THE OWNERSHIP STRUCTURE, THE BOARD OF DIRECTORS AND THE QUALITY OF ACCOUNTING INFORMATION

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Abstract

High quality accounting information is vital for the accuracy of the financial statements, whereas poor quality information may lead to serious economic problems. The recent financial crisis has attracted the interest of many researchers in determining the factors that may affect the quality of accounting information. In this field, our research investigates the possible impact of the ownership structure and of the make-up of the board of directors on the quality of accounting information, using annual data from 29 companies listed on the Abu Dhabi Securities Exchange in 2008 and 2009. The actual research starts by presenting an appropriate measure of the quality of the accounting information, then developing a model explaining the relationship between the ownership structure, the board of directors and the quality of the accounting information. In the light of our results, we will be able to provide recommendations for helping the companies improve the quality of their financial reporting.

Keywords: Earnings Management, Discretionary Accruals, Ownership Structure, Board of Directors

How to cite this paper: Ellili, N. O. D. (2013). The ownership structure, the board of directors and the quality of accounting information. Corporate Ownership & Control, 10(4-4), 420-433. https://doi.org/10.22495/cocv10i4c4art5