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Corporate Governance and the Prediction of the Impact of AIFRS Adoption
Author(s) -
GOODWIN JOHN,
AHMED KAMRAN,
HEANEY RICHARD
Publication year - 2009
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.2008.00271.x
Subject(s) - corporate governance , accounting , shareholder , business , finance
This study examines whether a firm's corporate governance system, particularly with respect to the characteristics of the board of directors and senior management, affects how accurately the impact of accounting changes is reported to shareholders. We concentrate on the relation between corporate governance measures and accounting forecast errors that arise with adoption of the International Financial Reporting Standards by listed Australian firms. Evidence reveals that corporate governance mechanisms are associated with the likelihood and magnitude of managerial forecast errors.