International Journal of Accounting and Information Management最新文献

{"title":"IFRS adoption/reporting and auditor fees: the conditional effect of audit firm size and tenure","authors":"Medhat N. El Guindy, Nadia Sbei Trabelsi","doi":"10.1108/ijaim-09-2019-0107","DOIUrl":"https://doi.org/10.1108/ijaim-09-2019-0107","url":null,"abstract":"Purpose - This paper aims to investigate the impact of International Financial Reporting Standards (IFRS) adoption on audit and non-audit fees in the UK setting. The study investigates whether UK firms adopting IFRS for the first time or reporting under IFRS, in general, are being charged higher audit and non-audit fees and whether this impact is conditional on audit firm size and tenure. Design/methodology/approach - Using empirical data for UK listed firms from 2003-2007, the paper uses a regression model that explains audit and non-audit fees by independent variables measuring auditors’ and auditees’ characteristics including IFRS adoption and reporting. Additional regressions with interaction terms were performed to test the hypothetical conditional impact of auditor size and audit firm tenure on the above-mentioned association. Findings - Audit and non-audit fees increase significantly for companies adopting IFRS for the first time and this increase is persistent during later years. In addition, results suggest that both Big four and non-Big four auditors charge higher audit and non-audit fees to their clients adopting or reporting under IFRS in a similar manner. Furthermore, findings indicate that audit firms increase audit and non-audit fees for old and new clients using IFRS which suggests no low-balling effect is detected. Research limitations/implications - Results reported in this study provide insights to regulators in jurisdictions similar to the UK regarding the cost of IFRS adoption which includes higher audit and non-audit fees imposed by both Big four and non-Big four audit firms. In addition, this study argues, to some extent, against the notion that auditors may charge lower fees in the early years of the audit engagement to win new audit clients. Originality/value - To the best of the knowledge, the findings are unique at two levels. First, the paper provides evidence on the cost of using IFRS in the UK jurisdiction which was not explored by previous research. Second, the paper investigates the potential conditional effect of auditor size and audit tenure on the association between IFRS adoption and auditors’ fees.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"135 1","pages":"639-666"},"PeriodicalIF":30.2,"publicationDate":"2020-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80305616","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":"Risk disclosure and risk governance characteristics: evidence from a developing economy","authors":"S. Nahar, M. Azim, Moazzem Hossain","doi":"10.1108/ijaim-07-2019-0083","DOIUrl":"https://doi.org/10.1108/ijaim-07-2019-0083","url":null,"abstract":"Purpose - The purpose of this paper is to explore to what extent risk disclosure is associated with banks’ governance characteristics. The research also focuses on how the business environment and culture may create a bank’s awareness of risk management and its disclosure. This study is conducted in a setting where banks are not mandated to follow international standards for their risk disclosures. Design/methodology/approach - Using 300 bank-year observations comprising hand-collected private commercial bank data, the study uses regression analysis to investigate the influence of risk governance characteristics on risk disclosure. Findings - This paper reports a positive relationship between risk disclosure and banks’ governance characteristics, such as the presence of various risk committees and a risk management unit. Practical implications - Because studies are lacking on risk disclosure and risk governance conducted in developing countries, it is expected that this research will make a significant contribution to the literature and provide a foundation for further research in this field. Social implications - This study complements the corporate governance literature, more specifically the risk governance literature, by incorporating agency theory, institutional theory and proprietary cost theory to provide robust evidence of the impact of risk governance practices in the context of a developing economy. Originality/value - Previous studies on risk disclosure and governance determinants primarily involve developed countries. This paper’s contribution is to examine risk disclosure and risk governance characteristics in a developing country in which reporting according to international standards is effectively voluntary.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"183 1","pages":"577-605"},"PeriodicalIF":30.2,"publicationDate":"2020-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85077100","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 carbon risk, voluntary disclosure and debt maturity","authors":"Tesfaye T. Lemma, Mehrzad Azmi Shabestari, M. Freedman, Ayalew Lulseged, Mthokozisi Mlilo","doi":"10.1108/ijaim-06-2019-0064","DOIUrl":"https://doi.org/10.1108/ijaim-06-2019-0064","url":null,"abstract":"This study aims to investigate the association between corporate carbon risk and debt maturity and the moderating role of voluntary disclosure, within the context of South Africa, an emerging player in the climate policy debate.,Based on the insights drawn from agency as well as information asymmetry theories, the authors develop models that link debt maturity with corporate carbon risk and voluntary disclosure and examine data obtained from companies listed on the Johannesburg Securities Exchange (JSE), for the period 2011-2015.,The findings document that, other things being equal, debt maturity is significantly higher, both statistically and economically, for companies with lower carbon intensity (risk). In addition, high-quality carbon disclosure accentuates the positive association between debt maturity and the inverse of carbon intensity. The results are robust to alternative measures of corporate carbon risk and issues of endogeneity. The findings are consistent with the view that lenders in South Africa use debt maturity as a non-price mechanism to address borrower risk and grant lower carbon risk companies that voluntarily provide higher quality carbon disclosures an even higher access to longer maturity debts; JSE-listed companies could use voluntary carbon disclosure to ease their access to debt with longer maturity.,The findings of this study have important implications to borrowers, pressure groups, policymakers and other stakeholders.,To the best of the authors’ knowledge, this study is the first to document evidence suggesting that lenders in South Africa use debt maturity as a non-price mechanism to address borrower risk.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"25 1","pages":""},"PeriodicalIF":30.2,"publicationDate":"2020-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87141807","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 global financial crisis on the relationship between CEO compensation and earnings management","authors":"Oheneba Assenso-Okofo, Muhammad Jahangir Ali, Kamran Ahmed","doi":"10.1108/ijaim-08-2019-0101","DOIUrl":"https://doi.org/10.1108/ijaim-08-2019-0101","url":null,"abstract":"This paper aims to examine the effects of global financial crisis (GFC) on chief executive officers’ (CEO) compensation and earnings management relationship. Specifically, the authors examine whether the recent financial crisis had moderated the relationship between CEO bonus and discretionary accruals.,The authors use panel data for 1,800 firm-year observations (over a period of six years from 2005 to 2010) and use univariate and multivariate tests to test their hypothesis. The authors divide the period into pre-crisis, during-crisis and post-crisis periods to examine how the different financial crisis periods affect the relationship between CEO compensation and earnings management. Various alternative tests including endogeneity test suggest that the results are robust.,The authors’ multivariate results indicate that the relationship between CEO’ compensation and earnings management changes because of the GFC.,The findings, therefore, justify more monitoring and scrutiny to limit the existence of opportunistic managerial behaviour and for the appropriate designing of CEO compensation packages during abnormal economic circumstances.,So far as the authors’ knowledge goes, this is the first study which examines the relationship between CEO compensation and earnings management during GFC.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"1 1","pages":"389-408"},"PeriodicalIF":30.2,"publicationDate":"2020-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80057719","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":"ESG disclosure and firm performance before and after IR","authors":"Khaldoon Albitar, K. Hussainey, Nasir Kolade, A. Gerged","doi":"10.1108/IJAIM-09-2019-0108","DOIUrl":"https://doi.org/10.1108/IJAIM-09-2019-0108","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate the effect of environmental, social and governance disclosure (ESGD) on firm performance (FP) before and after the introduction of integrated reporting (IR) further to exploring a potential moderation effect of corporate governance mechanisms on this relationship.\u0000\u0000\u0000Design/methodology/approach\u0000Ordinary least squares and firm-fixed effects models were estimated based on data related to FTSE 350 between 2009 and 2018. The data has been mainly collected from Bloomberg and Capital IQ. This analysis was supplemented with applying a two-stage least squares (2 SLS) model to address any concerns regarding the expected occurrence of endogeneity problems.\u0000\u0000\u0000Findings\u0000The results show a positive and significant relationship between ESGD score and FP before and after 2013, among a sample of FTSE 350. Furthermore, the study is suggestive of a moderation effect of corporate governance mechanisms (i.e. ownership concentration, gender diversity and board size) on the ESGD-FP nexus. Additionally, this paper finds that firms voluntarily associated with IR have a tendency to achieve better firm financial performance.\u0000\u0000\u0000Practical implications\u0000The findings of the present study have several policy and practitioner implications. For example, managers may engage in ESGD to enhance their firms’ financial performance by the voluntary involvement in IR, which believed to help investors to rationalise their investment decisions. Likewise, the results reiterate the crucial need to integrate more social, environmental and economic regulations to promote sustainability in the UK. The paper also offers a systematic picture for policymakers in the UK as well as future researchers.\u0000\u0000\u0000Social implications\u0000The findings of this paper indicate that IR plays a significant role in the relationship between ESGD and FP, where IR firms seemed to be achieving better FP as compared with their non-IR counterparts. This implies that stakeholders may have played a magnificent effort to encourage firms’ voluntary engagement in IR in the UK.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study to explore the potential moderating effect of ownership concentration, gender diversity and board size on the relationship between ESGD and FP and to examine whether firms’ voluntary involvement in IR can lead to better FP after the introduction of IR in 2013 in the UK.\u0000","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"16 1","pages":""},"PeriodicalIF":30.2,"publicationDate":"2020-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79180682","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 data breaches on company performance","authors":"Ahmad H. Juma'h, Yazan Alnsour","doi":"10.1108/ijaim-01-2019-0006","DOIUrl":"https://doi.org/10.1108/ijaim-01-2019-0006","url":null,"abstract":"Purpose - This paper aims to analyze the effect of data breaches – whose concerns and implications can be legal, social and economic – on companies’ overall performance. Design/methodology/approach - Information on data breaches was collected from online compilations, and financial data on breached companies was collected from the Mergent Online database. The financial variables used were related to profitability, liquidity, solvency and company size to analyze the financial performance of the breached companies before and after the data breach event. Nonfinancial data, such as the type and the size of the breaches, was also collected. The data was analyzed using multiple regression. Findings - The results confirm that nonmandatory information related to announcements of data breaches is a signal of companies’ overall performance, as measured by profitability ratios, return on assets and return on equity. The study does not confirm a relationship between data breaches and stock market reaction when measuring quarterly changes in share prices. Research limitations/implications - The main limitation of the study relates to ratio and trend analyses. Such analyses are commonly used when researching accounting information. However, they do not directly reflect the companies’ conditions and realities, and they rely on companies’ released financial reports. Another limitation concerns the confounding factors. The major confounding factors around the data breaches’ dates were identified; however, this was not enough to assure that other factors were not affecting the companies’ financial performance. Because of the nature of such events, this study needs to be replicated to include specific information about the companies using case studies. Therefore, the authors recommend replicating the research to validate the article’s findings when each industry makes more announcements available. Practical implications - To remediate the risks and losses associated with data breaches, companies may use their reserved funds. Social implications - Company data breach announcements signal internal deficiencies. Therefore, the affected companies become liable to their employees, customers and investors. Originality/value - The paper contributes to both theory and practice in the areas of accounting finance, and information management.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"30 1","pages":"275-301"},"PeriodicalIF":30.2,"publicationDate":"2020-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85769877","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 advertising really work?","authors":"Keke Wu, Yan Yu, Dayong Dong","doi":"10.1108/ijaim-10-2019-0119","DOIUrl":"https://doi.org/10.1108/ijaim-10-2019-0119","url":null,"abstract":"This paper aims to examine the direct and indirect effects of advertising on investor behavior.,The authors use a novel and direct measure of investor attention: the number of investors whose watch lists has the stock.,The authors find that beyond its direct effect through information dissemination, advertising has an indirect effect with regard to grabbing investor attention and the trading response. The authors further find that an increase in attention induces a positive influence on the impact of advertising on investor behavior.,First, it complements studies of home bias, in which investors are more likely to buy familiar stocks. Second, it also complements the literature on advertising and investor attention and on attention and capital markets. Third, with a new and unambiguous measure of investor attention. Fourth, combining the direct and indirect aspects, this study presents a detailed description of the financial market effect of advertising.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"170 1","pages":"497-515"},"PeriodicalIF":30.2,"publicationDate":"2020-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90707579","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":"IT risk management: interrelationships based on strategy implementation","authors":"N. Vincent, R. Pinsker","doi":"10.1108/ijaim-08-2019-0093","DOIUrl":"https://doi.org/10.1108/ijaim-08-2019-0093","url":null,"abstract":"Risk management is an under-explored topic in information systems (IS) research that involves complex and interrelated activities. Consequently, the authors explore the importance of interrelated activities by examining how the maturity of one type of information technology risk management (ITRM) practice is influenced by the maturity of other types of ITRM practices. The purpose of this paper is to explore these relationships, the authors develop a model based on organizational strategy implementation theory and the COBIT framework. The model identifies four types of ITRM practices, namely, IT governance (ITG); communications; operations; and monitoring.,The authors use a survey methodology to collect data on senior information technology (IT) executives' perceptions on ITRM practices. The authors use an exploratory factor analysis (EFA) to identify four dimensions of ITR M practices and conduct a structural equation model to observe the associations.,The survey of senior IT executives' perceptions suggests that the maturity of ITRM practices related to ITG, communications and monitoring positively influence the maturity of operations-related ITRM practices. Further, the maturity of communications-related ITRM practices mediates the relationship between ITG and operations-related ITRM practices. The aggregate results demonstrate the inter-relatedness of ITRM practices and highlight the importance of taking a holistic view of ITRM.,Given the content and complexity of the study, it is difficult to obtain senior executives’ responses in large firms. Therefore, this study did not use a separate sample to conduct the EFA to obtain the underlying four constructs. Also, the ITRM practices identified are perceptions. Even though the authors consider this to be a limitation, it also communicates the pressing areas that senior IT professionals are expected to focus given various external and internal pressures. This study focuses on large firms, hence, small to midsize firms are not well represented.,Given the demanding regulatory and financial reporting requirements and the complexity of IT, there is an increasing possibility that the accounting profession will require IT professionals to focus on operations-related ITRM practices, such as security, availability and confidentially of data and IS are closely related to internal controls. However, as this study demonstrates, the maturity of operations-related ITRM practices cannot be achieved by focusing solely on operations-related IT risks. Therefore, IT practitioners can use this study to raise awareness of the complex interrelationships among ITRM practices among managers to improve the overall ITRM practices in a firm.,The study also shows the importance of establishing proper communication channels among various business functions with regard to ITRM. Extant IT research identifies the importance of the firm’s communication structure on various firm performance measures. For example, Krotov (2015) men","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"90 1","pages":"553-575"},"PeriodicalIF":30.2,"publicationDate":"2020-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83913048","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":"Capital structure decisions in a period of economic intervention","authors":"M. E. Neves, Zélia Serrasqueiro, A. Dias, Cristina Hermano","doi":"10.1108/ijaim-08-2019-0094","DOIUrl":"https://doi.org/10.1108/ijaim-08-2019-0094","url":null,"abstract":"This paper aims to analyse the Portuguese companies’ determinants of capital structure. To reach this objective, the authors used data from 37 non-financial Portuguese large enterprises and from 4,233 non-financial small and medium enterprises for the period 2010-2016. Additionally, the authors selected a sub-period from 2010 to 2014 for a deeper understanding of the impact of the sovereign debt crisis and the Economic Adjustment Programme of Troika on the capital structure of those companies.,Three dependent variables were tested according to debt maturity, and a dynamic panel data model, namely, the generalised method of moments system estimator, was used to test the formulated research hypotheses following Arellano and Bover (1995) and Blundell and Bond (1998) to capture the dynamic nature of the firm’s capital structure decisions.,In general, the results point out that the capital structure decisions depend on a set of firm-specific factors, and that the effects of the determinants of the debt maturity ratios differ according to the type of firm, i.e. large/small firms, and the economic cycle.,To the best of the authors’ knowledge, this is the first study that has been carried out in Portugal by using two samples of large and small companies for analysing the effects of the Economic Adjustment Programme of Troika on the capital structure of companies. The authors seek to understand which type of companies suffered more because of the effects of the Economic Adjustment Programme of Troika during this period, and which are the capital structure determinants that present greater change. Contrary to what might be expected, large companies are the firms that suffer most from the Economic Adjustment Programme. Probably, because these companies are the most immediate, most scrutinised and those that must show abroad that the bank did not fund them in the long term, because of the imposition and limits to grant credit faced by the banks themselves.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"47 1","pages":"465-495"},"PeriodicalIF":30.2,"publicationDate":"2020-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86161323","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 institutional ownership affect the value relevance of accounting information?","authors":"Mohamed Omran, Yasean A. Tahat","doi":"10.1108/ijaim-03-2019-0038","DOIUrl":"https://doi.org/10.1108/ijaim-03-2019-0038","url":null,"abstract":"Drawing upon agency theory, this study aims to assess the value relevance (VR) of accounting information released by non-financial firms listed on the Kuwait stock exchange for the period of 2015-2018. Also, the influence of institutional ownership level and other explanatory variables, namely, book value per share, earnings per share, growth in assets and changes in financial leverage on share prices is examined.,To test the hypotheses, the Ohlson (1995) model is extended. This study uses panel data analysis and applies appropriate statistical techniques to measure empirical relationships.,The results show that the VR of accounting information released by the Kuwaiti non-financial listed firms varies over the period of 2015-2018. Book value and earnings have significant and positive effects on share prices. In recent years, the VR of book value information has been growing, while that of earnings information has been declining. Institutional ownership level has a significant and positive influence on the VR of accounting information released by the Kuwaiti non-financial listed firms. The findings confirm a positive power, signalling growth in assets regarding the share prices. However, no significant relationship between changes in financial leverage and share prices is found.,The findings of the study provide evidence of the linkage between VR and institutional ownership level, which promotes the understanding of the influence of institutional investors on a firm’s market value. Empirical evidence from Kuwait will have international implications and can serve as a guide for accounting researchers studying other emerging markets. Capital market regulators can provide guidelines in the form of information characteristics and elements of financial statements that need improvement. Finally, the findings assist non-financial listed firms to enhance the quality of accounting information by identifying the strengths and weaknesses in their financial reports.,This study extends the previous literature by investigating a relatively new set of data in more depth than that has been examined by prior research, which focusses on the relationship between accounting information and the firm’s market value.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"3 1","pages":"323-342"},"PeriodicalIF":30.2,"publicationDate":"2020-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89752415","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}