On the Relation between Financial Reporting Quality and Country Attributes: Research Challenges and Opportunities

• 成果类型: Article
• 署名作者: Isidro, Helena; Nanda, Dhananjay (DJ); Wysocki, Peter D.
• 署名单位: Instituto Universitario de Lisboa; University of Miami; Boston University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52607
• 发表日期: 2020
• 页码: 279-314
• 关键词: MANDATORY IFRS ADOPTION; annual earnings announcements; Investor protection; information asymmetry; management; culture; disclosure; ECONOMICS; PRIVATE; origins

摘要

We provide new evidence on the codependence among the many country attributes previously linked to financial reporting quality. First, we show that the synchronicity of 21 changing country attributes spikes surrounding mandatory IFRS adoption. Thus, while IFRS adoption explains'' increased reporting quality, this finding disappears after including other changing country determinants of reporting quality. Second, a single underlying factor distills the numerous reporting quality measures used in the international literature. Finally, we document that four underlying country factors largely subsume the individual explanatory power of 72 candidate country attributes in explaining reporting quality levels across countries. We conclude with implications and suggestions for future research on international reporting quality.