International Journal of Disclosure and Governance最新文献

{"title":"The effects of COVID-19 pandemic and auditor-client geographic proximity on auditors' going concern opinions","authors":"Yunsen Wang, Tiffany Chiu, Alexander Kogan","doi":"10.1057/s41310-024-00254-3","DOIUrl":"https://doi.org/10.1057/s41310-024-00254-3","url":null,"abstract":"<p>This study investigates how the COVID-19 pandemic, as measured by its morbidity and mortality, impacts the audit of companies, specifically how auditors make going-concern opinion (GCO) decisions. The pandemic created the conditions of a natural experiment, making it possible to disentangle the economic and psychological effects of COVID-19 on the auditors’ GCO decisions. Additionally, the lockdowns amplified the difference in the information sets of local and non-local auditors, thus making it possible to evaluate the information advantage due to geographic proximity. This study further tests the effects of geographic proximity on the accuracy of auditors’ GCOs during the pandemic by comparing them with clients’ subsequent bankruptcy filings. The results of this study show that both COVID-19 morbidity and mortality rates increase the likelihood of auditors’ GCOs, which can be explained from economic and psychological perspectives. The geographic proximity between audit offices and client headquarters mitigates the influence of COVID-19 morbidity information; however, it does not mitigate the psychological effects of COVID-19 mortality information. The results also indicate that local auditors can make more accurate GCO decisions due to their information advantage.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141547229","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 report lag and key audit matters in Australia","authors":"Md. Mustafizur Rahaman, Md. Borhan Uddin Bhuiyan","doi":"10.1057/s41310-024-00251-6","DOIUrl":"https://doi.org/10.1057/s41310-024-00251-6","url":null,"abstract":"<p>We aim to investigate the impact of mandatory key audit matters (KAMs) disclosure on audit report lag (ARL). Additionally, we examine the potential moderating effect of firm size on the association between KAMs and ARL. We conduct Ordinary Least Square regression analyses using a sample of 602 firm-year observations from 2018 to 2020. Our findings indicate that the disclosure of KAMs is associated with a reduction in firm ARL. Furthermore, we find that the association between KAMs and ARL is particularly pronounced in large firms, suggesting that the impact of KAMs disclosure on ARL is more significant in this context. Additionally, our research reveals that the negative association between KAMs disclosure and ARL becomes more prominent when the education level of the audit committee chair is higher. Our findings underscore the importance of transparent reporting through KAMs disclosure and the role of knowledgeable and educated individuals in audit committees in facilitating a more efficient and timely audit process. Also, our finding indicates that the beneficial effect of KAMs may be more noticeable to larger firms.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141503424","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":"When private information becomes fraud: evidence from Euronext Paris","authors":"Benedicte Millet-Reyes, Jonathan Daigle","doi":"10.1057/s41310-024-00253-4","DOIUrl":"https://doi.org/10.1057/s41310-024-00253-4","url":null,"abstract":"<p>This paper analyzes the financial and corporate governance characteristics of firms sanctioned for insider trading and disclosure irregularities on Euronext Paris between 2010 and 2022. We identify criteria that separate fraudulent firms from their peers and show that cash flow volatility and the absence of analyst coverage increase the likelihood of sanctions by the French market authority. Founder CEOs, family board chairs, and dual chair/CEOs are also more likely to be sanctioned for financial market abuses. However, we find that the level of family ownership does not affect the likelihood of sanctions, suggesting that top insiders are willing to extract private benefits at the expense of the company’s long-term performance. Our results also indicate that most fraud firms get delisted within a few years of their sanction announcement. Although most surviving companies still have a dual family chair/CEO after their sanction, they include independent board members as recommended by the two French governance codes. Last, this study investigates whether sanctioned companies rely on earning management techniques such as income smoothing to hide their real performance from market participants. Our results show that sanctioned firms are actually less likely to use income smoothing activities. In addition, we find that financial analysts play a mixed role in improving public information disclosure. Although analyst coverage reduces the likelihood of sanctions and earnings smoothing activities, larger pools of analysts are also associated with a greater probability of sanction in family-controlled firms, suggesting that analysts tend to herd and fail to detect fraudulent activities.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141503429","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 accounting environment, firm and loan attributes on non-performing loan ratios of countries: the moderating role of good governance","authors":"Md. Atiqur Rahman, Md. Shuvo Howlader","doi":"10.1057/s41310-024-00252-5","DOIUrl":"https://doi.org/10.1057/s41310-024-00252-5","url":null,"abstract":"<p>This study aims to investigate how accounting environment, mean firm attributes, and loan collateralization culture, and good governance of a country affects overall non-performing loan ratio (NPL). The study relies on the notions of a stream of theories based on institutional theory to predict that institutionalized political-economic structures, along with features of borrowing-lending field, may affect NPL significantly. Guided by the theoretical stream, we also aim to test whether broader political-economic structure, i.e., good governance in our case, moderate impact of field specific variables (e.g. accounting environment, average firm and loan attributes) on NPL. Utilizing data on 73 countries for the years 2010–2018 published by the World Bank and applying two-step system GMM models, we find that overall good governance, accounting environment, mean firm attributes, and loan collateralization affects NPL significantly. Of the elements of accounting environment, better disclosure is found to unearth more NPL while external audit pervasiveness reduces NPL, albeit insignificantly. Countries with significant state ownership and more women representation in firms have significantly lower NPL ratios while NPL is significantly higher in countries with higher average firm sales growth. Average firm age in a country does not affect NPL significantly. In line with the ex-post theory of collateral, we found significant positive association between loan collateralization culture and NPL. Our findings support the theoretical predictions that institutionalized political-economic structure significantly affects NPL and moderates the impacts of other field-specific variables on NPL. Good governance is found to significantly reduce NPL and moderate impact of most of the other field-specific variables on NPL. In fact, good governance is economically the most significant in reducing NPL. Accounting environment works more effectively in preventing NPL when good governance is ensured. Both disclosure and external audit significantly reduces NPL in the presence of good governance. External audit becoming significant in reducing NPL when good governance is ensured may indicate that audit quality improves if good governance exists. In presence of good governance, NPL is significantly lower in countries with more matured firms and those with more female representation in firms. NPL is significantly higher in the presence of good governance if there are more firms with significant state ownership. Good governance cannot significantly moderate the association between loan collateralization culture and NPL. Additional analyses reveal that the impacts of the variables differ significantly between high-NPL and low-NPL countries. The associations also differ notably between European and non-European countries where European economies in our sample are developed/transition economies while non-European countries are all developing economies. State ownership, and sales","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141503425","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":"Literature review on gender diversity in top management teams of companies and its relationship with firm performance and audit quality","authors":"Maria Fátima Ribeiro Borges, Graça Maria do Carmo Azevedo, Jonas Oliveira","doi":"10.1057/s41310-024-00248-1","DOIUrl":"https://doi.org/10.1057/s41310-024-00248-1","url":null,"abstract":"<p>This paper aims to review the literature on gender diversity on top management teams and its impact on firm’s performance and audit quality. Over the period of 1997–2023 a total of 125 published articles were identified. Main findings reveal that literature on gender diversity continues to be contradictory, inconsistent and inconclusive regarding its impacts on firm’s performance and audit quality, highlighting the need to intensify research on this field to validate empirically those relationships. The literature review informs researchers on other audiences about the main characteristics of the literature on gender diversity and identifies several research gaps in the area.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141503426","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"How does ownership of insiders and institutions affect future value? Influence of country-level governance","authors":"Brahmadev Panda, Veerma Puri, Aviral Kumar Tiwari","doi":"10.1057/s41310-024-00249-0","DOIUrl":"https://doi.org/10.1057/s41310-024-00249-0","url":null,"abstract":"<p>This research explores the ways in which firm-level governance, specifically insider and institutional ownership, affects future value through the lens of agency theory. Then, we evaluate how country-level governance influences the value impact of insiders and institutions. Our analysis employs NIFTY-500 listed companies for 11 years, from 2010 to 2020. Findings suggest that the effect of insider ownership on future value is nonlinear, and the impact of institutional ownership is detrimental for the entire sample. Nonetheless, differential value impacts of insiders and institutions are observed between the insider and noninsider firms. We observe an inverted U-shaped and U-shaped effect of insiders on future value for insider and noninsider firms, respectively. Insider firms witness a declining value impact, while noninsider firms experience an incremental value impact from institutional investors. Further findings indicate that though country-level governance has little bearing on institutional investors, it effectively reduces insiders’ expropriation effect that enhances future value.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141503427","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":"COVID-19 and persistence in the stock market: a study on a leading emerging market","authors":"Anindita Bhattacharjee, Monomita Nandy, Suman Lodh","doi":"10.1057/s41310-024-00250-7","DOIUrl":"https://doi.org/10.1057/s41310-024-00250-7","url":null,"abstract":"<p>In this study, we examine how sectors of the National Stock Exchange from India respond to the uncertainties introduced by the COVID-19 pandemic. By examining the synchronization between the sector-specific and overall market index (NIFTY 50) reaction to COVID-19, we contribute to the inconclusive ongoing academic literature regarding the impact of COVID-19 on the stock market, especially in the context of persistence in an emerging market. To analyze the persistence of sectoral indices, we apply multifractal detrended fluctuation analysis (MFDFA). We use the generalized Hurst exponent and singularity spectrum as indicators for persistence and spectral width as a measure of volatility. Our analysis shows that the sample sectoral indices are persistent before and after the announcement of COVID-19; however, volatility in some sectors reduces post-announcement of COVID-19. The findings will enrich the academic literature on the relationship between sector-specific and overall market indexes. In practice, the paper will guide investors to organize their portfolios, especially during future economic uncertainty.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141503428","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":"Decoding ESG disclosure: unveiling the role of catering incentives","authors":"King Fuei Lee","doi":"10.1057/s41310-024-00245-4","DOIUrl":"https://doi.org/10.1057/s41310-024-00245-4","url":null,"abstract":"<p>This paper introduces a catering hypothesis of ESG disclosure, where managers adjust their disclosure policies based on investor valuation of high-disclosure companies. The study examines 2207 US-listed firms from 2005 to 2022 and finds a significant positive relationship between the ESG disclosure premium and firm ESG reporting. Managers respond to prevailing investor demand for ESG data by disclosing more when investors place a stock price premium on companies with high disclosure levels and disclosing less when investors prefer companies with low disclosure levels. This research enriches sustainability accounting literature by exploring the impact of managerial decision-making and investor demand on ESG disclosure, providing insights for stakeholders and policy development. It also expands understanding of the connection between corporate policy, sustainability, and catering considerations, benefiting stakeholders, directors, and investors interested in improving ESG practices and capital allocation for sustainable development.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141195145","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":"Internal governance and the sustainability development practice in Islamic financial institutions","authors":"Nourhen Sallemi","doi":"10.1057/s41310-024-00246-3","DOIUrl":"https://doi.org/10.1057/s41310-024-00246-3","url":null,"abstract":"<p>This study examines the association between internal corporate governance (board size, outside directors, Shariah board size, and training of Shariah board members) and the sustainability practices of Islamic financial institutions (IFIs). The sample includes 59 IFIs listed in Africa, Europe, Asia, the Middle East, and North America over the period 2017–2021. We examine the relationship between internal corporate governance (board size, outside directors, Shariah board size, and training of Shariah board members) and sustainability practices using the ordinary least squares (OLS) method. Overall, our findings suggest that larger boards of directors and Shariah boards achieve greater sustainability. We also find a positive relationship between the training of Shariah board members and sustainability practices. Additionally, outside directors have an insignificant impact on sustainability practices. This study provides useful insights for managers and policymakers to better understand which internal governance mechanisms, especially board size, Shariah board size, and the training of Shariah board members, can best encourage a company to improve sustainable development practices.</p>","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141148436","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 CEO gender impact dividends in emerging economies?","authors":"Aastha Mittal, Shveta Singh","doi":"10.1057/s41310-024-00247-2","DOIUrl":"https://doi.org/10.1057/s41310-024-00247-2","url":null,"abstract":"","PeriodicalId":45050,"journal":{"name":"International Journal of Disclosure and Governance","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2024-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141110875","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}