company size
• 5.1.3 Research objects
• 5.1.4 Annual report characteristics
• 5.2 Methodology of financial reporting quality measures
• 5.2.1 Accruals-based earnings management measure
• 5.2.1.1 Magnitude of accruals
• 5.2.1.2 Modified-Jones model
• 5.2.2 Disclosure index measure
• 5.2.2.1 Basis of content analysis
• 5.2.2.2 Reliability and validity of content analyses
• 5.2.2.3 Self-construction of disclosure index
• 5.2.2.4 Content categories
• 5.2.2.5 Mandatory vs. voluntary reporting
• 5.2.2.6 Weights
• 5.2.3 Readability measure
• 5.3 Methods of analysis
• 5.3.1 Introduction
• 5.3.2 Analysis of financial reporting practice by descriptive and univariate statistics
• 5.3.3 Determinants analysis
• 5.3.3.1 Selection of variables
• 5.3.3.2 Bivariate correlation and multivariate analysis
• 5.3.4 Capital market analysis on the basis of information asymmetries
• 5.3.4.1 Conceptual considerations
• 5.3.4.2 Information asymmetries models and variables
• 6 Empirical results
• 6.1 Financial reporting practice
• 6.1.1 Accruals-based earnings management
• 6.1.1.1 Magnitude of accruals
• 6.1.1.2 Modified-Jones model
• 6.1.2 Annual reporting practice
• 6.1.2.1 Size of annual reports
• 6.1.2.2 Content-related analysis of annual reports
• 6.1.2.2.1 Total financial reporting quality
• 6.1.2.2.2 Background information
• 6.1.2.2.3 Financials
• 6.1.2.2.4 Non-financials
• 6.1.2.2.5 Sustainability
• 6.1.2.2.6 Value based management
• 6.1.2.2.7 Forward-looking information
• 6.1.2.2.8 Risks and opportunities
• 6.1.2.3 Interim conclusion
• 6.1.3 Readability of annual reports
• 6.1.4 Comparison of financial reporting quality measures
• 6.1.5 Critical evaluation of the results
• 6.2 Determinants of financial reporting quality
• 6.2.1 Correlation analysis of independent variables
• 6.2.2 Isolated analysis of determinants
• 6.2.2.1 Introduction
• 6.2.2.2 Company size
• 6.2.2.3 Company age
• 6.2.2.4 Profitability
• 6.2.2.5 Company valuation
• 6.2.2.6 Systematic company risk
• 6.2.2.7 Ownership concentration
• 6.2.2.8 Industry
• 6.2.2.9 Customer basis
• 6.2.2.10 Information environment
• 6.2.3 Simultaneous analysis of determinants
• 6.2.4 Sensitivity analyses and robustness tests
• 6.2.5 Critical evaluation of the results
• 6.3 Information asymmetries
• 6.3.1 Introduction
• 6.3.2 Descriptive statistics and correlation analysis
• 6.3.3 Results of multivariate regression analysis
• 6.3.4 Sensitivity analyses and robustness tests
• 6.3.5 Critical evaluation of the results
• 6.4 Discussion
• 7 Conclusions
• 7.1 Main findings and implications
• 7.2 Limitations and outlook
• Appendix
• Index of laws, standards and regulations
• References
• Series index