Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/11100
Title: Disclosure Quality, Corporate Governance and Earnings Management
Contributor(s): Katmon, Nooraisah (author); Farooque, Omar  (author)orcid 
Publication Date: 2012
Handle Link: https://hdl.handle.net/1959.11/11100
Abstract: This study investigates the association between the proxies of disclosure quality and earnings management in the UK listed companies. Building on extant literature, it contributes to providing new insights on simultaneous relationship between disclosure quality and earnings management while controlling for internal governance mechanisms. Unlike prior studies, this study also examines the potential substitutive or complementary effects of disclosure quality and internal governance in explaining earnings management. The evidence suggests an inverse bi-directional relationship between disclosure quality and earnings management, implying that the higher the disclosure quality, the lower the earnings management and vice-versa. Moreover, the outperformance of disclosure quality over internal governance mechanisms in curbing earnings management is documented indicating substituting effects between disclosure quality and corporate governance mechanisms. These findings are consistent with the premise that in the presence of high quality disclosure regime, investors are well/better informed about all material activities of the companies that provide managers less incentive to manipulate earnings at the costs of investors. These results suggest strengthening of internal governance mechanisms to protect investors from potential earnings management as well as upholding the disclosure quality in firms' settings.
Publication Type: Conference Publication
Conference Name: GAOC 2012: 3rd Global Accounting and Organisational Change Conference - "The Role of Accounting in Promoting Good Governance and Sustainable Management", Sunway, Malaysia, 14th - 17th July, 2012
Conference Details: GAOC 2012: 3rd Global Accounting and Organisational Change Conference - "The Role of Accounting in Promoting Good Governance and Sustainable Management", Sunway, Malaysia, 14th - 17th July, 2012
Source of Publication: Presented at the Third Biennial International Conference of the Global Accounting and Organisational Change Research (GAOCR) Network
Field of Research (FOR): 150103 Financial Accounting
150303 Corporate Governance and Stakeholder Engagement
HERDC Category Description: E3 Extract of Scholarly Conference Publication
Other Links: http://sunway.edu.my/university/GAOC2012
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Appears in Collections:Conference Publication
UNE Business School

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