How to Measure Country Level Financial Reporting Quality?

36 Pages Posted: 22 Jul 2012

See all articles by Qingliang Tang

Qingliang Tang

University of Western Sydney

Huifa Chen

Shanghai Maritime University

Zhijun Lin

Hong Kong Baptist University

Date Written: May 18, 2012

Abstract

This study constructs six accounting and auditing indicators to develop a comprehensive index to measure financial reporting quality of 38 main capital markets in the world from 2000 to 2007. In order to test the validity of the methodology, we use the index to tests national institutional impact on financial reporting quality and find results that are consistent with our prediction and previous studies. The evidence suggests the innovative quality measure is appropriate and provide a useful tool for researchers who concern financial reporting quality at country level.

Keywords: Country level financial reporting quality, financial reporting quality indicators and index

JEL Classification: M41

Suggested Citation

Tang, Qingliang and Chen, Huifa and Lin, Zhijun, How to Measure Country Level Financial Reporting Quality? (May 18, 2012). Available at SSRN: https://ssrn.com/abstract=2114810 or http://dx.doi.org/10.2139/ssrn.2114810

Qingliang Tang (Contact Author)

University of Western Sydney ( email )

School of Accounting
Locked Bag 1797, Penrith South DC
Sydney, NSW 1797
Australia
+61 2 9685 9465 (Phone)
+61 2 9685 9339 (Fax)

Huifa Chen

Shanghai Maritime University ( email )

School of Economics & Management
1550 Harbour Avenue
Shanghai, 201306
China

Zhijun Lin

Hong Kong Baptist University ( email )

Department of Accountancy & Law
School of Business
Kowloon Tong, Kowloon
Hong Kong

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