Corporate Governance Attributes and Accounting Conservatism: Evidence from China-Reference-Cited by-同舟云学术

Corporate Governance Attributes and Accounting Conservatism: Evidence from China

Published:2021-12-01 Issue:3 Volume:16 Page:173-189
ISSN:2344-5416
Container-title:Studies in Business and Economics
language:en
Short-container-title:

Author:

Pasko Oleh¹,Chen Fuli²,Birchenko Nataliia³,Ryzhikova Natalia³

Affiliation:

1. Sumy National Agrarian University , Ukraine

2. Henan Institute of Science and Technology , China , Sumy National Agrarian University , Ukraine

3. Kharkiv Petro Vasylenko National Technical University of Agriculture , Ukraine

Abstract

Abstract The paper explores the association between corporate governance attributes and the extent of accounting conservatism apparent in Chinese listed companies’ financial reporting. The findings demonstrate that significant positive association exists between board independence, board size and accounting conservatism in Chinese information technology companies. Conversely, CEO duality, management shareholding and the shareholding ratio of the largest shareholder significantly negatively correlated with accounting conservatism. To the best of the author’s knowledge, this is one of the first empirical papers revealing the evidence on the relationship between corporate governance attributes and accounting conservatism in China. Overall, the author’s findings match up with the assertion that accounting conservatism assists directors in reducing agency costs of firms.

Publisher

Walter de Gruyter GmbH

Subject

Economics, Econometrics and Finance (miscellaneous),Business, Management and Accounting (miscellaneous),Social Psychology

Link

https://www.sciendo.com/pdf/10.2478/sbe-2021-0053

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