Does corporate governance affect earnings quality: Evidence from an emerging market

Muhammad Nurul Houqe, Tony van Zijl, Keitha Dunstan, Akm Waresul Karim

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This study examines whether firm governance practices have an effect on accounting earnings quality in Bangladesh. Using a sample of 648 firm-year observations for the period of 2001 - 2006, the result suggests that corporate governance mechanisms provide greater monitoring of financial reporting and these mechanisms positively affect firm earnings quality. This knowledge could be used by the capital market regulator, the Securities and Exchange Commission (SEC), to design mechanisms to constrain managers? earnings management practices. This, in turn, would contribute towards development of an efficient stock market and thus protect investors? interests.
Original languageEnglish
Pages (from-to)48-57
Number of pages10
JournalAcademy of Taiwan Business Management Review
Volume7
Issue number3
Publication statusPublished - 2011

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Corporate governance
Earnings quality
Emerging markets
Managers
Investors
Capital markets
Mechanism design
Stock market
Governance
Corporate governance mechanisms
Financial reporting
Bangladesh
Monitoring
Accounting earnings
Securities and Exchange Commission
Management practices
Earnings management

Cite this

Houqe, Muhammad Nurul ; van Zijl, Tony ; Dunstan, Keitha ; Karim, Akm Waresul. / Does corporate governance affect earnings quality : Evidence from an emerging market. In: Academy of Taiwan Business Management Review. 2011 ; Vol. 7, No. 3. pp. 48-57.
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Does corporate governance affect earnings quality : Evidence from an emerging market. / Houqe, Muhammad Nurul; van Zijl, Tony; Dunstan, Keitha; Karim, Akm Waresul.

In: Academy of Taiwan Business Management Review, Vol. 7, No. 3, 2011, p. 48-57.

Research output: Contribution to journalArticleResearchpeer-review

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