International Journal of Accounting最新文献

{"title":"Earnings Management and the Reputation of Nomads Around IPOs: The Experience of the UK Alternative Investment Market","authors":"Mohammad Alhadab","doi":"10.1142/s109440602250007x","DOIUrl":"https://doi.org/10.1142/s109440602250007x","url":null,"abstract":"Synopsis The research problem We examined whether the reputation of the nominated advisor (Nomad) impacts the accrual and real earnings management of initial public offering (IPO) firms on the Alternative Investment Market (AIM) of the London Stock Exchange in the UK. Motivation and theoretical reasoning While the role of Nomads on the AIM is a significant determinant in ensuring the integrity of the financial reporting quality of their advisee firms, to date, there has been no analysis of the impact of Nomads on such reporting activities. The test hypothesis The main hypothesis of this study tested whether IPO firms that appoint a more reputable Nomad exhibit a lower level of accrual-based and real-based earnings management during the IPO. Target population The initial sample of this study consisted of all IPO firms that went public on the AIM between January 1998 and December 2008. After restricting the sample to non-financial IPO firms with the necessary data available to estimate accrual and real earnings management and Nomad reputation, the final sample consisted of 432 IPO firms that are backed by 80 Nomads over the sample period. Adopted methodology Two real earnings management activities were examined: sales-based manipulation and discretionary expenses–based manipulation. Discretionary accruals were estimated as a proxy of accrual earnings management. To construct the unweighted index of Nomad reputation (NOMAD), data were manually collected for the number of IPOs backed by a Nomad, proceeds of IPOs backed by the Nomad, the Nomad’s age, and the Nomad’s credit score. Analyses Following prior research, several techniques and regressions were employed to test the hypothetical relation between Nomad reputation and accrual and real earnings management. As for robustness, both Heckman and instrumental variable (IV) regressions were used to control for sample selection bias, and a three-stage least squares (3SLS) estimation approach was used to test for the two-way interaction between Nomad reputation and earnings management. Findings This paper found evidence that more reputable Nomads on the AIM play a significant role in constraining the use of accrual-based and real-based earnings management during the IPO year by their advisee IPO firms. This is also the first evidence on the significant role of reputable financial institutions and intermediaries in monitoring the financial reporting quality in less regulated markets such as the AIM in the UK.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44874265","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 Evolution of Environmental Reporting in Europe: The Role of Financial and Non-Financial Regulation","authors":"E. Barbu, Liliana Ionescu-Feleagă, Yann Ferrat","doi":"10.1142/s1094406022500081","DOIUrl":"https://doi.org/10.1142/s1094406022500081","url":null,"abstract":"Synopsis The research problem We observed the impact of European, international, and national mandatory financial and non-financial regulations on the corporate environmental disclosure of listed companies in the Euronext 100 between 2002 and 2017. Motivation Our study was motivated by the perfect European context created by the implementation of the IASs/IFRSs, mandatory since 2005, to enhance financial statement comparability across European companies, and by the national transposition of the 2014/95/EU Non-Financial Reporting Directive requiring European listed and large corporations to disclose information relative to their environmental footprint starting January 1, 2017. The test hypotheses [Formula: see text]: Financial legislation through the IASs/IFRSs implementation improves the level of environmental disclosure in Europe. [Formula: see text]: Non-financial legislation through the Non-Financial Reporting Directive improves the level of environmental disclosure in Europe. Target population The paper is useful for: (1) researchers wanting to observe the evolution of environmental disclosure in Europe and the main factors influencing it; (2) CEOs and managers who seek to improve their own financial and non-financial reporting; (3) policymakers to know the impact of national and international regulations on environmental disclosure and practices; and (4) users of annual financial statements. Adopted methodology We hand collected data using the financial environmental grid proposed by Barbu et al. [( 2014a ). Mandatory environmental disclosures by companies complying with IAS/IFRS: The case of France, Germany and UK. The International Journal of Accounting, 49(2), 231–247] for both descriptive and monetary items from the annual financial statements of all French, Dutch, Belgian, and Portuguese companies included in the Euronext 100 index. We used descriptive statistics and regression models to analyze this data. Analyses The results are interpreted through the lenses of neo-institutional theory, legitimacy theory, and homogeneity theory. Findings The results show that mandatory financial and non-financial regulations improved the level of environmental disclosure of European companies from different countries over time, but the level of reporting was still very low. The force of coercive isomorphism is not strong enough to cause companies to be more environmentally responsible and to report more, but normative and mimetic isomorphism, and gaining legitimacy, could have a positive influence on the environmental reporting practices of European companies. Taken as a whole, the policy of “one size fits all” is not appropriate for environmental regulation in Europe and needs to be adapted because each country has a specific culture, tradition, and education regarding environmental values. These values should be improved to promote a better environmental conscience, better individual responsibility, and a tangible feeling of truth and transparency","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45717706","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":"Discussion of “The Evolution of Environmental Reporting in Europe: The Role of Financial and Non-Financial Regulation”","authors":"A. Charitou","doi":"10.1142/s1094406022800038","DOIUrl":"https://doi.org/10.1142/s1094406022800038","url":null,"abstract":"Although regulation on corporate social and environmental reporting in Europe has grown in recent years, there has been limited empirical research on the level, quality, and economic consequences of this regulated disclosure. Barbu, Feleaga and Ferrat (2022) advance our understanding of the impact of European Union legislation on the quantity of corporate environmental disclosures in Europe, showing that regulations improve the level of environmental disclosure. Future research on environmental reporting should provide more in-depth economic intuition and address issues related to differences in cross-country analyses, as well as investigate in more depth both the level and quality of increased disclosure on social and environmental issues, the factors influencing this type of disclosure, and any economic consequences.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45481917","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":"Financial and Non-Financial Tools Useful for Exhaustive Corporate Environmental Disclosure and Practices","authors":"E. Barbu, Liliana Ionescu-Feleagă, Yann Ferrat","doi":"10.1142/s1094406022500093","DOIUrl":"https://doi.org/10.1142/s1094406022500093","url":null,"abstract":"This paper offers our insights concerning the issues raised by Prof. Charitou (2022) [Discussion of “The evolution of environmental reporting in Europe: The role of financial and non-financial regulation”. The International Journal of Accounting, 57, a–b] in commentaries on the article “The Evolution of Environmental Reporting in Europe: The Role of Financial and Non-Financial Regulation” [Barbu, E. M., Feleaga, L., & Ferrat, Y. (2022). The International Journal of Accounting, 57, c–d]. As suggested by Charitou (2022), we explain the pertinence of our financial environmental grid of 12 items based on IAS/IFRS, and we propose a complementary non-financial environmental grid of almost 100 elements useful to ensure an exhaustive analysis of corporate environmental disclosure and environmental governance. Furthermore, we analyzed the results through the influence of national regulation on environmental disclosure and practices, and we explain why it is important to work on the synergy among environmental, social, and economic pillars and with the Sustainable Development Goals (SDGs) to improve corporate social and environmental responsibility.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42075091","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":"INFLUENCE OF CREDIT MANAGEMENT ON FINANCIAL INTERMEDIATION EFFICIENCY OF DEPOSIT TAKING SACCOS’S IN KENYA","authors":"P. K. Muriithi, T. Nasieku, F. Memba","doi":"10.47941/jacc.794","DOIUrl":"https://doi.org/10.47941/jacc.794","url":null,"abstract":"Purpose: The regulation of Deposit Taking Saving and Credit Co-operative societies was expected to enhance transparency and accountability in the management of DT SACCO’s and thus protecting the interests of members. This was expected to lead to better service to members through provision of timely loans and advances with minimal risk exposures. SACCO’s have been identified as major financial player away from the Commercial Banks thus important in financial intermediation. Thus, the current study on the influence of credit management on financial intermediation efficiency of DT SACCO’s in Kenya. \u0000Methodology: The study targeted 174 DT SACCO’s operating in Kenya as at 31st December 2019. Data analysis was done using both descriptive and inferential statistics. Descriptive statistics used in the study included measures of central tendency; mean; dispersion and standard deviation. Inferential statistics used included correlation and regression analysis. \u0000Results: The study findings showed that there was a persistent increase in financial intermediation efficiency within the period under study and thus can be concluded that as DT SACCOs complied with credit managementon their financial intermediation efficiency improved. \u0000Unique Contribution to Theory, Practice and Policy: Pure efficiency was lower than scale efficiency throughout the period under study, thus there is need for management to examine their performance inefficiencies so as to minimize wastages and spillage of performance opportunities.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90649326","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":"How Does Corporate Social Responsibility Moderate the Adverse Effects of Product Failure in Social Media?","authors":"Sonia Cho, Ka Wai Choi, S. Y. Ho, Dixin Wu","doi":"10.1142/s1094406022500032","DOIUrl":"https://doi.org/10.1142/s1094406022500032","url":null,"abstract":"The research problem: This paper investigates how corporate social responsibility (CSR) moderates the adverse effect of product failure on promoting tweeting about a firm’s products, which subsequently affects sales growth. Motivation or theoretical reasoning: Under the social contract theory, high-CSR-performance firms gain social approval and acceptance as they are perceived to have fulfilled their obligations and met society’s expectations. Society is more forgiving to these firms when they are involved in negative events such as product failure. The test hypotheses: We hypothesized that firms’ CSR performance moderates the negative effect of product failure on tweet sentiment and that the increase in tweet sentiment leads to higher future sales growth. Target population: We focused on the automotive industry due to its vast consumer base. We sampled all 16 car manufacturers that operate in the US. Adopted methodology: Using aspect-based sentiment analysis, we identified 302,718 tweets from Twitter about the quality of cars and extracted the tweet sentiment. We used the car recall records to proxy for product failure. Analyses: Multivariate regressions were used to test our hypotheses. Findings: We found that firms’ CSR mitigates the negative effect of product failure on tweet sentiment about product quality and, subsequently, promotes sales growth. Our findings show that firms with strong CSR received significantly more net positive tweets than did those with weak CSR. Moreover, a 10% increase in net positive tweets was associated with a 0.43% increase in quarterly sales growth ([Formula: see text]). Of the three CSR types, governance CSR exerted the strongest effect on tweet sentiment and environmental CSR the second, while social CSR ranked the third. This paper extends the literature by investigating the effect of CSR on sales growth by altering social media tweeting.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44936494","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":"National Cultural Dimensions and Adoption of the International Financial Reporting Standard (IFRS) for Small and Medium-Sized Entities (SMEs)","authors":"Karim Mhedhbi, Moez Essid","doi":"10.1142/s1094406022500044","DOIUrl":"https://doi.org/10.1142/s1094406022500044","url":null,"abstract":"The research problem: This study investigates whether the adoption of the International Financial Reporting Standard (IFRS) for small- and medium-sized entities (SMEs) is linked to national culture. Motivation or theoretical reasoning: Little is known about the role of cultural dimensions in explaining countries’ adoption of the IFRS for SMEs. Focusing on this topic could contribute to a better understanding of the adoption of the IFRS for SMEs and would enrich the international accounting literature. Conducting a specific empirical investigation into the IFRS for SMEs is motivated by the difference between the full IFRS and the IFRS for SMEs, by the inherent characteristics of SMEs, and by differences between the number of countries that adopted the full IFRS and those that have adopted the IFRS for SMEs. The test hypotheses: We used Hofstede’s dimensions of national culture (Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long-term Orientation, and Indulgence) to capture a country’s culture. We expected that these six dimensions would play a crucial role in countries’ decision to adopt the IFRS for SMEs. Based on previous relevant studies, we developed a research hypothesis for each of the mentioned cultural dimensions. Target population: We selected the 101 countries included in Hofstede’s study. For each country, we looked at the data available on the IFRS website to identify its position in relation to the IFRS for SMEs. The final sample included 97 countries. Adopted methodology: After classifying countries in three groups (Non-Adopters, Voluntary Adopters, and Mandatory Adopters), we performed several statistical regressions with adoption of the IFRS for SMEs as the dependent variable and the cultural dimensions as the relevant independent variables. Analyses: Among others, we used several logistic regressions to estimate the association between national culture and the use of the IFRS for SMEs. We initially performed a statistical estimation for each of the six dimensions of national culture. Then, we included all cultural dimensions simultaneously. Finally, we performed robustness tests by applying multinomial regressions and focusing on the group of full IFRS adopters. Findings: Empirical results revealed that the adoption of the IFRS for SMEs was less likely in countries with the highest levels of individualism. This conclusion held for both Mandatory and Voluntary Adopters. In contrast, the other dimensions of national culture were not significant in explaining the adoption of the IFRS for SMEs by national accounting regulators.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47190341","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":"Discussion of “Consistency in Management Earnings Guidance Patterns”","authors":"Georgia Siougle","doi":"10.1142/s1094406022800026","DOIUrl":"https://doi.org/10.1142/s1094406022800026","url":null,"abstract":"In this discussion of Tang [( 2022 ). Consistency in management earnings guidance patterns, The International Journal of Accounting, 57, p–p. https://doi.org/xxxx], I point out the research design considerations and provide some directions for future research in the area of voluntary disclosures related to management earnings guidance.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44660887","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":"Should I Trust You? Bidder’s Earnings Quality as an Indicator of Trustworthiness in Earnout Agreements","authors":"A. Prencipe, Luca Viarengo","doi":"10.1142/s1094406022500020","DOIUrl":"https://doi.org/10.1142/s1094406022500020","url":null,"abstract":"The research problem This paper aims to test whether an acquirer’s past earnings quality (proxied by the level of earnings management) serves as an indicator of its trustworthiness in view of the inclusion of an earnout agreement in an acquisition contract. Motivation Prior studies highlighted the benefits of earnout agreements, showing that they help reduce adverse selection problems and valuation risk faced by the acquirers. However, not much attention has been paid to the risks that these contracts entail. The majority of earnouts are based on accounting performance measures, which may be subject to earnings management by the acquirer to reduce, or even avoid, contingent payments. Therefore, the decision to include an earnout in an acquisition may depend on the sellers’ perceived probability that the acquirer will use opportunistic tactics to avoid the contingent payment, as indicated by the acquirer’s past behavior. The test hypotheses Hypothesis 1: The likelihood of inclusion of earnouts in acquisition deals is negatively associated with the level of earnings management in the acquirer’s past financial statements. Hypothesis 2: The relation between earnings management and the use of earnouts is stronger when the bidder has no acquisition track record. Target population M&A advisors, financial analysts, stakeholders of companies engaging in M&A deals. Adopted methodology Logit regressions, propensity score matching analyses for robustness. Analyses Using a sample of 8,968 acquisition deals completed by US listed companies between 2002 and 2014, we examine the association between the use of earnouts and bidder’s earnings quality (proxied by the level of earnings management) controlling for the determinants of the use of earnouts described by previous literature. We collected acquisitions data from Thomson ONE Banker and accounting information from Compustat. Using logit models, we regress the choice to include an earnout in an M&A deal on several earnings management proxies and on the interaction between the latter variables and bidder’s acquisition track record. Findings We find robust evidence that the level of the acquirer’s past earnings management is negatively associated to the probability of inclusion of an earnout in acquisition contracts. This association is stronger if the bidder has no prior acquisition history and is robust to various measures of earnings management and to controls for other external monitoring mechanisms.","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47491481","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":"Author Index VOLUME 56 (2021)","authors":"","doi":"10.1142/s1094406021990018","DOIUrl":"https://doi.org/10.1142/s1094406021990018","url":null,"abstract":"","PeriodicalId":47122,"journal":{"name":"International Journal of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48179268","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}