Title: The effects of cross-border banking and institutional quality on accounting information of banks in Africa

Authors: Mohammed Amidu; Aisha Mohammed Sissy; Haruna Issahaku

Addresses: Department of Accounting, University of Ghana Business School, P.O. Box LG 78, Legon, Accra, Ghana ' Department of Finance, University of Ghana Business School, P.O. Box LG 78, Legon, Accra, Ghana ' Department of Economics and Entrepreneurship Development, University for Development Studies, P.O. Box 520, Wa, Ghana

Abstract: This paper seeks to analyse the implications of cross-border banking and institutional quality for accounting information quality. We sample 330 banks across 29 African countries and employ system GMM estimator as a methodological approach to test for two related hypotheses. First, banks financial statements are prepared on the basis of international accounting standards as banks cross-border when national institutions are strengthened. We build on these results and employ various specifications of institutional quality; the second test suggests that the relative quality of accounting information among banks in Africa during the period, 2002-2013, is attributed to cross-border banking, larger market share and the level of transparency.

Keywords: banks; cross-border banking; institutional quality; developing countries; Africa.

DOI: 10.1504/IJEA.2017.092275

International Journal of Economics and Accounting, 2017 Vol.8 No.3/4, pp.240 - 274

Received: 09 Jan 2017
Accepted: 23 Jan 2018

Published online: 29 May 2018 *

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