Incentives versus standards: properties of accounting income in four East Asian countries

• 成果类型: Article
• 署名作者: Ball, R; Robin, A; Wu, JS
• 署名单位: University of Rochester; University of Chicago; Rochester Institute of Technology
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2003.10.003
• 发表日期: 2003
• 关键词: emerging markets; INFORMATION; OWNERSHIP; earnings; price

摘要

The East Asian countries Hong Kong, Malaysia, Singapore and Thailand provide rare insight into the interaction between accounting standards and the incentives of managers and auditors. Their standards derive from common law sources (UK, US, and IAS) that are widely viewed as higher quality than code law standards. However, their preparers' incentives imply low quality. We show their financial reporting quality is not higher than under code law, with quality operationalized as timely recognition of economic income (particularly losses). It is misleading to classify countries by standards, ignoring incentives, as is common in international accounting texts, transparency indexes, and IAS advocacy. (C) 2003 Elsevier B.V. All rights reserved.