Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
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    - CONSUMER EDUCATION AND PROTECTION (20 journals)
    - COOPERATIVES (4 journals)
    - ECONOMIC SCIENCES: GENERAL (212 journals)
    - ECONOMIC SYSTEMS, THEORIES AND HISTORY (235 journals)
    - FASHION AND CONSUMER TRENDS (20 journals)
    - HUMAN RESOURCES (103 journals)
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    - TRADE AND INDUSTRIAL DIRECTORIES (2 journals)

ACCOUNTING (132 journals)                     

Showing 1 - 126 of 126 Journals sorted alphabetically
Accountancy     Partially Free   (Followers: 3)
Accounting Analysis Journal     Open Access   (Followers: 4)
Accounting and Finance Research     Open Access   (Followers: 23)
Accounting and Financial Control     Open Access   (Followers: 4)
Accounting Global Journal     Open Access   (Followers: 3)
Accounting History     Hybrid Journal   (Followers: 10)
Accounting History Review     Hybrid Journal   (Followers: 15)
Accounting in Europe     Hybrid Journal   (Followers: 8)
Accounting Research Journal     Hybrid Journal   (Followers: 19)
Accounting Theory and Practice     Open Access   (Followers: 6)
Accounting, Accountability & Performance     Full-text available via subscription   (Followers: 12)
Accounting, Auditing and Accountability Journal     Hybrid Journal   (Followers: 24)
Acta Marisiensis : Seria Oeconomica     Open Access  
Activos     Open Access  
Actualidad Contable Faces     Open Access   (Followers: 1)
Advances in Accounting     Hybrid Journal   (Followers: 10)
Advances in Accounting Education     Hybrid Journal   (Followers: 12)
African Journal of Accounting, Auditing and Finance     Hybrid Journal   (Followers: 12)
Al-Mal : Jurnal Akuntansi dan Keuangan Islam     Open Access  
Applied Finance and Accounting     Open Access   (Followers: 8)
Apuntes Contables     Open Access  
Asia-Pacific Journal of Accounting & Economics     Hybrid Journal   (Followers: 6)
Asian Journal of Accounting Research     Open Access  
Asian Journal of Economics, Business and Accounting     Open Access  
Asian Journal of Finance & Accounting     Open Access   (Followers: 8)
Berkala Akuntansi dan Keuangan Indonesia     Open Access  
Bulletin of Accounting and Finance Reviews     Open Access   (Followers: 1)
China Journal of Accounting Research     Open Access   (Followers: 3)
China Journal of Accounting Studies     Hybrid Journal  
Chulalongkorn Business Review     Open Access  
Cofin Habana     Open Access  
Comptabilité - Contrôle - Audit     Full-text available via subscription  
Comptabilités     Open Access  
Contabilidad y Negocios     Open Access  
Contabilidade, Gestão e Governança     Open Access  
Contaduría y Administración     Open Access  
Copernican Journal of Finance & Accounting     Open Access   (Followers: 2)
Cuadernos de Administración (Universidad del Valle)     Open Access   (Followers: 1)
Cuadernos de Contabilidad     Open Access  
Current Issues in Auditing     Full-text available via subscription   (Followers: 4)
E-Jurnal Akuntansi     Open Access  
ECA Sinergia : Revista Especializada en Economía, Contabilidad y Administración     Open Access  
EL-MUHASABA     Open Access  
Estudios Gerenciales     Open Access  
Financial Reporting     Full-text available via subscription   (Followers: 4)
Fokus Bisnis : Media Pengkajian Manajemen dan Akuntansi     Open Access  
Indonesian Accounting Review     Open Access  
International Journal of Accounting & Finance Review     Open Access  
International Journal of Accounting and Financial Reporting     Open Access   (Followers: 8)
International Journal of Accounting and Information Management     Hybrid Journal   (Followers: 5)
International Journal of Accounting, Auditing and Performance Evaluation     Hybrid Journal   (Followers: 9)
International Journal of Auditing Technology     Hybrid Journal   (Followers: 4)
International Journal of Business Reflections     Open Access   (Followers: 2)
International Journal of Finance and Accounting     Open Access   (Followers: 7)
International Journal of Finance and Accounting Studies     Open Access   (Followers: 7)
Journal of Accounting and Business Education     Open Access   (Followers: 1)
Journal of Accounting and Investment     Open Access  
Journal of Accounting and Management     Open Access   (Followers: 11)
Journal of Accounting in Emerging Economies     Hybrid Journal   (Followers: 2)
Journal of Accounting Literature     Hybrid Journal   (Followers: 5)
Journal of Applied Accounting and Taxation     Open Access   (Followers: 1)
Journal of Applied Accounting Research     Hybrid Journal   (Followers: 15)
Journal of Applied Sciences in Accounting, Finance, and Tax     Open Access  
Journal of Auditing, Finance and Forensic Accounting     Open Access   (Followers: 5)
Journal of Banking and Financial Technology     Hybrid Journal   (Followers: 1)
Journal of Cost Analysis and Parametrics     Hybrid Journal   (Followers: 5)
Journal of Economics Finance and Accounting     Open Access   (Followers: 1)
Journal of Economics, Business, & Accountancy Ventura     Open Access  
Journal of Economics, Finance and Accounting Studies     Open Access  
Journal of Empirical Research in Accounting     Open Access   (Followers: 1)
Journal of Federation of Accounting Professions     Open Access  
Journal of Finance and Accounting     Open Access   (Followers: 7)
Journal of Finance and Accounting Research     Open Access   (Followers: 1)
Journal of Financial Reporting and Accounting     Hybrid Journal   (Followers: 12)
Journal of Islamic Accounting and Business Research     Hybrid Journal   (Followers: 5)
Journal of Management Accounting Research     Full-text available via subscription   (Followers: 24)
Journal of Public Budgeting, Accounting & Financial Management     Hybrid Journal   (Followers: 3)
Journal Syariah and Accounting Public     Open Access  
Jurnal Akuntansi & Keuangan Unja     Open Access  
Jurnal Akuntansi Aktual     Open Access  
Jurnal Akuntansi dan Keuangan     Open Access  
Jurnal Akuntansi dan Perpajakan     Open Access  
Jurnal Akuntansi Indonesia     Open Access  
Jurnal ASET (Akuntansi Riset)     Open Access  
Jurnal Dinamika Akuntansi     Open Access  
Jurnal Ekonomi KIAT     Open Access  
Jurnal Ilmiah Akuntansi dan Bisnis     Open Access  
Jurnal Ilmiah Akuntansi dan Keuangan     Open Access  
Jurnal Kajian Akuntansi     Open Access  
Krisna : Kumpulan Riset Akuntansi     Open Access  
Maandblad Voor Accountancy en Bedrijfseconomie (MAB)     Open Access  
Management & Economics Research Journal     Open Access   (Followers: 1)
Meditari Accountancy Research     Hybrid Journal   (Followers: 2)
North American Actuarial Journal     Hybrid Journal   (Followers: 1)
Open Journal of Accounting     Open Access   (Followers: 2)
PEKA : Jurnal Pendidikan Ekonomi Akuntansi     Open Access  
Point of View Research Accounting and Auditing     Open Access   (Followers: 1)
Prawo Budżetowe Państwa i Samorządu     Open Access  
Profita : Komunikasi Ilmiah Akuntansi dan Perpajakan     Open Access  
Quipukamayoc     Open Access   (Followers: 1)
RACE - Revista de Administração, Contabilidade e Economia     Open Access  
Research Journal of Finance and Accounting     Open Access   (Followers: 10)
REUNIR: Revista de Administracao, Contabilidade e Sustentabilidade     Open Access  
Revista Catarinense da Ciência Contábil     Open Access  
Revista Contemporânea de Contabilidade     Open Access  
Revista de Administração, Contabilidade e Economia da Fundace     Open Access  
Revista de Análisis Económico y Financiero     Open Access  
Revista de Contabilidad : Spanish Accounting Review     Open Access  
Revista de Contabilidade do Mestrado em Ciências Contábeis da UERJ     Open Access  
Revista de Contabilidade e Organizações     Open Access  
Revista de Derecho Fiscal     Open Access  
Revista de Finanças Públicas, Tributação e Desenvolvimento     Open Access  
Revista de Gestão, Finanças e Contabilidade     Open Access  
Revista Evidenciação Contábil & Finanças     Open Access  
Revista Mineira de Contabilidade     Open Access  
Revista Universo Contábil     Open Access  
Riset Akuntansi dan Keuangan Indonesia     Open Access  
Risk Governance and Control : Financial Markets & Institutions     Open Access  
Science and Studies of Accounting and Finance : Problems and Perspectives     Open Access  
Social and Environmental Accountability Journal     Hybrid Journal   (Followers: 3)
South African Journal of Accounting Research     Hybrid Journal   (Followers: 1)
Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad     Hybrid Journal   (Followers: 1)
Studia Universitatis Babes-Bolyai Oeconomica     Open Access   (Followers: 2)
Sustainability Accounting, Management and Policy Journal     Hybrid Journal   (Followers: 12)
The Accounting Review     Full-text available via subscription   (Followers: 49)
Universal Journal of Accounting and Finance     Open Access   (Followers: 3)

           

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Journal of Applied Accounting Research
Journal Prestige (SJR): 0.227
Citation Impact (citeScore): 1
Number of Followers: 15  
 
  Hybrid Journal Hybrid journal (It can contain Open Access articles)
ISSN (Print) 0967-5426 - ISSN (Online) 1758-8855
Published by Emerald Homepage  [360 journals]
  • The contest for materiality. What counts as CSR'

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      Authors: Dirk Raith
      Abstract: The paper aims to show that materiality in the EU's non-financial reporting directive (NFRD) is an ambiguous concept, that its meaning is contested and that this contest for materiality is a contest for the meaning of Corporate Social Responsibility (CSR). Thus, the paper shall highlight a new aspect of materiality as a core principle in non-financial reporting. The paper combines a historical analysis of the EU's CSR policies, an in-depth textual analysis of the EU's 2014 NFRD and associated documents, of non-financial reporting frameworks and exemplary adoptions of the NFRD in national laws. The paper identifies two conflicting views of materiality in the NFRD. It shows that these “additive” and “cumulative” views correspond to the approaches taken by the Global Reporting Initiative (GRI) and International Integrated Reporting Council (IIRC) frameworks and by different national adoptions of the NFRD. The paper concludes that this contest for materiality is a contest for CSR – focusing either on business risks or impacts, shareholders or stakeholders, the business case or the social case for such a responsibility. The paper is mainly based on an in-depth analysis of the European debate on materiality in non-financial reporting. Some of the paper's descriptive results are thus limited to this particular case. However, the main conceptual findings are backed up by an analysis of internationally established reporting frameworks and scholarly debates on the issue. The paper reveals the practical implications of the contesting “additive” and “cumulative“ understandings of materiality present in the NFRD. The paper thus further underpins the preference for a “double materiality” perspective in the revision of the NFRD and the EC's 2021 CSRD proposal. The paper makes an original contribution in its explication of different understandings of materiality in non-financial reporting and how these eventually represent different, competing perspectives on the nature of the NFRD and of CSR.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-05-20
      DOI: 10.1108/JAAR-04-2022-0093
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of research and development expenditure on firm performance and
           firm value: evidence from a South Asian emerging economy

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      Authors: Md. Musfiqur Rahman , Md. Shuvo Howlader
      Abstract: The main purpose of the study is to analyze the impact of research and development (R&D) expenditure on firm performance and firm value in an emerging economy. In this study, firm performance is examined by firm financial performance (return on asset (ROA) and return on equity (ROE)) and market performance (Tobin's Q (TBQ)). This study conducted a multivariate analysis on the sampled data using pooled ordinary least square (OLS) regression method. In addition, both the level and lagged models have been used to test hypothesis in order to get the results. All the empirical results from different models found significant and positive association of R&D expenditure with firm performance and firm value. The study also validates that all results are robust and free from outliers and multicollinearity issues. Most of the studies regarding the R&D expenditure and its impact were conducted on developed countries addressing only firm performance. Whereby, this study examined the impact of R&D expenditure on both firm's financial performance and market performance as well as firm value in the context of an emerging economy. The outcomes of the study will enable the entrepreneurs, managers, investors and policymakers with more confidence to invest in R&D expenditure that will also ensure the organizational sustainability in the long run. Most of the prior studies regarding the R&D expenditure and its impact were conducted on developed countries addressing only firm performance. Herein, both firm's financial performance and market performance along with firm value have been analyzed in the context of an emerging economy. This paper is unique empirical research study due to different institutional and regulatory setting as well as corporate characteristics. This study strongly advocates the organizational learning theory, agency theory and resource-based view theory of firms' allocation of funds for future growth and innovation.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-05-20
      DOI: 10.1108/JAAR-07-2021-0196
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The effect of institutions on R&D investment: the case of four
           mediterranean euro area states

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      Authors: Vasileios Vlachos
      Abstract: This study investigates the impact of institutional factors on firms investing in R&D. The study uses data from the World Bank's Enterprise Surveys for the Republic of Cyprus, Greece, Italy and Portugal. A model with institutional factors as explanatory variables and firm performance factors as control variables is estimated with weighted least squares heteroscedasticity corrected regression. The reverse causality problem is addressed by using a two-stage least squares regression approach. The findings indicate that institutional quality has a significant influence on firms' R&D expenditure. The results have several implications in relation to findings of previous research. The inclusion of more countries that were affected by the European economic crisis will probably give more insights about the effect of institutional factors on R&D. Policy makers have to address short-comings in institutional quality, particularly in terms of the labor regulation burden. Policy makers should prioritize anti-corruption measures to foster an environment that would attract more R&D in the Republic of Cyprus and Greece. This study contributes to the growing body of literature investigating the impact of institutional factors on R&D. It focuses on four developed European countries that bore the brunt of the European economic crisis and have to implement their recovery and resilience plans successfully, in order to recover from the effects of the COVID-19 pandemic on their economic activity.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-05-16
      DOI: 10.1108/JAAR-07-2021-0191
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The use of visual presentations for integrated reports in the investment
           decision-making process

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      Authors: Arif Widyatama , I Made Narsa
      Abstract: This study aims to identify the effect of the format of a presentation and the form of information on the decision-making process of non-professional investors in Indonesia. Investor behaviors, including acquisition, evaluation, weighting, judgment, and allocation decisions, are explained explicitly after taking a look at the form of the information and the way it is conveyed in various presentation formats. This research used web-based experiments. It used a 2 × 2 between-subjects design. Eighty-nine selected students acted as surrogate investors. They were provided with company performance reports presented in different report formats (integrated versus non-integrated) and different forms of information (visual versus descriptive). The results showed that information, when presented visually, is more influential on investment allocation decisions in Indonesia. In addition, the result of the post hoc test indicated that integrated reports are more influential than non-integrated reports. The results of this study have significant implications for companies that publish financial and non-financial disclosures. The reports are required to be presented in an integrated and visual form in order to increase the investors' level of understanding so they can comprehend a company's performance holistically. It is necessary for Indonesian policymakers to create regulations regarding the presentation of financial and non-financial information in an integrated and visual way. This study fills a gap in the literature on integrated reports by showing that the visualization of information in such reports increases the level of understanding that underpins investment decision-making. Furthermore, this study contributes to cognitive load theory by providing evidence that the kind of presentation of information that facilitates people's cognitive ability is not only in the narrative form but visual presentation also works.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-05-13
      DOI: 10.1108/JAAR-09-2021-0238
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The effect of R&D activities on the market response and company's
           performance during the shock caused by the COVID-19 pandemic in Iran

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      Authors: Parisa Saadat Behbahaninia , Mohadeseh Golbidi
      Abstract: The purpose of this study is to investigate whether research and development (R&D) activities reduce the performance damage caused by a critical situation, such as the COVID-19 pandemic, or not. Also, this study tries to explain whether the market in its reactions pays attention to companies' R&D activities or not during the COVID-19 critical situation. The official announcement of the COVID-19 disease in Iran is considered the date of the event in this study. To consider the effect of R&D activities on the performance, three similar time periods before and after the coronavirus pandemic have been considered. Due to the widespread prevalence of coronavirus in Iran, this country has been selected to answer the research questions. The results showed that the companies that have more R&D activities performed better than other companies during this period and were able to better manage this crisis. Furthermore, companies with more R&D activities suffered lower abnormal returns during coronavirus shocks than other companies. Based on the research results, the issues that were discussed on the importance of R&D activities in the accounting literature is confirmed, and the results show the importance of R&D activities on the company's ability to overcome crises. Based on the results of this research, it can be suggested that even in difficult and critical conditions, investment in R&D activities should not be stopped and decrease. In the accounting literature, the long-term effect of R&D activities on the survival of companies has always been considered. In this study, the effect of R&D activities on market response and firm performance in a real shock is investigated, which is the innovation of this research.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-05-11
      DOI: 10.1108/JAAR-05-2021-0131
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • R&D intensity and firms dividend policy: evidence from BRICS countries

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      Authors: Fakhrul Hasan , Sujana Shafique , Bijoy Chandra Das , Rajib Shome
      Abstract: Given the importance of both research and development (R&D) investments and dividend policy in the growth of firms, this paper examines the moderating effects of investor protection and other country-level governance mechanisms on the relationship between R&D investments and dividend payments in the firms from Brazil, Russia, India, China and South Africa (BRICS countries). This empirical study uses a sample of 22,073 firm year observations from the BRICS countries over a period of 2008–2020 and employs both ordinary least squared (OLS) and system generalized method of moments (GMM) estimation methods. The GMM estimation controls for unobservable heterogeneity and endogeneity and reduces estimation bias. The findings indicate that although R&D intensity is negatively related with the cash dividend payments, with the interaction of investor protection and other country-level mechanisms the relationship between R&D intensity and dividend payments becomes positive. The results further show that investor protection has stronger impact on the relationship between R&D intensity and firm cash dividend payments than other selected country-level governance factors. The research findings should encourage the policy makers in BRICS countries to strengthen investor protection and enhance quality of their institutions to make a right balance between retaining their growth potential and maintaining the value of the firms. This is the first study to provide evidence of the moderating effects of investor protection and other country-level governance mechanisms on the relationship between R&D investments and dividend payments using the data from BRICS countries.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-05-10
      DOI: 10.1108/JAAR-02-2022-0027
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Creating value via R&D, marketing costs and financial matters

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      Authors: Abedalqader Rababah , Homa Molavi , Shayan Farhang Doust
      Abstract: The aim of this study is to examine the effect of financial leverage impact on customer satisfaction and marketing costs including research and development (R&D) and advertisement costs. Furthermore, the authors aim to investigate whether customer satisfaction as well as financial distress moderates the effect of financial leverage impact on customer satisfaction and marketing costs including R&D and advertisement costs. The statistical population of this study consists of listed companies on the Tehran Stock Exchange manually obtained from different industries in 2017. Multivariate regression based on data compilation methodology is used to test research hypotheses. The results indicate that financial leverage is negatively and significantly associated with customer satisfaction and this negative relationship is more pronounced in companies with lower sale growth. Furthermore, the authors' results suggest that customer satisfaction negatively (positively) and significantly affects firm value in companies with lower (higher)-financial leverage. The authors also demonstrate that there is no significant relationship between financial leverage caused by financial flexibility and firm value caused by customer's satisfaction (CS). The authors' findings also suggest that financial distress significantly affects the relationship between financial leverage and customer satisfaction. Finally, the authors' find that financial leverage significantly affects firms' R&D and advertisement costs. Since the fundamental institutional assumptions underpinning the Western and even East Asia financial models are not valid in the institutional environment of Iran, the authors' findings could provide substantial implications for the authors' understanding of the relationship between finance and R&D costs and contribute substantially to customer satisfaction and firm value literature as well. The sample country of the present paper has recently experienced a spate of financial collapses that somewhat contributes, indirectly, to financial distress incurred by the Iranian firms. Moreover, R&D costs are growing among the Iranian quoted firms. Since the fundamental institutional assumptions underpinning the Western and even East Asia financial models are not valid in the institutional environment of Iran, the authors' findings could provide substantial implications for our understanding of the relationship between finance and R&D costs and contribute substantially to customer satisfaction and firm value literature as well. The sample country of the present paper has recently experienced a spate of financial collapses that somewhat contributes, indirectly, to financial distress incurred by the Iranian firms. Moreover, R&D costs are growing among the Iranian quoted firms.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-04-19
      DOI: 10.1108/JAAR-05-2021-0130
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Leveraging the balanced scorecard to reformulate the strategy of
           a performing arts theater: a stakeholders' perspective

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      Authors: Sharon Moores , Naqi Sayed , Camillo Lento , Gulraze Wakil
      Abstract: This study expands the performance management literature by developing a strategy map and balanced scorecard (BSC) for a large performing arts theater (PAT). First, interviews with significant stakeholders identify key success factors (KSFs). Next, a survey is administered, and a structural model is employed to determine the importance of each KSF and their interdependent causal relationships within the PAT. Each KSF's controllability and room for improvement are also measured to facilitate implementation strategies. The results reveal that the Financial Perspective plays a critical role in the PAT's success, while significant changes can be enacted by focusing on the Internal Processes Perspective. Regarding the individual KSF, the following emerge as the most critical: excellent reputation, attendance growth, increasing sponsorship and donation, and supporting the local arts community; however, PAT managers will have to be creative to enact change through these KSF as some are difficult to control or have little perceived room for improvement. The data were collected prior to, or at the beginning of the coronavirus disease 2019 (COVID-19) pandemic. Post-pandemic priorities for the organization may have changed. By highlighting the relationships between different KSFs, this study provides PAT managers with a frame of reference for developing their BSC and performance metrics. It also offers PAT's managers a structured and adaptable approach for prioritizing their strategic choices and developing implementation plans for improved outcomes. This study exemplifies the need for applied BSC studies in various sectors, including nonprofit organizations. Specifically, this study extends the performance management literature by providing an example of a large PAT's performance measures, the inter-relationships among KSF and the resulting strategy map. The results are significant because arts management is a unique discipline based upon a specific body of knowledge (Weinstein and Bukovinsky, 2009).
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-03-30
      DOI: 10.1108/JAAR-11-2021-0308
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corruption, R&D and performance: firm-level evidence from Latin
           America

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      Authors: Marco Túlio Dinali Viglioni , Manuel Portugal Ferreira , Carlos Eduardo Stefaniak Aveline , Juciara Nunes de Alcântara
      Abstract: This study aims to investigate how firms' perceived level of corruption moderates the relationship between Research and Development (R&D) investments and firms' financial performance. The study has used dynamic panel data for local private and public firms from Latin American countries (Brazil, Chile, Mexico and Peru) during 2012–2019. The unbalanced panel was estimated using generalized method of moments (GMM) and instrumental variables (IVs) to account for endogeneity issues. The results showed that corruption has a direct and positive effect on firms' financial performance. Moreover, while firms' financial performance increases in the presence of corruption, the authors' findings suggest that corruption negatively moderates the relationship between R&D investments and firms' financial performance. This finding exposes the debate “grease the wheels” once corruption appears to work much more like sand than grease on more innovative firms. Finally, the authors observed a negative effect of long-term R&D investments on firms' performance, indicating that high levels of corruption harm even more long-term innovative activities. The authors have delimited the scope to firms from four Latin American countries, and thus, the generalization to other countries, from Latin America or other emerging countries, needs to be made with caution. Furthermore, the authors used the corruption perception index (CPI) to assess the extent of corruption and, apparently, using a single measure may limit the understanding. Future research may deepen the authors' comprehension by exploring the effects of the different practices or types of corruption. The authors' findings have challenging policy implications denoting policymakers need to prioritize the institutional quality to reduce corruption and foster firms' R&D investments. The paper has adopted a unique firm-level dataset from an underresearched region. This enriches a long-standing debate by providing new insights of corruption effects in Latin America. Therefore, the authors provided new evidence of the moderating relationship between corruption and R&D investments on more innovative firms' performance.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-03-14
      DOI: 10.1108/JAAR-07-2021-0193
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporate social responsibility and earnings quality in family firms

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      Authors: Emna Brahem , Florence Depoers , Faten Lakhal
      Abstract: The purpose of this paper is to investigate the relationship between corporate social responsibility and earnings quality, specifically in family firms. Based on a sample of French-listed firms from the period 2005 to 2016, the authors use the instrumental variable approach based on a two-stage least-squares (2SLS) estimator. The results show that Corporate Social Responsibility (CSR) performance is positively associated with the relevance and faithful representation of earnings. This means that companies that commit to CSR activities are more likely to provide high earnings quality. The results also show that the positive association between CSR performance and earnings quality is more prevalent in family firms suggesting that socially responsible family firms are willing to preserve their socio-emotional wealth by disclosing high quality earnings. The results suggest that French firms commit to CSR to satisfy the interests of their stakeholders by disclosing high-quality information supporting the conflict resolution view of CSR. The findings also support the socio-emotional wealth perspective and suggest that family firms that engage in CSR activities provide a rich informational environment through high earnings quality. This study’s findings can be thus useful to investors for their portfolio management decisions by enabling them to identify the profile of companies with high earnings quality. These results may also help standard-setters and capital-market regulators improve market transparency by introducing new requirements to encourage investing in CSR. This study extends the research on the relationship between CSR and earnings quality by focusing on two fundamental characteristics including relevance and faithful representation. This paper focuses on the effect of CSR on earnings quality in the specific context of family firms. This study offers then a better understanding of whether socially responsible family firms communicate stronger or weaker earnings quality than non-family firms based on the agency and socio-emotional wealth perspectives.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-03-10
      DOI: 10.1108/JAAR-05-2021-0139
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Differential spillover effects of different non-audit fees on audit
           report lag

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      Authors: Kam-Wah Lai
      Abstract: Regulators treat all non-audit services the same by using a broad-brush approach which is reflected in the study of total non-audit fees in the same analyses or different non-audit fees in isolation by prior studies. To know whether the non-audit services have different effects and hence, should be regulated separately, this paper compares their effects on audit report lag and examines whether they follow the implied hierarchy of the Securities and Exchange Commission. The effects of audit-related non-audit fees, tax fees and other non-audit fees are compared in an audit report lag model to determine whether they are the same statistically. Supporting tests for audit quality use discretionary accruals and the reporting of a small profit or small positive change in profit. This paper finds that different non-audit fees do not have the same effects on report lag and partial support for the implied hierarchy of the Commission. Specifically, for large accelerated filers, audit-related fees and tax fees have the same negative effects on report lag but other non-audit fees are unrelated to report lag. Tests of audit quality suggest that auditors do not compromise audit quality. Different non-audit services are unique in their spillover effects and deserve individual attention. Audit practitioners could be more comfortable in providing audit-related non-audit or tax services for audit clients since these services could facilitate audit work without compromising independence. On the other hand, they should be cautious about the provision of other non-audit services because the services do not enhance the efficiency of audit work and without such a benefit to audit clients, the provision may create issues of perceived independence. Insight is limited by the types of disclosure of non-audit fees available and the lack of internal measures of audit efficiency. The results provide deeper insight into the knowledge spillover theory and prior studies which implicitly assume all non-audit services having the same effect. The results suggest that the services should be regulated each on its own but not in a bundle. Last, this paper provides the first evidence that audit-related non-audit fees reduce report lag.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-03-10
      DOI: 10.1108/JAAR-08-2021-0198
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Future-oriented disclosure and corporate value: the role of an emerging
           economy corporate governance

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      Authors: Kameleddine Benameur , Ahmed Hassanein , Mohsen Ebied A.Y. Azzam , Hany Elzahar
      Abstract: Kuwait has taken significant steps to reform its corporate governance (CG) by introducing the New Company Law (NCL) in 2013. This study investigates how this reform of CG mechanisms affects the disclosure of future-oriented information. Likewise, it explores how CG mechanisms affect the informativeness of this disclosure. The sample comprises the nonfinancial firms listed on the Boursa Kuwait from 2014 to 2018. The study uses an automated textual analysis to measure the level of future-oriented disclosure in the annual reports of these firms. The informativeness of disclosure is proxied by firm value at three months of the date of the annual report. The study finds that Kuwaiti firms with larger board sizes and substantial ownership by institutional investors are less likely to disseminate future-oriented information. Conversely, firms with more independent directors and larger audit committees are more inclined to provide future-oriented disclosure. Furthermore, the disclosure of future-oriented information carries contents that enhance investors' valuations of Kuwaiti firms, especially in firms with fewer institutional ownership and more prominent audit committees. It focuses on management decisions to disclose information in the annual reports. Examining other channels of disseminating information, such as social media disclosure, provides avenues for future research. Policy setters in Kuwait should consider the importance of some CG mechanisms to improve the transparency of Kuwaiti firms, as suggested by the NCL. Likewise, investors should rely on such specific CG mechanisms to build their prospects about the firm's value. Apart from developed countries, the current study is the first evidence on how CG mechanisms could affect the informativeness of future-oriented disclosure in a developing economy. It is also the first to investigate the new CG mechanism introduced by Kuwait NCL in 2013.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-03-07
      DOI: 10.1108/JAAR-01-2021-0002
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of the board of directors on corporate social performance:
           a multivariate approach

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      Authors: Camélia Radu , Nadia Smaili , Adela Constantinescu
      Abstract: This study investigates the relation between the board of directors' attributes and corporate social performance. The authors examine three board of directors: characteristics, size, independence and gender diversity, and how they interact with industry to affect corporate social performance. The authors use a multivariate approach to analyze and compare the effects of governance variables on two aspects of corporate social performance, its environmental and social dimensions. Based on a sample of 983 firm-year observations, our main findings indicate that board independence, size and gender diversity each has a different impact on the environmental and social dimensions of performance, but that industrial sector moderates these effects. In particular, our results show that board member independence is positively associated with the environmental dimension of the performance of all the sample industries, but only has a positive association with the social dimension when the firms are in industries other than those that are environmentally sensitive. For these latter industries, board independence is negatively associated with the social dimension. Board size is positively associated with the environmental dimension for environmentally sensitive industries only and with the social dimension for all the industries examined, with a stronger positive effect on the latter in regard to environmentally sensitive industries. Women directors appear to raise social and environmental concerns within the board, as evidenced by their positive effect on the firms' social and environmental performance, with a stronger impact on the former. Regulators can promote changes to the way Canadian companies select directors for the purpose of achieving sustainable performance while investors will be better informed about the impact of some of the board attributes on the environmental and social dimension of performance. This study provides a portrait of the impact of governance attributes on the environmental and social dimension of performance of Canadian companies. Given the increasing interest in gender diversity in recent years, this study provides new evidence on the benefits of female board members for the two non-financial dimensions of performance.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-02-21
      DOI: 10.1108/JAAR-05-2021-0141
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • R&D spending intensity of private vs public firms: the role of cash flow,
           leverage and information quality

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      Authors: Emmanuel Adu-Ameyaw , Albert Danso , Linda Hickson , Theophilus Lartey
      Abstract: This study provides a large sample comparison of research and development (R&D) spending intensity in private and public firms and the extent to which these firms' unique characteristics affect their R&D spending rate. The study compares both private and public data from UK firms for the period 2006–2016, generating a total matched 232,029 firm-year observations, and applies a probability model technique to our large panel datasets. The authors uncover that private firms show lower R&D spending intensity compared to their public counterparts. The authors evidence also shows that privately owned firms in the technological (non-technological) sector display higher (lower) probability of R&D spending intensity. Compared with public firms, the authors further observe that the intensity of private firms' R&D spending increases with higher internal cash flow, leverage and industry information quality. The authors results remain robust to alternative econometric models. Despite the findings of this study, the authors would like to point out that the use of a single country's data limits the generalisability of our findings. Thus, future studies may also consider extending this study across multiple countries. A key implication of our study is that private firms are more likely to finance R&D intensity from the internally generated cash flow compared to the public ones. This stems from the fact that private firms are more likely to experience higher costs in raising external finance for innovative activities than public firms. Thus, easy access to funding for private firms is vital for enhancing R&D activities of the private firms. By combining both private and public firms' datasets, the authors are able to provide new evidence to suggest that the intensity of private firms' R&D spending is dependent on internal cash flow, leverage and the industry information level. In fact, to the best of the authors’ knowledge, this is the first study that explores these relationships.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-02-18
      DOI: 10.1108/JAAR-07-2021-0179
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Unraveling the existence of the necessity and sufficiency of accounting
           information

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      Authors: Serge Agbodjo , Konan Anderson Seny Kan , Solomon George Zori , Khaled Hussainey
      Abstract: The authors illustrate accounting information's effects in terms of necessity and sufficiency, using a set-theoretic approach, and highlight how the approach complements conventional correlational analyses. The authors examine the relationship between accounting numbers (accounting information) and stock prices (effect) under both correlational and set-theoretic perspectives using a value relevance methodology. The claim that accounting information is significantly correlated to an outcome does not inform the accounting information's necessity or sufficiency. In addition, findings suggest that not all control variables that are significantly correlated to a supposed accounting effect are necessary to explain that effect. Moreover, variables reflecting accounting information are not individually sufficient to explain the effect under investigation. The study contributes to set-theoretic approach to accounting research and echoes the call for a diversity of research approaches in accounting. The study may have practical implications for various accounting information users, including investors, financial analysts and financial market and accounting disclosure regulators as well. Indeed, accounting information users should consider the importance of the combined effect of multiple pieces of accounting information in the users' positions on firms' stocks. Understanding what might be the relevant combinations of accounting information associated with a given organizational context is a key in making compelling accounting-informed decisions. Such knowledge can inform reflections of accounting disclosures and regulations on the combined effects of several accounting information. First, the study adds to the newly introduced set-theoretic approach to empirical accounting. The study also resonates with the call for a diversity of research approaches in accounting. The authors empirically demonstrate that significant correlation between accounting information and its effects does not connote “necessity” or “sufficiency,” which is rather revealed by qualitative comparative analysis (QCA). Such complementarity can help accounting researchers to carry out (1) new investigations of accounting's earlier hypotheses or propositions and (2) investigations of new accounting hypotheses/propositions deriving from existing accounting theories and (3) to explore new relationships between accounting phenomena. Second, the study incidentally contributes to value relevance literature in terms of contextualization of the relevance of accounting information. Specific to the African capital markets, the study complements the few recent studies on the Bourse Régionale des Valeurs Mobilières d’Abidjan (BRVM).
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-02-09
      DOI: 10.1108/JAAR-03-2021-0077
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Managerial compensation and fixed intangible assets investment: the role
           of managerial ownership and firm characteristics

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      Authors: Emmanuel Adu-Ameyaw , Linda Hickson , Albert Danso
      Abstract: This study examines how cash and stock bonus compensations influence top executives to allocate a firm's resources to fixed intangible assets investment and the extent to which this relationship is conditional on executives' ownership, firm growth, internal cash flow and leverage. Using data from 213 non-financial and non-utility UK FTSE 350 firms for the period 2007–2015, generating a total of 1,748 firm-year observations, panel econometric methods are employed to test the authors’ model. The authors observe that executives' cash bonus compensation positively impacts fixed intangible assets investment. However, executives' stock bonus compensation has a negative and significant influence on fixed intangible assets. The authors further observe that executives either cash bonus or stock bonus crucially invest more in fixed intangible assets when the firm has a growth potential. Also, both cash bonus and stock bonus executives in firms with lower internal cash flow spend less on fixed intangible assets. Similar results are also observed for those stock bonus-motivated executives with an increase in fixed intangible assets for low leverage firms but a decrease for high leverage ones. A key limitation of this study is its concentration on a single country (United Kingdom). Thus, future studies can expand the focus of this study by looking at it from the perspective of multiple countries. The practical relevance of the study results is that firms with high growth opportunity in fixed intangible assets activity can use more cash bonus compensation (risk-avoiding incentive) to induce corporate executives to invest more in such activity. This finding is particularly important given the increasing appetite of firms in this knowledge-based economy to create expansion through fixed intangible assets investment. That is, for firms to increase fixed intangible assets investment, this study suggests that executive cash bonus compensation cannot be ignored. While this paper builds on the classic Q theory of investment literature, it is the first – to the best of the authors’ knowledge – to explore how cash and stock bonus compensations influence top executives to allocate a firm's resources to fixed intangible assets investment and the extent to which this relationship is conditional on executives' ownership, firm growth, internal cash flow and leverage.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-02-03
      DOI: 10.1108/JAAR-04-2021-0099
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Audit partner workload, gender and audit quality

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      Authors: Yosra Mnif , Imen Cherif
      Abstract: The paper aims to investigate the relation between the auditor's workload (LogAPW) and audit quality. Further, it explores whether the presence of a female audit partner (hereafter FEM) influences the LogAPW effect on audit quality. A dataset of 1,629 firm-year observations from 181 companies listed in the NASDAQ OMX Stockholm for the years 2010–2018 has been analyzed. The testable hypotheses have been tested using least squares regressions clustered at the Swedish public-listed companies (client-firm) level. The research findings first indicate that overburdened audit partners (APS) are associated with lower-quality audits, consistent with the “busyness hypothesis.” Nevertheless, the adverse association turns to be positive for FEMs, supporting the thesis that FEMs have more tendency, as compared to their male counterparts, to preserve their partnership's position in the public-audit firms. Collectively, these results seem sound, as the results hold unchanged after controlling for the endogeneity concerns and provide the same conclusion for a host of additional measures for both the client-firms' discretionary accruals and the LogAPW. Even though a lower magnitude of the client-firms' discretionary accruals corresponds to a lower-opportunistic behavior of managers, the research is limited to by which lower values of earnings management reflect a better-quality financial reporting. Given that the empirical analysis has been confined to the Swedish Corporation, the regression results might not be generalizable for other countries with different contextual features. The study might participate to the ongoing debate about the introduction of more women to the public-audit firms' elite positions (e.g. partnership) by providing evidence for the favorable female auditor effect on the quality of the client-firms' financial reporting. The regression results provide a preliminary evidence on how does the presence of a FEM mitigate the inverse relation between the LogAPW and audit quality, which is an issue that has not been examined before.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-01-13
      DOI: 10.1108/JAAR-08-2021-0219
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Is conditional conservatism a source of deviations of financial statements
           from Benford's Law'

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      Authors: Tri Tri Nguyen , Chau Minh Duong , Nguyet Thi Minh Nguyen
      Abstract: In this paper, the authors examine the association between conditional conservatism and deviations of the first digits of financial statement items from what are expected by Benford's Law. This research uses data of companies listed on the London Stock Exchange. The authors measure deviations of first digits from Benford's Law following Amiram et al. (2015) and firm-year conditional conservatism following previous studies (Basu, 1997; Khan and Watts, 2009; García Lara et al., 2016). The authors use multiple regressions to provide evidence for their hypothesis. The results show that conditional conservatism is positively associated with deviations from Benford's Law. The findings are robust across different measures of deviations and conditional conservatism. Also, the authors find that the relationship between deviations from Benford's Law and conditional conservatism is more pronounced for firms with debt issuance, and for leveraged firms facing financial distress. Next, the authors’ analyses confirm previous evidence by showing that the first digits of financial statement items of UK listed companies conform to Benford's Law at the firm-specific level and the market level, and deviations of income statements are larger than those of balance sheets and cash flow statements. The research makes significant contributions to the literature. First, this is the first study that provides empirical evidence suggesting that conditional conservatism may be a source of deviations from Benford’s Law. Second, the authors provide evidence confirming previous US findings (e.g. Amiram et al., 2015) showing that the distributions of first digits of financial statement items of UK listed companies also conform to Benford's Law. The authors’ findings have implications for auditors. Auditors should be aware of “false positive” for material misstatements when using Benford's Law as a risk assessment procedure. While both conditional conservatism and earnings management are related to deviations from Benford's Law, conservatism-related biases could indicate less audit risks. The authors provide new and original evidence suggesting that conditional conservatism is related to deviations from Benford's Law.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-01-12
      DOI: 10.1108/JAAR-02-2021-0037
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • How to de-bias investment judgements–unpacking bias and possible
           remedies in a capital investment context

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      Authors: Andreas Scherm , Bernhard Hirsch , Matthias Sohn , Miriam Maske
      Abstract: Research on biases in investment decision-making is indubitably important; however, studies in this context are relatively scarce. Unpacking bias has received attention in the psychological literature yet very little attention from management accounting research. This bias suggests that the perceived probability that an event will occur generally increases when the event's description is unpacked into a disjunction of subevents. The authors hypothesize that for a capital investment decision context, managers' judgement of the probability of a future event depends on whether the event is described as one packed event or is unpacked into several disjoint subevents. Additionally, the authors propose that altering the format of the description of an event's occurrence from percentage values to relative frequencies reduces unpacking bias. To test the study’s hypotheses, the authors conducted two experiments based on a 3 × 2 mixed experimental design in which manager participants were asked to estimate the failure probabilities of technical systems in the context of an investment decision. The authors provide evidence that unpacking bias occurs in an investment scenario, which can be characterized as a high-stakes decision context. Changing the format in which probabilities are presented from percentage values to relative frequencies significantly reduces the bias. Additional instructions did not further reduce unpacking bias. For investment decisions under uncertainty, performance indicators in management templates should be presented in relative frequencies to improve managerial decision-making. The fact that the authors could not show an additional effect of instructions in management accounting reports indicates that it is challenging for management accountants to reduce the biased decision-making of managers by “teaching” them through the provision of instructions. The authors contribute to accounting research by illustrating unpacking bias and by deriving a debiasing mechanism in a capital investment decision context.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-01-10
      DOI: 10.1108/JAAR-01-2021-0005
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Contextual factors moderating the impact of strategic management
           accounting on competitive advantage

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      Authors: Babajide Oyewo
      Abstract: This study investigates the influence of six interrelated contextual factors, namely organisational structure, quality of information technology, business strategy in terms of deliberate strategy-formulation, market orientation, market competition and perceived environmental uncertainty (PEU), on the usage intensity of innovative management accounting techniques commonly referred to as strategic management accounting (SMA); the impact of SMA usage on competitive advantage; and the moderating influence of the contextual factors on the relationship between SMA usage and competitive advantage. Survey data were obtained through a structured questionnaire from publicly listed manufacturing companies on the main board of the Nigerian Stock Exchange (NSE). Ordinary least squares (OLS) regression and moderated regression were used to analyse data. Both exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to examine the validity and reliability of variables as first and second order of analysis. Structural equation modelling (SEM) (maximum likelihood estimation method) was applied to assess the robustness of result. Market orientation and deliberate strategy-formulation emerged as significant determinants of SMA usage intensity. Although there is a significant relationship between SMA usage and competitive advantage, the strength of the relationship is moderate. Organisational structure, deliberate strategy-formulation and PEU significantly moderate the relationship between SMA usage and competitive advantage. The emergence of deliberate strategy-formulation, as both a significant predictor of SMA usage intensity and as the strongest moderator of the relationship between SMA usage and competitive advantage, establish that it is organisations that take a proactive approach to strategy issues that may derive the most benefit from SMA utilisation. The result from this study brings to fore the need to involve management accountants in strategy-formulation and implementation in order to leverage their competence in deploying SMA techniques to enhance organisational competitiveness. The current study is the first, to the researcher's knowledge, to specifically examine interrelated contextual factors distinctively affecting SMA usage and organisational competitiveness in a developing country. Whilst these six factors have been stressed as important determinants of the adoption of innovative management accounting techniques, the study provides empirical evidence on the extent to which they exert on SMA. The study presents empirical evidence on the relevance of market orientation—a construct which has surprisingly received little research attention in management accounting literature—as a variable which could affect the adoption of management accounting innovation.
      Citation: Journal of Applied Accounting Research
      PubDate: 2022-01-03
      DOI: 10.1108/JAAR-04-2021-0108
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Asymmetric financial reporting quality and firm size: conditional evidence
           from an emerging market

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      Authors: T.G. Saji
      Abstract: The mandatory adoption/convergence of IFRS has increased the information quality of reported earnings in equity markets across the globe. The purpose of the study is to explore whether the mandatory convergence of Indian Accounting Standards (Ind AS) with International Financial Reporting Standards (IFRS) affect the financial reporting quality of listed firms in India. The sample includes 355 non-financial publicly listed firms on National Stock Exchange (NSE) of India with 1,065 firm-year observations. The authors use models similar to Jones (1991), and DeFond and Jiambalvo (1994) to investigate value relevance in the period “1st January 2017 to 31st December 2019”. The study uses the quantile regression (QR) analysis to verify our hypothesis. The findings suggest that IFRS convergence process adds value to accounting quality of reported earnings in Indian stock market. The authors' QR estimations produce collaborating evidence on the uneven impact of IFRS across quantiles and the financial reporting quality skewed in favour of investors of high-valued firms. The effects of convergence with IFRS in value relevance of financial statements could be reinforced by considering alternate accrual models and incorporating more accounting measures on an expanded sample of stocks from several global markets. Presently, convergence of local accounting standards to IFRS in India is only partial. The findings may produce useful insights for regulators and standard setters to further increase the value relevance of financial reports whilst they move towards full convergence. The study explores the information quality of reported earnings of Indian listed firms in post-IFRS convergence period, which is not properly investigated in the literature. Moreover, the research is unique in terms of applying QR estimations to examine the value relevance of IFRS-converged financial reporting from the emerging market perspective.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-12-27
      DOI: 10.1108/JAAR-10-2021-0264
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The impact of corporate social responsibility on firm financial
           performance: does audit quality matter'

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      Authors: Anissa Dakhli
      Abstract: The purpose of this paper is to investigate the relation between corporate social responsibility (CSR) and firm financial performance, and how audit quality moderates this relationship. This study uses panel dataset of 200 French firms listed during 2007–2018 period. The direct and moderating effects were tested by using multiple regression technique. The authors find that CSR has a positive impact on firm financial performance proxy with return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ), suggesting that investment in social activities helps firms to achieve better financial results. The authors also find that the improvement effect of CSR on corporate financial performance is more pronounced for firms audited by Big 4 auditors. One limit of this study is the selection of independent variables. We are limited to one variable, namely CSR engagement. Further studies may consider other independent variables, such as the age of the company, the type of industry, the composition of the board of directors, etc., in order to provide an in-depth analysis of corporate financial performance drivers. The findings have practical implications that may be useful to managers in their management of the firm. They encourage all board members to seriously weigh investing in developing strategies that promote the social behavior components in order to improve overall corporate performance. The research adds to the current literature on CSR by revealing the impact of external auditor quality on the CSR–financial performance relationship. In addition, it investigates not only the overall CSR ratings but also each of CSR dimensions, namely environmental, social and governance.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-12-21
      DOI: 10.1108/JAAR-06-2021-0150
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Corporate social responsibility disclosure and information asymmetry: does
           boardroom attributes matter'

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      Authors: Amal Hamrouni , Mondher Bouattour , Nadia Ben Farhat Toumi , Rim Boussaada
      Abstract: The current study aims to investigate the relation between corporate social responsibility (CSR) and information asymmetry, as well as the moderating effect of board characteristics (gender diversity, size and independence) on this relationship. This paper uses a panel data regression analysis with the system generalized method of moments (SGMM) estimator of nonfinancial French firms included in the SBF 120 index. The environmental and social disclosure scores are collected from the Bloomberg database, while financial data are collected from the FactSet database. The empirical results demonstrate that environmental disclosure has a positive impact on the level of information asymmetry, while social disclosure has no effect on the information environment. Gender diversity and board independence negatively impact the opacity index, while board size has a positive effect. The presence of women in board composition has a substitution effect on the relationship between environmental disclosure and information asymmetry. There is no moderating effect of board size on the association between CSR disclosure and information asymmetry. However, the proportion of independent female directors and board independence operates as substitutes to social disclosure on reducing information asymmetry. Although the models include the most common control variables used in the literature, they omit some variables. Second, the results should be interpreted with caution and should not be generalized to the entire stock market since the sample is based on large French companies. The results of this study may be of interest to managers, investors and French market authorities since France is characterized by highly developed laws and reforms in the area of CSR. In addition, the paper leads to a better understanding of how women on the board, in particular, independent female directors, affect the relationship between CSR disclosure and information asymmetry. This could be of interest to French authorities, which has encouraged the appointment of women through the adoption of the Copé–Zimmermann law. First, to the best of the authors' knowledge, this is the first study to explore the moderating effect of board characteristics on the relationship between CSR and information asymmetry. Second, unlike previous studies using individual proxies to measure information asymmetry, the authors favor the opacity index of Anderson et al. (2009). They calculate this index by including a fifth individual measure, namely, share price volatility. The opacity index better describes the information environment of companies than individual measures since it reflects the perceptions of investors and analysts together.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-11-29
      DOI: 10.1108/JAAR-03-2021-0056
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Creating sustainability reports that matter: an investigation of factors
           behind the narratives

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      Authors: Habiba Al-Shaer , Khaldoon Albitar , Khaled Hussainey
      Abstract: This paper aims to provide a novel approach to examine sustainability report narratives by considering key features of these narratives including, forward-looking content, risk content, tone and sustainability-specific content. Using a sample of UK firms' sustainability reports from 2014 to 2018, the authors capture the report content by compiling a collection of words using a computational linguistic technique that attempts to identify specific attributes of sustainability reports. The findings show the main factors that determine the content of sustainability reports are: (1) external governance-related factors, including the voluntary adoption of sustainability reporting assurance, the choice of assurance provider, stakeholder engagement and ownership concentration; (2) internal governance factors, including board quality and the existence of a sustainability committee; and (3) reporting behaviour including the publication of standardised Global Reporting Initiative (GRI) sustainability reports and financial reporting quality. The authors limit our sample to companies operated in the UK. Future research can explore the results in other institutional contexts such as North America or Asia–Pacific where the governance of sustainability reporting and other factors determining the content of sustainability reports could be different. Also, it would be interesting to interview managers and other stakeholders to obtain their opinions with regard to sustainability reporting and assurance practices and to understand their opinions regarding the GRI guidelines and its appropriateness. This study combines different research streams to advance our understanding of sustainability disclosures and factors that determine sustainability narratives. Corporate managers need to strengthen their internal and external governance mechanisms to enhance the comprehensiveness and credibility of sustainability reports and are encouraged to engage stakeholders in the sustainability reporting process. Policymakers can mandate the assurance of sustainability reports and establish reporting formats and standard words to control the tone of sustainability reports. Finally, researchers, professionals as well as policymakers need to monitor sustainable development goals and targets to increase awareness, knowledge and practices that can be operationalised to ensure a global society that can afford sustainable living. To the best of our knowledge, no study has yet examined sustainability report narratives by considering key features of these reports, including forward-looking content, risk content, tone and sustainability-specific content.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-11-23
      DOI: 10.1108/JAAR-05-2021-0136
      Issue No: Vol. 23 , No. 3 (2021)
       
  • Revisiting earnings quality and bank efficiency among East African
           developing economies: do systemic banking and financial crises matter'
           

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      Authors: David Mutua Mathuva , Moses Nzuki Nyangu
      Abstract: In this paper, the authors investigate whether the systemic local banking crises (LBCs) and global financial crisis (GFC) impact the association between bank profit efficiency and earnings quality in developing economies. Using panel data spanning 29 years over the period 1991–2019 for 169 banks drawn from five East African countries, the authors perform difference-in-difference multivariate analyses using the generalised method of moments (GMM) system estimator on a sample consisting of 2,261 bank-year observations. The results, which are robust for endogeneity and other checks, show that banks with higher profit efficiency consistently report higher quality earnings. The authors further establish that whereas systemic LBCs contribute negatively to bank earnings quality, the GFC tends to have a positive impact. These results are upheld when the joint impacts of both systemic LBCs, GFC and profit efficiency on earnings quality are considered. The positive influence of profit efficiency and GFC on earnings quality is pronounced under income-decreasing earnings management. The impacts of profit efficiency, LBCs and GFC on earnings quality appear to be non-monotonic and vary across the sampled countries. The study's findings are based on banks in five developing countries within a regional economic bloc. Additional studies could focus on other economic blocs for enhanced generalisability of the findings. In addition, some of the variables examined are studied at bank-level, while other variables are at country-level. Finally, the study establishes an association between the variables of interest, and this does not necessarily imply causation. The results provide useful insights to bank regulatory and supervisory agencies on the need to exercise increased risk-based scrutiny over bank loan loss provisioning and minimum loan loss reserve requirements. From an audit perspective, auditors need to be cautious and apply an enhanced risk-based audit especially when auditing banks during and after a financial, banking or systemic crisis. Credit rating agencies need to pay closer attention to the LLPs of distressed banks. Finally, bank investors and customers should be cautious when using bank financial statements, since bank managers of poorly performing banks might engage in aggressive earnings management. The study is perhaps the first to examine the joint effects of systemic LBCs on the association between bank profit efficiency and the quality of earnings in a larger dataset of banks in a developing regional economic bloc. The authors also employ the GMM system estimator in the modelling, which helps address some weaknesses in prior studies.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-11-18
      DOI: 10.1108/JAAR-10-2020-0219
      Issue No: Vol. 23 , No. 3 (2021)
       
  • Utilizing the social cognitive career theory in understanding students'
           choice in selecting auditing as a career: evidence from Ghana

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      Authors: Lexis Alexander Tetteh , Cletus Agyenim-Boateng , Amoako Kwarteng , Paul Muda , Prince Sunu
      Abstract: The study uses social cognitive career theory (SCCT) to explore the driving and restraining factors that students consider in selecting auditing as a career. Considering the aim of this study, a qualitative research was preferred with the objective of gathering in-depth and enriched empirical data; hence, semi-structured interviews were conducted with seventy-five fourth-year undergraduate accounting students of six top-ranked universities in Ghana that offer accounting programmes. The findings of the current study unearth the constructs of the SCCT that students' decision to consider a career in audit is driven by outcome expectations (high earnings/monetary incentives and social prestige associated with the job), as well as self-efficacy belief (possession of ethical values). Further, the study finds that self-efficacy beliefs (job stress and accounting stereotype) were the factors restraining students from considering auditing as a career. The results finally show that the students who would choose auditing as a career in future are in one way or the other, preparing for the achievement of their goals. The SCCT framework utilized focuses on the three main constructs: self-efficacy, outcome expectations and goals. There are a number of related factors that may influence students' career choice decisions. These may include personal characteristics and contextual influences; a change of the theoretical framework may help discover other important personal and contextual factors that this current study could not unearth. The study indicates, on the contrary, that students have negative perceptions about auditing as a career option; they consider the career as stressful, tedious and monotonous. These misconceptions make it less likely for a student to pursue auditing as a career. Educators can aid students in their decision to pursue a study in accounting and become auditors by displaying and reinforcing the positive outcomes that come with the position of an auditor. The findings of this study add to the existing literature by delving deeper into the self-selection factors that influence a student's desire to become an auditor. Furthermore, the current research is exceptional in that it applies the SCCT to the aim of becoming an auditor. Although other research studies have looked into factors that may influence a student's decision to pursue a profession as an accountant, these studies have mostly been quantitative, limiting the students' ability to explain why those factors encourage or dissuade them.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-11-16
      DOI: 10.1108/JAAR-03-2021-0079
      Issue No: Vol. 23 , No. 3 (2021)
       
  • National culture and public-sector budgeting: the mediating role of
           country-level institutions using a structural equation modeling approach

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      Authors: Hamid Zarei , Hassan Yazdifar , Mohsen Dahmarde Ghaleno , Navidreza Namazi
      Abstract: Despite cultural dimensions being included in hundreds of business and management research studies, there have been relatively few studies in public-sector accounting that include the use of cultural dimensions. It is posited that national cultural variables impact the institutions, which, in turn, have an influence on public-sector budgeting. The study aims to contribute to the literature by examining these relations in 31 countries. These relationships are empirically evaluated by structural equation modeling using measures of national culture from Global Leadership and Organizational Behavior Effectiveness (GLOBE) study and Worldwide Governance Indicators (WGIs) measures named institutions from the World Bank. Furthermore, measures of public-sector budgeting are evaluated in which public-sector budgeting is classified according to the legislative power of the purse and budget transparency. Generally, findings reveal that institutions mediate the relationship among national cultural variables and budgeting at the national level. By that means, budgeting in a given nation is linked to the nation's supporting institutions which, in turn, are influenced by the national culture of those who maintain them. Particularly, power distance and uncertainty avoidance impact budgeting through the full mediation of institutions. The World Bank's database used for the institutions contained over 200 countries (Kaufmann et al., 2007); the GLOBE cultural database (House et al., 2004) contained data for 62 societies; the public-sector budgeting (Qi and Mensah, 2011) included power of the purse and budgeting transparency country scores for 49 countries and the datasets comprised 31 nations, mostly from Organisation for Economic Co-operation and Development (OECD) countries. While smaller than we would have preferred, the size is consistent with other international studies (for instance: Waldman et al., 2006; Kwok and Tadesse, 2006). The findings of the paper suggest that any plan to improve a nation's budgeting should consider the links between budgeting, supporting institutions and the culture of those that run them. The formal adoption of new methods and standards by supporting institutions may not be enough without accompanying efforts to transform national culture. The theoretical contribution of the paper is discussed further in the paper.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-11-15
      DOI: 10.1108/JAAR-05-2020-0102
      Issue No: Vol. 23 , No. 3 (2021)
       
  • Impact of corporate life cycle on misclassification practices: evidence
           from IFRS adoption in India

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      Authors: Manish Bansal
      Abstract: The study aims to examine the impact of the firm life cycle on the misclassification practices of Indian firms. The study also examines the impact of International Financial Reporting Standards (IFRS) on the misclassification practices of Indian firms. The study uses Dickinson (2011) cash flow patterns to classify firm-years under life cycle stages. Two forms of misclassification, namely revenue misclassification and expense misclassification have been examined in this study. Based on a sample of 19,268 Bombay Stock Exchange (BSE) firm-years spanning over ten years from March 2010 to March 2019, results show that firms operating at high (low) life cycle stage are more likely to be engaged in revenue (expense) misclassification, implying that firms substitute between the classification shifting tools depending upon ease and needs of each tool. Further, our results demonstrate that the magnitude of expense shifting has been significantly increased among test firms (firms reporting under IFRS) relative to benchmark firms (firms reporting under domestic GAAP) in the post-IFRS adoption period, implying that adoption of IFRS negatively affects the accounting quality of Indian firms. The study considers only two main forms of misclassification, namely revenue and expense misclassification. However, future research may explore the cash flow misclassification. The findings suggest that standard-setting authorities make more mandatory disclosure requirements under IFRS to curb the corporate misfeasance of classification shifting. First, the study is among the earlier attempts to examine the impact of the firm life cycle on misclassification practices. Second, the study explores the unique Indian institutional settings concerning the phased-manner implementation of IFRS and examines its impact on the classification shifting practices of firms.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-10-26
      DOI: 10.1108/JAAR-03-2021-0069
      Issue No: Vol. 23 , No. 3 (2021)
       
  • Non-financial variables related to governance and financial distress
           prediction in SMEs–evidence from Egypt

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      Authors: Yasmine M. Ragab , Mohamed A. Saleh
      Abstract: This study examines the effect of non-financial variables related to governance on the accuracy of financial distress prediction among Egyptian listed small and medium-sized enterprises (SMEs), by using the logistic regression technique. This study used a sample of 24 Egyptian-listed SMEs in each year, totaling 120 firm observations, of which 25 were classified distressed and 95 of them non-distressed between 2014 and 2018. The variables for the study included five financial variables and thirteen non-financial variables related to governance. The models were developed using financial variables alone as well as combining financial and non-financial variables related to governance. The results showed that the model with financial variables had a prediction accuracy of 91.7% , whereas models with a combination of financial and non-financial variables related to governance predict with comparatively better accuracy of 92.7 and 93.6% . Although the results seem to be conclusive, it could be noted that the non-distressed sample was not paired with the distressed sample. Other studies showed that paired samples increase the financial distress prediction rate. Furthermore, due to the small sample size, this study was unable to create a hold-out sub-sample for the accuracy test. The proposed distress prediction model for SMEs is effective for stakeholders, including banks and other financial institutions, in the assessment of the credit risk of SMEs. Using such a model, they could better identify SMEs with a higher risk of failure in their lending decisions. Moreover, SME managers' could be interested in using such models as a tool for planning corrective action, in addition to planning and controlling current operations to avoid financial failure in the future. This study contributes to financial distress prediction literature in different ways. First, few studies were conducted in the area of financial distress among SMEs. Second, neither of these studies was conducted within the Egyptian context, nor any of them had used non-financial variables related to governance in the prediction of financial distress among SMEs.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-10-25
      DOI: 10.1108/JAAR-02-2021-0025
      Issue No: Vol. 23 , No. 3 (2021)
       
  • Fuzzy AHP-TOPSIS method for ranking the solutions of environmental taxes
           implementation to overcome its barriers under fuzzy environment

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      Authors: Ahmad Khodamipour , Mahdi Askari Shahamabad , Fateme Askari Shahamabad
      Abstract: Many developed countries have been using environmental taxes in their economic systems for many years. These taxes have a great impact on reducing the environmental damages of companies and individuals in society. But many developing countries have not used this tool effectively yet, and some countries face barriers to the effective implementation of environmental taxes that make it difficult and unsuccessful. To increase the effectiveness of the implementation of environmental taxes, governments must prioritize barriers and solutions to overcome its barriers. The identified knowledge gap of the pre-literature review is that an overview of the identification which completely considers all barriers and solutions of environmental taxes implementation does not exist. In response to this knowledge gap, this study aims to identify and prioritize the barriers and solutions of environmental taxes implementation. Ranking the barriers and solutions is a complicated multi-criteria decision making (MCDM) problem that requires consideration of multiple feasible alternatives and conflicting tangible and intangible criteria. This study addresses the prioritization of solutions of Environmental Taxes implementation by proposing hybrid MCDM methods based on the Fuzzy Analytic Hierarchy Process (Fuzzy-AHP) and the Fuzzy Technique for order preference by similarity to an ideal solution (Fuzzy-TOPSIS) under fuzzy environment. Fuzzy AHP is used to determine the weight of each barrier using a pairwise comparison, and fuzzy TOPSIS is used to finalize the ranking of solutions for more effective implementation of environmental taxes. The results showed that environmental tax reform (ETR) (S3) has the highest value among the solutions for more effective implementation of environmental taxes. The result of the proposed model is validated by performing sensitivity analysis. This study could foster research on the discussion of these barriers and precise ways of implementing solutions to pay more attention to environmental taxes. Ratings of solutions can be a guide and help governments to improve the implementation of environmental taxes or even develop this policy by being aware of the ranking of barriers and solutions. This paper creates a new perspective on the effective implementation of environmental taxes, which is closely related to improving environmental performance and increasing social welfare through improving the tax system. For the first time, this study comprehensively identifies barriers and solutions for more effective implementation of environmental taxes and ranks them using two MCDM techniques.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-10-22
      DOI: 10.1108/JAAR-03-2021-0076
      Issue No: Vol. 23 , No. 3 (2021)
       
  • IFRS adoption and financial reporting quality in the MENA region

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      Authors: Abdulbaset Ab Klish , Moade Fawzi Shaker Shubita , Junjie Wu
      Abstract: Global interest in adopting the International Financial Reporting Standards (IFRS) has risen rapidly; however, the Middle Eastern and North African (MENA) countries have reacted differently towards the international diffusion. The purpose of this study is to examine the impact of the IFRS adoption/rejection decision on the quality of MENA region firms' financial reporting. The quality of accounting is examined through five metrics models to measure earnings smoothing, managing earnings towards a target and timely loss recognition. The research sample consists of nine countries over a period of ten years (2006–2015), resulting in 3,040 firm-year observations in the main phase, and 2,580 firm-year observations in the additional analysis. The findings reveal that the overall sample of IFRS adopters in the MENA region has benefited from the adoption of IFRS, as the results show that there is a reduction in earnings management for IFRS adopters in comparison to local standards adopters. The sub-sample analyses also reveal that firms that adopted IFRS, in both the rentier (oil-dependent states) and non-rentier states, have a higher financial reporting quality than non-IFRS adopters. However, the magnitude of the financial reporting quality was higher for IFRS adopters in rentier states. Similarly to previous research in this field, this study adopts a strict sample selection approach. Such an approach may limit the sample size, although the researchers have taken every possible step to ensure the use of an adequate sample size. The researchers acknowledge the strict period of ten years, despite having stated its rationale and importance of a more extended period to the quest of the paper. This research provides valuable input by evaluating the current status of MENA region firms' financial reporting quality, based on their followed accounting regime. The implications of this paper result in better-informed decisions for investors as the information contents of the annual reports enhance comparisons that facilitate the further flow of investments. This research also provides significant insight into the International Accounting Standards Board (IASB). The findings of this study will assist the IASB in understanding the MENA region by measuring the consequences of the countries' decisions on the quality of firms' financial reporting. The findings of this study contribute to the literature by revealing that countries with medium levels of governance quality have benefited the most from the IFRS adoption, while IFRS adopters in countries with stronger governance quality demonstrate lower financial reporting quality.
      Citation: Journal of Applied Accounting Research
      PubDate: 2021-10-22
      DOI: 10.1108/JAAR-08-2020-0155
      Issue No: Vol. 23 , No. 3 (2021)
       
  • Journal of Applied Accounting Research

    • Free pre-print version: Loading...

       
 
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