Journal of Applied Accounting Research最新文献

{"title":"Non-performing loans and bank performance: what role does corporate social responsibility play? A system GMM analysis for European banks","authors":"Rim Boussaada, A. Hakimi, Majdi Karmani","doi":"10.1108/jaar-10-2021-0283","DOIUrl":"https://doi.org/10.1108/jaar-10-2021-0283","url":null,"abstract":"PurposeThis research investigated whether corporate social responsibility (CSR) can alleviate the negative effect of non-performing loans (NPLs) on bank performance.Design/methodology/approachThe research employed a sample of European banks over the 2008–2017 period. To resolve endogeneity and heterogeneity problems, the system generalized method of moments (SGMM) model was employed.FindingsFirst, bank NPLs were negatively and significantly associated with bank performance as measured by the Q-Tobin ratio and the return on assets (ROA). Second, CSR scores exerted a negative and significant effect on the level of NPLs. Finally, the results indicated that bank performance could benefit from the interactional effect of CSR and NPLs.Research limitations/implicationsThis study fills the gap in the debate over the mediating role of CSR in the NPLs – bank performance interrelation. In addition, our SGMM analysis yielded more robust and efficient results while resolving endogeneity and heterogeneity problems concerning CSR and bank performance or risk in corporate finance.Practical implicationsCSR practices can play an essential mediating role in the NPLs–bank performance relationship. CSR activities in the European context may reduce the level of NPLs and increase bank performance.Originality/valueTo the best of the authors’ knowledge, studies of the implications of CSR activities on the banking sector are very limited. Indeed, this paper shows that CSR mediates the relationship between CSR practices and NPLs. The results suggest that bank performance could benefit from the interactional effect of CSR and NPLs.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-03-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42058461","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 corporate environmental performance affect corporate biodiversity reporting decision? The Finnish evidence","authors":"P. Dutta, Anupam Dutta","doi":"10.1108/jaar-06-2022-0148","DOIUrl":"https://doi.org/10.1108/jaar-06-2022-0148","url":null,"abstract":"PurposeThis study aims to examine whether there exists any relationship between corporate biodiversity reporting decision (CBRD) and corporate environmental performance (CEP).Design/methodology/approachThe primary sample contains 442 firm-year observations over a period of 13 years (2008–2020) for 34 listed Finnish companies. Based on both legitimacy theory and voluntary disclosure theory, 2 logit regression models are estimated to test the CBRD–CEP nexus. CBRD is a dichotomous variable. Three proxies for CEP, namely propensity to emit greenhouse gas (GHG), propensity to consume water and propensity to generate waste are employed.FindingsThis study finds that firms having higher propensity to consume water and generate waste are inclined to release biodiversity-related information. The findings support legitimacy theory suggesting that firms with inferior environmental performance may decide on reporting biodiversity information for legitimation purpose.Research limitations/implicationsThe study uses Finnish data and hence, the results may lack in generalizability to other national contexts.Practical implicationsThe results of this study should be valuable to policy makers for formulating mandatory biodiversity reporting standards to ensure disclosure of standard, extensive and authentic biodiversity-related information by companies. The results should also be valuable to corporate managers and eco-friendly investors.Originality/valueCorporate biodiversity reporting (CBR) is an under-researched area of environmental accounting literature. Using the Finnish context, this paper extends the existing literature by investigating whether any association exists between CBRD and CEP, which has not been examined before.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46650677","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 institutionalisation of social and environmental accounting practices in Europe","authors":"S. Pizzi, Salvatore Principale, Roberta Fasiello, F. Imperiale","doi":"10.1108/jaar-07-2022-0190","DOIUrl":"https://doi.org/10.1108/jaar-07-2022-0190","url":null,"abstract":"PurposeIn the last few years, the European context has been characterised by a high degree of attention paid by policymakers, practitioners and academics to the effects related to the transposition of Directive 2014/95/EU by the member states. In particular, one the main issues of the intervention made by the European Commission is represented by the theoretical misalignment between corporate communications and actions. According to this evidence, this paper aims to shed light on this debate through a critical evaluation of the effectiveness of Directive 2014/95/EU.Design/methodology/approachThe analysis was built using panel data analysis on a sample of 813 European listed companies. Furthermore, the authors performed additional analysis and robustness checks to assess the reliability of the analysis.FindingsThe analysis underlined the enabling role of the reporting scope, external assurance and corporate social responsibility (CSR) committees on sustainability reporting. Furthermore, the research highlighted the need to pay specific attention to the real contribution provided by companies to the sustainable development goals.Research limitations/implicationsThe research provided theoretical insights into the effects related to mandatory sustainability reporting, which represents an emerging field in accounting research.Practical implicationsThe analysis revealed the limited effects of Directive 2014/95/EU. In this regard, the paper contributes to the debate about accounting regulation in Europe.Originality/valueThis paper will shed light on the role of Directive 2014/95/EU in sustainable development. To the best of the authors’ knowledge, this is the first attempt to analyse CSR decoupling in Europe after the transposition of Directive 2014/95/EU by the member states.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48515139","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 mediation effect of audit committee quality and internal audit function quality on the firm size–financial reporting quality nexus","authors":"Manirul Islam, J. Slof, Khaldoon Albitar","doi":"10.1108/jaar-06-2022-0153","DOIUrl":"https://doi.org/10.1108/jaar-06-2022-0153","url":null,"abstract":"PurposeThis study examines the effects of firm size on financial reporting quality (FRQ) through the mediating effects of audit committee (AC) quality and internal audit function (IAF) quality.Design/methodology/approachBased on data from a questionnaire survey and archival sources of non-financial companies listed on the Dhaka Stock Exchange (DSE), the authors perform both structural equational modeling and ordinary least squares (OLS) regression to test the developed hypotheses.FindingsResults show that the firm size is positively related to IAF quality. Firm size, AC quality and IAF quality are significantly associated with abnormal accruals (FRQ). Moreover, the authors find a mediation effect of the IAF quality on the relationship between firm size and FRQ, while no mediation effect is observed for AC quality. Thus, the study advocates companies focus on AC quality and IAF quality to enhance FRQ as it has a significant impact on corporate disclosure and investor decisions.Research limitations/implicationsFirst, the study is restricted to the survey questions that cover particular areas of the AC and IAF. Second, the sample selection focuses on relatively big industries in terms of the number of firms and excludes small sectors.Practical implicationsThe findings provide significant implications for professionals and policymakers in making regulatory reforms and revising existing policies to improve governance monitoring performance and FRQ.Originality/valueTo the best of the authors’ knowledge, this is the first study to explore the mediation effect of AC quality and IAF quality on firm size–FRQ nexus in a developing country.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46816866","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":"Groups of politically connected firms, political uncertainty and earnings credibility in Pakistan","authors":"Fawad Ahmad, M. Bradbury, Ahsan Habib","doi":"10.1108/jaar-04-2022-0081","DOIUrl":"https://doi.org/10.1108/jaar-04-2022-0081","url":null,"abstract":"PurposeThis paper examines the influence of different types of political connections and political uncertainty on earnings credibility in Pakistan. Based on discernible differences, connected firms are grouped into civil connected and military connected firms.Design/methodology/approachThe authors provide evidence concerning the earnings credibility incentives of groups of political connected firms and report that their incentives are significantly different. The findings remain robust to alternate methods of earnings credibility.FindingsThe findings evidence that civil (military) connected firms report less (more) credible earnings than the control group. High political uncertainty reduces the credibility of earnings. Results for the interaction of political connections and political uncertainty variables are not significant.Research limitations/implicationsThe paper investigates just one aspect of Pakistan's political economy, i.e. credibility of earnings; thus, it requires to be cautious on part of readers and policymakers. To reach a clearer conclusion, earnings credibility should be ex amined in the larger context, i.e. in conjunction with rent extractions, etc. A possible extension of the paper can be to investigate the channels of rent extractions used by the two types of connected firms.Practical implicationsThe paper has contribution for policymakers as well as users of general purpose financial reports. The findings indicate that the users of general purpose financial reports should be more careful in the use of financial information during political uncertain periods and also of politically connected firms. Furthermore, policymakers should keep the larger context at the forefront while attempting to strengthen the enforcemnet regime.Originality/valueThis paper adds to extant political connections literature by identifying two types of politically connected firms and report that both groups have divergent financial reporting incentives. Furthermore, political uncertainty reduces the credibility of earnings.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45785185","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 applicability of machine learning algorithms in accounts receivables management","authors":"Marko Kureljusic, Jonas Metz","doi":"10.1108/jaar-05-2022-0116","DOIUrl":"https://doi.org/10.1108/jaar-05-2022-0116","url":null,"abstract":"Purpose The accurate prediction of incoming cash flows enables more effective cash management and allows firms to shape firms' planning based on forward-looking information. Although most firms are aware of the benefits of these forecasts, many still have difficulties identifying and implementing an appropriate prediction model. With the rise of machine learning algorithms, numerous new forecasting techniques have emerged. These new forecasting techniques are theoretically applicable for predicting customer payment behavior but have not yet been adequately investigated. This study aims to close this research gap by examining which machine learning algorithm is the most appropriate for predicting customer payment dates. Design/methodology/approach By using various machine learning algorithms, the authors evaluate whether customer payment behavior patterns can be identified and predicted. The study is based on real-world transaction data from a DAX-40 firm with over 1,000,000 invoices in the dataset, with the data covering the period 2017–2019. Findings The authors' results show that neural networks in particular are suitable for predicting customers' payment dates. Furthermore, the authors demonstrate that contextual and logical prediction models can provide more accurate forecasts than conventional baseline models, such as linear and multivariate regression. Research limitations/implications Future cash flow forecasting studies should incorporate naïve prediction models, as the authors demonstrate that these models can compete with conventional baseline models used in existing machine learning research. However, the authors expect that with more in-depth information about the customer (creditworthiness, accounting structure) the results can be even further improved. Practical implications The knowledge of customers' future payment dates enables firms to change their perspective and move from reactive to proactive cash management. This shift leads to a more targeted dunning process. Originality/value To the best of the authors' knowledge, no study has yet been conducted that interprets the prediction of incoming payments as a daily rolling forecast by comparing naïve forecasts with forecasts based on machine learning and deep learning models.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136372244","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":"Corporate social responsibility decoupling: a systematic literature review and future research agenda","authors":"Shabana Talpur, Muhammad Nadeem, Helen Roberts","doi":"10.1108/jaar-08-2022-0223","DOIUrl":"https://doi.org/10.1108/jaar-08-2022-0223","url":null,"abstract":"PurposeThis paper aims to synthesize the corporate social responsibility decoupling (CSRD) literature, CSRD's causes and consequences and discuss other organizational attributes examined by CSRD scholars during 2010 and 2020. The authors provide suggestions for a future research agenda in this domain.Design/methodology/approachThe authors' systematic literature review (SLR) uses the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework to extract CSRD studies. The authors filter collected articles against quality and relevancy criteria and finally review 175 published articles.FindingsA theme analysis identifies and structures the many themes related to CSRD. The authors discuss the drivers of CSRD and reveal the consequences companies face after CSRD. The authors also provide a comprehensive CSRD discussion in the context of developed and developing economies. CSR communication is also identified as a tool for decoupling and recoupling.Research limitations/implicationsThe identified themes provide a thorough illustration of CSRD literature for new CSRD scholars. The authors also provide suggestions for future research, such as examining country-level policy-making and implications of CSRD variance and identifying cultural and economic hurdles to achieving core CSR purposes.Practical implicationsPolicymakers and scholars may adopt the approach that CSRD is a misreporting of information similar to accounting fraud. This is particularly relevant given that an increasing number of CSRD scandals indicate that the purpose of bringing change through corporate CSR has not been adopted well by corporations.Originality/valueThe authors' study offers a comprehensive literature review for the period of 2010–2020. The studies identified are structured into meaningful themes which can provide groundwork for future researchers.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45826817","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":"Determinants of ESG disclosure among listed firms under voluntary and mandatory ESG disclosure regimes in Hong Kong","authors":"Ricky C. M. Chung, L. Bayne, J. Birt","doi":"10.1108/jaar-07-2022-0179","DOIUrl":"https://doi.org/10.1108/jaar-07-2022-0179","url":null,"abstract":"PurposeThe authors examine the determinants of ESG disclosure and differentiate between voluntary and mandatory disclosure regimes in Hong Kong.Design/methodology/approachThe authors analyse both Bloomberg ESG scores and a disclosure index score, manually constructed according to the 2019 Hong Kong Exchange ESG Guide using regression tests.FindingsThe results indicate that the level of concentrated ownership is negatively associated with the quantity of ESG disclosure only in the voluntary disclosure period, suggesting that agency problems are alleviated when ESG reporting is mandatory. The findings also show that larger firms significantly disclose higher levels of ESG information in both voluntary and mandatory disclosure periods. Furthermore, the extent of ESG disclosure significantly increases when firms' sustainability reports are audited by Big 4 accounting firms only in the voluntary disclosure period. Finally, the control variables are significantly related to the level of ESG disclosure showing that ESG disclosure increased over time and is significantly different among industries.OriginalityThe authors make contributions to the literature on non-financial disclosure in relation to ESG reporting by examining the relationship between firm characteristics and ESG disclosure in the Hong Kong context under both voluntary and mandatory disclosure regimes. This study also provides important implications for other stock markets and relevant stakeholders including preparers, users and the sustainability profession.","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48789922","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":"Applying Benford's law to detect accounting data manipulation in the pre- and post-financial engineering periods","authors":"Etienne G. Harb, N. Nasrallah, R. El Khoury, K. Hussainey","doi":"10.1108/jaar-05-2022-0097","DOIUrl":"https://doi.org/10.1108/jaar-05-2022-0097","url":null,"abstract":"PurposeLebanon has faced one of the most severe financial and economic crises since the end of 2019. The practices of the Lebanese banks are blamed for dangerously exposing economic agents and precipitating the current financial collapse. This paper examines the patterns of manipulation of the 10 biggest banks before and after implementing the financial engineering mechanism.Design/methodology/approachThe authors apply Benford law for the first and second positions of the reports of condition and income and four out of the six aspects of the CAMELS rating system (Capital Adequacy, Assets Quality, Management expertise, Earnings Strength, Liquidity and Sensitivity to the market) by excluding Management and Sensitivity. The deviations from BL frequencies are tested using Z-statistic and Chi-square tests.FindingsBanks seem to have manipulated their Capital Adequacy, Liquidity and Assets Quality in the pre-financial engineering and considerably in the post-financial engineering periods. Fraudulent manipulations in the banking sector can distort depositors, shareholders and regulating authorities.Research limitations/implicationsThis study has many implications for governmental authorities, commercial banks, depositors, businesses, accounting and auditing firms, and policymakers. The Lebanese government needs to implement corrective fiscal and monetary policies and apply amendments to the bank secrecy and capital control law. The central bank should revamp its organizational structure, improve its disclosure practices and significantly reduce its ties to the government and the political elite.Practical implicationsThe study findings suggest that the central bank should revamp its organizational structure, improve its disclosure practices and significantly reduce its ties to the government and the political elite.Originality/valueThe study is the first to examine the patterns of fraudulent manipulation in the Lebanese banking industry using Benford Law (BL).","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44260019","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":"Carillion's strategic choices and the boardroom's strategies of persuasive appeals: ethos, logos and pathos","authors":"Fadi Alkaraan, Mohamamd Albahloul, K. Hussainey","doi":"10.1108/jaar-06-2022-0134","DOIUrl":"https://doi.org/10.1108/jaar-06-2022-0134","url":null,"abstract":"PurposeCompanies documents such as annual reports incorporate narratives of repetitive rhetorical strategies as effective mechanisms adopted by companies' boardrooms to promote strategic change and strategic choices. These mechanisms can be viewed as persuasive appeals to facilitate boardrooms’ discourses. Despite the contribution of previous research through narrative analysis domains, conceptualization of narrative practices remains a relatively neglected area in the extant accounting literature.Design/methodology/approachThe analytical framework is rooted in Aristotle's three pillars of rhetorical proofs: ethos (credibility/trustworthiness), pathos (emotion/identification through cultural domains) and logos (reason/rationale) in investigating narrative extracts regarding persuasive appeals adopted by Carillion's board through annual reports that facilitate discourse regarding Carillion’s strategic choices. Further, the authors emphasis on repetitive rhetorical slogan strategies embedded in the annual reports regarding Carillion's acquisitions strategy. We viewed acquisitions narratives as rhetorical communication artefacts and analyzed the repetitive rhetoric slogans in these corporate documents.FindingsFindings of this study show how persuasive strategies and repetitive slogans trigger the discourses of Carillion's annual reports by drawing on perspectives from upper echelon theory, impression management and communication patterns. Findings reveal that Carillion’ board strategically use repetitive rhetoric slogans to shape optimistic corporate future performance which might be different from the feasible reality. Finally, the authors argue that corporate executives are striving to construct an alternative reality stem from their initial unrealistic aspiration to lead their sector of less controlled market share. Findings of this study have theoretical and managerial implications.Research limitations/implicationsThe key limitation of this study lies with the case study as the research methodology. Subjectivity remains inherent in interpreting the findings of this study. Future studies may adopt or adapt the authors’ analytical framework to examine other domains underpinning corporate reporting practices.Practical implicationsThe findings of this study have practical implications for boardrooms and policymakers. Findings of this study have theoretical and managerial implications. The level of optimism has its impact on the mood of financial decision-makers, and when there is a high level of optimism, managers may consider making more investment decisions and therefore making many acquisitions. Managerial overconfidence has been widely documented in the literature. Overconfident managers systematically overestimate the probability of good outcomes (and correspondingly underestimate the probability of bad outcomes) resulting from their actions.Social implicationsManagerial overconfidence refers to overestimation of managers' own abilities and out","PeriodicalId":46321,"journal":{"name":"Journal of Applied Accounting Research","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41831996","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}