Journal of Accounting in Emerging Economies最新文献

{"title":"Earnings management during the COVID-19 crisis: evidence from the Brazilian and American capital markets","authors":"Eduardo da Silva Flores, J. Sampaio, A. Beiruth, Talles Vianna Brugni","doi":"10.1108/jaee-10-2021-0317","DOIUrl":"https://doi.org/10.1108/jaee-10-2021-0317","url":null,"abstract":"PurposeThe main purpose of this study is to evaluate whether the COVID-19 pandemic has stimulated earnings management among publicly traded companies in Brazil and the USA.Design/methodology/approachThe authors analyzed the above-mentioned effects based on 22,244 observations of Brazilian companies and 139,856 observations of American companies from 1998 to 2020. The proxy used to detect earnings management based on discretionary accruals (DAC) was obtained by using the Modified Jones Model (MJM) (Dechow et al., 1995), with adjustments suggested by Kothari et al. (2005). In accordance with previous studies (e.g. Brown et al., 2015; Enomoto et al., 2015; Galdi et al., 2020; Huang and Sun, 2017; Roychowdhury, 2006), the authors also employed a second proxy to detect earnings management through real activities associated with unusual losses for fixed assets (property, plant and equipment (PPE)).FindingsThe study’s findings indicate that the discretionary accruals of Brazilian companies varied in a more accentuated manner during the COVID-19 pandemic, making it possible to deduce that a recent history of economic depression may entail greater incentives for earnings management in an emerging economy. In addition, the authors verified that the effects of the current crisis on earnings management proxies denote a signal that is distinct from previous economic crises, which may be interpreted as an attempt to postpone the effects of the pandemic on financial statements, especially those of the Brazilian capital markets.Originality/valueUnlike previous crises, this pandemic has led to direct restrictions on a wide variety of economic segments rather than indirect contagion due to anomalies in the financial markets, making it a phenomenon with the characteristics of a quasi-natural experiment for studies related to the quality of accounting information. Considering that both Brazil and the USA provide an opportune economic contrast, given their discrepancies in terms of economic growth over the past two decades, the researchers believe that there is an unusual opportunity to understand how earnings management can be an incentive for managers in environments where crises arose from natural causes.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49429552","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":"Performance measurement in urban development: unfolding a case of sustainability KPIs reporting","authors":"L. Alsaid, C. A. Ambilichu","doi":"10.1108/jaee-09-2021-0299","DOIUrl":"https://doi.org/10.1108/jaee-09-2021-0299","url":null,"abstract":"PurposeThis study aims to explore the potential dynamics between performance measurement at the organisational level and emerging urban development projects at the macro-institutional field level of sustainability governance and accountability.Design/methodology/approachUsing a theoretical triangulation between three theories, namely contingency theory, institutional theory and social cognitive theory, this study investigates not only the macro-micro dynamics, but also the (recursive) micro-macro dynamics between performance measurement and urban development. Using an Egyptian public sector urban development organisation and its sustainable energy project as an empirical example, interviews, documents and observations were collected.FindingsThe dynamics emerged between field urban development projects and the (unintended) organisational implementation of the performance measurement system, the sustainability key performance indicators (KPIs) reporting system. Contributing to previous literature, these dynamics have been institutionalised through (three) interrelated levels: the (macro-field) urban development contingencies and pressures for sustainability KPIs reporting, the (organisational) institutionalisation of the urban development performance measurement system and then the (micro-organisational) cognitive role of sustainability KPIs reports in (re)making political urban development decisions.Research limitations/implicationsThis study faced some limitations that paved the way for future research axes. For political and security reasons, difficulties were encountered in conducting interviews with government actors in the sustainable energy project under study. Also, due to the practical separation of the environmental sustainability system from the sustainability KPIs reporting system in this case study, environmental sustainability is outside the scope.Practical implicationsSustainability reports may influence public sector decision-making processes in a specific urban development context. These KPIs reports may also increase public sector management opportunities for urban auditing, transparency, accountability and sustainability governance. These KPIs may also guide public sector management to lower prices in poor villages to increase smart energy consumption and improve community health.Social implicationsSustainability reports may increase decision-makers' understanding of consumer behaviours and societal changes. This may help in making appropriate political decisions to improve their welfare and regular smart energy consumption. Not only urban citizens, but this social advantage may also extend to urban development employees through employees' promotion, training and access to government-funded academic and professional scholarships.Originality/valueThis study is an attempt to develop current public sector performance measurement analyses in the emerging urban development field using a triadic analytical approach. This study also fed","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49547940","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":"Integrated reporting quality and sustainability performance: does firms' environmental sensitivity matter?","authors":"K. Appiagyei, A. Donkor","doi":"10.1108/jaee-02-2022-0058","DOIUrl":"https://doi.org/10.1108/jaee-02-2022-0058","url":null,"abstract":"PurposeThis study examines the effect of the environmental sensitivity of firms on the relationship between integrated reporting (IR) quality and sustainability performance. Prior research works focus on the nexus between IR quality and sustainability performance with little attention to factors that moderate this relationship.Design/methodology/approachOrdinary least squares (OLS) and other robust estimations are employed to analyse the data of firms on the Johannesburg Stock Exchange (JSE).FindingsThis study finds a positive association between IR quality and sustainability performance. However, the strength of this relationship is found to be weaker among environmentally sensitive firms, thereby raising concerns that such firms may be reporting less sustainability information with the mandatory implementation of IR on the JSE.Practical implicationsThe findings highlight the need for regulatory bodies to consider additional sustainability disclosure requirements for firms in environmentally sensitive industries.Social implicationsThe findings should make regulatory bodies aware of the possible actions of environmentally sensitive firms in relation to sustainability information within a mandatory setting of IR.Originality/valueThe study extends the existing literature on IR and sustainability performance by considering the effect of firm environmental sensitivity as a moderating factor.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45689267","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 moderating effect of women directors on the relationship between corporate social responsibility and corporate tax avoidance? Evidence from Malaysia","authors":"R. Rakia, Maali Kachouri, Anis Jarboui","doi":"10.1108/jaee-01-2021-0029","DOIUrl":"https://doi.org/10.1108/jaee-01-2021-0029","url":null,"abstract":"PurposeThis study aims to provide a valuable contribution by exploring the moderating effect of women directors on the relationship between corporate social responsibility (CSR) and corporate tax avoidance of Malaysian listed companies.Design/methodology/approachThe study is based on a sample consisting of 78 Malaysian firms over the 2010–2017 period. A moderation model that specifies the interaction between CSR, women directors and corporate tax avoidance motivates this study.FindingsThe results show that a high level of CSR is negatively associated with corporate tax avoidance in firms with a higher percentage of women on the board.Practical implicationsThe findings may be of interest to the academic researchers, investors and regulators. For academic researchers, it is interested in discovering the dynamic relation between CSR, woman on the board and tax avoidance. For investors, the results show that the existence of female directors on the board reduces the corporate tax avoidance. For regulators, the results advise the worldwide policy maker to give the importance of female roles to improve the engagement firms in CSR reporting.Originality/valueThis paper extends the existing literature by examining the moderating effect of women directors on the relationship between CSR and corporate tax avoidance in the Malaysian context.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48083680","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":"Institutional structures and strength of auditing and financial reporting standards in Africa","authors":"Vincent Adela, Mac Junior Abeka, G. Tackie, Comfort Ama Akorfa Anipa, Deborah Esi Gyanba Mbir, Cornelius Adorm-Takyi","doi":"10.1108/jaee-02-2022-0066","DOIUrl":"https://doi.org/10.1108/jaee-02-2022-0066","url":null,"abstract":"PurposeThe purpose of this paper is to investigate the effect of institutional structures on the strength of auditing and financial reporting standards.Design/methodology/approachThis paper employs a panel data of 36 African countries over the period 2000–2018. System generalised method of moments (SGMM) was employed to estimate the relationship between institutional structures and the strength of auditing and financial reporting standards in Africa.FindingsThe findings of this paper indicate a positive and statistically significant relationship between institutional structures and the strength of auditing and financial reporting standards. As a further analysis, the study finds that the relationship between institutional structures and the strength of auditing and financial reporting standards is stronger for economies with common-law accounting traditions than those with civil-law origin.Practical implicationsThe paper has important implications for countries striving to adopt and implement auditing and financial reporting standards fully. Such efforts must begin with establishing strong institutional structures in those countries.Originality/valueThis study presents the first empirical panel data evidence on the effect of institutional structures on the strength of auditing and financial reporting standards in Africa. Further, the methodology employed in this study can be regarded as effective in testing the phenomenon in other regions, or it can be employed as a guiding model for future research in the area.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2022-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46926483","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":"IFRS for SMEs adoption, corporate governance, and quality of financial statements: evidence from Dominican Republic and El Salvador","authors":"N. Sassi, Salma Damak-Ayadi","doi":"10.1108/jaee-10-2021-0348","DOIUrl":"https://doi.org/10.1108/jaee-10-2021-0348","url":null,"abstract":"PurposeThe purpose of this study is to examine the indirect relationship between the mandatory adoption of International Financial Reporting Standards for small and medium-sized enterprises (IFRS for SMEs) and the corporate governance index (CGI) by checking the mediating effect of the quality of financial statements (QFS) on this relationship.Design/methodology/approachThe main objective of the IFRS for SMEs standard is to meet the specific needs of SMEs in transition and developing economies. Here, the authors used the structural equation method to investigate SMEs in countries that mandate the application of IFRS for SMEs for the years 2010 (pre-adoption) and 2016 (post-adoption). The final sample covered two emerging countries: the Dominican Republic and El Salvador.FindingsThe results show a positive association between the adoption of IFRS for SMEs, CGI and QFS. Furthermore, the findings confirm that the relationship between IFRS for SMEs adoption and CGI is under the control of the QFS.Originality/valueThis study provides standard setters and managers of SMEs with an overview of the importance of QFS on the significance of this relationship in emerging countries. The study contributes to the literature by examining the indirect relationship between IFRS for SMEs and CGI and building a CGI that integrates a set of governance practices linked to SMEs.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2022-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47308075","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":"Political connection, family ownership and corporate philanthropy: empirical evidence from Jordan","authors":"Husam Ananzeh, M. Alshirah, A. Alshira’h, Huthaifa Al-Hazaima","doi":"10.1108/jaee-02-2022-0059","DOIUrl":"https://doi.org/10.1108/jaee-02-2022-0059","url":null,"abstract":"PurposeA key goal of this research is to examine empirically whether politically connected board members are likely to impact corporate philanthropy. A further goal of this study is to contribute to the existing literature by examining the moderating role of political connections on the relationship between family ownership and corporate donations.Design/methodology/approachBased on the content analysis approach, the authors determined the level of cash and in-kind donations made by a group of 94 non-financial Jordanian companies listed on the Amman Stock Exchange. This study examined 658 annual reports spanning over seven years from 2010 to 2016. Ordinary least squares regression (OLS) is used to test the study hypotheses. In addition, this study used the probit regression to validate those results reported by the OLS regression.FindingsCompared to unconnected companies, politically connected companies in Jordan are more likely to donate to philanthropic causes. Moreover, the results revealed that the presence of significant family ownership shareholding in a firm can weaken the firm tendency to donate. Despite this, the regression analysis results indicate that family-controlled firms with political connections are more likely to engage in charitable giving activities compared to those without political nexuses.Research limitations/implicationsThe study contributes to the conversation surrounding corporate giving and sheds light on the role political connections and ownership structure (particularly family-owned firms) play in affecting donations by firms.Practical implicationsManagers of Jordanian firms listed on the stock exchange can use the study's findings to make better decisions about their donations and other philanthropic activities.Originality/valueThis study is the first to examine the relationship between firm donations and political connections in Jordan, and how political nexuses can moderate the relationship between family ownership and corporate donations. Hence, it extends prior research significantly.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2022-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47167245","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":"Firm characteristics and forward-looking disclosure: the moderating role of gender diversity","authors":"S. I. Abdelazim, A. Metwally, S. A. S. Aly","doi":"10.1108/jaee-04-2022-0115","DOIUrl":"https://doi.org/10.1108/jaee-04-2022-0115","url":null,"abstract":"PurposeThe purpose of this study is to examine the impact of firm financial and operational characteristics on the level of forward-looking information disclosure (FLID) by Egyptian-listed non-financial companies. The present research also aims to investigate the moderating role of gender diversity on the board of directors.Design/methodology/approachThe sample incorporates the non-financial companies included in the EGX 100 of the Egyptian Stock Exchange (ESE), whose reports were available during the study period from 2013 to 2018. The final sample comprises 49 companies with 294 observations. Statistical analysis is performed using multiple regression analysis.FindingsThis study found a significant positive impact of return on assets, leverage, company size and age on the level FLID, while external audit firm type and industry were found to impact the level of FLID negatively. Further, the board gender diversity (BGD) is found to have a moderating impact as it strengthens the effect of financial and operational characteristics on the level of FLID.Practical implicationsThe present study has some implications for Egyptian companies, investors in the Egyptian market and regulators in emerging economies, which include paying more attention to BGD when selecting the board members by companies as well as following up the female representation in all the listed companies by regulators.Originality/valueTo the best of the authors’ knowledge, this is the first study to investigate the moderating role of BGD and its impact on the level of FLID in emerging markets. This extends the disclosure literature as the present study brings new evidence from an emerging market regarding BGD moderating role as early research concentrated on the direct impact of BGD on the level of FLID.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49585169","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":"Profit, cash flow, and leverage: the case of ASEAN stock market performance during the COVID-19 pandemic","authors":"Yulianti Abbas, Y. Nainggolan","doi":"10.1108/jaee-09-2021-0294","DOIUrl":"https://doi.org/10.1108/jaee-09-2021-0294","url":null,"abstract":"PurposeThe coronavirus disease 2019 (COVID-19) outbreak in the first quarter of 2020 has caused a severe decline in stock markets worldwide. While prior studies in developed markets found that workplace closure can negatively impact the capital market (e.g. Ozili and Arun, 2020), lesser is known about how it impacts emerging capital markets, which may have different characteristics and behaviour (Harjoto et al., 2021). Hence, this study seeks to uncover stock performance around workplace closure dates of firms incorporated in ASEAN countries and investigates the role of accounting fundamentals in mitigating workplace closure policy's effects on stock performances.Design/methodology/approachUsing an event study methodology, the authors measure the cumulative abnormal returns (CARs) around workplace closure dates. The authors then use cross-sectional analysis to analyse whether the accounting fundamentals, specifically profitability, cash flow, and leverage, are associated with the CAR. This cross-sectional study involves 1,720 firms that are incorporated in the ASEAN countries.FindingsThis analysis indicates that, on average, ASEAN capital markets react negatively to workplace closure policies. The authors then find that the CARs around workplace closure dates are positively associated with the current ratios and are negatively associated with long-term debt ratios. This study’s results thus indicate that firms with a higher liquidity and a higher solvency experience a less adverse impact of the COVID-19 pandemic than other firms. The authors also find that the associations are more robust for (1) firms in industries more affected by COVID-19 and (2) firms located in countries with more severe cases. Additionally, contrary to this study’s expectation, the authors do not find meaningful associations between CARs around workplace closure dates and firms' cash flow from operation and profit respectively. This study’s results suggest that investors view prior performances related to firms' ability to generate operating cash flow and profit as less relevant to measure firm performance around the workplace closure event.Research limitations/implicationsThis study’s results contribute to studies examining fundamental accounting roles during the COVID-19 era, specifically in emerging economies. The findings are critical for investors in understanding the company fundamentals associated with stock price performance in emerging markets during the recent health-related crisis.Originality/valueMost studies analysing cross-sectional differences in stock returns during the COVID-19 era focus on industry-level differences and use observations from developed markets (Sinagl, 2020; Ramelli and Wagner, 2020). Studies using firm-level analysis in emerging markets are still limited. The authors expand prior studies by using firm-level analysis that spans six countries in ASEAN.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2022-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43501161","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":"Integrating S-ERP systems and lean manufacturing practices to improve sustainability performance: an institutional theory perspective","authors":"M. Abobakr, M. Abdel-Kader, Ahmed F. Elbayoumi","doi":"10.1108/jaee-10-2020-0255","DOIUrl":"https://doi.org/10.1108/jaee-10-2020-0255","url":null,"abstract":"PurposeThis paper aims to investigate the impact of integrating Sustainable Enterprise Resource Planning (S-ERP) systems and lean manufacturing (LM) practices on sustainability performance, especially in Egypt as an emerging country.Design/methodology/approachThe authors carried out an experimental study with a sample of 144 professional accountants of MPA, MBA and DBA students at two of the top universities in Egypt.FindingsThe results provide significant evidence that the integration of S-ERP systems and LM practices implementation improve sustainability performance. However, there is no significant evidence that S-ERP adoption contributes to the success of LM practices implementation.Research limitations/implicationsBecause of the chosen research approach, this study is limited to use of a laboratory experiment design. Empirical evidence based on quasi experiments on a field setting would add value to the current literature.Practical implicationsFindings provide practical insights for the manufacturing sector managers into the benefits of integrating S-ERP systems and LM practices for sustainability performance improvement (e.g. reducing cost and waste, increasing operational efficiency). For ERP vendors, findings highlight how ERP vendors introduce “enablers” that incorporate LM best practices into their ERP systems and also how those vendors conform to the software sustainability criteria in the design of ERP applications.Originality/valueContrary to previous studies that addressed the individual impact of S-ERP systems and LM practices on performance, this paper experimentally gives an indication of the impact of concurrent implementation of S-ERP and LM practices on sustainability performance, especially in developing countries.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2022-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48441298","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}