Journal of Financial Reporting and Accounting最新文献

{"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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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":"An empirical examination of financial performance and distress profiles during COVID-19: the case of fishery and food production firms in Vietnam","authors":"B. Dao, G. Coenders, Phuong Hoai Lai, Trang Thu Dam, H. T. Trinh","doi":"10.1108/jfra-09-2023-0509","DOIUrl":"https://doi.org/10.1108/jfra-09-2023-0509","url":null,"abstract":"Purpose\u0000Financial ratios are often used to classify firms into different clusters of financial performance. This study aims to classify firms using financial ratios with advanced techniques and identify the transition matrix of firms moving clusters during the COVID-19 period.\u0000\u0000Design/methodology/approach\u0000This study uses compositional data (CoDa) analysis based on existing clustering methods with transformed data by weighted logarithms of financial ratios. The data include 66 listed firms in Vietnam’s food and beverage and fishery sectors over a three-year period from 2019 to 2021, including the COVID-19 period.\u0000\u0000Findings\u0000These firms can be classified into three clusters of distinctive characteristics, which can serve as benchmarks for solvency and profitability. The results also show the migration from one cluster to another during the COVID-19 pandemic, allowing for the calculation of the transition probability or the transition matrix.\u0000\u0000Practical implications\u0000The findings indicate three distinct clusters (good, average and below-average firm performance) that can help financial analysts, accountants, investors and other strategic decision-makers in making informed choices.\u0000\u0000Originality/value\u0000Clustering firms with their financial ratios often suffer from various limitations, such as ratio choices, skewed distributions, outliers and redundancy. This study is motivated by a weighted CoDa approach that addresses these issues. This method can be extended to classify firms in multiple sectors or other emerging markets.\u0000","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2024-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141098232","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 curvilinear relationship between governance structure and nonfinancial risk disclosure in Saudi Arabian firms: do ethical values matter?","authors":"Faizah Alsulami, Ahmed Chafai","doi":"10.1108/jfra-10-2023-0615","DOIUrl":"https://doi.org/10.1108/jfra-10-2023-0615","url":null,"abstract":"Purpose\u0000The purpose of this paper is to examine the possibility of a curvilinear relationship between governance structure and nonfinancial risk disclosure. This paper also examines the moderating role of ethical values on the governance structure and nonfinancial risk disclosure relationship.\u0000\u0000Design/methodology/approach\u0000The sample of this paper contains 71 nonfinancial firms listed on the Saudi Stock Exchange from 2013 to 2020 (568 firm-year observations). The authors use OLS regressions to test the hypotheses.\u0000\u0000Findings\u0000The authors find there is a U-shaped relationship between governance structure and nonfinancial risk disclosure. Moreover, they show that ethical values moderate the relationship between governance structure and nonfinancial risk disclosure.\u0000\u0000Research limitations/implications\u0000The findings of this study offer implications for policy makers and firm managers in Saudi Arabia which there should periodically assess and adapt their governance frameworks due to potential fluctuations in the optimal level resulting from internal or external disruptions.\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study in Saudi Arabia that provides new empirical evidence on the curvilinear relationship between governance structure and nonfinancial risk disclosure and the moderating role of ethical values on this relationship.\u0000","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2024-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141098149","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":"How female leadership and auditor affiliations shape audit fees: evidence from Egypt","authors":"Mohamed M. El-Dyasty, Ahmed A. Elamer","doi":"10.1108/jfra-12-2023-0740","DOIUrl":"https://doi.org/10.1108/jfra-12-2023-0740","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine how female directors on corporate boards and audit committees, and auditor affiliations (Big 4 versus Egyptian firms affiliated with foreign auditors), influence audit fees. This examination is driven by the global call for increased female representation in leadership roles and its potential implications for audit quality and financial transparency.\u0000\u0000\u0000Design/methodology/approach\u0000A sample of non-financial companies listed on the Egyptian Stock Exchange is used for the period 2011–2020. The authors used multivariate regression models, the Heckman two-stage and tokenism to support the analysis.\u0000\u0000\u0000Findings\u0000The results are threefold. First, this analysis reveals that female directors, whether on corporate boards or audit committees, are more likely to choose higher-quality audits in the form of high audit fees. Second, both Big 4 firms and Egyptian audit firms affiliated with foreign auditors are positively associated with audit fees and earn significant audit fee premiums. Third, a minor difference in audit fee premiums could be attributed to the existence of female directors.\u0000\u0000\u0000Research limitations/implications\u0000Future research may expand the analysis performed in this study by investigating the characteristics related to female directors (e.g. education, experience and age) on audit fees.\u0000\u0000\u0000Practical implications\u0000This study suggests insights for regulatory bodies, corporate decision-makers, auditors and corporate governance researchers. For instance, this study reveals that the Big 4 are not homogenous and provide different audit quality levels along with significant audit fee premiums.\u0000\u0000\u0000Originality/value\u0000This study extends and contributes to the growing literature on female representation in corporate leadership. First, this study adds to the limited research in Egypt by examining the effect of female board representation on audit quality. Second, this study adds to the extant literature on the gender of financial experts by demonstrating that female financial expert is more likely to demand high-quality audits. Finally, the results have significant implications for policymakers. For instance, this study reveals that the Big 4 are not homogenous and provide different audit quality levels along with significant audit fee premiums.\u0000","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2024-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141118278","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 board characteristics influence sustainability-related disclosures? Evidence from an emerging market","authors":"Wai Kee Ho, Nampuna Dolok Gultom, Susela Devi K. Suppiah, Jaspal Singh, Shenba Kanagasabapathy, H. A. Hashim","doi":"10.1108/jfra-07-2023-0419","DOIUrl":"https://doi.org/10.1108/jfra-07-2023-0419","url":null,"abstract":"Purpose\u0000This study aims to examine the association between board characteristics (namely, diligence, independence, gender diversity, size and expertise) and sustainability-related disclosures (SRD) in Malaysia.\u0000\u0000Design/methodology/approach\u0000A robust SRD index of 409 items is used to derive SRD scores for 56 Malaysian listed companies from 2018 to 2020, yielding 168 observations. Pooled ordinary least squares is applied to test the research hypotheses and model.\u0000\u0000Findings\u0000The authors find that board members in audit committees and female board members show a significant relationship with SRD, casting doubt on the widely held belief that other board characteristics (such as size, diligence, independence and expertise) independently impact SRD. However, the authors find that market influence (firm value) and firm size are associated with SRD.\u0000\u0000Practical implications\u0000SRD is at its nascent stage, and companies are cherry-picking on what to report, as evidenced in the SRD scores. Regulators and policymakers must recognize the complex interplay between various factors impacting SRD for the timely issuance of comprehensive rules for firms to comply. The regulators’ drive for more female board representation can be a boost to enhance the sustainability agenda for Malaysian listed companies. The SRD scoring template can be used on post-2020 data to investigate the sustainability maturity of Malaysian listed companies.\u0000\u0000Originality/value\u0000The authors evidence that SRD practice is in the early stages of maturity using the comprehensive SRD scoring template. Although the findings contradict prior studies, the authors believe this is driven by the robust SRD measure based on the latest Global Reporting Initiative and Bursa rules.\u0000","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2024-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140964679","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":null,"pages":null},"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":null,"pages":null},"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}

{"title":"How does innovation moderate the CSR impact on financial performance? An exploratory study and an empirical validation in the Tunisian context","authors":"Ines Ben Flah, Azhaar Lajmi, Zaineb Hlioui","doi":"10.1108/jfra-07-2023-0397","DOIUrl":"https://doi.org/10.1108/jfra-07-2023-0397","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to examine the effect of corporate social responsibility (CSR) on firm performance (FP) of companies listed on the Tunis Stock Exchange.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This paper reports on two empirical studies. The first was an exploratory qualitative study carried out on a sample of 30 Tunisian companies operating in different sectors. The second empirical study used a panel data regression analysis, to examine data from 46 companies listed on the Tunis Stock Exchange during the 2017 to 2021 period.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of the exploratory qualitative study pointed out the specificities of the Tunisian context as to the importance of CSR. The results highlighted also the importance of the 2018 CSR law in Tunisia, yet it drew attention to the non-implementation of its applying texts, meaning that CSR is not always enforced in the Tunisian context. Moreover, in this qualitative study, most companies confirmed that CSR is a key factor behind good governance practices. By studying the impact of CSR on various FP proxies, the results highlight that CSR has a positive and significant impact on FP measured by ROA as an accounting variable and stock returns as a market-measure variable. In addition, the authors confirm the moderating effect of innovation on the CSR and FP relationship. Indeed, innovation affects corporate FP differently. It hinders accounting-based FP while fostering the market-based one.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The study provides insights for managers into how CSR approaches can be used to maximize profits, improve its FP and reputation, while considering the corporate innovative capacities. CSR is a real performance lever for companies, a means of improving their economic, environmental and social efficiency. It enables companies to anticipate constraints and prevent risks, reduce certain operational costs, optimize resources, communicate a good image and stand out from the competition, gain easier access to innovation, strengthen their competitive edge, gain easier access to financing and strengthen their territorial and social roots.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The main contribution of this paper is the adoption of two empirical approaches. These two methods are complementary. The first is an exploratory qualitative approach aimed at better understanding the current state of CSR implementation by Tunisian companies. The second one is quantitative, a panel data regression analysis. Furthermore, the authors test the moderating effect of innovation on the studied link. To the best of the authors’ knowledge, this is the first paper that investigates the moderating effect of innovation on CSR FP in the Tunisian context. Finally, robustness tests were conducted to test the reliability of this study’s results.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2024-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140938355","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}