We explore how corporate governance shapes accounting decisions. Using a sample of firms from 41 economies that passed major board reforms between 1990 and 2012, we find that strengthened corporate governance mechanisms compel managers to recognize goodwill impairment promptly. Moreover, the effects of corporate governance on accounting decisions are more pronounced for firms from countries with stronger enforcement. In sum, our findings are consistent with the notion that corporate governance increases accounting quality.

Dr Feida (Frank) Zhang is an Associate Professor of Accounting in UQ Business School. He obtained his PhD from Hong Kong Baptist University and MPhil from Xiamen University. Frank's research investigates accounting information, corporate finance, corporate governance, and many other empirical accounting and finance issues. His papers has been published or accepted in leading academic journals including Journal of Financial and Quantitative Analysis, Journal of Corporate Finance, European Accounting Review, Journal of Business Ethics, Accounting Horizons, and so on. Frank's research papers have been accepted for presentation at a number of highly regarded international conferences and won Best Paper Awards from AAA annual conference (2013, 2017) and AFAANZ annual conference (2016).