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The Influence of Remuneration Structures on Financial Reporting Quality: Evidence from Australia
Author(s) -
Safari Maryam,
Cooper Barry J.,
Dellaportas Steven
Publication year - 2016
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/auar.12083
Subject(s) - remuneration , accounting , business , corporate governance , earnings management , earnings , compliance (psychology) , quality (philosophy) , earnings quality , finance , psychology , social psychology , philosophy , accrual , epistemology
Summary at a glance This cross‐sectional study investigates the influence of a company's remuneration structure on managers’ opportunistic behaviour. The findings support the proposed hypothesis that a higher level of compliance with Remuneration Principle 8—ASX Corporate Governance Council) is associated with a lower level of earnings management. The findings support the efficient functioning of the ASX proposed remuneration structure.