STUDY OF INVESTORS PERCEPTION TOWARDS CORPORATE REPORTING PRACTICES
Keywords:
Disclosure, Financial reporting, Investment, financial leverageAbstract
This paper reports on voluntary financial disclosure practices of Indian companies and relates the extent of disclosure to firm size, financial leverage, and proportion of assets in place. Studying the voluntary disclosure of Indian firms yields additional insights into voluntary disclosure parameters, and enhances our understanding of the financial reporting and practices adopted by Indian companies. Voluntary disclosure varies widely within the existing companies and their information perceived by investors for their investment objectives. The extent of disclosure varies significantly among sectors and is positively related to firm size, brand, goodwill and past performances.
References
Alexander, D., & Nobes, C. (2004). Financial Accounting: An International Introduction. Prentice Hall.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1–2), 3−27
Ali, A., & Hwang, L. (2000). Country specific factors related to financial reporting and the value relevance of accounting data. Journal of Accounting Research, 38(1), 1−23.
Young, D., & Guenther, D. A. (2003). Financial reporting environments and international capital mobility. Journal of Accounting Research, 41(3), 553−579.
Farber, D. (2005). Restoring trust after fraud: does corporate governance matter? The Accounting Review, 80, 539−561.
Bhattacharya, U., Daouk, H., & Welker, M. (2003). The world price of earnings opacity. The Accounting Review, 78, 641−678.
Saudagaran, S., & Diga, J. (1997). Financial reporting in emerging capital markets: Characteristics and policy issues. Accounting Horizons, 11, 41−64.
Ashbaugh, H., & Pincus, M. (2001). Domestic accounting standards, international accounting standards, and the predictability of earnings. Journal of Accounting Research, 39, 417−434
Fajardo, C. (2007). The move towards convergence of accounting standards worldwide. Journal of American Academy of Business, Cambridge, 12, 57−62.
Sacho, Y., & Oberholster, J. (2008). Factors impacting on the future of the IASB. Meditari Accountancy Research, 16(1), 117−137.
PricewaterhouseCoopers (PwC). (2008). IRFS adoption by country. Retrieved: July 17, 2009 from http://www.pwc.com/us/en/issues/ifrs-reporting/country- adoption/index.jhtml
Ball, R. (2006). International financial reporting standards (IFRS): Pros and cons form investors. Accounting and Business Research, 36, 5−27 Special Issue.
Véron, N. (2007). The global accounting experiment. Brussels European and Global Economic Laboratory, April 15, 2007. Retrieved Oct 21, 2008, from www.bruegel.
org/Public.
Entwistle, G., Feltham, G., & Mbagwu, C. (2006). Misleading disclosure of pro forma earnings: An empirical examination. Journal of Business Ethics, 69(4), 355–372.
Frederickson, J. R., & Miller, J. S. (2004). The effects of pro forma earnings disclosures on analysts' and nonprofessional investors' equity valuation judgments. The Accounting Review, 79(3), 667–686
Zhang, H., & Zheng, L. (2011). The valuation impact of reconciling pro forma earnings to GAAP earnings. Journal of Accounting and Economics, 51(1–2), 186–202.
Elliott, W. B. (2006). Are investors influenced by pro forma emphasis and reconciliation in earnings announcements? The Accounting Review, 81(1), 113–133
