Accounting Research Journal最新文献

{"title":"Governance and sustainability in Southeast Asia","authors":"M. Tran, Eshani S. Beddewela, C. Ntim","doi":"10.1108/arj-05-2019-0095","DOIUrl":"https://doi.org/10.1108/arj-05-2019-0095","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the relationship between a diverse set of corporate governance (CG) mechanisms and corporate sustainability disclosure (CSD) in Southeast Asian countries under national stakeholder reform.\u0000\u0000\u0000Design/methodology/approach\u0000Data analysis is based on 171 of the largest companies across six Southeast Asian countries using a 30-item CSD measure.\u0000\u0000\u0000Findings\u0000The authors find that there are wide variations in the levels of CSD across the countries. The findings indicate that board size, board gender diversity, block ownership and the presence of a sustainability committee are significant determinants of CSD. Additionally, whilst more stringent stakeholder governance reform motivates firms to publish more sustainability information, it fails to influence the effectiveness of the board of directors in promoting CSD.\u0000\u0000\u0000Practical implications\u0000Findings of this study highlight the essential role internal governance structure plays in monitoring corporate actions and enabling corporations to reduce their legitimacy gap. The findings further encourage regulators and policymakers to question, with utmost importance, the effectiveness of stakeholder reform in making significant organisational changes.\u0000\u0000\u0000Originality/value\u0000There is a dearth of studies that examine the CG-CSD nexus in relation to specific institutional characteristics. Existing studies mainly focus on a single country with similar institutional environments and thus limiting the ability to understand the “context specificity” of sustainability content development. This paper provides an overview of stakeholder reform in Southeast Asian countries and empirically substantiates the relationship between CG and CSD across six countries undergoing such reforms in the region.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43798641","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 public-private partnership valuation paradox","authors":"Stephen Gray, Jason Hall, Grant Pollard, Damien Cannavan","doi":"10.1108/arj-08-2020-0275","DOIUrl":"https://doi.org/10.1108/arj-08-2020-0275","url":null,"abstract":"\u0000Purpose\u0000In the context of public-private partnerships (PPPs), it has been argued that the standard valuation framework produces a paradox whereby government appears to be made better off by taking on more systematic risk. This has led to a range of approaches being applied in practice, none of which are consistent with the standard valuation approach. The purpose of this paper is to demonstrate that these approaches are flawed and unnecessary.\u0000\u0000\u0000Design/methodology/approach\u0000The authors step through the proposed alternative valuation approaches and demonstrate their inconsistencies and illogical outcomes, using theory, logic and mathematical proof.\u0000\u0000\u0000Findings\u0000In this paper, the authors demonstrate that the proposed (alternative) approaches suffer from internal inconsistencies and produce illogical outcomes in some cases. The authors also show that there is no problem with the current accepted theory and that the apparent paradox is not the result of a deficiency in the current theory but is rather caused by its misapplication in practice. In particular, the authors show that the systematic risk of cash flows is frequently mis-estimated, and the correction of this error solves the apparent paradox.\u0000\u0000\u0000Practical implications\u0000Over the past 20 years, PPP activity around the globe amounts to many billions of dollars. Decisions on major infrastructure funding are of enormous social and economic importance.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this study is the first to demonstrate the flaws and internal inconsistencies with proposed valuation framework alternatives for the purposes of evaluating PPPs.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42130929","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":"A cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst small and medium sized enterprises","authors":"Zainal Abidin Ngah, Norashikin Ismail, N. Hamid","doi":"10.1108/arj-09-2020-0315","DOIUrl":"https://doi.org/10.1108/arj-09-2020-0315","url":null,"abstract":"\u0000Purpose\u0000The issue of tax evasion through fraudulent financial reporting committed by companies is a major concern facing the tax authority in Malaysia. As such, the purpose of this study is to propose a cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst small- and medium-sized enterprise (SME) taxpayers.\u0000\u0000\u0000Design/methodology/approach\u0000The proposed model for this study is designed to explore the extent of the relationships between the independent variables: family ownership firms, company size, presence of tax professionals, company’s duration in business and frequency of tax audits and the moderating variable, i.e. tax audit officers’ level of competence; and the dependent variable, i.e. tax evasion from the perspective of fraudulent financial reporting. This study is grounded on four theories: agency theory, political cost theory, economic deterrence theory and competency theory. Data will be gathered from actual audit cases resolved by the Inland Revenue Board of Malaysia. Ordinary least square regression analysis is proposed for the investigation.\u0000\u0000\u0000Findings\u0000This study anticipates that family ownership firms, company size, presence of tax professionals, company’s duration in business and frequency of tax audits could be associated with tax evasion amongst SMEs in Malaysia. This study further proposes that highly competent tax audit officers could mitigate the relationship between frequency of tax audits and tax evasion practices amongst SMEs in Malaysia.\u0000\u0000\u0000Originality/value\u0000This study should be able to provide a cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst SMEs in Malaysia. Research on fraudulent financial reporting amongst SMEs is very limited, especially involving the level of competence of the tax audit officers; therefore, this study should contribute to the tax evasion literature by providing a comprehensive model of predicting tax evasion through fraudulent financial reporting using a Malaysian tax setting.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-09-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43909766","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":"Consolidation of off-balance sheet entities and investment efficiency","authors":"Fang Zhao, Abhijit Barua, J. H. Kim","doi":"10.1108/arj-09-2020-0291","DOIUrl":"https://doi.org/10.1108/arj-09-2020-0291","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to examine the effect of consolidating off-balance sheet entities on firm-level investment efficiency. Financial Accounting Standards Board Interpretation No. 46, consolidation of variable interest entities – an Interpretation of ARB No. 51 (FIN 46) is used as a quasi-exogenous shock to financial reporting in this study.\u0000\u0000\u0000Design/methodology/approach\u0000The authors empirically test the change of investment efficiency for a sample of firms affected by FIN 46 in the post-FIN 46 periods. In the regression, a group of matched pairs selected from unaffected firms is used as the control sample and firm characteristics are used as control variables.\u0000\u0000\u0000Findings\u0000The authors find that firms affected by FIN 46 experience improvement in investment efficiency after adopting the standard compared to unaffected firms. The authors also document that FIN 46 firms’ level of investment decreases after FIN 46 compared to unaffected firms. These empirical results suggest that the improvement in investment efficiency is likely to be achieved by the reduction in over-investment. Further analyses show that amongst the affected firms, firms consolidating off-balance sheet special purpose entities (SPEs) improve investment efficiency mainly by reducing over-investment, whereas firms avoiding the consolidation of SPEs do not display such tendency.\u0000\u0000\u0000Originality/value\u0000This study contributes to the literature on the relation between financial reporting and investment efficiency, as well as the literature on the impact of FIN 46. To the best of the authors’ knowledge, this study is the first to examine the relation between the consolidation of off-balance sheet entities and investment efficiency.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"73 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"62029638","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":"Drivers of mandatory disclosure in GCC region firms","authors":"Ismail. Misirlioglu, J. Tucker, Helmi A. Boshnak","doi":"10.1108/arj-12-2020-0366","DOIUrl":"https://doi.org/10.1108/arj-12-2020-0366","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate firm-level variations in the extent of mandatory disclosures and address the drivers of mandatory disclosure using data from the Gulf Co-operation Council (GCC) region.\u0000\u0000\u0000Design/methodology/approach\u0000The extent of mandatory disclosure is examined using a disclosure index created with reference to 24 International Financial Reporting Standards (IFRSs).\u0000\u0000\u0000Findings\u0000The authors find that the extent of mandatory disclosure required by applicable IFRSs/International Accounting Standards increases with international presence, group firms, the level of voluntary disclosure, firm age and the education level of company financial controllers. It decreases with firm size and the proportion of institutional share ownership. The degree of board independence is positively related to the level of mandatory disclosure in firms with no state ownership. Profitability positively affects the level of mandatory disclosure to a greater extent in more liquid GCC firms. The results confirm that there is a greater sensitivity of mandatory disclosure to loss than to profit. Loss increases, whilst profit decreases, the extent of mandatory disclosure.\u0000\u0000\u0000Research limitations/implications\u0000The results promote further understanding of international financial reporting differences in an emerging country setting.\u0000\u0000\u0000Practical implications\u0000The findings provide a detailed insight to investors, financial analysts, practitioners and academics.\u0000\u0000\u0000Originality/value\u0000The authors develop a highly granular mandatory disclosure index in a developing country setting and identify key drivers of such disclosure.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-08-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41429975","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":"Flexibility and job stress in the accounting profession","authors":"Yosra Mnif, Emna Rebai","doi":"10.1108/arj-05-2020-0097","DOIUrl":"https://doi.org/10.1108/arj-05-2020-0097","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to examine the effects of flexibility as a coping mechanism for reducing the negative impact of job stress on the accounting profession.\u0000\u0000\u0000Design/methodology/approach\u0000Data were collected using a survey questionnaire sent by mail to accounting professionals in Tunisia. A total of 200 responses were examined using a structural equations modeling procedure.\u0000\u0000\u0000Findings\u0000The results indicate that flexibility attenuates the negative effects of job stress by improving job performance and job satisfaction among accounting professionals. Also, flexibility has a significant and positive association with psychological well-being. The results demonstrate that role ambiguity and overload have a positive influence on job burnout, which supports the argument that role stressors are antecedents of burnout in the accounting profession.\u0000\u0000\u0000Practical implications\u0000This study’s results help the accounting firms to reduce job stress by offering work flexibility to employees. Also, the results have significant implications for accounting professionals who are concerned with the consequences of job stress and the coping mechanisms that can diminish these consequences.\u0000\u0000\u0000Originality/value\u0000This study contributes to the behavioral accounting literature by examining flexibility as a coping strategy within the job stress model in an emerging country (Tunisia).\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44087971","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":"A study of the reliability of cross-sectional earnings forecasting models for estimating IPO firms’ implied cost of capital","authors":"Max Schreder, Pawel Bilinski","doi":"10.1108/arj-10-2020-0329","DOIUrl":"https://doi.org/10.1108/arj-10-2020-0329","url":null,"abstract":"\u0000Purpose\u0000This study aims to evaluate the earnings forecasting models of Hou et al. (J Account Econ, 53:504–526, 2012) and Li and Mohanram (Rev Account Stud, 19:1152–1185, 2014) in terms of bias and accuracy and validity of the implied cost of capital (ICC) estimates for a sample of initial public offerings (IPOs).\u0000\u0000\u0000Design/methodology/approach\u0000The authors use a sample of 1,657 NYSE, Amex and Nasdaq IPOs from 1972 to 2013.\u0000\u0000\u0000Findings\u0000The models of Hou et al. and Li and Mohanram produce relatively inaccurate and biased earnings forecasts, leading to unreliable ICC estimates, particularly for small and loss-making IPOs that constitute the bulk of new listings. As a remedy, the authors propose a new earnings forecasting model, a combination of Hou et al.’s and Li and Mohanram’s earnings persistence models, and show that it produces more accurate and less biased earnings forecasts and more valid ICC estimates.\u0000\u0000\u0000Originality/value\u0000The study contributes novel results to the literature on the validity of cross-sectional earnings models in forecasting IPO firm earnings and estimating the ICC. The findings are directly relevant for practitioners, who can improve their earnings forecasting accuracy for IPO firms and related ICC estimates. The insights can be extended to other settings where investors have limited access to financial information, such as acquisitions of private targets.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47291137","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 adjust board gender diversity in response to economic policy uncertainty?","authors":"Seksak Jumreornvong, Sirimon Treepong karuna, Shenghui Tong, Pornsit Jiraporn","doi":"10.1108/arj-01-2021-0011","DOIUrl":"https://doi.org/10.1108/arj-01-2021-0011","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to explore the effect of economic policy uncertainty (EPU) on board gender diversity. Prior research shows that female directors play a beneficial role. The advantage of board gender diversity should be particularly helpful when firms have to navigate an uncertain environment. So the authors hypothesize that firms adjust their board gender diversity in response to EPU.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors execute a regression analysis. To minimize endogeneity, the authors execute firm-fixed effects regressions, an instrumental variable (IV) analysis and propensity score matching.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Consistent with their hypothesis, the authors find that firms significantly raise board gender diversity in response to EPU. To draw a causal inference, the authors exploit the 9/11 terrorist attack as an exogenous shock that elevated EPU unexpectedly. The authors’ IV analysis corroborates the results. Finally, the authors show that board gender diversity substantially mitigates the adverse effect on shareholder wealth brought about by an unanticipated negative shock attributed to the 9/11 attack.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>According to the authors’ knowledge, this study is the first to investigate the effect of EPU on board gender diversity. This research contributes to two important areas of the literature, i.e. board gender diversity and EPU. The authors show that board gender diversity is beneficial and firms act accordingly when facing more economic uncertainty.</p><!--/ Abstract__block -->","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"36 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138540699","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":"Value relevance of accounting information during IFRS convergence period: comparative evidence between India and Indonesia","authors":"A. Srivastava, Harjum Muharam","doi":"10.1108/arj-04-2020-0070","DOIUrl":"https://doi.org/10.1108/arj-04-2020-0070","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the financial reporting quality during the International Financial Reporting Standards (IFRS) enforcement period in the emerging markets of India and Indonesia by using Ohlson’s (1995) valuation model. The study further endeavors to compare the quality of the reporting environment and its impact on stock prices for both these emerging economies by using a price model during the IFRS conversion period.\u0000\u0000\u0000Design/methodology/approach\u0000This paper aspires to obtain insights about the value relevance of accounting information during the IFRS enforcement period for India and its Southeast Asian neighbor, Indonesia which is identical in terms of inclusive growth and development. In that context, 3,325 Indian (National Stock Exchange indexed) and 815 Indonesian (Indonesian stock exchange indexed) firm-year observations were examined by using Ohlson’s price valuation model for five years, representing the IFRS adherence period.\u0000\u0000\u0000Findings\u0000The findings of the paper insinuated that the value relevance of book values and earnings, both, have increased throughout the IFRS enforcement period for both economies. However, the investigation revealed that the incremental interpretive power of earnings is more substantial and evident during the IFRS adherence phase than book values which indicates investor’s inclination toward earnings management over book values.\u0000\u0000\u0000Research limitations/implications\u0000The findings may assist the regulators, investors, firms and standard setters of both economies in examining the effectiveness of financial reporting curriculums as it brings forth informational improvement in the financial market. This study also outstretches the discussion on the subject in other emerging nations where the market is imperfect with insufficient information, poor enforcement and limited regulations. This investigation has few limitations such as limited data and period, only two emerging economies and two control variables, thus provide scope for future research.\u0000\u0000\u0000Social implications\u0000This paper endeavors to investigate and compare the value relevance of accounting information during IFRS convergence period between India and Indonesia with an aim to assist in improved decision making for both, regulatory bodies and market participants in both the countries.\u0000\u0000\u0000Originality/value\u0000The key contribution of the study is to examine whether the accounting information is value relevant during the IFRS convergence period for the two fastest-growing economies in Asia, India and Indonesia and it is the first such empirical research to the best of the author’s knowledge. The study is an extended contribution to the modest research administered in developing nations.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42510177","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 sustainability practices influence financial performance? Evidence from the Nordic financial industry","authors":"Abm Fazle Rahi, Ruzlin Akter, J. Johansson","doi":"10.1108/arj-12-2020-0373","DOIUrl":"https://doi.org/10.1108/arj-12-2020-0373","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to explore the impact of sustainability (environmental, social and governance or ESG) practices on the financial performance (FP) of the Nordic financial industry.\u0000\u0000\u0000Design/methodology/approach\u0000The study covers a sample selection of observations for a total of 152 firm-years for 39 financial companies within the Nordic region (Sweden, Denmark, Finland and Norway) for the business years including 2015–2019. Data regarding ESG and FP indicators were extracted from the Thomson Reuters Eikon database in July 2020. This is a quantitative study using regression and a generalized method of moments.\u0000\u0000\u0000Findings\u0000Using static and dynamic estimators, the authors found both positive and negative impacts of sustainability practice on FP. The authors identified a negative relationship between ESG practices and FP (return on invested capital, return on equity and earnings per share). The authors identified a positive relationship between governance and return on assets.\u0000\u0000\u0000Originality/value\u0000A key contribution to the accounting literature is the finding that there is a risk for financial firms in adopting sustainability practices, as they follow a logic that contradicts the purely economic rationale. On the other hand, the positive relationship between governance and FP helps not only companies but also regulators and researchers to understand the positive impact of a good governance structure.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45821341","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}