Pub Date : 2020-04-14DOI: 10.1504/ijaape.2020.10028481
M. A. Saleh, Rohaida Abdul Latif, Fathiyyah Abu Bakar, Zahraddeen Salisu Maigoshi
This research investigates the impact of multiple directorships, board characteristics, and ownership structure among non-financial firms listed on the Palestine Security Exchange (PSE) during the period from 2009 to 2016. Based on panel data of 200 observations, the results show that multiple directorships of board members, more especially independent directors, reduce the overall effectiveness of the firms and lowers their performance. In contrast, results show that board gender diversity and institutional ownership improve corporate performance. The analysis was repeated by considering Tobin's Q as a dependent. This study is timely, given some unique justifications and recommendations for limiting the practice of having excessive multiple directorships because this practice distracts managers from adequately performing their duties.
{"title":"The impact of multiple directorships, board characteristics, and ownership on the performance of Palestinian listed companies","authors":"M. A. Saleh, Rohaida Abdul Latif, Fathiyyah Abu Bakar, Zahraddeen Salisu Maigoshi","doi":"10.1504/ijaape.2020.10028481","DOIUrl":"https://doi.org/10.1504/ijaape.2020.10028481","url":null,"abstract":"This research investigates the impact of multiple directorships, board characteristics, and ownership structure among non-financial firms listed on the Palestine Security Exchange (PSE) during the period from 2009 to 2016. Based on panel data of 200 observations, the results show that multiple directorships of board members, more especially independent directors, reduce the overall effectiveness of the firms and lowers their performance. In contrast, results show that board gender diversity and institutional ownership improve corporate performance. The analysis was repeated by considering Tobin's Q as a dependent. This study is timely, given some unique justifications and recommendations for limiting the practice of having excessive multiple directorships because this practice distracts managers from adequately performing their duties.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43390495","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 : 2020-04-14DOI: 10.1504/ijaape.2020.10028480
Ouadie Akaaboune, Royce D. Burnett, Christopher J. Skousen, Assyad Al-Wreiket
We contribute to social responsibility research by expanding its scope to include government-level actors and their stakeholders - citizens. We use county-level fiscal policy (strategic cost management) to investigate the public sector's role in maximising citizens' value through sustainability efforts. To date, inquiries of public sector sustainability take place mostly at the national level. Evidence suggests national-level inquiries are relatively poor indicators of public or private sustainability efforts and that investigations of sustainability at the local public sector-level may be more informative. Accordingly, we assess the link between strategic cost management and citizen-stakeholder value via panel analysis of 66 counties in Florida between 2005 and 2014. Contrasting prior literature, our results indicate a strategic cost management strategy that increased total aggregate county spending results in a reduction of emission levels. Further, when total spending is held constant while simultaneously allocating resources to social-public spending, county emission levels are reduced.
{"title":"Do strategic cost policies lead to more sustainable practices Evidence from county governments","authors":"Ouadie Akaaboune, Royce D. Burnett, Christopher J. Skousen, Assyad Al-Wreiket","doi":"10.1504/ijaape.2020.10028480","DOIUrl":"https://doi.org/10.1504/ijaape.2020.10028480","url":null,"abstract":"We contribute to social responsibility research by expanding its scope to include government-level actors and their stakeholders - citizens. We use county-level fiscal policy (strategic cost management) to investigate the public sector's role in maximising citizens' value through sustainability efforts. To date, inquiries of public sector sustainability take place mostly at the national level. Evidence suggests national-level inquiries are relatively poor indicators of public or private sustainability efforts and that investigations of sustainability at the local public sector-level may be more informative. Accordingly, we assess the link between strategic cost management and citizen-stakeholder value via panel analysis of 66 counties in Florida between 2005 and 2014. Contrasting prior literature, our results indicate a strategic cost management strategy that increased total aggregate county spending results in a reduction of emission levels. Further, when total spending is held constant while simultaneously allocating resources to social-public spending, county emission levels are reduced.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41279777","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 : 2020-04-14DOI: 10.1504/ijaape.2020.10028479
P. Joshi, G. Marthandan
This paper considers the underlying procedures in big data and its various analytical tools which accountants and auditors may have to use in internal and continuous auditing. It describes the nature and characteristics of big data, distinguishes between traditional, continuous auditing and continuous monitoring, importance of data analytics for internal auditors, applications of big data and audit data analytics. It further discusses benefits of big data analytics (BDA), concerns and challenges which are likely to affect the auditors deeply but do not yet have perfect solutions. As there has been a big hype about BDA and auditors claim that BDA is the future, auditors need to reshape their talent, professional qualifications, skills, and competencies in order to meet the emerging technological challenges. At the end, the paper suggests the need for updating the accounting curriculum at the university and professional accounting bodies levels and also gives direction for future research.
{"title":"Continuous internal auditing: can big data analytics help","authors":"P. Joshi, G. Marthandan","doi":"10.1504/ijaape.2020.10028479","DOIUrl":"https://doi.org/10.1504/ijaape.2020.10028479","url":null,"abstract":"This paper considers the underlying procedures in big data and its various analytical tools which accountants and auditors may have to use in internal and continuous auditing. It describes the nature and characteristics of big data, distinguishes between traditional, continuous auditing and continuous monitoring, importance of data analytics for internal auditors, applications of big data and audit data analytics. It further discusses benefits of big data analytics (BDA), concerns and challenges which are likely to affect the auditors deeply but do not yet have perfect solutions. As there has been a big hype about BDA and auditors claim that BDA is the future, auditors need to reshape their talent, professional qualifications, skills, and competencies in order to meet the emerging technological challenges. At the end, the paper suggests the need for updating the accounting curriculum at the university and professional accounting bodies levels and also gives direction for future research.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47269002","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 : 2020-04-14DOI: 10.1504/ijaape.2020.10028487
Yosra Mnif Sellami, Hela Borgi
This paper tries to investigate two research questions in eight African countries. First, we examine the effect of country-level corruption culture on compliance with the International Accounting Standard 24 "Related Party Disclosures" (CRPD). Second, we examine the effect of country-level government quality on CRPD. Focusing on a sample of 537 listed African firms over the 2012-2014 period, we use panel regressions. Our results show that corruption is negatively associated with CRPD, while government quality seems not to play a key role in explaining CRPD when corruption is simultaneously considered. This paper contributes to the compliance literature by examining the effect of corruption and government quality on CRPD in African countries, an understudied context where the corruption and the IFRS enforcement are a big problem. It also contributes to the corruption literature that examines the effect of corruption on firm behaviours.
{"title":"Compliance with IFRS for related party transactions across eight African countries: do corruption and government quality matter","authors":"Yosra Mnif Sellami, Hela Borgi","doi":"10.1504/ijaape.2020.10028487","DOIUrl":"https://doi.org/10.1504/ijaape.2020.10028487","url":null,"abstract":"This paper tries to investigate two research questions in eight African countries. First, we examine the effect of country-level corruption culture on compliance with the International Accounting Standard 24 \"Related Party Disclosures\" (CRPD). Second, we examine the effect of country-level government quality on CRPD. Focusing on a sample of 537 listed African firms over the 2012-2014 period, we use panel regressions. Our results show that corruption is negatively associated with CRPD, while government quality seems not to play a key role in explaining CRPD when corruption is simultaneously considered. This paper contributes to the compliance literature by examining the effect of corruption and government quality on CRPD in African countries, an understudied context where the corruption and the IFRS enforcement are a big problem. It also contributes to the corruption literature that examines the effect of corruption on firm behaviours.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41767736","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 : 2020-04-14DOI: 10.1504/ijaape.2020.10028478
Ricardo Luiz Menezes da Silva, P. Nardi
The mandatory International Financial Reporting Standard (IFRS) adoption extended to all companies listed on the stock exchange in Brazil. Some advocates that the quality of financial statements under IFRS is superior, providing many benefits to market participants, such as increased stock liquidity. Liquidity has been less explored in Brazil though, representing a research opportunity without the influence of confounding events. Therefore, the aim of this study is to analyse the effects of mandatory IFRS adoption on stock liquidity in Brazil. The findings confirm the research hypothesis, indicating that the mandatory adoption is not associated with increased stock liquidity. These results can be explained by the limited disclosure incentives. In addition, no change is found in terms of reporting enforcement. Our findings show that the international regulator still faces challenges due to cultural and institutional aspects. The lack of an international regulator casts doubts on greater uniformity in the application of IFRS.
{"title":"Effects of mandatory adoption of IFRS on market liquidity in Brazil","authors":"Ricardo Luiz Menezes da Silva, P. Nardi","doi":"10.1504/ijaape.2020.10028478","DOIUrl":"https://doi.org/10.1504/ijaape.2020.10028478","url":null,"abstract":"The mandatory International Financial Reporting Standard (IFRS) adoption extended to all companies listed on the stock exchange in Brazil. Some advocates that the quality of financial statements under IFRS is superior, providing many benefits to market participants, such as increased stock liquidity. Liquidity has been less explored in Brazil though, representing a research opportunity without the influence of confounding events. Therefore, the aim of this study is to analyse the effects of mandatory IFRS adoption on stock liquidity in Brazil. The findings confirm the research hypothesis, indicating that the mandatory adoption is not associated with increased stock liquidity. These results can be explained by the limited disclosure incentives. In addition, no change is found in terms of reporting enforcement. Our findings show that the international regulator still faces challenges due to cultural and institutional aspects. The lack of an international regulator casts doubts on greater uniformity in the application of IFRS.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44231344","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 : 2019-09-12DOI: 10.1504/IJAAPE.2019.102249
J. Izadi, A. Nazarian, Jinfeng Ye, Ali M. Shahzad
The purpose of this study is to investigate the correlation between accruals and stock return and further the quality of accounting accruals shown in financial statements for shareholders to predict their future returns. This study uses an inimitable location which is provided by FRS3 in the UK to highlight the well-documented accrual anomaly as important components of financial performance to help the users to understand the archived performance of a firm. Specifically, this paper focuses on the accrual anomaly phenomenon in the UK on the adoption of FRS No. 3 for a period from 2008 to 2017. Our result shows that stock returns can be predicted by accruals attributable to accounting misrepresentations. Generally, our findings support the information disclosure due to FRS No. 3. Also, the results are consistent with increased accounting disclosure to help investors protect themselves from inefficiencies and to encourage them to be aware of accurate stock prices in the market.
{"title":"The association between accruals and stock return following FRS3","authors":"J. Izadi, A. Nazarian, Jinfeng Ye, Ali M. Shahzad","doi":"10.1504/IJAAPE.2019.102249","DOIUrl":"https://doi.org/10.1504/IJAAPE.2019.102249","url":null,"abstract":"The purpose of this study is to investigate the correlation between accruals and stock return and further the quality of accounting accruals shown in financial statements for shareholders to predict their future returns. This study uses an inimitable location which is provided by FRS3 in the UK to highlight the well-documented accrual anomaly as important components of financial performance to help the users to understand the archived performance of a firm. Specifically, this paper focuses on the accrual anomaly phenomenon in the UK on the adoption of FRS No. 3 for a period from 2008 to 2017. Our result shows that stock returns can be predicted by accruals attributable to accounting misrepresentations. Generally, our findings support the information disclosure due to FRS No. 3. Also, the results are consistent with increased accounting disclosure to help investors protect themselves from inefficiencies and to encourage them to be aware of accurate stock prices in the market.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2019.102249","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41794185","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 : 2019-09-11DOI: 10.1504/IJAAPE.2019.102247
Mohamed Sherif, L. Galloway, H. Zarrouk
The paper explores entrepreneurial orientation (EO) in SMEs in the Middle Eastern state of Abu Dhabi in the United Arab Emirates. We hypothesise that emerging market context and unique UAE business structures will impact the expression and effects of the five dimensions of EO. Using OLS and GMM techniques, our study shows that innovation, risk-taking, pro-activeness and competitive aggressiveness do not correlate positively with performance, but autonomy does. By studying EO in a unique region and amongst SMEs we contribute to the implementation and development of theory in alternative business contexts. We suggest the EO dimensions co-depend, with autonomy a capstone dimension in SMEs upon which the others rely. At a local level, we suggest policy might take steps to encourage autonomy by reducing ownership restrictions, and improve the institutional environment to facilitate risk-taking and, in turn, the other EO dimensions.
{"title":"Performance and entrepreneurial orientation in SMEs: the case of Abu Dhabi","authors":"Mohamed Sherif, L. Galloway, H. Zarrouk","doi":"10.1504/IJAAPE.2019.102247","DOIUrl":"https://doi.org/10.1504/IJAAPE.2019.102247","url":null,"abstract":"The paper explores entrepreneurial orientation (EO) in SMEs in the Middle Eastern state of Abu Dhabi in the United Arab Emirates. We hypothesise that emerging market context and unique UAE business structures will impact the expression and effects of the five dimensions of EO. Using OLS and GMM techniques, our study shows that innovation, risk-taking, pro-activeness and competitive aggressiveness do not correlate positively with performance, but autonomy does. By studying EO in a unique region and amongst SMEs we contribute to the implementation and development of theory in alternative business contexts. We suggest the EO dimensions co-depend, with autonomy a capstone dimension in SMEs upon which the others rely. At a local level, we suggest policy might take steps to encourage autonomy by reducing ownership restrictions, and improve the institutional environment to facilitate risk-taking and, in turn, the other EO dimensions.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2019.102247","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42602773","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 : 2019-09-11DOI: 10.1504/ijaape.2019.10023896
Hossein Sayyadi Tooranloo, P. Azizi
This study aimed to derive the model of ethical values that concern auditing from the Islamic viewpoint using the interpretative structural modelling (ISM) approach. After reviewing the related literature and semi-structured interviews with auditing experts, 15 auditing-related ethical values from the Islamic perspective were identified. The ISM method was then used to determine the levels and priorities of identified values and their relationships with each other. Finally, a MICMAC diagram analysis was performed to determine the driving power and dependence power of the values. In the MICMAC analysis, the ethical value independence was found to have a strong driving power (15) and a weak dependence power (6), and thus recognised as the cornerstone of the audit profession. The value objectivity in investigation and avoiding preconception was found to have a weak driving power (6) and a strong dependence power (15), reflecting a strong dependence on its lower levels.
{"title":"Ethical values in auditing from Islamic perspective","authors":"Hossein Sayyadi Tooranloo, P. Azizi","doi":"10.1504/ijaape.2019.10023896","DOIUrl":"https://doi.org/10.1504/ijaape.2019.10023896","url":null,"abstract":"This study aimed to derive the model of ethical values that concern auditing from the Islamic viewpoint using the interpretative structural modelling (ISM) approach. After reviewing the related literature and semi-structured interviews with auditing experts, 15 auditing-related ethical values from the Islamic perspective were identified. The ISM method was then used to determine the levels and priorities of identified values and their relationships with each other. Finally, a MICMAC diagram analysis was performed to determine the driving power and dependence power of the values. In the MICMAC analysis, the ethical value independence was found to have a strong driving power (15) and a weak dependence power (6), and thus recognised as the cornerstone of the audit profession. The value objectivity in investigation and avoiding preconception was found to have a weak driving power (6) and a strong dependence power (15), reflecting a strong dependence on its lower levels.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42086943","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 : 2019-09-11DOI: 10.1504/ijaape.2019.10023902
Osama A. Mah’d, Ghassan H. Mardini, Manal M. Ali
This paper investigates the relationship between three evidence characteristics (namely, sufficiency, reliability, relevance) and audit quality. We employ a multi-method approach that is broken down into two tools; questionnaires and interviews with 103 external auditors working in Jordan, Saudi Arabia and the United Arab Emirates. The current study adopted the decision usefulness theory as a theoretical framework. The main finding of the study revealed that there is a significant relationship between sufficiency and audit quality (both the efficiency and effectiveness of the audit). Interestingly, the results show that reliability and relevance are associated with audit effectiveness, but did not show significant association with audit efficiency. The contribution of the current study is that it increases awareness of the evidence characteristics and their impact on the audit quality. This kind of awareness aids the decision makers to have a better vision that enables them to take sufficient, relevant and reliable decisions.
{"title":"The relationship between evidence characteristics and audit efficiency and effectiveness: evidence from Middle Eastern countries","authors":"Osama A. Mah’d, Ghassan H. Mardini, Manal M. Ali","doi":"10.1504/ijaape.2019.10023902","DOIUrl":"https://doi.org/10.1504/ijaape.2019.10023902","url":null,"abstract":"This paper investigates the relationship between three evidence characteristics (namely, sufficiency, reliability, relevance) and audit quality. We employ a multi-method approach that is broken down into two tools; questionnaires and interviews with 103 external auditors working in Jordan, Saudi Arabia and the United Arab Emirates. The current study adopted the decision usefulness theory as a theoretical framework. The main finding of the study revealed that there is a significant relationship between sufficiency and audit quality (both the efficiency and effectiveness of the audit). Interestingly, the results show that reliability and relevance are associated with audit effectiveness, but did not show significant association with audit efficiency. The contribution of the current study is that it increases awareness of the evidence characteristics and their impact on the audit quality. This kind of awareness aids the decision makers to have a better vision that enables them to take sufficient, relevant and reliable decisions.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48985157","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 : 2019-04-03DOI: 10.1504/IJAAPE.2019.099144
Laurent Lazar
This study investigates the reported goodwill of German listed companies between 2009 and 2014 and focuses on opportunistic behaviour by managers applying the impairment only approach (IOA) in accordance with IAS 36. Contributing to the literature on goodwill accounting, this investigation examines changes of CEOs and companies' financial situation, showing that the profit trend is an indicator of goodwill impairments. The results also indicate that new CEOs show a tendency for big bath accounting when taking office and therefore write off more goodwill than incumbent CEOs. Moreover, managers are more likely to impair goodwill when current earnings are negative, especially after decreases in earnings above the annual average. On the other hand, managers tend to avoid goodwill impairments when earnings decrease significantly but still remain positive.
{"title":"Manager's misinterpretation of goodwill impairments: evidence from German listed companies","authors":"Laurent Lazar","doi":"10.1504/IJAAPE.2019.099144","DOIUrl":"https://doi.org/10.1504/IJAAPE.2019.099144","url":null,"abstract":"This study investigates the reported goodwill of German listed companies between 2009 and 2014 and focuses on opportunistic behaviour by managers applying the impairment only approach (IOA) in accordance with IAS 36. Contributing to the literature on goodwill accounting, this investigation examines changes of CEOs and companies' financial situation, showing that the profit trend is an indicator of goodwill impairments. The results also indicate that new CEOs show a tendency for big bath accounting when taking office and therefore write off more goodwill than incumbent CEOs. Moreover, managers are more likely to impair goodwill when current earnings are negative, especially after decreases in earnings above the annual average. On the other hand, managers tend to avoid goodwill impairments when earnings decrease significantly but still remain positive.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2019.099144","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49468775","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：