Canadian Academic Accounting Association (CAAA)最新文献

{"title":"The Effect of Top Executive Turnover and Local Market Characteristics on Financial Reporting Risk","authors":"Kenneth L. Bills, Michelle Harding, Timothy A. Seidel, J. Truelson","doi":"10.2139/SSRN.3733649","DOIUrl":"https://doi.org/10.2139/SSRN.3733649","url":null,"abstract":"Upper echelon theory posits that defining, executing, and overseeing an organization’s strategy is a shared activity among top executives. Based upon this perspective, we expect turnover among the members of a firms’ top management team (TMT) other than the CEO and CFO to result in significant disruption to an organization’s operations, leading to greater uncertainty regarding its future performance, execution of operational strategies, and financial reporting decisions. In this study, we explore whether TMT turnover affects stakeholders’ perceptions of financial reporting risk. We find that TMT turnover is positively associated with audit fees which reflects auditors’ and audit committees’ assessments of financial reporting risk. Importantly, building upon labor economics literature, we find that TMT turnover’s effect on stakeholders’ perceptions of financial reporting risk is greater for companies headquartered where there are more limited local labor pools and companies that are market leaders in their local areas or industries. Further analyses suggest that increased audit fees offset deterioration in financial reporting quality as TMT turnover increases.","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121313009","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 Implicit Motives: Their Impact on Firm Performance","authors":"Kevin Veenstra","doi":"10.2139/ssrn.2258530","DOIUrl":"https://doi.org/10.2139/ssrn.2258530","url":null,"abstract":"\u0000 Using 4,838 annual CEO letters to shareholders for 397 S&P 500 companies from the period 1993 to 2010, this paper examines how CEO implicit motives impact a firm's financial performance. The results show that after controlling for firm and year fixed effects, financial performance increases with a CEO's need for power and decreases with a CEO's need for achievement and need for affiliation. Implicit motives play a significant role in the determination of what makes each CEO unique, and they have persistent effects, even three years after being initially measured. The practical significance of these findings is that firms should carefully consider implicit motives when selecting a CEO. Boards of directors would do well to consider CEO implicit motives as part of their corporate governance “best practices.” Institutional/retail investors may be able to use CEO letters as a useful source of information for making investment decisions.","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"95 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122534321","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":"Transition to Ind AS and Profit Reporting of the Initial Adopters","authors":"Agnishwar Basu, Dr. Debabrata Mitra","doi":"10.2139/ssrn.3469097","DOIUrl":"https://doi.org/10.2139/ssrn.3469097","url":null,"abstract":"Once investment and product market were opened up world-wide, it did not take much time to realise that differences in procedures of financial reporting in different parts of the world stood as a major barrier to readability of financial statements and consequently hampers expansion. As a uniform accounting and reporting framework, the IFRS was introduced with the objective to bring more transparency and for the better understanding of financial statements. However, unlike many other countries, India did not straightway adopt the IFRS, instead the Accounting Standard Board of the ICAI, in consultation with the Ministry of Corporate Affairs, opined for convergence with the IFRS by drafting a complete new set of Indian Accounting Standards, popularly known as Ind AS. The MCA released a phase-wise implementation plan and accordingly, the first phase of adoption took place in the financial year 2016-17. Nearly 350 companies adopted Ind AS for the year and also redrafted their comparative financial statements.<br>Reporting of Profit has been a major concern for corporates because of its stock-market implications. It has been seen that due to the transition to Ind AS, many figures including the Net Worth, the Working Capital, the Reserves have witnessed revisions. Further, the author of this paper in his earlier papers, observed that transition to Ind AS resulted in revaluation as well as reclassification of Balance Sheet items. Existing Literatures provide varied outcomes regarding the effect of IFRS over the financial reporting in different parts of the world. India’s case is unique and calls for evaluation as India is implanting a framework which is neither the old Indian GAAP, nor the IFRS. On other words, since the Ind AS differs from both, depending upon literatures that evaluated IFRS may not be appropriate.<br>In this paper, an attempt has been made to evaluate how the transition to Ind AS affected the profit reporting of the companies that adopted it during the first phase. Both the absolute profit figures and the relative return ratios have been taken into consideration. It is observed that unlike Balance Sheet items, the Reported Profit did not significantly change due to the transition. This is because the revenue items did not witness much of revaluation as a result of adoption of Ind AS. However, since Ind AS hit the Balance Sheets with reclassification of equity and liabilities, it affected the ROE ratios. This paper concludes that unlike Balance Sheet items, Reported Profit does not vary to a great extent due to the transition to Ind AS.<br>","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"197 3","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"113959160","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":"Pay for Security: Auditor Risk Response in China’s Anti Corruption Campaign","authors":"Antai Li, Yonggen Luo, Xinping Xia, Fan Yang","doi":"10.2139/ssrn.3293409","DOIUrl":"https://doi.org/10.2139/ssrn.3293409","url":null,"abstract":"We take China’s anti-corruption campaign as an exogenous shock to test the auditor risk response under political uncertainty. Using multiple DID approach, we use 16207 hand-collected observations from 2207 firms from Central Commission for Discipline Inspection (CCDI) showing that audit fee increases after CCDI visits the firms. The effect is more pronounced in SOE; in the firms audited by non-big four accounting firms; in the political cycling industries and in the firms that change auditors. Furthermore, we explore the effect is pronounced in the regions where the provincial officials are investigated and in the political cycle industry.<br><br>","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127179376","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 Institutional Logic Perspective: A Theoretical Framework in Explaining Management Accounting Practice Change","authors":"Taslima Nasreen, R. Baker","doi":"10.2139/ssrn.3318737","DOIUrl":"https://doi.org/10.2139/ssrn.3318737","url":null,"abstract":"Empirical studies suggest that management accounting practice is shaped and reshaped by both intra, inter, and extra organizational norms, values, and assumptions. There is still a dearth of study to explore how and at which stage various extra-organizational factors, such as societal-level and field-level institutions, filters organizational norms and practice and then blended into the organizational rules and routines formation process. This paper combines insights from the Old Institutional Economics (OIE) and Institutional Logics Perspectives (ILPs) of Neo-Institutional Sociology (NIS) of institutionalization with the emerging practice-based literature on organizational stability and change to offer a modified version of the institutional framework of management accounting change developed by Burns and Scapens (2000). This modified Burns and Scapens (2000) framework allows the future research in exploring the influence of the concurrent interplay mechanisms between the prevailing inter-institutional logic and dominant organizational logic in the process of management accounting practice stability and change.","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125821426","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 Auditors Talk About When They Talk About Public-Private Partnerships","authors":"Brent T. White","doi":"10.2139/SSRN.3318356","DOIUrl":"https://doi.org/10.2139/SSRN.3318356","url":null,"abstract":"This paper examines how a legislative auditor inserted the audit function into the accountability framework governing Public-Private Partnerships (PPP, 3P) in the education sector in New Brunswick, a small Canadian province. By examining two separate case studies of public-private partnerships separated by 13 years, this research offers a rare chance to track the evolution of the Auditor General’s audit practices, and, also, of the management accounting techniques employed inside the Government of New Brunswick. The findings of the Auditor General in both instances challenged the credibility of government’s Value-for-Money assertions for its public-private partnership arrangements. In doing so, the Auditor General cast serious doubt on the notion that all public-private partnerships are value-creating. This study also represents a somewhat rare academic study of the involvement of a Canadian legislative auditor in the analysis of a public-private partnership. Further, it outlines a number of areas for future study.","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121775955","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 Do Opportunistic Disclosures Impact Nonprofessional Investors’ Decision Making? Disinhibiting and Inhibiting Mechanisms","authors":"G. Entwistle, Hamilton Elkins, Regan N. Schmidt","doi":"10.2139/ssrn.3316389","DOIUrl":"https://doi.org/10.2139/ssrn.3316389","url":null,"abstract":"We report the results of an experiment where management discloses in the audited financial statements an opportunistic firm-specific capital structure. This disclosure, required under current IAS 1 rules, is subjective and susceptible to management bias. In our study, if used by nonprofessional investor participants, the disclosed capital structure will lead to higher firm values than would capital structures commonly determined from the firm’s balance sheet. Our results show that the opportunistic capital structure note disclosure influences nonprofessional investors’ judgment and decision making. Indirect effects provide evidence of causal reasons why this occurs. When provided the note disclosure, nonprofessional investors value the firm greater and believe it is a more attractive investment which function as disinhibiting mechanisms underlying stock purchasing decisions. In contrast, nonprofessional investors’ ability to recognize bias in the firm’s financial reporting operates as an inhibiting mechanism underlying stock purchasing decisions. We also find cautioning participants of management’s ability to distort the disclosure had no effect, differing from prior research. Our study adds to the disclosure literature and has important implications for investors, standard setters, and auditors as it raises questions of how to protect society from permitted opportunistic accounting disclosures.<br>","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123695103","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":"Effects of Auditing Fee on Auditing Quality: Evidence From a Natural Experiment in China","authors":"Huasheng Gao, Yunfei Qi, Chenxi Xu, J. Zhu","doi":"10.2139/ssrn.3300576","DOIUrl":"https://doi.org/10.2139/ssrn.3300576","url":null,"abstract":"This paper exploits a natural experiment to investigate the causal effects of the auditing fees on auditing quality: China recently imposed a minimum auditing fee requirement which forces some auditing firms to charge higher fees to their clients. We find a significant decrease in auditing quality for auditing firms affected by the rule, relative to those not affected. This effect is more pronounced when client firms are more price sensitive to auditing fees and when auditing firms face stronger competition in the auditing market. Our evidence supports the economic theory of auditor independence: a higher auditing fee impairs auditor independence and thus causes a decrease in auditing quality.","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121391450","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":"Factors Affecting Profitability: Evidence From Indonesia and Malaysia","authors":"Joshua Syukran Taruli, R. Panggabean","doi":"10.35313/IRWNS.V10I1.1454","DOIUrl":"https://doi.org/10.35313/IRWNS.V10I1.1454","url":null,"abstract":"This study was conducted to examine factors affecting the profitability of companies listed on Indonesia Stock Exchange and Bursa Malaysia. The factors tested were activity, liquidity and corporate governance. Methodology: The population of this study includes all property and real estate companies listed on Indonesia Stock Exchange and Bursa Malaysia within the period of 2013-2017. The research used purposive sampling method and obtained 37 sample companies. Multiple regression analysis method was used in this research. The results show that in Indonesian companies, activity and liquidity have significant effect on ROE, while Corporate Governance have no effect on Return on Equity. The results in Bursa Malaysia show that activity and Corporate Governance (Board Independence) have a positive and significant effect on Return on Equity. Meanwhile, Liquidity and Board Size have no effect on ROE. Value: This study developed previous research by adding corporate governance variables.","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133377135","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 to Develop a Peer-to-Peer Electronic Accounting System","authors":"Nesar Ahmad Noori","doi":"10.2139/ssrn.3301819","DOIUrl":"https://doi.org/10.2139/ssrn.3301819","url":null,"abstract":"This paper introduces a peer-to-peer electronic accounting system, as the current system sufferers from the inherent weakness of double-entry accounting, for example, a time gap problem between occurring and recording transactions, ignoring billions of individual’s access to essential financial information and the possibility of fraud and error. The most efficient solution to these problems has emerged to be a peer-to-peer electronic accounting system. It is an advanced system of double-entry accounting, but instead of concentrating on one party, it views and records transactions for both affected parties at the same time. It would enable electronic financial transactions between various parties, such as electronic payment, online credit transaction, foreign exchange, and securities exchange.","PeriodicalId":274826,"journal":{"name":"Canadian Academic Accounting Association (CAAA)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126128771","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}