Pub Date : 2022-12-14DOI: 10.1108/ijaim-08-2022-0170
M. Rahman, Ao Ziru
Purpose This study aims to examine whether clients’ degree of digitalization and audit firms’ expertise in information technology (IT) influence audit quality (AQ). Design/methodology/approach Data of Chinese A-share firms listed on the primary board of the Shanghai and Shenzhen stock exchanges from 2011 to 2019 are taken as the sample. All the data are obtained from the China Stock Market and Accounting Research. Clients’ digitalization is determined using the keywords “AI technology,” “blockchain,” “cloud computing,” “big data technology” and “digital technology.” Auditor firm’s digital expertise is determined by the proportion of higher IT expertise. As the proxy for AQ, this study uses audit fees, given that its quantum reflects the effort auditors expend that in turn affects the AQ. Findings A fixed-effect regression model shows that clients with high digitalization attain AQ. This study also finds a significant and positive coefficient of audit fees, indicating that AQ is high in the same situation if an audit firm’s IT is mature and developed. Furthermore, results confirm the moderating effect of clients’ digitalization and auditors’ expertise and on AQ. Auditors’ expertise in IT mitigates the audit risk and increase AQ. Originality/value Findings can enhance AQ and corporate governance literature by clarifying how external audits must evolve through digitalization and incorporating newly developed digital tools such as big data, analytics, artificial intelligence and robotic process automation. This study also provides important insights regarding how the development of new digital tools allow the audit profession to perform as a corporate governance mechanism.
{"title":"Clients’ digitalization, audit firms’ digital expertise, and audit quality: evidence from China","authors":"M. Rahman, Ao Ziru","doi":"10.1108/ijaim-08-2022-0170","DOIUrl":"https://doi.org/10.1108/ijaim-08-2022-0170","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine whether clients’ degree of digitalization and audit firms’ expertise in information technology (IT) influence audit quality (AQ).\u0000\u0000\u0000Design/methodology/approach\u0000Data of Chinese A-share firms listed on the primary board of the Shanghai and Shenzhen stock exchanges from 2011 to 2019 are taken as the sample. All the data are obtained from the China Stock Market and Accounting Research. Clients’ digitalization is determined using the keywords “AI technology,” “blockchain,” “cloud computing,” “big data technology” and “digital technology.” Auditor firm’s digital expertise is determined by the proportion of higher IT expertise. As the proxy for AQ, this study uses audit fees, given that its quantum reflects the effort auditors expend that in turn affects the AQ.\u0000\u0000\u0000Findings\u0000A fixed-effect regression model shows that clients with high digitalization attain AQ. This study also finds a significant and positive coefficient of audit fees, indicating that AQ is high in the same situation if an audit firm’s IT is mature and developed. Furthermore, results confirm the moderating effect of clients’ digitalization and auditors’ expertise and on AQ. Auditors’ expertise in IT mitigates the audit risk and increase AQ.\u0000\u0000\u0000Originality/value\u0000Findings can enhance AQ and corporate governance literature by clarifying how external audits must evolve through digitalization and incorporating newly developed digital tools such as big data, analytics, artificial intelligence and robotic process automation. This study also provides important insights regarding how the development of new digital tools allow the audit profession to perform as a corporate governance mechanism.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"208 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133151617","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-14DOI: 10.1108/ijaim-05-2022-0099
Mohammad Hendijani Zadeh, Karen Naaman, Najib Sahyoun
Purpose This study aims to examine whether a company’s corporate social responsibility (CSR) transparency (reflected in two separate dimensions of social transparency and environmental transparency) affects a company’s dependence on expensive trade credit (TC) financing. Design/methodology/approach The authors use a panel of S&P 500 index companies between 2012 and 2019 and ordinary least squares estimators. Transparency ratings represented by Bloomberg scores capture both the quantity and quality of verified CSR practice information. Findings CSR transparency (CSRT) is negatively associated with a firm’s dependence on expensive TC financing. This study’s results continue to hold after a battery of robustness tests like substitute proxies for TC, use of two-stage least squares regression, industry-adjusted dependent variable, generalized linear model and bootstrapping approach. This association is stronger among companies with higher information asymmetry (IASY) and lower quality regarding governance and financial reporting. Further investigation indicates that potential channels through which CSRT mitigates a company’s reliance on TC financing are the cost of debt (CoD) and stock liquidity. This study’s findings suggest that transparent companies have a lower CoD and higher stock liquidity. This helps these companies to be more financially flexible and eventually less dependent on expensive TC financing. Originality/value By combining two separate research lines of TC and CSR, this study adds to both works of literature as it is the first (to the best of the authors’ knowledge) to present evidence of the effect of CSRT proxied by Bloomberg scores on a company’s reliance on TC (a real economic decision and financial policy). Additionally, this study documents the moderating effects of financial reporting quality, IASY and corporate governance on the relationship between CSRT and TC financing. In conclusion, this study provides empirical evidence regarding the potential mechanisms of CoD and stock liquidity, through which CSRT influences a company’s reliance on TC financing.
{"title":"Corporate social responsibility transparency and trade credit financing","authors":"Mohammad Hendijani Zadeh, Karen Naaman, Najib Sahyoun","doi":"10.1108/ijaim-05-2022-0099","DOIUrl":"https://doi.org/10.1108/ijaim-05-2022-0099","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine whether a company’s corporate social responsibility (CSR) transparency (reflected in two separate dimensions of social transparency and environmental transparency) affects a company’s dependence on expensive trade credit (TC) financing.\u0000\u0000\u0000Design/methodology/approach\u0000The authors use a panel of S&P 500 index companies between 2012 and 2019 and ordinary least squares estimators. Transparency ratings represented by Bloomberg scores capture both the quantity and quality of verified CSR practice information.\u0000\u0000\u0000Findings\u0000CSR transparency (CSRT) is negatively associated with a firm’s dependence on expensive TC financing. This study’s results continue to hold after a battery of robustness tests like substitute proxies for TC, use of two-stage least squares regression, industry-adjusted dependent variable, generalized linear model and bootstrapping approach. This association is stronger among companies with higher information asymmetry (IASY) and lower quality regarding governance and financial reporting. Further investigation indicates that potential channels through which CSRT mitigates a company’s reliance on TC financing are the cost of debt (CoD) and stock liquidity. This study’s findings suggest that transparent companies have a lower CoD and higher stock liquidity. This helps these companies to be more financially flexible and eventually less dependent on expensive TC financing.\u0000\u0000\u0000Originality/value\u0000By combining two separate research lines of TC and CSR, this study adds to both works of literature as it is the first (to the best of the authors’ knowledge) to present evidence of the effect of CSRT proxied by Bloomberg scores on a company’s reliance on TC (a real economic decision and financial policy). Additionally, this study documents the moderating effects of financial reporting quality, IASY and corporate governance on the relationship between CSRT and TC financing. In conclusion, this study provides empirical evidence regarding the potential mechanisms of CoD and stock liquidity, through which CSRT influences a company’s reliance on TC financing.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127307652","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-14DOI: 10.1108/ijaim-05-2022-0108
Elsayed Abdelhak, K. Hussainey, Khaldoon Albitar
Purpose This study aims to examine the impact of internal corporate governance and audit quality on the level of COVID-19 disclosure in Egypt. Design/methodology/approach The authors use manual content analysis to measure levels of COVID-19 disclosure in the narrative sections of annual reports. The authors analyze all companies listed on the Egyptian Stock Exchange over 2020–2021. The authors use different regression models to test the research hypotheses. Findings The analysis adds to the literature in two crucial respects. First, it provides a measure for COVID-19 disclosure in Egypt. Second, it provides evidence that governance mechanisms (board diversity, audit committee [AC] independence), auditor type and audit opinion affect the level of COVID-19 disclosure. The higher level of COVID-19 disclosure is associated with firms with more female directors on the board, being audited by one of the big four audit firms and receiving standard clean audit opinion. While the inexistence of an AC and more executives on the AC negatively affect COVID-19 disclosure levels. Originality/value To the best of the authors’ knowledge, it is the only paper that examines COVID-19 disclosure in the Egyptian context. It is also the first paper that provides evidence on the impact of internal governance and audit quality on COVID-19 disclosure.
{"title":"Covid-19 disclosure: do internal corporate governance and audit quality matter?","authors":"Elsayed Abdelhak, K. Hussainey, Khaldoon Albitar","doi":"10.1108/ijaim-05-2022-0108","DOIUrl":"https://doi.org/10.1108/ijaim-05-2022-0108","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the impact of internal corporate governance and audit quality on the level of COVID-19 disclosure in Egypt.\u0000\u0000\u0000Design/methodology/approach\u0000The authors use manual content analysis to measure levels of COVID-19 disclosure in the narrative sections of annual reports. The authors analyze all companies listed on the Egyptian Stock Exchange over 2020–2021. The authors use different regression models to test the research hypotheses.\u0000\u0000\u0000Findings\u0000The analysis adds to the literature in two crucial respects. First, it provides a measure for COVID-19 disclosure in Egypt. Second, it provides evidence that governance mechanisms (board diversity, audit committee [AC] independence), auditor type and audit opinion affect the level of COVID-19 disclosure. The higher level of COVID-19 disclosure is associated with firms with more female directors on the board, being audited by one of the big four audit firms and receiving standard clean audit opinion. While the inexistence of an AC and more executives on the AC negatively affect COVID-19 disclosure levels.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, it is the only paper that examines COVID-19 disclosure in the Egyptian context. It is also the first paper that provides evidence on the impact of internal governance and audit quality on COVID-19 disclosure.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128071012","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-23DOI: 10.1108/ijaim-08-2022-0163
A. Naz, N. Sheikh
Purpose The purpose of this study is to investigate whether capital structure affects accruals and real earnings management (AEM and REM) of nonfinancial firms listed on Pakistan Stock Exchange (PSX). Moreover, to investigate whether institutional development (ID) moderates the relation between capital structure and earnings management (EM). Design/methodology/approach Data were taken from annual reports of nonfinancial firms listed on the PSX during 2012–2019. Data of 150 firms for a period of eight years were found completed with respect to the variables used in this study. The generalized moments of methods estimator is used to estimate the effects of explanatory variables on earning management. Furthermore, fixed and random effects methods were used to estimate the impact of capital structure on AEM and REM. Findings Results show that all three measures of capital structure (i.e. total debt ratio, long-term debt ratio and short-term debt ratios) are inversely related to AEM. In contrast, all measures of capital structure are positively related to abnormal cash flow from operations. Total debt ratio and long-term debt ratio are negatively while short-term debt ratio is positively related to abnormal discretionary expenses. Total debt ratio and short-term debt ratio are significant and negatively related to abnormal production cost. Additionally, interaction terms of ID (i.e. rule of law and regulatory quality) significantly moderate the controlling role of debt on discretionary accruals. In sum, results show that the use of debt induces lender's monitoring. Consequently, managers move toward REM because of lower probability of being exposed. Practical implications Findings of this study have significant implications for managers and regulatory authorities. For instance, the use of debt increases the lender’s influence which restricts the managers to be involved in EM practices. Moreover, regulatory authorities are required to address the loopholes in regulations to refrain the managers to be engaged in EM. Originality/value To the best of the authors’ knowledge, this is the first study in Pakistan that has explored the impact of capital structure on AEM and REM. More importantly, a careful review of the literature affirms that this study is among the few studies that have used ID as a moderating variable to explain the relation between capital structure and EM.
{"title":"Capital structure and earnings management: evidence from Pakistan","authors":"A. Naz, N. Sheikh","doi":"10.1108/ijaim-08-2022-0163","DOIUrl":"https://doi.org/10.1108/ijaim-08-2022-0163","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to investigate whether capital structure affects accruals and real earnings management (AEM and REM) of nonfinancial firms listed on Pakistan Stock Exchange (PSX). Moreover, to investigate whether institutional development (ID) moderates the relation between capital structure and earnings management (EM).\u0000\u0000\u0000Design/methodology/approach\u0000Data were taken from annual reports of nonfinancial firms listed on the PSX during 2012–2019. Data of 150 firms for a period of eight years were found completed with respect to the variables used in this study. The generalized moments of methods estimator is used to estimate the effects of explanatory variables on earning management. Furthermore, fixed and random effects methods were used to estimate the impact of capital structure on AEM and REM.\u0000\u0000\u0000Findings\u0000Results show that all three measures of capital structure (i.e. total debt ratio, long-term debt ratio and short-term debt ratios) are inversely related to AEM. In contrast, all measures of capital structure are positively related to abnormal cash flow from operations. Total debt ratio and long-term debt ratio are negatively while short-term debt ratio is positively related to abnormal discretionary expenses. Total debt ratio and short-term debt ratio are significant and negatively related to abnormal production cost. Additionally, interaction terms of ID (i.e. rule of law and regulatory quality) significantly moderate the controlling role of debt on discretionary accruals. In sum, results show that the use of debt induces lender's monitoring. Consequently, managers move toward REM because of lower probability of being exposed.\u0000\u0000\u0000Practical implications\u0000Findings of this study have significant implications for managers and regulatory authorities. For instance, the use of debt increases the lender’s influence which restricts the managers to be involved in EM practices. Moreover, regulatory authorities are required to address the loopholes in regulations to refrain the managers to be engaged in EM.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study in Pakistan that has explored the impact of capital structure on AEM and REM. More importantly, a careful review of the literature affirms that this study is among the few studies that have used ID as a moderating variable to explain the relation between capital structure and EM.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"92 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132863638","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL). Design/methodology/approach This study uses data extracted from financial reports for a sample from EGX100 over the period from 2015 to 2019. This study applies content analysis approach to measure the level of BDA. This study uses ordinary least squares, structure equation modelling and principal component analysis to investigate the relationship between BG, BDA and ARL. Findings The findings indicate that BDA can be used as a predictor of ARL for companies listed on the Egyptian stock exchange. The results show that board diversity has a significant effect on ARL when BDA is used as a mediator. Research limitations/implications This study only includes technology, telecommunications and health-care industries in the sample. Practical implications This paper raises investor and stakeholder awareness for the importance of BDA and corporate governance (CG) procedures in reducing audit report delays in developing countries such as Egypt. This study can assist regulators in developing audit report requirements and enforcing regulations to guarantee timely audit report publication. Originality/value This paper provides a shred of unique evidence on the role of BDA in mediating the relationship between BG and ARL in a developing country.
{"title":"Board governance and audit report lag in the light of big data adoption: the case of Egypt","authors":"Hussein Mohsen Saber Ahmed, Sherif El-halaby, Khaldoon Albitar","doi":"10.1108/ijaim-04-2022-0088","DOIUrl":"https://doi.org/10.1108/ijaim-04-2022-0088","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL).\u0000\u0000\u0000Design/methodology/approach\u0000This study uses data extracted from financial reports for a sample from EGX100 over the period from 2015 to 2019. This study applies content analysis approach to measure the level of BDA. This study uses ordinary least squares, structure equation modelling and principal component analysis to investigate the relationship between BG, BDA and ARL.\u0000\u0000\u0000Findings\u0000The findings indicate that BDA can be used as a predictor of ARL for companies listed on the Egyptian stock exchange. The results show that board diversity has a significant effect on ARL when BDA is used as a mediator.\u0000\u0000\u0000Research limitations/implications\u0000This study only includes technology, telecommunications and health-care industries in the sample.\u0000\u0000\u0000Practical implications\u0000This paper raises investor and stakeholder awareness for the importance of BDA and corporate governance (CG) procedures in reducing audit report delays in developing countries such as Egypt. This study can assist regulators in developing audit report requirements and enforcing regulations to guarantee timely audit report publication.\u0000\u0000\u0000Originality/value\u0000This paper provides a shred of unique evidence on the role of BDA in mediating the relationship between BG and ARL in a developing country.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130897000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-21DOI: 10.1108/ijaim-08-2022-0166
M. E. Neves, Catarina Proença, B. Cancela
Purpose This paper aims to analyze the corporate governance and corporate social responsibility (CSR) determinants of the Portuguese listed companies’ performance, considering a different point of view by managers, shareholders and other external stakeholders and investors. Design/methodology/approach To achieve this aim, the authors have used a sample of 34 nonfinancial listed companies in Euronext Lisbon between 2015 and 2020. The authors use the panel data methodology to test the hypotheses formulated according to the literature review, specifically the generalized method of moments (GMM) system estimation model proposed by Arellano and Bond (1991). Findings The main results point out that the determinants of the corporate performance vary depending on the dependent variable considered. From the managers’ perspective, the existence of an audit committee and expenses with the environment increase costs and reduce results, negatively influencing corporate performance, but the company’s maturity adds synergies in resource management and positively influences performance. Shareholders consider that gender diversity and board independence positively influence performance, whereas, for external stakeholders and long-term investors, gender diversity and the social responsibility committee harm the performance of Portuguese companies. However, environmental and social expenditures have a positive effect, showing that the market’s perception is that, in the long run, it is essential to eradicate poverty and protect the environment. Originality/value To the best of the authors’ knowledge, this study is the first one to analyze corporate governance and CSR determinants on the performance of listed Portuguese companies. This study shows that in a small banking-oriented country, there is still a long way to go in terms of increasing social responsibility and governance among different stakeholders. It is essential to promote actions that lead to effective governance and awareness of social responsibility.
{"title":"Governance and social responsibility: what factors impact corporate performance in a small banking-oriented country?","authors":"M. E. Neves, Catarina Proença, B. Cancela","doi":"10.1108/ijaim-08-2022-0166","DOIUrl":"https://doi.org/10.1108/ijaim-08-2022-0166","url":null,"abstract":"\u0000Purpose\u0000This paper aims to analyze the corporate governance and corporate social responsibility (CSR) determinants of the Portuguese listed companies’ performance, considering a different point of view by managers, shareholders and other external stakeholders and investors.\u0000\u0000\u0000Design/methodology/approach\u0000To achieve this aim, the authors have used a sample of 34 nonfinancial listed companies in Euronext Lisbon between 2015 and 2020. The authors use the panel data methodology to test the hypotheses formulated according to the literature review, specifically the generalized method of moments (GMM) system estimation model proposed by Arellano and Bond (1991).\u0000\u0000\u0000Findings\u0000The main results point out that the determinants of the corporate performance vary depending on the dependent variable considered. From the managers’ perspective, the existence of an audit committee and expenses with the environment increase costs and reduce results, negatively influencing corporate performance, but the company’s maturity adds synergies in resource management and positively influences performance. Shareholders consider that gender diversity and board independence positively influence performance, whereas, for external stakeholders and long-term investors, gender diversity and the social responsibility committee harm the performance of Portuguese companies. However, environmental and social expenditures have a positive effect, showing that the market’s perception is that, in the long run, it is essential to eradicate poverty and protect the environment.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this study is the first one to analyze corporate governance and CSR determinants on the performance of listed Portuguese companies. This study shows that in a small banking-oriented country, there is still a long way to go in terms of increasing social responsibility and governance among different stakeholders. It is essential to promote actions that lead to effective governance and awareness of social responsibility.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126572403","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-28DOI: 10.1108/ijaim-12-2021-0246
F. Franke, Martin R. W. Hiebl
Purpose Existing research on the relationship between big data and organizational decision quality is still few and far between, and what does exist often assumes direct effects of big data on decision quality. More recent research indicates that such direct effects may be too simplistic, and in particular, an organization’s overall human skills are often not considered sufficiently. Inspired by the knowledge-based view, we therefore propose that interactions between three aspects of big data usage and management accountants’ data analytics skills may be key to reaching high-quality decisions. The purpose of this study is to test these predictions based on a survey of US firms. Design/methodology/approach The authors draw on survey data from 140 US firms. This survey has been conducted via MTurk in 2020. Findings The results of the study show that the quality of big data sources is associated with higher perceived levels of decision quality. However, according to the results, the breadth of big data sources and a data-driven culture only improve decision quality if management accountants’ data analytics skills are highly developed. These results point to the important, but so far unexamined role of an organization’s management accountants and their skills for translating big data into high-quality decisions. Practical implications The present study highlights the importance of an organization’s human skills in creating value out of big data. In particular, the findings imply that management accountants may need to increasingly draw on data analytics skills to make the most out of big data for their employers. Originality/value This study is among the first, to the best of the authors’ knowledge, to provide empirical proof of the relevance of an organization’s management accountants and their data analytics skills for reaching desirable firm-level outcomes. In addition, this study thus adds to the further advancement of the knowledge-based view by providing evidence that in contemporary big-data environments, interactions between tacit and explicit knowledge seem crucial for driving desirable firm-level outcomes.
{"title":"Big data and decision quality: the role of management accountants’ data analytics skills","authors":"F. Franke, Martin R. W. Hiebl","doi":"10.1108/ijaim-12-2021-0246","DOIUrl":"https://doi.org/10.1108/ijaim-12-2021-0246","url":null,"abstract":"\u0000Purpose\u0000Existing research on the relationship between big data and organizational decision quality is still few and far between, and what does exist often assumes direct effects of big data on decision quality. More recent research indicates that such direct effects may be too simplistic, and in particular, an organization’s overall human skills are often not considered sufficiently. Inspired by the knowledge-based view, we therefore propose that interactions between three aspects of big data usage and management accountants’ data analytics skills may be key to reaching high-quality decisions. The purpose of this study is to test these predictions based on a survey of US firms.\u0000\u0000\u0000Design/methodology/approach\u0000The authors draw on survey data from 140 US firms. This survey has been conducted via MTurk in 2020.\u0000\u0000\u0000Findings\u0000The results of the study show that the quality of big data sources is associated with higher perceived levels of decision quality. However, according to the results, the breadth of big data sources and a data-driven culture only improve decision quality if management accountants’ data analytics skills are highly developed. These results point to the important, but so far unexamined role of an organization’s management accountants and their skills for translating big data into high-quality decisions.\u0000\u0000\u0000Practical implications\u0000The present study highlights the importance of an organization’s human skills in creating value out of big data. In particular, the findings imply that management accountants may need to increasingly draw on data analytics skills to make the most out of big data for their employers.\u0000\u0000\u0000Originality/value\u0000This study is among the first, to the best of the authors’ knowledge, to provide empirical proof of the relevance of an organization’s management accountants and their data analytics skills for reaching desirable firm-level outcomes. In addition, this study thus adds to the further advancement of the knowledge-based view by providing evidence that in contemporary big-data environments, interactions between tacit and explicit knowledge seem crucial for driving desirable firm-level outcomes.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121640386","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-30DOI: 10.1108/ijaim-05-2022-0107
M. E. Neves, B. Cancela, V. Gabriel
Purpose This study aims to understand which factors determine the corporate performance of Portuguese and Spanish listed companies between 2011 and 2018, also considering the sub-period marked by the presence of the Troika in Portugal, between 2011 and 2014. Design/methodology/approach To achieve this aim, panel data methodology was used, specifically the generalized method of moments (GMM) estimation method proposed by Arellano and Bond (1991), Arellano and Bover (1995) and Blundell and Bond (1998) for 110 non-financial companies from the Iberian Peninsula. Findings The results point out different signs and significance of the variables in the companies of the two countries. Regarding the sub-period, our results suggest that the intervention of the Troika in Portugal acted in a very different way from the neighboring country. Originality/value This research shows the importance of studying countries individually, even with small dimensions, to reinforce the path that is still necessary for more sustainable companies. Furthermore, when companies have strong governance structures, the harmful contagion from one neighboring country to another may not happen.
{"title":"Performance drivers in Iberian companies in different economic cycles: new evidence using panel data","authors":"M. E. Neves, B. Cancela, V. Gabriel","doi":"10.1108/ijaim-05-2022-0107","DOIUrl":"https://doi.org/10.1108/ijaim-05-2022-0107","url":null,"abstract":"\u0000Purpose\u0000This study aims to understand which factors determine the corporate performance of Portuguese and Spanish listed companies between 2011 and 2018, also considering the sub-period marked by the presence of the Troika in Portugal, between 2011 and 2014.\u0000\u0000\u0000Design/methodology/approach\u0000To achieve this aim, panel data methodology was used, specifically the generalized method of moments (GMM) estimation method proposed by Arellano and Bond (1991), Arellano and Bover (1995) and Blundell and Bond (1998) for 110 non-financial companies from the Iberian Peninsula.\u0000\u0000\u0000Findings\u0000The results point out different signs and significance of the variables in the companies of the two countries. Regarding the sub-period, our results suggest that the intervention of the Troika in Portugal acted in a very different way from the neighboring country.\u0000\u0000\u0000Originality/value\u0000This research shows the importance of studying countries individually, even with small dimensions, to reinforce the path that is still necessary for more sustainable companies. Furthermore, when companies have strong governance structures, the harmful contagion from one neighboring country to another may not happen.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114195185","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-23DOI: 10.1108/ijaim-05-2022-0101
Bushra Komal, Bilal, Chengang Ye, R. Salem
Purpose This paper aims to discuss the academic literature on the impact of audit committee effectiveness on different outcomes (accounting, auditing, governance and economics) in China. Design/methodology/approach The authors have conducted a systematic review using the PRISMA guidelines. Findings The key finding is that the regulatory organisations in China, such as the China Securities Regulatory Commission (CSRC) and the State-Owned Assets Supervision and Administration Commission (SASAC), need to play the active role that is expected of them to enhance the transparency and independence of an audit committee. Also, Chinese listed companies are facing institutional barriers (CEO power, concentrated ownership and government influence) to effectively implement the imported concept within China. Research relating to the audit committee's effectiveness has focused mainly on agency and resource dependence perspectives. Research limitations/implications China’s regulatory bodies (CSRC and SASAC) should make necessary reforms to enhance the audit committee’s effectiveness. This study also provides implications for the other settings that have imported the audit committee concept from the Anglo-American countries. Originality/value This study contributes to the literature by synthesising the prior mixed findings on audit committee literature in China and providing suggestions to the regulators and future research.
{"title":"The impact of audit committee effectiveness on firms’ outcomes in China: a systematic review","authors":"Bushra Komal, Bilal, Chengang Ye, R. Salem","doi":"10.1108/ijaim-05-2022-0101","DOIUrl":"https://doi.org/10.1108/ijaim-05-2022-0101","url":null,"abstract":"\u0000Purpose\u0000This paper aims to discuss the academic literature on the impact of audit committee effectiveness on different outcomes (accounting, auditing, governance and economics) in China.\u0000\u0000\u0000Design/methodology/approach\u0000The authors have conducted a systematic review using the PRISMA guidelines.\u0000\u0000\u0000Findings\u0000The key finding is that the regulatory organisations in China, such as the China Securities Regulatory Commission (CSRC) and the State-Owned Assets Supervision and Administration Commission (SASAC), need to play the active role that is expected of them to enhance the transparency and independence of an audit committee. Also, Chinese listed companies are facing institutional barriers (CEO power, concentrated ownership and government influence) to effectively implement the imported concept within China. Research relating to the audit committee's effectiveness has focused mainly on agency and resource dependence perspectives.\u0000\u0000\u0000Research limitations/implications\u0000China’s regulatory bodies (CSRC and SASAC) should make necessary reforms to enhance the audit committee’s effectiveness. This study also provides implications for the other settings that have imported the audit committee concept from the Anglo-American countries.\u0000\u0000\u0000Originality/value\u0000This study contributes to the literature by synthesising the prior mixed findings on audit committee literature in China and providing suggestions to the regulators and future research.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117121161","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-21DOI: 10.1108/ijaim-03-2022-0049
Tony Abdoush, K. Hussainey, Khaldoon Albitar
Purpose Due to stakeholders’ concerns on the contribution of corporate governance in monitoring insurance companies during financial crisis, this study aims to investigate whether and how various corporate governance practices would have affected firm performance of listed and non-listed insurance firms in the UK during financial crisis. Design/methodology/approach This study uses a unique manually collected data set from listed and non-listed insurance firms in the UK and applies different regressions models to test the hypotheses and to address the endogeneity problem. Findings The findings show that board non-duality and the presence of a majority shareholder improve firm performance in insurance companies. Furthermore, the findings for the sub-samples indicate a stronger positive association between board of directors and firm performance in listed insurance companies after the financial crisis, while a positive impact has been found between large shareholders and external audit firms in non-listed insurance companies before and during the crisis. Practical implications The results offer important practical implications for the government, management, shareholders and policymakers. For example, regulators and policymakers should benefit from these results to revise the recommendations for corporate governance mechanisms that prove to be effective on firm performance, as well as those mechanisms that have different or unexpected effects among listed or non-listed firms and/or during the turbulent periods. Investors should be aware of those specific corporate governance mechanisms that would have higher effect on performance of UK insurance firms in which they are considering to invest in. Originality/value This study contributes to the current literature by exploring the effect of corporate governance on financial performance by comparing between listed and non-listed insurance companies during financial crisis. Further, to the best of the authors’ knowledge, this is the first study to use two new insurance-related performance measures, the revenue growth ratio and the adjusted combined ratio, as performance proxies to explore whether these new variables create any insights.
{"title":"Corporate governance and performance in the UK insurance industry pre, during and post the global financial crisis","authors":"Tony Abdoush, K. Hussainey, Khaldoon Albitar","doi":"10.1108/ijaim-03-2022-0049","DOIUrl":"https://doi.org/10.1108/ijaim-03-2022-0049","url":null,"abstract":"\u0000Purpose\u0000Due to stakeholders’ concerns on the contribution of corporate governance in monitoring insurance companies during financial crisis, this study aims to investigate whether and how various corporate governance practices would have affected firm performance of listed and non-listed insurance firms in the UK during financial crisis.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses a unique manually collected data set from listed and non-listed insurance firms in the UK and applies different regressions models to test the hypotheses and to address the endogeneity problem.\u0000\u0000\u0000Findings\u0000The findings show that board non-duality and the presence of a majority shareholder improve firm performance in insurance companies. Furthermore, the findings for the sub-samples indicate a stronger positive association between board of directors and firm performance in listed insurance companies after the financial crisis, while a positive impact has been found between large shareholders and external audit firms in non-listed insurance companies before and during the crisis.\u0000\u0000\u0000Practical implications\u0000The results offer important practical implications for the government, management, shareholders and policymakers. For example, regulators and policymakers should benefit from these results to revise the recommendations for corporate governance mechanisms that prove to be effective on firm performance, as well as those mechanisms that have different or unexpected effects among listed or non-listed firms and/or during the turbulent periods. Investors should be aware of those specific corporate governance mechanisms that would have higher effect on performance of UK insurance firms in which they are considering to invest in.\u0000\u0000\u0000Originality/value\u0000This study contributes to the current literature by exploring the effect of corporate governance on financial performance by comparing between listed and non-listed insurance companies during financial crisis. Further, to the best of the authors’ knowledge, this is the first study to use two new insurance-related performance measures, the revenue growth ratio and the adjusted combined ratio, as performance proxies to explore whether these new variables create any insights.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"122 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128173392","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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