Pub Date : 2022-04-12DOI: 10.1108/ijaim-12-2021-0252
M. Usman, Ernest Ezeani, R. Salem, Xiaobao Song
Purpose This paper aims to examine the relationship between audit characteristics (ACs) and audit fees on classification shifting (CS) among German-listed non-financial firms. Design/methodology/approach Using a sample of 130 German-listed (Deutscher Aktienindex, Mid Cap dax and Small caps Index) firms from 2010 until 2019, this study investigated the impact of audit committee size, audit committee meetings, audit committee financial expertise and audit fees on CS. Findings This study found the evidence of CS, meaning that managers misclassify recurring expenses in the income statement into non-recurring expenses to inflate core earnings. This study also found that the audit fee ratio, audit committee financial expertise and frequency of audit meetings are negatively associated with CS among German-listed firms. However, the audit committee size does not influence CS. Research limitations/implications This study will help the board improve its internal auditing practices and provide essential information to investors to assess how ACs affect the quality of financial reporting. Originality/value This study focused on a bank-oriented economy, i.e. Germany, with lower investor protection and low transparency. This paper documents new evidence on how ACs and audit fees impact CS among German firms, as most of the previous studies on CS mainly focused on market-oriented economies such as the UK and the USA.
目的研究德国非金融上市公司审计特征与分类转移审计费用之间的关系。本研究以2010年至2019年期间在德国上市的130家公司(Deutscher Aktienindex、Mid - Cap dax和Small Cap Index)为样本，调查了审计委员会规模、审计委员会会议、审计委员会财务专业知识和审计费用对会计绩效的影响。本研究发现了CS的证据，这意味着管理者错误地将损益表中的经常性费用分类为非经常性费用，以夸大核心收益。本研究还发现，在德国上市公司中，审计费用比率、审计委员会财务专业知识和审计会议频率与会计绩效呈负相关。然而，审计委员会的规模并不影响CS。本研究将有助于董事会改进其内部审计实践，并为投资者评估ac如何影响财务报告质量提供必要信息。原创性/价值本研究关注的是一个以银行为导向的经济体，即德国，其投资者保护程度较低，透明度也较低。由于以往对会计准则的研究大多集中在英国和美国等市场经济国家，因此本文提供了关于会计准则和审计费用如何影响德国公司会计准则的新证据。
{"title":"The impact of audit characteristics, audit fees on classification shifting: evidence from Germany","authors":"M. Usman, Ernest Ezeani, R. Salem, Xiaobao Song","doi":"10.1108/ijaim-12-2021-0252","DOIUrl":"https://doi.org/10.1108/ijaim-12-2021-0252","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the relationship between audit characteristics (ACs) and audit fees on classification shifting (CS) among German-listed non-financial firms.\u0000\u0000\u0000Design/methodology/approach\u0000Using a sample of 130 German-listed (Deutscher Aktienindex, Mid Cap dax and Small caps Index) firms from 2010 until 2019, this study investigated the impact of audit committee size, audit committee meetings, audit committee financial expertise and audit fees on CS.\u0000\u0000\u0000Findings\u0000This study found the evidence of CS, meaning that managers misclassify recurring expenses in the income statement into non-recurring expenses to inflate core earnings. This study also found that the audit fee ratio, audit committee financial expertise and frequency of audit meetings are negatively associated with CS among German-listed firms. However, the audit committee size does not influence CS.\u0000\u0000\u0000Research limitations/implications\u0000This study will help the board improve its internal auditing practices and provide essential information to investors to assess how ACs affect the quality of financial reporting.\u0000\u0000\u0000Originality/value\u0000This study focused on a bank-oriented economy, i.e. Germany, with lower investor protection and low transparency. This paper documents new evidence on how ACs and audit fees impact CS among German firms, as most of the previous studies on CS mainly focused on market-oriented economies such as the UK and the USA.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129451151","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 : 2022-04-07DOI: 10.1108/ijaim-10-2021-0203
E. Neves, Antônio Dias, Miguel H. Ferreira, Carla Henriques
Purpose In the macroeconomic environment of the Iberian Peninsula, this paper aims to understand which factors, intrinsic to management, affect the performance of wine companies. Design/methodology/approach The sample comprises 3,113 wine Iberian companies between 2011 and 2018. This study has used the panel data methodology, specifically the generalized method of moments system estimation method of Arellano and Bond (1991); Arellano and Bover (1995); and Blundell and Bond (1998) to test the hypotheses proposed. Findings Using return on assets (ROA) and sales growth as measures of corporate performance, this study’s results suggest that sales growth is the variable that has the most significant determining factors, both specific to the company and given the macroeconomic environment. Investors and civil society well understand the meaning of sales growth, namely, in a sector close to the final consumer. When using ROA as a dependent variable, the results suggest that because it is a pure management variable, the manager tends to be more concerned with maintaining adequate levels of economic profitability to ensure sustainability and future solvency, without giving prominence to the macroeconomic environment. Originality/value To the best of the authors’ knowledge, this is the first time that a study has been carried out in the Iberian Peninsula on the wine industry using ROA and sales growth as measures of corporate performance. This study shows that sales growth is a measure traditionally known to external stakeholders, and to that extent, its determining factors are the variables that these players most value in the market.
在伊比利亚半岛的宏观经济环境中，本文旨在了解哪些内在的管理因素会影响葡萄酒公司的绩效。设计/方法/方法样本包括2011年至2018年间的3113家伊比利亚葡萄酒公司。本研究采用了面板数据方法，具体为Arellano和Bond(1991)的广义矩量系统估计方法;阿雷利亚诺和博弗(1995年);和Blundell and Bond(1998)来检验提出的假设。使用资产回报率(ROA)和销售增长作为公司绩效的衡量标准，本研究的结果表明，销售增长是具有最重要决定因素的变量，既针对公司，也考虑到宏观经济环境。投资者和公民社会非常理解销售增长的意义，即在一个接近最终消费者的行业。当使用ROA作为因变量时，结果表明，因为它是一个纯粹的管理变量，管理者往往更关心保持足够的经济盈利水平，以确保可持续性和未来的偿付能力，而不突出宏观经济环境。原创性/价值据作者所知，这是第一次在伊比利亚半岛对葡萄酒行业进行研究，使用ROA和销售增长作为企业绩效的衡量标准。本研究表明，销售增长是外部利益相关者传统上所知的衡量标准，在某种程度上，其决定因素是这些参与者在市场中最看重的变量。
{"title":"Determinants of wine firms’ performance: the Iberian case using panel data","authors":"E. Neves, Antônio Dias, Miguel H. Ferreira, Carla Henriques","doi":"10.1108/ijaim-10-2021-0203","DOIUrl":"https://doi.org/10.1108/ijaim-10-2021-0203","url":null,"abstract":"\u0000Purpose\u0000In the macroeconomic environment of the Iberian Peninsula, this paper aims to understand which factors, intrinsic to management, affect the performance of wine companies.\u0000\u0000\u0000Design/methodology/approach\u0000The sample comprises 3,113 wine Iberian companies between 2011 and 2018. This study has used the panel data methodology, specifically the generalized method of moments system estimation method of Arellano and Bond (1991); Arellano and Bover (1995); and Blundell and Bond (1998) to test the hypotheses proposed.\u0000\u0000\u0000Findings\u0000Using return on assets (ROA) and sales growth as measures of corporate performance, this study’s results suggest that sales growth is the variable that has the most significant determining factors, both specific to the company and given the macroeconomic environment. Investors and civil society well understand the meaning of sales growth, namely, in a sector close to the final consumer. When using ROA as a dependent variable, the results suggest that because it is a pure management variable, the manager tends to be more concerned with maintaining adequate levels of economic profitability to ensure sustainability and future solvency, without giving prominence to the macroeconomic environment.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first time that a study has been carried out in the Iberian Peninsula on the wine industry using ROA and sales growth as measures of corporate performance. This study shows that sales growth is a measure traditionally known to external stakeholders, and to that extent, its determining factors are the variables that these players most value in the market.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115496910","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 : 2022-04-04DOI: 10.1108/ijaim-10-2021-0205
Yousry Ahmed, Yu Song, Mohamed Elsayed
Purpose This paper aims to examine whether and how females on the board of directors affect US-listed companies’ merger and acquisition (M&A) decisions. Specifically, the paper concerns the impact of females in the boardroom on the likelihood and type of M&A deals (i.e. foreign vs domestic acquisitions and listed vs unlisted acquisitions). Design/methodology/approach Archival data of M&A deals using a sample of 17,899 firm-year observations of the US public companies from 2012 to 2018 are collected and examined using probit and logit models. Findings This paper offers three main results supporting the propositions of the behavioral consistency theory. First, female directors are negatively associated with the likelihood of making the acquisition. Second, female directors are positively associated with acquiring domestic rather than foreign targets. Third, female directors are positively associated with acquiring listed rather than unlisted targets. Research limitations/implications The findings provide additional evidence-based insights into the debate about diversity on boards with the aim of informing policy and offering practical recommendations for the effective implementation of gender diversity on the boards of companies. Originality/value Overall, consistent with the premise of behavioral theory, the results expand the literature on gender diversity by augmenting the argument that females’ behavior in corporate policies is viewed as opposition to change and a tendency toward risk aversion and thus, influences companies’ strategic investment decisions, such as M&A.
{"title":"On the likelihood and type of merger and acquisition in the US listed companies: the role of females on the board","authors":"Yousry Ahmed, Yu Song, Mohamed Elsayed","doi":"10.1108/ijaim-10-2021-0205","DOIUrl":"https://doi.org/10.1108/ijaim-10-2021-0205","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine whether and how females on the board of directors affect US-listed companies’ merger and acquisition (M&A) decisions. Specifically, the paper concerns the impact of females in the boardroom on the likelihood and type of M&A deals (i.e. foreign vs domestic acquisitions and listed vs unlisted acquisitions).\u0000\u0000\u0000Design/methodology/approach\u0000Archival data of M&A deals using a sample of 17,899 firm-year observations of the US public companies from 2012 to 2018 are collected and examined using probit and logit models.\u0000\u0000\u0000Findings\u0000This paper offers three main results supporting the propositions of the behavioral consistency theory. First, female directors are negatively associated with the likelihood of making the acquisition. Second, female directors are positively associated with acquiring domestic rather than foreign targets. Third, female directors are positively associated with acquiring listed rather than unlisted targets.\u0000\u0000\u0000Research limitations/implications\u0000The findings provide additional evidence-based insights into the debate about diversity on boards with the aim of informing policy and offering practical recommendations for the effective implementation of gender diversity on the boards of companies.\u0000\u0000\u0000Originality/value\u0000Overall, consistent with the premise of behavioral theory, the results expand the literature on gender diversity by augmenting the argument that females’ behavior in corporate policies is viewed as opposition to change and a tendency toward risk aversion and thus, influences companies’ strategic investment decisions, such as M&A.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"73 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117172881","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 : 2022-03-30DOI: 10.1108/ijaim-11-2021-0242
Hela Borgi, V. Tawiah
Purpose This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level. Design/methodology/approach The authors use a large sample of 175 developed and developing countries over 14 years. Data is obtained from different sources including, World Development Indicators, the Reports on the Observance of Standards and Codes (ROSC) website and the Quality of Government database. Findings The results highlight the significance of coercive, mimetic and normative pressures in terms of ROSC reports, the extent of accounting globalisation and education. However, in further analyses, the authors found that coercive pressure is pronounced in developing countries. Nevertheless, mimetic pressure is an important, influential factor for all countries regardless of their status as developed or developing. Originality/value This study responds to the lack of research on the country-level factors of countries’ adoption of XBRL. The present study contributes to the literature by providing additional evidence on the country-level factors influencing XBRL adoption. Using the institutional theory, the authors provide a better understanding of the global diffusion of XBRL, which has attracted little attention. The study also complements prior literature on the adoption of international accounting and financial reporting practices.
{"title":"Determinants of eXtensible business reporting language adoption: an institutional perspective","authors":"Hela Borgi, V. Tawiah","doi":"10.1108/ijaim-11-2021-0242","DOIUrl":"https://doi.org/10.1108/ijaim-11-2021-0242","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level.\u0000\u0000\u0000Design/methodology/approach\u0000The authors use a large sample of 175 developed and developing countries over 14 years. Data is obtained from different sources including, World Development Indicators, the Reports on the Observance of Standards and Codes (ROSC) website and the Quality of Government database.\u0000\u0000\u0000Findings\u0000The results highlight the significance of coercive, mimetic and normative pressures in terms of ROSC reports, the extent of accounting globalisation and education. However, in further analyses, the authors found that coercive pressure is pronounced in developing countries. Nevertheless, mimetic pressure is an important, influential factor for all countries regardless of their status as developed or developing.\u0000\u0000\u0000Originality/value\u0000This study responds to the lack of research on the country-level factors of countries’ adoption of XBRL. The present study contributes to the literature by providing additional evidence on the country-level factors influencing XBRL adoption. Using the institutional theory, the authors provide a better understanding of the global diffusion of XBRL, which has attracted little attention. The study also complements prior literature on the adoption of international accounting and financial reporting practices.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125958823","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 : 2022-03-29DOI: 10.1108/ijaim-12-2021-0251
M. E. Neves, Elisabete S. Vieira, Z. Serrasqueiro
Purpose This paper aims to study the influence of some company-specific characteristics, corporate governance factors and macroeconomic factors on the Portuguese companies’ performance. Design/methodology/approach To achieve this aim, the authors have used data from 39 Euronext Lisbon companies for the period between 2014 and 2019. The authors used panel data methodology, specifically the generalized method of moments estimation method by Arellano and Bover (1995) and Blundell and Bond (1998). Findings The results point out that the sign and significance of the determinants of corporate performance change depending on the variable used to measure performance. The Tobin’s Q variable, as a market variable and variable of interest to potential investors, is explained by some corporate governance variables and company-specific factors. Specifically, potential investors are confident in the leadership power of the chief executive office (CEO) and the members of the Board of Directors, which contributes positively to corporate performance. However, the firms’ age has a negative impact on Tobin’s Q. Considering an accounting variable managed internally by the organizations, the results show that return on assets is negatively influenced by leverage, and positively affected by CEO duality, which the manager believes is decisive to maintain performance levels. Originality/value To the best of the authors’ knowledge, this study is the first to analyze specific characteristics of companies and corporate governance factors, in a specific macroeconomic environment of high dependence on banking, considering the nonlinear effect of company age on company performance.
本文旨在研究一些公司特征、公司治理因素和宏观经济因素对葡萄牙公司绩效的影响。设计/方法/方法为了实现这一目标，作者使用了2014年至2019年期间39家泛欧交易所里斯本公司的数据。作者使用了面板数据方法，特别是Arellano and Bover(1995)和Blundell and Bond(1998)的广义矩估计方法。研究结果指出，公司绩效决定因素的符号和重要性取决于用于衡量绩效的变量。托宾Q变量作为一个市场变量和潜在投资者感兴趣的变量，可以用一些公司治理变量和公司特定因素来解释。具体而言，潜在投资者对首席执行官办公室(CEO)和董事会成员的领导能力充满信心，这对公司绩效有积极的贡献。然而，公司的年龄对托宾q有负向影响，考虑到组织内部管理的会计变量，结果表明，资产回报率受到杠杆率的负向影响，并受到CEO二元性的积极影响，管理者认为这是维持绩效水平的决定性因素。原创性/价值据作者所知，本研究首次在高度依赖银行的特定宏观经济环境中，考虑到公司年龄对公司绩效的非线性影响，分析了公司的具体特征和公司治理因素。
{"title":"Management or market variables in the assessment of corporate performance? Evidence on a bank-based system","authors":"M. E. Neves, Elisabete S. Vieira, Z. Serrasqueiro","doi":"10.1108/ijaim-12-2021-0251","DOIUrl":"https://doi.org/10.1108/ijaim-12-2021-0251","url":null,"abstract":"\u0000Purpose\u0000This paper aims to study the influence of some company-specific characteristics, corporate governance factors and macroeconomic factors on the Portuguese companies’ performance.\u0000\u0000\u0000Design/methodology/approach\u0000To achieve this aim, the authors have used data from 39 Euronext Lisbon companies for the period between 2014 and 2019. The authors used panel data methodology, specifically the generalized method of moments estimation method by Arellano and Bover (1995) and Blundell and Bond (1998).\u0000\u0000\u0000Findings\u0000The results point out that the sign and significance of the determinants of corporate performance change depending on the variable used to measure performance. The Tobin’s Q variable, as a market variable and variable of interest to potential investors, is explained by some corporate governance variables and company-specific factors. Specifically, potential investors are confident in the leadership power of the chief executive office (CEO) and the members of the Board of Directors, which contributes positively to corporate performance. However, the firms’ age has a negative impact on Tobin’s Q. Considering an accounting variable managed internally by the organizations, the results show that return on assets is negatively influenced by leverage, and positively affected by CEO duality, which the manager believes is decisive to maintain performance levels.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this study is the first to analyze specific characteristics of companies and corporate governance factors, in a specific macroeconomic environment of high dependence on banking, considering the nonlinear effect of company age on company performance.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128687822","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 : 2022-03-23DOI: 10.1108/ijaim-10-2021-0220
Richard Nana Boateng, V. Tawiah, G. Tackie
Purpose The purpose of this paper is to provide an empirical evidence concerning the influence of Corporate governance and voluntary disclosures in annual reports: a post-International Financial Reporting Standards adoption evidence from an emerging capital market. Design/methodology/approach Data were collected from the annual reports of all 22 listed non-financial firms over a five-year period. Using content analysis, the audited annual reports of the firms were scored on the extent of overall and four specific types of voluntary disclosures made. The panel data obtained were analyzed using a generalized ordinary least squares regression model. Findings The findings of the study show that voluntary disclosures among the firms are low even after the adoption of IFRS. Corporate governance attributes of board size and board leadership structure are significant determinants of the extent of voluntary disclosures made by the firms. However, board independence and auditor type exhibit only a significant positive effect on voluntary financial and forward-looking information disclosures. Research limitations/implications Firms’ voluntary information disclosure and governance variables were restricted to those in annual reports, which may partially reflect the reality of firms’ disclosure and governance practices. Practical implications The present study offers useful insights to regulators of the capital market to strengthen monitoring of firms to ensure strict adherence to corporate governance best practice guidelines as a means of improving information environment. Originality/value This study is one of the very few ones in Africa, especially in the context of Ghana Stock Exchange, to use post-IFRS data and examine a disaggregated voluntary disclosure by firms.
{"title":"Corporate governance and voluntary disclosures in annual reports: a post-International Financial Reporting Standard adoption evidence from an emerging capital market","authors":"Richard Nana Boateng, V. Tawiah, G. Tackie","doi":"10.1108/ijaim-10-2021-0220","DOIUrl":"https://doi.org/10.1108/ijaim-10-2021-0220","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to provide an empirical evidence concerning the influence of Corporate governance and voluntary disclosures in annual reports: a post-International Financial Reporting Standards adoption evidence from an emerging capital market.\u0000\u0000\u0000Design/methodology/approach\u0000Data were collected from the annual reports of all 22 listed non-financial firms over a five-year period. Using content analysis, the audited annual reports of the firms were scored on the extent of overall and four specific types of voluntary disclosures made. The panel data obtained were analyzed using a generalized ordinary least squares regression model.\u0000\u0000\u0000Findings\u0000The findings of the study show that voluntary disclosures among the firms are low even after the adoption of IFRS. Corporate governance attributes of board size and board leadership structure are significant determinants of the extent of voluntary disclosures made by the firms. However, board independence and auditor type exhibit only a significant positive effect on voluntary financial and forward-looking information disclosures.\u0000\u0000\u0000Research limitations/implications\u0000Firms’ voluntary information disclosure and governance variables were restricted to those in annual reports, which may partially reflect the reality of firms’ disclosure and governance practices.\u0000\u0000\u0000Practical implications\u0000The present study offers useful insights to regulators of the capital market to strengthen monitoring of firms to ensure strict adherence to corporate governance best practice guidelines as a means of improving information environment.\u0000\u0000\u0000Originality/value\u0000This study is one of the very few ones in Africa, especially in the context of Ghana Stock Exchange, to use post-IFRS data and examine a disaggregated voluntary disclosure by firms.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130766819","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 : 2022-03-18DOI: 10.1108/ijaim-10-2021-0202
Khaldoon Albitar, Mahmoud Elmarzouky, K. Hussainey
Purpose This paper aims to examine the impact of ownership concentration on Covid-19 disclosure in the narrative sections of corporate annual reports. It also explores the mediating role of corporate leverage on the ownership concentration–Covid-19 disclosure relationship. Design/methodology/approach This paper uses automated textual analysis to measure Covid-19 disclosure in annual reports. It also applies different regression models to test the research hypotheses and to address the endogeneity problem. It uses univariate and multivariate analyses through correlations and ordinary least squares. Findings The analysis shows that ownership concentration has a negative impact on Covid-19 disclosure. It also shows that corporate leverage negatively affects Covid-19 disclosure, and it has a partial mediating effect on the ownership concentration–Covid-19 disclosure relationship. Practical implications The results offer important practical implications for the government, management, shareholders and policymakers. For example, corporate managers are encouraged to consider small shareholders’ interests and provide a sufficient level of Covid-19 disclosure to avoid violating their rights. Also, the government may consider forming a mechanism for balancing the ownership structure to protect small investors and weaken large shareholders’ tunnelling behaviours. Originality/value This paper offers two important contributions to governance and disclosure literature. First, it provides new empirical evidence on the relationship between ownership concentration and Covid-19 disclosure. Second, it provides new evidence on the mediating role of the leverage ratio on the ownership concentration–Covid-19 disclosure relationship.
{"title":"Ownership concentration and Covid-19 disclosure: the mediating role of corporate leverage","authors":"Khaldoon Albitar, Mahmoud Elmarzouky, K. Hussainey","doi":"10.1108/ijaim-10-2021-0202","DOIUrl":"https://doi.org/10.1108/ijaim-10-2021-0202","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the impact of ownership concentration on Covid-19 disclosure in the narrative sections of corporate annual reports. It also explores the mediating role of corporate leverage on the ownership concentration–Covid-19 disclosure relationship.\u0000\u0000\u0000Design/methodology/approach\u0000This paper uses automated textual analysis to measure Covid-19 disclosure in annual reports. It also applies different regression models to test the research hypotheses and to address the endogeneity problem. It uses univariate and multivariate analyses through correlations and ordinary least squares.\u0000\u0000\u0000Findings\u0000The analysis shows that ownership concentration has a negative impact on Covid-19 disclosure. It also shows that corporate leverage negatively affects Covid-19 disclosure, and it has a partial mediating effect on the ownership concentration–Covid-19 disclosure relationship.\u0000\u0000\u0000Practical implications\u0000The results offer important practical implications for the government, management, shareholders and policymakers. For example, corporate managers are encouraged to consider small shareholders’ interests and provide a sufficient level of Covid-19 disclosure to avoid violating their rights. Also, the government may consider forming a mechanism for balancing the ownership structure to protect small investors and weaken large shareholders’ tunnelling behaviours.\u0000\u0000\u0000Originality/value\u0000This paper offers two important contributions to governance and disclosure literature. First, it provides new empirical evidence on the relationship between ownership concentration and Covid-19 disclosure. Second, it provides new evidence on the mediating role of the leverage ratio on the ownership concentration–Covid-19 disclosure relationship.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"121 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132367581","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 : 2022-03-15DOI: 10.1108/ijaim-10-2021-0213
Mahmoud Elmarzouky, K. Hussainey, Tarek Abdelfattah, Atm Enayet Karim
Purpose This paper aims to provide unique interdisciplinary research evidence between the risk information disclosed by auditors and the risk information disclosed by corporate managers. In particular, it investigates the association between the level of risk information disclosed by auditors (key audit matters [KAMs]) and the level of corporate narrative risk disclosure. Design/methodology/approach The study sample consists of the UK FTSE all-share non-financial firms across six financial years. The authors use a computer-aided textual analysis, and the authors use a bag of words to score the sample annual reports. Findings The results suggest that KAMs and corporate narrative risk disclosure levels vary across the industries. The authors found a significant positive association between the risk information disclosed by auditors and the risk information disclosed by corporate managers. Also, the authors found that FTSE 100 firms exhibit higher significance between the ongoing concern and the level of narrative risk disclosure. Practical implications The study approach helps assess the level of management risk reporting behaviour due to the new auditor risk reporting standards. This helps to emphasise how auditors and companies engage and communicate risk-related information to stakeholders. Standard setters should suggest a more detailed reporting framework to protect the shareholders. The unique findings are incredibly beneficial to the regulators, standard setters, investors, creditors, suppliers, customers, decision makers and academics. Originality/value This paper provides a shred of extraordinary evidence of the impact of auditor risk reporting and management risk reporting. To the best of the authors’ knowledge, no study has yet investigated the corporate narrative disclosure after the new audit standards ISA 700 and ISA 701.
{"title":"Corporate risk disclosure and key audit matters: the egocentric theory","authors":"Mahmoud Elmarzouky, K. Hussainey, Tarek Abdelfattah, Atm Enayet Karim","doi":"10.1108/ijaim-10-2021-0213","DOIUrl":"https://doi.org/10.1108/ijaim-10-2021-0213","url":null,"abstract":"\u0000Purpose\u0000This paper aims to provide unique interdisciplinary research evidence between the risk information disclosed by auditors and the risk information disclosed by corporate managers. In particular, it investigates the association between the level of risk information disclosed by auditors (key audit matters [KAMs]) and the level of corporate narrative risk disclosure.\u0000\u0000\u0000Design/methodology/approach\u0000The study sample consists of the UK FTSE all-share non-financial firms across six financial years. The authors use a computer-aided textual analysis, and the authors use a bag of words to score the sample annual reports.\u0000\u0000\u0000Findings\u0000The results suggest that KAMs and corporate narrative risk disclosure levels vary across the industries. The authors found a significant positive association between the risk information disclosed by auditors and the risk information disclosed by corporate managers. Also, the authors found that FTSE 100 firms exhibit higher significance between the ongoing concern and the level of narrative risk disclosure.\u0000\u0000\u0000Practical implications\u0000The study approach helps assess the level of management risk reporting behaviour due to the new auditor risk reporting standards. This helps to emphasise how auditors and companies engage and communicate risk-related information to stakeholders. Standard setters should suggest a more detailed reporting framework to protect the shareholders. The unique findings are incredibly beneficial to the regulators, standard setters, investors, creditors, suppliers, customers, decision makers and academics.\u0000\u0000\u0000Originality/value\u0000This paper provides a shred of extraordinary evidence of the impact of auditor risk reporting and management risk reporting. To the best of the authors’ knowledge, no study has yet investigated the corporate narrative disclosure after the new audit standards ISA 700 and ISA 701.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131200062","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 : 2022-03-15DOI: 10.1108/ijaim-11-2021-0225
Ronghong Huang, Xiaojun Lin, Xunzhuo Xi, D. Yuen
Purpose This paper aims to explore how external creditors assess firms’ financial aggressiveness in China. Design/methodology/approach Using bank loan-specific data, the authors investigate whether firms exhibit greater costs of bank loans when they engage in earnings manipulation and whether this association changes when restrictions on lenders’ compensation are promulgated. Findings The authors find compelling evidence that bank executives charge higher premiums on firms with accrual earnings management to compensate for additional financial risk but do not charge extra loan prices for firms conducting real earnings management (REM). The authors also find that the enactment of Robust Bank Executive Compensation (REBC) enhances the vigilance of bank executives on the overall client firms’ earnings manipulation, with the exception of REM conducted by state-owned firms. Originality/value The authors extend the current literature on the cost of external loans by focusing on bank loans and the influence of REBC. This study offers implications for policymakers in China and other emerging economics to control loan default and financial risk.
{"title":"The effect of earnings management on external loan price: evidence from China","authors":"Ronghong Huang, Xiaojun Lin, Xunzhuo Xi, D. Yuen","doi":"10.1108/ijaim-11-2021-0225","DOIUrl":"https://doi.org/10.1108/ijaim-11-2021-0225","url":null,"abstract":"Purpose This paper aims to explore how external creditors assess firms’ financial aggressiveness in China. Design/methodology/approach Using bank loan-specific data, the authors investigate whether firms exhibit greater costs of bank loans when they engage in earnings manipulation and whether this association changes when restrictions on lenders’ compensation are promulgated. Findings The authors find compelling evidence that bank executives charge higher premiums on firms with accrual earnings management to compensate for additional financial risk but do not charge extra loan prices for firms conducting real earnings management (REM). The authors also find that the enactment of Robust Bank Executive Compensation (REBC) enhances the vigilance of bank executives on the overall client firms’ earnings manipulation, with the exception of REM conducted by state-owned firms. Originality/value The authors extend the current literature on the cost of external loans by focusing on bank loans and the influence of REBC. This study offers implications for policymakers in China and other emerging economics to control loan default and financial risk.","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"285 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123307562","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 : 2022-02-25DOI: 10.1108/ijaim-09-2021-0195
Ahmed Aboud, Xinming Yang
Purpose This paper aims to examine the impact of corporate governance on corporate social responsibility (CSR) performance, paying particular attention to modern Chinese businesses. Particularly, it examines how ownership concentration, boards of directors and boards of supervisors affect the quality of CSR performance. Design/methodology/approach This study employs the regression analysis using a sample from listed companies in Shanghai and Stock Exchanges covering 2014 until 2018. Findings Using a sample of listed companies in Shanghai and Stock Exchanges, the empirical evidence, A-share listed companies between 2014 and 2018, this empirical investigation demonstrates that corporate governance does indeed have a significant effect on CSR. However, various types of corporate governance mechanisms have differing effects on CSR. The authors find that ownership concentration has a positive impact on CSR performance, while the size of a company’s board of supervisors has a positive impact on CSR performance. By doing so, the authors provide practical implications to users, and regulatory authorities to make better decisions Originality/value This paper contributes to the existing literature by examining the impact of corporate governance on a company’s abilities to meet its CSR objectives in China. Much of the empirical studies on this issue are centred on the Western world, notably Western Europe and the USA.
{"title":"Corporate governance and corporate social responsibility: new evidence from China","authors":"Ahmed Aboud, Xinming Yang","doi":"10.1108/ijaim-09-2021-0195","DOIUrl":"https://doi.org/10.1108/ijaim-09-2021-0195","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the impact of corporate governance on corporate social responsibility (CSR) performance, paying particular attention to modern Chinese businesses. Particularly, it examines how ownership concentration, boards of directors and boards of supervisors affect the quality of CSR performance.\u0000\u0000\u0000Design/methodology/approach\u0000This study employs the regression analysis using a sample from listed companies in Shanghai and Stock Exchanges covering 2014 until 2018.\u0000\u0000\u0000Findings\u0000Using a sample of listed companies in Shanghai and Stock Exchanges, the empirical evidence, A-share listed companies between 2014 and 2018, this empirical investigation demonstrates that corporate governance does indeed have a significant effect on CSR. However, various types of corporate governance mechanisms have differing effects on CSR. The authors find that ownership concentration has a positive impact on CSR performance, while the size of a company’s board of supervisors has a positive impact on CSR performance. By doing so, the authors provide practical implications to users, and regulatory authorities to make better decisions\u0000\u0000\u0000Originality/value\u0000This paper contributes to the existing literature by examining the impact of corporate governance on a company’s abilities to meet its CSR objectives in China. Much of the empirical studies on this issue are centred on the Western world, notably Western Europe and the USA.\u0000","PeriodicalId":229587,"journal":{"name":"International Journal of Accounting & Information Management","volume":"145 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-02-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124632406","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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