Accounting Research Journal最新文献

{"title":"Window dressing in the banking sector of an emerging economy: evidence from aggregate data","authors":"Imad A. Moosa, Khalid Alsaad, Ibrahim N. Khatatbeh","doi":"10.1108/arj-11-2022-0296","DOIUrl":"https://doi.org/10.1108/arj-11-2022-0296","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate window dressing as practiced by commercial banks in Kuwait, using monthly aggregate balance sheet data covering the period January 1993 to December 2017.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study applies the structural time series model to decompose an observed time series into unobserved components based on monthly data covering January 1993 to December 2017 on the consolidated balance sheet of commercial banks in Kuwait.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The empirical results indicate that Kuwaiti commercial banks indulge in upward window dressing to boost size and liquidity. This kind of behaviour is indicated by a statistically significant rise in assets under the control of banks in December, followed by a statistically significant decline in January. The operation is funded by borrowing, leading to a December rise and a January fall in foreign and other liabilities, which are also under the control of commercial banks.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study uses a novel methodology to detect window dressing based on the seasonal behaviour of balance sheet items. This study suggests a unified framework for the motives, targets, types and consequences of window dressing and how they are related.</p><!--/ Abstract__block -->","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"4 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139020327","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":"Fighting through the Flesch and Fog: the readability of risk disclosures","authors":"Franz Eduard Toerien, Elda du Toit","doi":"10.1108/arj-03-2023-0094","DOIUrl":"https://doi.org/10.1108/arj-03-2023-0094","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this study is to evaluate whether the amendments to International Accounting Standard (IAS) 39 and the introduction of International Financial Reporting Standards (IFRS) 9 enhanced the readability, and thus the quality and usefulness of risk disclosure information.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Readability analyses are performed on companies listed on the Johannesburg Stock Exchange (JSE) from 2005 to 2021. The sample period includes the period when companies disclosed information according to IAS 39 (2005–2017) and IFRS 9 (2018–2021).</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of the analyses show risk disclosures for JSE-listed companies to be complex and difficult to understand. Furthermore, risk disclosures have become longer and less readable with the introduction of amendments to IAS 39 and the introduction of IFRS 9.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study uses readability measures as a proxy for the complexity and usefulness of risk disclosures. The amount of utility a user of financial statements derives could be dependent on other factors such as the quality of disclosure, individual user background and perceptions.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The results have valuable implications for the various stakeholders that make use of the information contained in financial statements. Stakeholders such as regulators and standard setters should carefully assess how accounting standards change to ensure that one of the key objectives of the IASB, namely, to provide information that is relevant, reliable and understandable, is met.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The results of this study contribute to the discourse on the usefulness of companies’ risk disclosures. Though, to the best of the authors’ knowledge, this is the first study to compare the readability of risk disclosures from an emerging market perspective, the results can be applied to other countries using IFRS to assess the readability of risk disclosures.</p><!--/ Abstract__block -->","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"86 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138631200","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":"This is not an exit: accounting education and attempting to escape the capitalist realist “cage”","authors":"David Yates, Muhammad Al Mahameed","doi":"10.1108/arj-06-2022-0144","DOIUrl":"https://doi.org/10.1108/arj-06-2022-0144","url":null,"abstract":"Purpose Through this reflexive, theoretically informed polemical piece, this paper aims to seek to reflect on the role of accounting education in United Kingdom Higher Education (UKHE). The authors reignite an old, but pertinent debate, whether accounting graduates should be educated to be accountants or receive a holistic, critical education. Design/methodology/approach The authors adopt a theoretical position drawing on the work of Slavoj Žižek and Mark Fisher, and their fusion of Lacanian psychoanalysis and Marxism, in particular Fisher’s (2009) conceptualisation of “capitalist realism” to take a critical standpoint on the effects that UKHE marketisation is having on the teaching of accounting and other business-related disciplines. Findings The authors outline four key aspects of where accounting education in UKHE is influenced by capitalist realism, as a result of the marketisation of UKHE. Research limitations/implications The paper is a reflexive polemic and so is limited by this written style and presentation. Social implications The authors argue that capitalist realism is a dominant theme that influences accounting education. They propose that universities now, more than ever, must focus on their societal duty to foster critical viewpoints in their graduates and dispose of a model that is subject to capitalist realism ontology. Originality/value The theoretical stance allows for a potentially deeper consideration of issues surrounding marketisation of higher education, from the micro level of social interaction (that of the accounting academic and their impact/perceptions of the reality).","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"240 2","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139258552","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 CEO attributes on sustainability performance: evidence from an emerging economy","authors":"Rubel Saha, Md. Nurul Kabir, Abdul Hannan Chowdhury","doi":"10.1108/arj-12-2022-0323","DOIUrl":"https://doi.org/10.1108/arj-12-2022-0323","url":null,"abstract":"Purpose This study aims to empirically examine the influence of CEO characteristics on the sustainability performance of listed banks in Bangladesh through the lens of upper echelons theory. Design/methodology/approach The authors estimated sustainability performance score based on a hand collected data set from the annual report and sustainability reports of the Bangladeshi listed banks. Following Clarkson et al. (2008), the sustainability index developed by Ong et al. (2016) and the G4 sustainability reporting standards of the global reporting initiative (GRI), a unique scoring index was developed to gather and assess sustainability data from listed banks. A panel regression analysis model is used to investigate the impact of CEO attributes on sustainability performance. Findings The findings of this study reveal that higher academic qualifications, greater industry experience and a longer tenure of the CEO have a significant and positive impact on the sustainable performance of the Bangladeshi listed banks. Furthermore, this study reveals that Bangladeshi listed banks are considerably behind in implementing the sustainability recommendations of Bangladesh Bank. Originality/value This study provides new evidence of how CEOs’ attributes can affect the sustainability reporting of Bangladeshi listed banks. Furthermore, this study measures the real contribution towards sustainability performance compared with the general claims about sustainability made by listed banks in Bangladesh.","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"53 20","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134993647","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":"Debt maturity structure, credit ratings and audit fees: new evidence","authors":"Solomon Opare, Md. Borhan Uddin Bhuiyan","doi":"10.1108/arj-10-2022-0261","DOIUrl":"https://doi.org/10.1108/arj-10-2022-0261","url":null,"abstract":"Purpose This research aims to revisit Gul and Goodwin (2010), which focuses on exploring the relationship between debt maturity structure, credit ratings and audit fees. Furthermore, the authors investigate whether this association varies based on firm size, firm life cycle and financial reporting quality. Design/methodology/approach To investigate the research question, the authors use an extended sample period, 2004–2017, in comparison to the sample period, 2003–2006, used in Gul and Goodwin (2010). The authors use ordinary least squares regression as a baseline methodology along with two-stage least-squares regression and change analysis to control for endogeneity concerns. Findings According to Gul and Goodwin (2010), auditors charge lower audit fees for firms with higher short-maturity debt and better credit ratings, indicating a lower likelihood of financial misreporting. Further, Gul and Goodwin (2010) find that lower credit rated firms benefit more from short-term debt. Primarily, the findings are consistent with Gul and Goodwin (2010) and provide further evidence that the beneficial effects of short-maturity debt for firms with poor ratings are evident for small firms, firms in the growth stage of their life cycle and firms with poor earnings quality. Practical implications The findings imply that practitioners in the audit profession and investors should take a more nuanced and comprehensive approach to varied firm and financial factors, taking into consideration the intricate relationships between many elements impacting a firm’s financial health. As a result, audit professionals may give more accurate appraisals of a firm’s financial condition, and investors can make better investment decisions. Originality/value The authors reconfirm the findings of Gul and Goodwin (2010) using an extended sample. The findings are novel, which evidence that the lower audit fees for rated firms with short-maturity debt are moderated by firm size, life cycle and financial reporting quality.","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"54 20","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134992921","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":"Remote auditing and its impacts on auditors’ work and work-life balance: auditors’ perceptions and implications","authors":"Johan Ingemar Lorentzon, Lazarus Elad Fotoh, Tatenda Mugwira","doi":"10.1108/arj-06-2023-0158","DOIUrl":"https://doi.org/10.1108/arj-06-2023-0158","url":null,"abstract":"Purpose This paper aims to explore the impacts of remote auditing on auditors’ work and work-life balance. Design/methodology/approach This paper adopted a qualitative online survey approach using open-ended reflections from 98 highly experienced auditors. The survey design aligns with a “Big Q” approach to qualitative data. The reflections were interpreted through the theoretical lens of the social presence theory. Findings Auditors underscore that remote auditing has improved their work-life balance since it offers flexibility, greater autonomy and efficient use of time. However, they believe less social contact due to remote auditing can hurt their work. Research limitations/implications This study aimed to holistically comprehend the concept of work-life balance in a remote auditing setting. Therefore, the study refrained from making comparisons based on demographic information (e.g. gender, experience and type of audit firm). Practical implications The findings highlight the need for adopting flexible work arrangements that prioritise auditors’ well-being. This is critical for making the audit profession attractive and enhancing overall audit quality. Updated regulatory guidance and controls are needed concerning the use of technologies in remote auditing to ensure high-quality audits. Social implications The findings of this study can positively reshape public perception of the audit profession. Firstly, enhanced work-life balance can improve audit quality. Secondly, incorporating emerging technologies in auditing can result in society perceiving auditors as adaptive to innovation and technological advancement that has been touted for their potential for enhancing the efficiency and effectiveness of audit and audit quality, potentially enhancing societal trust in auditing. Originality/value The findings of this study complement the auditing literature that has mainly focused on the traditional work paradigm, requiring in-person presence. The authors identify potential challenges emanating from auditors’ remote work and propose solutions for audit firms to improve work-life balance in a remote work setting.","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"64 9","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135808439","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":"Islamic banks’ Sharia compliance disclosure: an international evidence","authors":"Abdelhafid Benamraoui, Tantawy Moussa, Mostafa Hussien Alsohagy","doi":"10.1108/arj-07-2022-0157","DOIUrl":"https://doi.org/10.1108/arj-07-2022-0157","url":null,"abstract":"Purpose This paper aims to investigate the disparity and compliance of information disclosures in Islamic banks (IBs). Specifically, the research examines IBs’ compliance with Sharia disclosure requirements. Design/methodology/approach To determine the extent of disclosures and compliance with Islamic business principles, content analysis is applied to the annual reports of a sample of IBs from 11 countries. A comprehensive reporting framework has also been developed to assess the transparency and compliance of IBs with Islamic business principles. Institutional theory and core Islamic principles are used to inform the study and its findings. Findings The results reveal that IBs demonstrate limited transparency on the key Sharia compliance issues, and there is a wide variation in the level of reporting across the countries studied. Moreover, the authors find that IBs located in the single integrated regulatory framework (RF) countries disclose more information, followed by those located in dual RF countries and then those located in Islamic RF countries. Originality/value This study presents a unique and comprehensive framework to assess the areas of Sharia disclosure by IBs and provides a conceptual rationing for the actual level of IBs’ Sharia reporting. This study also fills a significant gap in the literature, as most studies in this field are based on a single-country study. The results are deemed of direct relevance to IBs’ managers, investors, policymakers, regulators and the wider public, particularly in the Muslim world.","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136263380","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":"Related party transactions, ownership structures and cost of debt: evidence from GCC listed firms","authors":"Baban Eulaiwi, Al-Hadi Ahmed Al-Hadi, Lien Duong, Brian Perrin, Grantley Taylor","doi":"10.1108/arj-03-2023-0073","DOIUrl":"https://doi.org/10.1108/arj-03-2023-0073","url":null,"abstract":"Purpose This study aims to investigate the relation between firms’ use of related party transactions (RPTs) and cost of debt (COD) in Gulf Cooperation Council (GCC) countries. Design/methodology/approach The authors obtain data from annual reports and the Standard and Poor’s Capital IQ database over the period 2005–2016 period of nonfinancial publicly listed firms on the UAE, KSA, Oman, Bahrain, Kuwait and Qatar stock exchanges. Using a final sample of 1,810 firm-year observations, the authors empirically assess the relation between strategic use of RPTs, the COD issuance and the moderating effects of governance mechanisms. Findings The authors find that high levels of total RPTs and purchase-based RPTs increase firms’ COD. Furthermore, propping of sales through increased sale-based RPTs is found not to have a significant effect on firms’ COD. The authors also find that ownership factors pertaining to family member founding and royal family ownership negatively moderate the association between the firm’s RPTs and COD. Additionally, the voluntary formation of executive committees has a positive and significant mediating effect on the relation between firms’ purchase-based RPTs and COD. The results are robust to several additional tests and alternative measurement specifications. Research limitations/implications The positive relationship between purchase-based RPTs and firm financing costs is magnified in countries with high quality of RPT disclosures. This has implications for funding of GCC entities by governments and financial institutions. Originality/value To the best of the authors’ knowledge, this study is the first to examine how wealth transfer via RPTs in the GCC region is associated with higher COD. The authors also contribute to the outcome of emerging governance regimes in the GCC, which could impact the level of credit risk and/or default risk faced by a firm and, thus, the relation between RPTs and COD. In doing so, the authors provide a more nuanced study by investigating the potential channels that could account for such a relation in an emerging market setting.","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135011554","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 CEO age on a firm’s choice of global reporting initiative: moderating role of board social capital","authors":"Muhammad Jameel Hussain, Gaoliang Tian, Umair Bin Yousaf, Junyan Li","doi":"10.1108/arj-02-2022-0050","DOIUrl":"https://doi.org/10.1108/arj-02-2022-0050","url":null,"abstract":"Purpose This study aims to explore the impact of the chief executive officer’s (CEO) age on adopting global reporting initiative (GRI) framework for corporate social responsibility (CSR) reporting. It also underlines how board social capital moderates the relationship between CEO age and the adoption of the GRI framework. Design/methodology/approach Chinese A-listed companies during 2010–2018 were used. The authors applied a logistic regression model due to the binary nature of the dependent variable. For robustness, two-step generalized method of moments (GMM) and lagged independent variables are used. Findings The study finds that CEO age negatively impacts the firm’s choice of GRI reporting framework. The social capital of the board positively moderates this relationship. This finding is based on the notion that as a CEO grows older or headed toward retirement age, his/her interest in CSR diminishes due to a shorter career horizon. Boards with external links provide better advice on CSR issues and mitigate the negative impact of CEO age. Practical implications The study results are important for understanding the GRI framework’s development and implementation, particularly in China. Originality/value To the best of the authors’ knowledge, this is the first study that deeply examines how CEO age affects GRI adoption in the Chinese context and how the board’s social capital moderates this relationship.","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135354200","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":"Busy CEOs and audit fees: evidence from Indonesia","authors":"Iman Harymawan, Fiona Vista Putri, Melinda Cahyaning Ratri, Mohammad Nasih","doi":"10.1108/arj-01-2023-0003","DOIUrl":"https://doi.org/10.1108/arj-01-2023-0003","url":null,"abstract":"Purpose A company needs to use auditing procedures to ensure the reliability of financial statements while also providing transparency to stakeholders. The extent of risk associated with the company depends on the directors’ involvement in its daily operations. This paper aims to study the relationship between busy chief executive officers (CEOs) and audit fees. Design/methodology/approach This study uses 1,037 data samples from companies listed on the Indonesia Stock Exchange from 2010 until 2018. It adopts the ordinary least squares method to test the hypothesis. Furthermore, this study performs robustness tests, such as propensity score matching (PSM) and Heckman’s two-stage least square tests (Heckman, 1979), to address the endogeneity issues. Findings This study finds that the appearance of a busy CEO in a company will significantly increase the audit fee. It also concludes that a long tenure of a busy CEO will substantially weaken the positive relationship between the CEO and the audit fee. However, this study discovers that, in a company with a busy CEO, a monitoring mechanism through the independent commissioner and risk management committee will only help to maximize the firm’s practical risk evaluation a little. This result is robust because the PSM and Heckman tests display consistent results, so it is free from endogeneity issues. Practical implications This study is valuable for theoretical and practical development in Indonesia. Due to the minimum regulation about multiple positions on boards in Indonesia, the shareholders must be aware of the need to choose a board with more skill and commitment to improve the position of the company. This result also warns the C-level of the company to pay more attention to its risk-monitoring process to make it more effective and efficient. Originality/value Indonesia is one of the countries that have implemented the two-tier governance system. With the minimum regulation about multiple directorships in Indonesia, this study offers new insights into how a busy CEO will be related to the audit outcomes.","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135354035","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}