What is it about?
This paper tests the impact of firm-level determinants on the quality of disclosed earnings across Eastern Europe. The ownership structure of companies plays important role in determining the quality of earnings in most transparent countries whereas financial factors play significant role in least transparent countries. The markets respond positively to earnings quality in most transparent group of countries.
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Why is it important?
This study extends the knowledge, not only for academicians and investors but for policy makers as well. This study re-emphasizes the role of country-level transparency and firm-level determinants of the corporate transparency within Europe.
Perspectives
This study is among the firsts that explore the cross-sectional differences in reported earnings' quality among Eastern European countries. Groups of countries made on the basis of Transparency International's rankings gives an additional advantage because these rankings provide a useful mechanism to judge the overall transparency status of a country, Corporate sector plays important role in determining the rankings. The findings are not only interesting for academics but also give a useful information for investors and policy makers.
Dr Sheraz Ahmed
Lappeenrannan Teknillinen Yliopisto
Read the Original
This page is a summary of: Determinants of the quality of disclosed earnings and value relevance across transitional Europe, Journal of Accounting in Emerging Economies, August 2015, Emerald,
DOI: 10.1108/jaee-09-2011-0044.
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