Shareholder activism and accounting reporting complexity

IF 1.1 Q3 BUSINESS, FINANCE

Journal of Accounting Literature Pub Date : 2023-10-17 DOI:10.1108/jal-11-2022-0122

Mai Dao, Hongkang Xu

引用次数: 0

Abstract

Purpose In this paper the authors aim to examine whether shareholder activism is associated with accounting reporting complexity (ARC). Design/methodology/approach The authors employ ordinary least squares (OLS) and a sample of 19,530 firm-year observations (representing 3,377 unique firms) over the 2010–2019 period to test the prediction. Findings The authors find that firms with shareholder activism provide more complex accounting reporting. Further, both types of activism (including Concern & Dispute and Control & Discussion) are positively associated with ARC. The authors also find that the association between shareholder activism and ARC is more pronounced when the firms have a higher level of litigation risk and a higher proportion of institutional ownership. Collectively, the findings suggest that firms with shareholder activism may be under more pressure to disclose more accounting items, leading to more complex accounting reporting. Originality/value The study may be informative to regulators considering the costs and benefits of shareholder activism in financial reporting.

查看原文本刊更多论文

股东激进主义和会计报告的复杂性

在本文中，作者的目的是研究股东激进主义是否与会计报告复杂性(ARC)有关。设计/方法/方法作者采用普通最小二乘法(OLS)和2010-2019年期间19530家公司年观察结果的样本(代表3377家独特的公司)来检验预测。作者发现，股东激进主义的公司提供更复杂的会计报告。此外，两种行动主义(包括Concern &争议与控制&;讨论)与ARC呈正相关。作者还发现，当公司具有较高的诉讼风险水平和较高的机构所有权比例时，股东激进主义与ARC之间的关联更为明显。总的来说，研究结果表明，股东激进主义的公司可能面临更大的压力，需要披露更多的会计项目，从而导致更复杂的会计报告。原创性/价值该研究可能为监管机构考虑股东激进主义在财务报告中的成本和收益提供信息。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Accounting Literature BUSINESS, FINANCE-

CiteScore

6.50

自引率

0.00%

发文量

期刊介绍： The objective of the Journal is to publish papers that make a fundamental and substantial contribution to the understanding of accounting phenomena. To this end, the Journal intends to publish papers that (1) synthesize an area of research in a concise and rigorous manner to assist academics and others to gain knowledge and appreciation of diverse research areas or (2) present high quality, multi-method, original research on a broad range of topics relevant to accounting, auditing and taxation. Topical coverage is broad and inclusive covering virtually all aspects of accounting. Consistent with the historical mission of the Journal, it is expected that the lead article of each issue will be a synthesis article on an important research topic. Other manuscripts to be included in a given issue will be a mix of synthesis and original research papers. In addition to traditional research topics and methods, we actively solicit manuscripts of the including, but not limited to, the following: • meta-analyses • field studies • critiques of papers published in other journals • emerging developments in accounting theory • commentaries on current issues • innovative experimental research with strong grounding in cognitive, social or anthropological sciences • creative archival analyses using non-standard methodologies or data sources with strong grounding in various social sciences • book reviews • "idea" papers that don''t fit into other established categories.