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Corporate Disclosure Quality and Independent Directors: Evidence from Mandatory Management Earnings Forecasts Revision
Management earnings forecasts
Mandatory earnings forecasts
|Issue Date: ||2020-07-01 13:36:08 (UTC+8)|
The association between independent directors and disclosure quality of financial statements has been intensively examined in the literature. However, some specific events occur in Japan because management earnings forecasts are mandatory, namely, multiple forecast revisions and last minute revisions. Such events have not been examined from a corporate governance perspective. This study tries to shed some light on the association between disclosure quality and independent directors on this regard using firms listed on the Tokyo Stock Exchange. This study uses the number of independent director sitting in the boardroom and ratio of independent directors in the board room to test if independent directors affect disclosure quality. For disclosure quality, this study uses the numbers of management forecast revisions and revising earnings forecasts after the fiscal year end to proxy for disclosure quality. Empirical results show that firm with higher independent director ratio are more likely to revise earnings forecasts for multiple times. Meanwhile, the results also show that firms with higher independent director ratio are more likely to revise earnings forecasts within 30 days prior to fiscal year end. The result show that firms with higher ratio of independent director are more likely to revise earnings forecasts for more times, i.e., firms with better corporate governance are more likely have better disclosure quality consistent with prior study.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0107353115|
|Data Type: ||thesis|
|Appears in Collections:||[會計學系] 學位論文|
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