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Full-Text Articles in Business
The Company Dividend Restriction: Does It Promote Good Corporate Governance?, James Routledge, Peter Slade
The Company Dividend Restriction: Does It Promote Good Corporate Governance?, James Routledge, Peter Slade
James Routledge
This article considers aspects of the development of the law associated with the dividend payment restriction. The motivation for the article is to assess whether the existing substantive law is effective in promoting sound decision-making by corporate officers who are required to determine the timing and quantum of dividend payments. Our analysis suggests that the existing provision in s 254T of the Corporations Act 2001 is unlikely to have a significant positive effect on dividend decisions. This is due to its failure to provide meaningful guidance to decision-makers; its divergence from contemporary accounting practice; and its imposition of unnecessary complexity …
Innate And Discretionary Accrual Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
Innate And Discretionary Accrual Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
James Routledge
The empirical analysis presented in this paper provides further insight into the important issue of the association between corporate governance structures and the quality of reported company earnings. The analysis uses the measure of accrual quality developed by Dechow and Dichev (2002) which provides a direct measure of the quality of current accruals. We derive measures of the innate and discretionary components of accrual quality following Francis et al. (2005), and subsequently include these measures in regressions against corporate governance characteristics. The results show that sound governance structures have a positive association between the innate and discretionary components of accrual …
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
James Routledge
This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger …