Earnings Quality in U.K. Private Firms

@inproceedings{Ball2004EarningsQI,
  title={Earnings Quality in U.K. Private Firms},
  author={R. Ball and Lakshmanan Shivakumar},
  year={2004}
}
UK private and public companies face substantially equivalent regulation on auditing, accounting standards and taxes. We hypothesize that private-company financial reporting nevertheless is lower quality due to different market demand, regulation notwithstanding. A large UK sample supports this hypothesis. Quality is operationalized using Basu's (1997) time-series measure of timely loss recognition and a new accruals-based method. The result is not affected by controls for size, leverage… Expand
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