Journal of Corporate Accounting and Finance最新文献

{"title":"Uncertain tone and SEO underpricing: Do financial constraints matter?","authors":"Anh Ngo,&nbsp;Thomas Lewis,&nbsp;Carl McGowan","doi":"10.1002/jcaf.22709","DOIUrl":"10.1002/jcaf.22709","url":null,"abstract":"<p>In this study, we conduct several empirical tests to explore the role of financial constraints in predicting the underpricing of seasoned equity offerings (SEO underpricing) through the uncertain tone in issuing firms' filings. We show that investors can infer the firm quality or fundamental value when facing information uncertainty or value ambiguity for only firms in financially distressed groups. Our findings are consistent with prior studies using textual analysis that postulate the varying predictive power of different textual tones for the value of new seasoned equity offerings and, thus, SEO underpricing.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"277-288"},"PeriodicalIF":0.9,"publicationDate":"2024-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140251723","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":"Are performance explanations credible or strategic? Evidence from a large sample of MD&As1","authors":"Sabrina Gong,&nbsp;Yamin Hao,&nbsp;Xiaojia Wang","doi":"10.1002/jcaf.22707","DOIUrl":"10.1002/jcaf.22707","url":null,"abstract":"<p>This paper examines managers’ explanations of firm performance (i.e., management attributions) in a large sample of the Management's Discussion and Analysis (MD&amp;A) section of annual reports. We find that managers of poorly performing firms tend to attribute firm performance to external factors. We further propose a prediction model to decompose management external attributions into a credible part and a strategic part and find that both components are negatively related to firm performance. This evidence suggests that management external attributions partially reflect the actual impact of external conditions on firm performance and are not entirely subject to managerial opportunism. Additionally, we find that investors react more strongly to firm performance when managers provide credible external attributions, especially for firms without a bad reputation for strategic external attributions. We also show that executive compensation is less sensitive to firm performance when managers make more strategic external attributions.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"241-258"},"PeriodicalIF":0.9,"publicationDate":"2024-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/jcaf.22707","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140077681","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Legal origin and bank lending behavior in developing countries: The mediating role of revenue diversification","authors":"Simon Kamau,&nbsp;Beatrice D. Simo-Kengne","doi":"10.1002/jcaf.22705","DOIUrl":"https://doi.org/10.1002/jcaf.22705","url":null,"abstract":"<p>This paper explores the relationship between legal origin, revenue diversification, and bank lending behavior. The analysis is based on a sample of 2590 commercial banks operating in 139 developing countries from 2004 to 2022. Using various panel data estimation techniques and alternative measures of bank lending behavior, the results indicate that banks in common law countries experience lower levels of loan growth compared to their counterparts in civil law countries. The study results also show that revenue diversification indirectly alleviates the negative effect of loan growth in banks originating from a common law legal origin. Notably, this effect is not observed in banks within low-income and African countries, highlighting the importance of policies aimed at enhancing institutional capacity within their legal and judicial systems. Overall, the results of this study underscore the significance of legal origins in shaping the lending dynamics of banks in developing countries.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"213-229"},"PeriodicalIF":0.9,"publicationDate":"2024-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141583868","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 presidential elections on accounting conservatism: Evidence from South Korea","authors":"Sang Ho Kim,&nbsp;Yohan An","doi":"10.1002/jcaf.22708","DOIUrl":"10.1002/jcaf.22708","url":null,"abstract":"<p>This study examines the effects of presidential elections (PEs) on firms’ accounting conservatism in Korea. The Korean president exerts great influence on the government's financial, monetary, subsidiary, and regulatory policies. At the same time, however, the Korean constitution prohibits the re-election of the incumbent president. This simultaneously strong and fragile presidential system creates unique political uncertainty, which deteriorates the information gap between firms’ insiders and outsiders. According to the efficient contracting channel, accounting conservatism is expected to relieve information asymmetry by recognizing the economic losses faster than economic gains. But we posit that the effectiveness of accounting conservatism depends on the information environment within which they operate. If the information environment facilitates a compensation system for an increase in accounting conservatism under high uncertainty, managers may prefer to expand conservative accounting practices. However, if there is no such incentive mechanism, managers may opt to suspend accounting conservatism because the cost of revealing bad news increases during periods of uncertainty. Test results show that PEs encourage managers to delay rather than expedite the timely recognition of economic losses. This negative effect becomes more pronounced in firms with higher reliance on government contracts than firms with lower such reliance. We also find that Korean chaebol-affiliated firms are likely to increase accounting conservatism during PEs. In general, US-based studies support the positive relationship between information asymmetry and accounting conservatism, while this study demonstrates that this relationship can be reverse depending on the institutional environment.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"259-276"},"PeriodicalIF":0.9,"publicationDate":"2024-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140422320","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":"Impact of lease versus buy decisions on government tax revenues: An in-depth analysis","authors":"Guan Jun Wang","doi":"10.1002/jcaf.22706","DOIUrl":"10.1002/jcaf.22706","url":null,"abstract":"<p>Numerous managerial and corporate finance perspectives suggest mutual tax advantages when depreciation is transferred from an asset's user to a lessor, creating a perceived loss of tax revenue for the government. This study delves deeper into the lease versus buy decision and its ramifications on government tax revenue. It goes beyond tax rate discrepancies, exploring how factors like lessor-lessee borrowing rate differences, asset lifespan, depreciation, and lease payment schedules impact tax revenues, both analytically and numerically. The paper establishes a strong theoretical foundation, emphasizing positive-sum games involving lessees, lessors, and governments in individual deals. Government benefits from leasing vary across asset classes, market structures, depreciation timelines, credit quality, tax credits, and business cycles. The proposal is that the aggregate impact at the federal level could be positive, negative, or neutral across all leasing deals. These insights surpass conventional knowledge, offering valuable perspectives for finance and accounting educators, students, practitioners, and policymakers.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"230-240"},"PeriodicalIF":0.9,"publicationDate":"2024-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140420638","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":"Risk disclosures in annual reports and firms’ default risk","authors":"Shunyao Jin,&nbsp;Hei-Wai Lee,&nbsp;Yan Alice Xie","doi":"10.1002/jcaf.22704","DOIUrl":"10.1002/jcaf.22704","url":null,"abstract":"<p>This study examines how the length, content, and tone attributes of risk disclosures in a firm's 10-K annual report relate to its default risk in the subsequent fiscal year. We find a significant association between specific attributes of risk disclosures and the default risk in the subsequent period. Using the 2008 financial crisis as a shock to firms’ risk environment, we further find that the documented association is more pronounced in the post-financial crisis era. Our cross-sectional analyses reveal that the documented relationship is particularly prominent for firms undergoing substantial shifts in default risk, facing significant financial distress, operating in industries with lower litigation risk, or subject to heightened scrutiny from external monitors. Overall, our findings suggest that risk disclosures in firms’ annual reports offer valuable insights for investors assessing financial distress and default risk.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"192-212"},"PeriodicalIF":0.9,"publicationDate":"2024-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/jcaf.22704","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140431487","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Cross-border regulatory cooperation and corporate tax avoidance","authors":"Miao Yu,&nbsp;Chih-Chieh Hsieh,&nbsp;Albert Tsang","doi":"10.1002/jcaf.22702","DOIUrl":"10.1002/jcaf.22702","url":null,"abstract":"<p>We examine whether improved cross-border regulatory cooperation and information exchange affect corporate tax avoidance. We find that the improvement in the regulators’ capacity to access to information in foreign countries through their entrance into the Multilateral Memorandum of Understanding (MMoU) effectively reduces corporate tax avoidance. Moreover, the effect of the MMoU on corporate tax avoidance is stronger for firms that are less income mobile and have no significant subsidiaries in tax havens. Collectively, these findings support the conjecture that the strengthened cross-border regulatory cooperation and information exchange provided by the MMoU creates a positive externality in reducing corporate tax avoidance behavior.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"157-179"},"PeriodicalIF":0.9,"publicationDate":"2024-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140438309","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":"Exploring cash refund capital reduction in Taiwan: Empirical insights from bull and bear markets","authors":"Yu-Sin Wei,&nbsp;Chih-Ping Yu,&nbsp;Han Hou","doi":"10.1002/jcaf.22703","DOIUrl":"10.1002/jcaf.22703","url":null,"abstract":"<p>The paper explores the concept of cash refund capital reductions (CRCR) in the context of firms listed on the Taiwan Stock Exchange Corporation (TSEC) and GreTai Securities Market (GTSM). CRCR is a distinct and increasingly vital financial tool used by these firms. Taiwan stands alone in adopting CRCR, making it a challenge to establish both a theoretical framework and gather empirical evidence on this subject. In this study, we examined 205 CRCR announcements made between 2002 and 2022, delving into their impact on both bull and bear markets. Our investigation reveals that the market responses to CRCR announcements were more significant during bull markets compared to bear markets. Additionally, we delve into the crucial factors influencing market responses in these varying market conditions. The findings underscore the importance for firms announcing CRCR to carefully consider the prevailing market conditions.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"180-191"},"PeriodicalIF":0.9,"publicationDate":"2024-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140438610","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":"Corporate commitments to biodiversity disclosure and sustainable board. Do NGO directors on board matter? Recent evidence from S&P 500 companies","authors":"Mohamed Toukabri,&nbsp;Abdullah Mohammed Alwadai","doi":"10.1002/jcaf.22699","DOIUrl":"10.1002/jcaf.22699","url":null,"abstract":"<p>This study analyzes the impact of the characteristics of sustainable boards and NGO directors on biodiversity disclosures. This research uses data from 481 US companies that are taken from Standard &amp; Poor's 500 (S&amp;P), ASSET4, for the period 2009–2020 (5616 company-year observations). Data on NGO directors is provided by MSCI's GMI Rankings database. A panel data analysis with fixed effects models is used to estimate the results. The results also indicate that a sustainable board structure (proxied by Chief Sustainability Officers (CSOs) and Sustainability-related executive compensation) is positively correlated with biodiversity disclosure. Our empirical results also show that the moderating role of NGO directors has a greater interaction effect with the characteristics of sustainable boards and biodiversity information disclosure initiatives. The results are also consistent for exploitative and nonexploitative industries, as well as for the pre- and post SDG (14–15) of the agenda 2030. In addition, the framework of SDG (14-15) and the strategic plan of partnership with the Agenda of 2030 show a positive relationship with biodiversity disclosure. We then develop a causal relationship through the positive impact of NGO directors serving on the board of directors on a strategy of partnerships, onboarding, and increase/decrease of NGO directors—possible mechanisms by which NGO directors can influence biodiversity disclosure. Overall, our findings suggest that while NGO directors can potentially be appointed to a company's board of directors for legitimization reasons, these directors are associated with better biodiversity disclosure. The study has valuable implications for enduring board members, practitioners, and scholars. The results are supported by theories of legitimacy, stakeholders and resource dependence. However, evidence on this research question is still unknown and critical, especially in the context of stakeholder-emphasized governance systems (continental Europe, Japan) and developing countries where there is a lack of knowledge application of regulations related to the disclosure of biodiversity.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 3","pages":"109-145"},"PeriodicalIF":0.9,"publicationDate":"2024-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140448795","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":"Retracted: International expansion and audit opinion shopping: A signaling perspective","authors":"Hao Ding","doi":"10.1002/jcaf.22700","DOIUrl":"10.1002/jcaf.22700","url":null,"abstract":"<p>Opinion shopping is an essential indication of audit collusion. Hence, it is crucial to explore the driving factors of audit uopinion shopping to better control and address this issue. Drawing upon signaling theory, this paper explores the relationship between international expansion and audit opinion shopping and the moderating roles of internal control quality and auditors’ quality. We find that the higher the level of international expansion of an enterprise, the greater the likelihood of audit opinion shopping. Furthermore, we also find that high internal control quality and high auditor quality can weaken the positive relationship between international expansion and audit opinion shopping. Besides, heterogeneity analysis shows that the impact of international expansion on audit opinion shopping is more pronounced in non-SOEs and firms which stay in the growth and maturity stage. This paper contributes to the antecedent research of audit opinion shopping and exposes the possible “dark side” of international expansion. Finally, this study may provide practical implications to help the authorities better regulate internationalized enterprises as well as contribute to the healthy development of the auditing market.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":"35 2","pages":"e1-e15"},"PeriodicalIF":1.4,"publicationDate":"2024-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139836841","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}