دانلود رایگان مقاله انگلیسی نقش بازده سهام در کیفیت درآمد: شواهد از منطقه MENA - الزویر 2018

Abstract

This paper examines the association between stock exchange efficiency and the quality of reported earnings for publicly listed firms from 16 MENA countries between 2001 and 2010. The study shows that there is a positive association between stock exchange efficiency and the quality of reported earnings which is robust to potential endogeneity concerns. Meanwhile, the strength of this relationship is not affected by the other exogenous factors (i.e. investor protection, legal origin, economic and political shocks). These results are robust to the inclusion of industry or country fixed effects, exclusion of oil industry, and the use of alternative measures of earnings quality. The study contributes to the extant literature on expanding the definition of the stock exchange efficiency that goes beyond information efficiency. Further, as countries across MENA region are going through reforms, then a study of the influence of such reforms on stock exchange efficiency and earnings quality provides insights in the factors driving stock exchange efficiency in these countries.

8. Conclusion

There has been limited examination of the association between stock exchange monitoring and firm outcomes. Those that do, capture only limited aspects of stock exchange governance functions (i.e. securities regulation, trading system), and examine their association with a limited range of firm outcomes such as cost of equity and corporate valuation. Thus, this study attempts to fill this gap and adds to this line of literatuer by using macroeconmic factors as adeterminits of stock exchange efficiency which provides a comperhencive measure of efficiency that goes beyond information efficiency. Consequently, this study answers an important research question, whether MENA stock exchanges efficiency influences earnings quality of their listed firms. The results indicate that there is a negative associated between stock exchange efficiency and the absolute value of abnormal accruals (a proxy of earnings quality). These results are in line with the extant literature that documents a positive association between external mechanisms (e.g. Big N auditor firms, banking, and institutional ownership) and earnings quality (e.g. Ahn & Choi, 2009; Gul et al., 2009; Teoh & Wong,1993; Velury & Jenkins, 2006). These findings supported by the propensity score-matching approach, suggesting that firms listed on more efficient stock exchanges have higher earnings quality (lower accruals) than their counterparts listed in less efficient stock exchanges. Meanwhile, this association continues to be evident in the presence of other exogenous factors shown in prior research to affect earnings quality, comprising investor protection, legal origin, and instability resulting from economic and political events.