Pub Date : 2026-02-09DOI: 10.1016/j.jacceco.2026.101872
Inder K. Khurana, Bing Li, Kelvin Yeung, Elisha J. Yu
Building on economic theories of cultural transmission, we examine how audit partners’ cultural trust influences audit outcomes. Based on the “presumptive doubt” perspective of professional skepticism, we propose that audit partners from trusting cultures are more likely to rely on management’s assertions, while still exercising a high degree of caution and not naively trusting management. Consistent with our prediction, we find that audit partners from trusting cultures commit fewer Type I errors when issuing going concern opinions, without significantly increasing Type II errors. The reduction in Type I errors is primarily found when audit partners normally tend to be more conservative, and it is attenuated when management is less trustworthy. At the same time, audit partners from trusting cultures are also associated with more within-GAAP earnings management, suggesting that increased trust entails a cost. Collectively, our findings offer new insights into how cultural trust affects the assurance of accounting information.
{"title":"Audit Partners’ Cultural Trust and Audit Outcomes","authors":"Inder K. Khurana, Bing Li, Kelvin Yeung, Elisha J. Yu","doi":"10.1016/j.jacceco.2026.101872","DOIUrl":"https://doi.org/10.1016/j.jacceco.2026.101872","url":null,"abstract":"Building on economic theories of cultural transmission, we examine how audit partners’ cultural trust influences audit outcomes. Based on the “presumptive doubt” perspective of professional skepticism, we propose that audit partners from trusting cultures are more likely to rely on management’s assertions, while still exercising a high degree of caution and not naively trusting management. Consistent with our prediction, we find that audit partners from trusting cultures commit fewer Type I errors when issuing going concern opinions, without significantly increasing Type II errors. The reduction in Type I errors is primarily found when audit partners normally tend to be more conservative, and it is attenuated when management is less trustworthy. At the same time, audit partners from trusting cultures are also associated with more within-GAAP earnings management, suggesting that increased trust entails a cost. Collectively, our findings offer new insights into how cultural trust affects the assurance of accounting information.","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"93 1","pages":""},"PeriodicalIF":1.2,"publicationDate":"2026-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146146632","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 : 2026-01-24DOI: 10.1016/j.jacceco.2026.101864
Raphael Duguay, Chenchen Li, Frank Zhang
This paper studies how mandatory greenhouse gas disclosure affects new business formation. We find a significant increase in business entry following the implementation of the Greenhouse Gas Reporting Program in affected industries, relative to unaffected controls. We propose two channels. First, through a production channel, disclosure pressures incumbent firms to reduce emissions by scaling back production or reallocating resources toward cleaner technologies, weakening incumbents’ competitive positions and creating space for new entrants. Second, through an information channel, public disclosure of previously proprietary emissions data helps potential entrepreneurs identify viable entry opportunities. We present evidence consistent with both channels. Incumbent firms reduce economic activity and experience declines in profitability, and entry is concentrated in industries facing greater emissions reductions and public scrutiny. Additionally, regulatory and industry commentary highlights concerns over the proprietary nature of disclosed emissions data. Overall, our findings reveal an unintended yet economically meaningful consequence of environmental disclosure mandates.
{"title":"Mandatory Carbon Disclosure and New Business Creation","authors":"Raphael Duguay, Chenchen Li, Frank Zhang","doi":"10.1016/j.jacceco.2026.101864","DOIUrl":"https://doi.org/10.1016/j.jacceco.2026.101864","url":null,"abstract":"This paper studies how mandatory greenhouse gas disclosure affects new business formation. We find a significant increase in business entry following the implementation of the Greenhouse Gas Reporting Program in affected industries, relative to unaffected controls. We propose two channels. First, through a production channel, disclosure pressures incumbent firms to reduce emissions by scaling back production or reallocating resources toward cleaner technologies, weakening incumbents’ competitive positions and creating space for new entrants. Second, through an information channel, public disclosure of previously proprietary emissions data helps potential entrepreneurs identify viable entry opportunities. We present evidence consistent with both channels. Incumbent firms reduce economic activity and experience declines in profitability, and entry is concentrated in industries facing greater emissions reductions and public scrutiny. Additionally, regulatory and industry commentary highlights concerns over the proprietary nature of disclosed emissions data. Overall, our findings reveal an unintended yet economically meaningful consequence of environmental disclosure mandates.","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"67 1","pages":""},"PeriodicalIF":1.2,"publicationDate":"2026-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146048474","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 : 2026-01-21DOI: 10.1016/j.jacceco.2026.101860
Christine Cuny, Jungbae Kim, Mihir N. Mehta
{"title":"Political costs and strategic corporate communication","authors":"Christine Cuny, Jungbae Kim, Mihir N. Mehta","doi":"10.1016/j.jacceco.2026.101860","DOIUrl":"https://doi.org/10.1016/j.jacceco.2026.101860","url":null,"abstract":"","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"6 1","pages":""},"PeriodicalIF":1.2,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146014784","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 : 2026-01-15DOI: 10.1016/j.jacceco.2026.101861
Ed deHaan, Allen H. Huang, Srijith Kannan, Lu Qiu
{"title":"Social Media Livestreaming: Investor Information or Persuasion?","authors":"Ed deHaan, Allen H. Huang, Srijith Kannan, Lu Qiu","doi":"10.1016/j.jacceco.2026.101861","DOIUrl":"https://doi.org/10.1016/j.jacceco.2026.101861","url":null,"abstract":"","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"88 1","pages":""},"PeriodicalIF":1.2,"publicationDate":"2026-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145995230","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 : 2026-01-06DOI: 10.1016/j.jacceco.2026.101858
Ray Ball
{"title":"On The Economics of Accounting and Contracting in Firms","authors":"Ray Ball","doi":"10.1016/j.jacceco.2026.101858","DOIUrl":"https://doi.org/10.1016/j.jacceco.2026.101858","url":null,"abstract":"","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"28 1","pages":""},"PeriodicalIF":1.2,"publicationDate":"2026-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145902439","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 : 2025-12-06DOI: 10.1016/j.jacceco.2025.101855
David P. Weber, Nina Xu, Kangkang Zhang
{"title":"SEC Scrutiny and Corporate Risk-Taking","authors":"David P. Weber, Nina Xu, Kangkang Zhang","doi":"10.1016/j.jacceco.2025.101855","DOIUrl":"https://doi.org/10.1016/j.jacceco.2025.101855","url":null,"abstract":"","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"15 1","pages":""},"PeriodicalIF":1.2,"publicationDate":"2025-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145689472","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 : 2025-12-05DOI: 10.1016/j.jacceco.2025.101854
Martin Kapons, David Veenman
This paper examines the function of accruals in measuring quarterly firm performance. We show that operating accruals play a pronounced role in offsetting quarterly cash flow fluctuations and that this timing role is much stronger than concluded based on annual measurements in the recent literature. A fundamental driver of this timing role of accruals is the significant seasonal variation in operating cash flows, which is determined by the interaction between sales seasonality and working capital policies. We further find that the seasonality in cash flows and the offsetting role of accruals have declined over time. We link this trend to international diversification, trends in the importance and seasonality of retail sales, zero-inventory firms, market power, and the rise in supply chain finance.
{"title":"Seasonal variation in cash flows and the timing role of accruals","authors":"Martin Kapons, David Veenman","doi":"10.1016/j.jacceco.2025.101854","DOIUrl":"https://doi.org/10.1016/j.jacceco.2025.101854","url":null,"abstract":"This paper examines the function of accruals in measuring quarterly firm performance. We show that operating accruals play a pronounced role in offsetting quarterly cash flow fluctuations and that this timing role is much stronger than concluded based on annual measurements in the recent literature. A fundamental driver of this timing role of accruals is the significant seasonal variation in operating cash flows, which is determined by the interaction between sales seasonality and working capital policies. We further find that the seasonality in cash flows and the offsetting role of accruals have declined over time. We link this trend to international diversification, trends in the importance and seasonality of retail sales, zero-inventory firms, market power, and the rise in supply chain finance.","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"140 1","pages":"101854"},"PeriodicalIF":1.2,"publicationDate":"2025-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145704996","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 : 2025-11-21DOI: 10.1016/j.jacceco.2025.101853
Jinhwan Kim, Kristen Valentine
{"title":"Earnings Targets, Strategic Patent Sales, and Patent Trolls","authors":"Jinhwan Kim, Kristen Valentine","doi":"10.1016/j.jacceco.2025.101853","DOIUrl":"https://doi.org/10.1016/j.jacceco.2025.101853","url":null,"abstract":"","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":"5 1","pages":"101853"},"PeriodicalIF":1.2,"publicationDate":"2025-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145575614","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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