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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