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dc.contributor.authorSaona Hoffmann, Paolo Rodrigoes-ES
dc.date.accessioned2017-05-29T13:47:39Z
dc.date.available2017-05-29T13:47:39Z
dc.identifier.urihttp://hdl.handle.net/11531/18508
dc.description.abstractVer resumen en ingléses-ES
dc.description.abstractThis Chapter studies the impact of financial reporting quality on firms market performance in a sample of LATAM corporations, using this data to examine the perception processes of investors as a mediating variable between reporting quality and market performance. We infer that, especially in contexts of high information asymmetry, investors are not able to effectively discern the quality of the information they are provided with, and can therefore be misled in their investment decisions by managerial opportunism. Our theoretical framework is built upon a combined agency theory and cognitive approach, around which we model earnings management as a proxy for financial reporting quality. We thereby seek to provide a valuable method to better understand how investors could be making suboptimal choices as a consequence of managers opportunistic behaviour. Empirically, we use the Generalized Method of Moments (GMM) model, hypothesizing that a positive relationship should be observed between the opportunistic manipulation of earnings (that is, the misuse of accounting accruals) and the firm s market performance (that is, the consequential behaviour of investors). Through this pioneering methodology, applied to the relatively under-researched LATAM region, we find that: 1) Financial data are identifiably and consistently manipulated through discretionary accruals in these countries. 2) As manipulation increases, markets do tend to appear more attractive to investors. 3) The elasticity of the market reaction to this manipulation is higher in what we term opaque countries. Overall, we hope our research will serve as a generalizable method from which to derive policy recommendations for investors, managers and other agents involved with and impacted by the quality of the financial reporting process.en-GB
dc.format.mimetypeapplication/octet-streames_ES
dc.language.isoen-GBes_ES
dc.rightsCreative Commons Reconocimiento-NoComercial-SinObraDerivada Españaes_ES
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/es_ES
dc.titleEarnings Quality and Market Performance in LATAM Corporations: A Combined Agency and Cognitive Approach to Investors Perceptions of Managerial Informationes_ES
dc.typeinfo:eu-repo/semantics/workingPaperes_ES
dc.description.versioninfo:eu-repo/semantics/draftes_ES
dc.rights.holderes_ES
dc.rights.accessRightsinfo:eu-repo/semantics/openAccesses_ES
dc.keywordses-ES
dc.keywordsen-GB


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Creative Commons Reconocimiento-NoComercial-SinObraDerivada España
Except where otherwise noted, this item's license is described as Creative Commons Reconocimiento-NoComercial-SinObraDerivada España