Asian Review of Accounting最新文献

{"title":"Discussion of “local government turnover and capital structure: evidence from China”","authors":"Jingjing Li","doi":"10.1108/ara-09-2022-0225","DOIUrl":"https://doi.org/10.1108/ara-09-2022-0225","url":null,"abstract":"PurposeThis paper aims to identify and evaluate the limitations related to Xin et al. (2022). The discussant also provide suggestions for future research along this line.Design/methodology/approachIn this discussion, the discussant will attempt to identify the main limitations and provide suggestions for future improvement. This written discussion focuses on three main points. First, the discussant will focus on the incremental contribution. Second, the discussant will discuss some remaining issues with the empirical design and propose suggestions for further improvement. Lastly, the discussant will go over the underlying reasons behind the documented results.FindingsXin et al. (2022) investigate the original and important question of whether local leadership turnover leads to lower financial leverage.Originality/valueXin et al. (2022) contribute to the research line of the economic impact of political uncertainty by investigating the turnover year effect of local top leadership in the Chinese setting. Future research can improve our understanding by investigating the underlying mechanisms behind the documented results.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46164593","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 the meta-analysis of board characteristics and demand for audit quality","authors":"Zhifeng Yang","doi":"10.1108/ara-09-2022-0218","DOIUrl":"https://doi.org/10.1108/ara-09-2022-0218","url":null,"abstract":"PurposeThe purpose of this study is to discuss Kalia, Basu and Kundu's (KBK’s) paper's motivation, findings and contributions and suggest further development.Design/methodology/approachThis paper is to discuss the meta-analysis of board characteristics and demand for audit Quqality by KBK.FindingsKBK paper is well motivated and makes new contributions to the literature. Future research can expand the sample and examine the moderating effects of institutional factors such as ownership structure, regulatory reforms and country-level investor protection and legal enforcement.Originality/valueBased on the review of KBK’ spaper, this study suggests that future research should expand the sample and examine the moderating effects of institutional factors such as ownership structure, regulatory reforms and country-level investor protection and legal enforcement.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44434837","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":"Is auditor tolerant of earnings management in socially responsible firms? Evidence from China","authors":"Huy Viet Hoang, Son Tung Ha, Manh-Linh Tran, Thien Hai Nguyen","doi":"10.1108/ara-01-2022-0001","DOIUrl":"https://doi.org/10.1108/ara-01-2022-0001","url":null,"abstract":"PurposeThis study examines the effect of audit quality on earnings management to beat earnings targets among Chinese listed firms, taking into account the firms’ corporate social responsibility (CSR) practice.Design/methodology/approachThe sample consists of all A-shares listed in the Chinese stock market from 2001 to 2019, except firms in the financial industry. Probit estimator is employed to observe the effect of audit quality, proxied by a binary variable indicating whether a firm is audited by a Big 4 audit firm, on the behavior of earnings management to beat earnings targets. Industry and year fixed effects are incorporated into the models to control for differences among industries and time periods.FindingsThe result of this study reveals that audit quality disciplines earnings management to beat earnings targets in Chinese firms. This result holds across different specification and endogeneity tests. The authors further find that auditors seem to be more tolerant to earnings-managed firms that actively disclose CSR activities. However, this moderating effect of CSR disclosure only exists among firms that manage earnings less aggressively.Practical implicationsThe findings of this study suggest that market participants should be mindful of the earnings management phenomenon and make their investment decisions after carefully dissecting and confirming the truthfulness of firms’ financial reporting. Regulators should raise the requirement on the capacity of auditing services to ensure the quality of the audit outcome.Originality/valueThis study is the first to investigate the effect of audit quality on earnings management to beat earnings targets in Chinese firms. Moreover, this study pioneers in observing the moderating effect of CSR disclosure on the relationship between audit quality and earnings management.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42267238","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":"Information processing costs and firm-specific information flows: evidence from the launch of high-speed railway in China","authors":"Gang Zhao, Xin Yu, Kailun Ni","doi":"10.1108/ara-03-2022-0055","DOIUrl":"https://doi.org/10.1108/ara-03-2022-0055","url":null,"abstract":"PurposeThe findings suggest that reducing information processing costs as a result of better transportation is an important ingredient in promoting the pricing of firm-specific information. This study aims to discuss the aforementioned issue.Design/methodology/approachThe authors adopt a difference-in-difference (DID) research design to examine the impact of information processing costs on stock price synchronicity with a sample of firms listed in the Chinese A-share market during 2007 and 2017.FindingsThis paper shows that the launch of the high-speed railway (hereafter HSR) in China is associated with lower stock price synchronicity, consistent with the theory that the HSR reduces investors’ information processing costs (cost of monitoring, acquiring and analyzing firm disclosures). This effect is more pronounced for companies located in remote areas than for those located in large cities. Further tests show that the negative association between the launch of HSR and stock price synchronicity is stronger for companies with higher information asymmetries, proxied by higher equity concentration, higher complexity and lower internal control quality.Originality/valueThis study contributes to the literature in the following three ways. First, prior literature relates the effects of geographic distance to information transmission and information asymmetry between insiders and outside investors (e.g. Coval and Moskowitz, 2001; Kang and Kim, 2008; Malloy, 2005). The authors supplement the literature by providing new empirical evidence from an exogenous shock (natural experiment), that is, the launch of HSR, that facilitates transportation and reduces information transmission costs. Second, prior studies have shown that new airline routes that facilitate transportation improve investment and productivity (e.g. Bernstein et al., 2016; Giroud, 2013). The authors extend this stream of studies by showing that the development of HSR networks reduces information processing costs, and promotes the incorporation of firm-specific information in the asset pricing. More importantly, in this study, the authors explicitly incorporate disclosure processing costs theory into our framework thus enhancing our understanding of how and why improvements in transport relate to better market outcomes.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42827305","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":"Financially distressed firms' earnings management behavior: does audit partners' industry expertise matter?","authors":"Yu-shan Chang, L. Liu, D. Forgione","doi":"10.1108/ara-04-2022-0079","DOIUrl":"https://doi.org/10.1108/ara-04-2022-0079","url":null,"abstract":"PurposeThe purpose of this paper is to examine whether firms use different earnings management approaches when facing financial difficulties and the effects of industry-specialist auditors in constraining those choices. The empirical results suggest that (1) firms with lower risk of business failure but with stronger incentives to adjust earnings upward tend to use real earnings management (REM) income-increasing approaches while (2) at the same time, using discretionary accruals for income-decreasing earnings management, due to constraints imposed by specialist auditors on the use of accrual-based earnings management (AEM). This is consistent with the findings of Chi et al., and the authors do not find similar evidence for the firms with higher risk of failure. Also, (3) regardless of the level of failure risk, firms turn to REM while interestingly, such REM behavior is effectively curbed by industry-leading specialist auditors (specialist auditors with the highest client market share) on financially distressed firms. These results extend the findings of Chi et al. (2011), suggesting that industry-specialist auditors have different tolerance levels for earnings management approaches by firms with different levels of business failure risk. That is, when auditing clients with higher risk of failure, specialist auditors are more likely to maintain higher audit quality through more stringent audit testing and use of more audit staff time to prevent an occurrence of audit failure.Design/methodology/approachThe authors examine earnings management behavior across firms in Taiwan with different levels of business failure risk and the effects of audit partner industry specialization in constraining that behavior. Chi et al. (2011) studied low-risk firms with incentives to adjust earnings upward and found firms use REM when the auditors constrain AEM. The authors extend the work of Chi et al. and observe firms with different levels of failure risk.FindingsThe authors find (1) lower risk firms may use discretionary accruals to adjust earnings downward while the authors find no similar evidence for financially distressed firms, (2) lower risk firms may use REM when their industry-specialist auditors curb AEM and (3) the industry leaders among specialist auditors do the same for the financially distressed firms. The results demonstrate the extent to which industry-specialist auditors apply different tolerance levels for earnings management behaviors across firms with different levels of failure risk.Originality/valueThe study contributes to the literature in the following three ways: first, the authors fill a gap in the existing literature by comparing firms with higher risk of business failure to firms with lower risk of business failure to explore the possible difference in the two different kinds of earnings management behavior; second, the authors extend the findings of Chi et al. (2011) and examine whether specialist auditors, when auditing firms with h","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43449506","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":"Board characteristics and demand for audit quality: a meta-analysis","authors":"Deepali Kalia, Debarati Basu, Sayantan Kundu","doi":"10.1108/ara-05-2022-0121","DOIUrl":"https://doi.org/10.1108/ara-05-2022-0121","url":null,"abstract":"PurposeThe study explores extant knowledge on the nature of the relationship between internal and external corporate governance mechanisms, particularly board characteristics and audit quality, respectively, while also investigating how the relationship varies across geographies.Design/methodology/approachThe extant knowledge is synthesized using a meta-analysis, which is conducted using a sample of 56 empirical studies from publications of varying grades. The studies span over 25 years (1996–2021) and cover 147 empirical samples (343,787 firm-year observations) across more than 20 countries. The dependent variable is audit fees, and the independent variable captures 12 different measures of board characteristics.FindingsOverall, the results reveal a positive association between board characteristics and audit fees, indicating complementarity between governance mechanisms. Effect size analysis shows board characteristics, like size and independence, are positively associated with audit fees. However, heterogeneity is noted for some characteristics, and further analysis by geography (developed vs emerging countries) explains the heterogeneity.Practical implicationsThis study helps multiple stakeholders like firms, shareholders, boards, regulators and policymakers in designing and strengthening governance frameworks.Social implicationsBoth governance and auditing literature benefit from identifying specific board characteristics that drive audit quality consistently across different institutional settings and samples. Heterogeneity analysis helps improve the understanding of contradictions documented in prior literature.Originality/valueThis meta-analysis is the first to explore the interplay between internal and external corporate governance mechanisms, with a focus on board characteristics and audit quality. The study provides valuable insights on how different governance mechanisms influence each other while highlighting, for the first time, how the interaction between governance mechanisms varies by a country's level of development.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47517976","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":"Global assessment of the COVID-19 impact on IFRS 9 loan loss provisions","authors":"B. Engelmann, Thi Thanh Lam Nguyen","doi":"10.1108/ara-04-2022-0105","DOIUrl":"https://doi.org/10.1108/ara-04-2022-0105","url":null,"abstract":"PurposeThis article aims to analyze the impact of COVID-19 measures by governments and central banks on International Financial Reporting Standards (IFRS) 9 loan loss provisions (LLPs). Changes in the total amount of LLPs, distribution of outstanding loan balance among IFRS 9 stages and credit risk parameters used for calculation are investigated for each world region where banks report under IFRS.Design/methodology/approachData for a global selection of 105 banks reporting under IFRS were collected from 2019 to 2020 annual reports, financial statements, and Pillar III reports. These data provide the basis to empirically analyze the impact of COVID-19 on LLPs.FindingsIn most world regions Stage 2 balances increase while Stage 3 balances remain comparatively stable. The credit risk parameters used for computing LLPs remained stable in 2020. However, in China, the impact of COVID-19 on banks was not detected. Mean Stage 1 balances for Chinese banks increased slightly during the pandemic. Aside from the COVID-19 impact, we find that LLPs, credit risk parameters, and loss absorption capacities are significantly lower for banks in Canada, Oceania and Western Europe compared to those in the rest of the world.Originality/valueThere exists previous research examining the COVID-19 impact on financial stability, implementation of emergency rules and country-wide analyses to anticipate default rates depending on recovery scenarios. However, this is the first global study on the immediate impact of COVID-19 on LLPs. It reveals the significant differences between world regions and provides implications about their resilience against future credit shocks.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42639416","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":"Ex-auditor executives and investment efficiency: evidence from Indonesia","authors":"Agnes Aurora Ngelo, I. Harymawan, M. Nasih","doi":"10.1108/ara-01-2022-0015","DOIUrl":"https://doi.org/10.1108/ara-01-2022-0015","url":null,"abstract":"PurposeThis study aims to examine the relationship between the presence of ex-auditor chief executive officers (CEOs) and ex-auditor chief financial officers (CFOs) with the company's investment efficiency decisions.Design/methodology/approachThe authors use non-financial Indonesian listed firms, and the authors obtain 2,763 firm-year observations of ex-auditor CEOs and 2,708 firm-year observations of ex-auditor CFOs from 2010–2019.FindingsThe results show that ex-auditor CEOs tend to make efficient investment decisions, while ex-auditor CFOs do not. However, when a company has a CEO and a CFO who are both former auditors, there is a significantly stronger positive relationship with investment efficiency. These results indicate that working experience as an auditor can optimally facilitate the decision regarding investment level. Moreover, the results suggest that the CEO, as top management, has more influence in providing the company's final investment decisions, whereas the CFO plays a role in providing investment recommendations to the CEO. The results of this study are consistent with the use of alternative measurements and the robustness test of Coarsened Exact Matching (CEM).Practical implicationsThe results of this study can contribute as material for consideration by company management in selecting company organs with an auditor background to secure efficient investment.Originality/valueThis study specifically examines the experience, values, and particular characteristics of top management with an auditor background on the company's strategic decisions. This study is also based on the phenomenon that the number of ex-auditor CEOs and CFOs in Indonesia tends to increase every year.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46370293","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":"Principles-based versus rules-based: accounting standards precision and financial restatements in China","authors":"Shungen Luo, Fei Song","doi":"10.1108/ara-09-2021-0177","DOIUrl":"https://doi.org/10.1108/ara-09-2021-0177","url":null,"abstract":"PurposeThis study tests the effect of accounting standards precision on financial restatements and the influence of accounting standards precision on different types of restatements (including errors and irregularities). What is more, the heterogeneity between accounting standards precision and financial restatements is verified in this paper. In the further analyses, the authors also examine the mediating roles and moderating roles on the correlation between accounting standards precision and financial restatements.Design/methodology/approachThe focus is placed on an unbalanced panel of 18,766 samples over the period of 2007–2017.FindingsThe authors find that firms' restatements decrease when standards are more principles-based (low accounting standards precision). Especially, irregularities significantly decrease when firms' standards are more principles-based. What's more, the negative relationship between principles-based standards and restatements is more significant in “big four” accounting firms. Moreover, from the mediating effect results, the authors find that low accounting standards precision decreases a firm's financial reporting complexity and increases equity restriction, which in turn can help decreasing its financial misreporting. From the moderating effect results, the authors find that the higher the TOP1 and the more analysts following the firm, the higher the benefit of accounting standards precision to misstatements.Originality/valueThe results of this study provide a theoretical reference for accounting standard setters and are helpful to inform investors and regulators about the influence of Chinese accounting standards on restatements.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41324599","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":"Perceived internationalization of accounting education: the case of Vietnam","authors":"T. Nguyen, D. Phan, Greeni Maheshwari","doi":"10.1108/ara-04-2022-0108","DOIUrl":"https://doi.org/10.1108/ara-04-2022-0108","url":null,"abstract":"PurposeThe authors explore the state of internationalization of accounting education as perceived by accounting academics, accounting employers, and accounting students in Vietnam. Based on data collected, authors draw recommendations to better facilitate internationalization of accounting education in Vietnam.Design/methodology/approachWith a qualitative approach, the authors use content analysis (materials from 27 universities) and semi-structured interviews (28 participants) to explore the state of internationalization of accounting education as perceived by academics, employers, and students in Vietnam.FindingsThe authors identify the extent of and challenges in internationalization of accounting education in Vietnam, including language barrier, teaching approach, and budgetary constraints. Practical recommendations are drawn to help overcome challenges and facilitate progress.Originality/valueThe study integrates two fields of research: accounting and education, particularly through addressing in-depth perspectives of a broad range of stakeholders in addition to a detailed examination of archival contents. Practical recommendations are proposed for short term, medium term, and long term.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41560778","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}