Monitoring Accounting Changes: Empirical Evidence from the Netherlands
Bibliographic record
Abstract
This empirical paper investigates the relationship between the corporate governance structure of the firm and the probability of voluntary accounting changes in the Netherlands during the period 1990-1998. The paper reports the results of a sample of 194 voluntary accounting changes. The empirical results show that the presence of large outside shareholders significantly decreases the probability of voluntary accounting changes that have a positive effect on reported net income. This result supports the monitoring hypothesis, which indicates that large outside shareholders will monitor voluntary accounting changes more effectively than small shareholders, and will restrict the opportunistic behaviour of managers bent on increasing reported net income. We find that management shareholdings decrease the probability of voluntary accounting changes. These findings are consistent with the alignment hypothesis, which suggests that managers who hold a stake in the firm will be more aligned with outside shareholders. Agency problems may be reduced through management shareholdings. We find no support for the monitoring role of outside members of the supervisory board. Finally, our results show that firm size affects the probability of negative accounting changes, which may support the political cost hypothesis.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.002 | 0.015 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.001 | 0.000 |
| Bibliometrics | 0.002 | 0.005 |
| Science and technology studies | 0.000 | 0.001 |
| Scholarly communication | 0.002 | 0.001 |
| Open science | 0.001 | 0.001 |
| Research integrity | 0.001 | 0.000 |
| Insufficient payload (model declined to judge) | 0.002 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".