Advances in Accounting最新文献

Customer political sentiment and supplier relationship-specific investments 客户政治情绪和供应商特定关系的投资

IF 1.5

Advances in Accounting Pub Date : 2025-10-01 DOI: 10.1016/j.adiac.2025.100848

Pin-Ju Chen , Lili Jiu , Po-Hsiang Yu

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引用次数: 0

Concerted efforts: The role of component auditors in multinational group audit in China 协同努力：组成部分审计师在中国跨国集团审计中的作用

IF 1.5

Advances in Accounting Pub Date : 2025-09-30 DOI: 10.1016/j.adiac.2025.100847

Yan Sun , Suyi Liu , Justin Yiqiang Jin

{"title":"Concerted efforts: The role of component auditors in multinational group audit in China","authors":"Yan Sun , Suyi Liu , Justin Yiqiang Jin","doi":"10.1016/j.adiac.2025.100847","DOIUrl":"10.1016/j.adiac.2025.100847","url":null,"abstract":"<div><div>Based on the law of comparative advantage, we empirically investigate whether and how component auditors impact audit quality in multinational group audits (MGAs) in China. Despite mixed findings from studies based on U.S. and Australian data, there is a dearth of research on the impact of component auditors in emerging markets, where MGAs are growing substantially, and the institutional environment differs significantly from that of developed countries. Using manually collected data from China, we find that involving component auditors significantly enhances audit quality, with the effect becoming more pronounced as their involvement increases. Our mechanism analysis shows that component auditors enhance MGA audit quality by leveraging their comparative advantages, which are shaped by strong institutional environments and mature capital markets. Furthermore, our heterogeneity analysis reveals that the contribution of component auditors is more pronounced when group auditors have lower proficiency, less experience, or when their accounting firms are less globalized. This study highlights the comparative advantages of component auditors and emphasizes the concerted efforts of both group and component auditors in improving MGA audit quality in an emerging market. Our findings are relevant to multinational groups, international practitioners, investors, and regulators.</div></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":"69 ","pages":"Article 100847"},"PeriodicalIF":1.5,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145218941","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}

引用次数: 0

Audit committee composition and effectiveness: The role of odd-numbered committees 审计委员会的组成和有效性：奇数委员会的作用

IF 1.5

Advances in Accounting Pub Date : 2025-09-10 DOI: 10.1016/j.adiac.2025.100845

Lele Chen , Rachana Kalelkar , Qiao Xu

{"title":"Audit committee composition and effectiveness: The role of odd-numbered committees","authors":"Lele Chen , Rachana Kalelkar , Qiao Xu","doi":"10.1016/j.adiac.2025.100845","DOIUrl":"10.1016/j.adiac.2025.100845","url":null,"abstract":"<div><div>In this paper, we investigate whether the odd composition of audit committees influences the demand for audit effort. Extant literature posits that the financial reporting quality is higher when audit committees comprise an odd number of directors. The rationale is that the odd composition of committees fosters a voting environment where directors are more inclined to vote informatively and independently, leading to decisions that better align with shareholders' interests. Our findings support this theory, showing that odd audit committees demand greater audit effort. In addition, we find that the odd audit committees are more likely to make decisions that enhance auditor independence by not using auditor-provided tax services and strengthen financial reporting quality by avoiding the delay in the engagement of new auditors. We further find that the association between odd audit committees and the demand for audit effort is not affected by audit committee size and odd audit committees are negatively associated with material weaknesses in internal controls. Our study makes a valuable contribution to the corporate governance literature by documenting that the odd versus even composition of audit committees enhances the effectiveness of audit committee monitoring related to the quality of financial reporting.</div></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":"69 ","pages":"Article 100845"},"PeriodicalIF":1.5,"publicationDate":"2025-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145026517","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}

引用次数: 0

Does the presence of GC in the top management team affect debt financing choices? 高层管理团队中GC的存在是否会影响债务融资的选择？

IF 1.5

Advances in Accounting Pub Date : 2025-08-27 DOI: 10.1016/j.adiac.2025.100844

Md Safayat Hossain , Mahmud Rahman

引用次数: 0

The switch from IFRS to local GAAP: Evidence from UK private firms 从国际财务报告准则到当地公认会计准则的转变：来自英国私营公司的证据

IF 1.5

Advances in Accounting Pub Date : 2025-08-26 DOI: 10.1016/j.adiac.2025.100843

Yu-Lin Hsu , Ya-Chih Yang , Manish Rajkumar Arora

{"title":"The switch from IFRS to local GAAP: Evidence from UK private firms","authors":"Yu-Lin Hsu , Ya-Chih Yang , Manish Rajkumar Arora","doi":"10.1016/j.adiac.2025.100843","DOIUrl":"10.1016/j.adiac.2025.100843","url":null,"abstract":"<div><div>This study examines the determinants of the switch from IFRS to the new UK GAAP, which like IFRS for SMEs aims to be closely aligned with IFRS but requires much less disclosure, in UK private firms. We find that private UK companies are more likely to switch to the new UK GAAP in 2015, the first year when new UK GAAP replaced old UK GAAP, if they have higher sales growth rates or if directors are shareholders. The result further shows that the switch to new UK GAAP helps to reduce the disclosure levels (e.g., fewer pages of annual reports). The consistency with IFRS and reduced disclosure in new UK GAAP may explain why private firms with greater incentives to reduce disclosure level and having fewer problems of information asymmetry may adopt this new framework. Our findings imply that the extensive disclosures required by IFRS may still be a burden for many firms, including those which adopted it before. A reduced framework consistent with IFRS (e.g., the new UK GAAP or IFRS for SMEs) may help to tackle this issue. Furthermore, our results show that the key factors influencing the decision of switching to new UK GAAP during 2016–2022 (i.e., the presence of Big 4 auditors, major shareholders and foreign shareholders/parents) are different from those in 2015, generally in line with previous literature that companies with different adoption incentives would adopt new financial reporting standards at a different time.</div></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":"69 ","pages":"Article 100843"},"PeriodicalIF":1.5,"publicationDate":"2025-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144902318","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}

引用次数: 0

Climate news and accounting comparability 气候新闻和会计可比性

IF 1.5

Advances in Accounting Pub Date : 2025-08-04 DOI: 10.1016/j.adiac.2025.100841

Justin Chircop , Nhat Q. Nguyen , Tri T. Nguyen

引用次数: 0

Earnings versus cash flows in equity valuation: Evidence from the COVID-19 crisis 股票估值中的收益与现金流：来自COVID-19危机的证据

IF 1.2

Advances in Accounting Pub Date : 2025-07-22 DOI: 10.1016/j.adiac.2025.100837

Jeong-Bon Kim , Junwoo Kim , Jay Junghun Lee

{"title":"Earnings versus cash flows in equity valuation: Evidence from the COVID-19 crisis","authors":"Jeong-Bon Kim , Junwoo Kim , Jay Junghun Lee","doi":"10.1016/j.adiac.2025.100837","DOIUrl":"10.1016/j.adiac.2025.100837","url":null,"abstract":"<div><div>This study investigates the role of earnings and cash flows in equity valuation under severe uncertainty about firm fundamentals. Using the COVID-19 pandemic as an exogenous shock that exacerbates fundamental uncertainty, we find that severe uncertainty leads investors to increase the valuation weight on cash flows and reduce the valuation weight on earnings. Consequently, while net earnings dominate operating cash flows in explaining the cross-section of stock returns during the pre-pandemic period, operating cash flows outperform net earnings during the pandemic period. We also find that the decrease in the value relevance of earnings is attributable to the decline in the valuation weight on the accrual component of earnings. Further analyses reveal that the dominance of cash flows over earnings is less pronounced for operating earnings than for net earnings and that the valuation weight on cash flows increases with ex-ante exposure to the pandemic shock and with the level of financial inflexibility. Moreover, we find that while analysts' earnings forecasts become less accurate and more dispersed during the pandemic period, their cash flow forecasts do not exhibit significant changes in forecast accuracy or dispersion over the same period. Our evidence highlights the relative importance of cash flows versus earnings under severe uncertainty about firms' prospects.</div></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":"69 ","pages":"Article 100837"},"PeriodicalIF":1.2,"publicationDate":"2025-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144679596","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}

引用次数: 0

Whatever it takes: Evidence on the trade-off between employee safety violations and product recalls 不惜一切代价：违反员工安全规定和产品召回之间权衡的证据

IF 1.2

Advances in Accounting Pub Date : 2025-07-18 DOI: 10.1016/j.adiac.2025.100840

Farzana Afrin, Megan Grady

{"title":"Whatever it takes: Evidence on the trade-off between employee safety violations and product recalls","authors":"Farzana Afrin, Megan Grady","doi":"10.1016/j.adiac.2025.100840","DOIUrl":"10.1016/j.adiac.2025.100840","url":null,"abstract":"<div><div>We study the interplay between two critical types of safety violations within organizations: workplace safety and product safety violations. Our results show that firms make a trade-off between these negative behaviors, opting for higher product safety levels at the expense of employee safety. We also find evidence that cost cutting behaviors related to workplace safety are associated with a decrease in product recall incidents. The trade-off between employee safety and product safety is more pronounced when the firm has external performance pressure, fewer resources, customer-oriented leadership, or lower union involvement. This suggests that managers prioritize the interests of external stakeholders (i.e., customers) over those of their internal stakeholders (i.e., employees). Additionally, we find that this trade-off is consistent with firm value implications – product safety violations that receive media attention result in both short-run and long-run declines in stockholder returns. Finally, we examine the consequences of this trade-off behavior in terms of harm to employees, proxied for by the frequency of workplace injury and death.</div></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":"69 ","pages":"Article 100840"},"PeriodicalIF":1.2,"publicationDate":"2025-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144654236","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}

引用次数: 0

How does managerial entrenchment relate to Financial statement comparability? 管理巩固与财务报表可比性有何关系？

IF 1.2

Advances in Accounting Pub Date : 2025-07-17 DOI: 10.1016/j.adiac.2025.100838

David Folsom , Rebeca Pérez , Qifeng Wu (Charles)

引用次数: 0

The impact of buy-side analyst social network relationships on recommendations, price discovery, and employment outcomes 买方分析师的社会网络关系对推荐、价格发现和就业结果的影响

IF 1.2

Advances in Accounting Pub Date : 2025-07-17 DOI: 10.1016/j.adiac.2025.100839

Steven Crawford , Wesley Gray , Bryan Johnson , Richard A. Price III

引用次数: 0