The Financial Reporting Quality of Public Companies

Introduction

DOI: 10.4324/9781003280088-1

In recent years, both theoreticians and practitioners of finance and accounting have become increasingly interested in seeking significant relationships between the individual economic categories reported in financial statements and cultural circumstances.

Earnings are one of the most important economic parameters, the determination and presentation of which are matters dealt with to a great extent in the domain of accounting. This category has its roots in the functions it serves in economy. It is important for the users of financial statements when it comes to decision-making. Market participants are interested in the earnings shown in a financial statement but try to stay up-to-date with forecasts ...