Journal of Financial Reporting and Accounting最新文献

Purpose

This study aims to investigate how major big bath accounting practices and CEO turnover in Egypt relate to one another, as well as the first to use the CEO’s origin as a moderating factor.

Design/methodology/approach

This study uses 10-year longitudinal data from 2012 to 2021 and 290 firm-year observations from Egypt’s listed nonfinancial firms that witnessed CEO turnover to identify the significant big bath accounting practices in Egyptian businesses after the Egyptian revolution and the COVID-19 pandemic. Using fixed and random effect models, the authors investigate the impact of CEO turnover on company earnings during the first year of a newly appointed CEO as an indicator of big bath practices after controlling CEO gender, experience, firm size, leverage, return on assets, return on equity and industry. The hypotheses were investigated using static panel data.

Findings

The results show the presence of big bath practices in the Egyptian market. Furthermore, big bath accounting practices are positively correlated with CEO turnover. Moreover, the results indicate that big bath accounting practices are only endured when external CEOs are employed, rather than internal ones.

Research limitations/implications

The sample size and availability of data are the main research limitations. In addition, this study only examined CEO turnover and CEO origin as moderators in big bath accounting. Thus, future research may consider other CEO characteristics and political factors associated with big bath practices.

Practical implications

The findings from this study offer valuable insights to investors and regulators for effective decision-making and governance practices within the Egyptian capital market, while also contributing to a more informed approach to emerging markets on a global scale.

Originality/value

The findings contribute to the big-bath and CEO turnover and origin literature by showing a lower ceiling for earnings manipulation and using Egypt as a case study due to its unique institutional environment.

Purpose

This study aims at investigating the effect of corporate governance attributes on the Fraud disclosure of Takaful insurance companies in Saudi Arabia from 2014 to 2022.

Design/methodology/approach

This study uses a self-constructed disclosure index to quantify the level of fraud information using content analysis. The count regression (Poisson and negative binomial) models in panel data modeling are used to check the interdependence relationship between the Fraud disclosure and the corporate governance structure of 26 Takaful insurers.

Findings

The findings confirm the negative effect of ownership structure and the board size on the Fraud disclosure. However, the high proportion of independent board members, the audit board committee and the size of the risk board committee positively affect the extent of Fraud disclosure. Finally, this study provide evidence that large size of Shariah board is associated with a lower level of voluntary Fraud disclosure.

Research limitations/implications

Both economics-based theories and social exchange theory provide a better basis upon which to understand mechanisms by which board of directors in Takaful insurance provides external stakeholders with valuable information about corporate fraud.

Practical implications

It seems important to equip audit and Shariah board committee with the tools to give them an operational content that focus systematically on the “tone at the top” in investigating fraud, including disclosure and discipline.

Originality/value

Corporate governance is rapidly changing in Saudi Arabia and it is unclear whether adopting a corporate governance practices in financial institutions is appropriate for Islamic insurance companies.

Purpose

The main purpose of the current study was to develop a new research model in the hope of providing a further understanding of Digital Taxation Information Systems (DTIS) usage and its impact on tax compliance by investigating the mediating role of trust in e-government services (TIE) and the moderating role of awareness (AW) toward these systems.

Design/methodology/approach

A quantitative research method approach with Partial Least Squares-Structural Equation Modelling (PLS-SEM) was employed to analyze the data collected.

Findings

The results indicated that DTIS usage is influenced by perceived usefulness (PU), perceived ease of use (PEU), attitude (ATT), knowledge (KN), subjective norm (SN), AW and TIE. Contrary to what is expected, AW does not moderate the association between SN and DTIS usage. Eventually, the results also revealed that TIE has mediated the association between trust in government (TIG) and DTIS usage.

Originality/value

This study provides thought-provoking empirical pieces of evidence about understanding the situation of DTIS usage and its impact on tax compliance among academic professors in Jordan. Furthermore, the study outcomes and discussion presented will help the Jordanian government improve and comprehensively formulate strategies to increase the tax compliance procedure.

Purpose

The purpose of this study is to explore the impact of remote auditing on audit quality in non-Big 4 firms in Jordan. It also examines the role of auditors’ capabilities in this relationship, emphasizing their importance in implementing this technology effectively.

Design/methodology/approach

The perspectives of non-Big 4 audit firms regarding the influence of remote auditing on audit quality were gathered through the administration of a comprehensive questionnaire.

Findings

This study demonstrates that remote auditing can enhance audit quality in non-Big 4 firms. The strength of this effect is bolstered by the auditor’s technical knowledge, communication skills and professional skepticism.

Practical implications

Remote auditing is a promising alternative to traditional methods for non-Big 4 firms, with significant implications. Effective remote audits require technical knowledge, communication skills and professional skepticism. To succeed, firms must invest in training programs that equip auditors with the necessary remote auditing techniques.

Originality/value

This groundbreaking study investigates the effects of remote auditing on audit quality in Jordanian non-Big 4 firms and examines the influence of auditors’ capabilities. Results show that auditors’ capabilities enhance the positive impact of remote auditing on audit quality.

Purpose

This study aims to examine how auditors' perfectionism types and time budget pressure (TBP) influence fraud detection in Egypt.

Design/methodology/approach

We utilize a mixed-methods approach, combining questionnaires with an experimental case study in a within-subjects quasi-experimental design. Based on Almost Perfect Scale-Revised (APS-R), perfectionism traits were categorized using cluster analysis into adaptive, maladaptive, and non-perfectionism. Auditors from Egyptian firms performed fraud-related tasks with TBP manipulated.

Findings

Auditors' perfectionism types significantly influence fraud detection capabilities. Adaptive perfectionists demonstrated higher relevance in identifying fraud factors and excelled in accurately assessing fraud risks and audit procedures planning. Conversely, maladaptive perfectionists identified more but less relevant factors. TBP notably impacted maladaptive and non-perfectionist auditors' planning quality, unlike adaptive perfectionists, who showed resilience.

Practical implications

Findings provide insights to audit firms to bolster audit quality through team formations and task assignments, harnessing the strengths of adaptive and maladaptive perfectionists. Regulatory entities are positioned to integrate safeguards that recognize auditor capabilities and vulnerabilities, particularly under TBP. Considering psychological assessments in auditor selection and development assures alignment of traits with audit tasks, enhancing audit quality.

Originality/value

This study breaks new ground in the effects of auditor perfectionism on fraud detection, considering situational factors like TBP in emerging markets. Through a mixed-methods approach and cluster analysis, it reveals how different perfectionism traits influence audit effectiveness, offering insights not previously considered in auditing literature and suggesting practical applications for enhancing fraud detection in similar contexts.

Purpose

This study aims to investigate the drivers and challenges of integrated reporting (IR) adoption in the Hungarian SME context.

Design/methodology/approach

The study uses qualitative methods to conduct an in-depth analysis of small and medium enterprises’ (SMEs) drivers and challenges of IR adoption through semi-structured interviews. Further, the results of the interview are supported by content analysis.

Findings

The research highlighted the drivers for IR adoption, including growing the company’s customer base, attracting new investors, boosting competitiveness and increasing the company’s market value by improving the long-, medium- and short-term value creation. Nonetheless, the organizational transformation required to implement IR, a lack of qualified human resources, weak administrative control and poor documentation all serve as impediments to Hungarian SMEs implementing IR. Consequently, the current IR framework needs further clarification and simplification to be practical for SMEs. Integrated thinking, value creation, materiality and stakeholder engagement are the concepts that have been identified as being unclear or inapplicable for SMEs.

Practical implications

Furthermore, the practical implications for standard-setters, regulators and companies may help in the future in mitigating barriers, pushing companies to learn more about the benefits and risks of adopting IR.

Originality/value

The study is one of the few that examines the drivers and challenges of IR adoption in SMEs and responds to several academic requests for IR research on the reasons why SMEs do not participate in IR adoption. Also, the study compiles and evaluates the previous literature’s drivers and challenges for IR adoption. Furthermore, the practical implications for standard-setters, regulators and companies may help in the future in mitigating barriers, pushing companies to learn more about the benefits and risks of adopting IR.

Purpose

This study aims to investigate the level of online sustainability disclosure provided by international universities during the COVID-19 pandemic. The ultimate goal is to identify the factors influencing the amount of sustainability information these universities disclose through their websites.

Design/methodology/approach

This study conducts a manual content analysis to measure the extent to which a sample of 100 international universities disseminate information on sustainability and COVID-19 issues via the web. A multiple regression analysis is performed to test the research hypotheses.

Findings

The findings confirm that universities worldwide leverage the potential of websites to convey sustainability information beneficial for stakeholders and society. Moreover, while board gender diversity positively affects the level of online sustainability disclosure, board size exerts a negative effect. Furthermore, university size, internet visibility and ranking position have no significant impact on the amount of online sustainability information provided by international universities.

Originality/value

To the best of the authors’ knowledge, this is the first study that provides insight into the possible determinants of universities’ online sustainability reporting during COVID-19. This study extends prior research mainly conducted in single countries by providing data on the sustainability disclosure level of universities in different geographical regions. Empirical findings also support policymakers’ global action in the past decade to increase the role of women in leadership and governing positions.

Purpose

The purpose of this study is to analyze the effect of off-balance sheet activities on the credit risk of African banks.

Design/methodology/approach

The theory about the relationship between off-balance sheet activities and bank risk was used to construct a conceptual model of the effect of off-balance sheet on credit risk in an African context. The accounting approach is chosen by collecting accounting data extracted from the annual reports of 24 private and conventional African banks during the period 2010–2019. Both statistical and empirical studies are conducted. The statistical study aims to give a description of sample banks in terms of off-balance sheet activities and key financial indicators. The empirical study has the goal of exploring the correlations between, on the one hand, credit risk and, on the other hand, off-balance sheet ratio and control variables (bank- and country-specific variables). This study is based on dynamic panels using the two-step generalized method of moments technique to estimate regressions between credit risk and the explanatory variables.

Findings

The statistical study reveals that sample banks use moderately off-balance sheet activities; most of them use essentially guarantees and letters of credit, have satisfactory financial indicators and are slightly exposed to credit risk. The empirical results from the two-step generalized method of moments technique disclose that off-balance sheet activities have an intensifying effect on the credit risk of African banks. However, the increasing effect can be minimized when African banks use moderately off-balance sheet activities.

Practical implications

Using judiciously off-balance sheet activities does not exacerbate the exposure of African banks to credit risk. Therefore, managers of African banks are recommended to maintain a moderate level of off-balance sheet activities, especially guarantees and letters of credit.

Originality/value

The findings of this study eliminate the opacity about the effect of off-balance sheet activities on credit risk. Moreover, this study fulfills the huge gap in the related literature by completing the scarcity of recent studies, considering all items of the off-balance sheet, focusing on the African context, describing off-balance sheet activities and financial indicators of sample banks due to a statistical study and estimating regressions of dynamic panels between credit risk and both bank-specific and country-specific variables due to a two-step generalized method of moments technique.

Purpose

This paper aims to examine the effect of corporate social responsibility (CSR) on firm performance (FP) of companies listed on the Tunis Stock Exchange.

Design/methodology/approach

This paper reports on two empirical studies. The first was an exploratory qualitative study carried out on a sample of 30 Tunisian companies operating in different sectors. The second empirical study used a panel data regression analysis, to examine data from 46 companies listed on the Tunis Stock Exchange during the 2017 to 2021 period.

Findings

The results of the exploratory qualitative study pointed out the specificities of the Tunisian context as to the importance of CSR. The results highlighted also the importance of the 2018 CSR law in Tunisia, yet it drew attention to the non-implementation of its applying texts, meaning that CSR is not always enforced in the Tunisian context. Moreover, in this qualitative study, most companies confirmed that CSR is a key factor behind good governance practices. By studying the impact of CSR on various FP proxies, the results highlight that CSR has a positive and significant impact on FP measured by ROA as an accounting variable and stock returns as a market-measure variable. In addition, the authors confirm the moderating effect of innovation on the CSR and FP relationship. Indeed, innovation affects corporate FP differently. It hinders accounting-based FP while fostering the market-based one.

Practical implications

The study provides insights for managers into how CSR approaches can be used to maximize profits, improve its FP and reputation, while considering the corporate innovative capacities. CSR is a real performance lever for companies, a means of improving their economic, environmental and social efficiency. It enables companies to anticipate constraints and prevent risks, reduce certain operational costs, optimize resources, communicate a good image and stand out from the competition, gain easier access to innovation, strengthen their competitive edge, gain easier access to financing and strengthen their territorial and social roots.

Originality/value

The main contribution of this paper is the adoption of two empirical approaches. These two methods are complementary. The first is an exploratory qualitative approach aimed at better understanding the current state of CSR implementation by Tunisian companies. The second one is quantitative, a panel data regression analysis. Furthermore, the authors test the moderating effect of innovation on the studied link. To the best of the authors’ knowledge, this is the first paper that investigates the moderating effect of innovation on CSR FP in the Tunisian context. Finally, robustness tests were conducted to test the reliability of this study’s results.

Purpose

This examine the impact of environmental, social and governance (ESG) performance on financial reporting quality (FRQ) before and during COVID-19 in the Egyptian market.

Design/methodology/approach

This study uses quarterly data from 2017 to 2021 to draw conclusions, with a sample consisting of 486 firm-year observations for 27 Egyptian companies listed on the Standard and Poor’s/Egyptian Stock Exchange ESG index. This study uses both firms’ ESG scores and the Beneish Model, an earnings detection model, as proxies for FRQ. COVID-19 effects on ESG performance and FRQ were examined by using Pearson’s correlation coefficient and two-stage least squares.

Findings

COVID-19 has a significant impact on the link between ESG and FRQ. This implies that corporations with high ESG performance are less likely to manipulate earnings (having a low M-score) and thus provide high FRQ during the COVID-19 pandemic. Moreover, there is a significant positive relationship between firm size, leverage and M-Score, indicating that large firms typically present a high FRQ.

Research limitations/implications

The sample size and data availability are the main research limitations. Additionally, this study only considers the effects of firms’ ESG performance on FRQ during the COVID-19 pandemic. Thus, future research should consider other factors associated with investors’ corporate social responsibility (CSR).

Practical implications

This research has practical implications for market regulators seeking to establish a legislative framework and enhance guidance to mandate managers to provide ESG data and CSR reports appropriate for Egypt and other developing economies in times of crisis.

Social implications

Promoting the adoption of ESG practices in business, particularly during crises, has the potential to effectively provide high-quality and reliable financial reporting required for investment.

Originality/value

This study aspires to address notable deficiencies in the pertinent literature concerning the relationship between ESG performance and FRQ during COVID-19. To the best of the authors’ knowledge, little is known about how ESG performance changes in response to pandemics in emerging markets. To address this gap, this study examines the effects of COVID-19 on the relationship between ESG performance and FRQ in Egyptian-listed firms from 2017 to 2021.