Financial Reporting Quality and Corporate Governance: the Portuguese Companies Evidence

In: Business and Management

Submitted By modello
Words 10616
Pages 43


Cristina Gonçalves Góis Senior Lecture Instituto Superior de Contabilidade e Administração de Coimbra Instituto Politécnico de Coimbra

Área temática: C) Dirección y Organización Palabras clave: gobierno corporativo; la calidad contable; información financiera;




The main objective of this paper is to analyze the relationship between the composition and characteristics of corporate governance on the financial reporting quality of Portuguese companies. The major reference case studies on the relationship between corporate governance and the financial reporting quality are not validated by the results obtained. The results show that the board composition changes and its degree of independence do not produce any influence on the quality of the accounting information. Our study shows that although the main international guidelines relating to the rules of good governance have been followed closely by Portuguese institutions, the actual implementation of these rules did not occur.


1. INTRODUCTION The aim of this paper is to contribute to the study of the influence of the type of corporate governance on the financial reporting quality in countries with a tradition of continental accounting. Despite the profuse literature about this topic, adapted to Anglo-Saxon environments, its applicability to companies with different structures, specifically companies in Latin markedly based on Roman law, less flexible and more closed, is still at a very early stage of understanding. The Portuguese state falls within this context and needs to be widely known and understood. The effect of the introduction of corporate governance rules as results of mandatory…...

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