Pacific Accounting Review最新文献

{"title":"Earnings management, market liquidity and capital access of seasoned equity firms in a transition economy","authors":"B. Le, N. Reddy, Paula Hearn Moore","doi":"10.1108/par-09-2022-0142","DOIUrl":"https://doi.org/10.1108/par-09-2022-0142","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the effects of market liquidity on earnings management (EM) of seasoned equity offering (SEO) firms considering external capital access.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses a panel data set of 158 Vietnamese SEO firms from 2007 to 2019. Both real and accrual EM measures are analysed. The study uses two proxies for market liquidity: stock turnover (the ratio of total shares traded over the year divided by total shares outstanding for the year) and high–low spread (estimated following Corwin and Schultz [2012]) and fixed-effects panel and two-stage least squares regression in the analysis.\u0000\u0000\u0000Findings\u0000Firms with high (low) market liquidity report low (high) EM, and the result is robust after controlling for endogeneity. The results hold for both real and accrual-based EM for both market liquidity proxies. However, the results are robust only for firms with low external capital access and non-state-owned companies. The authors find a negative market reaction to earnings manipulation.\u0000\u0000\u0000Practical implications\u0000This study’s findings help policymakers, investors and managers make better decisions regarding SEO firms and reduce the risk of inaccurate information due to EM.\u0000\u0000\u0000Originality/value\u0000Among the few studies that test the influence of market liquidity on EM, to the best of the authors’ knowledge, this study is the first to examine the effect of market liquidity on EM in the context of SEO firms considering the impact of capital access.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43523804","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":"Accounting and religious influence in the seventh day Adventist church in the Pacific islands","authors":"C. Kuma, Peni Fukofuka, S. Yong","doi":"10.1108/par-03-2021-0040","DOIUrl":"https://doi.org/10.1108/par-03-2021-0040","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate the practice of accounting in the Seventh-day Adventist church of the Pacific Islands and pays particular attention to the coexisting of two control devices: accounting and religion.\u0000\u0000\u0000Design/methodology/approach\u0000This paper implemented a qualitative field study design collecting interview data from church members from the Solomon Islands, Tonga and Fiji. Data were also collected through focus group discussions, document reviews, website analysis and participant observations. Pierre Bourdieu’s thinking on symbolic violence, doxa and capital are used to interpret the findings.\u0000\u0000\u0000Findings\u0000This paper’s main contribution shows that while there is a divine and profane divide, social agents, given their agency, can move back and forth from one side of the divide to the other. Accounting as a control device does not include features such as faith, which is helpful for decision-making; accordingly, religion is relied upon when it comes to decision-making. In contrast, accounting has features that are useful for stewardship purposes. Accordingly, when it comes to the church’s stewardship function accounting in the form of financial reports is relied upon.\u0000\u0000\u0000Research limitations/implications\u0000Pacific Island culture almost permeates all facets of life, including church life; however, this study did not clarify this. Later studies can explore the implications of culture on the deployment of accounting in a religious setting.\u0000\u0000\u0000Practical implications\u0000This rich empirical study describes the control dynamics and the tension between accounting and religion in a religious organisation. Accounting needs to adapt to churches’ unique characteristics, whereby religious/doctrinal beliefs must be accounted for and respected. Unlike in the corporate world, accountants in churches cannot fully practice their training or exercise the kind of influence they usually hold in organisations due to their religious belief systems.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this research is one of a few studies on the religion-accounting relationship. While the focus of earlier studies was generally on a secular and sacred divide, this study looks at coexisting of accounting and religion. This study adds to the sparse literature on accounting and religion and their controlling influence.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47168853","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":"Peers’ media coverage releases and investor heterogeneity","authors":"Jiaxin Duan, Yixin (Lucy) Wei, Lei Lu","doi":"10.1108/par-08-2022-0110","DOIUrl":"https://doi.org/10.1108/par-08-2022-0110","url":null,"abstract":"Purpose This study aims to examine the behaviour of institutional and retail investors in response to news about industry leaders (peer firms) and to determine its impact on the stock prices of other firms (focal firms) within the same industry. Design/methodology/approach The study investigates the impact of peer news on investor behaviour of Chinese A-shares listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2019. The media coverage of industry leaders is sourced from prominent Chinese online financial outlets and the Chinese Financial Press. Support vector machine is applied to identify the positive, neutral and negative news within the articles. The study uses event study and logistic regression to examine the effects of peer news on focal firms’ investor behaviour. Findings The results show that both good and bad news about leaders cause peers’ stock prices to increase initially, but then reverse within one quarter. Further analysis reveals that when leaders’ shares receive positive news coverage, institutional investors tend to exert excessive abnormal buying pressure on peers’ shares, resulting in overreactions. Conversely, retail investors do not actively trade on peers on leaders’ news day due to limited attention. In addition, the study shows that short-selling constraint inhibits bad news from reflecting in the stock prices. Originality/value The study highlights differences in investor behaviour. The finding that institutional investors tend to overreact more to peer firms’ news when focal firms are smaller and have a lower frequency of information disclosure supports the salient theory. This is consistent with the previous framework that suggests overreaction is more pronounced when it is difficult to combine external sources of information to evaluate the focal firms. In contrast, retail investors do not engage in active trading on peers on leaders’ news day due to the limited attention theory.","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136066139","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 auditors respond when listed firms pledge shares? Evidence from China","authors":"Kitty Mo Kong, H. Huang","doi":"10.1108/par-08-2022-0127","DOIUrl":"https://doi.org/10.1108/par-08-2022-0127","url":null,"abstract":"\u0000Purpose\u0000This paper investigates whether the audit fees of Chinese listed firms are associated with the share pledging practice of the firm’s controlling shareholders.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses the audit pricing model to estimate the association between the share pledging of listed firms and audit fees. Cross-sectional analysis is conducted on a large sample of Chinese listed firms during the period 2004 to 2019. The authors further test the moderating effects of listing on the Main Board, state ownership and abnormal audit report lag on the association between share pledging and audit fees. The results remain robust to various endogeneity tests including two-stage least squares instrumental variable analysis, entropy balancing analysis and difference-in-difference analysis.\u0000\u0000\u0000Findings\u0000The study finds that audit fees are positively associated with the proportion of shares pledged by the listed firm’s controlling shareholder in China. The results also provide new evidence that the positive association between audit fees and the share pledging of controlling shareholders could be mitigated if the firm is listed on the Main Board and/or it is a state-owned enterprise. In contrast, pledged firms with abnormal audit report lag are found to have higher audit fees than their pledged counterparts without the excessively long audit delay.\u0000\u0000\u0000Practical implications\u0000Findings of this study have important practical implications to those charged with governance, as boards need to comprehensively understand the adverse consequences of share pledging when pursuing it as the firm’s major source of financing. The study also has policy implications for stock market regulators such as the China Securities Regulatory Commission in China. Regulators could consider developing a threshold-based share pledging disclosure and pledge ratio requirements based on factors such as a firm’s listing status and ownership structure.\u0000\u0000\u0000Originality/value\u0000This study provides new evidence on the audit-related consequences of share pledging in a significant capital market. Findings of this study also enrich the existing audit literature by introducing the share pledging activities of controlling shareholders into the audit pricing decision-making model.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43528756","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 adjustments and the discontinuity in earnings distribution around zero","authors":"C. Lim, Themin Suwardy, T. Zhang","doi":"10.1108/par-09-2022-0141","DOIUrl":"https://doi.org/10.1108/par-09-2022-0141","url":null,"abstract":"\u0000Purpose\u0000Previous research in auditing has used the probability of small profits or losses as a measure of audit quality. The purpose of this paper is to investigate the validity of the underlying assumption in prior audit literature that auditing mitigates clients’ inclination towards loss avoidance and to shed light on the debate regarding earnings discontinuity.\u0000\u0000\u0000Design/methodology/approach\u0000This paper compares the discontinuity in earnings distribution around zero, both before and after auditing.\u0000\u0000\u0000Findings\u0000Using a unique data set that contains both recorded and waived adjustments, the authors find that audit adjustments do not reduce the discontinuity in earnings distribution around zero.\u0000\u0000\u0000Research limitations/implications\u0000The results advise caution in using the probability of small profits or losses as a measure of audit quality. The findings suggest the discontinuity in earnings around zero may not be caused by loss avoidance achieved through accounting misreporting, which falls under the purview of auditing.\u0000\u0000\u0000Originality/value\u0000This research makes unique contributions beyond those of prior studies. By incorporating waived adjustments, the authors are able to conduct more comprehensive tests and explore richer details of audit adjustments that were not available in previous studies. The proportion of losses in this study's sample aligns with that in prior US research, which enhances the generalisability of the authors’ findings and minimizes the influence of inherent discrepancies in auditors' motivations to curb loss avoidance.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47262315","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":"Auditing during a pandemic – can continuous controls monitoring (CCM) address challenges facing internal audit departments?","authors":"Kishore Singh, P. Best","doi":"10.1108/par-07-2022-0103","DOIUrl":"https://doi.org/10.1108/par-07-2022-0103","url":null,"abstract":"\u0000Purpose\u0000During a pandemic, with businesses implementing social distancing protocols and work-from-home strategies, the use of continuous controls monitoring (CCM) may add value to the internal audit function. This study aims to examine the use of CCM technologies and the impact on the internal audit function during a pandemic.\u0000\u0000\u0000Design/methodology/approach\u0000This study adopted a case study approach for this study because it focuses on questions of “how” and “what.” Case studies provided an opportunity for an in-depth analysis of the phenomena being investigated. Semi-structured interviews were used to collect data. This study did not use sampling. Instead, multiple case studies were used for data collection.\u0000\u0000\u0000Findings\u0000Based on the findings, this study makes several contributions to the literature, for example, in health-care evidence suggests the pandemic has caused internal audit to focus on risk areas. Other industries, such as retail, have invested in CCM. However, in all cases, education and preparedness (or the lack thereof) appeared to significantly influence uptake of CCM. Organizations that made prior investments in CCM technologies experienced greater acceptance in the face of changing demands. Training in emerging technologies is a key competency in supporting audit operations in changing environments.\u0000\u0000\u0000Research limitations/implications\u0000As the study was conducted with a small sample of cases, findings cannot be extrapolated nor generalized beyond the case study organizations.\u0000\u0000\u0000Practical implications\u0000This study found that several factors limit adoption, exploitation and further development of CCM technologies, such as lack of top management support, acceptance of CCM technologies and suitable education and training of internal audit staff.\u0000\u0000\u0000Originality/value\u0000This study addresses the issue of the value that CCM offers organizations and whether it is a silver bullet that the internal audit profession needs, particularly when physical access to organizations may be restricted. The COVID-19 pandemic placed considerable focus on digital access. Better IT systems and more data will allow organizations to better support employees, inform strategic and financial decisions and engage stakeholders. During the recovery phase, leveraging investments in CCM technologies will contribute to internal audits’ ability to help clients to manage organizational risk.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43080940","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 effect of audit inspections on audit fees","authors":"D. Hay, E. Rainsbury, Debbie Van Dyk","doi":"10.1108/par-02-2023-0017","DOIUrl":"https://doi.org/10.1108/par-02-2023-0017","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to examine the cost of the introduction of independent audit inspections in New Zealand.\u0000\u0000\u0000Design/methodology/approach\u0000The research is conducted using audit fee data from New Zealand and examines the overall impact of the reforms on the cost imposed on auditees.\u0000\u0000\u0000Findings\u0000The findings show that there was no general increase in audit fees but a significant increase in audit fees for small listed companies compared to audit fees for unlisted companies and large listed companies.\u0000\u0000\u0000Practical implications\u0000The practical implications of this study suggest that the introduction of independent inspections led to increased costs for some clients, particularly smaller listed companies, and that audit firms were able to pass on these costs to their clients. These results have important implications for policymakers and auditors alike.\u0000\u0000\u0000Originality/value\u0000This study provides new insights into the cost of the introduction of independent audit inspections, which have been the subject of ongoing criticisms and recommendations for improvement.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46518377","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":"Social distinctions of directors and firm performance","authors":"S. Ramachandra, A. Rahman","doi":"10.1108/par-02-2022-0026","DOIUrl":"https://doi.org/10.1108/par-02-2022-0026","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the effects of the social distinction of company directors on firm performance.\u0000\u0000\u0000Design/methodology/approach\u0000The social distinction of company directors adds to the firm’s reputation, allowing the firm to access resources and privileges. The indicators of social distinction this study uses are the prenominal titles of directors in Malaysian companies. As Malaysian companies are known to have directors with political connections and the prenominal titles can be intertwined with these connections, to ascertain the effects of social distinction on firm performance, this study examines whether social distinctions proxy and complement political connections in improving firm performance. This study uses Tobin’s Q (TQ) for longer-term performance and gross sales for current-year performance.\u0000\u0000\u0000Findings\u0000This study finds evidence to suggest that the impact of higher-order titles on Tobin’s Q and sales is greater in politically unconnected firms than in connected firms. This study also finds evidence to suggest that higher-order titles amplify the effect on Tobin’s Q in politically connected firms, whereas lower-order titles amplify sales, both moderated by firm-age. The findings shed light on the mediating variables that contribute to the above, and are robust for alternative performance measures, and account for endogeneity concerns.\u0000\u0000\u0000Research limitations/implications\u0000The results are generalisable only to countries where social distinctions are of significance.\u0000\u0000\u0000Practical implications\u0000Future research on political connections should consider social connections that affect firms. Also, such research should prompt the awarders of titles to prohibit the use of titles for pecuniary motives to minimise market imperfections.\u0000\u0000\u0000Originality/value\u0000Adding to the prior literature on the characteristics of directors and firm performance, this study shows that the social distinctions of directors do matter.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44259039","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":"Stock price crashes in China: an artificial neural network approach","authors":"Le Wang, Liping Zou, Ji Wu","doi":"10.1108/par-08-2022-0121","DOIUrl":"https://doi.org/10.1108/par-08-2022-0121","url":null,"abstract":"\u0000Purpose\u0000This paper aims to use artificial neural network (ANN) methods to predict stock price crashes in the Chinese equity market.\u0000\u0000\u0000Design/methodology/approach\u0000Three ANN models are developed and compared with the logistic regression model.\u0000\u0000\u0000Findings\u0000Results from this study conclude that the ANN approaches outperform the traditional logistic regression model, with fewer hidden layers in the ANN model having superior performance compared to the ANNs with multiple hidden layers. Results from the ANN approach also reveal that foreign institutional ownership, financial leverage, weekly average return and market-to-book ratio are the important variables when predicting stock price crashes, consistent with results from the traditional logistic model.\u0000\u0000\u0000Originality/value\u0000First, the ANN framework has been used in this study to forecast the stock price crashes and compared to the traditional logistic model in the world’s largest emerging market China. Second, the receiver operating characteristics curves and the area under the ROC curve have been used to evaluate the forecasting performance between the ANNs and the traditional approaches, in addition to some traditional performance evaluation methods.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42943569","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":"Chevron Australia and Tax Justice Network: a case of rhetoric","authors":"Walid El Hamad, Lee Moerman, Sanja Pupovac","doi":"10.1108/par-04-2022-0059","DOIUrl":"https://doi.org/10.1108/par-04-2022-0059","url":null,"abstract":"\u0000Purpose\u0000This paper aims to use rhetorical theory to understand how actors mobilise persuasive communication to justify the arguments for and against transfer pricing and tax management schemes in an international context. The strategic adoption of transfer pricing by transnational corporations is controversial since it affects wealth transfers.\u0000\u0000\u0000Design/methodology/approach\u0000This paper adopts a micro-rhetorical analysis of submissions to a recent government Inquiry in Australia based on Aristotle's appeals of logos, ethos and pathos. The arguments used by Chevron Australia, and its protagonist civil society organisation, the Tax Justice Network highlight the vexed nature of tax management schemes.\u0000\u0000\u0000Findings\u0000Transfer pricing (TP) is more than a mere technical practice, as it involves wealth transfers initiated by powerful economic players. From a neoliberal justification of fair markets and shareholder wealth maximisation, the moral ambiguity is attenuated because it is accepted as a normative social ideal.\u0000\u0000\u0000Originality/value\u0000Prior studies on TP and tax schemes are primarily theoretical and conceptual. This paper adopts a rhetorical approach which provides important insights into the communication devices used to legitimate taken-for-granted ideas about corporate actions.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":"1 1","pages":""},"PeriodicalIF":2.1,"publicationDate":"2023-03-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41554529","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}