Journal of Financial Reporting and Accounting最新文献

{"title":"Audit quality, firm value and audit fees: does audit tenure matter? Egyptian evidence","authors":"Saleh Aly Saleh Aly, Ahmed Diab, Samir Ibrahim Abdelazim","doi":"10.1108/jfra-04-2023-0203","DOIUrl":"https://doi.org/10.1108/jfra-04-2023-0203","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate the impact of audit fees on audit quality, the impact of audit quality on firm value and whether these effects are conditional on audit tenure by bringing evidence from an emerging market.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Different regression techniques are used, such as logistic regression, probit regression, ordinary least squares regression and fixed effects regression. The authors used panel data of 80 nonfinancial Egyptian-listed firms over 2016–2020.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The authors found a significant positive relationship between audit fees and audit quality and a significant positive relationship between audit quality and firm value. Furthermore, the authors found that the positive relationship between audit fees and audit quality is less pronounced for higher audit tenure firms. Finally, the authors also found that the positive relationship between audit quality and firm value is stronger for lower audit tenure firms.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this is the first study to bring evidence from an emerging African market about the joint association between audit tenure, audit fees, audit quality and firm value. It provides beneficial insights to regulators regarding the possibility and the benefits of improving audit quality, which is critically needed in contexts with weak governance systems.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"47 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138537742","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":"Measuring the integrated reporting quality in Europe: balanced scorecard perspectives","authors":"Omar Hassan Ali Nada, Zsuzsanna Győri","doi":"10.1108/jfra-03-2023-0134","DOIUrl":"https://doi.org/10.1108/jfra-03-2023-0134","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The aim of this study is to evaluate the adoption and quality of integrated reports in the European Union (EU).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The sample consists of 147 listed firms from the 18 EU countries during 2013–2020. This study creates a disclosure index – based on the balanced scorecard (BSC) that reflects the information content of integrated reports. The content analysis method is used to measure the integrated reporting quality (IRQ).</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings demonstrate that the IRQ increased across the study’s time frame, going from 49.3% in 2013 to 77% in 2020. Furthermore, financial disclosures still get the most attention in the integrated reporting (IR), followed by learning and growth perspective disclosures. In addition, businesses in the financial and industrial sectors rely more on integrated reports. However, the utility sector has the highest IRQ score. By country, Spain has the highest rate of IR adoption, followed by France. Other countries, such as Austria and Hungary, have only implemented IR by one company each.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study adds to the IR literature a new approach to measure IRQ by linking BSC with the IR framework. Empirically, businesses of any size can use this method to assess the degree of balance between the revealed financial and nonfinancial information in their reports.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Empirically, this study helps IR practitioners in determining how widely IR is used in Europe and in updating the database on the IR website. It helps them update and improve the IR framework by identifying the elements that have the least transparency and quality, investigating the causes and enhancing them.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this study is the first to examine the IRQ in EU countries by linking the BSC with IR elements. This is to split the elements into their own pillars, making it easier to track disclosure and evaluate the corporations’ interest in revealing these perspectives, on their own and collectively.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"76 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138543468","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":"CEO age, financial reporting quality, and the role of clawback provisions","authors":"Justin G. Davis, Miguel Garcia-Cestona","doi":"10.1108/jfra-04-2023-0176","DOIUrl":"https://doi.org/10.1108/jfra-04-2023-0176","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Motivated by rapidly increasing CEO age in the USA, the purpose of this study is to analyze the effect of CEO age on financial reporting quality and consider the moderating role of clawback provisions.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study uses a data set of 18,492 US firm-year observations from 2003 to 2019. Financial reporting quality is proxied with accruals-based and real activities earnings management measures, and with financial statement irregularities, measured by applying Benford’s law to financial statement line items. A number of sensitivity tests are conducted including the use of an instrumental variable.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results provide evidence that financial statement irregularities are more prevalent when CEOs are older, and they suggest a complex relation between CEO age and real activities earnings management. The results also suggest that the effect of CEO age on financial reporting quality is moderated by the presence of clawback provisions which became mandatory for US-listed firms in October 2022.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study is the first, to the best of the authors’ knowledge, to consider the effect of CEO age on financial statement irregularities and earnings management. This study has important implications for stakeholders evaluating the determinants of financial reporting quality, for boards of directors considering CEO age limitations and for policymakers considering mandating clawback provisions, which recently occurred in the USA.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"36 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138543439","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":"CEO busyness and investment efficiency: evidence from Indonesia","authors":"Iman Harymawan, Nadia Klarita Rahayu, Khairul Anuar Kamarudin, Wan Adibah Wan Ismail, Melinda Cahyaning Ratri","doi":"10.1108/jfra-02-2023-0083","DOIUrl":"https://doi.org/10.1108/jfra-02-2023-0083","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to explore the relationship between the level of busyness of Chief Executive Officers (CEOs) and investment efficiency in the context of emerging markets.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The sample includes firms listed on the Indonesia Stock Exchange from 2010 to 2018 using ordinary least square estimation.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings suggest that companies led by busy CEOs tend to exhibit lower investment efficiency, thus providing support for the hypothesis that as CEOs’ commitments increase, their ability to concentrate on the company diminishes. Furthermore, our analysis reveals that companies with busy CEOs tend to demonstrate a greater tendency to over-invest, potentially in response to market pressures to showcase strong performance. A more in-depth examination of the data shows that the negative impact of busy CEOs on investment efficiency is especially noticeable in firms lacking risk and management committees (RMC).</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>These findings have substantial practical implications for the structuring and composition of corporate boards. They highlight the significance of conducting comprehensive assessments to gain insights into the external commitments of incoming CEOs.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study underscores the importance of establishing RMC.</p><!--/ Abstract__block -->","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"5 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138543438","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":"Resilience and adaptation: examining the impact of the defense law on accounting and auditing professions during the COVID-19 pandemic in Jordan","authors":"Hala Zaidan, Omar Mowafi, Melina Al-Hasan, Abdulrahman Al Natour","doi":"10.1108/jfra-07-2023-0385","DOIUrl":"https://doi.org/10.1108/jfra-07-2023-0385","url":null,"abstract":"Purpose This study aims to examine the impact of Jordan’s defense law on the accounting and auditing professions during the COVID-19 pandemic. Design/methodology/approach Using a qualitative methodology with a philosophy of interpretivism, semi-structured interviews were conducted with seven audit partners and 14 auditors to explore the consequences of the defense law in Jordan. Thematic analysis was used to identify key themes and findings. Findings The study reveals significant impacts of the defense law on the accounting and auditing professions. Additional disclosures in financial statements were required, increasing the workload for accounting professionals. Auditors faced challenges related to non-compliance risks, fraud risks, management override risks in collecting sufficient evidence. Specific industries, such as restaurants, transportation and tourism, were particularly affected, posing higher audit risks. Originality/value This study contributes to the international debate on the impact of crisis-related laws on the audit profession. It offers insights into the challenges faced by auditors during crises and underscores the necessity of adapting auditing practices to new regulatory requirements. The study’s originality lies in its examination of the specific consequences of the defense law in Jordan, providing valuable implications for professionals worldwide and emphasizing ongoing discussions on crisis-related regulations in auditing practices. It underscores the need for adaptability, learning and innovation in addressing regulatory changes and managing audit risks in crisis situations. The findings provide valuable insights for professionals worldwide and emphasize ongoing discussions on crisis-related regulations in auditing practices.","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"25 23","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134991635","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":"Investor response to financial news in the digital transformation era: the impact of accounting disclosures and herding behavior as indirect effect","authors":"Shatha Mustafa Hussain, Amer Alaya","doi":"10.1108/jfra-05-2023-0287","DOIUrl":"https://doi.org/10.1108/jfra-05-2023-0287","url":null,"abstract":"Purpose This study aims to examine investors' reactions to bad financial news (IRBFN) based on complex financial accounting disclosures (CFAD) as well as how investors' herding behavior influences investor reactions in United Arab Emirates (UAE) project-based organizations (PBOs). Design/methodology/approach The primary data collection was furnished via online questionnaires, and 310 completed questionnaires were analyzed using structural equation modelling (SEM), moderation analysis, multiple regression simulations and path analysis. Findings The study shows that four out of the five CFAD dimensions observed – investors’ relations (IR), board and management structure, transparency disclosure and other disclosure channels – have a direct influence on investor's reactions to bad financial news, with the exception of “external auditing and audit service”. In addition, investor herding has a moderation impact on the relationship between CFAD and IRBFN. Research limitations/implications There is a possibility that the broad view of the results may be limited by the size of the research sample. The paper's findings should therefore be authenticated at an intercontinental level with the same conceptual framework in other nations. Practical implications The purpose of modeling stakeholders' decision-making process is to improve their decisions and to control their reactions that may negatively affect PBOs in the UAE. Originality/value This research contributes to planned behavior theory and agency theory in the UAE context, both of which are empirically tested.","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"16 25","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134991822","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 impact of partner perfectionism on audit quality: the mediating role of professional skepticism in the Egyptian context","authors":"Mohamed Zaki Balboula, Eman Elsayed Elfar","doi":"10.1108/jfra-06-2023-0296","DOIUrl":"https://doi.org/10.1108/jfra-06-2023-0296","url":null,"abstract":"Purpose This paper aims to investigate the relationship between audit partner perfectionism traits and audit quality in Egypt, emphasizing the mediating role of professional skepticism. Design/methodology/approach A mixed-methods approach was used, combining a questionnaire and scenario-based questions for audit partners with secondary data from audited financial statements. The relationships between study variables were tested using structural equation modeling. Findings Results denote a significant indirect effect between partner perfectionism traits and audit quality through their professional skepticism. Perfectionism has a significant positive impact on partner professional skepticism, and skepticism influences audit quality. Practical implications This study offers opportunities to enhance financial reporting quality, allowing investors to confidently allocate financial market resources. Audit firms can consider the personality traits of auditors in the selection process, team formation and designing training programs. Regulators can use these findings to consider the role of personality traits and attitudes in audit quality when developing regulations and quality assurance systems in Egypt. Originality/value To the best of the authors’ knowledge, no studies have examined the effect of partners’ perfectionism traits on professional skepticism and audit quality, especially in Egypt. By examining audit partners, who shape the tone at the top and are accountable for reputation, this study adds a novel dimension to understanding the impact of their qualities on audit outcomes. Moreover, combining survey and secondary data allows us to link these qualities with audit quality, objectively testing our hypotheses.","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"37 4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135091514","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":"Carbon emissions reduction and tax evasion behaviour: a trade-off between environmental goals and economic feasibility","authors":"Ahmed Yamen, Hounaida Mersni","doi":"10.1108/jfra-07-2023-0390","DOIUrl":"https://doi.org/10.1108/jfra-07-2023-0390","url":null,"abstract":"Purpose\u0000This paper aims to examine the impact of carbon emissions (carbon dioxide [CO2]) reduction on tax evasion behaviour.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses data from 200 countries from 2000 to 2017. The empirical analysis is based on various methodological tools, including ordinary least-squares model, fixed- and random-effects models. In addition, GMM and linear mixed model has been used for robustness purposes.\u0000\u0000\u0000Findings\u0000The results show that carbon emissions reduction significantly affects tax evasion behaviour; when carbon emissions decrease, tax evasion behaviour increases. This indicates that the reduction of CO2 emissions is linked to significant costs, placing a financial burden on companies and leading them to evade taxes to counterbalance these costs.\u0000\u0000\u0000Practical implications\u0000This study has important implications, as it highlights that the efforts made by countries to minimize CO2 emissions are associated with high costs and may lead to increased tax evasion, potentially contributing to countries’ budget deficits. The results provide valuable insights for policymakers and stakeholders to implement effective environmental and fiscal regulations that contribute to a sustainable and eco-friendly future. These regulations can help maintain a balance between improving economic growth and ensuring the protection of the environment.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first paper to test the impact of carbon emissions on tax evasion using macro-level data.","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"13 7","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135876122","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 impact of financial assets’ classification according to IFRS 9 on firm value: the case of MENA region’s banks","authors":"Khouloud Ben Ltaief, Hanen Moalla","doi":"10.1108/jfra-01-2023-0035","DOIUrl":"https://doi.org/10.1108/jfra-01-2023-0035","url":null,"abstract":"Purpose The purpose of this study is twofold. On the one hand, it studies the impact of IFRS 9 adoption on the firm value; and on the other hand, it investigates the impact of the classification of financial assets on the firm value. Design/methodology/approach The study covers a sample of 55 listed banks in the Middle Eastern and North African (MENA) region. Data is collected for three years (2017–2019). Findings The findings show that banks’ value is not impacted by IFRS 9 adoption but by financial assets’ classification. Firm value is positively affected by fair value through other comprehensive income assets, while it is negatively affected by amortized cost and fair value through profit or loss assets. The results of the additional analysis show consistent outcomes. Practical implications This research reveals important managerial implications. Priority should be given to the financial assets’ classification strategy following the adoption of IFRS 9 to boost the market valuation of banks. It may be useful for investors, managers and regulators in their decision-making. Originality/value This study enriches previous research as IFRS 9 is a new standard, and its adoption consequences need to be investigated. A few recent studies have focused on IFRS 9 as a whole or on other parts of IFRS 9, namely, the impairment regime and hedge accounting and concern developed contexts. However, this research adds to the knowledge of capital market studies by investigating the application of IFRS 9 in terms of classification in the MENA region.","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"13 3","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135876125","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":"Does CSR disclosure mediate the board characteristics-cost of equity capital nexus? Evidence from Jordanian services companies","authors":"Malik Muneer Abu Afifa, Isam Saleh, Maen Al-Zaghilat, Nawaf Thuneibat, Nha Minh Nguyen","doi":"10.1108/jfra-03-2023-0143","DOIUrl":"https://doi.org/10.1108/jfra-03-2023-0143","url":null,"abstract":"Purpose This study aims to investigate the direct nexus between board characteristics, corporate social responsibility (CSR) disclosure and the cost of equity capital (CEQ). This is done by using agency theory, stakeholder theory and signalling theory, followed by an investigation into the indirect mediation impact of CSR disclosure in the board characteristics-CEQ nexus. It intends to present new experimental evidence from Jordan’s developing economy. Design/methodology/approach The study’s target population was services companies registered on the Amman Stock Exchange (ASE) between 2012 and 2020. As a result, the population and sampling of this study are represented by all services companies for whom complete data are available over the period, with a total of 43 services companies yielding 387 company-year observations. Data for our study were obtained from their annual disclosures and the ASE’s database. Findings The main findings demonstrated that board size, board gender variety and the number of board sessions positively affect CSR disclosure significantly. In addition, three board characteristics (i.e. board size, board independence and board gender variety) significantly negatively affect CEQ. Besides, CSR disclosure significantly negatively affects CEQ and it fully mediates the relationship between two board characteristics (i.e. board size and board gender variety) and CEQ, whereas it partially mediates the nexus between board independence, CEO/Chairman duality and the number of board sessions of board characteristics and CEQ. Originality/value This study varies from earlier studies, in that it builds a new research model by looking at the mediating role of CSR disclosure in the nexus among board characteristics and the CEQ.","PeriodicalId":15826,"journal":{"name":"Journal of Financial Reporting and Accounting","volume":"115 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135220770","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}