Role of Corporate Governance in Organization

Following the great financial infamy in bigcompanies, like Enron, World Com, Adelphi, Cisco and …,one of the most issues noticed by researchers and suggestedfrom investors is Corporate Governance, addressing theneed for company management control, dividingeconomical unit from its ownership and improving theperformance of the board of managers, auditors,accounting system, internal control, and finally maintaininginvestors and stakeholders’ rights. Using better managersin companies results in improvement of their performance,leading to stockholders rights too; consequently financialyields will be increased and company control will be betterperformed. Corporate Governance importance in the worldis at some extent that Standard & Poors institute hasintroduced following multiple criteria to measure corporategovernance status: ownership structure, financialstockholders relationships, structure and how- to- act of theboard of managers, and clearance and disclosure of theinformation. Due to the issue importance, this article willdefine the corporate governance and its conceptualframework, types of existed theories, types of the corporategovernance, and comparing them with each others as wellas attempting to develop corporate governance

Financial reporting quality and information asymmetry (A case of Iranian firms)

The purpose of this paper is to examine empirically the impact of financial reporting quality on information asymmetry in Iran. Using three different attributes of financial reporting quality including: accruals quality, earnings persistence and earnings predictability, data analysis over a period of five years (2008–2012) revealed that accruals quality is negatively and significantly associated with information asymmetry. We also find that, firms with more earnings predictability have lower level of information asymmetry. However, contrary to expectation, we fail to find a significant association between earnings persistence and Iranian firm’s information asymmetry. These findings have implications for policy makers, managers, investors and researchers in general and those in emerging markets in particular

Financial reporting quality and information asymmetry (A case of Iranian firms)

The purpose of this paper is to examine empirically the impact of financial reporting quality on information asymmetry in Iran. Using three different attributes of financial reporting quality including: accruals quality, earnings persistence and earnings predictability, data analysis over a period of five years (2008–2012) revealed that accruals quality is negatively and significantly associated with information asymmetry. We also find that, firms with more earnings predictability have lower level of information asymmetry. However, contrary to expectation, we fail to find a significant association between earnings persistence and Iranian firm’s information asymmetry. These findings have implications for policy makers, managers, investors and researchers in general and those in emerging markets in particular