Financial Accounting Information and Corporate Governance

Posted: 25 Oct 2001  

Robert M. Bushman

University of North Carolina Kenan-Flagler Business School

Abbie J. Smith

University of Chicago - Booth School of Business

Multiple version iconThere are 2 versions of this paper

Abstract

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, M46

Suggested Citation

Bushman, Robert M. and Smith, Abbie J., Financial Accounting Information and Corporate Governance. Journal of Accounting & Economics, Vol. 32, Nos. 1-3, December 2001. Available at SSRN: https://ssrn.com/abstract=284164

Robert M. Bushman (Contact Author)

University of North Carolina Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States
919-962-9809 (Phone)

HOME PAGE: http://public.kenan-flagler.unc.edu/faculty/bushmanr/

Abbie J. Smith

University of Chicago - Booth School of Business ( email )

1101 East 58th Street
Graduate School of Business
Chicago, IL 60637-1561
United States
773-702-7295 (Phone)
773-702-0458 (Fax)

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