Quality of Accounting, Earnings Opacity and Corruption

Abstract

The paper explores the impact of the quality of accounting in a given country, as measured by an index of earnings opacity, on the country's level of corruption. The results of a regression of corruption on earnings opacity for a sample of 34 countries show significant relationships between the level of corruption and the level of earnings opacity after controlling for economic development, human development, size of government and economic freedom.

Citation

Picur, R.D. (2004), "Quality of Accounting, Earnings Opacity and Corruption", Review of Accounting and Finance, Vol. 3 No. 1, pp. 103-114. https://doi.org/10.1108/eb043397