Financial Reporting and Corporate Governance in Developing Countries: A literature Review
Keywords:
Financial Reporting,Corporate Governance, APB.
Abstract
Transparency is one of those terms that have many facets. It is used in different ways. It can refer to the openness of governmental functions. It can also refer to a country’s economy. Or it can refer to various aspects of corporate governance and financial reporting. The Organisation for Economic Co-operation and Development (OECD, 1998) lists transparency as one element of good corporate governance. Kulzick (2004) and others (Blanchet, 2002; Prickett, 2002) view transparency from a user perspective. According to their view, transparency includes the following eight concepts: accuracy, consistency, appropriateness, completeness, clarity, time- liness, convenience, and governance and enforcement. This paper focuses on just one aspect of transparency – timeliness.
References
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Chai, M. L., & Tung, S. (2002). The effect of earnings-announcement timing on earnings manage- ment. Journal of Business Finance & Accounting, 29(9 & 10), 1337–1354.
Chambers, A. E., & Penman, S. H. (1984). Timeliness of reporting and the stock price reaction to earnings announcements. Journal of Accounting Research, 22(1), 21–47.
Davies, B., & Whittred. G. P. (1980). The association between selected corporate attributes and timeliness in corporate reporting: Further analysis. Abacus, 16(1), 48–60.
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Han, J. C.Y., & Wild, J. J. (1997). Timeliness of reporting and earnings information transfers.
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Leventis, S., & Weetman, P. (2004). Timeliness of financial reporting: Applicability of disclosure theories in an emerging capital market. Accounting and Business Research, 34(1), 43–56.
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Rees, W. P., & Giner. B. (2001). On the asymmetric recognition of good and bad news in France, Germany and the UK. Journal of Business Finance & Accounting, 28(9&10), 1285–1332.
Soltani, B. (2002). Timeliness of corporate and audit reports: Some empirical evidence in the French context. The International Journal of Accounting, 37, 215–246.
Trueman, B. (1990). Theories of earnings-announcement timing. Journal of Accounting & Eco- nomics, 13, 285–301.
Whittred, G., & Zimmer, I. (1984). Timeliness of financial reporting and financial distress.
The Accounting Review, 59(2), 287–295.
Whittred, G. P. (1980). Audit qualification and the timeliness of corporate annual reports.
The Accounting Review, 55(4), 563–577.
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Annaert, J., DeCeuster, M. J. K., Polfliet, R., & Campenhout, G. V. (2002). To be or not be . . . ‘too late’: The case of the Belgian semi-annual earnings announcements. Journal of Busi- ness Finance & Accounting, 29(3 & 4), 477–495.
Ashbaugh, H., Johnstone, K. M., & Warfield, T. D. (1999). Corporate reporting on the internet.
Accounting Horizons, 13(3), 241–257.
Ashton, R. H., Graul, P. R., & Newton, J. D. (1989). Audit delay and the timeliness of corporate reporting. Contemporary Accounting Research, 5(2), 657–673.
Atiase, R. K., Bamber, L. S., & Tse, S. (1989). Timeliness of financial reporting, the firm size effect, and stock price reactions to annual earnings announcements. Contemporary Accounting Research, 5(2), 526–552.
Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6, 159–178.
Ball, R., Kothari, S.P., & Robin, A. (2000). The effect of international institutional factors on prop- erties of accounting earnings. Journal of Accounting and Economics, 29(1), 1–51.
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting & Economics, 24, 3–37.
Bates, R. J. (1968). Discussion of the information content of annual earnings announcements.
Journal of Accounting Research, 6(Supp.), 93–95.
Beaver, W.H. (1968). The information content of annual earnings announcements. Journal of Accounting Research, 6(Supp), 67–92.
Blanchet, J. (2002). Global standards offer opportunity. Financial Executive (March/April), 28–30.
Brown, P., & Kennelly, J. W. (1972). The information content of quarterly earnings: An extension and some further evidence. Journal of Business, 45, 403–415.
Chai, M. L., & Tung, S. (2002). The effect of earnings-announcement timing on earnings manage- ment. Journal of Business Finance & Accounting, 29(9 & 10), 1337–1354.
Chambers, A. E., & Penman, S. H. (1984). Timeliness of reporting and the stock price reaction to earnings announcements. Journal of Accounting Research, 22(1), 21–47.
Davies, B., & Whittred. G. P. (1980). The association between selected corporate attributes and timeliness in corporate reporting: Further analysis. Abacus, 16(1), 48–60.
DeCeuster, M., & Trappers, D. (1993). Determinants of the timeliness of Belgian financial state- ments. Working Paper, University of Antwerp, cited in Annaert et al, 2002.
Demos, T. (2006, February 6). The Russia 50: The country’s largest public companies. Fortune, 153(2), 70–71.
Dwyer, P. D., & Wilson, E. R. (1989). An empirical investigation of factors affecting the timeliness of reporting by municipalities. Journal of Accounting and Public Policy, 8(1), 29–55.
Financial Accounting Standards Board. (1980). Statement of financial accounting concepts no. 2, qualitative characteristics of accounting information. Stamford, CT: Author.
Gigler, F. B., & Hemmer, T. (2001). Conservatism, optimal disclosure policy, and the timeliness of financial reports. The Accounting Review, 76(4), 471–493.
Givoli, D., & Palmon, D. (1982). Timeliness of annual earnings announcements: Some empirical evidence. The Accounting Review, 57(3), 486–508.
Han, J. C.Y., & Wang, S.-W. (1998). Political costs and earnings management of oil companies during the 1990 Persian Gulf crises. The Accounting Review, 73, 103–117.
Han, J. C.Y., & Wild, J. J. (1997). Timeliness of reporting and earnings information transfers.
Journal of Business Finance & Accounting, 24(3&4), 527–540.
Haw, I.-M., Qi, D., & Wu, W. (2000). Timeliness of annual report releases and market reaction to earnings announcements in an emerging capital market: The case of China. Journal of Interna- tional Financial Management and Accounting, 11(2), 108–131.
Hendriksen, E. S., & van Breda, M. F. (1992). Accounting theory (5th ed.). Burr Ridge, IL: Irwin. Jindrichovska, I., & Mcleay, S. (2005). Accounting for good news and accounting for bad news: Some empirical evidence from the Czech Republic. European Accounting Review, 14(3):
635–655.
Keller, S. B. (1986). Reporting timeliness in the presence of subject to audit qualifications. Journal of Business Finance & Accounting, 13(1), 117–124.
Kenley, W. J., & Staubus, G. J. (1974). Objectives and concepts of financial statements. Account- ing Review, 49(4), 888–889.
Krishnan, G. V. (2005). The association between big 6 auditor industry expertise and the asymmet- ric timeliness of earnings. Journal of Accounting, Auditing & Finance, 20(3), 209–228.
Kross, W., & Schroeder, D.A. (1984). An empirical investigation of the effect of quarterly earnings announcement timing on stock returns. Journal of Accounting Research, 22(1), 153–176.
Kulzick, R. S. (2004). Sarbanes-Oxley: Effects on financial transparency. S.A.M. Advanced Management Journal, 69(1), 43–49.
Lawrence, J. E., & Glover, H. D. (1998). The effect of audit firm mergers on audit delay. Journal of Managerial Issues, 10(2), 151–164.
Leventis, S., & Weetman, P. (2004). Timeliness of financial reporting: Applicability of disclosure theories in an emerging capital market. Accounting and Business Research, 34(1), 43–56.
McGee, R. W. (2006). Timeliness of financial reporting in the energy sector. Russian/CIS Energy & Mining Law Journal, 4(2), 6–10.
McGee, R. W. (2007a). Corporate governance in Russia: A case study of timeliness of financial reporting in the telecom industry, International Finance Review, 7, 365–390.
McGee, R. W. (2007b). Corporate governance and the timeliness of financial reporting: A case study of the Russian energy sector. Fifth International Conference on Accounting and Finance in Transition. London, July 12–14.
McGee, R. W. (2007c). Transparency and disclosure in Russia. In T. M. Mickiewicz (ed.), Corporate governance and finance in Poland and Russia (pp. 278–295). London: Palgrave Macmillan.
McGee, R. W., & Igoe, D. N. (2008). Corporate governance and the timeliness of financial report- ing: A comparative study of selected EU and Transition countries. Proceedings of the 43rd Annual Western Regional Meeting of the American Accounting Association, San Francisco, May 1–3, pp. 74–87.
McGee, R. W., & Preobragenskaya, G. G. (2005). Accounting and financial system reform in a transition economy: A case study of Russia. New York: Springer.
McGee, R. W., & Preobragenskaya, G. G. (2006). Accounting and financial system reform in Eastern Europe and Asia. New York: Springer.
McGee, R. W., & Tarangelo, T. (2008). The timeliness of financial reporting and the Russian banking system: An empirical study. In R. W. McGee (ed.), Accounting reform in transition and developing economies. New York: Springer.
McGee, R. W., & Yuan, X. (2008). Corporate governance and the timeliness of financial report- ing: An empirical study of the People’s Republic of China. International Journal of Business, Accounting and Finance, forthcoming.
Organisation for Economic Co-operation and Development. (1998). Global Corporate Governance Principles. Paris: Author.
OECD (2004). OECD Principles of Corporate Governance. Paris: Author.
Pope, P. F., & Walker, M. (1999). International differences in the timeliness, conservatism, and classification of earnings. Journal of Accounting Research, 37(Supp.), 53–87.
Prickett, R. (2002). Sweet clarity. Financial Management (September), 18–20.
Rees, W. P., & Giner. B. (2001). On the asymmetric recognition of good and bad news in France, Germany and the UK. Journal of Business Finance & Accounting, 28(9&10), 1285–1332.
Soltani, B. (2002). Timeliness of corporate and audit reports: Some empirical evidence in the French context. The International Journal of Accounting, 37, 215–246.
Trueman, B. (1990). Theories of earnings-announcement timing. Journal of Accounting & Eco- nomics, 13, 285–301.
Whittred, G., & Zimmer, I. (1984). Timeliness of financial reporting and financial distress.
The Accounting Review, 59(2), 287–295.
Whittred, G. P. (1980). Audit qualification and the timeliness of corporate annual reports.
The Accounting Review, 55(4), 563–577.
World Bank. (2001). Report on the Observance of Standards and Codes (ROSC), Corporate Gov- ernance Country Assessment, Republic of Croatia, September. World Bank. Retrieved from www.worldbank.org.
World Bank. (2002a). Report on the Observance of Standards and Codes (ROSC), Corporate Gov- ernance Country Assessment, Bulgaria, September. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2002b). Report on the Observance of Standards and Codes (ROSC), Corporate Gov- ernance Country Assessment, Czech Republic, July. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2002c). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Georgia, March. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2002d). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Latvia, December. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2002e). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Republic of Lithuania, July. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2003a). Report on the Observance of Standards and Codes (ROSC), Corporate Gov- ernance Country Assessment, Hungary, February. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2003b). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Slovak Republic, October. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2004a). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Moldova, May. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2004b). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Romania, April. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2004c). Report on the Observance of Standards and Codes (ROSC), Corporate Gov- ernance Country Assessment, Slovenia, May. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2005a), Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Armenia, April. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2005b). Report on the Observance of Standards and Codes (ROSC), Corpo- rate Governance Country Assessment, Azerbaijan, July. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2005c). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Macedonia, June. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2005d). Report on the Observance of Standards and Codes (ROSC), Cor- porate Governance Country Assessment, Poland, June. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2006a). Report on the Observance of Standards and Codes (ROSC), Corporate Gov- ernance Country Assessment, Bosnia and Herzegovina, June. Washington, DC: World Bank. Retrieved from www.worldbank.org.
World Bank. (2006b). Report on the Observance of Standards and Codes (ROSC), Corporate Governance Country Assessment, Ukraine, October. Washington, DC: World Bank. Retrieved from www.worldbank.org.
Published
2018-10-24
How to Cite
Barghouthi, O. A. (2018). Financial Reporting and Corporate Governance in Developing Countries: A literature Review. International Journal of Shari’ah and Corporate Governance Research, 1(1), 26-31. https://doi.org/10.46281/ijscgr.v1i1.58
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2018 Orobah Ali Barghouthi
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