Journal of Corporate Accounting and Finance最新文献

Sustainability reporting was introduced after financial reporting to meet the social and environmental informational needs of stakeholders, while integrated reporting was initiated to integrate financial reporting and sustainability reporting to advance the decision usefulness of corporate disclosure practices. Despite claims and evidence of the value relevance of each reporting framework exclusively, studies on the incremental value relevancies of these subsequent disclosure practices have been sparse. Using a sample of firms from the Johannesburg Stock Exchange from 2011 to 2020 and firms’ capital market liquidity performance, this study finds that sustainability reporting and integrated reporting are not only value-relevant disclosure practices but also offer incremental value relevancies. Sustainability reporting provides incremental value relevance over financial reporting, and integrated reporting offers incremental value relevance over financial reporting and sustainability reporting. However, the findings do not find support for integrated reporting to replace the practices of financial reporting and sustainability reporting and affirm the contribution of each of the three reports in the corporate reporting space.

The article investigates how the devastating repercussions of fraud allegations, as outlined in the Hindenburg report, are actively and critically affecting the stock prices of the Adani Group. This investigation, which explores the foundation of the accused companies' financial health and market trust, is crucial. These ramifications go far beyond Adani Group and are highly relevant to potential investors globally, highlighting the urgent need for a thorough comprehension of these dynamics in the context of the global market environment. The journey from stock market crash to market correction is analyzed using the theoretical lens of Risk Aversion theory. At the same time, the Efficient Market Hypothesis (EMH) assumptions are being tested. The study employs a long-term event study approach to analyze the stock price impact of the Hindenburg report using the Cumulative Abnormal Returns (CAR) methodology. For analysis, a sample of six Adani group companies and relevant stakeholders like creditors, LIC, immediate counterparts of each company, and NIFTY bank indices are considered. The study finds that the stock prices of four out of six Adani Group companies declined significantly after the Hindenburg report, defying the assumptions of the EMH. Risk-seeking investors' regulatory assurance and investment may have helped in a market correction. The associated banks (lenders to Adani) and Banking indices depicted a price decline on the second and third days, which reversed on the fourth day, indicating a diminished spillover effect. Moreover, no competitor besides Tata Power saw abnormally large gains. This study analyses the event from the lens of Risk aversion and tests the assumption of EMH. The study concludes that these findings have practical implications for investors (risk-averse and risk-seeking), policymakers, and researchers.

Product-harm crises are discrete events in which product failures expose consumers to safety hazards. Firms facing such crises must legally recall their products to protect consumers from further harm. In this study, we examine the effects of product-harm crises and their recall strategies on CEO turnover. We find that firms are more likely to replace their CEOs after issuing product recalls, especially for recalls that are proactive and that offer extensive corrective actions. We further find that firms with poor performance and with limited financial flexibility are more likely to dismiss their CEOs after product recalls. Our study contributes to the disciplines of accounting, finance, and management by documenting product-harm crises are a strong predictor of CEO dismissal, that is, incremental to other measures of firm performance for U.S. companies.

The escalating use of digital technologies has spotlighted the crucial role of cybersecurity in safeguarding sensitive information within companies. This study explores the relationship between a firm's major customers and its cybersecurity awareness. Drawing on SEC-mandated disclosures, we employ four proxies to measure changes in customer-supplier relationships. Our findings reveal that customers increase their purchases from suppliers whose cybersecurity awareness scores improve. Additionally, we examine the interplay between customers and suppliers more susceptible to nonpublic adverse news, particularly during cyber events. The study emphasizes the importance of cybersecurity disclosure for regulators, supply chain partners, and corporate management. It also contributes to the literature on factors influencing the duration of customer-supplier relationships and underscores the significance of supplier characteristics. “Understanding and disclosing cybersecurity risks are” paramount in an increasingly digital business landscape.

This paper investigates the effect of CEO characteristics on bank stability of commercial banks in Vietnam. The study used regression models Pooled OLS, Fixed effects Model (FEM), random effects model (REM), and Feasible Generalized Least Square (FGLS) to evaluate the relationship between CEO characteristics and bank stability of 26 commercial banks in Vietnam. To deal with the limitations of traditional regression methods, we propose Bayesian regression method. The data collection period in the study is from 2013 to 2022. In these regression models, CEO power, female CEO, CEO tenure, and CEO age are independent variables. The dependent variable representing bank stability is the Z-score. The research results show that the factors CEO power, female CEO, CEO tenure, CEO age have a positive impact on bank stability in Vietnam.

This paper presents the results of a content analysis of the comment letters submitted in response to the SEC concept release on the enhancements of audit committee disclosures. The comment letters were drafted by investors and a cross-section of various governance actors or practitioners, such as audit committees, management, legal advisers, and auditors. Hence, the letters provide insights as to how these different groups interpret the proposed revisions and try to adapt them according to their needs and context. The comment letters are analyzed through the framework of the behavioral theory of boards and corporate governance, which arguably better explains the analysis results over the traditional agency theory framework. The theory examines governance actors’ interactions and behavioral processes and asserts that the corporation is a nexus of stakeholders’ coalitions, who render decisions primarily through engaging in political bargaining rather than through evaluating investor needs. Results show that, while investors are urging enhanced disclosures, audit committee respondents are against the suggested improvements. These results are consistent with the behavioral theory of boards and corporate governance but inconsistent with an agency theory perspective.

This study examines the firm-level and macroeconomic-level determinants of debt dollarization, which is a critical vulnerability for a key emerging market: Turkey. The study examines the firm-level and macroeconomic determinants of debt dollarization between 2005 and 2017 using the generalized method of moments and the panel vector autoregressive method, both of which are highly innovative. The results show that manufacturing firms tend to dollarize debt, while macroeconomic variables such as the real exchange rate, inflation, and credit expansion significantly affect debt dollarization. Moreover, debt dollarization was found to be a habit of manufacturing firms in the Turkish economy.

This study examines the effect of working capital efficiency on the performance of firms that experience cyberattacks. We find robust evidence that an aggressive working capital policy improves the immediate and after-market stock returns as well as the operating performance of firms that suffer an outside party or a malware hacker attack. Specifically, we document a negative relationship between announcement period abnormal returns and the industry-adjusted cash conversion cycle, implying that investors react less favorably when breached firms have more conservative working capital policies. We also find a negative association between the cash cycle and long-horizon buy-and-hold abnormal returns indicating that working capital efficacy has a protracted positive effect on stock performance after an attack. The cash conversion cycle is also negatively related to operating performance, as measured by industry-adjusted market power, industry-adjusted return on assets, and industry-adjusted market-to-book ratio. In addition, we find that access to trade credit and the ability to delay payments made to suppliers (depicted via days’ payables outstanding) are the most important factors in helping breached firms mitigate the financial and operating costs of cyberattacks. Overall, our results are robust to endogeneity concerns and expand the literature on the firm-level aspects of data breaches.

In this note, we compare the methodologies in academic textbooks and the CFA practitioner's guide while demonstrating which academic approach provides the most consistent valuation metric with practitioners. There are many differences when it comes to the items or approaches considered for free cash flow calculations. Some differences, however, are related to the purpose of the calculated free cash flow, for example, the actual free cash flow a company generates during a certain year versus the free cash flow for firm valuation purposes. This note attempts to address this gap and may serve as a guide to faculty as well as practitioners. In what follows, different expositions of the free cash flow model are explored and compared.

This research examines the relationship between board gender diversity and the cost of debt financing in Latin American and Caribbean firms. We implement the Fuzzy Logistic Autoencoder model, using data for 470 firms spanning 2016–2021 from the Eikon Refinitiv Thomson Reuters database. Our findings suggest that the variables independent board, policy board diversity, sustainable development goal 5, executive gender diversity, and governance consistently demonstrated effects on reducing the short-term and long-term debt cost over the period analyzed. Consequently, the potential benefits of including women on the board of directors are conducive to improving the firm's reputation, which materializes in reducing the cost of debt. The results offer valuable insights to researchers and investors seeking to understand the role of BGD composition within firms and its financial impact.