Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
    - ACCOUNTING (132 journals)
    - BANKING AND FINANCE (306 journals)
    - BUSINESS AND ECONOMICS (1248 journals)
    - 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)
    - INSURANCE (26 journals)
    - INTERNATIONAL COMMERCE (145 journals)
    - INTERNATIONAL DEVELOPMENT AND AID (103 journals)
    - INVESTMENTS (22 journals)
    - LABOR AND INDUSTRIAL RELATIONS (61 journals)
    - MACROECONOMICS (17 journals)
    - MANAGEMENT (595 journals)
    - MARKETING AND PURCHASING (116 journals)
    - MICROECONOMICS (23 journals)
    - PRODUCTION OF GOODS AND SERVICES (143 journals)
    - PUBLIC FINANCE, TAXATION (37 journals)
    - 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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Meditari Accountancy Research
Journal Prestige (SJR): 0.766
Citation Impact (citeScore): 3
Number of Followers: 2  
 
Hybrid Journal Hybrid journal   * Containing 14 Open Access Open Access article(s) in this issue *
ISSN (Print) 2049-372X - ISSN (Online) 2049-3738
Published by Emerald Homepage  [360 journals]
  • Crisis accountability and aged “care” during COVID-19

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      Authors: Erin Jade Twyford
      Abstract: This study aims to fill the gaps in mandated reports with social accounts to provide more inclusive accountability during a crisis using the illustrative example of Anglicare’s Newmarch House during a deadly COVID-19 outbreak. This study uses a close-reading method to analyse Anglicare’s annual review, reports, board meeting minutes and Royal Commission into Aged Care submissions. Informed by Foucault’s concept of biopolitics, the study collocates alternate “social accounts” in the form of investigative journalism, newspaper articles and media commentary on the events that transpired at Newmarch House to unveil a more nuanced and human-centric rendering of the ramifications of a public health/aged care crisis. COVID-19 exacerbated pre-existing issues within the aged care sector, exemplified by Newmarch House. The privileging of financial concerns and lack of care, leadership and accountability contributed to residents’ physical, emotional and psychological distress. The biopolitical policy pursued by powerful actors let die vulnerable individuals while simultaneously making live more productive citizens and “the economy”. Organisations express their accountability by using financial information provided by accounting, even during circumstances with more prevailing humanistic concerns. A transformational shift in how we define, view and teach accounting is required to recognise accounting as a social and moral practice that should instead prioritise human dignity and care for the betterment of our world. This paper contributes to the limited literature on aged care, extending particularly into the impact of COVID-19 while contributing to the literature concerned with crisis accountability. To the best of the author’s knowledge, this paper is also the first to examine a form of biopolitics centred on making live something other than persons – the economy.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-25
      DOI: 10.1108/MEDAR-05-2021-1296
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Sustainability, Non-Financial, Integrated, and Value Reporting (Extended
           External Reporting): A conceptual framework and an agenda for future
           research

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      Authors: Charl de Villiers , Pei-Chi Kelly Hsiao , Stefano Zambon , Elisabetta Magnaghi
      Abstract: This paper aims to develop a conceptual framework for extended external reporting (EER) influences (EERI), including sustainability, non-financial, integrated and value reporting. Using the Environmental Legitimacy, Accountability, and Proactivity (ELAP) framework as the base, we modify its proposed concepts and linkages using relevant conceptual models, prior reviews and findings of recent studies on EER. This paper presents contributions of the special issue on “non-financial and integrated reporting, governance and value creation” and avenues for future research. Drawing on relevant conceptual models, prior reviews and recent EER studies, we reframed the ELAP framework into a framework that theorises the factors that affects, or are affected by, EER. The EERI framework poses relationships between and within proactivity, external verification, accountability and legitimacy. It also consolidates possible determinants and consequences of EER. The papers published in this special issue contribute further insights on factors that influence reporting practices, processes and suggestions for capturing and communicating value creation information, and the value of integrated reports and assurance to capital providers. Along with the insights provided by papers in this special issue, the conceptual framework can be used to theorise influences of EER and guide future research.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-20
      DOI: 10.1108/MEDAR-04-2022-1640
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Users’ perspective on the usefulness of international financial
           reporting standards for small and medium-sized enterprises-based financial
           reports

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      Authors: Dinuja Perera , Parmod Chand , Rajni Mala
      Abstract: The International Accounting Standards Board (IASB) has justified the simplification of International Financial Reporting Standards (IFRS) for small- and medium-sized enterprises (SMEs) in several ways, but no effective justification for this simplification has been made based on the information needs of users. This study aims to provide empirical evidence of the decision usefulness of IFRS for SMEs from a prominent user group of SME financial statements – the banks. This study uses a mixed-method approach. First, a survey was conducted on commercial bank lending officers to assess the usefulness of different disclosure items included in the SME financial statements. Second, semi-structured interviews were conducted with commercial bank lending officers to gain an in-depth insight into the appropriateness and economic consequences of the requirements of IFRS for SMEs on their lending decisions. The findings show that commercial bank lending officers did not consider all the disclosure requirements presented to them to be equally important. Hence, to facilitate the actual needs of the users’ decision usefulness, it is imperative that when given the opportunity, users participate in the development of accounting standards. The findings of this study will be of interest to accounting regulators for evaluating the successful implementation of IFRS for SMEs and planning the next review of IFRS for SMEs. The IASB and SME Implementation Group are presently considering ways to increase user involvement for the next review of IFRS for SMEs, and the findings of this study signify the need for user involvement in the standard setting process.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-18
      DOI: 10.1108/MEDAR-03-2020-0809
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Sustainability reporting quality and the financial sector: evidence from
           China

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      Authors: Shidi Dong , Lei Xu , Ron P. McIver
      Abstract: Based on institutional theory, this paper aims to examine whether, and if so which, institutional forces influence the quality of China’s listed financial institutions’ (FIs) sustainability disclosures. Using univariate statistical and multiple regression analyses, this study quantitatively examines the impacts of coercive pressure from the government and stock exchanges, imitation within subsectors and normative pressure from industry associations and regulators on the quality of China’s listed FIs’ sustainability disclosures. Assessment of the robustness of regression results uses panel random-effects and generalized methods of moments estimation. Financial sector corporate social responsibility (CSR) disclosure quality did not increase dramatically following issue of the “Guiding Opinions on Establishing a Green Finance System.” However, a convergence in quality is found over time. State ownership concentration and state links to dominant shareholders negatively impact the quality of financial sector sustainability disclosures, whereas stock exchange index listing requirements and industry association reporting guidance have positive influences. First, data availability limits the sample to listed financial firms with RKS quality scores. Thus, results may not be generalizable to the broader listed and unlisted financial sector. Second, this study only examines the influence of external forces based on institutional theory. However, internal institutional forces, such as corporate governance, may require examination. This study’s results indicate that coercive pressure, as represented by issue of the “Green Finance” policy, has not yet prompted the financial sector to improve reporting quality; however, normative pressure has had significant influence in influencing FIs’ CSR practices, with China’s banks potentially taking a leading role. The financial sector has a lower direct environmental impact than traditional polluting industries and different operating and reporting structures, features often used to argue for its exclusion in prior studies. However, its indirect environmental impact via lending and investing activities is significant, suggesting evidence on the determinants of sustainability disclosure quality is required. This study uses evidence from China’s financial sector to reduce this gap in the literature.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-18
      DOI: 10.1108/MEDAR-05-2020-0899
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • In the short-term, it is never the wrong time to certify: the mitigating
           impact of certification on firm valuation

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      Authors: Josette Edwards Pelzer , Robert Stephen Hogan
      Abstract: This study aims to examine the timing of the disclosure of a firm’s environmental certification. In general, certifications comply with signaling and legitimacy theories and serve to bolster a firm’s reputation, financial performance and valuation, among other benefits. However, when a firm finds itself facing a reputational threat, it is unclear whether disclosing a recent certification would provide those same benefits or be perceived by investors as “greenwashing” or a disingenuous distraction from the threat. This study is based on a case and survey the authors developed that is supported in methodology and approach by past academic work. The findings suggest that in the short term, the disclosure of the certification benefits the firm regardless of the current reputational environment, good or bad. More specifically, investors view the certification as a benefit (rather than an attempt to distract) even when its disclosure was immediately proceeded by a reputational threat. This study is limited by the population of survey respondents from which the authors collected data and their internal predispositions and biases. This work is applicable to firms that have engaged in certifications or are considering such certifications as well as firms that provide certification services. The study is also relevant to stakeholders and consumers of information related to certifications. This study is operationalized through the use of a case and survey the authors developed. The research question the authors attempt to answer is derived from a question raised in the literature. The authors are unaware of any other study that addresses this question.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-18
      DOI: 10.1108/MEDAR-06-2021-1324
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Regulatory intervention and audit quality: new evidence from audit firm
           suspension

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      Authors: Zhuoan Feng , Lina Zixuan Li , Hau Yan Wong , Jilnaught Wong
      Abstract: This paper aims to examine how auditors respond through audit fees and audit quality following disciplinary actions imposed by audit regulators in an emerging market setting. This paper uses the disciplinary actions in 2017 against two major audit firms in China as an exogenous shock to examine the effect of tougher enforcement actions on auditor behavior as reflected in their emended audit fees and audit quality. This paper sampled from publicly listed firms in China with requisite data for the period 2015 through 2018. Using a difference-in-differences model, this paper examines whether the enforcement action (i.e. the suspension of audit firms) significantly impacted the audit fees and audit quality for clients of the disciplined audit firms (hereafter, suspended audit firms) in the two-year period postsuspension relative to audit firms that were not disciplined (hereafter, nonsuspended audit firms). This paper finds evidence of increased audit fees and improved audit quality by the suspended audit firms relative to the nonsuspended audit firms in the two-year period postsuspension. These findings suggest that in contrast to symbolic disciplinary actions such as public censures documented in prior literature (Boone et al.,2015), tougher punitive disciplinary actions are followed by an increase in audit fees and an improvement in audit quality by the suspended audit firms. This paper also finds that the deterrent effect from the audit firm suspension is exclusive to the penalized audit firms and had no positive spillover effects on their peers. A limitation of this study is the focus on the effect of audit firm suspension against two large local audit firms in China. Given the unique characteristics of the Chinese audit market and the Chinese regulatory environment, our findings may not be generalizable to audit firms in other countries and jurisdictions, especially where the audit market is dominated by the international Big 4 auditors that possess greater brand name capital than second-tier local audit firms. This paper provides novel evidence on the impact of strengthened enforcement on auditor behavior in an emerging market setting. This paper contributes to the existing literature examining the impact of regulatory interventions on financial reporting outcomes and audit quality. While there is evidence on how regulations affect financial statement preparers’ demand for high audit quality, there is limited research on how regulatory interventions affect auditor’s incentive to supply higher audit quality. This paper also contributes to the scant existing evidence on the effect of disciplinary actions against audit firms in emerging economies.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-18
      DOI: 10.1108/MEDAR-07-2021-1372
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Measuring the impact of corporate governance on non-financial reporting in
           the top HEIs worldwide

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      Authors: Mahlaximi Adhikari Parajuli , Mehul Chhatbar , Abeer Hassan
      Abstract: This study aims to measure the relationship between corporate governance and non-financial reporting (NFR) in higher education institutions (HEIs). Board effectiveness, student engagement, audit quality, Vice-Chancellor (VC) pay and VC gender are targeted for analysis. This study is based on content analysis. The authors used the EU NFR Directive (2014/95/EU) to measure NFR. This includes environmental, corporate social responsibility, human rights, corporate board effectiveness and corruption and bribery. Cross-sectional data was collected from 89 HEIs worldwide across 15 different countries over three years. Content analysis, the weighted scoring method and panel data analysis are used to obtain the results. Through a neo-institutional theoretical lens, this study provides a broader understanding of NFR content disclosure practices within HEIs. The findings reveal that the audit quality, VC pay and VC gender are significantly and positively associated with NFR content disclosure. However, board effectiveness has a significant negative impact on NFR content disclosure. More interestingly, the findings reveal that student engagement has an insignificant association with NFR content disclosure and there significant difference on the level of NFR content disclosure across universities situated in the different geographical region such as the USA, Australia, the UK and EU, Asia and Canada. The findings have important implications for regulators and policymakers. The evidence appears to be robust when controlling for possible endogeneities. The study contributes to the literature on corporate non-financial disclosure as it provides new insights of corporate governance mechanisms and NFR disclosure within HEIs.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-12
      DOI: 10.1108/MEDAR-10-2021-1467
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • How to assess the effectiveness of accounting education interventions:
           evidence from the assessment of a bridging course before introductory
           accounting

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      Authors: Corlia Joynt
      Abstract: This study aims to provide a thick description of a four-day bridging course in introductory accounting presented before the start of a student’s first year. The course aims to address the lack of prior accounting knowledge. The study also evaluates the effectiveness of the course using econometric techniques. Treatment effects are considered when interpreting the results. This voluntary intervention used a quasi-experimental research design and quantitative techniques, including the application of propensity score matching (PSM), to isolate the treatment effect on the treated and untreated groups. A positive and significant association is reported between attending the bridging course and performance in the first assessment. A bridging course in accounting offers higher educators an opportunity to ensure that students are academically better prepared when entering university. This course provides adequate prior knowledge from which a student will benefit during the first assessments, which may contribute to increased self-efficacy and retention. This intervention has social implications for students as they can interact, participate and easily transition from school to university. Social implications include learning communities that are formed at the onset of their studies. Bridging courses have been presented in other disciplines with positive results but not yet in accounting. Bridging courses in accounting are viable interventions to address gaps in prior knowledge and assist with the transition from school to university. This study expands literature by demonstrating the application and interpretation of PSM in quasi-experimental designs.
      Citation: Meditari Accountancy Research
      PubDate: 2022-05-03
      DOI: 10.1108/MEDAR-01-2022-1571
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of corporate governance on integrated reporting (IR) quality
           and sustainability performance: evidence from listed companies in South
           Africa

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      Authors: Kwadjo Appiagyei , Hadrian Geri Djajadikerta , Saiyidi Mat Roni
      Abstract: This study aims to examine the relationship and effect of integrated reporting (IR) quality on sustainability performance and explore the relationships and effects of corporate governance mechanisms on IR quality and sustainability performance. Partial least squares structural equation modelling (PLS-SEM) was used in a longitudinal study by following the steps in Roemer’s Evolutionary Model on a sample of listed companies on the Johannesburg Stock Exchange (JSE) in South Africa for a period from 2011 to 2016. This study finds board effectiveness and external audit quality to be important determinants of IR quality. It also observes a strong effect of the IR quality on sustainability performance. This study contributes by using and analysing a longitudinal data set from JSE, currently the only capital market globally requiring the mandatory IR application since 2010.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-28
      DOI: 10.1108/MEDAR-07-2020-0946
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Determinants of merger and acquisition in the banking sector: an empirical
           study

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      Authors: Musa Darayseh , Nizar Mohammad Alsharari
      Abstract: This study aims to determine the factors affecting the merger and acquisition (M&A) process in the United Arab Emirates (UAE) banking sector. It distinguishes between internal and external factors that may motivate M&A activities in the banking sector. This study adopts quantitative research and a survey strategy for data collection. A model was developed using a survey e-mailed to 500 bankers to gather data on the factors affecting the banking sector’s M&A. This study’s findings provide strong empirical evidence for factors extracted by the factor analysis (Income, Growth, Costs, Survival, Diversifications, Security and Risk and Legal), which are important in determining the consolidation process leading to successful M&A in the banking industry. This study also contributes to the business combinations and consolidation literature by explaining the important factors in measuring the bank’s performance during the M&A process. Future studies could be directed in many directions. First, the authors extend the study to other GCC countries and examine whether the determinants of banks’ M&A are similar across markets. Second, the authors examine additional nonfinancial bank-specific characteristics, such as management incentives and corporate governance or additional market characteristics. Third, the authors examine the motives for acquisitions of foreign banks by UAE banks and vice versa. There may be much to learn about how acquisition motives are likely to differ. The findings can help bank managers know if their banks have developed the same profile or factors similar to typical target banks. The theoretical understanding of the importance of this study in creating an environment of trust that governs the behavior of bankers for both banks will reduce the agency issue. Regarding general management, this study indicates that opportunistic behaviors could interest banks, bankers’ associations, central banks, governments, other financial authorities and policymakers. Therefore, this study paves the way for further investigation of mergers, agency theory and ethics issues. These banks’ owners, managers and regulators were also advised to consider these factors in formulating their policies and processes, given their influence on performance and their ability to manage the relationship between banks and improve the efficiency of the UAE banking sector. This study provides new perspectives concerning motives leading financial institutions to M&A owing to banks’ decisions to improve their financial positions, coupled with the need to obey pressures of macro factors such as economic, legal and political systems, government and technology.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-28
      DOI: 10.1108/MEDAR-09-2021-1449
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Financially material sustainability reporting and firm performance in New
           Zealand

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      Authors: Mariela Carvajal , Muhammad Nadeem
      Abstract: This paper aims to examine the relationship between sustainability reporting and firm performance in New Zealand, encompassing the materiality concept of sustainability reporting based on the newly available sustainability reporting standards of the Sustainability Accounting Standards Board (SASB). This set of disclosure items published in 2018 is likely to impact on investors’ decision-making and firm performance, as stipulated by the SASB. Using a sample of 84 New Zealand companies during the period 2017–2019 and an ordinary least squares statistical approach, this research examines whether firms disclosing sustainability reporting and financially material sustainability information have better performance than the ones non-disclosing. Consistent with the legitimacy and stakeholder theories, a positive relationship between sustainability reporting and performance is observed. This positive association is stronger when the sustainability disclosure is financially material information as defined by the SASB. The outcome of this study provides evidence of the financial incentives for firms to initiate sustainability reporting, especially including financially material sustainability information as guided by the SASB. It also supports the rationale of the SASB for developing new standards that can be globally applicable, influencing investors’ decisions and firm’s financial performance. The results also have implications for the management of New Zealand firms in considering the disclosure of material sustainability information which is linked to firm performance.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-27
      DOI: 10.1108/MEDAR-06-2021-1346
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The effect of innovation on environmental, social and governance (ESG)
           practices

         This is an Open Access Article Open Access Article

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      Authors: Grazia Dicuonzo , Francesca Donofrio , Simona Ranaldo , Vittorio Dell'Atti
      Abstract: This paper aims to investigate if and to what extent environmental, social and governance (ESG) practices are influenced by innovation, measured by investment in research and development (R&D) and the number of patents developed by companies. To test this hypothesis, the authors estimated a regression model for the panel data considering a time horizon of eight years. The analysis was conducted on a sample of listed firms operating in the industrial sector in France, Germany, Italy, Spain, the UK and the USA. The empirical analysis shows that there is a positive and significant relationship between ESG practices and innovation. Companies investing more in R&D and patents have better ESG performance. This study contributes to the existing literature by improving the understanding of the importance of innovation in improving ESG practices for firms in the industrial sector. Furthermore, it provides empirical evidence of the ability of innovation to be a valuable tool for sustainable industry development through R&D investment and patent development.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-27
      DOI: 10.1108/MEDAR-12-2020-1120
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Busy boards and accounting conservatism – an Australian perspective

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      Authors: Quyen Le , Alireza Vafaei , Kamran Ahmed , Shawgat Kutubi
      Abstract: This paper aims to examine the association between busy directors on corporate boards and accounting conservatism. The authors use a sample of 500 firms listed on the Australian Security Exchange from 2004 to 2019. The busyness of non-executive directors is proxied by three indicators. For accounting conservatism, the authors use both conditional and unconditional accounting conservatism via asymmetric timeliness of earnings, accrual-based loss recognition, cumulative total accruals and book-to-market ratio. The authors cluster the standard errors at the firm level to compensate for potential residuals’ dependency and heteroscedasticity, in addition to analysing the main models using year and industry fixed effects (Petersen, 2009). Separately, the authors look at the impact of female busy directors on firms’ adoption of conservative accounting methods. Both propensity score matching analyses and Heckman (1979) two-stage approach systematically address endogeneity issues. The presence of busy directors on boards leads to greater unconditional conservatism and less conditional conservatism. The relationships between busy female directors with both conditional and unconditional conservatism remain consistent with the main findings. This paper provides useful insights for shareholders, regulators and accounting standards setters to better evaluate busy directors’ effectiveness in monitoring firms’ financial reporting quality. Directors and the companies themselves can refer to the authors’ findings to decide the best structure for their boards and committees, considering their specific monitoring requirements. Given that no mandatory restriction has been legislated, improved policies or new ones will ensure that busy directors can effectively fulfil their duties. This research contributes to the broader research theme by examining the influence of directors’ quality on financial reporting conservatism. It also contributes to the ongoing debate in the corporate finance literature regarding the experience and busyness hypotheses of directors with multiple directorships. Additionally, this research adds value to gender diversity research by finding evidence that female busy directors follow the same pattern of reporting conservatism as male busy directors.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-18
      DOI: 10.1108/MEDAR-10-2021-1466
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Mobilising management control systems to support sustainability strategy
           in SMEs: the case of a waste disposal firm

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      Authors: Caterina Cavicchi , Chiara Oppi , Emidia Vagnoni
      Abstract: The extent to which sustainability is integrated into conventional accounting practices, in the light of a more integrated thinking perspective, requires further exploration. This paper aims to investigate how management control systems (MCSs) and sustainability-specific control systems (SCSs) are mobilised and how they interact to support the environmental sustainability strategy of a small- and medium-sized entity (SME). Through a case study in a waste disposal firm, this paper examines the influence of cognitive, organisational and technical factors on the interaction and integration of MCSs and SCSs to bolster an environmental sustainability strategy. The MCSs that are mobilised vary according to the type of strategy that is pursued. Even though the technical integration of MCSs with SCSs was not achieved, interaction between them supported strategic decision-making and the pursuit of environmental performance in the light of a more integrated thinking perspective. The role of multidisciplinary teams formed by accountants and environmental scientists to support sustainability management control at the SME also enabled interaction and provided steps for integrated thinking. Although based on single case study, this research offers practitioners useful knowledge about the potential levers and obstacles relating to the mobilisation of MCSs when a sustainability strategy is conceived and its impact on the development of integrated thinking. The paper provides insight into how SMEs can mobilise their MCSs to support an environmental sustainability strategy, shedding light on the factors that enhance interaction among MCSs and SCSs.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-15
      DOI: 10.1108/MEDAR-07-2021-1382
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Professional financial statement users’ perceived value of carbon
           accounting disclosures and decision context

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      Authors: Paul Coram , Brad Potter , Naomi Soderstrom
      Abstract: This study aims to investigate how professional financial statement users use carbon accounting information in their decisions and whether this use is sensitive to changing the decision context from an investment to a donation. Using a sample of 173 US professional financial statement users, the authors conduct an experiment that manipulates an investment or donation choice to evaluate how differing levels of carbon sequestration affect decision-making across contexts. Carbon sequestration information affects users’ donation decisions but does not affect investment decisions. Variation in the reliability of the information and whether the information is linked to strategy do not affect users’ decision-making. This study is performed by an experiment and informs our understanding of the relevance to users of carbon sequestration disclosure. Results indicate that carbon sequestration disclosure has value for donation but not investment decisions. The authors interpret this as evidence of some value of this type of disclosure in professional financial statement users’ decision-making but not for a financially focused evaluation. This paper provides unique insights into the effect of reporting carbon sequestration on decision-making. There has been significant research on the broader topic of corporate sustainability, and capital markets research indicates that the market values increased sustainability disclosure. This study extends the research by examining a specific component of carbon disclosure that is not currently widely reported and by the use of information for different types of evaluations. The results find evidence that the value of this type of carbon disclosure does not stem from a purely financial perspective but instead, from other nonpecuniary factors.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-07
      DOI: 10.1108/MEDAR-02-2021-1193
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporates’ sustainability disclosures impact on cost of capital and
           idiosyncratic risk

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      Authors: Amir Gholami , John Sands , Syed Shams
      Abstract: This study aims to investigate not only the association between corporate environmental, social and governance (ESG) performance and the cost of capital (COC) but also its impact on the company’s idiosyncratic risk. Further, it highlights that companies could manage their risk through sustainability initiatives to achieve a cheaper cost of financing. Using an extensive Australian sample for the 2007–2017 period from the Bloomberg database, this study conducts a panel (data) regression analysis to examine the impact of the corporate ESG performance disclosure score on the COC and idiosyncratic risk. The robustness of the findings is tested and confirmed in several ways, including a sensitivity test. Furthermore, the instrumental variable approach is used to address potential endogeneity issues. A favourable association was found between a higher corporate ESG performance disclosure score and cheaper resources financing. The evidence also supports the mitigating impact of corporate ESG performance disclosure score on the company’s idiosyncratic risk as a strong complement for access to a cheaper source of funds. The findings strongly support both hypotheses of this study. This study extends the current body of knowledge addressing these associations. Further studies should expand the investigation to non-listed or small and medium-sized companies. Additionally, future studies could contribute to the literature by including other moderating variables, such as a country’s cultural environment and diverse economic situations. An extensive literature review suggests that this study, to the best of the authors’ knowledge, is the first that simultaneously evaluates the impact of corporate ESG performance disclosure on a company’s COC and idiosyncratic risk.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-06
      DOI: 10.1108/MEDAR-06-2020-0926
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Counting nature: some implications of quantifying environmental issues in
           corporate reports

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      Authors: Leanne J. Morrison , Trevor Wilmshurst , Sonia Shimeld
      Abstract: This paper aims to examine the role numbers play in corporate environmental reporting. To deeply examine the ontological meanings of enumeration in the context of nature, the histories of number and accounting are explored. Some key tropes emerge from these histories, namely, distancing and control. To explore some of the implications of quantifying nature, three years of environmental reports of ten companies from the ASX200 are analysed through a Barthsian lens. Examples of enumerating nature are highlighted and explored in terms of what this means for the corporate relationship with nature. This study has focussed on some specific aspects of nature that are commonly counted in corporate environmental reporting: carbon, energy, water, biodiversity and waste. This study explores how monetisation and obfuscation are used and how this informs the myth that nature is controllable. This study finds that quantifying nature constructs a metaphorical distance between the company and the natural world which erodes the sense of connection associated with an authentic care for nature. These findings are critical in light of the detrimental impact of corporate activity on the natural world. The reports themselves, while promoted as a tool to help mitigate damage to the natural environment, are implicitly perpetuating its harm. Given the extent to which companies are responsible for environmental damage and the potential capacity embedded in corporate communications, better understanding the implications of quantifying nature could powerfully instigate a new but necessary approach to nature. The insights of this paper are relevant to those aiming to improve the underpinning approaches used in corporate environmental reporting. This paper provides new understandings of the ways quantitative expression of environmental values constructs the myth that nature is controllable.
      Citation: Meditari Accountancy Research
      PubDate: 2022-04-01
      DOI: 10.1108/MEDAR-09-2020-1023
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Intangible assets management and digital transformation: evidence from
           intellectual property rights-intensive industries

         This is an Open Access Article Open Access Article

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      Authors: Raffaele Trequattrini , Alessandra Lardo , Benedetta Cuozzo , Simone Manfredi
      Abstract: This study aims to investigate the impact of digital technologies for intangible assets management. The authors analyse how technological innovations and regulations of intellectual property affect business models of companies or intellectual property rights (IPR) intensive industries to determine the impact of digital transformation on intangible assets management, highlighting emerging issues and future effects of the digital technology revolution. The authors use a case study method to answer our research questions. The authors use Soundreef SpA as our case study, a collecting company that develops technology for monitoring, collecting and maximising the earnings of songwriters and music publishers. The authors also elaborate and adopt the framework of the enhanced intellectual capital as the theoretical lens for presenting and analysing our case study, determining how the digital transformation caused business model innovation and more transparent and timely performance measurement in copyright-based companies. The analysis of Soundreef SpA’s business model allows us to demonstrate how using new technologies drives the performance measurement of copyright holders and improve the collecting societies’ performance, introducing a new key performance indicator. This turning point is made possible by digital transformation and regulatory change. In the IPR industry, copyright holders’ performance has never been calculated, so the distribution of copyright revenues was based on the criteria approved by governance bodies/management. In the study, the authors demonstrate that digital transformation is able to enhance the intellectual capital of IPR-intensive companies introducing new ways to manage intangible assets and to measure performance.
      Citation: Meditari Accountancy Research
      PubDate: 2022-03-18
      DOI: 10.1108/MEDAR-03-2021-1216
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Revitalising the enterprise university post-COVID 19: a focus on business
           schools

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      Authors: Brendan O'Connell , Meredith Tharapos , Paul De Lange , Nicola Beatson
      Abstract: The purpose of this study is to provide a polemic on the evolution of universities and business schools over the past two decades. During this period, universities have increasingly adopted a self-interested stance using business-like practices and behaviours to justify their transformation. The authors provide recommendations aimed at enhancing universities’ contributions and relevance to society, increasing their sustainability broadly defined and better positioning them to help solve wicked problems in a post-COVID-19 world. This polemic analyses prior literature relating to the evolution of universities and uses this to generate a framework for ways forward for their improvement. The authors argue that the evolution of universities into entities with missions and operations designed to mimic business and commercial imperatives has yielded undesirable outcomes including the muddling of the core mission of universities, alienation of key stakeholders and an excessive focus on income growth. Business schools face a tension between forging their own, unique identities and simultaneously striving to meet university university objectives. We term this “the Business School identity paradox”. The authors contend that the way forward requires senior management to re-discover the essence of what it means to be a university, re-establish collegial decision-making within universities that includes built-in feedback loops and a fundamental emphasis on developing graduates with an enlightened perspective that goes beyond technical skills. This paper is novel in that it analyses the evolution of the “Enterprise University” some 20 years after this term was first coined and in a radically changed environment following the COVID-19 pandemic. This analysis is also forward-looking as the authors re-imagine universities and business schools by identifying opportunities for renewal and improvement in their focus and societal impact. The authors also develop a schema that identifies major influences on universities and business schools, the impact of COVID-19 and strategies for them post-COVID-19.
      Citation: Meditari Accountancy Research
      PubDate: 2022-03-16
      DOI: 10.1108/MEDAR-06-2021-1332
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Audit quality and digitalization: some insights from theItalian context

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      Authors: Ennio Lugli , Federico Bertacchini
      Abstract: The differences between Big audit firms (BigN) and non BigN (nBigN) have been discussed at the international level from various points of view, focusing in particular on issues regarding the different quality of the services offered. This study aims to analyze the impact of digitalization on audit firms in the Italian context, seeking to understand how this phenomenon has influenced the quality differences already studied in the scientific literature. The research adopts a qualitative approach, using semi-structured interviews. A total of 16 professionals working in the legal audit world were interviewed. The firms involved were PricewaterhouseCoopers, KPMG, Ernst and Young and Deloitte in the BigN category and BDO Italia Spa, MooreAxis Srl and Analisi Spa in the non Big class. The data collected via the interviews underwent thematic analysis. This analysis allowed the identification of three topics, on which the presentation of the results concentrated. The findings of this research reveal that the digitalization of companies has widened the quality gap between Big and non BigN. BigN have been better able to exploit the benefits of the new digital technologies due to their greater investment capacity. At the same time, stakeholders’ expectations of the audit process in terms of quality have increased sharply, also in relation to nBigN. This study’s main contribution is its analysis of the impact of digitalization on the audit quality of BigN and nBigN. This paper contributes to the existing literature by studying the consequences of digitalization on nBigN, a topic previously unexplored in the scientific literature (Manita et al., 2020), and the impact of new technologies in the context of audit firms in general.
      Citation: Meditari Accountancy Research
      PubDate: 2022-03-14
      DOI: 10.1108/MEDAR-08-2021-1399
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Accounting, valuing and investing in health care: dealing with outdated
           accounting models

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      Authors: Gillian Vesty , Olga Kokshagina , Miia Jansson , France Cheong , Kerryn Butler-Henderson
      Abstract: Despite major progress made in improving the health and well-being of millions of people, more efforts are needed for investment in 21st century health care. However, public hospital waiting lists continue to grow. At the same time, there has been increased investment in e-health and digital interventions to enhance population health and reduce hospital admissions. The purpose of this study is to highlight the accounting challenges associated with measuring, investing and accounting for value in this setting. The authors argue that this requires more nuanced performance metrics that effect a shift from a technical practice to one that embraces social and moral values. This research is based on field interviews held with clinicians, accountants and administrators in public hospitals throughout Australia and Europe. The field research and multidisciplinary narratives offer insights and issues relating to value and valuing and managing digital health investment decisions for the post-COVID-19 “value-based health-care” future of accounting in the hospital setting. The authors find that the complex activity-based hospital funding models operate as a black box, with limited clinician understanding and hybridised accounting expertise for informed social, moral and ethical decision-making. While there is malleability of the health economics-derived activity-based hospital funding models, value contestation and conflict are evident in the operationalisation of these models in practice. Activity-based funding (ABF) mechanisms reward patient throughput volumes in hospitals but at the same time stymie investment in digital health. Although classified as strategic investments, there is a limit to strategic planning. Accounting in public hospitals has become increasingly visible and contested during the pandemic-driven health-care crisis. Further research is required to examine the hybridising accounting expertise as it is increasingly implicated in the incremental changes to ABF in the emergence of value-based health care and associated digital health investment strategies. Despite operationalising these health economic models in practice, accountants are currently being blamed for dysfunctional health-care decisions. Further education for practicing accountants is required to effect operational change. This includes education on the significant moral and ethical dilemmas that result from accounting for patient mix choices in public hospital service provision. This research involved a multidisciplinary team from accounting, digital health, information systems, value-based health care and clinical expertise. Unique insights on the move to digital health care are provided. This study contributes to policy development and the limited value-based health-care literature in accounting.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-24
      DOI: 10.1108/MEDAR-06-2021-1334
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Insights on management commentary in financial reports: the views of
           users, preparers and auditors

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      Authors: Nives Botica Redmayne , Fawzi Laswad , Dimu Ehalaiye , Warwick Stent
      Abstract: New Zealand (NZ) has no reporting standard or guidance for management commentary (MC) that accompanies financial reports. This is unusual, considering MC is provided by many entities and valued by users. Further, the guidance on MC provided by the International Accounting Standards Board (IASB) in their Management Commentary Practice Statement 1 (MCPS1), which was issued in 2010, is currently under review. Thus, the purpose of this paper is to examine the views of NZ’s financial reporting stakeholders, particularly users, preparers and auditors of financial reports for insights regarding the usefulness of MC. To gain insights into the views of NZ’s financial reporting stakeholders on MC, this paper surveyed users, preparers and auditors of financial statements. This paper includes an analysis of their views on the objectives, content and principles that should underlie MC in financial reporting, based on the IASB’s MCPS1 with consideration of recent work by the IASB on the revision of MCPS1. In addition, the analysis provides insights as to whether the reporting of MC should be made mandatory, and whether assuring MC would increase its usefulness. This study found that auditors generally view MC as less useful and more in need of assurance than do preparers and users. Respondents’ ratings indicate that the most important objective for MC is “to enable the assessment of the quality of management’s stewardship”. “Assessing the entity’s future prospects”, and “assessing future cash flows” are also highly rated objectives. The most important principle in preparing MC is identified as “focus on the most important and relevant information”, while the most important content element identified is “the entity's financial performance and position, and cash flows”. This paper highlights the views of various stakeholders regarding MC reporting, particularly preparers and auditors whose views have not been noted previously in the literature. Also, this study should be of interest to both international and national financial reporting standard setters and regulators. It is particularly timely in view of the current IASB work towards revision and updating of MCPS1, as it provides current insights into what users, preparers and auditors perceive as the most important considerations for MC. This study also has implications for the XRB in NZ, where there is no prior research on stakeholders’ views on MC.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-21
      DOI: 10.1108/MEDAR-02-2021-1198
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Readdressing accountability for occupational health and safety in a
           pandemic era

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      Authors: Lee Parker , Venkateshwaran Narayanan
      Abstract: In the Covid-19 pandemic era, corporate responsibility and accountability for maintaining employee health and safety, particularly from this pernicious virus, have become a matter of major social and economic importance. From an accountability through action perspective, this study aims to set out to evaluate the potential occupational health and safety accountability consequences of the Covid-19 pandemic. This paper is based upon purposive sampling of several sets of publicly available data including published research literature addressing corporate social responsibility and accountability, and the literature more specifically addressing occupational health and safety (OHS) and its reporting. Also included are recent Web-based reports and articles concerning Covid-19-related OHS government and industry sponsored guidelines for employers and their workplaces across the UK and Australia. The findings of this research highlight that firstly, the extant literature on OHS has been predominantly functionalist in its approach and that accountability through action provides an opportunity to make employers more visibly accountable for their response to Covid-19. Secondly, the paper highlights that despite recent progress on OHS issues significant concerns remained in the pre-Covid-19 era and that emerging regulations and legal obligations on employees have the potential to make OHS issues a prominent part of corporate social responsibility research. Disease and mental health statistics reveal the potential significance of their expansion in the Covid-19 environment, and regulatory and legal liability concerns emerge as potential drivers of renewed corporate as well as researcher attention to OHS issues. Implications for the emergence of a broader range of accountability forms and visibilities are also canvassed.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-21
      DOI: 10.1108/MEDAR-06-2021-1350
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Use of in-house internal audit functions in New Zealand

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      Authors: Nishaal Prasad , David Hay , Li Chen
      Abstract: The purpose of this study is to examine which factors explain the use of an in-house internal audit function (IAF) in a voluntary setting. Based on the foundations of agency and resource-based theory, this study examines a unique data set from the New Zealand setting, which combines information obtained from The Institute of Internal Auditors of New Zealand with empirical firm data collected from publicly available sources. Multivariate analysis is performed to test the prediction that in-house IAF use is associated with factors such as strong corporate governance, firm size, risk, complexity and firm ownership structure. There is strong evidence that larger organisations are more likely to use an in-house IAF. The authors also find that listed firms and organisations that use a Big Four auditor are less likely to use in-house-based IAF. The authors learn that the IAF investment decision is dominantly influenced by a firm’s ability to fund an in-house IAF as compared to the IAF being used as a resource to improve firm performance to achieve sustained competitive advantage. This implies that IAFs need to ensure cost efficiency and eliminate unnecessary overheads and demonstrate and make visible the benefits the function offers to the host organisation. The unique New Zealand setting, where the establishment and use of an IAF are voluntary, provides an environment to study factors that promote demand for internal audit services. Research implications are applicable to most parts of the world, including the UK, EU nations and the Asia-Pacific region, where IAF use is voluntary.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-18
      DOI: 10.1108/MEDAR-03-2020-0803
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The susceptibility of management accountants to framing bias

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      Authors: Zack Enslin , John Hall , Elda du Toit
      Abstract: The emerging business partner role of management accountants (MAs) results in an increased requirement of MAs to make business decisions. Frame dependence cognitive biases regularly influence decisions made in conditions of uncertainty, as is the case in business decision-making. Consequently, this study aims to examine susceptibility of MAs to frame dependence bias. A survey was conducted among an international sample of practising MAs. The proportion of MAs influenced by framing bias was analysed and compared to findings in other populations. Logistic regression was then used to determine whether MAs who exhibit a higher preference for evidence-based (as opposed to intuitive) decision-making are more susceptible to framing bias. Despite a comparatively high preference for evidence-based decision-making, the prevalence of framing bias among MAs is comparable to that of other populations. A higher preference for evidence-based decision-making was found to only be associated with higher susceptibility to endowment effect bias. To the best of the authors’ knowledge, this is the first study to comprehensively examine framing bias for MAs as a group of decision-makers. Additionally, this study’s sample consists of practising MAs, and not only students.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-14
      DOI: 10.1108/MEDAR-02-2021-1185
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Textual characteristics of corporate sustainability disclosure and
           corporate sustainability performance: evidence from Australia

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      Authors: Zhongtian Li , Jing Jia , Larelle J. Chapple
      Abstract: This study aims to analyze whether various textual characteristics in corporate sustainability disclosure associate with corporate sustainability performance in Australia, pertaining to tones of language and readability. The voluntary disclosure theory and legitimacy theory are used to formulate the study hypothesis. Using data from Australian listed firms (2002–2016), four textual characteristics are examined: tone of optimism, tone of certainty, tone of clarity and readability. Corporate sustainability performance is measured by Thomson Reuters Asset4 ratings. Different strategies are adopted to mitigate endogeneity concerns. The authors found that there is a positive relationship between the textual characteristics of sustainability disclosure and sustainability performance. Specifically, firms with better performance communicate in an optimistic, certain, clear and more readable manner. The results suggest that Australia’s voluntary reporting status does not induce a combination of poor performance and positive disclosure. This paper should be of interest to investors and other stakeholders and also informs regulatory policy on sustainability disclosure in Australia. The authors contribute to the sustainability disclosure literature using computer-based textual analysis to explore whether firms reveal their sustainability performance by “how things are said” (i.e. textual characteristics) in sustainability disclosure. As far as the authors could ascertain, they are the first to investigate textual characteristics of sustainability disclosure in Australia.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-14
      DOI: 10.1108/MEDAR-03-2021-1250
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Spatial variability and temporal patterns of internal price of carbon: a
           transitional management perspective

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      Authors: Huifa Chen , Yuan George Shan , Qingliang Tang , Junru Zhang
      Abstract: This study aims to investigate why companies use the internal price of carbon (IPC) for carbon management. The authors adopt sustainable transition management theory to design the research and explain the findings of empirical models. The sample includes companies that participated in the Carbon Disclosure Project (CDP) questionnaire survey, derived from 37 countries and regions for the period 2015–2018. The results first reveal that transition management facilitates an upward adoption trend annually during the study period. Second, the authors find that the proxies for transition management are all correlated with the adoption of the IPC in the predicted direction. Third, the authors identify spatial patterns and driving factors for adoption of the IPC. This study provides additional insight beyond the limited prior literature in this area. In particular, the findings regarding the influence of physical environment on climate-related decisions have not been documented in extant literature. IPC is expected to interact with and complement external price of carbon for climate change governance. Thus, the exploring results of the paper fill an important gap and pave the way for future study to examine emerging issues in the burgeoning field of carbon accounting for climate change.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-14
      DOI: 10.1108/MEDAR-06-2021-1357
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Analyst forecast quality and corporate social responsibility: the
           mediation effect of corporate governance

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      Authors: Yuan George Shan , Joey Wenling Yang , Junru Zhang , Millicent Chang
      Abstract: This study aims to examine the mediating role played by corporate governance (CG) in the relationship between corporate social responsibility (CSR) and analyst forecast quality. The authors raise three specific questions: Does CG play a mediating role in the relationship between CSR and analyst forecast quality' If so, is such mediation effect of CG reduced for firms with weak governance' Do firms with superior CSR performance experience higher analyst forecast quality through the mediation effect of CG' The present results suggest that CG serves as a partial mediator that facilitates CSR’s positive influence on analyst forecast quality. However, further analyses show that in firms with a low governance score, CG does not have a mediation effect. Conversely, the authors find that firms with superior CSR performance have higher forecast quality through the mediation effect of CG. The authors also find that the mediation effect of CG is more pronounced for the environmental component than for the social component of CSR. To the best of the authors’ knowledge, this study is the first to investigate the role of CG as a mediator between CSR and analyst forecast quality and to reveal that the strength of this effect varies depending on firms’ CG level and CSR commitment.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-08
      DOI: 10.1108/MEDAR-02-2021-1200
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporate governance and firm risk-taking: the moderating role of board
           gender diversity

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      Authors: Hussain Muhammad , Stefania Migliori , Sana Mohsni
      Abstract: This study aims to explore the moderating role of board gender diversity (BGD) in the relationship between corporate governance mechanisms (i.e. board size, board independence, chief executive officer (CEO) gender, CEO duality and ownership concentration) and firm risk-taking. Using a sample of 192 non-financial publicly traded Italian firms over 2014–2018, this study tests the proposed research hypotheses and assess the moderating effect of BGD. Drawing on agency theory and resource dependence theory, this study finds a significant relationship between corporate governance mechanisms and firm risk-taking, which is significantly moderated by BGD. BGD accentuates the negative effect of board size, independent directors, CEO gender and CEO duality on firm systematic risk and attenuates the positive impact of CEO duality on firm unsystematic risk. The results, which are consistent with the risk-reduction effect of BGD, are robust to the use of alternative measures of firm risk-taking. Women’s presence on corporate boards plays a critical role in the board’s involvement in risk-taking. Hence, investors and stakeholders should consider women on corporate boards as a crucial risk-mitigating factor. This paper contributes to our knowledge on risk management by demonstrating the moderating role of BGD while relating corporate governance mechanisms and firm risk-taking.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-08
      DOI: 10.1108/MEDAR-07-2020-0949
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Responding to crises: rewilding accounting education for the Anthropocene

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      Authors: Lisa Powell , Nicholas McGuigan
      Abstract: Responding to COVID-19, this conceptual paper uses rewilding to interrupt anthropocentric and human/nature dualist properties of accounting education. Through rewilding accounting education, informed by posthumanist and ecofeminist thought, this paper aims to develop an accounting pedagogy that shapes greater ecocentric narratives. Accounting educators can contribute to addressing crises by evolving new pedagogies that radically transform the education of future accounting professionals. The authors take a critical stance in analysing the human-centred accounting education model. They explore how this model can be reimagined through rewilding accounting education, resulting in learning interventions that foster an understanding of intrinsic value, complexity of systems and collective disposition with all species and the natural world. Rewilding learning interventions embed an ecocentric approach in accounting curricula design to extend beyond a human focus. Rewilding learning interventions practically explored with application to accounting include learning with and from nature, Indigenous knowledge perspectives, play as a common language and empathy as a dialogical bridge. The authors present an accounting pedagogy that fosters among accounting students and educators a relational orientation and ecological consciousness that encompasses compassion and openness to others, including non-human species and nature. This will ensure that accounting graduates are better prepared for addressing future crises that stem from our disconnect with nature. This paper adds to limited research investigating accounting and the Anthropocene. Investigations into the Anthropocene’s human-centred discourse in accounting education are vital to respond adequately to crises. This paper extends social and environmental accounting education literature to encompass less anthropocentric discourse and greater relational learning.
      Citation: Meditari Accountancy Research
      PubDate: 2022-01-20
      DOI: 10.1108/MEDAR-06-2021-1333
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Perception of the Malaysian Federal Government accountants of the
           usefulness of financial information under an accrual accounting system: a
           preliminary assessment

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      Authors: Suhaiza Ismail
      Abstract: The objective of this study is to examine the perceived usefulness of accrual accounting-based financial information for accountability and for supporting decision-making in public sector organisations. A questionnaire survey adapted from Kober et al. (2010) was used to survey Malaysian Federal Government accountants to ascertain their views on the usefulness of accrual accounting information across 12 situations regarding accountability and decision-making. Mean scores and mean score ranking were computed on a total of 165 usable responses received. The independent t-test was conducted to investigate the differences in the perception between “accountants with” and the “accountants without” prior work experience in the private sector. The study provides evidence that Malaysian Federal Government accountants consider accrual accounting information as very useful for decision-making. The three most important decision-usefulness indicators in the survey are “To assist in managing the department’s assets and liabilities”, “To assess cash flow needs of a department” and “For departmental resource allocation decisions”. The least useful accrual accounting information as perceived by the Malaysian public sector accountants is “To assist in discharging the department’s accountability obligations”. The study provides valuable insights into the extent to which accrual accounting information is considered useful for accountability and decision-making, lending support to the Malaysian Government’s reform agenda of moving towards using accrual accounting in public sector organisations at the federal level.
      Citation: Meditari Accountancy Research
      PubDate: 2022-01-17
      DOI: 10.1108/MEDAR-04-2020-0845
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Management obfuscation through mandatory financial risk disclosure:
           evidence from European-listed banks

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      Authors: Luca Ferri , Alessandra Allini , Marco Maffei , Rosanna Spanò
      Abstract: This study aims to investigate the readability of financial risk disclosure divulged by listed banks of the first five European countries according to gross domestic product. This study adopts the management obfuscation hypotheses and tests data gathered for a sample of 790 observations from listed banks in Europe covering the 2007–2018 period. This study uses a readability index (Gunning’s fog index) as the dependent variable for measuring the readability of banks’ mandatory financial risk disclosures. Moreover, it relies on a completeness index, discretionary accruals and several control variables for identifying the determinants of risk disclosure readability using ordinary least square regression for testing the hypotheses. The findings show the existence of a positive relation\nship between readability and completeness of risk disclosure. In contrast, a negative relationship exists between readability and banks’ discretionary accruals. This study expands the stream of accounting literature analyzing the lexical characteristics of narrative risk disclosure, and, by focusing on the financial risk disclosure of banks, it extends the readability-related debate, which has primarily concentrated on other types of disclosure to date. This study is relevant to regulators and policymakers for fostering reflections as actions for improving the financial risk disclosures readability. This study is also of potential interest for investors to better delve into the questions surrounding risk disclosure.
      Citation: Meditari Accountancy Research
      PubDate: 2022-01-17
      DOI: 10.1108/MEDAR-06-2021-1348
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Influence of Industry 4.0 technologies on corporate operation and
           performance management from human aspects

         This is an Open Access Article Open Access Article

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      Authors: Nóra Obermayer , Tibor Csizmadia , Dávid Máté Hargitai
      Abstract: The purpose of this paper is to discover how Hungarian manufacturing companies interpret technology and human resources as driving forces and barriers in terms of Industry 4.0 implementation. The authors conducted 23 semi-structured interviews with corporate leaders and applied qualitative content analysis using Atlas.ti software. The authors formulated a new definition of Industry 4.0 which emphasises the role of human factors. The authors identified driving forces (efficiency with speed/information flow/precision) and barriers (technology compatibility, human fears and lack of digital skills) in terms of Industry 4.0 implementation and developed the DIGI-TEcH performance management dimensions. Comparison with other countries is limited. Given the exploratory and qualitative nature, further quantitative research would be needed to generalise results. Finally, only manufacturing companies are examined. It provides empirical evidence to practitioners to understand concerns about technology and human resource in terms of Industry 4.0 implementation. In addition, corporate performance management can be extended by the developed DIGI-TEcH dimensions. This paper reveals key evidence for the uptake of technology and human factors in terms of Industry 4.0 implementation and their impacts on corporate operation and performance. It also provides an insight into a specific country context, which can be a useful benchmark for other Central and Eastern European countries.
      Citation: Meditari Accountancy Research
      PubDate: 2022-01-11
      DOI: 10.1108/MEDAR-02-2021-1214
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Blockchain in accounting practice and research: systematic literature
           review

         This is an Open Access Article Open Access Article

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      Authors: Marco Bellucci , Damiano Cesa Bianchi , Giacomo Manetti
      Abstract: This study aims to review the academic literature on the utilization of blockchain in accounting practice and research to identify potential opportunities for further scientific investigation and to provide a framework for how accounting practices are impacted by blockchain. This study is based on a systematic literature review (SLR) of 346 research products available on Scopus, which were mapped with bibliometric analyses and critically discussed in relation to three main topics: the impact of blockchain on accounting and auditing, cryptoassets and finance, business models and supply chain management. Blockchain has many potential implications for accounting practice and research. In addition to providing the state-of-the-art of accounting research on blockchain and additional avenues for further studies, this study discusses why practitioners are interested in this technology: triple-entry bookkeeping, the inalterability of transactions, the automation of repetitive tasks that do not require discretionary choices, the representation of cryptocurrencies in financial statements, value-chain management, social and environmental auditing and reporting and business model innovation. The novel contribution of this study is integrated and threefold. First, this SLR provides a clear picture of the state of the accounting research on blockchain using bibliographic and narrative analyses. Second, it investigates how accounting and auditing practices are impacted by blockchain. Third, it contributes to the accounting literature with its discussion of the potential future research trends related to blockchain for accounting.
      Citation: Meditari Accountancy Research
      PubDate: 2022-03-28
      DOI: 10.1108/MEDAR-10-2021-1477
      Issue No: Vol. 30 , No. 7 (2022)
       
  • The impact of the EU nonfinancial information directive on environmental
           disclosure: evidence from Italian environmentally sensitive industries

         This is an Open Access Article Open Access Article

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      Authors: Marco Papa , Mario Carrassi , Anna Lucia Muserra , Monika Wieczorek-Kosmala
      Abstract: To determine whether to entrust the European Union (EU) to create a new nonfinancial reporting framework or endorse the extant reporting framework developed by the Global Reporting Initiative (GRI), this study aims to explore whether the mandatory implementation of the EU Directive positively impacted the GRI-based environmental disclosure. The authors compared the pre- and post-EU Directive environmental disclosure of 16 Italian environmentally sensitive companies. The authors used an extended coding scheme and developed a unique scoring system to compare the quantitative and qualitative changes in environmental disclosure. The analysis showed that the quantity of environmental disclosure increased after the mandatory EU Directive adoption. The most significant change was observed regarding the disclosure topics explicitly required by the Italian legislature. Additionally, disclosure of soft information continued to prevail over that of hard information in the post-Directive period. While the Directive boosted the level of adherence to GRI standards, Italian companies disclosed information that could be easily mimicked (soft) instead of objective measures that could be verified (hard). In light of this evidence, the endorsement of extant GRI standards could be a valuable option for enhancing the comparability and transparency of environmental disclosure. This study used an original extended coding system and proposed related environmental disclosure indexes that allow monitoring changes in environmental disclosure over time. To the authors’ best knowledge, this study is one of the few that justifies the significant impact of regulation (here the EU Directive) on the increase in environmental disclosure and that uses hard and soft information typology to examine the quality of environmental disclosure.
      Citation: Meditari Accountancy Research
      PubDate: 2022-03-23
      DOI: 10.1108/MEDAR-03-2021-1247
      Issue No: Vol. 30 , No. 7 (2022)
       
  • The social return on investment model: a systematic literature review
         This is an Open Access Article Open Access Article

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      Authors: Luigi Corvo , Lavinia Pastore , Marco Mastrodascio , Denita Cepiku
      Abstract: Social return on investment (SROI) has received increasing attention, both academically and professionally, since it was initially developed by the Roberts Enterprise Development Fund in the USA in the mid-1990s. Based on a systematic review of the literature that highlights the potential and limitations related to the academic and professional development of the SROI model, the purpose of this study is to systematize the academic debate and contribute to the future research agenda of blended value accounting. Relying on the preferred reporting items for systematic reviews and meta-analyses approach, this study endeavors to provide reliable academic insights into the factors driving the usage of the SROI model and its further development. A systematic literature review produced a final data set of 284 studies. The results reveal that despite the procedural accuracy characterizing the description of the model, bias-driven methodological implications, availability of resources and sector specificities can influence the type of approach taken by scholars and practitioners. To dispel the conceptual and practical haze, this study discusses the results found, especially regarding the potential solutions offered to overcome the SROI limitations presented, as well as offers suggestions for future research. This study aims to fill a gap in the literature and enhance a conceptual debate on the future of accounting when it concerns a blended value proposition.
      Citation: Meditari Accountancy Research
      PubDate: 2022-03-10
      DOI: 10.1108/MEDAR-05-2021-1307
      Issue No: Vol. 30 , No. 7 (2022)
       
  • Stakeholder interactions as sources for organisational learning: insights
           from the water sector

         This is an Open Access Article Open Access Article

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      Authors: Davide Giacomini , Diego Paredi , Alessandro Sancino
      Abstract: This paper aims to understand stakeholders' sentiments with respect to company policies in the water utilities (WU) sector and to explore if and how these sentiments could be a source for organisational learning. This study investigates the use of social media in WUs’ and stakeholders’ reactions as a source of data for organisational learning. This paper relies on a mixed-methods approach based on sentiment analysis of Facebook (FB) pages and semi-structured interviews with sustainability managers from a sample of Italian WUs. Findings show that WUs increasingly use FB mainly to promote and disclose environmental issues and as a source of information for organisational learning. A longitudinal analysis of environmental disclosure via FB reveals a growing trend of both companies’ posts and stakeholder interactions and significant differences among organisations in their ways of using information and knowledge obtained from social media. Theoretically, this paper builds an original link between disclosure via social media and organisational learning processes. Empirically, to the best of the authors’ knowledge, this is one of the first studies to identify the quantity and quality of environmental disclosure via FB and the related stakeholders’ reactions.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-23
      DOI: 10.1108/MEDAR-11-2020-1066
      Issue No: Vol. 30 , No. 7 (2022)
       
  • The facets of the sustainability paradox
         This is an Open Access Article Open Access Article

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      Authors: Daniela Argento , Laura Broccardo , Elisa Truant
      Abstract: This paper aims to examine why the sustainability paradox exists and how it unfolds by focusing on intraorganizational dynamics. It explores how organizational actors perceive and make sense of sustainability and thereby contribute to the sustainability paradox. In a case study on IREN, an Italian listed multi-utility with considerable engagements with sustainability, data collection through interviews, e-mails and document analysis revealed contradictions raised by directors and middle managers. Findings were analyzed by iterating with the literature used to frame this study, which combines organizational sensemaking, paradoxes and management control. The sustainability paradox comprises various facets. Directors and middle managers interpret sustainability differently depending on their role within the organization and their perceptions of the concept itself. Different interpretations thus occur within and across organizational levels and functions, impacting how sustainability is implemented and monitored. The use of parallel management control systems (MCSs) reflects multiple and fragmented sensemaking, which explains the facets of the sustainability paradox. Although this work illuminates the role played by individuals at top- and middle-management organizational levels and MCSs in relation to the sustainability paradox, more research is needed on how individuals make sense of sustainability at the lowest organizational levels. Organizations claiming commitment to sustainability must establish communication forms on the practicalities of sustainability throughout the organization to stimulate shared sensemaking and the design and use of inclusive MCSs. This paper explains why and how organizations unconsciously enact various facets of the sustainability paradox.
      Citation: Meditari Accountancy Research
      PubDate: 2022-02-17
      DOI: 10.1108/MEDAR-10-2020-1051
      Issue No: Vol. 30 , No. 7 (2022)
       
  • Private firm performance: do women directors matter'

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      Authors: Mahnoor Sattar , Pallab Kumar Biswas , Helen Roberts
      Abstract: This paper aims to examine the relationship between board gender diversity and private firm performance. The authors test the association between board gender diversity and private firm performance by estimating pooled multivariate regressions using an unbalanced panel data set of 115,253 firm-year observations. The authors find that younger, less busy and local women directors enhance private firm performance. Firms with 40% or more women directors report triple the economic benefits compared to boards with at least 20% women directors. Considering firm size, women directors significantly increase small firm profitability, and the effect is more pronounced for high-risk firms. Greater board gender diversity enhances small firm performance as the monitoring role of women directors benefits the firm even in the presence of busy men directors. Consistent with the agency theory framework, the authors find that women directors improve small firm profitability in the presence of agency costs. Due to the lack of availability of data about private firms, many factors are not directly observable. The analysis uses accounting-based performance measures that may be subject to managerial discretion. Nevertheless, the authors report highly significant results using cash-based performance measures that substantiate the overall findings. The results of the present study point to the need for private firms to increase board gender diversity and consider women director busyness, age, nationality and firm size when making board director appointments. This study adds to the scarce existent literature investigating private firms. The results contribute to the understanding of gender-diverse boards as well as the attributes of women directors that enhance private firm performance.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-31
      DOI: 10.1108/MEDAR-03-2021-1233
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Tax literacy: what does it mean'

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      Authors: Bernadene De Clercq
      Abstract: This paper aims to identify the competency domains to be included in a conceptual framework for tax literacy. Using a qualitative approach, this study expands on the current understanding of the competency areas of tax literacy. A dual-purpose literature review was, therefore, conducted. The literature review first provided the body of knowledge that underpinned the study and second, the key data concepts for the draft competency structure to determine whether there is consensus on an international (supra) level. The literature review was supported by an interactive qualitative analysis to further present the concept of tax literacy from the perspectives of various national stakeholders in an emerging economy. Accounting and public finance educators from a higher education institution, as well as financial advisers as representatives of a profession with a direct interest in tax-related matters, were considered. Although a discipline lens seems to strongly influence the previous authors’ view of what tax literacy means, it was possible to identify certain tax literacy competency domains that should be included in a taxpayer education curriculum. These content domains consist first of a knowledge domain which includes disciplinary, interdisciplinary, epistemic and procedural knowledge components. Second, the skills domain should include components of cognitive and meta-cognitive, social and emotional, as well as physical and practice skills. Third, personal and societal attitudes and values represent the third domain. Fourth, transformative competencies such as value creation, taking responsibility and reconciliation attributes are important. Finally, core foundational competencies, such as numeracy and literacy should be in place. The draft conceptual framework for tax literacy could serve as the foundation for the further development of a tax literacy measurement instrument, as well as tax education courses. A more holistic conceptual framework for tax literacy, portraying the multidimensional nature of taxation, is presented in contrast to the limited one-dimensional position presented up to now.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-28
      DOI: 10.1108/MEDAR-04-2020-0847
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The ungreening of integrated reporting: a reflection on regulatory capture

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      Authors: Caroline M. Bridges , Julie A. Harrison , David C. Hay
      Abstract: The initial rationale for developing integrated reporting included addressing the failures of traditional reporting to address sustainability issues. Subsequently, the International Integrated Reporting Council (IIRC) modified its stated objectives to emphasise integrated thinking and value creation. There has been debate on whether the IIRC’s process for developing its integrated reporting framework was subject to regulatory capture by the accounting profession (Flower, 2015; Adams, 2015; Thomson, 2015). This paper aims to provide additional evidence on the extent to which this regulatory capture occurred, with an update on current developments. Data from interviews with key participants in the integrated reporting framework’s development and the IIRC’s Council and Working Group meeting minutes were analysed to identify to what extent the change in the IIRC’s focus can be explained by regulatory capture theory. The findings show that the integrated reporting framework’s development was subject to regulatory capture by accountants. However, the extent of capture was mitigated to some extent by processes adopted in its development. This is consistent with regulatory capture theory. This paper critically examines the debate on the extent to which the sustainability message has been lost as a result of regulatory capture. It provides an in-depth analysis of the IIRC’s treatment of sustainability which explores the application of regulatory capture theory and examines evidence not considered in previous studies.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-24
      DOI: 10.1108/MEDAR-11-2020-1089
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Through the rhetoric art: CEO incentives in sustainability sensitive
           industries

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      Authors: Yosra Mnif , Jihene Kchaou
      Abstract: This paper aims to explore the relationship between the readability of sustainability reports and chief executive officer (CEO) attributes, comprising monetary, non-monetary incentives and personal characteristics. The study is based on an international sample of companies operating in sustainability-sensitive industries during 2016–2018. The results prove that CEO monetary incentives, as well as CEO non-monetary incentives, negatively influence the readability of sustainability reports, revealed in a positive relationship with readability indexes, by providing reports with greater reading difficulty. Additionally, this study shows evidence about the relation of complementarity between these incentives. Other CEO characteristics have no significant effect on the readability of sustainability reports. This research sheds the light on the role of CEO incentives in obfuscating sustainability information to portray the company, operating in sustainability-sensitive industries, in a favorable image.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-22
      DOI: 10.1108/MEDAR-09-2021-1451
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Disclaimer language in US banks’ audit committee reports:
           determinants and consequences

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      Authors: Christine Naaman , Karen Naaman , Najib Sahyoun
      Abstract: This paper aims to investigate the determinants and consequences of using disclaimer language in the banks’ audit committee (AC) reports. This study aims to analyze the factors tempting AC members of banks to disclose disclaimer language in the AC reports and the effect of such language on the cost of equity. The data cover the period from 2006 to 2015 and considers the top US bank holding companies. Voluntary disclosure in the AC report is manually coded by using a scoring grid. Multivariate regression analysis is mainly used in the study. The findings suggest that the ACs are using the disclaimer language to protect themselves when disclosing a high level of voluntary information that describes their oversight activities or to reduce their liability exposure due to lower financial reporting quality. The findings also reveal that investors are requiring a higher return on their investments whenever ACs use disclaimer language in their reports. The AC report provides useful information to shareholders who evaluate the AC’s performance and accordingly vote for or against AC members on annual basis. The paper sheds lights on the motives and consequences of disclaimer language in the ACs report. Thus, the study benefits shareholders by providing empirical evidence in regard to the usage of disclaimer language. Also, the findings benefit industry, corporate governance organizations, standard setters and regulators that analyze AC disclosures and issue recommendations or new standards for improving those disclosures.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-17
      DOI: 10.1108/MEDAR-04-2021-1259
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Environmental disclosure on mandatory and voluntary reporting of
           Portuguese listed firms: the role of environmental certification,
           lucratively and corporate governance

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      Authors: Albertina Paula Monteiro , Cláudia Pereira , Francisco Manuel Barbosa
      Abstract: This study aims to construct two environmental disclosure indices (EDI), one obtained from the mandatory reporting (annual report) and the other from the voluntary reporting (sustainability report), to compare their evolution. In addition, the authors developed and evaluated a conceptual model that aims to analyse if the two EDI are affected by industry, environmental certification, lucratively and corporate governance attributes. The legitimacy, signalling and voluntary disclosure theories are used to support the theoretical relationship between the company’s characteristics, corporate governance and environmental disclosure. Using the content analysis technique, the authors have developed two indices to assess the level of environmental disclosure in the companies’ mandatory and voluntary reporting. In addition, to analyse the determinants of EDI, the authors applied the technique of multiple linear regression using panel data. Based on Portuguese listed companies (Euronext-Lisbon), the results, from 2015 to 2017, exhibited an increase of 14.6% and 25.8% for the EDI obtained from the annual reports and for EDI obtained from the sustainability reporting, respectively. In addition, the results revealed that the environmental certification, lucratively, number of members on board and number and proportion of women of the board directors tend to affect the annual reporting EDI. Regarding the sustainability reporting EDI, the results showed that the environmental certification, lucratively and proportion of independent members of the board of directors have an impact on it. The study focuses on quantitative rather than qualitative disclosures and it brings some insights to the theoretical field. The results obtained can assist corporate decision-making processes regarding the improvement of environmental disclosure, both on the mandatory annual report and on voluntary sustainability reports. This study brings new perspectives to this topical issue in accounting. Originally, this study is applied to Portuguese listed companies and it shows different trends and determinants of environmental disclosure when included in the annual reporting or sustainability reporting.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-17
      DOI: 10.1108/MEDAR-09-2020-1001
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Intellectual capital disclosure on Twitter – empirical evidence from the
           world’s largest companies

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      Authors: Łukasz Bryl , Justyna Fijałkowska , Dominika Hadro
      Abstract: This study aims to examine intellectual capital disclosure (ICD) on Twitter by 60 of the world’s largest companies and explains the main themes communicated to stakeholders. The second objective is to determine which topics provoke most stakeholders’ reactions. The authors perform content analysis on more than 42,000 tweets to examine ICD practices along with the reactions of stakeholders in the form of retweets and “favorites” toward the information disclosed. Intellectual capital (IC) is an important theme in corporate disclosure practices, as more than one-third of the published tweets refer to IC. The world’s largest companies focus on relational capital information, followed by human and structural capital. The main IC themes disclosed were management philosophy, corporate reputation and business partnering. Tweets related to IC are of greater interest to stakeholders than other tweets and provoke more reactions. There is no complete consistency between the topics most intensively disclosed by companies and those that elicit the most vivid responses from the addressees. This study offers an understanding of the world’s largest companies’ practices that refer to ICD via social media and has implications for organizations in the creation and use of communication channels when developing a dialogue with stakeholders on topics regarding IC that may lead to better management of IC performance. This paper is a response to the call for studies on ICD via social media, which is strongly highlighted in the recent literature concerning future research on IC and until now was almost absent in the field of business units. This research provides in-depth insights into the use of Twitter to disclose IC elements and indicates which fields and topics of this disclosure provoke stakeholders’ reactions, which is a novelty in ICD studies.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-13
      DOI: 10.1108/MEDAR-02-2021-1211
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Barriers to institutionalization of an IFRS-based model: perceptions of
           Portuguese auditors

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      Authors: Alexandra Soares Fontes , Lúcia Lima Rodrigues , Carla Marques , Ana Paula Silva
      Abstract: In 2010, Portugal’s newly implemented Accounting Standardization System (SNC - Sistema de Normalização Contabilística) aligned Portuguese accounting standards for unlisted companies with International Financial Reporting Standards (IFRS). The purpose of this paper is to explore the influence of the local context and the role of auditors in the institutionalization of this IFRS-based model in Portugal. Drawing from an institutional theory framework, the authors interviewed 16 Portuguese auditors in 2017 (seven years after formal implementation of the SNC) to determine their perceptions on whether barriers to the IFRS-based model persisted. The authors reveal that the code-law institutional logic embedded in the Portuguese context is hindering full institutionalization of the new accounting model. Some persisting barriers to implementation reflected a decoupling between formal requirements and actual practices. Despite these barriers, there has been an encouraging institutionalization of SNC. The authors reveal a high level of commitment of auditors. They draw attention to the engagement of auditors in the institutional work that is intended to assist in SNC implementation, and their role as promoters of a power-knowledge discourse in propagating IFRS institutional logics at the national level, namely, through the justification and rationalization of the reported institutional contradictions. The highlighting the authors provide of problems related to accounting change should assist international regulators, the Portuguese standard-setter and professional accounting associations to devise appropriate strategies to promote IFRS-based accounting systems implementation. The authors contribute to the skimpy literature on micro institutional analysis and encourage further exploration of the dynamics between the micro and macro levels of analysis in institutional research.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-03
      DOI: 10.1108/MEDAR-09-2020-1014
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Performance auditing and neoliberal governmentality: future research
           directions

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      Authors: Tarek Rana , Dessalegn Getie Mihret , Tesfaye T. Lemma
      Abstract: This paper aims to interpret the role and professional issues of public sector performance auditing (PA) as a mechanism of neoliberal governmentality in the New Public Management (NPM) era by drawing on a Foucauldian conceptual lens to chart directions for future research. The study uses the Foucauldian concepts of visibility and identity to interpret PA against the background of neoliberal imperatives of public sector management. As the growing emphasis on PA in recent decades can be understood as driven by the concurrent development of neoliberal and NPM rationalities, the relatively underexploited concepts of visibility and identity allow further inquiry into important PA issues. This paper identifies avenues for future research under the following three themes: the issue of visibility in neoliberal governmentality and potential for auditors-general to expand the domain of influence of National Audit Offices through the PA role; the potential for PA as a unified distinct specialisation; and the neoliberal idea of professional identity as the individual expert and its interplay with the potential emergence of PA as a distinct function within the accounting profession. This conceptual paper is anticipated to stimulate future PA research. Key areas in this respect include the position and authority afforded to PA and the possibility of transformation in auditors’ conception of their professional worldview. This paper charts direction for future research by interpreting PA using Foucauldian concepts of visibility and identity that remain to be exploited in PA research.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-01
      DOI: 10.1108/MEDAR-11-2020-1076
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Value creation disclosure: the international integrated reporting
           framework revisited in the light of stakeholder theory

         This is an Open Access Article Open Access Article

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      Authors: Renata Paola Dameri , Pier Maria Ferrando
      Abstract: The paper aims to propose an integrated reporting (IR) framework rooted in Freeman’s stakeholder theory (ST). The proposed framework modifies the international integrated reporting framework (IIRF) and aims to overcome criticisms related to its focus on investors and the abandonment of sustainability. The paper develops a modified IIRF based on an in-depth analysis of the IR and ST literature. The framework was then applied to a non-profit health-care organisation to verify its theoretical assumptions. The modified IIRF was conceived as a ready-to-use tool. By applying it to a business case, it was validated with respect to whether and how it could help achieve better and more stakeholder-oriented reporting. The findings enabled us to validate the use of the tool not only for reporting but also for the self-assessment of organisations with respect to embedding ST. The modified IIRF was implemented only in one case, and further implementations are needed to comprehensively identify its strengths and weaknesses, both in for-profit and non-profit organisations. The revised IIRF represents an updated tool for reporting and disclosing the value created by an organisation for itself and for its stakeholders including the external entities affected by the impacts engendered by the organisation. In this way, the IIRF can give visibility to all value created and the value creation process, including sustainability matters. This allows integrated thinking processes to be incorporated accordingly, supporting better management. This paper suggests three adjustments to improve the IIRF’s ability to incorporate ST as a theoretical foundation. The adjusted IIRF is a ready to-use-tool specifically highlighting what value or values an organisation delivers (its outcomes), for whom (its stakeholders) and how (its specific business processes) within a business model effectively connecting them. From this point of view, it fits the rising stream about the evolution of the sustainability reporting fostered jointly by the international integrated reporting council and sustainability accounting standard board, and by the European Union.
      Citation: Meditari Accountancy Research
      PubDate: 2021-12-01
      DOI: 10.1108/MEDAR-11-2020-1103
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Financial inclusion, corporate social responsibility and firm performance
           – analysis of interactive relationship

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      Authors: Asit Bhattacharyya , Mahbub Khan
      Abstract: Prior studies on corporate social responsibility (CSR) and performance have frequently used unidirectional, single-equation regression although the literature recommends the reciprocal association of CSR with firm performance. This paper aims to elucidate the interactive relationship of CSR spending with financial inclusion (FI) and firm performance. The study also explores the moderating impact of the level of FI on the CSR-firm performance relationship. This study uses a simultaneous equations model to capture the FI, CSR and firm performance relationships and apply a three-stage regression approach and generalised method of moments approach to address possible endogeneity. The results confirm a positive association of CSR spending with performance but a negative relationship of FI with performance. This paper also finds that FI negatively moderates the CSR spending-performance relationship. The positive impact of CSR spending and the negative impact of FI on performance in mandatory CSR regimes provides valuable input in policy formulation. The results of the study will also be useful to national and international organisations, such as the International Monetary Fund and the World Bank. This study uses a simultaneous equations model to capture the reciprocal association of CSR spending with firm performance, whereas prior studies on CSR and performance have frequently used unidirectional, single-equation regression. This paper also finds that FI negatively moderates the CSR spending- performance relationship. Including FI and exploring the moderating impact of the level of FI on the CSR-firm performance relationship is novel.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-30
      DOI: 10.1108/MEDAR-12-2020-1121
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Sustainability performance and social media: an explorative analysis
         This is an Open Access Article Open Access Article

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      Authors: Sarah Russo , Federico Schimperna , Rosa Lombardi , Pasquale Ruggiero
      Abstract: This paper aims to present a deep understanding of how social media affects organisations’ sustainability performance, using environmental, social and governance (ESG) factors. Particularly, this paper assumes the existence of a causal relationship between organisations’ sustainability performance and the use of their social media profile (i.e. Twitter). The authors used a multivariate regression with an explorative approach. Using Thomson Reuters Eikon, the authors composed a sample of 115 public EU companies with a headquarter in Europe operating in the “energy” and “utilities” sectors. The authors collected ESG-related, financial and Twitter-related data covering the period 2016–2019. The study findings emphasise the existence of a statistically significant and positive relationship between social media profiles (i.e. Twitter) and companies’ sustainability performance. Findings show that ESG-oriented companies use their Twitter profile more as a tool for achieving a higher level of legitimation rather than for managing their sustainability strategy and related performance. Therefore, social media contribute more to the construction of companies’ CSR identity than the management of analytic aspects of sustainability performance. The longevity of companies’ profiles is the variable mostly showing a causal relationship not only with the general measure of companies’ sustainability performance but also with its pillars and sub-pillars. This research is original in showing academics, practitioners and policymakers results on the impact of different modalities of interaction (retweets, replies, likes and quotes) between organisations and stakeholders by using social media on sustainability performance.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-29
      DOI: 10.1108/MEDAR-03-2021-1227
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The digitalization-reputation link: a multiple case-study on Italian
           banking groups

         This is an Open Access Article Open Access Article

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      Authors: Francesca Bernini , Paola Ferretti , Antonella Angelini
      Abstract: This paper aims to focus on the relation between digital transformation and banks’ reputation, as examined through the information disclosed by the five largest Italian banking groups’ efforts to extend and enhance their digital resources. Considering digitalization as a key strategy for managing reputation, which, in turn, can leverage financial and value performance management, the paper investigates whether and how digital activities might affect banks’ reputation. Therefore, this paper proposes the relationship between digitalization and reputation as a lever for performance management and for increasing efficiency. The authors use content analysis to generate a digital disclosure index, categorizing activities human, structural and relational. For banks’ reputations, the proxies are a measure of corporate reputation and a reputational risk index. Methodologically the study used multiple case studies, considered as particularly suitable to gain an in-depth understanding of the topic in the case of the five banks. A collection of secondary data and semi-structured interviews are included. Overall, the digitalization-reputation link shows that banks’ reputation is variously affected, not only by exposure to risk (including reputational risk) but also by strategic issues such as digitalization and the effectiveness of the corresponding communication. Consequently, banks should view digitalization as a key driver to be considered not in a stand-alone perspective, but in a combined approach. Continued research should include the Covid-19 implications. Additionally, it would be important to compare a larger number of banks, with different characteristics, also including variables indicating the corporate governance mechanisms. The analysis contributes to fostering scholars’ and practitioners’ management of the digital transformation challenge that is a current key-factor, capable of increasing banks’ value. It considers not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation. This paper extends prior research on the digitalization-reputation relation by investigating digital transformation through disclosure of activities in this area within the Italian banking sector. It allows to leverage the key-factors that can contribute to increasing banks’ value, considering not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-26
      DOI: 10.1108/MEDAR-02-2021-1201
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Global trends in board diversity research: a bibliometric view

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      Authors: Saleh F.A. Khatib , Dewi Fariha Abdullah , Ahmed Elamer , Ibrahim Suleiman Yahaya , Andrews Owusu
      Abstract: This study aims to identify the main research development on board diversity and offers a quantitative synopsis of key themes and contributors, knowledge gaps and provides directions for further work. Using a bibliometric analysis, the authors assess the patterns in global board diversity research based on co-occurrences of researchers’ keywords and publication outputs of 991 articles from the Scopus database. Also, the co-citation network analysis was performed to assess the intellectual structure of board diversity research. According to the keyword analysis, the authors found that researchers focus on the gender diversity of the boardroom while ignoring the cognitive diversity and other aspects of demographic diversity such as educational, ethnic, age, nationality, experience, background and tenure, pointing to the need for further work to consider other diversity attributes and the interaction between them. Additionally, board diversity research related to (but not limited to) payout policy, cash holding, initial public offerings, small–medium enterprises and financial institutions is limited. This study provides a comprehensive evaluation of the development of board diversity research (using a large archival database) and identifies the common construct as well as the potential opportunities for future research directions.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-23
      DOI: 10.1108/MEDAR-02-2021-1194
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Leveraging business intelligence systems to enhance management control and
           business process performance in the public sector

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      Authors: Mohamed Z. Elbashir , Steve G. Sutton , Vicky Arnold , Philip A. Collier
      Abstract: Recent research and policy reports indicate public sector organizations struggle to leverage information technology-based performance measurement systems and fail to effectively evaluate performance beyond financial metrics. This study aims to focus on organizational factors that influence the assimilation of business intelligence (BI) systems into integrated management control systems and the corollary impact on improving business process performance within public sector organizations. The complete Australian client list was acquired from a leading BI vendor; and the authors surveyed all public sector organizations, receiving 226 individual responses representing 160 public sector organizations in Australia. Using latent construct measurement, structural equation modeling (SEM)-partial least squares is used to test the theoretical model. When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities that are critical to assimilation in private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. When top management effectively manages knowledge importation from external entities to counteract deficiencies, public sector organizations effectively assimilate BI knowledge into performance measurement yielding strong process performance. When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities critical to assimilation in the private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. The research extends the theory behind organizational absorptive capacity by highlighting how knowledge importation can be used as an external source facilitating internal knowledge creation. This collaborative knowledge creation leads to affective assimilation of BI technologies and associated performance gains. The results provide guidance to public sector organizations that struggle to measure and validate service outcomes under New Public Management regulations and mandates. The results reveal that consistent with the philosophies behind New Public Management strategies, private sector measures for increasing organizational absorptive capacity can be applied in the public sector. However, knowledge importation appears to be a major catalyst in the public sector where the resources to retain skilled professionals with an ability to leverage contemporary technologies into service performance are often very limited. Top management team knowledge and skills are critical to effectively leveraging these internal and external knowledge creation mechanisms.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-23
      DOI: 10.1108/MEDAR-04-2021-1287
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • A measurement framework for assessing the digital transformation of
           cultural institutions: the Italian case

         This is an Open Access Article Open Access Article

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      Authors: Deborah Agostino , Chiara Costantini
      Abstract: Public and private sector organisations are widely endorsing digital transformation processes, but little is known about the level of digitalisation of an organisation as a whole. The purpose of this paper is to develop a framework to assess an organisation’s level of digital transformation as a whole, taking the field of museums as an exemplary case of application. The framework draws upon a scoping literature review of studies examining dimensions, metrics and methods for the assessment of the digital transformation of organisations. The framework has been validated by applying it to a sample of 400 Italian museums and further interviews with museum directors. The authors propose an assessment framework composed of five main dimensions: people, technology, process, customer and strategy and investment. These dimensions are further deployed in sub-dimensions measured through a set of questions. The weighted average of results per dimension and sub-dimension supported the development of a composite index of organisational digital readiness. The developed framework contributes to the current debate on the measurement of an organisation’s level of digital transformation as a whole, and it can offer practitioners a managerial tool to assess the organisation’s digital readiness.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-18
      DOI: 10.1108/MEDAR-02-2021-1207
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The mediating role of relational capital for the academic performance
           effect of IC: the influence of digital technologies

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      Authors: Claudia Arena , Simona Catuogno , Anna Crisci , Valeria Naciti
      Abstract: Different mechanisms allow intellectual capital (IC) to affect performance. This paper aims to analyze the value of relations for the academic performance effect of IC and explore how the university’s reliance on digital technologies facilitates the contribution of IC to the overall academic performance. The authors develop a model linking elements of IC to academic performance in the form of teaching, research and entrepreneurial activity. The model is centered on relational capital (RC) that is supposed to directly fuel performance and mediate the link between the other two IC dimensions and performance. From a methodological point of view, the authors base the empirical investigation on a sample of Italian public universities and applied structural equation modeling to test the mediation and a group comparison to disentangle the effect of universities’ digitalization. The authors find a significant and positive effect of RC on performance. RC fully mediates the relationship between structural capital and academic performance, whereas it only partially mediates the link between human capital and academic performance. The authors also suggest that digital technologies guide the prominence of the relationship in the university’s ability to fulfill teaching, research and entrepreneurship missions through IC. This study offers a representation of how the relational dimension of IC is the mean through which the stock of knowledge inside IC can be translated into entrepreneurial, education and research achievements and how digital technologies are essential for the exploitation of the performance effect of IC in the digital era.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-10
      DOI: 10.1108/MEDAR-02-2021-1209
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Regulating non-financial reporting: evidence from European firms’
           environmental, social and governance disclosures and earnings risk

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      Authors: Muhammad Arif , Christohper Gan , Muhammad Nadeem
      Abstract: Motivated by the enactment of non-financial reporting regulations by the European Parliament, this paper aims to investigate the impact of European Union (EU) directive 2014/95/EU on the quantity of environmental, social and governance (ESG) disclosures by the S&P Europe 350 index firms. This study also investigates whether the implementation of the non-financial information (NFI) reporting regulations influences the association between ESG disclosures and firms’ earnings risk. To measure the impact of mandatory regulations on the quantity of ESG disclosures, this study estimates the average treatment effects using a propensity weighted sample. Then this study uses the difference-in-differences method to estimate the differences in the association between ESG disclosures and earning risk before and after implementation of the EU directive. The results show a significant positive impact of the EU directive on the quantity of ESG disclosures for the sample European public-interest entities, which indicates that the mandatory NFI reporting requirements could boost the availability of increasingly demanded ESG related information. The enhanced association between the ESG disclosures and firms’ earnings risk during the post-directive period reveals that mandating NFI reporting also increases the quality of ESG disclosures. Using the legitimacy and decision-usefulness theories, this study provides novel evidence concerning the impact of the EU directive on the quantity and quality of ESG disclosures.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-08
      DOI: 10.1108/MEDAR-11-2020-1086
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Will the revisions to GRI 303 improve corporate water reporting' The
           challenges of defining and operationalising “water stress”

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      Authors: Dushyanthi Hewawithana , James Hazelton , Greg Walkerden , Edward Tello
      Abstract: This paper aims to examine whether the disclosure obligations in areas of water stress required under the revised Global Reporting Initiative standard (GRI) 303 Water and Effluents, 2018 will improve the quality of corporate water reporting. As a key new requirement is to disclose the impact of water withdrawals from (and discharges to) areas experiencing water stress, the authors examine the ambiguity of the term “water stress” and the extent to which following the GRI’s guidance to use the Aqueduct Water Risk Atlas and/or the Water Risk Filter will enable quality corporate water reporting. The study is informed by the notion of public interest reporting, on the basis that the provision of contextual water information is in the public interest. To explore the ambiguity of the term “water stress”, the authors conduct a semi-systematic review of hydrology literature on water stress and water stress indices. To explore the efficacy of using the Aqueduct Water Risk Atlas and/or the Water Risk Filter, the authors review the operation and underlying data sources of both databases. The term “water stress” has a range of definitions and the indicators of water stress encompass a wide variety of differing factors. The Aqueduct Water Risk Atlas and the Water Risk Filter use a combination of different risk indicators and are based on source data of varying quality and granularity. Further, different weightings of water risk information are available to the user, which yield different evaluations of water stress. A variety of approaches are permitted under GRI 303. Effective implementation of GRI 303 may be impeded by the ambiguity of the term “water stress”, varying quality and availability of the water stress information and the fact that different water stress calculation options are offered by the water databases. The authors suggest that the GRI closely monitor compliance, implementation approaches and scientific developments in relation to the water stress requirements with a view to providing further guidance and improving future iterations of the standard. Whilst there have been many calls for improved contextual water reporting, few previous studies have explored the challenges to implementing reporting requirements related to the determination of “water stress”.
      Citation: Meditari Accountancy Research
      PubDate: 2021-11-01
      DOI: 10.1108/MEDAR-12-2019-0639
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The strategic governance of the digital accounting environment: insights
           from virtual museums

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      Authors: Paolo Esposito , Alessandro Braga , Alessandro Sancino , Paolo Ricci
      Abstract: This paper aims to investigate the strategic governance of the digital transformation of the accounting environment in cultural organizations, with a specific focus on practices of social responsibility and stakeholder engagement in virtual museums. By adopting a multiple case study approach, this study investigated five Italian virtual museums and their digitalization processes. Data were collected and triangulated from multiple sources, including documentary analysis and semi-structured interviews with 16 key informants. Considering the digitalization of the accounting environment as a paradigmatic change, the authors identify three key transitions for its strategic governance: from the static, technical and physical to the relational, emotional and digital; from bureaucratic managerialism to value cocreation; and from traditional CSR to integrated external engagement. Moreover, the authors found that social responsibility and stakeholder engagement practices are used in a limited way, and that the use of social media appears to be increasingly important and to be carried out through an emergent rather than a deliberate strategy. The paper draws from a limited sample of case studies in one country and is based on exploratory research. This paper calls for more comparative studies using a longitudinal approach to investigate the impacts of digitalization on the accounting environment of cultural organizations. This study is one of the few studies concentrating on the effects of digitalization on the accounting environment of cultural organizations.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-29
      DOI: 10.1108/MEDAR-03-2020-0837
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Accountability disclosure of SOEs: comparing hybrid and private European
           news agencies

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      Authors: Ana Yetano , Daniela Sorrentino
      Abstract: This paper aims to explore the financial and non-financial accountability disclosure patterns of state-owned enterprises (SOEs), as hybrid organizations. Adopting the hybridity concept and resorting to stakeholder theory, this paper works on a comparison between the accountability disclosure patterns of hybrid and private organizations operating in the same industry. European national news agencies are selected as units of analysis and an extensive web content analysis is performed on three categories of information. SOEs are found to disclose a broader spectrum of information than private organizations, and differences between them have been found. Nevertheless, both financial and non-financial disclosures are underdeveloped in the two organizational types. This paper illustrates how hybridity explains SOEs’ accountability disclosure patterns. Results could not be complemented through information on disclosure through alternative channels. Future studies are encouraged to perform simultaneous comparisons among hybrid, public and private organizations, as well as considering industry specifics. As web accountability disclosure helps to address the demands of distant stakeholders, efforts are needed to enhance SOEs’ web accountability disclosures and not to undermine democratic accountability relationships. This paper contributes to the ongoing debate on the accountability mechanisms and style of SOEs. Using a framework for hybrid organizations provides an understanding of how SOEs, as hybrid organizations, disclose information for accountability. In turn, this allows, and then promotes, the investigation of social phenomena by conceiving hybridity as a standalone institutional space.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-28
      DOI: 10.1108/MEDAR-04-2020-0873
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The moderating effect of culture on the relationship between
           accountability and professional scepticism

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      Authors: Medhat Endrawes , Shane Leong , Kenan M. Matawie
      Abstract: This study aims to examine whether accountability and culture have an impact on auditors’ professional scepticism. It also examines whether culture moderates the effect of accountability on auditors’ professional scepticism. Three of the Big 4 firms in Australia and Egypt participated in an audit judgement experiment, which required them to indicate their beliefs about the risk of fraud and error at the planning stage of a hypothetical audit and evaluate the truthfulness of explanations provided by the client management. The authors examined whether their professional scepticism was influenced by accountability. The results indicate professional scepticism differs significantly between cultures in some situations. The fact that culture influences scepticism suggests that even when auditors use the same standards (such as ISA 240 and ISA 600), they are likely to be applied inconsistently, even within the same firm. The authors, therefore, recommend that international bodies issue additional guidance on cultural values and consider these cultural differences when designing or adopting auditing standards. To the best of the authors’ knowledge, this is the first study that examines whether culture moderates the impact of accountability on auditors’ professional scepticism using Egyptian and Australian (Middle Eastern and Western) auditors. Prior literature suggests that individuals subject to accountability pressure increase their cognitive effort and vigilance to detect fraud and error. As the authors find evidence that culture moderates accountability pressure and as accountability affects scepticism, they add to the literature suggesting that culture can influence professional scepticism.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-28
      DOI: 10.1108/MEDAR-08-2020-0986
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Stakeholder engagement in sustainability reporting by Fortune Global 500
           companies: a call for embeddedness

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      Authors: Putu Agus Ardiana
      Abstract: The purpose of this paper is to ascertain whether Fortune Global 500 companies embed stakeholder engagement in their sustainability reporting. Quantitative and qualitative content analyses were undertaken on 646 sustainability reports written in English over the period from 2015 to 2017. This research found a low level of stakeholder engagement disclosures and scant evidence that sustainability disclosures were drawn upon stakeholder engagement practices. The findings indicate that stakeholder engagement was loosely embedded in sustainability reporting. Sustainability reports are the sole unit of analysis. Besides, this research is limited to a sample of companies and to a specific period, which limits the generalisation of the research findings. Embedding stakeholder engagement in sustainability reporting holds companies accountable to their stakeholders. This is because the companies’ sustainability disclosures acknowledge the stakeholders’ concerns and information about the stakeholder engagement methods deployed to address those concerns. Stakeholder engagement promotes accountability by encouraging stakeholders to convey their opinions about corporate sustainability, participate in decision-making processes that impact them, and partake in defining the contents of sustainability reports. This paper provides insights into the need to link sustainability disclosures with stakeholder engagement disclosures, by articulating who the relevant stakeholders are and how they are engaged on the various sustainability topics – rather than conceiving them to be separate and independent disclosures in a sustainability report.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-25
      DOI: 10.1108/MEDAR-12-2019-0666
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Whistleblowing by accountants: an integration of the fraud pentagon and
           the extended theory of planned behavior

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      Authors: Mehdi Sarikhani , Fahime Ebrahimi
      Abstract: The purpose of this study is to investigate the factors affecting the whistleblowing intentions (WBI) by Iranian accountants by integrating the fraud pentagon and the extended theory of planned behavior. The population was made up of accountants from all of the 400 companies listed in the Tehran Stock Exchange and the authors used a quantitative survey-based method. Out of a total of 300 questionnaires administered, 171 valid responses were used for analysis. This research used the partial least squares structural equation modeling analysis using SmartPLS 3.3.3 to examine the proposed hypotheses and to analyze the research model. The results indicated that the extended theory of planned behavior components (perceived behavioral control, perceived subjective norms (PSN), perceived moral obligation and attitudes toward whistleblowing) have positive effects on accountants’ internal WBI. The results of investigating the moderating effect of perceived moral intensity (PMI) on the relationship between components of the extended theory of planned behavior and WBI show that PMI moderates the effect of PSN on WBI. This study develops the whistleblowing literature by bringing together the components of the fraud pentagon and the extended theory of planned behavior and providing an integrated model. This model, which incorporates many variables from previous research, seeks to provide a comprehensive model for whistleblowing with the expansion of the Brown et al. (2016) model.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-21
      DOI: 10.1108/MEDAR-10-2020-1047
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Assurance quality, disclosed connectivity of the capitals and information
           asymmetry – An interaction analysis for the case of integrated reporting
           

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      Authors: Michael Grassmann , Stephan Fuhrmann , Thomas W. Guenther
      Abstract: Credibility concerns regarding integrated reports can harm the intended decrease of information asymmetry between a firm and its investors. Therefore, it is crucial to examine whether voluntary third-party assurance enhances the credibility of integrated reports and, thus, decreases information asymmetry. Furthermore, this study aims to investigate the interaction effect between assurance quality and the disclosed connectivity of the capitals, a distinguishing feature of integrated reports. Content analysis is performed of the 176 assurance statements included in the 269 integrated reports of Forbes Global 2000 firms disclosed from 2013 to 2015 and the 269 integrated reports themselves. Regression analyzes are applied to examine the associations between assurance, the disclosed connectivity of the capitals and information asymmetry. The presence of an assurance statement in an integrated report significantly decreases information asymmetry. Surprisingly, assurance quality is not significantly associated with information asymmetry. However, an interaction analysis reveals that combining high assurance quality with high disclosed connectivity of the capitals allows a significant decrease in information asymmetry. The paper demonstrates that the connectivity of the capitals of integrated reports and assurance quality are connected and together are associated with information asymmetry. The results imply, both for report preparers and standard setters, that assurance quality is advantageous only when combined with disclosed connectivity of the capitals. More information on non-financial information measured by the connectivity of the capitals of integrated reporting has an interaction effect together with assurance quality on information asymmetry. This paper builds on a unique data set derived from the contents of integrated reports and accompanying assurance statements. Furthermore, it extends the integrated reporting literature by investigating the interaction between assurance quality and the disclosed connectivity of the capitals, which had not previously been examined in combination.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-19
      DOI: 10.1108/MEDAR-11-2020-1087
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • “Taming the black elephant”: assessing and managing the impacts of
           COVID-19 on public universities in Australia

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      Authors: Garry D. Carnegie , Ann Martin-Sardesai , Lisa Marini , James Guthrie AM
      Abstract: The Australian higher education sector faces severe risks from the consequences of COVID-19. This paper aims to explore these risks, their immediate impacts and the likely future impacts. The authors specifically focus on the institutional financial and social risks arising from the global pandemic. The authors collect data using the 2019 annual reports of the 37 Australian public universities and relevant media contributions. The findings of identified sector change are interpreted through Laughlin’s organisational change diagnosis. The sector confronts significant financial and social risks because of its over-reliance on income from fee-paying onshore overseas students resulting in universities primarily undertaking morphostatic changes. These risks include job losses, changing employment conditions, mental health issues for students, scholars, other staff, including casual staff, online learning shortfalls and the student expectations of their university experience. The study reveals how many of these risks are the inevitable consequence of the “accountingisation” of Australian public universities. Despite material exposure, the universities provide only limited disclosure of the extent of the risks associated with increasing dependence on overseas student fees to 31 December 2019. The analysis highlights fake accountability and distorted transparency to users of audited financial statements – a major limitation of university annual reports. Research on the Australian higher education sector has mainly focussed on the impact of policies and changes. The public disclosure of critical risks taken by these universities are now addressed.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-14
      DOI: 10.1108/MEDAR-03-2021-1243
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Qualitative research interviews using online video technology –
           challenges and opportunities

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      Authors: Charl de Villiers , Muhammad Bilal Farooq , Matteo Molinari
      Abstract: This study aims to examine the methodological and method-related challenges and opportunities arising from the use of video interviews in qualitative accounting research, focussed on collecting contextual data and visual cues, enriching communication quality and building and maintaining rapport with interviewees. Prior literature and the authors’ experiences using video technologies for research, including conducting interviews, inform this research. This study uses a transactional conceptual refinement of information richness theory and channel expansion theory to critically analyse the challenges and opportunities of using video technology to conduct qualitative research interviews. The ability, need for and significance of collecting contextual data depend on the researchers’ ontological and epistemological assumptions, and are, therefore, influenced by their research design choices. Video technology enables researchers to view research settings by video. In addition, whilst group/panel interviews have their advantages, it is often difficult to get everyone together in person, something video technology can potentially overcome. The feasibility and the quality of video interviews can be improved if both interview participants are experienced with using video technology, as well as with judicious investment in good quality video technology and through testing and practice. We also discuss how rapport building with interviewees can be facilitated by overcoming the video’s sense of disconnect and enhancing interviewees’ willingness to engage. The study builds on the limited prior literature and considers the challenges and opportunities related to methodology and method when conducting video-based qualitative interviews in accounting research. Broadly, qualitative researchers will find the paper useful in considering the use of video interviews and in making research design choices appropriate for video interviews.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-13
      DOI: 10.1108/MEDAR-03-2021-1252
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Translating sustainability strategies into performance: does
           sustainability performance management matter'

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      Authors: Ruzita Jusoh , Yazkhiruni Yahya , Suria Zainuddin , Kaveh Asiaei
      Abstract: Drawing on the natural resource-based view (NRBV) of the firm, this study aims to investigate the mediating role of sustainability performance management (SPM) practices in the relationship between corporate sustainability strategy (SS) and sustainability performance (SP). The conceptualization of SS and SPM practices follow the NRBV resources and capabilities to promote sustainability for competitiveness. Data for the study were collected through a questionnaire from 114 small-medium to large organizations within environmentally sensitive industries operating in Malaysia. The results indicate the indirect relationship between SS and SP through SPM practices. The results suggest that SS can only be realized through a broader management accounting control system (such as SPM practices) that provides information to generate, analyze and control environmental, social, economic and governance performance. As some organizations may face their resource constraints, this study may help managers and management accountants prioritize their focus on SS and adopt the necessary SPM practices to enhance their SP. This study sheds new light on the role of the SPM practices adopted by firms to manage their SS.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-11
      DOI: 10.1108/MEDAR-02-2021-1203
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Integrated reporting and analyst behaviour in diverse institutional
           settings

         This is an Open Access Article Open Access Article

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      Authors: Francesca Rossignoli , Riccardo Stacchezzini , Alessandro Lai
      Abstract: Given the limited studies that have started to focus on contexts where integrated reporting (IR) is voluntarily adopted, this paper aims to explore the moderating role of institutional characteristics on the association between voluntary report release and analyst forecast accuracy. This study uses a quantitative empirical research method grounded on voluntary disclosure theory to provide empirical evidence on an international sample of companies choosing to release integrated reports. Preliminarily, a cluster analysis is used to group countries according to institutional patterns. Multivariate analyses detect the associations between report release choice and analysts’ forecast accuracy across clusters. Multiple econometric approaches are used to address the endogeneity concerns. IR release is not informative for the market unless considering systematic variations across different institutional settings. Analysts’ forecast is more accurate for IR adopters located in strong institutional enforcement settings than for all the other companies. In the strong institutional setting that is also characterized by a pluralistic society, IR release benefits for the market are conditioned by the fact that the choice to release IR depends on environmental, governance and social disclosure-based managers remuneration and disclosure requirements. In weak institutional settings, IR release is not beneficial for the forecast accuracy. Academics and practitioners can gain understanding of the usefulness of voluntary IR across different institutional settings. The study advances the understanding of the IR’s informativeness, overcoming the common dichotomous distinctions between strong and weak institutional settings.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-11
      DOI: 10.1108/MEDAR-12-2020-1133
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Sustainability reporting in justice systems: a comparative research in two
           European countries

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      Authors: Floriana Fusco , Renato Civitillo , Paolo Ricci , Sylwia Morawska , Katarzyna Pustułka , Przemysław Banasik
      Abstract: That on accountability in public organizations is quite an old debate. Its introduction in judicial systems is, however, still viewed with some suspicion, due to its potential trade-off with independence and impartiality. Nevertheless, the need to respond to the demands for greater transparency and accountability has also pushed judicial organizations to establish a dialogue with a wide range of subjects. This study aims to explore the understanding and the current practices of sustainability reporting currently in place in judicial systems. The study adopts a comparative approach, conducting an online survey in two European countries (Italy and Poland). The survey was built around the research questions and literature and administered between February and March 2020. Specifically, 804 courts were involved, of which 430 are in Italy and 374 in Poland. Findings show that the current practices are still not widespread and there is still a lack of understanding of what sustainability reporting is, and therefore, of what its potential usefulness within the courts could be. Moreover, many differences between the two countries are pointed out, so it is possible to assume that the different cultural and institutional settings influence sustainability reporting practices. Finally, some interesting implications for policymakers are provided. Judicial organizations are still poorly investigated in the literature, despite being at the center of a wide public and political debate. Moreover, the international comparative perspective adopted constitutes a further aspect of novelty.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-10
      DOI: 10.1108/MEDAR-11-2020-1091
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The influence of overseas study and work experience on corporate
           environmental disclosures: evidence from Vietnam

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      Authors: Hang Ngoc My Le , Brendan Thomas O’Connell , Maryam Safari
      Abstract: Drawing from Upper-Echelons Theory (UET), this paper aims to examine whether an increasing number of board members studying and working overseas, especially in Anglo countries, provides some impetus for increased corporate environmental disclosures (CED) in Vietnam. This study used quantitative data collection and analysis. The data collection involved a content analysis of annual, sustainability and integrated reports to capture the quality and quantity of CED. The authors subsequently developed ordered probit models to quantitatively test the hypotheses. The authors find that board members studying in Anglo countries positively impact firms’ levels of CED in emerging economies. However, overseas work experience is found to be an insignificant explanatory variable. Further, the findings suggest that, in Vietnam, Chairs appear to be more influential than chief executive officers in affecting CED levels. Despite the positive influence of overseas study, the authors find overall levels of CED in Vietnam remain relatively low. This suggests the necessity of dialogue about potential reform in CED policies, which could involve the introduction of mandatory reporting requirements. In addition, to enhance sustainability disclosures, shareholders should appoint board members who possess international qualifications. This study adds to the literature exploring the impacts of Anglo cultural traits of board members on CED levels, within an economy transitioning from a communist ideology to a market-oriented system context. The connection between international study and cultural norms, beliefs and traditions in these countries and their positive influence on directors’ values and attitudes towards CED have not yet been studied. The study also extends UET by examining the potential positive influence of different national contexts on board members’ education levels.
      Citation: Meditari Accountancy Research
      PubDate: 2021-10-10
      DOI: 10.1108/MEDAR-11-2020-1109
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Performance evaluations and junior auditors’ attitude to audit behavior:
           a gender and culture comparative study

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      Authors: Sandra Khalil , Rabih Nehme
      Abstract: The purpose of this paper is to shed light on factors leading to unethical acts committed by auditors from a cultural and gender perspectives. It investigates differences in junior auditors’ attitudes towards audit behavior when a performance evaluation (PE) is anticipated. The objective of this study is to aid academicians and audit executives in developing new models of PE and internship programs that should mitigate dysfunctional behavior. A survey adapted from Big Four companies’ performance appraisal templates was administered to junior accountants who have completed their internship programs and their external audit course at accredited universities in Lebanon and the USA. Several statistical tests were conducted to analyze the relationship between the different variables. This paper shows how PE affects junior auditors’ attitudes to dysfunctional audit behavior (DAB). From a cultural standpoint, American auditors express more negative views towards DAB than their Lebanese counterparts. This paper also demonstrates that female auditors are less inclined towards DAB than male auditors. Previous studies on the topic have been mostly conducted in developed countries with a scarcity of studies examining multiple countries. This study focuses on two different cultural contexts, a developed country, the USA and an emerging country, poorly represented in the literature, Lebanon. This paper also observes variances between male and female auditors in DAB when expecting a PE. The originality of this paper stems from its concurrent examination of the impact of gender and culture on DAB by using a sample of less-experienced auditors at the end of their educational path.
      Citation: Meditari Accountancy Research
      PubDate: 2021-09-29
      DOI: 10.1108/MEDAR-04-2021-1285
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Disentangling the effect of perceived performance management system
           accuracy on intrinsic and extrinsic motivation

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      Authors: Domenico Berdicchia , Enrico Bracci , Giovanni Masino
      Abstract: This study aims to explore the effects of performance management systems’ (PMS) perceived accuracy on employees’ motivation. More specifically, this study draws on motivation crowding theory and self-determination theory to hypothesize the relationships between perceived PMS accuracy and intrinsic and extrinsic motivation and introduce two contextual moderating factors: participation in decision-making and task uncertainty. Data were collected through a questionnaire distributed to a sample of local government employees. Data were collected longitudinally over two measurement waves (T1 and T2), each separated by a four-month lag. The results revealed that perceived PMS accuracy is positively associated with both intrinsic and extrinsic motivation, and participation in decision-making and task uncertainty both positively moderate the relationship between perceived PMS accuracy and extrinsic motivation. This study contributes to clarifying the relevance of perceived PMS accuracy and the role played by significant contextual variables and offers recommendations to help design and implement PMS more effectively.
      Citation: Meditari Accountancy Research
      PubDate: 2021-09-27
      DOI: 10.1108/MEDAR-08-2020-0972
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Mandatory corporate social responsibility in India: reporting reality,
           issues and way forward

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      Authors: Pawan Taneja , Ameeta Jain , Mahesh Joshi , Monika Kansal
      Abstract: Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.
      Citation: Meditari Accountancy Research
      PubDate: 2021-09-13
      DOI: 10.1108/MEDAR-11-2020-1063
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Fundraising activities and digitalization: defining risk indicators for
           evaluating equity crowdfunding campaigns

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      Authors: Valentina Ndou , Paola Scorrano , Gioconda Mele , Pasquale Stefanizzi
      Abstract: The wide development of digital platforms permitted the birth of new financing modalities, namely, crowdfunding, where the crowd of individuals and investors can supply the necessary financial resources for venture creation and growth. While the extant literature has focused on analyzing the dynamics and features of crowdfunding campaigns, few studies have focused on understanding how crowd investors decide which ventures to invest in and which factors influence their decision-making process. Due to this gap, the purpose of this paper is to analyze the factors influencing the choice to invest in an equity crowdfunding campaign, by defining a set of indicators useful to evaluate the risk of the campaign. An empirical research study of Italian equity crowdfunding campaigns has been conducted to identify quantitative indicators useful for evaluating the risk in a crowdfunding campaign. Findings demonstrate that the risk indicators proposed to represent important gauges that investors can usefully consider ex ante to assess the degree of riskiness of the investment in the equity crowdfunding campaign. The limitations of the study regarding the size of the sample that is small due to the necessity to extract enough information in pre and post-equity campaigns. Also, the lack of historical data is another limitation. The originality of the studies relies on the proposal of quantitative indicators for the evaluation of the risk in equity crowdfunding campaigns for “crowd” investors to reduce information asymmetries.
      Citation: Meditari Accountancy Research
      PubDate: 2021-09-10
      DOI: 10.1108/MEDAR-03-2021-1237
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Does sustainability reporting promote university ranking' Australian
           and New Zealand evidence

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      Authors: Yuan George Shan , Junru Zhang , Manzurul Alam , Phil Hancock
      Abstract: This study aims to investigate the relationship between university rankings and sustainability reporting among Australia and New Zealand universities. Even though sustainability reporting is an established area of investigation, prior research has paid inadequate attention to the nexus of university ranking and sustainability reporting. This study covers 46 Australian and New Zealand universities and uses a data set, which includes sustainability reports and disclosures from four reporting channels including university websites, and university archives, between 2005 and 2018. Ordinary least squares regression was used with Pearson and Spearman’s rank correlations to investigate the likelihood of multi-collinearity and the paper also calculated the variance inflation factor values. Finally, this study uses the generalized method of moments approach to test for endogeneity. The findings suggest that sustainability reporting is significantly and positively associated with university ranking and confirm that the four reporting channels play a vital role when communicating with university stakeholders. Further, this paper documents that sustainability reporting through websites, in addition to the annual report and a separate environment report have a positive impact on the university ranking systems. This paper contributes to extant knowledge on the link between university rankings and university sustainability reporting which is considered a vital communication vehicle to meet the expectation of the stakeholder in relevance with the university rankings.
      Citation: Meditari Accountancy Research
      PubDate: 2021-09-09
      DOI: 10.1108/MEDAR-11-2020-1060
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Corporate governance and corporate social responsibility: mapping the most
           critical drivers in the board academic literature

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      Authors: Aladdin Dwekat , Elies Seguí-Mas , Mohammad A. A. Zaid , Guillermina Tormo-Carbó
      Abstract: This study aims to provide the intellectual structure of the academic literature on board characteristics and corporate social responsibility disclosure (CSRD) and corporate social responsibility performance (CSRP). To do that, the authors analyse the main theories, data sources and methodologies used by researchers, providing information on methodological bias and research gaps. Beyond that, this study offers a novel picture of the most critical drivers of CSRP/CSRD and offer constructive suggestions to guide future research. A content analysis was performed on 242 articles extracted from the Web of Science database from 1992 to 2019. Results indicate that board characteristics have a significant and increasing impact on corporate social responsibility (CSR) literature. The results also revealed that the board practices play a crucial role in managing CSRP/CSRD-related issues. The study also identifies the effect of the critical board characteristics on CSRP, CSRD quantity and CSRD quality. Furthermore, the study findings provide an overarching picture of the patterns and trends of the systematic nexus between board characteristics and CSRP/CSRD quality and quantity. The study findings help provide an overarching picture of the systematic nexus patterns and trends between board characteristics and CSRP/CSRD quality and quantity. These results draw potential future avenues to bridge the void in the current board–CSR literature by presenting fruitful and indispensable directions for future research (governance mechanisms, new methodologies, variables, countries, etc.). It also suggests multidimensional and in-depth insights for reforming the board of directors’ guidelines. To the best of the authors’ knowledge, minimal attention has been paid to systematising the literature on board and CSR.
      Citation: Meditari Accountancy Research
      PubDate: 2021-09-08
      DOI: 10.1108/MEDAR-01-2021-1155
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Which Italian SMEs fall in love with digitalisation' An exploration
           into the determinants

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      Authors: Nicola Raimo , Ivano De Turi , Michele Rubino , Filippo Vitolla
      Abstract: Digitalisation represents an important opportunity for SMEs or, in other words, a fundamental factor to help them implement competitive strategies aimed at innovation, cost reduction and internationalization. This study aims to investigate the determinants of the level of digitalisation of Italian SMEs. This study firstly involves a survey based on short telephone interviews to measure the level of digitalisation of 101 Italian SMEs and, secondly, uses a regression model to identify the drivers of this level of digitalisation. Empirical findings reveal that the Italian SMEs have an average level of digitalisation. Besides, they show that firm size, firm profitability and financial leverage represent drivers that positively influence the digitalisation of the Italian SMEs. This study provides an important contribution to the academic literature by providing a first operationalization of the concept of business digitalisation and by broadening the knowledge of the drivers of the level of digitalisation in the SMEs context.
      Citation: Meditari Accountancy Research
      PubDate: 2021-09-03
      DOI: 10.1108/MEDAR-02-2021-1210
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Challenges of, and techniques for, materiality determination of
           non-financial information used by integrated report preparers

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      Authors: A.M.I. Lakshan , Mary Low , Charl de Villiers
      Abstract: The international integrated reporting framework encourages organisations to disclose material information that affects their ability to create value. This paper aims to investigate the challenges and techniques preparers of integrated reports use to determine the materiality of non-financial information. This paper uses an exploratory interpretive thematic analysis and an archival research approach. Qualitative semi-structured interviews were conducted with 55 integrated reporting (IR) preparers in 12 publicly listed companies, supported by the perusal of the companies’ integrated annual reports over a three-year period. IR preparers find materiality determination for non-financial information challenging. This study found that preparers convert challenges into opportunities by using materiality disclosures as image-enhancing marketing tools, which causes concerns regarding weak accountability and a deviation from the International Integrated Reporting Council’s objective of improving information quality. This study found that IR preparers use various techniques in conjunction to determine materiality levels, as well as whether to disclose non-financial information in their integrated reports. The institutional isomorphism lens used in the study highlighted the issues IR preparers faced in their determined efforts of IR materiality levels under mimetic and normative isomorphism pressures. The challenges and techniques identified can contribute to the development of a framework for materiality level determination for non-financial information. Regulators who are concerned with ensuring sufficient information to improve investor decision-making will be interested in the techniques IR preparers use to determine materiality levels for non-financial information, to improve their regulations and frameworks. This study contributes to the literature regarding challenges with materiality level determination in integrated reports and techniques used by IR preparers. The application of an institutional isomorphism lens led to greater insight and understanding of IR preparers’ challenges and techniques in materiality determination. This paper makes a number of significant contributions to the IR literature. First, it identifies the usefulness of material information for decision-making and the influence stakeholders have on the materiality determination of non-financial information, which have not been mentioned in the prior literature. Second, the literature is silent on how organisations relate materiality to value creation for the purposes of determining the materiality content of an integrated report; this research provides empirical evidence of the use of value creation criteria in materiality determination. Third, the study highlights that materiality is a combination of efforts that involves everyone in an organisation. Further, the strategy should be linked to IR and preparers have indicated that integrated thinking is required for materiality determination.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-28
      DOI: 10.1108/MEDAR-11-2020-1107
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • What do stakeholders in the construction industry look for in
           non-financial disclosure and what do they get'

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      Authors: Dominika Hadro , Justyna Fijałkowska , Karolina Daszyńska-Żygadło , Ilze Zumente , Svetlana Mjakuškina
      Abstract: This study aims to verify whether non-financial disclosure in the construction industry (CI) responds to stakeholders’ information needs and explores the most frequent topics disclosed in terms of the environmental, social and governance (ESG) pillars. This study uses a bag-of-words method and latent Dirichlet allocation to match stakeholders’ expectations with information disclosed by companies. This paper assesses the publicly available non-financial disclosure of the 46 European CI companies covered by the Refinitiv database with ESG scores. This study provides two main findings. First, it shows the mismatch between stakeholders’ information needs and what they get in non-financial reporting. Despite non-financial information in CI disclosure, the information disclosed by many CI companies does not meet their users’ information needs. CI companies commonly focus on their sustainable products and health policy while omitting other topics of interest – the circular economy, unethical business behaviour, migrant policy and human trafficking. Second, this study indicates the defects of simple disclosure analysis based on keywords and highlights the importance of context in information analysis. The proposed novel approach to text analysis offers several practical applications. It is a more effective tool for evaluating companies’ sustainability performance. It may be especially important to ESG rating providers. Additionally, the results may be of interest to companies wishing to improve their communication, and, in particular, to regulators and standard setters in two matters. The first is the need for more pressure to increase awareness among issuers to shift from disclosing large amounts of non-financial information to disclosing good quality non-financial information, which would be appropriate for meeting stakeholders’ expectations. The second is the necessity for deepening issuers’ understanding of the diverse stakeholders’ information needs, considering the substantial differences among industries and improving communication to meet them. This study introduces text analysis that, apart from keywords, considers the context of these keywords’ appearances in a report’s narration. It allows a significantly improved understanding of the information disclosed and a more stable grounding for reasoning, leading to better and informed decisions. Moreover, this study verifies how the information disclosed matches stakeholders’ needs. Finally, it enriches the literature on sectoral analysis concerning non-financial disclosure.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-26
      DOI: 10.1108/MEDAR-11-2020-1093
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The role of digital transformation in enabling continuous accounting and
           the effects on intellectual capital: the case of Oracle

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      Authors: Maria Federica Izzo , Marco Fasan , Riccardo Tiscini
      Abstract: This paper aims to explore the role played by digital transformation (DT) in enabling continuous accounting (CA) and its impacts on intellectual capital (IC). In so doing, the paper provides momentum for the emerging trends of the DT movement in the field of accounting. The analysis relies on the exploratory case study of Oracle, a multinational computer technology corporation that is constantly involved in DT processes. Data sources include semi-structured interviews and internal documentation. The paper shows how CA is facilitated by DT, a process that allows collaborative relationships, learning and transparency. These activities contribute to IC empowerment through three main mechanisms: empowerment through dialogue, empowerment through learning and increased reliability of data. The findings have practical implications by showing how DT applied to accounting provides a highly transparent way to collect, manage and analyze financial data, freeing time for high-value activities, optimizing decision-making processes and increasing IC. DT and digital technologies have created new opportunities for companies – worldwide – to elaborate and communicate accounting information. The originality of this research derives from connecting DT to the relatively innovative topic of CA.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-25
      DOI: 10.1108/MEDAR-02-2021-1212
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Audit committee oversight of external audit: an examination of structural
           power and behavioural tactics

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      Authors: Noor Adwa Sulaiman , Fatimah Mat Yasin
      Abstract: This study aims to examine the structural power wielded by the audit committee (AC) and the various bases of its power, whilst also exploring the behavioural tactics used by the AC to leverage its power in the oversight of the external audit. Empirical evidence was drawn from semi-structured interviews with external auditors and AC members in Malaysia. The AC’s structural power is derived from its formal and network position in the organisation. The AC possesses three forms of organisational-based power (legitimate, coercive and informational) resultant from its formal position, and these combine with the AC’s personal power (will and expert). The AC uses its personal power base to develop trusting relationships and to promote the exchange of information with other key corporate governance actors in the network position. Furthermore, the AC applies at least four behavioural tactics (assertiveness, ingratiation, rationality and coalition formation) to exercise its bases of power. This study attempts to describe the AC’s structural sources of power, its organisational and personal power bases, and the behavioural tactics it uses when exerting its power.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-25
      DOI: 10.1108/MEDAR-12-2019-0630
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Shareholder use of CSR reports: an accountability perspective

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      Authors: Veronica Smith , James Lau , John Dumay
      Abstract: This paper aims to investigate the extent of shareholder engagement and satisfaction with corporate social responsibility (CSR) reports of a Chinese-owned company compared to an Australian-owned company in the Australian mining industry. The study is motivated by the speed, extent and nature of Chinese foreign direct investment in Australia, the resulting negative social attitudes and the impact on the perceptions of a report’s credibility. The authors conducted a survey of 202 minority shareholders of two Australian mining companies, one has a Chinese majority shareholder and the other an Australian majority shareholder. The responses highlight users’ comparative perceptions of corporate motivations for reporting, the level of perceived shareholder power over reporting decisions and the resulting propensity to read CSR reports. The authors found that, contrary to decision-usefulness theory, which posits that users will read CSR reports only if they are deemed to be reliable, that perceptions of poor credibility and poor CSR performance actually result in a higher propensity to read the reports. This suggests that the minority shareholders of the Chinese acquired firm are using reports to monitor the level of corporate accountability. The findings have implications for firms operating in politically or socially sensitive industries that are likely to use CSR reporting as a legitimising strategy. The paper also provides guidance to regulators in the provision of information, which is meaningful to minority shareholders.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-23
      DOI: 10.1108/MEDAR-02-2020-0769
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Linking sustainability andnon-financial reporting directive 2014/95/EU
           throughisomorphism lens

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      Authors: Cristina Alexandrina Stefanescu
      Abstract: This study aims to explore the connection between sustainability and non-financial reporting (NFR) settled by the Directive 2014/95/EU, aiming to shed light on how institutional isomorphic pressures (mimetic, coercive and normative) are expressed in terms of sustainability issues influenced its enactment at the European Union (EU) level. Empirically, the contribution of this study relied on the complexity of the research design that uses the same statistical methods and techniques (e.g. principal component analysis, correlation and regression analysis) within two stages of analysis (main and robustness) to increase the trustworthy of the results reached. The results reveal that countries with sound sustainable management pillars (economic, environmental and social) and development goals promoting economic prosperity, environmental protection and societal well-being (prosperity, planet and people) are more likely to bring active support in enhancing NFR by regulating its framework. The empirical nature of the research left space for some limitations, as long as it relied on country-level data, thus being quite challenging to gauge the commitment to harmonization with the new Directive. Moreover, the model’s explanatory power remains questionable, as the explanatory variables might be measured differently in the model specifications. The study addresses academia/regulators/practitioners by ascertaining their potential to better understand/promote/apply the new Directive. Thus, each could support the steps toward standardized sustainability reporting by keeping up to date with the latest improvements/addressing cross-country inconsistencies in the transposition/managing future implementation in a more effective and accountable way. This paper approaches the harmonization process of NFR across Europe in connection with sustainability issues, grounding on institutional isomorphism. Thus, it fills an existing literature gap, as research studies approaching the new Directive from the institutional theory’s perspective are still scarce and focused on particular countries.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-23
      DOI: 10.1108/MEDAR-09-2020-1019
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • CSR assurance practice and financial distress likelihood. Evidence from
           India

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      Authors: Kofi Mintah Oware , Kingsley Appiah
      Abstract: The purpose of this study is to examine the effect of corporate social responsibility assurance practice (CSRAP) on the financial distress likelihood of listed firms in India. It uses the signalling theory to interpret the relationship among the variables of the study. The study used the Indian stock market as the testing grounds and applied probit and panel probit regression to examine the data set with 800 firm-year observations from 2010 to 2019. The study’s first findings show that firms with an assurance service have a negative correlation and are less likely to stay in financial distress situations for an extended period. However, corporate social responsibility (CSR) assurance has a positive but weak correlation with insignificance with financial distress likelihood of firms in India. The authors also find that the engagement of CSR assurance and level of assurance (limited assurance) does not cause a change in a firm financially distress likelihood of firms in India. However, as assurance service providers, auditing firms are more likely to reduce a firm’s likelihood of financial distress. Finally, the study shows that CSRAP (CSR assurance, assurance service providers and level of assurance) does not moderate the association between CSR expenditure and financial distress likelihood of listed firms in India. The study findings are the first to examine the level of assurance and financial distress of firms according to the authors’ knowledge. This study also adds new knowledge to the factors that cause or reduces the financial distress of listed firms, including CSRAPs.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-23
      DOI: 10.1108/MEDAR-10-2020-1055
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Disaster management and emerging technologies: a performance-based
           perspective

         This is an Open Access Article Open Access Article

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      Authors: Carlo Vermiglio , Guido Noto , Manuel Pedro Rodríguez Bolívar , Vincenzo Zarone
      Abstract: This paper aims to analyse how emerging technologies (ETs) impact on improving performance in disaster management (DM) processes and, concretely, their impact on the performance according to the different phases of the DM cycle (preparedness, response, recovery and mitigation). The methodology is based on a systematic review of the literature. Scopus, ProQuest, EBSCO and Web of Science were used as data sources, and an initial sample of 373 scientific articles was collected. After abstracts and full texts were read and refinements to the search were made, a final corpus of 69 publications was analysed using VOSviewer software for text mining and cluster visualisation. The results highlight how ETs foster the preparedness and resilience of specific systems when dealing with different phases of the DM cycle. Simulation and disaster risk reduction are the fields of major relevance in the application of ETs to DM. This paper contributes to the literature by adding the lenses of performance measurement, management and accountability in analysing the impact of ETs on DM. It thus represents a starting point for scholars to develop future research on a rapidly and continuously developing topic.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-19
      DOI: 10.1108/MEDAR-02-2021-1206
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Whistleblowing intentions among external auditors: an application of the
           moderated multicomponent model of the theory of planned behaviour

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      Authors: Tuan Mastiniwati Tuan Mansor , Akmalia M. Ariff , Hafiza Aishah Hashim , Abdul Hafaz Ngah
      Abstract: This study aims to investigate external auditors’ whistleblowing intentions by applying the moderated multicomponent of the theory of planned behaviour (TPB), incorporating perceived organizational support (POS) and provides insights on the moderating effect of moral norm on the relationship between attitude and internal whistleblowing intentions. Data was gathered using a questionnaire survey involving 274 external auditors in Malaysia and the data was analyzed using SmartPLS 3.2.9. The results show that there are positive relationships between perceived behavioural control and POS with whistleblowing intentions, but there is no evidence to support the hypotheses related to attitude and subjective norm. The findings provide partial support for the capability of the multicomponent model of TPB in examining whistleblowing intentions. The results further show that moral norm moderates the relationship between attitude and whistleblowing intentions. The findings can assist accounting professional bodies and policy makers in formulating strategies to enhance the practice and, consequently, the benefits of whistleblowing. The findings are also valuable to managers of audit firms in strategizing for ways to enhance whistleblowing intentions to encourage the audit staffs to report any wrongdoings done by their colleagues. This study provides the perspective of whistleblowing intentions of external auditors in the institutional setting of an emerging market, Malaysia. Further, this study extends the TPB model in whistleblowing studies by applying a higher-order construct, incorporating POS as an additional determinant of whistleblowing intentions and considering moral norm as moderating the relationship between attitude and whistleblowing intentions.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-11
      DOI: 10.1108/MEDAR-07-2020-0948
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • From little seeds to a big tree: a far-reaching assessment of the
           integrated reporting stream

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      Authors: Ana Isabel Lopes , Daniela Penela
      Abstract: The purpose of this paper is to provide the first assessment of the integrated reporting (IR) stream using a broad sample of publications separated into research scopes (accounting and non-core accounting journals) and using a longitudinal perspective. This study proposes to identify its main contributors, evidencing both individual and collaborative work. Bibliometric tools supported by a milestone approach to IR history were used to address the first two research questions on the growth of this stream per scope. Density maps on keyword co-occurrence provided insights into the third question aimed at assessing differences in the scopes’ research topics. The number of publications, citation-based metrics and network analysis based on co-authorship allowed us to answer the last question regarding the top contributors. The results endorse the acknowledged interest in this stream, exposing its incredible growth, which already amounts to over 1,000 different scholars, 200 distinguished journals and 7,600 citations across 540 peer-reviewed publications. With the accounting scope leading on citation frequency and the non-core accounting having more publications, an almost picture-perfect circle in a pooled density map supports the field’s advocated interdisciplinarity with its distinctive contributions. Finally, the cluster analysis revealed that 140 publications belong exclusively to 10 research clusters that contribute to more than half of the total citation count. This rich analysis combines visualizing techniques with in-depth bibliometrics to provide the first far-reaching collation of publications on IR to offer a complementary view on this dynamic interdisciplinary stream.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-04
      DOI: 10.1108/MEDAR-01-2021-1174
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Employee domain and non-financial performance: the moderating effect of
           digital reputation

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      Authors: Rosamartina Schena , Angeloantonio Russo , Jonatan Pinkse
      Abstract: The purpose of this study is to extend existing knowledge in corporate sustainability (CS) and digitalization literature. Innovation strategies (namely, exploration, exploitation and ambidexterity) are used to identify an innovative employee domain that influences a firm’s non-financial performance. Digital reputation – i.e. the set of stakeholders’ sentiments toward the company’s digital footprint – is observed as a moderating variable able to explain where and when the innovative employee domain impacts the non-financial performance. Using a sample of firms listed on the Fortune 500 list in the period 2015–2018, this study pursued both a qualitative and quantitative analysis. First, content analysis is carried out through a non-financial report-based operational model to operationalize the innovative domain. Second, a regression and moderator analysis are conducted on optimized panel data. Consistent with previous literature, the results show that the employee domain positively impacts a firm’s non-financial performance. It was found that digital reputation operates as a moderator in this relationship. This study contributes to the theoretical debate on CS by introducing a new concept relevant to an employee domain of exploration, exploitation and ambidexterity. It enriches the innovation debate by providing a new perspective on how firms can balance exploratory and exploitative innovation strategies in the employee domain to enhance non-financial performance. Finally, it provides a novel definition of digital reputation.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-04
      DOI: 10.1108/MEDAR-02-2021-1205
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Climate change disclosure ratings: the ideological play

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      Authors: Binh Bui , Mohamed Chelli , Muhammad Nurul Houqe
      Abstract: The purpose of this paper is to investigate the impact of climate change rating organisations on rated firms, to understand whether disclosure ratings can facilitate enhanced emissions performance. This study uses 1,848 cross-country firm-year observations from organisations that responded to the carbon disclosure project (the rater) between 2011 and 2015 and, hence, were rated for their disclosure. Drawing on the ideology of numbers, this paper hypothesises that the disciplinary power of ratings will result in rated firms improving their subsequent disclosure scores. Following the environmentally-friendly ideology, this study hypothesises that poorly-rated firms will adopt decoupling behaviour, by improving their climate change disclosure scores without reducing the intensity of their greenhouse gas (GHG) emissions. The results indicate that climate change disclosure ratings pressure poorly-rated firms to improve their disclosure scores in subsequent years, yet these firms are not inclined to lower their GHG emissions. Further, the direct publication of firms’ GHG emissions intensity can exert some restricted disciplinary impact on rated firms, as the more polluting firms tend to improve their subsequent climate change performance compared with those having lower emissions levels. This paper argues that the ability of corporate sustainability rating schemes to influence corporate behaviour comprehensively is limited and should be used with caution. This paper sheds new light on the ideological dynamics at play between the rater and the rated, while highlighting new aspects of the power-rating nexus in the climate change arena.
      Citation: Meditari Accountancy Research
      PubDate: 2021-08-04
      DOI: 10.1108/MEDAR-09-2020-1021
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Board characteristics and the choice between sustainability and integrated
           reporting: a European analysis

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      Authors: Laura Girella , Stefano Zambon , Paola Rossi
      Abstract: The role that the board can have in influencing the adoption of non-financial reporting (NFR) by companies is a topic that has raised interest in the recent literature. However, very few have so far been said on the logic that underpins the selection by corporate boards of a particular model (sustainability and/or integrated). This study aims to examine if and to what extent board characteristics may influence the choice of companies to voluntarily publish a sustainability report, an integrated report or both of them, and if moderating variables, relating to incentives towards corporate transparency, may have an influence. Both of these types of reporting tools are in fact aimed at improving company disclosure towards sustainable development. Through a multi-nomial regression analysis, this study tests the assumptions in a sample of companies listed on the Eurostoxx600 that adopt integrated or sustainability reporting or both of them for the period 2015–2018 for a total of 2,103 firm-years observations. The results reveal that sustainability reporting is associated with board independence only, whilst the adoption of integrated reporting is influenced by board size and board independence. The same two variables influence also those companies that jointly adopt both sustainability and an integrated report. This confirms that integrated reporting requires more competencies and monitoring to be adopted. Furthermore, the results provide evidence that information asymmetry and financial constraints influence the decision of companies to publish the integrated report, sustainability report or both, whilst growth opportunities do not. Hence, moderating variables can have a role in explaining this association, and especially those that are related to the firm’s incentives related to the provision of financial capital by investors. This study contributes to the literature in three ways. First, it proposes an incremental analysis of the relationship between board characteristics and voluntary disclosure of integrated reporting, considering the effects of moderating variables on this association. Second, the above relationship is examined in a comparative way vis-à-vis the adoption of sustainability reporting. Third, it demonstrates that the analysis of these reporting tools can benefit from an understanding that relies on both agency and stakeholder theories, that have to be conceived somehow complementary. In terms of limitations, this study is exclusively focussed on larger European listed firms, and therefore, the findings may not be valid for small and medium firms and for companies operating outside Europe. This study provides useful insights for managers and policymakers to better understand which are the characteristics of the board composition that can best encourage a company to pursue a reporting strategy based on sustainable development. This results to be particularly relevant and timely in the European context if the authors take into consideration the developments of the European Parliament and Commission towards the launch of a new legislative proposal on sustainable corporate governance in 2021. The study contributes to the existing literature in two ways. First, it offers a unique perspective on the direct and indirect effects of board characteristics on the adoption of integrated and/or sustainability reports by examining it in a comparative perspective. Second, it further demonstrates that the analysis of NFR and especially integrated reporting might benefit from the adoption of multiple conceptual lenses, in this case, agency and stakeholder theories.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-30
      DOI: 10.1108/MEDAR-11-2020-1111
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • International evidence of changing assurance practices for carbon
           emissions disclosures

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      Authors: Rina Datt , Pranil Prasad , Connie Vitale , Krishan Prasad
      Abstract: The market for the assurance of carbon emissions disclosures is showing intensive growth. However, due to the largely voluntary nature of carbon reporting and assurance, there are currently no clear standards or guidelines and little is known about it. The purpose of this paper is to examine the reporting and assurance practices for carbon emissions disclosures. This study provides evidence on this market, with a sample that includes 13,419 firm-year observations across 58 countries between 2010 and 2017 from the Carbon Disclosure Project (CDP) database. The results show that the demand for carbon emissions reporting comes mainly from North America, the UK and Japan. Recently, markets such as South Africa have also shown increased demand for carbon reporting. The data also shows that more firms are seeking assurance for their carbon emissions reports. Legitimacy, stakeholder and institutional theories are used to explain the findings of this study. The results have important implications for firms that produce carbon emissions disclosures, assurance service providers, legislators, regulators and the users of the reports and there should be more specific disclosure guidelines for level and scope of reporting. Amongst the firms that do provide assurance on their carbon emissions reports, a majority do so using specialist assurance providers, with only limited assurance being provided. The results further show that a myriad of assurance frameworks is being used to assure the carbon emissions disclosures.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-26
      DOI: 10.1108/MEDAR-09-2020-1005
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • An insight into the associations between environmental activity
           management, environmental management systems and performance

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      Authors: Kevin Baird , Sophia Xia Su , Amy Tung
      Abstract: This study uses the survey method to examine the associations between the three levels of environmental activity management (EAM) (environmental activity analysis, environmental activity cost analysis and environmental activity based costing) with environmental management systems (EMSs), and assesses the effectiveness of these EAM practices and EMSs by examining their associations with both environmental and financial performance. While this study is unable to assert causality, the findings provide an important insight into the need to integrate EMSs and EMA practices, specifically EAM. In addition, the findings provide an initial insight into the relationship between the extent of use of these practices and organisational performance (environmental and financial). Data was collected using a mail survey of 659 manufacturing organisations identified from the Onesource on-line database. A total of 140 completed questionnaires were returned (21.2%), 72 (10.9%) following the initial mail-out, and a further 68 (10.3%) from the follow-up mail-out. In respect to the association between EAM and EMSs, this study provides empirical evidence to support the integration of EAM practices with the use of EMSs, suggesting the relationships between the two is bi-directional. In respect to the association between EMSs with environmental and financial performance, while the extent of use of EMSs is not associated with financial performance, there is strong evidence supporting the positive association between EMSs with environmental performance. Further, while there are minimal results regarding the direct association between the three EAM practices and environmental performance, a cyclical relationship between EAM and financial performance is identified. This study contributes to the literature by providing an empirical insight into the relationship between the extent of adoption of EMSs and the use of EMA. The focus on the relationship between EMSs and EMA is pertinent owing to the sparse research on EMA practices and the “importance of using such [EAM] practices and integrating them within the organisation rather than using them on an ad hoc basis” (Phan et al., 2018, p. 657). This study also contributes to the literature by examining the effectiveness of both practices in respect to their association with environmental and financial performance.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-22
      DOI: 10.1108/MEDAR-02-2020-0714
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Political connection, family ownership and corporate risk disclosure:
           empirical evidence from Jordan

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      Authors: Malek Hamed Alshirah , Ahmad Farhan Alshira’h , Abdalwali Lutfi
      Abstract: This study aims to empirically examine whether the political connection is related to risk disclosure practices. The study also seeks to contribute to the existent risk disclosure literature by investigating the moderator effect of family ownership on this relationship. The content analysis approach was used to collect data and determine the level of risk disclosure over the non-financial Jordanian firms listed on 1Amman Stock Exchange. The sample of this study contains 376 annual reports over four years from 2014 to 2017. It used the random effect regressions to examine the hypothesis of the study. The results show that politically connected companies disclose less risk information than the unconnected ones in Jordan. The results also refer that family ownership contributes in mitigating the negative effect of the political connection on the level of corporate risk. The results have implications for regulatory institutions such as the Jordan Securities Commission to take the negative effect of political connection in their consideration and impose further regulations to monitor this board’s attribute and control politicians’ domination on the board decisions. The current study also contributes to the body of literature by investigating the effects of the political connections on the level of risk disclosure in the financial reports. To the best of the authors’ knowledge, the current study is the first to examine the effect of the political connection on the risk disclosure practices. Moreover, the study is among the first studies that examine the moderating role of family ownership on such relationship.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-22
      DOI: 10.1108/MEDAR-04-2020-0868
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Fair value accounting from the users’ perspective: an experiment on how
           financial analysts rely on fair value estimates in their decisions

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      Authors: Alessandra Allini , Rosanna Spanò , Ning Du , Joshua Ronen
      Abstract: The current paper aims to understand whether fair value accounting (FVA) affects analysts’ loan approval decisions and default risk judgments. This study focusses on three issues: unrealized gain or loss resulting from FV measurement recognized in other comprehensive income (OCI), recognition of assets at FV or historical cost and the disclosure or non-disclosure of the FV of collateral assets. It uses an experiment carried out with a sample of 29 CFA analysts. The results show that all three issues have a significant effect on analysts’ judgment and decision-making in processing FV estimates. The paper extends knowledge on how financial analysts perceive FV estimates and disclosure and may help the accounting standard boards assess the challenges facing analysts when they apply professional judgments in interpreting FV measurements and disclosures. Moreover, it offers fresh views to the debate on the decision usefulness of FVA, particularly relevant in the post-implementation review of IFRS 13.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-22
      DOI: 10.1108/MEDAR-11-2020-1096
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Enablers and barriers to the involvement of accountants in integrated
           reporting

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      Authors: Mitali Panchal Arora , Sumit Lodhia , Gerard Stone
      Abstract: With the increasing adoption of integrated reporting and the subsequent interest of the accounting discipline in its development, this paper aims to examine the enablers and barriers to the involvement of accountants in integrated reporting. The paper adopts a case study approach by collecting interview data from six organisations that have adopted integrated reporting internationally. In the selected organisations, face-to-face and telephone interviews were conducted with professionals who are involved in the preparation of an integrated report. The interviewees in this study included key integrated report preparers including accountants, corporate reporting managers, sustainability managers and other report preparers. Institutional entrepreneurship provided the theoretical insights for this study. The study found that accountants’ expertise in corporate reporting and especially their knowledge of the assurance process was one of the major reasons why they were involved in integrated reporting. Accountants’ in-depth understanding of an organisation in addition to their general analytical and interpersonal skills were also found to be useful in preparing an integrated report. However, the voluntary nature of integrated reporting along with the lack of sufficient guidelines deterred accountants from being involved in integrated reporting. The study also found that accountants themselves did not see value in integrated reporting and found it challenging to convert numerical information to narratives, thus limiting their involvement in integrated reporting. Whilst prior studies have underlined accountants’ institutionalised practices, this study uncovers the strategies applied by accountants to maintain their institutionalised practices. The specific application of the institutional entrepreneurship concept identifies mechanisms and strategies through which accountants restrict their practices to narrow taken-for-granted roles. This study uncovers practical implications by highlighting the factors that limit the involvement of accountants within integrated reporting. One of the major implications identified relates to the training of accountants to apply their existing skills and expertise in non-financial reporting to contribute effectively to multi-disciplinary teams that contribute towards integrated reporting in organisations. This study also provides an impetus for the International Integrated Reporting Council to provide more guidance for preparing an integrated report. This is one of the initial studies that has explored the enablers and barriers to the involvement of accountants in integrated reporting through its focus on organisations that are already practising this form of reporting. The use of institutional entrepreneurship theory adds to the theoretical insights for exploring the involvement of the various actors in integrated reporting.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-22
      DOI: 10.1108/MEDAR-11-2020-1102
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Integrated reporting disclosure alignment levels in annual reports by
           listed firms in Vietnam and influencing factors

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      Authors: Huu Cuong Nguyen , Phan Minh Hoa Nguyen , Bich Hiep Tran , Thi Thien Nga Nguyen , Le Thanh Thuy Hoang , Thi Thu Hien Do
      Abstract: This paper aims to examine the levels of integrated reporting disclosure alignment in annual reports by listed firms in Vietnam and the factors influencing these disclosure levels. Drawing on a sample of 200 listed firms in Vietnam in 2017, the authors constructed a disclosure index based on the content of the International Integrated Reporting Committee (IIRC) Framework. Using this index, the study measures the extent to which Vietnamese listed firms’ annual reports include the content elements required by the integrated reporting (IR) Framework. The study performs ordinary least square regression to investigate the influencing factors. The study documents that, on average, Vietnamese listed firms disclose about 43% of the information required by the IIRC Framework. The disclosure levels are positively associated with manufacturing firms, board independence, foreign ownership, government ownership, audit quality and firm size. Integrated reports have been widely adopted in many countries, but it is still a new issue in Vietnam. This is the first paper providing some insights into the inclusion of the content elements required by the IR Framework by listed firms in Vietnam. It also contributes to the disclosure literature by providing empirical evidence on the factors influencing these disclosure levels. Deriving from the findings, the authors offer recommendations for policymakers on the issue of regulating and implementing IR in Vietnam.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-12
      DOI: 10.1108/MEDAR-02-2020-0710
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The impact of the EU Directive on non-financial information: Novel
           features of the Italian case

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      Authors: Rosa Lombardi , Antonietta Cosentino , Alessandro Sura , Michele Galeotti
      Abstract: This paper aims to examine the European Union (EU) 95/2014 Directive’s impact on large public companies. It chose Italy as a pivotal country that made non-financial information assurance mandatory, going beyond the EU Directive’s original requirements. Specifically, it investigates how the UE Directive fosters institutionalisation of the non-financial reporting (NFR) process in organisations. Two large public companies in Italy are used as case studies. Data are gathered from annual and integrated reports, institutional websites and semi-structured interviews with the managers and employees involved in different organisational positions. The authors adopted the neo-institutional theory as a theoretical lens to identify the organisations’ response to the (external) institutional pressures influencing corporate reporting practices. The findings demonstrate how the EU Directive fostered changes to large public companies’ reporting practices and external pressures contributed to influencing changes to internal organisational practices in terms of new internal processes, procedures and structures. These changes are motivated by the companies’ need to guarantee reliable information to be produced in their non-financial reports. This paper helps academics and policymakers to advance NFR practices by understanding regulatory factors that can foster changes in the internal reporting process and responsibility within organisations. The findings provide some empirical insights to foster reflections on the EU Directive’s effectiveness in changing reporting practices. This paper contributes to enriching the literature on institutional theory in shaping mandatory non-financial disclosure by identifying the institutional pressures influencing the effectiveness of regulations to change NFR practices.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-12
      DOI: 10.1108/MEDAR-06-2019-0507
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Managing material value creation matters in integrated reporting

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      Authors: Natasja Steenkamp , Roslyn Roberts
      Abstract: This paper aims to explore how advanced integrated report preparers internalise and operationalise material value creation information to manage the generation of such information for the integrated report. The paper adopts a qualitative approach using in-depth semi-structured interviews to examine how information about material value creation matters in six South African organisations are managed. The findings will be useful to integrated reporting adopters as to how they might implement appropriate processes and systems to determine, communicate, collect and process information about matters that substantively affect their value creation. The paper contributes to the body of knowledge by providing insight on how material value creation matters are determined, communicated internally and information about such matters generated.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-12
      DOI: 10.1108/MEDAR-11-2020-1095
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Towards a conceptual framework for non-financial reporting inclusive of
           pandemic and climate risk reporting

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      Authors: Subhash Abhayawansa , Carol Adams
      Abstract: This paper aims to evaluate non-financial reporting (NFR) frameworks insofar as risk reporting is concerned. This is facilitated through analysis of the adequacy of climate- and pandemic-related risk reporting in three industries that are both significantly impacted by the COVID-19 pandemic and are at risk from climate change. The pervasiveness of pandemic and climate-change risks have been highlighted in 2020, the hottest year on record and the year the COVID-19 pandemic struck. Stakeholders might reasonably expect reporting on these risks to have prepared them for the consequences. The current debate on the “complexity” of sustainability and NFR frameworks/standards is critically analysed in light of the COVID-19 pandemic and calls to “build back better”. Context is provided through analysis of risk reporting by the ten largest airlines and the five largest companies in each of the hotel and cruise industries. Risk reporting on two significant issues, pandemics and climate change, is woefully inadequate. While very little consideration has been given to pandemic risks, disclosures on climate-related risks focus predominantly on “risks” of increased regulation rather than physical risks, indicating a short-term focus. The disclosures are dispersed across different corporate reporting media and fail to appreciate the long-term consequences or offer solutions. Mindful that a conceptual framework for NFR must address this, the authors propose a new definition of materiality and recommend that sustainable development risks and opportunities be placed at the core of a future framework for connected/integrated reporting. For sustainable development risks to be perceived as “real” by managers, further research is needed to determine the nature and extent of key sustainable development risks and the most effective mitigation strategies. This paper highlights the importance of recognising the complexity of the issues facing organisations, society and the planet and addressing them by encouraging robust consideration of the interdependencies in evolving approaches to corporate reporting. This study contributes to the current debate on the future of corporate reporting in light of two significant interconnected crises that threaten business and society – the pandemic and climate change. It provides evidence to support a long-term oriented and holistic approach to risk management and reporting.
      Citation: Meditari Accountancy Research
      PubDate: 2021-07-12
      DOI: 10.1108/MEDAR-11-2020-1097
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • International financial reporting standards for small and medium-sized
           entities: a new institutional sociology perspective

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      Authors: Nisansala Wijekoon , Grant Samkin , Umesh Sharma
      Abstract: This paper aims to extend the literature by examining the need for International Financial Reporting Standards (IFRS) for Sri Lankan small and medium entities (SMEs) and investigating the institutional pressures that drove the adoption of the IFRS for SMEs in a developing country, Sri Lanka. The theoretical framework adopted in this study draws on insights from new institutional sociology theory. An interview-based qualitative research was conducted with accountants and owners of SMEs, representatives from government agencies and the accounting standards-setting authority of Sri Lanka. The emphasis on the need for international accounting standards for SMEs due to international structures and activities is not a priority for Sri Lankan SMEs. Sri Lankan SME owners do not receive requests to provide internationally comparable financial statements from their trade partners and international activities such as foreign exports, borrowings and ownerships are irrelevant business activities for them. Hence, findings reveal that the decision to adopt the IFRS for SMEs was in response to institutional pressures rather than alleged benefits of internationally comparable financial information. It appears from the results that the influence of local users’ needs and the government interference on the development of accounting standards does not exist in Sri Lanka. The research is limited to a single country. The data were collected from SMEs in Sri Lanka, as intended by the research boundary.[AQ1] The study has implications for policy makers, and standard setters charged with developing and implementing an appropriate financial reporting framework for SMEs. The extant literature on IFRS for SMEs is sparse and mostly conducted through questionnaire surveys with a single user group of SME financial information.
      Citation: Meditari Accountancy Research
      PubDate: 2021-06-28
      DOI: 10.1108/MEDAR-06-2020-0929
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Does deal size moderate the effects of board faultlines' Evidence from
           acquisitions

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      Authors: Daniel Tidbury , Steven F. Cahan , Li Chen
      Abstract: Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines. This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis. Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes. This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics. The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions. The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.
      Citation: Meditari Accountancy Research
      PubDate: 2021-06-25
      DOI: 10.1108/MEDAR-06-2020-0919
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Is voluntary International Integrated Reporting Framework adoption a step
           on the sustainability road and does adoption matter to capital
           markets'

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      Authors: Pei-Chi Kelly Hsiao , Charl de Villiers , Tom Scott
      Abstract: This paper aims to examine the type of firms that voluntarily adopt the International Integrated Reporting Framework (IIRF) and how markets respond to voluntary IIRF adherence. Analysis of a matched global sample of listed firms that voluntarily adopt the IIRF (IIRF firms) and those that do not (non-IIRF firms). The samples range from 188 to 436 observations as alternative research designs, different matched samples and regression specifications, and several sensitivity analyses were conducted. In markets where integrated reporting (IR) is not mainstream, voluntary IIRF adoption is more likely for firms with established sustainability practices. Such findings suggest that the IIRF is an incremental innovation for sustainability rather than an innovation that radically changes management and reporting practices. In Japan, where IR is mainstream, results show no observable differences between IIRF firms and non-IIRF firms. Consistent with the determinants results, this paper finds no evidence of associations between voluntary IIRF adoption and the information environment, the cost of equity or firm value. However, the additional analysis provides preliminary evidence suggesting capital market effects may differ for IIRF firms with higher sustainability or market performance. This study offers useful insights into the current global debate on whether there is value in adopting the IIRF. This study adds to the limited body of research on the determinants and consequences of voluntary IIRF adoption, offering insights for regulators, practitioners and proponents of IR. This study is the first to provide quantitative evidence of the influence sustainability practices have on voluntary IIRF adoption. Further, the results add to the current global debate on whether there is value in adopting the IIRF. This paper finds that voluntary IIRF adoption has no clear and distinct influence on disclosure practices and capital markets, suggesting there are no additional benefits from prioritising the promotion or adoption of the IIRF over other disclosure forms. Unless there are advancements supporting the implementation of integrated thinking and information connectivity, the potential for the IIRF to improve information quality may be limited to encouraging more non-financial disclosure and transparency in countries where integrated disclosures are not trending.
      Citation: Meditari Accountancy Research
      PubDate: 2021-06-16
      DOI: 10.1108/MEDAR-08-2020-0978
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Social contagion and the institutionalisation of GRI-based sustainability
           reporting practices

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      Authors: Ameeta Jain , Muhammad Azizul Islam , Monica Keneley , Monika Kansal
      Abstract: This study aims to investigate the adoption and diffusion of Global Reporting Initiative (GRI)-based sustainability reporting practices within the global financial services sector. The approach draws on the sociological construct of social contagion theory (SCT) to explain the drivers of diffusion of GRI-based sustainability reporting. Based on a longitudinal study of GRI adoption over a period from 2000 to 2016, thematic content analysis of sustainability reports and media articles was used to refine information gathered that related to nature and spread of GRI-based sustainability practices within the global financial services sector. This study finds that the early adopters of GRI-based sustainability reporting and the accompanying media attention influenced the institutional diffusion of GRI-based reporting in the financial services sector. This growth was isomorphic as companies copied best practice models to reduce uncertainty and maintain legitimacy. This paper focuses on the institutional diffusion of sustainability reporting practices within the global financial sector. It explores the notion of social contagion as an institutional dynamic to understand the drivers for the adoption and diffusion of GRI-based sustainability reporting across national borders. In doing so, the study contributes to the accounting literature on diffusion of innovations in reporting practice, but also, more generally, to the field of diffusion of new ideas in organisations using the unique approach of SCT.
      Citation: Meditari Accountancy Research
      PubDate: 2021-06-10
      DOI: 10.1108/MEDAR-06-2020-0917
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Fostering performance management in healthcare: insights into the role of
           big data

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      Authors: Rosanna Spanò , Gianluca Ginesti
      Abstract: This study aims to understand how Big Data foster a greater acceptance of performance management systems (PMS) discourses in health care. This paper focusses on the case of head and neck cancer treatment and prevention and benefits from the analysis of archival sources and 19 interviews with physicians in the field. It uses the framework of the Middle Range theory (MRT) to understand whether, in the case of head and neck cancer, Big Data may favour the enactment of PMS discourses in health care, in turn benefiting from any improvement in PMS. This study setting unveils the changing pathway known as reorientation through boundary management. Medical professionals internalized and even mobilized PMS discourses, showing the premises for evolutionary changes in the future, when the current limitations will be dealt with. This paper offers new theoretical, practical and policymaking insights into how new technologies can foster positive PMS discourses among actors who usually resist them. This value also extends to different fields and contexts.
      Citation: Meditari Accountancy Research
      PubDate: 2021-06-03
      DOI: 10.1108/MEDAR-12-2020-1123
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Meditari Accountancy Research

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