Asian Review of Accounting最新文献

{"title":"The effect of corruption level in steering the business–government relations: evidence from 23 African countries","authors":"Mebrahtu Tesfagebreal, Li Chang, Siele Jean Tuo, Yu Qian","doi":"10.1108/ara-10-2022-0242","DOIUrl":"https://doi.org/10.1108/ara-10-2022-0242","url":null,"abstract":"PurposeThe purpose of this paper is to investigate the effect of corruption level in steering the business–government relations (BGRs) in developing countries. It also examines the moderating effect of firm size.Design/methodology/approachUsing robust tobit and probit models, this study tests the response behavior of 9787 firms from 23 African countries to their government's policy and regulations and the direct effect of corruption control level in their response decisions. The authors also perform several other additional analyses to ensure the robustness of the findings, including change analysis, two-stage model and recursive bivariate model.FindingsThe result shows that corruption level is among the significant factors that drive BGRs exponentially. The finding points out that, there is a strong alliance of business and government in more corrupt countries. Moreover, the impact of corruption level exacerbates when the firm is bigger.Research limitations/implicationsManagers should focus more on activities that create long-term sustainable advantage. Valuable time of the senior managers should not waste on negotiating government policies to earn a short term advantages.Practical implicationsIt is evident that legal and transparent government alliances can lead to economic rent for firms. However, it is important to note that any alliance based on corruption and illegality is short-lived and ultimately detrimental to long-term prosperity. Therefore, it is crucial for firms to prioritize ethical business practices and build relationships with governments that prioritize transparency and accountability.Social implicationsGiven the detrimental impact of corruption on economic progress, it is crucial for Africa policy-makers to prioritize reforms aimed at reducing its adverse effect. By implementing ethical and transparent business practices, countries can attract more investment and promote economic growth.Originality/valueThis study contributes to the existing literature on the passive form of political connectivity/activity and to what extend corruption level affect the political activities of firms.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45289764","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 the rhetoric art in sustainability reports obstruct the assurance practice?","authors":"Yosra Mnif, Jihene Kchaou","doi":"10.1108/ara-08-2022-0202","DOIUrl":"https://doi.org/10.1108/ara-08-2022-0202","url":null,"abstract":"PurposeThis paper aims to investigate the relationship between the readability of sustainability reports and assurance provider effort, captured by assurance delay and the moderating effect of the assurance provider.Design/methodology/approachThis sample consists of companies operating in sustainability sensitive industries from 39 countries for the period that covers the years 2016–2018.FindingsThe results show that poor sustainability reporting readability is associated with longer assurance delays. Indeed, assurance providers spend more effort assuring clients when sustainability reports are less readable, as shown by long assurance delay. In addition, increases in assurance delay associated with poor sustainability reporting readability are driven by accounting assurance providers. These results hold after controlling for endogeneity using Heckman's (1979) analysis and other measures of assurance delay readability used in prior literature. By checking the specialization of assurance provider partners and setting aside dominant countries, the authors provide insight into the impact of assurance provider specialization on the association between sustainability report readability and assurance provider effort measured by assurance delay and thus, lending further confidence to the strength of the study’s main findings.Research limitations/implicationsThis research provides preliminary evidence on the relationship between sustainability reporting readability and assurance delay as well as the influence of accounting assurance providers.Practical implicationsSustainability assurance practice is viewed as a tool to add or enhance credibility. This study could be considered as another step into driving the standardization of sustainability reporting practice internationally.Originality/valueThis is the first investigation conducted in the sustainability literature on the assurance provider's response to the readability of sustainability reports.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2023-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49657252","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 connections, board ethnicity and value relevance in Mauritius","authors":"Tasneem Mustun, Effiezal Aswadi Abdul Wahab","doi":"10.1108/ara-10-2022-0238","DOIUrl":"https://doi.org/10.1108/ara-10-2022-0238","url":null,"abstract":"PurposeThe paper aims to investigate the impact of political connections and board ethnicity on the value relevance of earnings and book value in Mauritius.Design/methodology/approachThis study is based on a sample of 541 Mauritian-listed firm-year observations for 2001–2016. Financial and board diversity data have been collected using the listed firms’ annual reports and from reports published by the Stock Exchange of Mauritius. Political connection data was derived from the directory of Chief of State and Cabinet members. The research hypotheses were empirically tested using a modified Ohlson (1995) price model.FindingsThis study shows that political connections negatively impact the value relevance of earnings and book value. The authors find that firms with Franco-Mauritian directors will constrain political connections’ negative impact. The authors find contrasting results for Indo-Mauritian directors since they form an integral part of the government in Mauritius.Originality/valueThis study contributes to the scarce accounting literature in Mauritius. Firstly, no study has investigated the relationship between the value relevance of accounting information and political connections in Mauritius. Secondly, Mauritius’s capital market is dominated by a non-indigenous ethnic group, Franco-Mauritians, who remain the economic elite. Hence, Mauritius presents an opportunity to bring forth another important aspect in the capital market and corporate governance; diversity on the board of directors. Therefore, the study extends to the political connections and board diversity literature.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46919306","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":"Identifying key factors of sustainability practice in financial institutions based on decision-making trial and evaluation laboratory method","authors":"Y. Kuo, Yueh-Hsia Huang, Lan Sun, G. Small, Shih-Jung Lin","doi":"10.1108/ara-07-2022-0164","DOIUrl":"https://doi.org/10.1108/ara-07-2022-0164","url":null,"abstract":"PurposeFinancial institutions have a role in harmonising economic purposes with environmental and social purposes through transmission mechanisms whereby the institutions provide channels to promote socially and environmental desirable activities. This study explores the sustainability criteria disclosed at firm-level corporate social responsibility reports for the purpose of providing direction for financial institutions committed to enhancing the contribution to sustainability objectives.Design/methodology/approachThe Delphi Method and the Decision-Making Trial and Evaluation Laboratory (DEMATEL) system have been employed to systematically analyse the opinions of 15 experts regarding the operation of the 7 Taiwanese financial institutions listed on the Dow Jones Sustainability Index in 2019 with respect to the capacity to affect sustainability objectives.FindingsThe findings reveal a high prominence level for corporate governance, law compliance, risk management and occupational safety and health, representing amongst the sustainability criteria considered. This suggests that financial institutions may benefit from focussing resources on these areas, starting with corporate governance, when considering means for enhancing the sustainability performance.Research limitations/implicationsThe study is limited by the small number of financial institutions available in Taiwan which suggests that further research could be directed towards a larger sample of financial institutions, say by international comparison, expanding the range of industries studied or the inclusion for additional sustainability indicators.Practical implicationsOverall, the study has shed light on Taiwan's financial institutions' capacity to contribute to sustainable practices which is an area that has not been extensively investigated. This study may have useful implications for financial institutions in Taiwan.Social implicationsThe authors also recognise other factors that are likely to contribute to social impacts. These include human capacity building and development, information security, green procurement, green building and climate-related financial products.Originality/valueThis study fills the gap by providing useful insights for a better understanding of sustainable development in financial institutions by promoting sustainability practice in general. The authors' analysis will assist decision-makers in identifying and prioritising the driving factors and thus adopting suitable strategies to strengthen sustainability performance.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2023-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46277242","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":"Separating abusive from efficient related-party transactions: evidence from India","authors":"Kinshuk Saurabh","doi":"10.1108/ara-06-2022-0136","DOIUrl":"https://doi.org/10.1108/ara-06-2022-0136","url":null,"abstract":"PurposeThe aim of this study is to understand a family firm's choice of related-party transaction (RPT) types and analyze their value impacts to separate the abusive from benign RPTs.Design/methodology/approachIt uses a 10-year panel of BSE-listed 378 family (and 200 non-family) firms. The fixed effects, logit and difference-in-difference (DID) models help examine value effects, propensity and persistence of harmful RPTs.FindingsLoans/guarantees (irrespective of counterparties) destroy firm value. Capital asset RPTs decrease the firm value but enhance value when undertaken with holding parties. Operating RPTs increase firm value and profitability. They improve asset utilization and reduce discretionary expenses (especially when made with controlled entities). Family firms have larger loans/guarantees and capital asset volumes but have smaller operating RPTs than non-family firms. They are less likely to undertake loans/guarantees (and even operating RPTs) and more capital RPTs vis-à-vis non-family firms. Family firms persist with dubious loans/guarantees but hold back beneficial operating RPTs, despite RPTs being in investor cross-hairs amid the Satyam scam.Research limitations/implicationsRent extractability and counterparty incentives supplement each other. (1) The higher extractability of related-party loans and guarantees (RPLGs) dominates the lower extraction incentives of controlled parties. (2) Holding parties' bringing assets, providing a growth engine and adding value dominate their higher extraction incentives (3) The big gains to the operational efficiency come from operating RPTs with controlled parties, generally operating companies in the family house. (4) Dubious RPTs seem more integral to family firms' choices than non-family firms. (5) Counterparty incentives behind the divergent use of RPTs deserve more research attention. Future studies can give more attention to how family characteristics affect divergent motives behind RPTs.Practical implicationsFirst, the study does not single out family firms for dubious use of all RPTs. Second, investors, auditors or creditors must pay close attention to RPLGs as a special expropriation mechanism. Third, operating RPTs (and capital RPTs with holding parties) benefit family firms. However, solid procedural safeguards are necessary. Overall, results may help clarify the dilemma Indian regulators face in balancing the abusive and business sides of RPTs.Originality/valueThe study fills the gap by arguing why some RPTs may be dubious or benign and then shows how RPTs' misuse depends on counterparty types. It shows operating RPTs enhance operating efficiencies on several dimensions and that benefits may vary with counterparty types. It also presents the first evidence that family firms favor dubious RPTs more and efficient RPTs less than non-family firms.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2023-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47608500","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":"An analysis of audit effort/hour demand based on shareholder ownership power","authors":"D. Mali, Hyoung-joo Lim","doi":"10.1108/ara-10-2022-0248","DOIUrl":"https://doi.org/10.1108/ara-10-2022-0248","url":null,"abstract":"PurposeAudit hour reporting is rare internationally. Thus, to what extent shareholders have the power to influence audit effort/hour demand is a question left unanswered. This study aims to use unique South Korean data to determine whether the increasing power of the largest foreign/domestic shareholders and blockholders can influence audit hour demand.Design/methodology/approachIn this study ordinary least squares (OLS) regression analysis is conducted using a sample of Korean listed firms over the 2004–2018 sample period.FindingsThe results show: as the percentage equity holding of the largest foreign shareholder and blockholder (>5%) increases, audit hour demand increases. As the shareholding of the largest domestic shareholder increases, audit hour demanded decreases. The association between audit fees/hours is not qualitatively indifferent, after controlling for the audit fee premium effect. Furthermore, the largest foreign shareholder is shown to demand increasingly higher levels of audit hours from Big4 auditors, relative to NonBig4. All results are consistent with audit demand theory.Originality/valueWhilst previous studies offer audit fee/risk interpretations, this study extends the literature by developing a framework to explain why audit hour demands differ for specific groups. Because audit hour information is rare internationally, the study has important policy implications.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2023-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47725878","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 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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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}