Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/ultimate-ownership-income-management-and-legal-and-extra-legal-akeTpQHs46
References (64)
-
Klein Klein (2002)
Audit Committee, Board of Director Characteristics and Earnings ManagementJournal of Accounting and Economics, 33
-
M. Bradshaw, Scott Richardson, Richard Sloan (2001)
Do Analysts and Auditors Use Information in AccrualsJournal of Accounting Research, 39
-
R. Ball, Lakshmanan Shivakumar (2004)
Earnings Quality in U.K. Private FirmsFinancial Accounting eJournal
-
April Klein (2002)
Audit Committee, Board of Director Characteristics, and Earnings ManagementSEIN Corporate Governance & Accountability eJournal
-
(2002)
Wasley. “Performance Matched Discretionary Accrual Measures. -
(2000)
The Effect of Institutional Factors on Properties on Accounting Earnings: International Evidence. -
Tatiana Nenova (2003)
The value of corporate voting rights and control: A cross-country analysisJournal of Financial Economics, 68
-
Ashiq Ali, Lee-Seok Hwang (1999)
Country-Specific Factors Related to Financial Reporting and the Value Relevance of Accounting DataJournal of Accounting Abstracts
-
(2002)
Do Analysts Matter Most When Investors are Protected Least? International Evidence. -
Sudipta Basu (1997)
The conservatism principle and the asymmetric timeliness of earningsJournal of Accounting and Economics, 24
-
R. Porta, Florencio Silanes, Andrei Shleifer (1998)
Corporate Ownership Around the WorldCorporate Finance and Organizations eJournal
-
M. Bagnoli, Susan Watts (2000)
The Effect of Relative Performance Evaluation on Earnings Management: A Game-theoretic ApproachJournal of Accounting and Public Policy, 19
-
Andrei Shleifer, Robert Vishny (1996)
A Survey of Corporate GovernanceOrganizations & Markets eJournal
-
Terry Warfield, J. Wild, Kenneth Wild (1995)
Managerial ownership, accounting choices, and informativeness of earningsJournal of Accounting and Economics, 20
-
Robert Bushman, Abbie Smith (2001)
Financial Accounting Information and Corporate GovernanceJournal of Financial Abstracts eJournal
-
Shleifer Shleifer, Vishny. Vishny. (1997)
A Survey of Corporate GovernanceJournal of Finance, 52
-
Richard Frankel, Marilyn Johnson, Karen Nelson (2002)
The Relation between Auditors' Fees for Nonaudit Services and Earnings ManagementThe Accounting Review, 77
-
William Kinney, R. Libby (2002)
Discussion of The Relation between Auditors' Fees for Nonaudit Services and Earnings ManagementThe Accounting Review, 77
-
Patricia Dechow, Ilia Dichev (2002)
The Quality of Accruals and Earnings: The Role of Accrual Estimation ErrorsThe Accounting Review, 77
-
M. Faccio, Larry Lang (2002)
The Ultimate Ownership of Western European CorporationsCorporate Finance: Governance
-
S. Claessens, Simeon Djankov, Larry Lang (1999)
The Separation of Ownership and Control in East Asian CorporationsCorporate Finance and Organizations eJournal
-
Whitney Newey, K. West (1987)
Hypothesis Testing with Efficient Method of Moments EstimationInternational Economic Review, 28
-
Bushman Bushman, Smith. Smith. (2001)
Financial Accounting Information and Corporate GovernanceJournal of Accounting and Economics, 32
-
(1998)
Vishny. “Law and Finance. -
Shorey Peterson, A. Berle, G. Means (1933)
The Modern Corporation and Private Property.Journal of the American Statistical Association, 28
-
Claessens Claessens, Djankov Djankov, Lang. Lang. (2000)
The Separation of Ownership and Control in East Asian CorporationsJournal of Financial Economics, 58
-
Ron Kasznik (1996)
On the Association between Voluntary Disclosure and Earnings ManagementJournal of Accounting Abstracts
-
(1991)
Distribution of Firm-Year Observations Across the Sample Countries -
J. Barton, Paul Simko (2002)
The Balance Sheet as an Earnings Management ConstraintSocial Science Research Network
-
M. McNichols (2000)
Research design issues in earnings management studiesJournal of Accounting and Public Policy, 19
-
(1999)
Understanding the Determinants of Managerial Ownership and the Link between Ownership and Performance. -
Barton Barton, Simko. Simko. (2002)
The Balance Sheet as an Earnings Management ConstraintThe Accounting Review, 77
-
Dyck Dyck, Zingales. Zingales. (2004)
Private Benefits of Control: An International ComparisonJournal of Finance
-
Joseph Fan, T. Wong (2000)
Corporate Ownership Structure and the Informativeness of Accounting Earnings in East AsiaAFA 2001 New Orleans Meetings (Archive)
-
J. Francis, K. Schipper, Linda Vincent (2005)
Earnings and dividend informativeness when cash flow rights are separated from voting rightsJournal of Accounting and Economics, 39
-
Johnson Johnson, La Porta La Porta, Lopez‐de‐Salines Lopez‐de‐Salines, Shleifer. Shleifer. (2002)
TunnelingAmerican Economic Review, 90
-
M. McNichols, G. Wilson (1988)
Evidence of Earnings Management from the Provision for Bad DebtsJournal of Accounting Research, 26
-
Shivaram Rajgopal, Morton Pincus (2000)
The Interaction between Accrual Management and Hedging: Evidence from Oil and Gas FirmsFinancial Accounting
-
Florencio Silanes, Andrei Shleifer, Robert Vishny (1998)
Agency Problems and Dividend Policies Around the WorldChicago Booth: Fama-Miller Working Paper Series
-
(1998)
The rule of law index -
H. DeAngelo, L. Deangelo, Douglas Skinner (1994)
Accounting choice in troubled companiesJournal of Accounting and Economics, 17
-
Leuz Leuz, Nanda Nanda, Wysocki Wysocki (2003)
Earnings Management and Investor Protection: An International ComparisonJournal of Financial Economics, 69
-
R. Morck, David Stangeland, B. Yeung (1998)
Inherited Wealth, Corporate Control and Economic Growth: the Canadian DiseaseDevelopment Economics
-
(2003)
The World Price of Earnings Quality. -
Mark Lang, J. Raedy, Michelle Yetman (2003)
How Representative are Firms that are Cross Listed in the United States? An Analysis of Accounting QualityJournal of Accounting Research, 41
-
W. Gebhardt, Charles Lee, B. Swaminathan (2000)
Toward an Implied Cost of CapitalCorporate Finance and Organizations eJournal
-
P. Healy, James Wahlen (1998)
A Review of the Earnings Management Literature and its Implications for Standard SettingCorporate Governance & Accounting eJournal
-
La Porta La Porta, Lopez‐de‐Silanes Lopez‐de‐Silanes, Shleifer Shleifer, Vishny. Vishny. (1998)
Law and FinanceJournal of Political Economy, 106
-
L. Bebchuk, Reinier Kraakman, George Triantis (1999)
Stock Pyramids, Cross-Ownership, and Dual Class Equity: The Creation and Agency Costs of Separating Control from Cash Flow RightsCorporate Law: Finance & Corporate Governance Law eJournal
-
La Porta La Porta, Lopez‐de‐Silanes Lopez‐de‐Silanes, Shleifer Shleifer (1999)
Corporate Ownership around the WorldJournal of Finance, 54
-
Mark Defond, J. Jiambalvo (1994)
Debt covenant violation and manipulation of accrualsJournal of Accounting and Economics, 17
-
Gebhardt Gebhardt, Lee Lee, Swaminathan. Swaminathan. (2001)
Toward an Implied Cost of CapitalJournal of Accounting Research, 39
-
La Porta La Porta, Lopez‐de‐Silanes Lopez‐de‐Silanes, Shleifer Shleifer, Vishny. Vishny. (2000)
Agency Problems and Dividend Policies around the WorldJournal of Finance, 55
-
R. Kalra (2004)
Earnings Management and Investor Protection: An International ComparisonCfa Digest, 34
-
Craig Doidge (2004)
U.S. cross-listings and the private benefits of control: evidence from dual-class firmsJournal of Financial Economics, 72
-
Faccio Faccio, Lang. Lang. (2002)
The Ultimate Ownership of Western European CorporationsJournal of Financial Economics, 65
-
Healy Healy, Wahlen. Wahlen. (1999)
A Review of the Earnings Management Literature and Its Implications for Standard SettingAccounting Horizons, 13
-
Robert Bushman, Qi Chen, Ellen Engel, Abbie Smith, Ray Ball, Sudipta Basu, Bill Beaver, Brian Bushee, Judy Chevalier, Thomas Hemmer, Bob Kaplan, Scott Keating, Randy Kroszner, Doron Nissim, Darius Palia, Canice Prendergast, Cathy Schrand, R. Watts, Jerry Zimmerman, Bruce Bower, Xia Chen, Farzad Farhangnia, Kathleen Fitzgerald, Rebecca Glenn, Karen Kirulis, John Kirulis, Eugene Kovacs, H. Shroff (2000)
The Sensitivity of Corporate Governance Systems to the Timeliness of Accounting Earnings * -
H. White (1980)
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 48
-
(1996)
Audit Evidence Planning: An Examination of Industry Error Characteristics. -
J. Jones (1991)
Earnings Management During Import Relief InvestigationsJournal of Accounting Research, 29
-
(1994)
Ln(GNP) Natural logarithm of gross national product per capita in constant -
Pincus Pincus, Rajgopal. Rajgopal. (2002)
The Interaction between Accrual Management and Hedging: Evidence from Oil and Gas FirmsThe Accounting Review, 77
-
(2002)
Accounting Choice, Corporate Governance and Firm Performance.
- Publisher
- Wiley
- Copyright
- Copyright © 2004 Wiley Subscription Services, Inc., A Wiley Company
- ISSN
- 0021-8456
- eISSN
- 1475-679X
- DOI
- 10.1111/j.1475-679X.2004.00144.x
- Publisher site
- See Article on Publisher Site
Abstract
ABSTRACT This study provides evidence of the role of both legal and extra‐legal institutions in limiting the income management induced by the detachment of control rights from the cash flow rights of ultimate owners. The tests use a unique, comprehensive data set for firm‐level control and ownership structures from 9 East Asian and 13 Western European countries. Univariate regressions show that income management that is induced by the wedge between control rights and cash flow rights is significantly limited in countries with high statutory protection of minority rights (proxied by legal tradition, minority rights protection, the efficiency of the judicial system, or disclosure standards) and effective extra‐legal institutions (proxied by the effectiveness of competition laws, diffusion of the press, and tax compliance). Furthermore, multiple regression results show that a common law tradition and an efficient judicial system subsume the effects of the other legal institutions, and that a high rate of tax compliance subsumes the effects of the other extra‐legal institutions in curbing insider income management. It is surprising that a high rate of tax compliance ultimately has a greater effect than legal tradition and the efficiency of the judicial system. Although this finding is unexpected, given prior evidence on the dominant roles of legal institutions in macroeconomic issues and corporate policies, it is consistent with the recent argument that effective tax enforcement is like a public good in that it can reduce insiders' private control benefits. An implication of this finding is that closer attention to extra‐legal institutions has the potential to enhance our understanding of the institutional reforms needed to limit insider private control benefits.
Journal
Journal of Accounting Research – Wiley
Published: May 1, 2004