Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom

doi:10.14453/aabfj.v8i5.3

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	Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom
	Lin, Zhiwei 1; Jiang, Yihong 2; Tang, Qingliang 3; He, Xiangjian 4
刊名	AUSTRALASIAN ACCOUNTING BUSINESS AND FINANCE JOURNAL
	2014
卷号	8 期号:5
关键词	Financial crisis Liquidity Financial reporting quality Earnings management
ISSN号	1834-2000
DOI	10.14453/aabfj.v8i5.3
英文摘要	Prior literature has claimed that accounting plays a negative role in a financial crisis. The current study sought to determine whether this effect is dependent on the quality of financial reporting. Specifically, this study examined the impact of the quality of financial reporting (as measured via earnings quality) on liquidity (measured by the bid-ask spread) in the equity market during the 2008-2009 global financial crisis in the United Kingdom. We found, as expected, that market liquidity was much lower during the crisis than prior to the crisis; however, firms with high-quality financial reporting suffered fewer negative effects as a result of the financial crisis. The results were robust after controlling for other influences, such as return volatility, loss making, market value of equity, and other potential endogeneity problems. In addition, adopting alternative models for earnings quality did not alter our inferences. Our results support the notion that high-quality accounting information can reduce information asymmetry and hence enhance investor confidence during a financial crisis. The results suggest that a stable financial reporting system is an important part of that overall economic fabric. Our findings will help build a framework on which an overall financial crisis risk-management strategy can be developed to avoid future crises.
WOS研究方向	Business & Economics
语种	英语
出版者	UNIV WOLLONGONG
WOS记录号	WOS:000414832400003
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1833]
专题	上海财经大学
通讯作者	Tang, Qingliang
作者单位	1.Shenzhen Univ, Shenzhen, Guangdong, Peoples R China; 2.Shanghai Univ Finance & Econ, Shanghai, Peoples R China; 3.Univ Western Sydney, Sch Business, Locked Bag 1797, Penrith, NSW 2751, Australia; 4.Univ Technol Sydney, Sydney, NSW, Australia
推荐引用方式 GB/T 7714	Lin, Zhiwei,Jiang, Yihong,Tang, Qingliang,et al. Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom[J]. AUSTRALASIAN ACCOUNTING BUSINESS AND FINANCE JOURNAL,2014,8(5).
APA	Lin, Zhiwei,Jiang, Yihong,Tang, Qingliang,&He, Xiangjian.(2014).Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom.AUSTRALASIAN ACCOUNTING BUSINESS AND FINANCE JOURNAL,8(5).
MLA	Lin, Zhiwei,et al."Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom".AUSTRALASIAN ACCOUNTING BUSINESS AND FINANCE JOURNAL 8.5(2014).