About issue of government debt (national debt),the redemption is performed from issue profit of currency for economy in the near future's needs. It won't be from GDP in the generation in the future.
If the reporting standards are very different in each country, then you have to consider them separately in how they comply with their respective market.
but lately in all markets, international reporting standards are adopted, thus unifying the reporting standards.
Dear Ekow Yamoah. One way of evaluating financial reporting quality is by adapting value relevance methodology. For example Ohlson (1995) looks at the association between market value of firm and book value of assets plus earnings.
some studies measure quality by comparing existing reporting practice with the prescribed reporting standatd and regulation but i disagree with this method.
Dear Yamoah, you should also consider the latest trends for quality reporting as proposed by International Integrated Reporting Council. It provides good framework which gets support from some accounting professional bodies. In addition, the extent of disclosure to include current issues such as intellectual capitals and level of earnings quality should also be considered.
Dear Yamoah
There have been a number of studies which look at the relationship between financial measures per the financial statements and 'independent' variables such as cost of capital, return on debt instruments and volume of trade/share price after release of financial information (value-relevance studies). Different corporate governance characteristics (such as the number of financial experts on audit committees and the types of audit firms) are also taken into account.
If you are keen on a qualitative approach, you may want to interview stakeholders. Many companies disclose their main investors (and this information is sometimes available from different databases). Annual or integrated reports will also include a review of stakeholder engagement, including the identity of key stakeholders other than investors. A colleague and I recently published a paper on integrated reporting which provided some very interesting insights. Although you want to look at financial reporting quality, a similar method could tell you a great deal about what the users actually think about financial statements.
Best of luck
I believe that the financial reporting quality should be evaluated from the perspective of the exchange that they are cross-listed on. i.e. if on the US exchanges then according to their standards or if on UK exchanges then according to their standards. You need to use the benchmarks of that exchange,