This paper examines the impact of corporate governance practices on accruals quality during the global financial crisis (GFC). Prior research establishes linkages between good governance and accruals quality during periods of financial stability (Strydom 2008; Kent et al. 2010; Dhaliwal et al. 2010). We extend this analysis to the 2008-2009 GFC period to assess whether the monitoring and informational benefits of corporate governance mitigate the negative effects of the exogenous shock, thereby increasing accruals quality. Our findings show that good corporate governance practices increases accruals quality during the GFC. Furthermore, governance is shown to positively impact innate accruals quality and, to some extent, discretionary accruals quality.
|Title of host publication||Proceedings of the 2012 AFAANZ Conference|
|Editors||K Chalmers, D Hay|
|Place of Publication||Melbourne|
|Publisher||Accounting and Finance Association of Australia and New Zealand|
|Number of pages||28|
|Publication status||Published - 2012|
|Event||2012 Accounting and Finance Association of Australia and New Zealand Conference - Melbourne, Melbourne, Australia|
Duration: 1 Jul 2012 → 2 Jul 2012
|Conference||2012 Accounting and Finance Association of Australia and New Zealand Conference|
|Abbreviated title||AFAANZ Conference|
|Period||1/07/12 → 2/07/12|
Aldamen, H., & Duncan, K. (2012). Does good corporate governance enhance accruals quality during the Global Financial Crisis? In K. Chalmers, & D. Hay (Eds.), Proceedings of the 2012 AFAANZ Conference (pp. 1-28). Melbourne : Accounting and Finance Association of Australia and New Zealand.