TY  - JOUR
AB  - Purpose The purpose of this paper is to examine the effectiveness of voluntary governance mechanisms in Australia.Design/methodology/approach This study identifies similar choices of corporate governance by Australian firms and tests the effectiveness of the choices made based on the earnings quality of reported firms. Cluster analysis is conducted using governance best practice variables, firm size and an earnings quality variable.Findings This paper’s results support the voluntary governance approach for smaller firms, but suggest that mandatory governance requirements could be beneficial for larger firms. Evidence suggests that a benefit accrues for larger firms with the adoption of governance best practice. Cluster analysis indicates that larger firms tend to exhibit higher levels of adoption of governance best practice than smaller firms.Originality/value This paper adds to the literature by providing important information regarding the suitability of adoption of voluntary governance mechanisms in Australia.
VL  - 29
IS  - 4
SN  - 1030-9616
DO  - 10.1108/ARJ-06-2014-0056
UR  - https://doi.org/10.1108/ARJ-06-2014-0056
AU  - Kent Pamela
AU  - Kent Richard Anthony
AU  - Routledge James
AU  - Stewart Jenny
PY  - 2016
Y1  - 2016/01/01
TI  - Choice of governance structure and earnings quality
T2  - Accounting Research Journal
PB  - Emerald Group Publishing Limited
SP  - 372
EP  - 390
Y2  - 2024/05/13
ER  -