Transparency, Financial Accounting Information, and Corporate Governance

Abstract:     
Audited financial statements along with supporting disclosures form the foundation of the firm-specific information set available to investors and regulators. In this paper, the authors discuss economics-based research focused on the properties of accounting systems and the surrounding institutional environment important to effective governance of firms. They provide a framework for understanding the operation of accounting information in an economy, discuss a broad range of important research findings, present a conceptual framework for characterizing and measuring corporate transparency at the country level, and isolate a number of future research possibilities.

Number of Pages in PDF File: 23

Keywords: financial accounting, corporate governance, transparency

JEL Classification: D8, G3, M4

Accepted Paper Series