How to Measure Country Level Financial Reporting Quality?
36 Pages Posted: 22 Jul 2012
Date Written: May 18, 2012
Abstract
This study constructs six accounting and auditing indicators to develop a comprehensive index to measure financial reporting quality of 38 main capital markets in the world from 2000 to 2007. In order to test the validity of the methodology, we use the index to tests national institutional impact on financial reporting quality and find results that are consistent with our prediction and previous studies. The evidence suggests the innovative quality measure is appropriate and provide a useful tool for researchers who concern financial reporting quality at country level.
Keywords: Country level financial reporting quality, financial reporting quality indicators and index
JEL Classification: M41
Suggested Citation: Suggested Citation
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