The Link between Earnings Timeliness, Earnings Conservatism and Board Composition: Evidence from the UK

Posted: 10 Sep 2003

See all articles by Wendy Beekes

Wendy Beekes

Lancaster University - Department of Accounting and Finance

Peter F. Pope

Bocconi University; London School of Economics and Political Science

Steven Young

Lancaster University - Department of Accounting and Finance

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Abstract

This paper examines the links between accounting quality, proxied by earnings timeliness and conservatism, and the composition of the board of directors. Results indicate that firms with a higher proportion of outside board members are more likely to recognise bad news in earnings on a timely basis. However, firms whose boards comprise a relatively high proportion of outsiders do not display greater reporting conservatism with regard to the recognition of good news. These findings suggest that board composition is an important factor in determining the quality of UK firms' reported earnings with respect to incorporating bad news on a timely basis.

Note: Previously titled "The Link Between Earnings Conservatism and Board Composition: Evidence from the UK"

Keywords: Accounting quality, board composition, and corporate governance

Suggested Citation

Beekes, Wendy and Pope, Peter F. and Young, Steven, The Link between Earnings Timeliness, Earnings Conservatism and Board Composition: Evidence from the UK. Available at SSRN: https://ssrn.com/abstract=443041

Wendy Beekes (Contact Author)

Lancaster University - Department of Accounting and Finance ( email )

Lancaster LA1 4YX
United Kingdom

Peter F. Pope

Bocconi University ( email )

Dept of Accounting
Milan, 20136
Italy

London School of Economics and Political Science ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Steven Young

Lancaster University - Department of Accounting and Finance ( email )

The Management School
Lancaster LA1 4YX
United Kingdom
+441 5245-94242 (Phone)
+441 5248-47321 (Fax)

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