Corporate Governance, the Timeliness of Financial Reporting and the Russian Banking System: An Empirical Study

23 Pages Posted: 7 Jun 2008

See all articles by Robert W. McGee

Robert W. McGee

Fayetteville State University - Department of Accounting

Thomas J. Tarangelo

Florida International University (FIU) - School of Accounting

Date Written: June 2008

Abstract

Transparency is one of those terms that have many facets. It is used in different ways. It can refer to the openness of governmental functions. It can refer to a country's economy. Or it can refer to various aspects of corporate governance and financial reporting. The OECD (1998) lists transparency as one element of good corporate governance. Kulzick (2004) and others (Blanchet, 2002; Prickett, 2002) view transparency from a user perspective. According to their view, transparency includes the following eight concepts: accuracy, consistency, appropriateness, completeness, clarity, timeliness, convenience, and governance and enforcement. This paper focuses on just one aspect of transparency - timeliness.

The International Accounting Standards Board considers timeliness to be an essential aspect of financial reporting. In APB Statement No. 4, the Accounting Principles Board (1970) in the USA listed timeliness as one of the qualitative objectives of financial reporting disclosure. APB Statement No. 4 was later superseded but the Financial Accounting Standards Board continued to recognize the importance of timeliness in its Concepts Statement No. 2 (1980). The U.S. Securities and Exchange Commission also recognizes the importance of timeliness and requires that listed companies file their annual 10-K reports by a certain deadline.

The issue of timeliness has several facets. There is an inverse relationship between the quality of financial information and the timeliness with which it is reported (Kenley & Staubus, 1974). Accounting information becomes less relevant with the passage of time (Atiase, Bamber & Tse, 1989; Hendriksen & van Breeda, 1992; Lawrence & Glover, 1998).

Keywords: corporate governance, financial reporting, timeliness, Russia, bank, financial institutions, IFRS, transition economy

JEL Classification: M4, O52, G21, K22, G34, G30

Suggested Citation

McGee, Robert W. and Tarangelo, Thomas J., Corporate Governance, the Timeliness of Financial Reporting and the Russian Banking System: An Empirical Study (June 2008). Available at SSRN: https://ssrn.com/abstract=1141885 or http://dx.doi.org/10.2139/ssrn.1141885

Robert W. McGee (Contact Author)

Fayetteville State University - Department of Accounting ( email )

Fayetteville, NC 28301
United States

HOME PAGE: http://robertwmcgee.com

Thomas J. Tarangelo

Florida International University (FIU) - School of Accounting ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

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