Pacific Accounting Review最新文献

{"title":"Correlation between distribution of cash dividends from capital reserves, ultimate controlling shareholders and corporate governance","authors":"Yen-Yu Liu, Pin Lee, Chih-Hao Yang","doi":"10.1108/par-05-2021-0075","DOIUrl":"https://doi.org/10.1108/par-05-2021-0075","url":null,"abstract":"\u0000Purpose\u0000This study aims to discuss whether a new accounting policy can help enterprises withstand operating risks and whether corporate governance can play a supervisory role. Taiwan took the lead worldwide in allowing companies to distribute cash dividends from capital reserves. Compared with traditional cash dividends distributed from retained earnings, this move was aimed at maintaining the stability of cash dividends and helping listed companies address the risks of temporary downturns. However, the distribution of cash dividends from capital reserves may violate the principle of capital maintenance and damage creditors’ equity. The authors sought to examine whether corporate governance could play a supervisory role.\u0000\u0000\u0000Design/methodology/approach\u0000The present study targeted Taiwanese listed companies and cited data from the Taiwan Economic Journal. The study period was from 2011–2019. The authors tested the hypotheses using the least square method.\u0000\u0000\u0000Findings\u0000The results showed that ultimate controlling shareholders of listed companies can maximize their own interests through ownership arrangements, whereas corporate governance cannot play a supervisory role nor protect creditors’ equity. The findings provide insight on whether, in the development process of corporate governance, appropriate measures are taken to protect creditors’ equity in addition to shareholders’ equity, or achieve a good coordination of interests among all stakeholders.\u0000\u0000\u0000Originality/value\u0000The ultimate controlling shareholders or directors of a listed company would seek to maximize their own interests, and transfer the operating risks to creditors through the arrangement of dividend policy, thus harming creditors’ equity. However, independent directors cannot play a supervisory role. The authors inferred that corporate governance standards previously focused on the shareholder level or alleviation of the agency problem between controlling shareholders and non-controlling shareholders but ignored creditors’ equity.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2022-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46443127","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 international work experience, functional background and career concerns on CEO investment decisions","authors":"C. Peng, S. Chiu","doi":"10.1108/par-02-2021-0026","DOIUrl":"https://doi.org/10.1108/par-02-2021-0026","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to investigate the effects of chief executive officer (CEO) international work experience, functional background and career concerns on managerially-distorted investment decisions.\u0000\u0000\u0000Design/methodology/approach\u0000This paper focuses on S&P 500 publicly held US manufacturing companies during the period from 2009 to 2012. The data related to the CEOs’ international experience and their functional background experience are manually collected from Business Week’s Corporate Elite. Financial data is retrieved from COMPUSTAT database. The data for CEO tenure and age are retrieved from the ExecuComp database. Besides ordinary least squares regression, this paper conducts two-stage least squares regression analysis. Endogeneity and additional tests are also considered in this paper.\u0000\u0000\u0000Findings\u0000The findings show that CEO international work experience may not reduce under-investment, but it may exacerbate over-investment. CEO throughput functional background may exacerbate under-investment, but it may not reduce over-investment. Furthermore, CEO career concerns are useful in reducing the inefficient investments caused by international work experience and throughput functional background. These results remain similar when potential self-selection bias, as well as alternative measures of career concerns and investment efficiency, are considered.\u0000\u0000\u0000Originality/value\u0000This paper contributes to the existing literature in the following ways: first, while a significant amount of attention has been paid to how investment decisions are affected by financial reporting quality and material internal control weaknesses, there has been little evidence accumulated related to how managers’ international experience, professional background and career concerns affect investment inefficiency. The authors attempt to fill this gap. Second, the authors manually collect the international experience and functional backgrounds of CEOs working for S&P 500 US manufacturing companies. This unique data set makes it possible to complement previous studies by investigating the effects of managerial international experience and functional background on investment behavior. Finally, previous theoretical studies have long recognized that managers’ career concerns affect their corporate investment decisions. These studies suggest that young CEOs have a greater incentive to signal their abilities by adopting more active and possibly riskier investment strategies, thus raising the moral hazard problem with regard to firm investments. The authors enrich these studies by showing that work experience alleviates the moral hazard problem with respect to young CEOs’ investment decisions.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2022-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42660536","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":"Changes in the effect of corporate tax avoidance on the cost of debt over the past 25 years","authors":"Sungsil Lee","doi":"10.1108/par-03-2021-0031","DOIUrl":"https://doi.org/10.1108/par-03-2021-0031","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine how the effect of corporate tax avoidance on the cost of debt has changed in the period 1993–2017. Although it is known that tax avoidance has significantly increased during this period (Dyreng <em>et al.</em>, 2017), little evidence exists on how this change alters the effect of tax avoidance on the cost of debt. This study investigates how changes in tax avoidance modify the association between tax avoidance and the cost of debt.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>By using a comprehensive sample of 15,825 loan facilities issued to US public firms in the period 1993–2017, this study tests the time-series changes in the association between tax avoidance and the cost of debt.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>This study finds that a positive association between tax avoidance and the cost of debt has been declined over the past 25 years. Accordingly, tax avoidance in general no longer increases the loan spread after the enactment of domestic production activities deduction. However, the risker end of tax avoidance does still increase the loan spread.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study spotlights the time-series changes in the effect of corporate tax avoidance on the cost of debt, showing how lenders perception on corporate tax avoidance has altered in accordance with changes in corporate tax practice.</p><!--/ Abstract__block -->","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":"18 49","pages":""},"PeriodicalIF":2.1,"publicationDate":"2022-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138518334","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 firms’ talent management practices: perceived importance and its impact on auditors’ performance","authors":"Ramesh Ruben Louis, Noor Adwa Sulaiman, Z. Zakaria","doi":"10.1108/par-12-2020-0206","DOIUrl":"https://doi.org/10.1108/par-12-2020-0206","url":null,"abstract":"\u0000Purpose\u0000Prior literature on talent management (TM) in the audit setting has suggested several practices that may affect auditors’ performance. However, the study is limited in terms of a measurable set of comprehensive constructs of TM in the audit setting, as well as the impact of comprehensive TM constructs on auditors’ performance. Thus, the purpose of this study is to examine TM practices perceived to be important by auditors for auditors’ performance.\u0000\u0000\u0000Design/methodology/approach\u0000Data were obtained from 307 survey questionnaires received from auditors of large- as well as small- and medium-sized firms.\u0000\u0000\u0000Findings\u0000The study respondents perceived TM attributes related to supervision and review practices as the most vital for auditors’ performance. This category was followed by attributes related to ethics management practices along with training and development. The findings reveal that respondents generally perceived lower significance for attributes pertaining to work–life balance (WLB) and establishing a TM policy for auditors’ performance. While both top management and staff members of audit firms regarded WLB and establishing a TM policy to be of lower significance, top management placed greater importance on attributes related to ethics management, while staff perceived training and development attributes to be more critical.\u0000\u0000\u0000Originality/value\u0000This study examined a comprehensive set of TM practices (establishing a TM policy, recruitment, ethics management, training and development, supervision and review, remuneration, WLB and succession planning) and assessed the perceptions of audit practitioners on the significance of these practices on auditors’ performance.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2022-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47560157","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":"Bridging the employability skills gap: going beyond classroom walls","authors":"L. Tan, Fawzi Laswad, F. Chua","doi":"10.1108/par-04-2021-0050","DOIUrl":"https://doi.org/10.1108/par-04-2021-0050","url":null,"abstract":"Purpose\u0000Employability skills are critical for success in the workplace, even more so in this era of globalisation of economies and advancement in technologies. However, there is ample evidence of the gap between the skills acquired by graduates at universities and the skills expected by employers in the workplace. Applying the modes of grasping and transforming the experience embodied in Kolb’s experiential learning theory (ELT) (1976, 1984), the purpose of this paper is to examine the development of employability skills of accountancy students through their involvement in two extracurricular activities: community accounting and an accountancy club.\u0000\u0000\u0000Design/methodology/approach\u0000Underpinned by Kolb’s (1976, 1984) four modes of ELT and work-integrated learning to develop professional competencies required for future work, an online survey of accounting students was conducted to assess their reflections on involvement in these two aforementioned extracurricular activities over a two-year period.\u0000\u0000\u0000Findings\u0000The findings indicate that the students had developed useful cognitive and behavioural skills from their participation in these extracurricular activities. These findings are consistent with the literature on internships and service-learning, both of which have been associated with transferable skills development.\u0000\u0000\u0000Originality/value\u0000Prior studies focused on in-classroom learning activities or internships to help students develop various essential skills required in the workplace. However, extracurricular activities have received little attention in the accounting education literature. This study provides insights into skills accounting students can gain from extracurricular participation in community accounting and an accountancy club.","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48525782","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Does the expertise of outsourced IAF providers affect audit efficiency? Empirical evidence from an emerging market","authors":"S. Baatwah, W. Omer, Khaled Salmen Aljaaidi","doi":"10.1108/par-04-2021-0044","DOIUrl":"https://doi.org/10.1108/par-04-2021-0044","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the effect on audit efficiency of outsourced internal audit function (IAF) providers with industry and/or firm-specific expertise. Drawing on relevant studies from external and internal audit literature, the authors assume that such IAF providers are associated with greater audit efficiency as proxied by audit report lag and audit fees.\u0000\u0000\u0000Design/methodology/approach\u0000Based on a sample of firms listed on the Omani capital market during 2005–2019, the pooled regressions are used to test the developed hypotheses. The authors use the market share approach to identify outsourced IAF industry expertise providers and tenure to measure the firm-specific expertise of outsourced IAF providers.\u0000\u0000\u0000Findings\u0000The authors find that industry outsourced IAF providers are not associated with shorter audit report lag and lower audit fees. The authors also find that firm-specific expertise outsourced IAF providers are associated with a greater reduction in audit report lag and audit fees. These conclusions are robust under a battery of analyses. The significant contribution of firm-specific expertise outsourced IAF providers to audit efficiency is incremental when abnormal audit report lag and audit fees analysis is conducted.\u0000\u0000\u0000Originality/value\u0000The results are the first to attest to the contribution of outsourced IAF with firm-specific expertise. They also show that industry expertise held by outsourced IAF providers does not contribute to audit efficiency.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47481570","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 effects of state ownership and tax rate cuts on accounting conservatism: evidence from Vietnam","authors":"B. Le, Paula Hearn Moore","doi":"10.1108/par-12-2020-0209","DOIUrl":"https://doi.org/10.1108/par-12-2020-0209","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to examine the joint effects of state ownership and tax rate cuts on accounting conservatism, considering the different levels of foreign ownership in the context of Vietnam.\u0000\u0000\u0000Design/methodology/approach\u0000The paper uses ordinary least squares regressions and a data set of 405 firms covering the period 2007 to 2019. The manuscript uses three measures of accounting conservatism: Basu’s 1997 timeliness of earnings, Basu’s 1997 earnings persistence and the book-to-market ratio.\u0000\u0000\u0000Findings\u0000State-owned enterprises (SOEs) adopt less accounting conservatism than non-SOEs; however, the result is only robust in firms with foreign ownership being lower than the foreign ownership median. Firms increase accounting conservatism in the year immediately prior to the year that the tax rate cuts become effective. An SOE possesses an unusual conflict both as a taxpayer and in having its controlling interest held by the government, which is both a tax creator and a tax collector. Interestingly, the increase in accounting conservatism prior to the year of the tax rate cuts is more pronounced for non-SOEs than SOEs.\u0000\u0000\u0000Practical implications\u0000This research is beneficial to investors and policymakers where the government is both the taxpayer and tax collector and in emerging markets where foreign investment is local firms’ important financing.\u0000\u0000\u0000Originality/value\u0000To the best knowledge, this study is the first in examining the joint effects of state control and tax rate cuts on accounting conservatism.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48109678","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":"Guest editorial","authors":"David K. Ding, Julie Harrison, Martien Lubberink, Chris Van Staden","doi":"10.1108/par-10-2021-0171","DOIUrl":"https://doi.org/10.1108/par-10-2021-0171","url":null,"abstract":"In this regard, the UN is concerned that the COVID-19 pandemic may “increase inequality, exclusion, discrimination and unemployment in the medium and long term”, since there is evidence that vulnerable groups in society (including poor people and indigenous peoples) face the health and economic impacts of the virus disproportionately (UN, 2021). In the light of the urgency of the climate change crisis, see for example the IPCC report of 2021 (IPCC, 2021), it is important to continue this momentum towards a lower carbon economy. [...]as accounting and finance educators, we need to assess what impact the changes in the professions and the nature of work will have on how our students are educated. The authors examine this policy change in the context of the wider history of the accounting for deferred taxes in New Zealand and show how it had an immediate, material impact on company financial statements.","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43981132","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 emerging technologies on accounting curriculum and the accounting profession","authors":"T. Wang","doi":"10.1108/par-05-2021-0074","DOIUrl":"https://doi.org/10.1108/par-05-2021-0074","url":null,"abstract":"\u0000Purpose\u0000In this commentary, the author uses the development of data analytics curriculum at DePaul University as an example to highlight possible challenges and share the experience. In addition, seven different possible future research directions are identified so the readers are able to understand more about the impact of emerging technologies on the accounting profession and accounting curriculum.\u0000\u0000\u0000Findings\u0000Challenges and experience when developing data analytics curriculum at DePaul University are discussed. In addition, seven different possible future research directions are identified so the readers are able to understand more about the impact of emerging technologies on the accounting profession and accounting curriculum.\u0000\u0000\u0000Originality/value\u0000This paper expresses the author’s viewpoints regarding the impact of emerging technologies on accounting curriculum and the accounting profession.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47827641","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":"Gross profit manipulation in emerging economies: evidence from India","authors":"Mani Bansal, Ashok Kumar, Vivek Kumar","doi":"10.1108/par-06-2020-0083","DOIUrl":"https://doi.org/10.1108/par-06-2020-0083","url":null,"abstract":"\u0000Purpose\u0000This study aims to explore peer performance as the motivation behind gross profit manipulation through two different channels, namely, cost of goods sold (COGS) misclassification and revenue misclassification.\u0000\u0000\u0000Design/methodology/approach\u0000Gross profit expectation model (Poonawala and Nagar, 2019) and operating revenue expectation model (Malikov et al., 2018) are used to measure COGS and revenue misclassification, respectively. The panel data regression models are used to analyze the data for this study.\u0000\u0000\u0000Findings\u0000The study results show that firms engage in gross profit manipulation to meet the industry’s average gross margin, implying that peer performance is an important benchmark that firms strive to achieve through misclassification strategies. Further results exhibit that firms prefer COGS misclassification over revenue misclassification for manipulating gross profit, implying that firms choose the shifting strategy based on the relative advantage of each shifting tool.\u0000\u0000\u0000Practical implications\u0000The findings suggest that firms that just meet or slightly beat industry-average profitability levels are highly likely to engage in classification shifting (CS). Thus, investors and analysts should be careful when evaluating such firms by comparing them with other firms in the same industry.\u0000\u0000\u0000Originality/value\u0000First, this study is among earlier attempts to investigate CS motivated by peer performance. Second, this study investigates both tools of gross profit manipulation by taking a uniform sample of firms over the same period and provides compelling evidence that firms prefer one shifting tool over another depending on the relative advantage of each shifting tool.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41527492","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}