Financial Reporting Quality and Its Impact On Investor Confidence in Developing Markets
Keywords:
Financial reporting quality, Investor confidence, Developing markets, Transparency, Market stabilityAbstract
This article explores the relationship between financial reporting quality and investor confidence in developing markets. By examining the transparency, accuracy, and timeliness of financial disclosures among publicly listed companies, the study evaluates how high-quality reporting influences investor trust and market stability. Results show that reliable financial reporting is crucial for enhancing investor confidence and attracting capital, highlighting the need for improved accounting standards and regulatory oversight.
Downloads
References
Ayyagari, M., Demirguc-Kunt, A., & Maksimovic, V. (2007). Small and medium enterprises across the globe. Small Business Economics, 29(4), 415–434. https://doi.org/10.1007/s11187-006-9012-7
Ball, R., Robin, A., & Wu, J. S. (2000). Incentives versus standards: Properties of accounting income in four East Asian countries. Journal of Accounting and Economics, 36(1-3), 235–270. https://doi.org/10.1016/S0165-4101(04)00003-7
Barth, M. E., Landsman, W. R., & Lang, M. H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467–498. https://doi.org/10.1111/j.1475-679X.2008.00287.x
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of Accounting and Economics, 32(1-3), 237–333. https://doi.org/10.1016/S0165-4101(01)00027-5
Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency? Journal of Accounting Research, 42(2), 207–252. https://doi.org/10.1111/j.1475-679X.2004.00138.x
Daske, H., Hail, L., Leuz, C., & Verdi, R. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences. Journal of Accounting Research, 46(5), 1085–1142. https://doi.org/10.1111/j.1475-679X.2008.00306.x
Francis, J., LaFond, R., Olsson, P. M., & Schipper, K. (2005). The market pricing of accruals quality. Journal of Accounting and Economics, 39(2), 295–327. https://doi.org/10.1016/j.jacceco.2004.06.001
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405–440. https://doi.org/10.1016/S0165-4101(01)00018-0
Lang, M. H., Lins, K. V., & Maffett, M. (2012). Transparency, liquidity, and valuation. Journal of Accounting Research, 50(3), 729–774. https://doi.org/10.1111/j.1475-679X.2012.00437.x
Lee, Y., & Gordon, R. H. (2005). Tax structure and economic growth. Journal of Public Economics, 89(5-6), 1027–1043. https://doi.org/10.1016/j.jpubeco.2004.09.003
Leuz, C., & Wysocki, P. D. (2016). The economics of disclosure and financial reporting regulation: Evidence and suggestions for future research. Journal of Accounting Research, 54(2), 525–622. https://doi.org/10.1111/1475-679X.12103
Mendoza, E. G., & McGaw, B. R. (2000). The effects of financial globalization on developing countries. World Bank Policy Research Working Paper, 50(1), 1–36. https://doi.org/10.1596/0-8213-4912-0
Pope, P., & McLeay, S. (2011). The future of IFRS in the European Union. Accounting in Europe, 8(1), 1–8. https://doi.org/10.1080/17449480.2011.575243
Soderstrom, N. S., & Sun, K. J. (2007). IFRS adoption and accounting quality: A review. European Accounting Review, 16(4), 675–702. https://doi.org/10.1080/09638180701706765
Tanzi, V. (2000). Globalization, technological developments, and the work of fiscal termites. IMF Working Paper, 00/181. https://doi.org/10.5089/9781451871837.001
