The East Asian counties Hong Kong, Malaysia, Singapore, and Thailand provide rare insight into the interaction between accounting standards and the incentives of managers and auditors. Their standards derive from common law sources (UK, US, and IAS) that are widely viewed as higher quality than code law standards. However, their preparers' incentives imply low quality. We show their financial reporting quality is not higher than under code law, with quality operationalized as timely recognition of economic income (particularly losses). It is
Department, Program, or Center
Journal of Accounting and Economics. 36. 2003. 235 - 270.
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