|
Corporate Governance, Growth Opportunities, and Earnings Restatements: Evidence from Regulatory Changes
Ken Y. Chen,
National Taiwan Unviersity
Randy J. Elder, Syracuse University
Yung - Ming Hsieh, Soochow University
ABSTRACT. Prior research on the relation between corporate governance mechanisms and earnings restatements suggests that better corporate governance mechanisms are associated with lower incidence of earnings restatements. We focus on the role of changes in regulation of the Corporate Governance Best-Practice Principles (CGBPP) for Taiwanese listed companies, and we find that firms with independent directors (supervisors) and firms with non-CEO dominated boards are associated with lower incidence of earnings restatements. Moreover, we incorporate the role of growth opportunities, a prevailing environmental feature in this emerging market, and we find that high-growth firms having independent directors (supervisors) with financial expertise are associated with lower incidence of earnings restatements.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|