The quality of accounting information in politically connected firms

Journal of Accounting and Economics

Volumn 51, Issue 1-2, 2011, Pages 58-76

  Chaney, Paul K ^a   Faccio, Mara ^b   Parsley, David ^a  

^a VANDERBILT UNIVERSITY   (United States)

^b PURDUE UNIVERSITY   (United States)

Author keywords

Accruals quality; Political ties; Quality of information

Indexed keywords

EID: 79951514752     PISSN: 01654101     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jacceco.2010.07.003     Document Type: Article

References (53)

1. Agrawal Anup, Knoeber Charles R. Do some outside directors play a political role?. Journal of Law and Economics 2001, 44:179-198.
2. Ashbaugh Hollis, LaFond Ryan, Mayhew Brian Do nonaudit services compromise auditor independence? Further evidence. The Accounting Review 2003, 78:611-639.
3. Bharath Sreedhar T., Sunder Jayanthi, Sunder Shyam V. Accounting quality and debt contracting. The Accounting Review 2008, 83:1-28.
4. Backman Michael Asian Eclipse: Exposing the Dark Side of Business in Asia 1999, Wiley, Singapore.
5. Bertrand, Marianne, Kramarz, Francis, Schoar, Antoinette, Thesmar, David, 2004. Politically connected CEOs and corporate outcomes: evidence from France. Working Paper, University of Chicago.
6. Claessens Stijn, Simeon Djankov, Lang Larry H.P. The separation of ownership and control in East Asian corporations. Journal of Financial Economics 2000, 58:81-112.
7. Cull Robert, Xu Lixin Colin Institutions, ownership and finance: the determinants of profit reinvestment among Chinese firms. Journal of Financial Economics 2005, 77:117-146.
8. Dechow Patricia M., Dichev Ilia D. The quality of accruals and earnings: the role of accrual estimation errors. The Accounting Review 2002, 77:35-59.
9. Dechow Patricia M. Accounting earnings and cash flows as measures of firm performance: the role of accruals. Journal of Accounting and Economics 1994, 18:3-42.
10. Dechow Patricia M., Sloan Richard G., Sweeney A.P. Detecting earnings management. The Accounting Review 1995, 70:193-225.
11. Dechow Patricia M., Kothari S.P., Watts R.L. The relation between earnings and cash flows. Journal of Accounting and Economics 1998, 25:133-168.
12. Dechow Patricia, Richard Sloan, Sweeney Amy Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research 1996, 13:1-36.
13. Dinç I.Serdar Politicians and banks: political influences on government-owned banks in emerging countries. Journal of Financial Economics 2005, 77:453-479.
14. Djankov Simeon, Rafael La Porta, Florencio Lopez-de-Silanes, Shleifer Andrei The law and economics of self-dealing. Journal of Financial Economics 2008, 88:430-465.
15. Doidge Craig, Karolyi G.Andrew, Stulz René M. Why do countries matter so much for corporate governance?. Journal of Financial Economics 2007, 86:1-39.
16. Faccio Mara Politically connected firms. American Economic Review 2006, 96:369-386.
17. Faccio, Mara, 2010. Differences between politically connected and non-connected firms: a cross country analysis. Financial Management 39, 905-927.
18. Faccio Mara, Lang Larry H.P. The ultimate ownership of western European corporations. Journal of Financial Economics 2002, 65:365-395.
19. Faccio Mara, Masulis Ronald W., McConnell John J. Political connections and corporate bailouts. Journal of Finance 2006, 61:2597-2635.
20. Fama E.F., French K.R. Industry Costs of Equity. Journal of Financial Economics. 1997, 43:153-193.
21. Fan Joseph, Wong T.J. Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of Accounting and Economics 2002, 33:401-425.
22. Fan Joseph, Wong T.J. Politically-connected CEOs, corporate governance and post-IPO performance of China's partially privatized firms. Journal of Financial Economics 2007, 84:330-357.
23. Fisman Raymond Estimating the value of political connections. American Economic Review 2001, 91:1095-1102.
24. Francis Jennifer, LaFond Ryan, Olsson Per, Schipper Katherine Cost of equity and earnings attributes. The Accounting Review 2004, 79:967-1010.
25. Francis Jennifer, LaFond Ryan, Olsson Per, Schipper Katherine The market pricing of accruals quality. Journal of Accounting and Economics 2005, 39:295-327.
26. Gomez Edmund Terence, Jomo K.S. Malaysia's Political Economy: Politics, Patronage and Profits 1997, Cambridge University Press, Cambridge.
27. Haw In-Mu, Hu Bingbing, Hwang Lee-Seok, Wu Woody Ultimate ownership, income management, and legal and extra-legal institutions. Journal of Accounting Research 2004, 42:423-462.
28. Healy Paul M., Whalen James M. A review of earnings management literature and its implications for standard setting. Accounting Horizons 1999, 13:365-383.
29. Hellman Joel S., Jones Geraint, Kaufmann Daniel Seize the state, seize the day. State capture, corruption, and influence in transition. Journal of Comparative Economics 2003, 31:751-773.
30. Hribar Paul, Craig Nichols D. The use of unsigned earnings quality measures in tests of earnings management. Journal of Accounting Research 2007, 45:1017-1053.
31. Johnson Simon, Mitton Todd Cronyism and capital controls: evidence from Malaysia. Journal of Financial Economics 2003, 67:351-382.
32. Jones Jennifer Earnings management during import relief investigations. Journal of Accounting Research 1991, 29:193-228.
33. Khwaja Asim Ijaz, Mian Atif Do lenders favor politically connected firms? Rent-seeking in an emerging financial market. Quarterly Journal of Economics 2005, 120:1371-1411.
34. Kothari S.P., Leone Andrew J., Wasley Charles E. Performance matched discretionary accrual measures. Journal of Accounting and Economics 2005, 39:163-197.
35. La Porta Rafael, Lopez-de-Silanes Florencio, Shleifer Andrei Corporate ownership around the world. Journal of Finance 1999, 54:471-518.
36. La Porta Rafael, Lopez-de-Silanes Florencio, Shleifer Andrei, Vishny Robert W. Law and finance. Journal of Political Economy 1998, 106:1113-1155.
37. LaFond, Ryan, Lang, Mark H., Hollis, Ashbaugh-Skaife, 2007. Earnings smoothing, governance and liquidity: international evidence. Working Paper.
38. Leuz Christian Cross listing, bonding and firms' reporting incentives: a discussion of Lang, Ready and Wilson (2006). Journal of Accounting and Economics 2006, 42:285-299.
39. Leuz Christian, Oberholzer-Gee Felix Political relationships, global financing, and corporate transparency: evidence from Indonesia. Journal of Financial Economics 2006, 81:411-439.
40. Leuz Christian, Nanda Dhananjay, Wysocki Peter D. Earnings management and investor protection: an international comparison. Journal of Financial Economics 2003, 69:505-527.
41. Liu, Michelle, Wysocki, Peter, 2007. Cross-sectional determinants of information quality proxies and cost of capital measures. Working Paper, MIT.
42. Mitton Todd A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis. Journal of Financial Economics 2002, 64:215-242.
43. McNichols Maureen F Discussion of the quality of accruals and earnings: the role of accrual estimation errors. The Accounting Review 2002, 77:61-69.
44. Morck Randall K., Yeung Bernard Family control and the rent-seeking society. Entrepreneurship: Theory and Practice 2004, 28:391-409.
45. Morck Randall K., Stangeland David A., Yeung Bernard Inherited wealth, corporate control, and economic growth: the Canadian disease. Concentrated Corporate Ownership 2000, University of Chicago Press, Chicago. R. Morck (Ed.).
46. Moulton Brent R. An illustration of a pitfall in estimating the effects of aggregate variables on microunits. The Review of Economics and Statistics 1990, 72:334-338.
47. Raman, Kartik, Shivakumar, Lakshmanan, Tamayo, Ane, 2008. Targets' earnings quality and bidders' takeover decisions. Working Paper.
48. Richardson Scott, Dechow Patricia, Tuna İrem Why are earnings kinky?: an examination of the earnings management explanation. Review of Accounting Studies 2003, 8:355-384.
49. Schipper Katherine Commentary on earnings management. Accounting Horizons 1989, 3:91-102.
50. Shivakumar Lakshmanan Do firms mislead investors by overstating earnings before seasoned equity offerings. Journal of Accounting and Economics 2000, 29:339-371.
51. Sloan Richard G. Do stock prices fully reflect information in accruals and cash flows about future earnings?. The Accounting Review 1996, 71:289-315.
52. Svensson Jakob Who must pay bribes and how much? Evidence from a cross-section of firms. Quarterly Journal of Economics 2003, 118:207-230.
53. Wang Dechun Founding family ownership and earnings quality. Journal of Accounting Research 2006, 44:619-656.