Corporate governance, accounting regulation, and financial reporting quality in Nigeria: A proposed framework
As accounting continue to draw attention, there is an increase in corporate governance regulation amid concern for financial reporting quality. Most corporate governance studies have not given attention to the combined effect of accounting regulation on financial reporting. This study potentially provides the framework for investigating more governance variables incorporating both internal and external governance mechanism with a regulatory prescription, as it affects financial reporting. The research contributes to the debate on corporate governance and financial reporting process.
Abbott, L. J., Daugherty, B., Parker, S., & Peters, G. F. (2016). Internal audit quality and financial reporting quality: The joint importance of independence and competence. Journal of Accounting Research, 54(1), 3–40. http://doi.org/10.1111/1475-679X.12099
Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing: A Journal of Practice and Theory, 23(1), 69–87. http://doi.org/10.2308/aud.2004.23.1.69
Abbott, L. J., Parker, S., & Presley, T. J. (2012). Female board presence and the likelihood of financial restatement. Accounting Horizons, 26(4), 607–629. http://doi.org/10.2308/acch-50249
Abdulmalik, S., & Ahmad, A. C. (2016). Audit fees, corporate governance mechanisms and financial reporting quality in Nigeria. DLSU Business & Economics Review, 26(1), 122–135.
Aguilera, R. V., & Cuervo-Cazurra, A. (2004). Codes of good governance worldwide: What is the trigger? Organization Studies, 25(3), 415–443. http://doi.org/10.1177/0170840604040669
Alzoubi, E. S. S. (2014). Board characteristics and financial reporting quality: Evidence from Jordan. Corporate Ownership & Control, 11(3), 8–29. http://doi.org/10.5296/ajfa.v4i1.1442
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277. http://doi.org/10.2307/2297968
Baron, R. M., & Kenny, D. a. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. http://doi.org/10.1037/0022-35220.127.116.113
Beest, F. Van, & Boelens, S. (2009). Quality of financial reporting: Measuring qualitative characteristics. NiCE Working Paper 09-108. Nijmegen.
Bodle, K. A., Cybinski, P. J., & Monem, R. (2016). Effect of IFRS adoption on financial reporting quality Evidence from bankruptcy prediction. Accounting Research Journal, 29(3), 292–312. http://doi.org/10.1108/ARJ-03-2014-0029
Bonetti, P., Magnan, M. L., & Parbonetti, A. (2016). The influence of country- and firm-level governance on financial reporting quality: revisiting the evidence. Journal of Business Finance and Accounting, 43(9–10), 1059–1094. http://doi.org/10.1111/jbfa.12220
Braam, G., & Beest, F. van. (2013). A conceptually-based empirical analysis on quality differences between UK annual reports and US 10-K reports. Journal of Modern Accounting and Auditing, 9(10), 1281–1301.
Dayanandan, A., Donker, H., Ivanof, M., & Karahan, G. (2016). IFRS and accounting quality: Legal origin, regional, and disclosure impacts. International Journal of Accounting and Information Management, 24(3), 296–316. http://doi.org/10.1108/IJAIM-11-2015-0075
Dechow, P. ., & Dichev, I. . D. (2002). The quality of accruals and earnings: The role of accruals estimation errors. The Accounting Review, 77(2002), 35–59.
Dhaliwal, D. A. N., Naiker, V. I. C., & Navissi, F. (2010). The association between accruals quality and the characteristics of accounting experts and mix of expertise on audit committees. Contemporary Accounting Research, 27(3), 787–827. http://doi.org/10.1111/j.1911-3846.2010.01027.x
Iatridis, G. (2010). International financial reporting standards and the quality of financial statement information. International Review of Financial Analysis, 19(3), 193–204. http://doi.org/10.1016/j.irfa.2010.02.004
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. http://doi.org/10.1016/0304-405X(76)90026-X
Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2), 193–228. Retrieved from url: http://www.jstor.org/stable/2491047
Kantudu, A. S., & Samaila, I. A. (2015). Board characteristics, independent audit committee and financial reporting quality of oil marketing firms: Evidence from Nigeria. Journal of Finance, Accounting and Management, 1(July), 34–50. http://doi.org/10.1017/CBO9781107415324.004
Kibiya, U. M., Che-Ahmad, A., & Amran, N. A. (2016). Audit committee independence, financial expertise, share ownership and financial reporting quality: Further evidence from Nigeria. International Journal of Economics and Financial Issues, 6(7), 125–131.
Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33(3), 375–400. http://doi.org/10.1016/S0165-4101(02)00059-9
Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. http://doi.org/https://doi.org/10.1016/j.jacceco.2004.11.002
Labelle, R., Gargouri, R. M., & Francoeur, C. (2010). Ethics, diversity management, and financial reporting quality. Journal of Business Ethics, 93(2), 335–353. http://doi.org/10.1007/s10551-009-0225-7
Lin, J. W., & Hwang, M. I. (2010). Audit quality, corporate governance, and earnings management: A meta-analysis. International Journal of Auditing, 14(1), 57–77. http://doi.org/10.1111/j.1099-1123.2009.00403.x
Lin, J. W., Li, J. F., & Yang, J. S. (2006). The effect of audit committee performance on earnings quality. Managerial Auditing Journal, 21(9), 921–933. http://doi.org/10.1108/02686900610705019
Palea, V. (2013). IAS/IFRS and financial reporting quality: Lessons from the European experience. China Journal of Accounting Research, 6(4), 247–263. http://doi.org/10.1016/j.cjar.2013.08.003
Xie, B., Davidson III, W. N., & DaDalt, P. J. (2003). Earnings management and corporate governance: The role of the board and the audit Committee. Journal of Corporate Finance, 9(3), 295–316. http://doi.org/10.1016/S0929-1199(02)00006-8
This work is licensed under a Creative Commons Attribution 3.0 License.