How to measure financial reporting quality internationally?

摘要

This article develops an index to measure financial reporting quality at country level, i.e., financial reporting quality index. This index is applied in eight Asian-Pacific countries for year 2004 and 2005. The results suggest that Australia and New Zealand are among the best financial reporting quality countries in this area. Further analysis shows that financial reporting quality in the group as a whole was stable during the two years time period.