Asian Review of Accounting最新文献

{"title":"The impact of earnings volatility, environmental uncertainty and COVID-19 pandemic on accounting comparability in an emerging economy","authors":"Arash Arianpoor, Farideh Esmailzadeh Asali","doi":"10.1108/ara-10-2022-0257","DOIUrl":"https://doi.org/10.1108/ara-10-2022-0257","url":null,"abstract":"PurposeThe present study investigated the impact of earnings volatility and environmental uncertainty on accounting comparability in an emerging economy and the moderating role of COVID-19 pandemic for the companies listed on Tehran Stock Exchange (TSE).Design/methodology/approachThe data about 181 companies during 2014–2021 were examined. In this study, accounting comparability was predicted for the firms' accounting systems and the coefficient estimates were calculated. The present study used the coefficient of variation of sales to capture sales volatility as the primary environmental uncertainty measure.FindingsThe results showed that both the earnings volatility and environmental uncertainty have a significant negative effect on accounting comparability, and that COVID-19 significantly increases the negative impact of earnings volatility and environmental uncertainty on accounting comparability. The hypothesis testing based on robust, GLS, GMM, GLM, OLS regressions and t+1 test confirmed these results.Originality/valueThe present study aimed to develop knowledge-providing benefits for companies about the accounting comparability and managing more efficient decisions. The present findings help investors to understand and evaluate the performance of firms more accurately especially in earnings volatility and environmental uncertainty conditions and in the wake of a pandemic crisis such as COVID-19.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49540349","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":"Political hegemony and accounting discourse: valuing nationalization","authors":"Sri Pujiningsih, A. Suryani, I. Larasati, S. Yusuf","doi":"10.1108/ara-09-2022-0211","DOIUrl":"https://doi.org/10.1108/ara-09-2022-0211","url":null,"abstract":"PurposeThis study aims to discover the role of accounting and media in hegemonic discourse for divestment valuation of PT Freeport Indonesia shares.Design/methodology/approachThis study employs data from 608 news articles from 5 national media. This study uses Gramsci's concept of hegemony and Laclau and Mouffe's hegemonic discourse to explore the ideological role of accounting in the formation of historical blocs and investigate the contestants' discursive strategies through the chains of equivalence and difference.FindingsThe incumbent presidential candidate, by involving political and intellectual actors, has succeeded in taking over and shifting PT Freeport Indonesia's hegemony to maintain its power, through the ideology of divestment and accounting. The media played a role in the victory of the pro-divestment bloc in the hegemonic divestment discourse contest. The pro-divestment bloc's discursive strategy uses more formal and technical language styles than the anti-divestment bloc, which uses informal language styles. The pro-divestment bloc uses the key signifiers of low price, improved financial performance, nationalization and welfare, as opposed to the anti-divestment bloc, with the key signifiers of high price, declining financial performance and neoliberalist colonization.Practical implicationsThe implications of this research may encourage accounting academics to contribute to emancipatory social movements in the struggle for hegemony. The implication for policy makers is the importance of involving the public, intellectual actors, political actors and the media in supporting diverse state strategic policies in the national interest.Originality/valueThis paper contributes to Gramsci's theory of hegemony and Laclau and Mouffe's hegemonic discourse to understand the role of accounting and media in a nationalization project as an emancipatory social movement, as well as a hegemonic shifting political movement.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48658425","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":"Intellectual capital and firm performance: the moderating effect of auditor characteristics","authors":"M. Rahman, Hongyi Liu","doi":"10.1108/ara-03-2022-0054","DOIUrl":"https://doi.org/10.1108/ara-03-2022-0054","url":null,"abstract":"PurposeThis study aims to examine the impact of intellectual capital (IC) and its three components (human, structural and relational capital) on corporation performance in the Chinese transportation industry. In addition, this study also investigates auditor characteristics (both Big-N and non-Big-N auditors) as a moderating role to examine the relationship between IC and corporate performance.Design/methodology/approachThe data include 398 firm-year observations of transportation companies listed on the Shanghai and Shenzhen Stock Exchange from 2011 to 2020. Value-added intellectual coefficient (VAIC) model and its modified version (MVAIC) are applied to measure IC efficiency. Finally, the fixed effects regression analysis is used to mitigate the endogeneity issue. To investigate the moderating effect of auditor characteristics, the authors divide the samples based on the clients audited by Big-4 and non-Big-4 firms.FindingsThis study reveals that IC can enhance firm performance in China’s transportation sector. Overall, findings indicate that on the whole, IC has a positive and significant impact on corporation profitability and productivity. Human capital and physical and financial assets (capital employed) play highly important roles, but structural capital has no significant impact. The authors also found that auditor characteristics play an important moderating role in the connection between IC and corporate performance. For example, the positive association between IC and corporate performance is more pronounced when Big-4 auditors audit client firms. At the same time, the authors found a negative relationship between IC and firm performance when non-Big-4 auditors audit client firms.Practical implicationsManagers must understand that several components of IC have a total effect on corporate financial performance. Therefore, managers can dedicate more resources to such components based on the performance outcomes to emphasize their business strategies.Originality/valueThis study is the first empirical analysis of the impact of IC and its components on corporation performance in the transportation sector in China, an emerging market. Previous studies mainly focus on developed countries’ high technology and financial industries sectors but the impact of IC in transportation industry largely remains unknown. Thus, the present findings contribute to IC literature by revealing several underlying mechanisms by which the components of IC help achieve good firm performance.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48568869","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":"A discussion of “information processing costs and firm-specific information flows: evidence from the launch of high-speed railway in China”","authors":"Haoran Zhu","doi":"10.1108/ara-10-2022-0239","DOIUrl":"https://doi.org/10.1108/ara-10-2022-0239","url":null,"abstract":"PurposeThis paper aims to discuss the strengths and limitations of Zhao et al. (2022). The author also provides suggestions for future research.Design/methodology/approachThe author initially reviews prior literature studies relevant to this study, i.e. the literature on the relation between geographic proximity and information transfer/acquisition, to better position this paper in existing literature and then briefly discusses the strengths and weaknesses of this paper to provide more insights. Finally, the author presents some possible directions for future research, highlighting the importance of separately examining headquarters and plants in this research setting, and motivating future research on the development of information technology.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-03-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44399274","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":"Discourses on social inequality in the NGO annual reports of Bangladesh: an analysis from the impression management perspective","authors":"Dewan Mahboob Hossain, Md. Saiful Alam","doi":"10.1108/ara-09-2022-0208","DOIUrl":"https://doi.org/10.1108/ara-09-2022-0208","url":null,"abstract":"PurposeThe main objective of this article is to explore the discourses on social inequality in the annual reports of Bangladeshi NGOs.Design/methodology/approachTo fulfil this objective, a discourse analysis was conducted on the latest annual reports of ten renowned NGOs in Bangladesh. The findings were interpreted from the impression management perspective.FindingsIt was found that the NGOs of Bangladesh are highlighting several social inequality issues such as poverty, gender inequality, inequality related to getting healthcare, legal and education facilities, etc. in their annual reports. Several impression management tactics were applied in the narratives of the annual reports. The NGOs portrayed themselves as “problem solvers” who are the saviors of distressed people.Practical implicationsThis study will facilitate improving the understanding of NGO communication. Policymakers will be able to understand the disclosures of NGOs and consider the necessity to provide guidance that may lead to better information dissemination through reports.Originality/valueThis study will contribute to the limited literature on NGO disclosures from the context of developing economies. In the context of NGO, this research is methodologically novel as it applies discourse analysis and interprets the findings through the lens of impression management.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48890583","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":"State-owned enterprises' board characteristics and audit fees: an international perspective in view of economic freedom, political democracy and protection of minority shareholders","authors":"Iman Shaat, Husam Aldamen, Kim Kercher, Keith Duncan","doi":"10.1108/ara-09-2022-0206","DOIUrl":"https://doi.org/10.1108/ara-09-2022-0206","url":null,"abstract":"PurposeThe paper examines the relationship between board effectiveness and audit fees for state-owned enterprises (SOEs). Furthermore, given the unique nature of SOEs, the paper assesses country-level influences, such as economic freedom, political democracy and protection of minority shareholders, which can impact board effectiveness and audit fees.Design/methodology/approachA combination of two-stage and ordinary least squares regression is used to examine the board characteristics-audit fee relationship for SOEs in a multinational setting during the period from 2016 to 2018.FindingsThe results indicate that board characteristics that represent a high level of effectiveness are associated with higher audit fees in SOEs. Furthermore, the findings suggest SOE's operating in countries evidencing medium levels of democracy and economic freedom and medium to high levels of protection of minority shareholders may be motivated to reduce agency conflicts by promoting accountability and transparency, thereby demanding increasing levels of corporate governance, monitoring and audit quality, thereby increasing audit fees.Practical implicationsThe results provide further support for the OECD (2015) guidelines promoting the use of high-quality external audits in SOEs.Originality/valueAs a result of the scarceness of research in this area, the current study extends the literature by examining the role of corporate governance and audit fees in SOEs, while examining the influence of economic freedom, political democracy and protection of minority shareholders.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41820589","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 managerial ability and auditor report readability affect corporate liquidity and cost of debt?","authors":"Tamanna Dalwai, Ahmed Mohamed Habib, Syeeda Shafiya Mohammadi, K. Hussainey","doi":"10.1108/ara-06-2022-0151","DOIUrl":"https://doi.org/10.1108/ara-06-2022-0151","url":null,"abstract":"PurposeThis study investigates the impact of managerial ability and auditor report readability on the cost of debt and corporate liquidity in Omani-listed industrial companies.Design/methodology/approachThe study uses data from the S&P Capital IQ database and audited annual reports published on Muscat Securities Market. The sample consists of 35 firms (175 firm-year observations) from 2015 to 2019. Managerial ability is measured using the data envelopment analysis proposed by Demerjian et al. (2012a, b). Auditor report readability is measured as a log of the auditor report digital file size proposed by Loughran and McDonald (2014).FindingsThis study finds that a company's managerial ability reduces the cost of debt lending support to upper echelons and agency theory. Highly able managers of industrial companies are associated with increased corporate liquidity consistent with the precautionary motive of holding cash. In addition, less-readable auditor reports contribute to higher debt costs and reduce corporate liquidity.Originality/valueTo the best of the authors’ knowledge, few studies have explored the influence of managerial ability and auditor reporting readability on firms' financial policy. For industrial-sector firms, this study demonstrates the managerial ability and readability of auditor readability as significant determinants of the cost of debt and corporate liquidity, especially during periods of uncertainty. Thus, the findings can be generalized to other non-financial sector firms in the country and the Middle East.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44065958","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":"Effect of geomagnetic activity on investors and managers: evidence from the pricing and timing of disclosure of earnings news","authors":"Sharad Asthana, Rachana Kalelkar","doi":"10.1108/ara-04-2022-0100","DOIUrl":"https://doi.org/10.1108/ara-04-2022-0100","url":null,"abstract":"PurposeThis paper's purpose was to examine the impact of geomagnetic activity (GMA) on the timing and valuation of earnings information disclosed by firms every quarter.Design/methodology/approachThe authors start the analyses with a sample of 112,669 client firms from 1989 to 2018. To analyze the impact of GMA on the earnings response coefficient (ERC), the authors use the three-day cumulative abnormal returns and cumulative abnormal returns for the extended post-earnings announcement window [2, 75] as the dependent variables. The authors interact unexpected earnings (UE) with the C9 Index, an index commonly used to measure GMA and study how GMA affects the pricing of new public information. To examine the effect of GMA on the timing of disclosure of earnings news, the authors regress a variant of the GMA index on the propensity to disclose bad earnings news.FindingsThe authors find significantly lower earnings response coefficients during periods of high GMA. This effect is permanent and stock prices do not correctly incorporate the implications of earnings information over time. The authors also show that managerial behavior is affected by GMA as well and the managers are more (less) likely to release bad (good) news during periods of higher activity. Finally, the authors also find that in situations where stakeholders are likely to rely on modern technology that depends minimally on humans, the adverse impact of GMA on the pricing of earnings information is mitigated.Originality/valueThe literature on the effect of GMA on the capital market is very limited and focuses primarily on stock returns, while the behavioral finance literature focuses on circumstances like weather, temperature and sporting outcome to study how the investors' mood affects their capital market behavior. The authors add to both the literature by investigating how GMA influences investors' and managers' behaviors in the capital market.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45686311","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 political connections on firms' auditor choice decisions and audit opinions: evidence from Egypt","authors":"Soad Moussa Tantawy, Tantawy Moussa","doi":"10.1108/ara-07-2022-0161","DOIUrl":"https://doi.org/10.1108/ara-07-2022-0161","url":null,"abstract":"PurposeThis paper aims to examine how different types of corporate political connections (PCs) affect auditor choice decisions (and, therefore, audit quality) and audit opinions following the 2013 Egyptian uprising.Design/methodology/approachThis paper utilizes a unique hand-collected dataset on the type of PCs of Egyptian listed companies from 2014 to 2019. Several analyses are employed to test the hypotheses, including logit regression, probit regression and generalized linear mixed models (GLMM). A number of additional analyses are conducted to ensure the robustness of the results, including the instrumental variables (IVs) probit models and propensity score matching (PSM).FindingsThe results show that firms' choice of auditor and audit opinion is heavily influenced by firms' PCs. Companies with PCs through boards of directors and major shareholders hire Big 4 audit firms to enhance corporate legitimacy; however, government-linked companies usually retain non-Big 4 audit firms to avoid increased transparency and to conceal improper activities, including tunneling and rent-seeking. Further, the results indicate that companies with PCs through boards of directors or major shareholders are more likely to receive favorable audit opinions, whereas government-owned businesses are less likely to receive such opinions.Research limitations/implicationsThis study provides additional evidence to policymakers that binding regulations and guidelines are necessary to oversee politically connected firms (PCFs) and to enhance governance and investor protection.Originality/valueThis study provides the first empirical evidence on how corporate PCs influence the choice of auditors and the opinions of audit firms in Egypt. This paper also sheds light on the impact of different types of corporate PCs on the choice of auditors and audit opinions.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46208296","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 interactive impact of tax avoidance and tax risk on the firm value: new evidence in the Tunisian context","authors":"Mouna Guedrib, Ghazi Marouani","doi":"10.1108/ara-03-2022-0052","DOIUrl":"https://doi.org/10.1108/ara-03-2022-0052","url":null,"abstract":"PurposeThe purpose of this study is to examine the interactive impact of tax avoidance and tax risk on the firm value.Design/methodology/approachThis study covers 290 observations on non-financial corporations listed on the Tunisian Stock Exchange for the period ranging from 2008 to 2020, using the multiple linear regression technique.FindingsThe results show that tax avoidance positively affects the firm value while tax risk has a negative influence on the company value. More importantly, tax risk moderates the positive impact of tax avoidance on the firm value. Accordingly, tax avoidance must be considered in conjunction with tax risk when studying the effect on the firm value. The findings of additional analyses indicate that when tax avoidance is associated with a high level of tax risk, it negatively affects the firm value. Thus, investors negatively rate the high-risk tax avoidance.Research limitations/implicationsThe major limitation of this study is that it focuses only on Tunisian listed companies since their financial statements are publicly available. Although the sample is relatively small due to the problem of data availability, it is satisfactory owing to the twelve-year sampling period (from 2008 to 2020). Research implications- The results obtained are of great interest to researchers as they should be more careful in simply using effective tax rates as a measure of risky or aggressive tax avoidance.Practical implicationsThe findings may signal the need for Tunisian firm managers to consider spillovers when adopting risky tax avoidance strategies and to implement a tax risk management policy within the firm. They are also substantial for Tunisian regulators to create requirements for reporting risky tax avoidance practices in the company annual reports to protect the investors’ rights and the society interest in general. The results are also useful for the investors who would like to make good decisions with respect to tax planning strategies. It is not enough to rely on the Effective Tax Rate (ETR) to judge whether or not tax planning is risky. Volatile ETRs, as a proxy of the tax risk, can be useful for them in decision-making.Social implicationsThe results also highlight that risky tax avoidance decreases the firm value, and thus confirm the negative repercussions that such behavior can have not only on the firm, but also on the society in general, as the corporate tax contributes to covering the State public expenditure. Hence, it is considered a general concern.Originality/valueThe present study differs from others in the existing literature. In fact, it examines the joint effect of tax avoidance and tax risk on the firm value for Tunisian listed companies which are characterized by the predominance of agency conflicts between major shareholders and minor ones. Therefore, the authors seek to investigate if small shareholders can penalize risky tax avoidance practices by decreasing the firm value.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2023-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47242898","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}