Browsing by Author "Basahi, Ahmed"

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Quality of Accounting Information, Corporate Governance, and Economic Crises: Evidence from the Asia-Pacific Countries
(Saudi Digital Library, 2025) Basahi, Ahmed; Chand, Parmod
Economic crises pose significant challenges to financial systems, affecting corporate performance, accounting practices, and governance structures globally. During crises, accounting information’s relevance and earnings quality often come under scrutiny as firms face financial stress and managers grapple with meeting performance expectations. This amplifies the importance of reliable and transparent financial reporting. This thesis explores the multifaceted impact of such crises on the quality of accounting information, corporate governance mechanisms, and firm value, focusing on the Asia-Pacific region. Specifically, it delves into how economic disruptions, like the COVID-19 pandemic, influence the value relevance of accounting information and earnings quality, as well as how corporate governance can serve as a stabilising factor, influencing firm value and mitigating the adverse effects of economic shocks. By examining the Asia-Pacific, the thesis provides a unique perspective on a region marked by institutional diversity and significant economic influence. The overarching aim of this thesis is to enhance the understanding of how economic crises impact accounting, with a particular focus on the Asia-Pacific region. This region, with its diverse institutional frameworks, regulatory environments, and financial systems, provides a fertile ground for examining this issue. The first paper investigates the effects of economic crises on the value relevance of accounting information in 14 major Asia-Pacific economies. Using a comparative analysis of pre-pandemic and pandemic periods, the study reveals a significant decline in the explanatory power of accounting information during the pandemic. Institutional factors, such as investor protection, legal systems, and financial systems, are shown to moderate this relationship. The findings underscore the importance of regional diversity in shaping how accounting information is utilised by investors during periods of economic instability, offering actionable insights for policymakers and regulators. The second paper provides a comparative analysis of earnings quality during two major economic crises: the 2008 global financial crisis (GFC) and the COVID-19 pandemic. The results reveal that earnings quality deteriorated during both crises. Interestingly, the results also reveal that the GFC had a more significant impact on accrual-based earnings management when compared with COVID-19, although COVID-19 had a more severe effect on economies. This highlights the role of improved regulatory reforms and accounting standards in recent years in the Asia-Pacific region in limiting accounting manipulation. By comparing these distinct crises, the paper advances the understanding of how financial and operational challenges impact earnings quality in diverse economic contexts. The final paper examines the influence of corporate governance on firm value in the Asia- Pacific region, emphasising the moderating effect of economic conditions. The findings demonstrate that robust country-level governance and firm-level corporate governance, including board size, board independence, and audit committee independence, positively affect firm stock performance. Furthermore, their positive effects become more evident during times of economic uncertainty, such as during COVID-19. By illustrating the protective role of governance mechanisms during economic downturns, this paper offers critical insights for fostering resilience in firms facing volatile environments. Taken together, the findings of the three papers collectively emphasise the critical interplay between economic crises and accounting information quality and the important role of governance systems in enhancing firm resilience during periods of economic uncertainty. By conducting a comprehensive cross-country analysis, the thesis enhances our understanding of the implications of economic conditions on the accounting profession and provides valuable insights into the broader implications of economic uncertainty on corporate decision-making, investor behaviour, and financial transparency.
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