Qualitative characteristics of Financial Reporting

Many companies report profitability using pro forma earnings along with GAAP earnings. However, strong debate exists on the use of pro forma earnings reports. Proponents say that managers use such reports to help stockholders focus on the most salient details of the financial statements, while critics believe they are misused by managers to cast a positive light on undesirable financial results. The purpose of this exploratory study is to directly examine investor perceptions of pro forma earnings and to investigate whether differences exist between professional and non-professional investors in their perceptions of pro forma earnings compared to GAAP earnings reports. Results indicate that both professional and non-professional investors perceive pro forma earnings reports as less useful than GAAP reports. This finding contradicts previous research based on stock return data. Overall, results also indicate that non-professional investors may fail to adequately adjust for potential management bias in pro forma reports which could lead to suboptimal decision-making and poor or negative returns. Both groups of respondents agreed that standards should be developed for pro forma reports and those pro forma earnings releases should be reviewed by a certified public accountant prior to public release.

This study was developed based on the theory of cultural relevance of accounting proposed by Baydoun and Willet [4] from the contributions originally released by Gray [16], which highlights the link between the accounting values and the practices that are materialized in the form, content and the qualitative characteristics presented in financial reporting. The study has examined the existence of association between accounting values and corporate financing options, the existence of association between two of the Gray [16] accounting values, namely, conservatism and secrecy, on the one hand, and financing options, on the other hand, from the perspective of Portuguese preparers of financial statements. The data were collected from a survey conducted on a sample of 431 Chartered Accountants Portuguese during the year 2012, subsequently subjected to multivariate analysis, including factor analysis and reliability analysis. Based on the results of this study it was possible to identify the grouping of items around each of the Gray [16] accounting values analyzed in this study, isolated or associated with issues related to corporate financing.

A influência do fator cultural no âmbito da subcultura da Contabilidade é reconhecida pela literatura, que não descura os seus eventuais impactos na comparabilidade do relato financeiro. A presente investigação visa aferir a eventual existência de distintos níveis de valores culturais propostos por Gray (1988) em função de agrupamentos regionais. Adicionalmente, pretende-se testar a existência de uma eventual associação entre os referidos valores culturais. A recolha dos dados foi realizada a partir dos relatórios e contas consolidados anuais, referentes a 2013 e 2014, divulgados pelas entidades cotadas (grupos não financeiros) nos índices bolsistas relativos a mercados financeiros da União Europeia (UE), tendo sido utilizada a análise de conteúdo como metodologia. Após a aplicação de critérios específicos de seleção, a população final deste estudo é constituída por 137 entidades. Os resultados obtidos a partir da aplicação de técnicas de análise não-paramétricas bivariadas sugerem ...

As normas emitidas pelo International Accounting Standard Board (Iasb) são normas baseadas em princípios, as quais delegam ao julgamento profissional a decisão em matérias contabilísticas a partir dos conceitos existentes nas referidas normas, com implicações no relato financeiro. O objetivo do presente estudo passa por analisar a influência da cultura sobre o julgamento profissional, através da análise da existência de diferenças significativas relativamente às decisões em torno da divulgação ou reconhecimento de passivos e ativos, bem como validar (ou não) a classificação atribuída por Gray (1988) a Portugal, no que respeita aos valores contabilísticos do conservadorismo e do sigilo. Nesse sentido, foram analisados os conceitos previstos na Norma Contabilística e de Relato Financeiro (NCRF) 21, intitulada Provisões, Passivos Contingentes e Ativos Contingentes. A partir da distribuição de um questionário aos preparadores da informação, do qual resultou uma amostra de 408 profission...

Revista de Educação e Pesquisa em Contabilidade Journal of Education and Research in Accounting Revista de Educación e Investigación en Contabilidad Copyright © 2015 REPEC. Todos os direitos, até mesmo de tradução, são reservados. É permitido citar parte de artigos sem autorização prévia, desde que seja identificada a fonte.

As normas emitidas pelo International Accounting Standard Board (Iasb) são normas baseadas em princípios, as quais delegam ao julgamento profissional a decisão em matérias contabilísticas a partir dos conceitos existentes nas referidas normas, com implicações no relato financeiro. O objetivo do presente estudo passa por analisar a influência da cultura sobre o julgamento profissional, através da análise da existência de diferenças significativas relativamente às decisões em torno da divulgação ou reconhecimento de passivos e ativos, bem como validar (ou não) a classificação atribuída por Gray (1988) a Portugal, no que respeita aos valores contabilísticos do conservadorismo e do sigilo. Nesse sentido, foram analisados os conceitos previstos na Norma Contabilística e de Relato Financeiro (NCRF) 21, intitulada Provisões, Passivos Contingentes e Ativos Contingentes. A partir da distribuição de um questionário aos preparadores da informação, do qual resultou uma amostra de 408 profission...

Neste trabalho e estudado o impacto da crise financeira global no comportamento dos mercados bolsistas internacionais, quer no curto prazo quer no longo prazo. Com este objetivo foram selecionados doze mercados bolsistas internacionais e escolhido o periodo compreendido entre 4/10/1999 e 30/06/2011. Para analisar o comportamento dos mercados numa perspetiva de curto prazo, recorreu-se ao modelo multivariado de correlacao condicional dinâmica (DCC-GARCH), desenvolvido por Engle (2002), e ao teste de valores extremos, de modo a analisar as consequencias da emergencia da crise financeira global. Os coeficientes de correlacao dinâmica permitiram concluir que ocorreu um aumento significativo no ultimo subperiodo, confirmando a existencia de efeitos de contagio entre os mercados bolsistas estudados. Complementarmente, os testes de valores extremos evidenciaram o mes de outubro de 2008 como o ponto critico desse efeito. A analise de componentes principais permitiu evidenciar a ocorrencia d...

Neste trabalho é estudado o impacto da crise financeira global no comportamento dos mercados bolsistas internacionais, quer no curto prazo quer no longo prazo. Com este objetivo foram selecionados doze mercados bolsistas internacionais e escolhido o período compreendido entre 4/10/1999 e 30/06/2011. Para analisar o comportamento dos mercados numa perspetiva de curto prazo, recorreuse ao modelo multivariado de correlação condicional dinâmica (DCC-GARCH), desenvolvido por Engle (2002), e ao teste de valores extremos, de modo a analisar as consequências da emergência da crise financeira global. Os coeficientes de correlação dinâmica permitiram concluir que ocorreu um aumento significativo no último subperíodo, confirmando a existência de efeitos de contágio entre os mercados bolsistas estudados. Complementarmente, os testes de valores extremos evidenciaram o mês de outubro de 2008 como o ponto crítico desse efeito. A análise de componentes principais permitiu evidenciar a ocorrência de algumas relações de equilíbrio de longo prazo entre os mercados, em especial nos subperíodos amostrais relativos a fases de crise.

This article reports a study of the way in which users of external financial reports view those reports in a less developed country with a moderately sophisticated capital market. Most users consider that they make at least moderate use of corporate annual reports. What different user groups say about the extent to which they use reports is examined together with what they say about the number of reports read and the time spent reading them; there is some apparent inconsistency. The pattern of usage of the individual report sections is broadly consistent with that in developed countries except that greater attention is given to auditors' reports. Users complained of lack of comparability and consistency between different companies within a single industry and about lack of reliability. By comparison with developed countries, users relied more heavily on information obtained from the company, either from the annual report or via other channels. All these findings may reflect the financial reporting environment to be found in a less developed country. Users do not perceive themselves to suffer from significant difficulty in understanding financial information.

Purpose: This paper examines the need for exclusive financial reporting standards for Islamic financial transactions by considering the accounting treatment of deferred payment Murabahah, as practiced in Pakistan. Being analogous to the conventional banking model, Murabahah is one of the most widely deployed modes in Islamic banks. The paper compares the quality of presentation of deferred payment Murabahah as practiced, following both conventional and Islamic accounting standards.

Design: The paper presents the deferred payment Murabahah (credit sale) using International Financial Reporting Standards (IFRSs) and Islamic Financial Accounting Standards (IFASs) and collects the opinion of experts (accountants, academicians, and Islamic bankers) on the extracts of the prepared financial statements. The opinions are centered on three qualitative characteristics of the financial information (relevance, faithful representation, and comparability) and a t-test is applied to examine the statistical significance of the difference of opinions received.

Findings: The results show that the overall quality score for IFRSs is higher than the IFASs for the selected qualitative characteristics. However, the difference observed is not significant, advocating the possibility of the harmonization among both Islamic and conventional accounting practices of the financial intuitions operating in Pakistan.

Originality: Earlier studies (Morshed (2022); El-Halaby, Albarrak, and Grassa (2020); Ullah (2020); Ibrahim and Ling (2016)) do not directly compare the presentation of the Islamic financial instruments by applying the financial reporting standards issued by AAOIFI and IASB on same instrument. This paper addresses this gap by comparing the qualitative characteristics of presented financial information for deferred payment Murabahah as guided by conventional and Islamic accounting standards by introducing an innovative approach for presentation (from the perspective of a credit sale). The paper also compares the accounting treatment of IFRSs with IFAS 1 (Pakistan), which has not yet been done.

Implications: Based on the findings of the paper, it is recommended that, like Malaysia, the IFIs in Pakistan should adopt the IFRS framework. The focus of the regulatory bodies functioning in Pakistan should be to improve existing accounting standards through meaningful engagement with standard-setting bodies and take an active part in making IFRSs more compatible with the nature of Islamic financial transactions. An instrument-wise handbook should be published for the IFIs to help in the application of the IFRS framework, ensuring a Shariah-compliant presentation where alternative measuring and valuing approaches are allowed by the framework.

Purpose: This paper compares the presentation of ijarah ¯ Muntahia Bittamleek (IMBT), as outlined by conventional and Islamic accounting standards, to re-examine the need for exclusive accounting standards for presenting ijarah ¯ instrument by IFIs operating in Pakistan.
Methodology: IMBT instrument is presented using both Islamic and conventional accounting standards, and experts’ opinions are gathered (accountants, academics, and Islamic bankers) on quality of reported financial information. Finally, the statistical significance of the difference in the quality score is tested.
Findings: Results show that IFRS pose a significant advantage regarding presentation of IMBT, which reduces the need for exclusive accounting standards for presenting ijarah instrument in Pakistan.
Significance: Earlier studies by Morshed (2022); El-Halaby et al. (2020); Ullah (2020) do not apply Islamic and conventional financial reporting standards to Islamic financial instruments when making comparisons. Additionally, most studies do not consider recent updates in conventional standards due to the standardization efforts by IASB and FASB. This paper addresses both these gaps emerging from the literature.
Practical Implication: The study exhibits valuable policy implications for regulators regarding adopting conventional accounting and reporting standards for IFIs. Regulatory intervention may favor improving the IFRS framework’s applicability on IMBT by collaborating with other international standard-setting bodies. Finally, the regulatory bodies should create an instrument-wise handbook to guide IFIs in applying IFRSs for Shar¯ıah-compliant presentation.

This article is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. Attribution-NonCommercial-NoDerivs (CC BY-NC-ND) license only allowing others to download our works and share them with others as long as they credit us, but they can't change them in any way or use them commercially.

A influência do fator cultural no âmbito da subcultura da Contabilidade é reconhecida pela literatura, que não descura os seus eventuais impactos na comparabilidade do relato financeiro. A presente investigação visa aferir a eventual existência de distintos níveis de valores culturais propostos por Gray (1988) em função de agrupamentos regionais. Adicionalmente, pretende-se testar a existência de uma eventual associação entre os referidos valores culturais. A recolha dos dados foi realizada a partir dos relatórios e contas consolidados anuais, referentes a 2013 e 2014, divulgados pelas entidades cotadas (grupos não financeiros) nos índices bolsistas relativos a mercados financeiros da União Europeia (UE), tendo sido utilizada a análise de conteúdo como metodologia. Após a aplicação de critérios específicos de seleção, a população final deste estudo é constituída por 137 entidades. Os resultados obtidos a partir da aplicação de técnicas de análise não-paramétricas bivariadas sugerem que o conservadorismo distingue-se em função de alguns agrupamentos regionais. Constata-se ainda a existência de uma conexão positiva entre o conservadorismo e o secretismo. Um dos contributos desta investigação consiste, entre outros, na identificação do potencial impacto da cultura sobre o julgamento profissional, mesmo no contexto do avançado processo de harmonização contabilística internacional em curso.

Esta tesis está dedicada al estudio de la divulgación de información sobre instrumentos derivados, y sus factores determinantes, por parte de las empresas portuguesas. Hemos definido, como principales objetivos de investigación: identificar la extensión de la ...

Esta investigação tem por principal objetivo evidenciar a presença dos valores contabilísticos de Gray em Portugal,nomeadamente através da obtenção de uma correspondência entre os valores do conservadorismo e do secretismo em termos do reconhecimento, mensuração e da divulgação, relacionados com as Perdas por Imparidade. O estudo baseou-se na análise de conteúdo do relato financeiro publicado pelas entidades através da IES no que diz respeito ao reconhecimento, mensuração e divulgação de perdas por imparidade, na ligação do tema com dois dos valores contabilísticos propostos por Gray (1988), nomeadamente, o conservadorismo e o secretismo. O objetivo deste estudo passa por estudar a evidência do conservadorismo e do secretismo divulgado no relato financeiro, nomeadamente na informação relacionada com as perdas por imparidade. A referida análise centrou-se na verificação da existência de possíveis diferenças significativas, por um lado,e de um eventual relacionamento, por outro, no qu...

Artigo em revista científica internacional com arbitragem científicaThis paper intends to assess the existence of confirmatory variables of conservatism based on the disclosures made in the financial report. Data were collected from the annual accounts for 2013 and 2014 disclosed by 137 listed entities (non-financial groups) in the European Union (EU) stock indexes: Portuguese Stock Index (PSI)-20, Iberian Index (IBEX)-35, Financial Times Stock Exchange (FTSE)- 100, German Stock Index (DAX)-30 e Stockholm Stock Exchange (OMX)-S30. The content analysis was used as a methodology. After applying multiple linear regression models, the findings indicate that the assessment of the conservatism based on relevance is consistent with the associations suggested in the literature. One of the main contributions of this research is the consideration of the impact of culture on financial reporting, namely through the proposal of a new proxy for the measurement of conservatism based on the financi...

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) have always been concerned with the use of operating leases as a way of off-balance sheet financing due to the lack of transparency of the disclosed information, which does not provide a real picture of leasing operations and it hinders comparability between companies. To close this gap, the two organizations agreed to change the previous accounting model, eliminating the classification of financial and operating leases, making it mandatory to recognize all leases by the lessees in the assets and liabilities of the balance sheet of their companies. This results in IFRS 16, issued on January 2016 and applicable to periods beginning on or after January 1, 2019. Under this standard, a lease is a contract that gives the lessee the right to use the asset for a certain period of time. However, recognizing the right-of-use (ROU) and underlying accountability on the balance sheet will alter the reading and interpretation of ratios, used by most of the covenants, and how we evaluate the performance of the companies. To anticipate the consequences of adopting the new leasing rule, this dissertation investigates, from a sample of non-financial companies listed in EURONEXT Lisbon and the Madrid Stock Exchange, specifically in the IBEX 35 index, the ex ante impact of the implementation of IFRS 16 in the evaluation of companies, measured by the impact on share prices in the period between 2014 and 2016. The results obtained suggest that, despite the impact on some ratios, no effect on the share price is predicted, since users of financial information will be adjusting the figures presented in the financial statements, to reflect the assets and liabilities arising from existing operating leases.

Este estudo tem como objectivo o estudo da divulgacao voluntaria de capital intelectual nos relatorios anuais de 32 empresas cotadas na Euronext Lisbon, ininterruptamente de 2001 a 2009. Este estudo difere dos estudos anteriores uma vez que procura analisar a evolucao, ao longo dos anos, da divulgacao do capital intelectual em Portugal. Os resultados deste estudo indicam que os niveis de divulgacao de capital intelectual sao muito reduzidos nao tendo sido registado um aumento, estatisticamente significativo, no nivel de divulgacao. Os resultados ainda indicam que em 2001 a categoria de capital intelectual com maior divulgacao foi a do capital externo, enquanto nos anos de 2003 e 2005 a categoria com maior nivel de divulgacao foi a categoria do capital interno. Nos anos de 2007 e 2009 as categorias de capital externo e capital interno apresentam proporcoes de divulgacao muito semelhantes. A categoria do capital humano e a categoria com menor nivel de divulgacao.

A influência do fator cultural no âmbito da subcultura da Contabilidade é reconhecida pela literatura, que não descura os seus eventuais impactos na comparabilidade do relato financeiro. A presente investigação visa aferir a eventual existência de distintos níveis de valores culturais propostos por Gray (1988) em função de agrupamentos regionais. Adicionalmente, pretende-se testar a existência de uma eventual associação entre os referidos valores culturais. A recolha dos dados foi realizada a partir dos relatórios e contas consolidados anuais, referentes a 2013 e 2014, divulgados pelas entidades cotadas (grupos não financeiros) nos índices bolsistas relativos a mercados financeiros da União Europeia (UE), tendo sido utilizada a análise de conteúdo como metodologia. Após a aplicação de critérios específicos de seleção, a população final deste estudo é constituída por 137 entidades. Os resultados obtidos a partir da aplicação de técnicas de análise não-paramétricas bivariadas sugerem ...

The influence of cultural factor within the subculture of accounting is recognized by the literature, that does not neglect its possible impact on comparability of financial reporting. This research seeks to analyze the possible existence of distinct levels of cultural values proposed by Gray (1988) on the basis of regional groups. Additionally, it is intended to test the existence of a possible association between the cultural values, as well as between these and the qualitative characteristics. Data collection was carried out from the reports and consolidated annual accounts, for 2013 and 2014, disclosed by non-financial entities listes in stock indexes relating to financial markets of the European Union, having been used as content analysis methodology. After the application of the selection criteria, the final population of this study encompasses 137 entities. The findings based on the application of non-parametric bivariate analysis techniques suggest that the conservatism coul...

Many companies report profitability using pro forma earnings along with GAAP earnings. However, strong debate exists on the use of pro forma earnings reports. Proponents say that managers use such reports to help stockholders focus on the most salient details of the financial statements, while critics believe they are misused by managers to cast a positive light on undesirable financial results. The purpose of this exploratory study is to directly examine investor perceptions of pro forma earnings and to investigate whether differences exist between professional and non-professional investors in their perceptions of pro forma earnings compared to GAAP earnings reports. Results indicate that both professional and non-professional investors perceive pro forma earnings reports as less useful than GAAP reports. This finding contradicts previous research based on stock return data. Overall, results also indicate that non-professional investors may fail to adequately adjust for potential management bias in pro forma reports which could lead to suboptimal decision-making and poor or negative returns. Both groups of respondents agreed that standards should be developed for pro forma reports and those pro forma earnings releases should be reviewed by a certified public accountant prior to public release.

do Algarve Resumo O estudo aborda o problema da previsão de acréscimos ou decréscimos dos lucros por acção de empresas com base na informação contabilística do ano anterior. A amostra utilizada engloba as principais empresas portuguesas, industriais e de serviços, a transaccionar na Bolsa de Valores de Lisboa e Porto entre os anos 1993 e 1997. As variáveis independentes utilizadas na construção dos modelos baseiam-se em indicadores contabilísticos. Os resultados sublinham a importância da informação contabilística na previsão de acréscimos ou decréscimos nos lucros por acção. Ficou demonstrada a grande importância das variáveis artificiais associadas a alguns rácios na melhoria dos resultados. Certas transformações de dados podem, em alguns casos, melhorar a capacidade preditiva dos modelos Um outro factor inovador que contribuiu decisivamente para a melhoria da capacidade preditiva dos modelos foi a constituição de sub-amostras homogéneas segundo as características contabilísticas das empresas.

This article is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. Attribution-NonCommercial-NoDerivs (CC BY-NC-ND) license only allowing others to download our works and share them with others as long as they credit us, but they can't change them in any way or use them commercially.

This study explores the influence of corporate attributes on market capitalization, based on the potential relationships between corporate attributes, corporate disclosure, and market capitalization. The study focused on non-financial listed companies in Bangladesh and uncovered several significant influences of corporate attributes, such as asset size, turnover, shareholders, and internationality, on market capitalization. This contribution provides new insights into corporate attributes and market capitalization, and suggests that existing and potential investors should assess corporate attributes while making investment decisions.

This study explores the influence of corporate attributes on market capitalization, based on the potential relationships between corporate attributes, corporate disclosure, and market capitalization. The study focused on non-financial listed companies in Bangladesh and uncovered several significant influences of corporate attributes, such as asset size, turnover, shareholders, and internationality, on market capitalization. This contribution provides new insights into corporate attributes and market capitalization, and suggests that existing and potential investors should assess corporate attributes while making investment decisions.

This study explores the influence of corporate attributes on market capitalization, based on the potential relationships between corporate attributes, corporate disclosure, and market capitalization. The study focused on non-financial listed companies in Bangladesh and uncovered several significant influences of corporate attributes, such as asset size, turnover, shareholders, and internationality, on market capitalization. This contribution provides new insights into corporate attributes and market capitalization, and suggests that existing and potential investors should assess corporate attributes while making investment decisions.

Resumo
A inexistência de um modelo padronizado para a apresentação das demonstrações financeiras dificulta sua análise por parte dos stakeholders, designadamente dos resultados financeiros, em virtude da flexibilidade existente na International Accounting Standards (ias) 1. Perante esta premissa, questiona-se a possibilidade de comparar demonstrações financeiras entre distintas entidades sem o recurso a ajustamentos adicionais e casuísticos. No sentido de contribuir para a discussão em torno da temática, este estudo analisa o grau de detalhe e os fatores determinantes da apresentação dos itens de gastos e rendimentos financeiros reportados na face da demonstração dos resultados por natureza. Os dados foram recolhidos através dos relatórios e contas consolidados das entidades cotadas no Euronext Lisboa nos anos de 2005, 2010 e 2015, totalizando 118 relatórios ao longo desse período. Foram criados índices de apresentação para possibilitar a analise através de testes bivariados (Mann-Whitney-U). Os resultados sugerem que um conjunto ainda expressivo de determinantes respondem pelos diferentes níveis de detalhe divulgados na demonstração dos resultados em matéria de gastos e rendimentos financeiros, nomeadamente a auditoria externa, a rendibilidade, a normalização contabilística, o período de relato (parcialmente) e a apresentação do resultado financeiro.
Abstract:
The lack of a standardized model for the presentation of the financial statements makes it difficult for stakeholders to analyze them, particularly for financial results, due to the flexibility prescribed by the International Accounting Standards (ias) 1. Given this, the possibility of comparing financial statements amongst different entities without the use of additional and casuistic adjustments is questioned. In order to contribute to the discussion around this theme, this study analyzes the degree of detail and the determinants of the presentation of items of expenses and financial income reported in the face of the income statement by nature. Data were collected through the consolidated reports and accounts of entities listed on Euronext Lisbon in the years 2005, 2010 and 2015, comprising 118 reports during that period. Presentation indices were created to allow the analysis through bivariate tests (Mann-Whitney-U). The results suggest that a still significant set of determinants respond to the different levels of detail disclosed in the income statement for financial expenses and income, namely the external auditing, profitability, accounting standardization, the reporting period (partially) and the presentation of the financial result.

The aim of this paper is to examine the users' perception regarding the importance, relevance, timeliness, materiality and comparability of voluntary disclosure in corporate annual reports practiced by the listed companies operating in Bangladesh. Data have been collected through planned questionnaire by using direct interview method of data collection. Identifying the perceptions of various user groups i.e., professional accountants, accounting professors, investors and stockbrokers. The Chi-Square tests were carried out to test the nominated null-hypotheses. It is revealed from the analytical results that the respondents' perception is dissatisfactory of Timeliness, comparability and relevance. Such dissatisfaction indicates that the existing corporate voluntary information practices of Bangladesh are not capable of meeting the users' information needs.

This empirical study evaluates the views and perceptions of external users about selected qualitative characteristics of corporate financial reports in Bangladesh. The selected qualitative characteristics were predictive value, feedback value, timeliness, verifiability, representational faithfulness, neutrality and comparability. An opinion survey was conducted on one hundred ninety external users specifically shareholders, stockbrokers, bankers, academicians and tax officers. The users’ perception about the qualitative characteristics of corporate financial reporting is far below the acceptable level and as such users have a negative attitude towards disclosures of financial reporting. The study suggests that Board of Directors (representatives of the majority shareholders) should try to resuscitate the confidence level of external users through ensuring good corporate governance with utmost sincerity and integrity. The BOD should also ensure that financial statements reflect the t...

This empirical study evaluates the views and perceptions of external users about selected qualitative characteristics of corporate financial reports in Bangladesh. The selected qualitative characteristics were predictive value, feedback value, timeliness, verifiability, representational faithfulness, neutrality and comparability. An opinion survey was conducted on one hundred ninety external users specifically shareholders, stockbrokers, bankers, academicians and tax officers. The users' perception about the qualitative characteristics of corporate financial reporting is far below the acceptable level and as such users have a negative attitude towards disclosures of financial reporting. The study suggests that Board of Directors (representatives of the majority shareholders) should try to resuscitate the confidence level of external users through ensuring good corporate governance with utmost sincerity and integrity. The BOD should also ensure that financial statements reflect the true and fair view of financial position, performance and the state of affairs of the reporting entity. This research may help policy makers, regulators, reporting entities, academicians, stakeholders, and other interested groups to endorse good corporate financial reporting environment in Bangladesh.

In this paper, we examine the relationship between the board characteristics and the informativeness of accounting earnings for a sample of Tunisian firms. Using panel data methodology, we provide evidence that board composition affects the information content of accounting incomes in Tunisian context. Particularly, board independence and identity of directors enhance the earnings quality. However, the non duality CEO/chairman is negatively related to the informativeness of accounting incomes. Our findings confirm that the board of directors is an appropriate governance mechanism in monitoring managers and improving corporate transparency in Tunisian firms.