Title: Quality of financial reporting - influence of corporate governance regulations

Authors: Sushma Vishnani

Addresses: Jaipuria Institute of Management, Vineet Khand, Gomti Nagar, Lucknow-226001, Uttar Pradesh, India

Abstract: This paper aims at analysing the quality of reported earnings for A and B group companies listed in Bombay Stock Exchange of India. For this purpose, the theoretical model proposed by Dechow and Dichev has been used to assess the quality of reported earnings. The results of the study show that reported earning quality of A-group companies is superior to that of B-group companies. The results further show that there is a drastic improvement in the reported earnings quality of B-group companies after the imposition of Clause 49 (the corporate governance related to mandatory disclosures for all listed companies) in January 2006.

Keywords: financial reporting; earnings quality; corporate governance; accruals quality; India; mandatory disclosure.

DOI: 10.1504/IJICBM.2017.083234

International Journal of Indian Culture and Business Management, 2017 Vol.14 No.3, pp.294 - 305

Received: 05 Jan 2016
Accepted: 06 May 2016
Published online: 22 Mar 2017 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article