Title :
Earnings Quality and the Agency Costs of Managerial Discretion: The Corporate Governance Effect of Accounting Information
Author :
Chuang, Lu ; Xiuhong, Li ; Li, Zhu
Author_Institution :
Sch. of Accountancy, Central Univ. of Finance & Econ., Beijing, China
Abstract :
Based on the data of listed companies between 2002 and 2004, this paper analyses how the earnings quality, measured by accrual quality, affects the list companies´ agency costs of managerial discretion. It reveals: earnings quality affects the list companies´ agency costs of managerial discretion significantly, the agency costs decreases with the improvement of earnings quality. The results are robust while controlling the effect of endogeneity, omitted variable and cluster effect.
Keywords :
cost accounting; quality management; accounting information; accrual quality; agency cost; corporate governance effect; earnings quality; managerial discretion; Book reviews; Companies; Educational institutions; Finance; Robustness; Stock markets; accrual quality; agency costs of managerial discretion; earnings quality;
Conference_Titel :
E-Business and E-Government (ICEE), 2010 International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-0-7695-3997-3
DOI :
10.1109/ICEE.2010.985