Corporate Governance and the Prediction of the Impact of AIFRS Adoption

Authors: GOODWIN, JOHN¹; AHMED, KAMRAN²; HEANEY, RICHARD³

Source: Abacus, Volume 45, Number 1, March 2009 , pp. 124-145(22)

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Abstract:

This study examines whether a firm's corporate governance system, particularly with respect to the characteristics of the board of directors and senior management, affects how accurately the impact of accounting changes is reported to shareholders. We concentrate on the relation between corporate governance measures and accounting forecast errors that arise with adoption of the International Financial Reporting Standards by listed Australian firms. Evidence reveals that corporate governance mechanisms are associated with the likelihood and magnitude of managerial forecast errors.

Keywords: AIFRS; adoption; Corporate governance; mechanisms; Errors

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-6281.2008.00271.x

Affiliations: 1: School of Accounting and Finance, The Hong Kong Polytechnic University 2: Department of Accounting, La Trobe University 3: School of Economics, Finance and Marketing, RMIT University

Publication date: 2009-03-01