Internal Controls and Financial Reporting Quality

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530593
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Accounting
• Research Institution: Chiba University of Commerce (2014); 福島学院大学短期大学部 (2012-2013)
• Principal Investigator: NAKASHIMA Masumi 千葉商科大学, 会計ファイナンス研究科, 教授 (90249219)
• Co-Investigator(Renkei-kenkyūsha): OKUDA Shin'ya 名古屋市立大学, 経済学部, 准教授 (40311431)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 利益の質 / 会計発生高の質 / 会計的裁量行動 / 実体的裁量行動 / 内部統制 / Tone at the Top / ガバナンス / 監査の質

Outline of Final Research Achievements

This study examines whether J-SOX impacted earnings quality and earnings management for public firms in Japan. This study suggests that accruals quality improves after the passage of J-SOX for control firms and that forecast accuracy improves post-J-SOX for both control firms and material weaknesses disclosing firms (MW firms). While earnings management remains unchanged in the post-J-SOX period for control firms, both accruals and real earnings management are changed after the passage of J-SOX for MW firms. Also, this study examines whether the tone at the top is positively associated with earnings quality. This study observed a statistically significant relation between the measure of cash flow prediction accuracy and tone at the top (TATT). This suggests that TATT is significantly associated with accuracy of cash flow predictions.

Free Research Field

会計学