ECONOMIC POLICY UNCERTAINTY AND FINANCIAL REPORTING QUALITY: INTERNATIONAL EVIDENCE

Abstract

A wide range of countries' financial reporting is examined in the context of economic policy uncertainty in this article. In the current literature inventory which examines the correlation between economic policy uncertainty and the quality of financial reporting, there have not been many attempts. This thesis makes use of the discretionary accruals and Baker et al. (2016)'s index as an EPU indicator as a proxy for reporting quality. When there is a lot of economic policy uncertainty, firms are more likely to modify their financial reporting data in order to get the desired effect. In this thesis, I will present my research on current literature on both theoretical and empirical perspectives related to the topic and aim to contribute an empirical result for this ambiguous relationship between economic policy uncertainty and financial reporting quality