Business Commons^™

Do Politically Connected Directors Affect Accounting Quality? Evidence From China's Anti-Corruption Campaign (Rule 18), Ole-Kristian Hope, Heng Yue, Qinlin Zhong

Research Collection School Of Accountancy

We examine the impact of politically connected directors on accounting quality using a quasi experiment in China. In October 2013, “Rule 18” was issued to prohibit government and party officials, who were concurrently holding public offices or had recently retired from such positions within the last three years, from serving as directors for publicly listed firms. The regulation is part of China’s anti-corruption campaign, and it has led to a large number of politically connected directors resigning from their roles as directors involuntarily. As such, Rule 18 has effectively weakened, if not fully discontinued, the political connections of the firms …

Exploring The Use Of Expatriate Management To Improve The Quality Of Earnings Being Reported By Mnc's, James Mohs

Accounting Faculty Publications

As organizations have strived to create global footprints and search for economies of scale, there has been a great deal of literature devoted to global expansion. This study is intended to fill a gap in the existing literature relating to the impact that financial expatriate management has had on multi-national expansion and how the quality of earnings being reported have been used as drivers for global expansion. By using the shared experiences of corporate financial executives, responsible for global financial reporting functions, the study of organizational reporting practices will serve to shed light on the procurement of quality information used …

Financial Reporting Quality And The Choice Of Monitoring Mechanisms In Debt Contracts: Evidence From Borrowing Base Restrictions

Sunay Mutlu

Accounting Quality, Stock Price Delay And Future Stock Returns, Hai Lu, Jeffrey Callen, Mozaffar Khan

Research Collection School Of Accountancy

ln frictionless capital markets with complete information and rational investors, stock prices adjust to new information instantaneously and completely. However, a substantial body of research studies information imperfections such as asymmetric information and incomplete information. Information imperfections potentially hinder timely price discovery and are likely associated with delayed stock price adjustment to information. Our first research question therefore is whether the quality of accounting information (or ”accounting quality”) is one such information imperfection that is associated with cross-sectional variation in stock price delay. We define accounting quality as the precision with which financial reports convey information to equity investors about …