scholarly journals Does earnings quality matter? Evidence from the Athens Exchange

2020 ◽  
pp. 93-112
Author(s):  
Ioannis Asimakopoulos ◽  
◽  
Athanasios P. Fassas ◽  
Dimitris Malliaropulos
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Earnings Quality ◽  
Banking System ◽  
Governance Framework ◽  
Market Participants ◽  
Financial Firms ◽  
Specific Factors ◽  
The Right

The relation between accounting earnings and firm valuation has long been a topic of interest to academics and stock market participants. The study analyses the relationship between earnings quality and firm value using a sample of non-financial firms with shares listed on the Athens Exchange over the period 2004-2019. The empirical findings indicate that investors value earnings quality, and this is reflected in a better valuation for firms having earnings of higher quality. The results are robust to different methodologies and controls for firm-specific factors. The evidence is of particular importance for Greek firms seeking to expand their sources of financing beyond the Greek banking system. Such a development requires constant monitoring and strengthening of the corporate governance framework, with the aim of improving the quality of information conveyed by the firms to investors. In this respect, the provisions of Law 4706/2020 regarding the Greek corporate governance framework and the operation of the Hellenic Capital Market Commission seem to be in the right direction.

scholarly journals Do Analysts’ Cash Flow Forecasts Improve Firm Value?

2020 ◽  
Vol 8 (4) ◽  
pp. 60
Author(s):  
Hyun Min Oh ◽  
Sam Bock Park ◽  
Jong Hyun Kim
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Earnings Quality ◽  
Financial Analysts ◽  
Market Participants ◽  
Economic Decision Making ◽  
Cash Flow Forecasting ◽  
Cash Flow Forecasts ◽  
Positive Effect

We examine whether analysts’ cash flow forecasts improve firm value. First, we analyze whether the joint issuance of financial analysts’ earnings and cash flow forecasts improve firm value. Second, we analyze whether the quality of analysts’ cash flow forecasts improve firm value. The empirical results of our study are as follows. First, the joint issuance of analysts’ earnings and cash flow forecasts has a significantly positive effect on firm value; providing cash flow forecasts reduces information asymmetry and increases earnings quality, thereby increasing corporate value. Second, the quality of analysts’ cash flow forecasts has a significantly positive effect on firm value; the more accurate cash flow forecasts are, the higher firm value is. Our study provides empirical evidence for that the conclusion that cash flow forecasting information produced by financial analysts provides useful information for capital market participants in economic decision making.

scholarly journals Pengaruh Corporate Governance terhadap Nilai Perusahaan pada Perusahaan Perbankan yang Terdaftar di BEI Tahun 2011-2014

Telaah Bisnis ◽  
2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Andy Meindarto ◽  
Fitri Lukiastuti
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Earnings Quality ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Multiple Linear Regression Analysis ◽  
Managerial Ownership ◽  
Governance Mechanism

Abstract This study aims to determine the effect of corporate governance on corporate value with the quality of earnings as an intervening variable. Corporate governance mechanism uses four variables managerial: ownership, institutional ownership, the proportion of independent directors and audit committee. The sample consist of 28 banking companies in 2011-2014. The research used Multiple Linear Regression Analysis to test the influence of in­dependent variables on dependent variable. Varible of earnings quality that measured by DA (Discretionary Accrual) has effect on firm value. Institutional ownership of independent board and audit committee have effect on earning quality. Other variables such managerial owner­ship and institutional ownership have no effect on earnings quality. Institutional ownership and independent board have effect on firm value, meanwhile managerial ownership and the audit committee have no effect on firm value. The value of adjusted R2 for the effect of corporate gov­ernance mechanisms on the quality of earnings was 0.170 or 17%. While the value of adjusted R2 for the effect of corporate governance mechanisms on firm value with the quality of earnings as an intervening variable was 0.311 or 31.1%.

scholarly journals Corporate Governance Role in Improving the Financial Information Quality within the Saudi Electricity Company: دور حوكمة الشركات في تحسين جودة المعلومات المحاسبة في الشركة السعودية للكهرباء

2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Arwa Hassan Baabbad
Keyword(s):  
Corporate Governance ◽  
Significant Relationship ◽  
Information Quality ◽  
Survey Methodology ◽  
Governance System ◽  
And Performance ◽  
The Right ◽  
Descriptive Survey ◽  
The Impact

The present study aimed to find out the role of corporate governance in improving the quality of information in the Saudi Electricity Company. The researcher used the descriptive survey methodology. As to achieve the study objectives، the researcher utilized the questionnaire tool، in which the study sample (50) members of SEC distributed into employees، managers and decision makers. The study concluded to many results، among of which are: there is a statistically significant relationship between the availability of corporate governance system and performance improvement of the Saudi Electricity Company، there is a statistically significant relationship between corporate governance and appropriateness in improving the performance of the Saudi Electricity Company، it was also found that there is a statistically significant relationship between corporate governance and optimal disclosure in improving the performance of Saudi Electricity Company. The study also found that there is a statistically significant relationship between corporate governance and the right timing in improving the performance of the Saudi Electricity Company. The study suggested number of recommendations، among of which are: the importance of the shareholding companies to comply with the corporate governance regulations considering the interest of companies and their shareholders and all other parties benefiting from the financial statements، attempting to take advantage of the multiple benefits of corporate governance and expand its application in the various economic units in Saudi Arabia، conduct studies on companies that applies the requirement of the Corporate Governance Regulations، and the impact of the application of corporate governance on the shares of these units to find out the relationship between the quality of accounting information in light of the application of corporate governance and the stock market from another angle، imposing deterrent penalties concerning the Corporate Governance Regulations on companies that did not apply this regulation.

Audit Committee Characteristics and Earnings Quality

2020 ◽  
pp. 23-49
Author(s):  
Fatima Albedal ◽  
Allam Mohammed Hamdan ◽  
Qasim Zureigat
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Earnings Quality ◽  
Listed Companies ◽  
Independent Variables ◽  
Pooled Data ◽  
Data Regression ◽  
Code Of Corporate Governance ◽  
The Relationship

This chapter investigates the relationship between the audit committee and earnings quality of listed companies in Bahrain Bourse and to examine whether those companies comply with the obligatory code of corporate governance. The sample of this study includes 40 companies listed in Bahrain Bourse for the period 2013-2017. The model of the study tested the relationship between the independent variables of audit committee characteristics and the dependent variable of earnings quality using pooled data regression. The findings of the study showed that the Bahraini listed companies comply and follow the code of corporate governance and some audit committee characteristics have an impact on earnings quality.

scholarly journals Effect of corporate governance board leadership models and attributes on earnings quality of quoted nigerian companies

2019 ◽  
Vol 6 (1) ◽  
pp. 1683124 ◽  
Author(s):  
Cosmas Ikechukwu Asogwa ◽  
Grace Nyereugwu Ofoegbu ◽  
Judith Ima Nnam ◽  
Onyekachi David Chukwunwike
Keyword(s):  
Corporate Governance ◽  
Earnings Quality ◽  
Leadership Models ◽  
Board Leadership

Choice of governance structure and earnings quality

2016 ◽  
Vol 29 (4) ◽  
pp. 372-390 ◽  
Author(s):  
Pamela Kent ◽  
Richard Anthony Kent ◽  
James Routledge ◽  
Jenny Stewart
Keyword(s):  
Cluster Analysis ◽  
Corporate Governance ◽  
Firm Size ◽  
Design Methodology ◽  
Best Practice ◽  
Earnings Quality ◽  
Governance Structure ◽  
Governance Mechanisms ◽  
Content Type

Purpose The purpose of this paper is to examine the effectiveness of voluntary governance mechanisms in Australia. Design/methodology/approach This study identifies similar choices of corporate governance by Australian firms and tests the effectiveness of the choices made based on the earnings quality of reported firms. Cluster analysis is conducted using governance best practice variables, firm size and an earnings quality variable. Findings This paper’s results support the voluntary governance approach for smaller firms, but suggest that mandatory governance requirements could be beneficial for larger firms. Evidence suggests that a benefit accrues for larger firms with the adoption of governance best practice. Cluster analysis indicates that larger firms tend to exhibit higher levels of adoption of governance best practice than smaller firms. Originality/value This paper adds to the literature by providing important information regarding the suitability of adoption of voluntary governance mechanisms in Australia.

scholarly journals Ownership Structure and Earnings Quality of Listed financial Firms in Nigeria

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Oladejo Abiodun Oyebamiji
Keyword(s):  
Ownership Structure ◽  
Significant Relationship ◽  
Positive Impact ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Random Effect ◽  
Institutional Ownership ◽  
Least Square ◽  
Financial Firms

The study determined the effect of ownership structure on earnings quality of listed financial firms in Nigeria. The study employed secondary data. The study population comprised all the 16 listed financial firms on the Nigerian Stock Exchange. Purposive sampling technique was adopted to select top 10 banks whose shares are consistently traded on the stock market. Data for ownership structure and earnings quality were sourced from the audited financial statements of the selected firms and the Nigerian Stock Exchange Factbook over a period of 10 years (2009-2018). Collected data were analyzed using pooled ordinary least square, fixed effect and random effect estimation techniques. The result from the study showed that institutional ownership (t=4.3, p˂0.05) had a positive and statistically significant relationship with earnings quality while ownership concentration (t=- 2.5, p˂0.05) had a negative and significant relationship with earnings quality. The study recommended that the institutional ownership which shows a positive relationship with earnings quality enables improved earnings of the sampled listed banks. More institutional participation should be allowed in the Nigerian listed banks as it was proved that they have the power to monitor the affairs of managers as this will have a positive impact on earnings. Concentration ownership gives mangers incentives to manage earnings to achieve short term opportunistic interest; therefore it should not be encouraged.

scholarly journals Ownership monitoring mechanism and corporate performance: evidence from banking firms in Asian emerging markets

2008 ◽  
Vol 5 (3) ◽  
pp. 349-357
Author(s):  
Abdul Hadi Zulkafli ◽  
Fazilah Abdul Samad ◽  
Izani Ibrahim
Keyword(s):  
Corporate Governance ◽  
Hong Kong ◽  
Financial Crisis ◽  
Emerging Markets ◽  
Firm Value ◽  
Financial Firms ◽  
Monitoring Mechanism ◽  
Asian Emerging Markets ◽  
Corporate Governance Reforms ◽  
Governance Reforms

Corporate governance is regarded as a major issue during the post-financial crisis period in Asia. These countries have implemented corporate governance reforms to enhance the protection of their shareholders and stakeholders interests. Such reforms may affect the conduct of business of all corporations in the region as it allows for greater monitoring especially by the shareholders. Unlike earlier studies which focused on non-financial firms, this study analyzes the corporate governance involving ownership monitoring mechanism of listed banking firms in nine Asian emerging markets which are Malaysia, Thailand, Philippines, Indonesia, Korea, Singapore, Hong Kong, Taiwan and India. It is found that ownership monitoring mechanisms of the banking firms in Asian emerging markets are negatively related with firm value measured by Tobin’s Q

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