Is financial reporting shaped by equity markets or by debt markets? An international study of timeliness and conservatism

• 成果类型: Article; Proceedings Paper
• 署名作者: Ball, Ray; Robin, Ashok; Sadka, Gil
• 署名单位: Columbia University; University of Chicago; Rochester Institute of Technology
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-007-9064-x
• 发表日期: 2008
• 页码: 168-205
• 关键词: value-relevance literature; asymmetric timeliness; accounting income; to-book; earnings; firm; determinants; INFORMATION; incentives; QUALITY

摘要

We hypothesize debt markets-not equity markets-are the primary influence on association metrics studied since Ball and Brown (1968 J Account Res 6:159-178). Debt markets demand high scores on timeliness, conservatism and Lev's (1989 J Account Res 27(supplement):153-192) R-2, because debt covenants utilize reported numbers. Equity markets do not rate financial reporting consistently with these metrics, because (among other things) they control for the total information incorporated in prices. Single-country studies shed little light on debt versus equity influences, in part because within-country firms operate under a homogeneous reporting regime. International data are consistent with our hypothesis. This is a fundamental issue in accounting.