Journal of Financial Reporting and Accounting最新文献

{"title":"Analyzing the achievement of the sustainable development goals (SDGs) in Saudi Arabia and the impact of the COVID-19 pandemic","authors":"Imene Guermazi, Mohamed Wajdi Gharbi","doi":"10.1108/jfra-09-2023-0579","DOIUrl":"https://doi.org/10.1108/jfra-09-2023-0579","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to investigate the relationship between the Kingdom of Saudi Arabia (KSA)’s expenses in the health and social fields and the achievement of sustainable development goals (SDGs) 1 (elimination of poverty) and 3 (good health and well-being). This paper also examines the effects of the COVID-19 pandemic on these expenses and goals.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This paper observes the public expenses and the targets of the SDGs of KSA during 1981–2022. This paper tests the stationarity of the variables and then uses the ordinary least square model or the autoregressive distributed lag model, depending on the unit root test results. This paper also observes the change in target goals between the two years of the pandemic and the two preceding years.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results show the influence of social expenditure on the progress of SDG-1, whereas the impact of health expenditure on SDG-3 is not significant. This paper also proves the impact of the pandemic on public expenses and social SDGs.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>This paper attracts the attention of policymakers to the importance of assessing their SDG initiatives and the consequent outcomes. Additionally, this paper documents the initiatives for sustainable development in KSA, an important emerging country. Given the universal nature of the SDGs and the importance of KSA as an economic power with a large youth human capital potential, the findings offer insights applicable beyond KSA and provide valuable lessons for governments worldwide regarding the optimization of public spending for SDG achievement. Moreover, monitoring SDG advancement in this important country helps assess the progress of the the United Nations (UN)’s 2030 Agenda for Sustainable Development. Therefore, This paper helps boost the completion of this agenda and contributes to the bottom-up approach of the UN 2030 Vision, implicating all categories of stakeholders, including the academic community.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This paper furthers the literature on SDG achievement by analyzing the relationship between public expenses and SDGs. This paper contributes to the debate concerning the best methodology suitable for SDG valuation and adds to the few studies using autoregressive tests. Moreover, this paper enriches the scarce studies dealing with emerging countries and reviews the assessment of SDGs in KSA. Additionally, this paper investigates the effect of the COVID-19 pandemic on the assigned resources for SDGs and, consequently, on the related indicator scores.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"86 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141526266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A study of big bath practices in the Egyptian capital market: an emphasis on CEO turnover and origin","authors":"Dina Hassouna, Engy El Hawary, Rasha ElBolok","doi":"10.1108/jfra-10-2023-0637","DOIUrl":"https://doi.org/10.1108/jfra-10-2023-0637","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate how major big bath accounting practices and CEO turnover in Egypt relate to one another, as well as the first to use the CEO’s origin as a moderating factor.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study uses 10-year longitudinal data from 2012 to 2021 and 290 firm-year observations from Egypt’s listed nonfinancial firms that witnessed CEO turnover to identify the significant big bath accounting practices in Egyptian businesses after the Egyptian revolution and the COVID-19 pandemic. Using fixed and random effect models, the authors investigate the impact of CEO turnover on company earnings during the first year of a newly appointed CEO as an indicator of big bath practices after controlling CEO gender, experience, firm size, leverage, return on assets, return on equity and industry. The hypotheses were investigated using static panel data.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results show the presence of big bath practices in the Egyptian market. Furthermore, big bath accounting practices are positively correlated with CEO turnover. Moreover, the results indicate that big bath accounting practices are only endured when external CEOs are employed, rather than internal ones.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The sample size and availability of data are the main research limitations. In addition, this study only examined CEO turnover and CEO origin as moderators in big bath accounting. Thus, future research may consider other CEO characteristics and political factors associated with big bath practices.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The findings from this study offer valuable insights to investors and regulators for effective decision-making and governance practices within the Egyptian capital market, while also contributing to a more informed approach to emerging markets on a global scale.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The findings contribute to the big-bath and CEO turnover and origin literature by showing a lower ceiling for earnings manipulation and using Egypt as a case study due to its unique institutional environment.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"39 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141526268","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Boardroom dynamics: the impact of board gender diversity on discretionary dividend policy in US REITs","authors":"Ibrahim Yousef, Saad Zighan, Doaa Aly, Khaled Hussainey","doi":"10.1108/jfra-09-2023-0578","DOIUrl":"https://doi.org/10.1108/jfra-09-2023-0578","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to address a notable gap in the existing literature by exploring the relationship between gender diversity and dividend policy within the context of US Real Estate Investment Trusts (REITs).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors use a substantial data set comprising 1,398 firm-year observations across 209 US REIT companies from 2011 to 2021 to address the research aims. Fixed effects models and generalized least squares regression methods are used in the analysis.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results demonstrate a significant positive association between board gender diversity and higher dividend payouts among US REITs. This relationship holds after controlling for corporate governance and other firm-level factors. The findings have strong implications that the presence of women on REIT boards contributes to a greater propensity for discretionary dividend increases in the USA.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This research contributes to the literature by empirically examining female directors’ role in influencing US REITs’ dividend policies, an area lacking adequate prior scholarship. The paper also considers the unique regulatory environment of REITs, highlighting the importance of the study for externally financed firms.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"44 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141507045","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"What are the key drivers of Fraud reporting in Takaful insurance? Evidence from count data models","authors":"Wael Hemrit, Ines Belgacem","doi":"10.1108/jfra-10-2023-0632","DOIUrl":"https://doi.org/10.1108/jfra-10-2023-0632","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims at investigating the effect of corporate governance attributes on the Fraud disclosure of Takaful insurance companies in Saudi Arabia from 2014 to 2022.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study uses a self-constructed disclosure index to quantify the level of fraud information using content analysis. The count regression (Poisson and negative binomial) models in panel data modeling are used to check the interdependence relationship between the Fraud disclosure and the corporate governance structure of 26 Takaful insurers.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings confirm the negative effect of ownership structure and the board size on the Fraud disclosure. However, the high proportion of independent board members, the audit board committee and the size of the risk board committee positively affect the extent of Fraud disclosure. Finally, this study provide evidence that large size of Shariah board is associated with a lower level of voluntary Fraud disclosure.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>Both economics-based theories and social exchange theory provide a better basis upon which to understand mechanisms by which board of directors in Takaful insurance provides external stakeholders with valuable information about corporate fraud.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>It seems important to equip audit and Shariah board committee with the tools to give them an operational content that focus systematically on the “tone at the top” in investigating fraud, including disclosure and discipline.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Corporate governance is rapidly changing in Saudi Arabia and it is unclear whether adopting a corporate governance practices in financial institutions is appropriate for Islamic insurance companies.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"89 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141532084","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Advancements and forecasts of digital taxation information systems usage and its impact on tax compliance: does trust and awareness make difference?","authors":"Manaf Al-Okaily","doi":"10.1108/jfra-09-2023-0567","DOIUrl":"https://doi.org/10.1108/jfra-09-2023-0567","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The main purpose of the current study was to develop a new research model in the hope of providing a further understanding of Digital Taxation Information Systems (DTIS) usage and its impact on tax compliance by investigating the mediating role of trust in e-government services (TIE) and the moderating role of awareness (AW) toward these systems.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>A quantitative research method approach with Partial Least Squares-Structural Equation Modelling (PLS-SEM) was employed to analyze the data collected.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results indicated that DTIS usage is influenced by perceived usefulness (PU), perceived ease of use (PEU), attitude (ATT), knowledge (KN), subjective norm (SN), AW and TIE. Contrary to what is expected, AW does not moderate the association between SN and DTIS usage. Eventually, the results also revealed that TIE has mediated the association between trust in government (TIG) and DTIS usage.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study provides thought-provoking empirical pieces of evidence about understanding the situation of DTIS usage and its impact on tax compliance among academic professors in Jordan. Furthermore, the study outcomes and discussion presented will help the Jordanian government improve and comprehensively formulate strategies to increase the tax compliance procedure.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"2016 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141168227","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Enhancing audit quality in non-Big 4 firms: the role of remote auditing and audit staff capabilities","authors":"Mohannad Obeid Al Shbail, Zaid Jaradat, Ahmad Al-Hawamleh, Allam Hamdan, Abdalmuttaleb M.A. Musleh Alsartawi","doi":"10.1108/jfra-11-2023-0653","DOIUrl":"https://doi.org/10.1108/jfra-11-2023-0653","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this study is to explore the impact of remote auditing on audit quality in non-Big 4 firms in Jordan. It also examines the role of auditors’ capabilities in this relationship, emphasizing their importance in implementing this technology effectively.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The perspectives of non-Big 4 audit firms regarding the influence of remote auditing on audit quality were gathered through the administration of a comprehensive questionnaire.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>This study demonstrates that remote auditing can enhance audit quality in non-Big 4 firms. The strength of this effect is bolstered by the auditor’s technical knowledge, communication skills and professional skepticism.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Remote auditing is a promising alternative to traditional methods for non-Big 4 firms, with significant implications. Effective remote audits require technical knowledge, communication skills and professional skepticism. To succeed, firms must invest in training programs that equip auditors with the necessary remote auditing techniques.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This groundbreaking study investigates the effects of remote auditing on audit quality in Jordanian non-Big 4 firms and examines the influence of auditors’ capabilities. Results show that auditors’ capabilities enhance the positive impact of remote auditing on audit quality.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"56 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141168379","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do perfectionism types matter? Auditors' ability to detect fraud and the moderating role of time budget pressure: evidence from Egypt","authors":"Mohamed Zaki Balboula, Eman Elsayed Elfar","doi":"10.1108/jfra-11-2023-0657","DOIUrl":"https://doi.org/10.1108/jfra-11-2023-0657","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine how auditors' perfectionism types and time budget pressure (TBP) influence fraud detection in Egypt.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>We utilize a mixed-methods approach, combining questionnaires with an experimental case study in a within-subjects quasi-experimental design. Based on Almost Perfect Scale-Revised (APS-R), perfectionism traits were categorized using cluster analysis into adaptive, maladaptive, and non-perfectionism. Auditors from Egyptian firms performed fraud-related tasks with TBP manipulated.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Auditors' perfectionism types significantly influence fraud detection capabilities. Adaptive perfectionists demonstrated higher relevance in identifying fraud factors and excelled in accurately assessing fraud risks and audit procedures planning. Conversely, maladaptive perfectionists identified more but less relevant factors. TBP notably impacted maladaptive and non-perfectionist auditors' planning quality, unlike adaptive perfectionists, who showed resilience.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Findings provide insights to audit firms to bolster audit quality through team formations and task assignments, harnessing the strengths of adaptive and maladaptive perfectionists. Regulatory entities are positioned to integrate safeguards that recognize auditor capabilities and vulnerabilities, particularly under TBP. Considering psychological assessments in auditor selection and development assures alignment of traits with audit tasks, enhancing audit quality.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study breaks new ground in the effects of auditor perfectionism on fraud detection, considering situational factors like TBP in emerging markets. Through a mixed-methods approach and cluster analysis, it reveals how different perfectionism traits influence audit effectiveness, offering insights not previously considered in auditing literature and suggesting practical applications for enhancing fraud detection in similar contexts.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"21 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141153073","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Integrated reporting adoption in SMEs: incentives and disincentives","authors":"Omar Hassan Ali Nada, Zsuzsanna Győri","doi":"10.1108/jfra-02-2024-0082","DOIUrl":"https://doi.org/10.1108/jfra-02-2024-0082","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate the drivers and challenges of integrated reporting (IR) adoption in the Hungarian SME context.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The study uses qualitative methods to conduct an in-depth analysis of small and medium enterprises’ (SMEs) drivers and challenges of IR adoption through semi-structured interviews. Further, the results of the interview are supported by content analysis.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The research highlighted the drivers for IR adoption, including growing the company’s customer base, attracting new investors, boosting competitiveness and increasing the company’s market value by improving the long-, medium- and short-term value creation. Nonetheless, the organizational transformation required to implement IR, a lack of qualified human resources, weak administrative control and poor documentation all serve as impediments to Hungarian SMEs implementing IR. Consequently, the current IR framework needs further clarification and simplification to be practical for SMEs. Integrated thinking, value creation, materiality and stakeholder engagement are the concepts that have been identified as being unclear or inapplicable for SMEs.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Furthermore, the practical implications for standard-setters, regulators and companies may help in the future in mitigating barriers, pushing companies to learn more about the benefits and risks of adopting IR.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The study is one of the few that examines the drivers and challenges of IR adoption in SMEs and responds to several academic requests for IR research on the reasons why SMEs do not participate in IR adoption. Also, the study compiles and evaluates the previous literature’s drivers and challenges for IR adoption. Furthermore, the practical implications for standard-setters, regulators and companies may help in the future in mitigating barriers, pushing companies to learn more about the benefits and risks of adopting IR.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"47 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141152852","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Unveiling universities’ sustainability disclosure antecedents: an empirical analysis during the COVID-19 pandemic","authors":"Giuseppe Nicolò, Nicola Raimo, Filippo Vitolla, Natalia Aversano","doi":"10.1108/jfra-10-2023-0607","DOIUrl":"https://doi.org/10.1108/jfra-10-2023-0607","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate the level of online sustainability disclosure provided by international universities during the COVID-19 pandemic. The ultimate goal is to identify the factors influencing the amount of sustainability information these universities disclose through their websites.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study conducts a manual content analysis to measure the extent to which a sample of 100 international universities disseminate information on sustainability and COVID-19 issues via the web. A multiple regression analysis is performed to test the research hypotheses.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings confirm that universities worldwide leverage the potential of websites to convey sustainability information beneficial for stakeholders and society. Moreover, while board gender diversity positively affects the level of online sustainability disclosure, board size exerts a negative effect. Furthermore, university size, internet visibility and ranking position have no significant impact on the amount of online sustainability information provided by international universities.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this is the first study that provides insight into the possible determinants of universities’ online sustainability reporting during COVID-19. This study extends prior research mainly conducted in single countries by providing data on the sustainability disclosure level of universities in different geographical regions. Empirical findings also support policymakers’ global action in the past decade to increase the role of women in leadership and governing positions.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"13 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140938364","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The effect of off-balance sheet activities on credit risk of African banks","authors":"Mohamed Rochdi Keffala","doi":"10.1108/jfra-07-2023-0358","DOIUrl":"https://doi.org/10.1108/jfra-07-2023-0358","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this study is to analyze the effect of off-balance sheet activities on the credit risk of African banks.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The theory about the relationship between off-balance sheet activities and bank risk was used to construct a conceptual model of the effect of off-balance sheet on credit risk in an African context. The accounting approach is chosen by collecting accounting data extracted from the annual reports of 24 private and conventional African banks during the period 2010–2019. Both statistical and empirical studies are conducted. The statistical study aims to give a description of sample banks in terms of off-balance sheet activities and key financial indicators. The empirical study has the goal of exploring the correlations between, on the one hand, credit risk and, on the other hand, off-balance sheet ratio and control variables (bank- and country-specific variables). This study is based on dynamic panels using the two-step generalized method of moments technique to estimate regressions between credit risk and the explanatory variables.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The statistical study reveals that sample banks use moderately off-balance sheet activities; most of them use essentially guarantees and letters of credit, have satisfactory financial indicators and are slightly exposed to credit risk. The empirical results from the two-step generalized method of moments technique disclose that off-balance sheet activities have an intensifying effect on the credit risk of African banks. However, the increasing effect can be minimized when African banks use moderately off-balance sheet activities.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Using judiciously off-balance sheet activities does not exacerbate the exposure of African banks to credit risk. Therefore, managers of African banks are recommended to maintain a moderate level of off-balance sheet activities, especially guarantees and letters of credit.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The findings of this study eliminate the opacity about the effect of off-balance sheet activities on credit risk. Moreover, this study fulfills the huge gap in the related literature by completing the scarcity of recent studies, considering all items of the off-balance sheet, focusing on the African context, describing off-balance sheet activities and financial indicators of sample banks due to a statistical study and estimating regressions of dynamic panels between credit risk and both bank-specific and country-specific variables due to a two-step generalized method of moments technique.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"21 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140938470","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}