Competition in Industries, Corporate Governance; and Financial Reporting Quality
DOI:
https://doi.org/10.24200/jmas.vol3iss03pp56-62Abstract
The present study aimed to investigate the impact of product market competition; corporate governance accounting restatements of the firms listed on TSE. This study applies accounting restatement criterion for identification of low quality of reported accounting information in past financial statements of the firms listed on TSE. For this purpose, according to literature and institutional environment we select a set of most important corporate governance mechanisms include ownership concentration, board of directors independence and audit firm size associated with some control variable include corporation size and liquidity ratio that can be related to FRQ, and then considered to relation with earnings restatements. This study applies the financial statements information of firms listed on TSE during 2007 to 2013. The results of logistic regression analysis based on 846 year-firm observations indicate that according to past research corporate governance have a positive effect and competition has a negative effect on financial reporting quality (FRQ), however their interaction effect indicate that accounting information quality is increased. Therefore, evidence of this paper supports this opinion that competition and corporate governance mechanisms are complementary.References
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