Financial Accounting Information and Corporate Governance
Robert M. Bushman
University of North Carolina Kenan-Flagler Business School
Abbie J. Smith
University of Chicago - Booth School of Business
Journal of Accounting & Economics, Vol. 32, Nos. 1-3, December 2001
This paper reviews and proposes additional research concerning the role of publicly reported financial accounting information in the governance processes of corporations. We first review and analyze research on the use of financial accounting measures in managerial incentive plans and explore future research directions. We then propose that governance research be extended to explore more comprehensively the use of financial accounting information in additional corporate control mechanisms, and suggest opportunities for expanding such research in the U.S. and abroad, including the consideration of interactions among control mechanisms. We also propose research to investigate more directly the effects of financial accounting information on economic performance through its role in governance and more generally using a cross-country approach.
Keywords: Corporate governance; Financial accounting; Incentive contracts
JEL Classification: D82, G30, G34, J33, L22, M40, M41, M46Accepted Paper Series
Date posted: October 25, 2001
© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.235 seconds