Review of Accounting and Finance最新文献

{"title":"The impact of investor protection on stock market volatility","authors":"João Silva, Lígia Febra, Magali Costa","doi":"10.1108/raf-09-2022-0244","DOIUrl":"https://doi.org/10.1108/raf-09-2022-0244","url":null,"abstract":"Purpose This study aims to advance knowledge on the direct impact of the investor’s protection level on the stock market volatility, that is, whether investor’s protection is an important stock market volatility determinant. Design/methodology/approach A panel data was estimated using a sample of 48 countries, from 2006 to 2018, totalizing 31,808 observations. To measure stock market volatility and the investor protection level, a generalized autoregressive conditional heteroskedasticity model and the World Bank Doing Business investor protection index were used, respectively. Findings The results evidence that the protection of investors’ rights reduces the stock market volatility. This result indicates that a high level of investor protection, which is the result of a better quality of laws and policies in place that protect investor’s rights, promotes the country as a “safe haven.” Practical implications The relationship that the authors intend to analyze becomes important, given that investor protection will give outsiders guarantees on the materialization of their investments. This study contributes important knowledge for investors and for the establishment of government policies as a way of attracting investment. Originality/value Although there have been a few studies addressing this relationship, to the knowledge, none of them directly analyses the influence of investor protection on the stock market volatility.","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135805061","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 CSR performance and reporting facilitate access to debt financing in emerging markets? The role of asset structure and firm performance","authors":"Ali Uyar, Ali Meftah Gerged, Cemil Kuzey, Abdullah S. Karaman","doi":"10.1108/raf-01-2023-0020","DOIUrl":"https://doi.org/10.1108/raf-01-2023-0020","url":null,"abstract":"Purpose This study aims to guide firms in emerging markets on whether corporate social responsibility (CSR) engagement facilitates their access to debt with the moderation of asset structure and firm performance. Considering the moderating effect analysis, this study explores the substitutive or complementary effect of these two contingencies on CSR-oriented firms in accessing debt financing. Design/methodology/approach Drawing on data collected for 16 emerging markets between 2008 and 2019, this study runs country–industry–year fixed-effects regression. Findings This study finds that CSR performance and reporting facilitate access to debt in emerging markets. However, CSR performance does not have an inverted U-shaped influence on firms’ access to debt financing. The moderation analysis of this study shows that asset tangibility has a negative moderating effect on the link between CSR engagements (i.e. both CSR performance and reporting) and access to debt, confirming a substitutive relationship between asset tangibility and CSR engagements in accessing debt. In contrast, firm performance is positively moderating the nexus between CSR engagement proxies and access to debt, which confirms a complementary type of relationship between firm performance and CSR engagements in accessing debt. Practical implications The empirical evidence of this study implies that creditors critically consider CSR engagements of firms in the loan-granting decision process. Similarly, the inverted U-shaped relationship between CSR and access to debt implies that there is an optimal level of CSR engagement creditors might consider in their decision. Likewise, the moderating effects analysis highlights that asset tangibility and firm performance are two conditions under which CSR performance and reporting are linked to access to debt. Originality/value Emerging countries are a different set of countries than developed ones; they have high growth rates and hence need financing, have a weaker institutional environment and have weaker stakeholder power. These particularities motivated the authors to conduct a separate study focusing on CSR and debt financing links drawing on a wide range of emerging countries. Thus, this study adds to the ongoing debate by examining the conditions under which CSR-oriented firms can access debt financing in emerging economies.","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136059084","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":"Is the Earnings Quality of Family Businesses Better Than Non-family Businesses?","authors":"Golrida Karyawati Purba, Audrey Natasha Surya, Prem Lal Joshi, Anshu Tyagi","doi":"10.35609/afr.2023.8.2(1)","DOIUrl":"https://doi.org/10.35609/afr.2023.8.2(1)","url":null,"abstract":"Objective - This study aims to prove whether the earnings quality of family businesses is better than non-family businesses to address two conflicting theories regarding the quality of family business earnings: agency theory and socioemotional wealth theory. Methodology/Technique –. This research uses a regression model to examine the influence of family business/non-family business characteristics on earnings quality. To obtain robust results, this research measures earnings quality using 5 measurement proxies, including measurements of available opportunities for earnings management, earnings management practices, earnings persistence, earnings restatement, and investor responsiveness to earnings quality. The screening sample was carried out on firms listed on the Indonesia Stock Exchange (IDX) for the period 2016–2020, resulting in 932 research observations. Findings - Overall, this research proves that FB earnings quality is better than NFB earnings quality. The results of this study extend the implementation of socioemotional wealth theory in explaining the characteristics of FB, in which the characteristics of FB and non-FB have an impact on earnings quality. Novelty - Financial statement analysts can utilize the results of this study in interpreting earnings quality based on the characteristics of FB and NFB. Type of Paper: Empirical JEL Classification: M41, M49. Keywords: Earnings Quality, Family Business (FB), Non-family Business (NFB), Socioemotional Wealth Theory Reference to this paper should be referred to as follows: Purba, G.K; Surya, A.N; Joshi, P.L; Tyagi, A. (2023). Is the Earnings Quality of Family Businesses Better Than Non-family Businesses?, Acc. Fin. Review, 8(2), 36 – 53. https://doi.org/10.35609/afr.2023.8.2(1)","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135343796","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":"On performance drivers of European Fintechs around venture capital: exploring the role of founders’ experience","authors":"Aymen Turki, Robert Rieg","doi":"10.1108/raf-05-2023-0153","DOIUrl":"https://doi.org/10.1108/raf-05-2023-0153","url":null,"abstract":"Purpose Many observers believe that industry experience of entrepreneurs drives successful new entrepreneurial firms. However, whenever it comes to disruptive digital ventures such as Financial Technologies (Fintechs), the picture may be different due to the cross-industry nature of digital firms. The purpose of this study is to disentangle the impacts of finance, banking and information technology (IT) experiences of founders on performance of European Fintechs around venture capital (VC) investment. Design/methodology/approach Based on a data set of 105 Fintechs from European countries, including UK, which are involved in 201 VC rounds between 2006 and 2019, the authors adopt a Bayesian quantile approach to link founders’ experience with two performance measures that identify market success (return on sales) and investment outcome (return on equity). Findings The findings indicate that finance and IT-specific experiences seem to matter more often than banking experience and that the extent of their impact depends on level and metric of performance. More specifically, Fintechs in Europe and UK are more able to achieve market success with both finance and IT experiences of their founders, but that does not necessarily transform into higher returns for investors. Originality/value This study provides new evidence that not all aspects of industry experience matter for digital ventures, as they must fit to a certain firm, cycle and industry. For Fintech, as the name says, finance and IT experiences matter.","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135689139","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":"Audit quality, value relevance, integrated reporting and the moderating role of business ethics: evidence from European ESG firms","authors":"Abir Hichri","doi":"10.1108/raf-03-2023-0073","DOIUrl":"https://doi.org/10.1108/raf-03-2023-0073","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the relationship between audit quality and value relevance and subsequently ascertain the moderating effect of business ethics on integrated reporting (IR)–value relevance.\u0000\u0000\u0000Design/methodology/approach\u0000This study applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries to analyse data of 510 companies belonging to the environmental, social and governance (ESG) index between 2010 and 2022.\u0000\u0000\u0000Findings\u0000A significant positive relationship was found between audit quality and value relevance. The results also suggest that IR has significant explanatory power on value relevance, and that business ethics moderate the relationship between IR and value relevance in European ESG firms.\u0000\u0000\u0000Practical implications\u0000Managers will see IR, business ethics and audit as a business strategy with incremental market value. In this regard, this study tried to provide insights and managerial solutions for managers of international companies to improve their strategy by drawing on the social, moral and business ethics approach. This finding will improve the informational relevance for investment opportunities, thus resulting in improved business performance.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this is the first study to investigate the moderating role of business ethics in the relationship between IR and value relevance. This paper fulfils a recognised need to study the influence of audit quality on investor decisions. Furthermore, the contribution of this study could be observed in the fact that the market value analysis differs between the contractual and the business ethics approaches. Also, including a moderating variable in the explanation and determination of value relevance remains somewhat underexplored.\u0000","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":2.4,"publicationDate":"2023-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45227485","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":"Audit quality, firm performance and risk: evidence from Greece","authors":"Gerasimos G. Rompotis, D. Balios","doi":"10.1108/raf-02-2023-0038","DOIUrl":"https://doi.org/10.1108/raf-02-2023-0038","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to accentuate whether audit quality or other variables matter for the performance of companies in Greece.\u0000\u0000\u0000Design/methodology/approach\u0000This study examines the effect of audit quality on firm performance using data of 75 companies listed in the Athens Exchange in Greece and covering the period 2018–2021. Panel data analysis is applied. The independent variables are audit quality, the size of firms, their age, leverage, liquidity and efficiency ratios. Seven alternative measures of performance are used, including, among others, return on assets and return on equity. Stock returns and risks are used too.\u0000\u0000\u0000Findings\u0000The results provide evidence of a positive relationship between financial performance and audit quality. The opposite is the case for stock returns and risk. On the other explanatory variables, age has a clearly negative relationship with financial performance. The opposite is the case for liquidity and efficiency. The size factor also has some sort of a positive correlation with financial performance, whereas the opposite correlation concerns the leverage ratio.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study to examine the relationship between audit quality and firm performance with data from Greece.\u0000","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":2.4,"publicationDate":"2023-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43681557","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":"Dividend policies and stock volatility-empirical evidence from Middle Eastern stock markets","authors":"A. Syed, H. Bawazir, Ibrahim Tawfeeq AlSidrah","doi":"10.1108/raf-03-2023-0069","DOIUrl":"https://doi.org/10.1108/raf-03-2023-0069","url":null,"abstract":"\u0000Purpose\u0000The study aims to explore the relation between dividend policy of any company and its stock volatility.\u0000\u0000\u0000Design/methodology/approach\u0000Companies listed on six GCC stock markets are used in the analysis and the data ranges from 2006 to 2020. Fixed effect and random effect panel data analysis is used to explore the association between stock volatility and the dividend policies.\u0000\u0000\u0000Findings\u0000A significant negative relation is observed between dividend payout and stock volatility. Also, significant negative relation between stock volatility and equity is found, whereas insignificant positive relation is observed between asset growth and stock volatility.\u0000\u0000\u0000Research limitations/implications\u0000The data of all listed companies on six GCC markets were not available.\u0000\u0000\u0000Practical implications\u0000The question of raising dividend or maintaining at the current level is of utmost importance for the managers of any company before making any investment decisions. Also, the investors look at the dividend announcements as a sort of signal about the future prospect of the company. A stable or fluctuating dividends may be preferred by the investors that ultimately changes the stock price of any company.\u0000\u0000\u0000Social implications\u0000The relationship between dividend policy and the volatility of stock price is explored for emerging GCC markets which is the major significance of this paper which will have many social impacts on various stakeholders of any company including investors, regulators and employees, etc.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, no study for GCC markets is done to establish a relation between stock volatility and the dividend policies which is needed by the academicians to further explore the behavior of these markets.\u0000","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":2.4,"publicationDate":"2023-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48658631","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":"Liquidity, interbank network topology and bank capital","authors":"Aref Mahdavi Ardekani","doi":"10.1108/raf-03-2023-0092","DOIUrl":"https://doi.org/10.1108/raf-03-2023-0092","url":null,"abstract":"\u0000Purpose\u0000While previous literature has emphasized the causal relationship from liquidity to capital, the impact of interbank network characteristics on this relationship remains unclear. By applying the interbank network simulation, this paper aims to examine whether the causal relationship between capital and liquidity is influenced by bank positions in the interbank network.\u0000\u0000\u0000Design/methodology/approach\u0000Using the sample of 506 commercial banks established in 28 European countries from 2001 to 2013, the author adopts the generalized method of moments simultaneous equations approach to investigate whether interbank network characteristics influence the causal relationship between bank capital and liquidity.\u0000\u0000\u0000Findings\u0000Drawing on a sample of commercial banks from 28 European countries, this study suggests that the interconnectedness of banks within interbank loan and deposit networks shapes their decisions to establish higher or lower regulatory capital ratios in the face of increased illiquidity. These findings support the implementation of minimum liquidity ratios alongside capital ratios, as advocated by the Basel Committee on Banking Regulation and Supervision. In addition, the paper underscores the importance of regulatory authorities considering the network characteristics of banks in their oversight and decision-making processes.\u0000\u0000\u0000Originality/value\u0000This paper makes a valuable contribution to the current body of research by examining the influence of interbank network characteristics on the relationship between a bank’s capital and liquidity. The findings provide insights that add to the ongoing discourse on regulatory frameworks and emphasize the necessity of customized approaches that consider the varied interbank network positions of banks.\u0000","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":2.4,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42687704","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":"On the foundations of firm climate risk exposure","authors":"M. H. Shahrour, Mohamed Arouri, R. Lemand","doi":"10.1108/raf-05-2023-0163","DOIUrl":"https://doi.org/10.1108/raf-05-2023-0163","url":null,"abstract":"\u0000Purpose\u0000This study aims to address gaps and limitations in the literature regarding firms’ exposure to climate risks. It reviews existing research, proposes new theoretical frameworks and provides directions for future studies.\u0000\u0000\u0000Design/methodology/approach\u0000A bibliometric and systematic approach is used to review the literature on firms’ climate risk exposure. The study examines current theoretical frameworks and suggests additional ones to enhance understanding.\u0000\u0000\u0000Findings\u0000This study contributes to the climate finance literature by offering a comprehensive overview of firms’ climate risk exposure and used theories. It emphasizes the urgent need to tackle climate change and the crucial role of firms in climate risk management. The study supports the advancement of sustainability policies and highlights the importance of understanding firms' climate risk exposure.\u0000\u0000\u0000Practical implications\u0000This study informs the development of climate risk management strategies within firms and supports the implementation of effective sustainability policies.\u0000\u0000\u0000Social implications\u0000Addressing climate risks can contribute to a more sustainable and resilient future for society as a whole.\u0000\u0000\u0000Originality/value\u0000This study provides a roadmap for future research by identifying gaps and limitations in the literature. It introduces new perspectives and theoretical frameworks, adding original insights to the field of study.\u0000","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":2.4,"publicationDate":"2023-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48912086","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 firms manage earnings after a downgrade in their credit rating?","authors":"Hardjo Koerniadi","doi":"10.1108/raf-10-2022-0299","DOIUrl":"https://doi.org/10.1108/raf-10-2022-0299","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine whether firms engage in earnings management immediately after experiencing a downgrade in their credit rating.\u0000\u0000\u0000Design/methodology/approach\u0000This paper uses fixed-effects regression models to examine real- and accrual-based earnings management after firms experience a downgrade in their credit rating.\u0000\u0000\u0000Findings\u0000Inconsistent with prior studies where firms are reported to opportunistically increase their earnings prior to a credit rating event, this paper finds that firms use income-decreasing earnings management after their ratings are downgraded. This paper also finds that firms downgraded to below the investment grade rating not only significantly reduce both abnormal cash flows and discretionary accruals but also report larger asset impairments, suggesting that these firms exploit the rating downgrade to employ a big bath accounting.\u0000\u0000\u0000Practical implications\u0000The results of this paper have practical implications for investors fixating on firm earnings after a credit rating downgrade, for shareholders of downgraded firms and regulators such as credit rating agencies.\u0000\u0000\u0000Originality/value\u0000The findings of this study contribute to the thin literature on earnings management after changes in credit rating by shedding lights on earnings management after a rating downgrade and complement the literature on the accounting choice of financially distressed firms. The empirical evidence documented in this study suggests that the occurrence of income-decreasing earnings management is not limited to only after a sovereign country rating downgrade as documented in a prior study but also occurs after a rating downgrade not associated with this event.\u0000","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":2.4,"publicationDate":"2023-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43276548","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}