Asian Review of Accounting最新文献

{"title":"A study of mediating and moderating effects on the relationship between audit quality and integrated reporting quality among Jordanian firms","authors":"Malik Abu Afifa, Isam Saleh, Rahaf Abu Al-Nadi","doi":"10.1108/ara-12-2023-0336","DOIUrl":"https://doi.org/10.1108/ara-12-2023-0336","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this research is to investigate the link between external audit quality and integrated reporting (IR) quality in the Jordanian market, a developing market. Furthermore, the research model considers the mediating effect of earnings management practices and the moderating effect of board gender diversity. As a result, it intends to provide further empirical evidence in this area.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This research investigates its model using data from Jordanian services companies listed on the Amman Stock Exchange (ASE) during the period 2013–2022. With 430 company-year observations, the current research’s sample includes all companies in the research population for which complete data were available during the period under investigation. Data relevant to the research setting were obtained from annual disclosures and the ASE's database.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings of this research show that audit firm size and audit firm specialty have a positive influence on IR quality, but audit firm tenure does not. External audit quality (as proxied by the size, specialty and turnover of the audit firm) had a negative impact on earnings management practices, while earnings management practices had a negative impact on IR quality. Additionally, the findings reveal that earnings management practices completely mediate the relationship between two external audit quality proxies (audit firm size and audit firm specialty) and IR quality. Furthermore, in terms of the moderating impact of board gender diversity, it is obvious that board gender diversity favorably moderates the relationships between all external audit quality proxies and IR quality.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Using agency theory and stakeholder theory, this investigation fills a gap in previous literature by adding scientific explanations and empirical evidence from the Jordanian market, a developing market, in the context of the impact of audit quality on IR quality, mediated by earnings management and moderated by board gender diversity.</p><!--/ Abstract__block -->","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142180274","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 structure and innovation: firm-level evidence from Africa","authors":"Misraku Molla Ayalew, Joseph H. Zhang","doi":"10.1108/ara-11-2022-0276","DOIUrl":"https://doi.org/10.1108/ara-11-2022-0276","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this paper is to examine the effect of the financial structure on innovation.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>We utilize the matched firm-level data from two sources: the World Bank Enterprise Survey and the Innovation Follow-Up Survey. A total of 3,664 firms from 11 African countries are included.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The authors find a financially constrained and low technology-intensive firm that uses internal finance more than its peers is less likely to innovate. Our results also show that a firm that uses new equity and debt finance more than its peers is more likely to innovate. The results particularly suggest the significant effect of bank and trade credit finance on firms’ innovation. The extent and, in some cases, the direction of the effect of dependence on internal finance, new equity finance and debt finance on innovation vary due to the heterogeneity in firm size, age and ownership status. Corporate innovation is also associated with firm size, R&amp;D, cooperation, staff training, public support, exportation and group membership.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The management of companies, particularly financially constrained firms, should reduce their dependence on internal finance, which negatively affects their innovation. As a remedy, they could improve their reliance on new equity finance and debt finance, especially bank finance and trade credit finance, which positively affect their innovativeness.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>A pending policy task for African business leaders is to design and evaluate reforms that help create strong financial sectors willing to provide capital to a broad range of firms, particularly small and young firms.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study adds new evidence to the recent surge of debate on the trade-off between going public, using debt or heavily using internal sources to finance innovative projects, and which of these is more important in promoting firm-level innovation.</p><!--/ Abstract__block -->","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142180278","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 carbon performance payoff? An empirical evidence from Asia-Pacific region","authors":"Mohan Lal Jangid, Anil Kumar Sharma","doi":"10.1108/ara-08-2023-0204","DOIUrl":"https://doi.org/10.1108/ara-08-2023-0204","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study primarily examines the link between carbon and financial performance in the Asia-Pacific region. In addition, the study also explores how the economic impact of carbon performance varies in carbon-intensive and non-carbon-intensive industries.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study takes a sample of 1,539 non-financial firms from 13 Asia-Pacific countries from 2014 to 2021. It employs a firm-fixed effect panel regression model to examine the objective.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings indicate that carbon performance improvement enhances accounting-based and market-based financial performance. The positive impact of carbon abatement stems from increased operational efficiency, energy efficiency and lower production costs. Further, the stock market participants also reward the firm for carbon efficiency. However, the carbon intensity of industrial sectors presents a conflicting picture for this association.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study adds insights to the literature by providing a contemporary reflection on the nexus between carbon emissions and economic outcomes in the understudied Asia-Pacific region. It also unveils the nuanced difference in the carbon-financial performance relationship attributed to industries' carbon sensitivity.</p><!--/ Abstract__block -->","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142180276","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":"Debt maturity, governance and investment efficiency: new evidence from emerging market","authors":"Akash Singh Yadav, Inder Sekhar Yadav","doi":"10.1108/ara-02-2024-0053","DOIUrl":"https://doi.org/10.1108/ara-02-2024-0053","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study investigates the combined influence of corporate governance (CG) and debt maturity (DM) on the investment inefficiency among non-financial 506 NSE-listed firms in India between 2009 and 2022. Additionally, this study also investigates the moderating effect of short-term debt (STD) maturity concerning the relationship between CG and investment inefficiency.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Utilizing the residuals extracted from the Biddle <em>et al</em>. (2009) investment model, three different forms of investment inefficiency (investment inefficiency, overinvestment and underinvestment) were measured. To measure the internal governance of firms, a new corporate governance index (CGI) was developed using 65 new governance stipulations, whereas STD was measured as short-term debt divided by total debt. Interaction effects between CG and DM were also estimated. Employing CGI and STD along with firm-specific control variables, many pooled regression models were estimated. Endogeneity issues were addressed through two-stage least squares. Robustness checks were also conducted using the two-step system GMM, alternative measures of dependent and independent variables.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings demonstrate that higher CG and shortened DM increase investment efficiency. This evidence implies that firm-level governance and short-term debt reduce information asymmetry and increase management oversight. Additionally, the evidence suggested that shortened DM and CG complement one another to increase investment efficiency, suggesting companies that utilize STD to a greater (lesser) extent demonstrate a greater (lesser) impact of CG in reducing investment inefficiency.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>This work first advocates the establishment and implementation of robust corporate governance mechanisms to control agency conflicts, moral hazard, adverse selection and limit opportunistic behavior of managers for improving investment efficiency. Second, since interaction effects suggest a complementarity between CG and DM, it is advocated that STDs can be used to achieve optimal investment choices to control moral hazards and adverse selection and discourage suboptimal investment levels.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This work provides new evidence concerning the effects of CG and DM on various forms of corporate investment efficiency (investment inefficiency, overinvestment and underinvestment, using alternate measures) in an emerging economy like India having a unique institutional framework and macroeconomic environment using a newly developed firm-specific CG index for a large sample of companies using recent data.</p><!--/ Abstract__block -->","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142180275","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":"Strategic positioning and asymmetric cost behavior","authors":"R. Banker, Renee Flasher, Daqun Zhang","doi":"10.1108/ara-12-2023-0347","DOIUrl":"https://doi.org/10.1108/ara-12-2023-0347","url":null,"abstract":"PurposeThis paper explores if the firm’s strategic orientation can be associated with differences in cost behavior activity.Design/methodology/approachUsing Compustat data from 1979 to 2012, the archival study examines if there are differences between differentiation and cost leadership strategies on the firm’s cost stickiness.FindingsThe main finding provides evidence that firms pursuing a differentiation strategy exhibit greater cost stickiness, on average, as compared to firms pursuing a cost leadership strategy. This relationship is moderated by the optimistic or pessimistic expectations of managers for future sales.Originality/valueThis paper contributes to the literature on cost management by explaining how strategic positioning affects firms’ cost behavior using the framework of asymmetric cost behavior. The study encompasses both product and period costs and documents the impact on earnings.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141927525","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of R&D classification shifting in high-technology industries","authors":"Nika Qiao","doi":"10.1108/ara-11-2023-0326","DOIUrl":"https://doi.org/10.1108/ara-11-2023-0326","url":null,"abstract":"PurposeThis study investigates the motivations and consequences of classification shifting from cost of sales to research and development (R&D) in high-technology industries.Design/methodology/approachThis study conducts a multivariate analysis using logistic and ordinary least squares regression methods on panel data of high-technology firms for the period 1988–2012 to examine the effect of R&D classification shifting on gross margin benchmarks and future performance.FindingsThe results show that R&D classification shifting increases the likelihood of meeting or beating gross margin benchmarks. They also show that firms engaged in R&D classification shifting exhibit lower future R&D productivity, stock returns, and operating performance. The findings indicate that the short-term benefits of achieving gross margin benchmarks are offset by the long-term negative impact of R&D misclassification.Practical implicationsThis paper provides insights that can help regulators develop clearer guidelines for the appropriate classification of R&D costs.Originality/valueMoving beyond the core earnings management paradigm, this study demonstrates the use of R&D classification shifting as a tool to manipulate gross profits and R&D in high-technology industries. Most prior studies focused on the determinants of R&D classification shifting, while few investigated the impact of the practice. The findings in this study provide initial evidence of the consequences of R&D classification shifting for future R&D productivity and firm performance in high-tech industries. Using five methods, this study also validates R&D classification shifting and addresses the alternative explanation of R&D overinvestment.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141796077","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 ownership structure affect carbon emission disclosure?","authors":"Ankita Bedi, Balwinder Singh","doi":"10.1108/ara-11-2023-0307","DOIUrl":"https://doi.org/10.1108/ara-11-2023-0307","url":null,"abstract":"PurposeThe current research strives to shed light on how ownership structure can impact carbon emission disclosure.Design/methodology/approachThe present study is based on S&P BSE 500 Indian firms. Using manual content analysis, carbon emission disclosure data were collected from a final sample of 318 nonfinancial Indian firms over seven years, i.e. from 2016–17 to 2022–23, having 2,226 firm-year observations. The panel regression has been employed to examine the association between ownership structure and carbon emissions disclosure.FindingsThe results of the study suggest that ownership structure variables, such as institutional and foreign ownership, exert a positive and significant influence on carbon emission disclosure. Conversely, block-holder ownership is negatively associated with carbon emission disclosure.Practical implicationsThis study enriches the emerging literature on environmental disclosure, climate change, carbon emission disclosure and ownership structure.Social implicationsThe present research work provides treasured acumens to corporate managers, investors, regulators and policymakers as the study corroborates that ownership structure has an imperative role in firms' carbon emission disclosure.Originality/valueExisting literature has determined the impact of ownership structure on environmental disclosure. In contrast, the current research extends the climate change literature by providing novel insights into how ownership structure can influence firms’ carbon emission disclosure. Moreover, to the best of the authors’ knowledge, the present study is the first to scrutinize the relationship between ownership structure and carbon emission disclosure in the Indian context.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141349362","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":"Military-experienced directors, CEO busyness and financial statement footnotes readability: evidence from Indonesia","authors":"Effiezal Aswadi Abdul Wahab, I. Harymawan, Damara Ardelia Kusuma Wardani, M. Nasih","doi":"10.1108/ara-09-2023-0246","DOIUrl":"https://doi.org/10.1108/ara-09-2023-0246","url":null,"abstract":"PurposeThis study examines the relationship between the characteristics of militarily experienced directors and financial statement footnote readability. The second research question considers whether CEO busyness impacts the relationship between military-experienced directors and financial statement footnotes readability.Design/methodology/approachWe use nonfinancial listed firms on the Indonesian Stock Exchange from 2010 to 2018, which amounted to 1,002 firm-year observations. We test the hypotheses and use fixed effects and Heckman's two-stage regression.FindingsThis study documents a negative relationship between military directors and financial statement footnote readability. We extend this relationship by factoring board busyness into the equation. We find that the presence of military-connected and busy CEOs negatively impacts the readability of financial statement footnotes. The results remain robust after additional analyses.Research limitations/implicationsFuture research should consider a more robust measure of military-experienced directors. A broader context of directors' busyness should be considered, such as including multiple directorships.Originality/valueWe revisit the literature on military-experienced directors by considering political connections as one of the proxies for military connections in Indonesia. The findings largely support the convergence of the political connections literature in which rent-seeking activities are prevalent and prevent sound financial reporting.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141361159","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":"Bank financial distress and earnings management strategies: evidence from MENA countries","authors":"Mouna Ben Rejeb, Safwan Alzyadat, Nozha Merzki","doi":"10.1108/ara-10-2023-0290","DOIUrl":"https://doi.org/10.1108/ara-10-2023-0290","url":null,"abstract":"PurposeThis study investigates and compares the earnings management strategies of financially distressed and non-distressed banks.Design/methodology/approachUsing a regression analysis, this study examines a sample of banks operating in the MENA region. We focus on real earnings management strategies via commission and fee income (CF) and accrual-based earnings management strategies via loan loss provisions (LLP). A subsample analysis was performed, lagged dependent variables and additional control variables were included as a robustness check.FindingsThe findings consistently reveal a more extensive use of real earnings management strategies via CF among distressed banks than among non-distressed ones. Specifically, banks smooth their income via CF under distress conditions. However, LLP-based earnings management strategies are only implemented in healthy banks. These behaviors persist in banks that operate under different monitoring systems and institutional settings.Research limitations/implicationsThis study marks its entry into the literature debate on accounting and non-accounting decisions that influence bank financial reporting. It argues that, in the presence of financial difficulties, bank managers define earnings management strategies based on the probability of being detected, rather than looking at their costs.Practical implicationsFrom a prudential perspective, the findings suggest the need for prudential rules to supervise the reporting of CF income associated with high fees or discount incentives used intentionally by bank managers to convince clients to delay or accelerate payments and, consequently, affect reported earnings.Originality/valueThis study adds to the literature by investigating the effect of bank financial distress on both real and accrual-based earnings management to provide a comprehensive analysis of bank earnings management strategies in the presence of financial difficulties.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141361970","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 governance and corporate sustainability performance: the mediating role of CSR expenditure","authors":"Md Mamunur Rashid, Md Rabiul Kabir","doi":"10.1108/ara-12-2023-0350","DOIUrl":"https://doi.org/10.1108/ara-12-2023-0350","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study investigates the effect of corporate governance (CG) characteristics on corporate sustainability performance (CSP) and whether the magnitude of CSR expenditure mediates such a relationship in the context of an emerging and developing economy-Bangladesh.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study collects data from the annual reports of 30 private commercial banks listed with the Dhaka Stock Exchange for the period starting from 2013 to 2022, giving 300 firm-year observations. To test the hypotheses formulated, this study uses Baron and Kenny’s (1986) four-step model. Data have been analyzed using AMOS 23 to examine the direct and indirect effect of CG on sustainability performance.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>This study finds that several CG variables (board size, board independence, sustainable finance committee) significantly affect several facets of sustainability performance (environmental, social, and financial performance). However, the mediating role of the magnitude of CSR expenditure in the relationship between CG mechanisms and sustainability performance is found to be limited.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The list of CG and ownership structure variables studied is not exhaustive, and the presence of a wide variation in the measurement of sustainability performance makes its measurement subjective to some extent.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study uses the magnitude of CSR expenditure as a mediator in the relationship between CG and sustainability performance, which is rarely addressed by the extant literature in this field.</p><!--/ Abstract__block -->","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2024-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141060438","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}