Antecedents and Consequences of Earnings Opacity: Toward an International Contingency Theory

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This paper posits that the phenomenon of earnings opacity is not only the result of legal, religious, political, social, economic and accounting antecedents but also creates consequences for the quality of government, corporate valuation, economic growth and productivity of nations. The examination of the empirical relations between earnings opacity and its antecedents and consequences is viewed as a first step toward the development of an international contingency theory of earnings opacity.