This study investigates the role played by corporate governance in the firm's decision to disclose forward-looking information in financial reports, as well as the quality of such reports. More effective corporate governance has often been linked to voluntary disclosure within the annual report (Karamanou and Vafeas 2005). Similarly, recent studies document a positive association between reporting quality and the standard of corporate governance (Wright 2001). This study proposes that stronger corporate governance will be associated with increased forward-looking disclosures in financial reports and higher financial reporting quality. The results indicate that audit quality, the presence and quality of board committees and the overall efficacy of corporate governance are positively associated with forward-looking disclosures in 2000. However, corporate governance does not have a positive association with such disclosures in 2002. Regarding the relationship between financial reporting quality and corporate governance, audit quality is the only governance variable that yields a significant result and is only associated with higher reporting quality in 2002.
| Identifer | oai:union.ndltd.org:ADTP/265451 |
| Date | January 2005 |
| Creators | O'Sullivan, Madonna |
| Publisher | Queensland University of Technology |
| Source Sets | Australiasian Digital Theses Program |
| Detected Language | English |
| Rights | Copyright Madonna O'Sullivan |
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