Testing the Relative Power of Accounting Standards Versus Incentives and Other Institutional Features to Influence the Outcome of Financial Reporting in an International Setting
Posted: 5 Jan 2004
Ball Robin and Wu (2003) investigate the relationship between accounting standards and the structure of other institutions on the attributes of the financial reporting system. They find evidence consistent with the hypothesis that beyond accounting standards, the structure of other institutions, such as incentives of preparers and auditors, enforcement mechanisms and ownership structure affects the outcome of the financial reporting system. However, interpretation of the evidence with respect to the notion of quality of the financial reporting system and the quality of accounting standards that the authors introduce is problematic.
Keywords: financial reporting quality, international accounting standards, cross-country comparisons, transparency, timeliness, conservatism, economic income
JEL Classification: D82, F02, G15, G32, M41, M44, M47, M49, 053
Suggested Citation: Suggested Citation