Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market

This paper aims to present the effect of life cycle on financial reporting quality (FRQ). Discretionary accruals, small profit, and audit aggressiveness were used to test the FRQ from different approaches for Borsa Istanbul-listed companies between 2008 and 2017. The sample comprises 1,645 observati...

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Autor principal:	Gökberk Can
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	life-cycle stages financial reporting quality discretionary accruals Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/586a4b3e2d004fe3bf911a903c2cd7bd
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spelling	oai:doaj.org-article:586a4b3e2d004fe3bf911a903c2cd7bd2021-12-02T17:01:03ZDo Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market2331-197510.1080/23311975.2020.1854147https://doaj.org/article/586a4b3e2d004fe3bf911a903c2cd7bd2020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1854147https://doaj.org/toc/2331-1975This paper aims to present the effect of life cycle on financial reporting quality (FRQ). Discretionary accruals, small profit, and audit aggressiveness were used to test the FRQ from different approaches for Borsa Istanbul-listed companies between 2008 and 2017. The sample comprises 1,645 observations of 217 companies over a 9 year period. The life stages were estimated with Dickinson’s cash-flow patterns. Following Hansen, Hong and Park⁠, introduction, growth, mature, shake-out, and decline parameters were assigned values of 0, 0.25, 0.5, 0.75, and 1, respectively. The findings for small profit and discretionary accruals are consistent with those of previous literature. Results show that both discretionary accruals and small profit decrease as the companies move forward in their life cycles, while, on the other hand, audit aggressiveness increases. A negative coefficient was observed, but it was insignificant for the other dependent variables. The findings provide insight into the effect of life-cycle stages on FRQ. Results show that the introduction and decline stages negatively affect FRQ, and in addition showed that the audit aggressiveness of Turkish companies decreases with increased listing duration.Gökberk CanTaylor & Francis Grouparticlelife-cycle stagesfinancial reporting qualitydiscretionary accrualsBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	life-cycle stages financial reporting quality discretionary accruals Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	life-cycle stages financial reporting quality discretionary accruals Business HF5001-6182 Management. Industrial management HD28-70 Gökberk Can Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market
description	This paper aims to present the effect of life cycle on financial reporting quality (FRQ). Discretionary accruals, small profit, and audit aggressiveness were used to test the FRQ from different approaches for Borsa Istanbul-listed companies between 2008 and 2017. The sample comprises 1,645 observations of 217 companies over a 9 year period. The life stages were estimated with Dickinson’s cash-flow patterns. Following Hansen, Hong and Park⁠, introduction, growth, mature, shake-out, and decline parameters were assigned values of 0, 0.25, 0.5, 0.75, and 1, respectively. The findings for small profit and discretionary accruals are consistent with those of previous literature. Results show that both discretionary accruals and small profit decrease as the companies move forward in their life cycles, while, on the other hand, audit aggressiveness increases. A negative coefficient was observed, but it was insignificant for the other dependent variables. The findings provide insight into the effect of life-cycle stages on FRQ. Results show that the introduction and decline stages negatively affect FRQ, and in addition showed that the audit aggressiveness of Turkish companies decreases with increased listing duration.
format	article
author	Gökberk Can
author_facet	Gökberk Can
author_sort	Gökberk Can
title	Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market
title_short	Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market
title_full	Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market
title_fullStr	Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market
title_full_unstemmed	Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market
title_sort	do life-cycles affect financial reporting quality? evidence from emerging market
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/586a4b3e2d004fe3bf911a903c2cd7bd
work_keys_str_mv	AT gokberkcan dolifecyclesaffectfinancialreportingqualityevidencefromemergingmarket
_version_	1718382207938068480

Do Life-Cycles Affect Financial Reporting Quality? Evidence from Emerging Market

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