e-journal

Corporate governance and the value-relevance of accounting information

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Purpose – This paper seeks to examine the relationship between corporate governance and the
value-relevance of accounting information in Australia.
Design/methodology/approach – This paper uses board, audit committee and external audit
related variables to proxy for corporate governance. Value-relevance is measured by the adjusted R 2
derived from a regression of stock price on earnings and equity book values following Ohlosn’s
accounting-based valuation framework.
Findings – Regression results show that firms with strong governance structure exhibit higher
value-relevance of accounting information. Results further show that firm-specific economic variables
are important determinants of the value-relevance of accounting information.
Research limitations/implications – Significant regulatory reforms regarding corporate
governance around the world give an impression that regulators believe that governance plays a
key role in ensuring, among others, credible financial reporting. This paper provides support for such
a view in Australian context.
Originality/value – This paper uses the relationship between accounting numbers and share price
as the measure of accounting information quality and also considers the impact of ASX Corporate
Governance Best Practice Code on the changes in the value-relevance of accounting information.

Keywords Corporate governance, Accounting, Accounting information, Australia

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Ketersediaan

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Informasi Detail

Judul Seri

Accounting Research Journal

No. Panggil

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Penerbit

: Emerald Group., 2008

Deskripsi Fisik

Accounting Research Journal Vol. 21 No. 2, 2008 pp. 167-194

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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