Pub Date : 2023-01-27DOI: 10.1108/arj-06-2021-0179
Matthew Starliper
Purpose In preparing company financial statements, management is required to evaluate internal controls and disclose any material weaknesses in the internal control over financial reporting (ICFR) report. This study aims to examine how the tone of the details management provides to describe a material weakness in its ICFR report impacts investors’ perceptions of the severity of the material weakness and the desirability of the company as a potential investment. Design/methodology/approach This study uses an experimental design that manipulates whether the company’s ICFR report includes a negatively-toned detail to describe a material weakness disclosed in the report. Participants read the report and answer questions concerning their perceptions of the desirability of the company as an investment and the severity of the material weakness. Findings This study finds that using negatively-toned details to describe a material weakness, as opposed to an absence of those details, decreases investment desirability due to an increase in the perceived severity and number of distinct problems in ICFR. Originality/value This study extends prior research by showing that the tone of details used to describe a material weakness, not just the quantity of details, impacts investors’ decision-making. This study shows that management can carefully construct their ICFR report to avoid tone and potentially mitigate the negative effect of disclosing ineffective ICFR.
{"title":"The impact of tone management on investor judgments: evidence from ICFR reports","authors":"Matthew Starliper","doi":"10.1108/arj-06-2021-0179","DOIUrl":"https://doi.org/10.1108/arj-06-2021-0179","url":null,"abstract":"\u0000Purpose\u0000In preparing company financial statements, management is required to evaluate internal controls and disclose any material weaknesses in the internal control over financial reporting (ICFR) report. This study aims to examine how the tone of the details management provides to describe a material weakness in its ICFR report impacts investors’ perceptions of the severity of the material weakness and the desirability of the company as a potential investment.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses an experimental design that manipulates whether the company’s ICFR report includes a negatively-toned detail to describe a material weakness disclosed in the report. Participants read the report and answer questions concerning their perceptions of the desirability of the company as an investment and the severity of the material weakness.\u0000\u0000\u0000Findings\u0000This study finds that using negatively-toned details to describe a material weakness, as opposed to an absence of those details, decreases investment desirability due to an increase in the perceived severity and number of distinct problems in ICFR.\u0000\u0000\u0000Originality/value\u0000This study extends prior research by showing that the tone of details used to describe a material weakness, not just the quantity of details, impacts investors’ decision-making. This study shows that management can carefully construct their ICFR report to avoid tone and potentially mitigate the negative effect of disclosing ineffective ICFR.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2023-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48412733","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 : 2023-01-26DOI: 10.1108/arj-08-2022-0185
Zuhair Barhamzaid
Purpose This study aims to investigate the impact of accounting regulation (AR) on good news (GNs) recognition and conditional conservatism (CC), using the Chinese experiment in the 2006 AR. Design/methodology/approach The current study applies the Basu (1997) model to a sample of 26,755 firm-year observations from 1997 to 2017. Findings The study finds that GNs recognition is significantly reduced and becomes significantly less than bad news recognition under China’s 2006 AR, suggesting that CC is enhanced under China’s 2006 AR. Research limitations/implications This paper excludes the financial sector from the sample. Thus, generalizing results on the financial sector is not appropriate. In addition, the available literature on this topic is limited as it deals with convergence with IFRS, not the full adoption of IFRS. Practical implications The study findings are expected to benefit policymakers and accounting standard setters in controlling GNs recognition and CC as well. Originality/value Whereas prior studies on this topic report their results on CC only, without considering the role of AR on GNs recognition, this paper highlights the role of AR on both GNs recognition and CC as well.
{"title":"The role of accounting regulation on good news recognition and conditional conservatism: evidence from China’s 2006 accounting regulation","authors":"Zuhair Barhamzaid","doi":"10.1108/arj-08-2022-0185","DOIUrl":"https://doi.org/10.1108/arj-08-2022-0185","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the impact of accounting regulation (AR) on good news (GNs) recognition and conditional conservatism (CC), using the Chinese experiment in the 2006 AR.\u0000\u0000\u0000Design/methodology/approach\u0000The current study applies the Basu (1997) model to a sample of 26,755 firm-year observations from 1997 to 2017.\u0000\u0000\u0000Findings\u0000The study finds that GNs recognition is significantly reduced and becomes significantly less than bad news recognition under China’s 2006 AR, suggesting that CC is enhanced under China’s 2006 AR.\u0000\u0000\u0000Research limitations/implications\u0000This paper excludes the financial sector from the sample. Thus, generalizing results on the financial sector is not appropriate. In addition, the available literature on this topic is limited as it deals with convergence with IFRS, not the full adoption of IFRS.\u0000\u0000\u0000Practical implications\u0000The study findings are expected to benefit policymakers and accounting standard setters in controlling GNs recognition and CC as well.\u0000\u0000\u0000Originality/value\u0000Whereas prior studies on this topic report their results on CC only, without considering the role of AR on GNs recognition, this paper highlights the role of AR on both GNs recognition and CC as well.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2023-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49184259","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 : 2023-01-19DOI: 10.1108/arj-01-2021-0024
Senny Harindahyani, Dian Agustia
Purpose This study aims to investigate the effect of assurance provider types on the independent assurance statement quality of Asian companies' sustainability report (SR) and examine environmental risk’s role as a moderating variable. Design/methodology/approach This study analyzes large Asian companies' stand-alone SR using moderated regression analysis to test hypotheses. Textual analysis is conducted to identify environmental risk disclosures. Findings This study shows that accounting assurance providers affect independent assurance statement quality in terms of compliance with assurance statement elements, while nonaccounting assurance providers can better accommodate environmental risk information required by the intended users. Research limitations/implications This study has several limitations. The research focuses on assurance statements and stand-alone SR of large companies in Asia; therefore, future research could examine similar analyses using integrated reports from Asia to investigate whether the results will differ. Additionally, this study does not divide assurance providers into Big-N and non-Big-N; thereby, it can be extended in future research. Practical implications Assurance providers need to consider environmental risk as a critical issue for the intended users to issue a high-quality independent assurance statement. Social implications Assurance statements issued by assurance providers increase public confidence in the reliability of the information contained in the SR. Therefore, regulators are expected to immediately set mandatory standards for sustainability assurance practices. Originality/value This study proves that accounting assurance providers can improve assurance statement quality. The variable environmental risk is also proven to be a pure moderator in negatively interacting the effect of assurance provider types on independent assurance statement quality.
{"title":"The assurance providers’ role in improving the independent assurance statement quality on sustainability reporting","authors":"Senny Harindahyani, Dian Agustia","doi":"10.1108/arj-01-2021-0024","DOIUrl":"https://doi.org/10.1108/arj-01-2021-0024","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the effect of assurance provider types on the independent assurance statement quality of Asian companies' sustainability report (SR) and examine environmental risk’s role as a moderating variable.\u0000\u0000\u0000Design/methodology/approach\u0000This study analyzes large Asian companies' stand-alone SR using moderated regression analysis to test hypotheses. Textual analysis is conducted to identify environmental risk disclosures.\u0000\u0000\u0000Findings\u0000This study shows that accounting assurance providers affect independent assurance statement quality in terms of compliance with assurance statement elements, while nonaccounting assurance providers can better accommodate environmental risk information required by the intended users.\u0000\u0000\u0000Research limitations/implications\u0000This study has several limitations. The research focuses on assurance statements and stand-alone SR of large companies in Asia; therefore, future research could examine similar analyses using integrated reports from Asia to investigate whether the results will differ. Additionally, this study does not divide assurance providers into Big-N and non-Big-N; thereby, it can be extended in future research.\u0000\u0000\u0000Practical implications\u0000Assurance providers need to consider environmental risk as a critical issue for the intended users to issue a high-quality independent assurance statement.\u0000\u0000\u0000Social implications\u0000Assurance statements issued by assurance providers increase public confidence in the reliability of the information contained in the SR. Therefore, regulators are expected to immediately set mandatory standards for sustainability assurance practices.\u0000\u0000\u0000Originality/value\u0000This study proves that accounting assurance providers can improve assurance statement quality. The variable environmental risk is also proven to be a pure moderator in negatively interacting the effect of assurance provider types on independent assurance statement quality.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2023-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41762144","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 : 2023-01-19DOI: 10.1108/arj-07-2020-0217
M. Salehi, Ahmad Asadian, Ehsan Khansalar
Purpose This study aims to evaluate the effects of intellectual capital (IC) efficiency and its components on audit fee stickiness (AFS), such as human capital (HC), organisational capital (OC), structural capital (SC) and relational capital (RC). Moreover, the moderating roles of audit industry specialisation (AIS), tenure and auditors’ market concentration are also estimated. Design/methodology/approach This study’s method is descriptive-correlational based on the information disclosed by listed firms on the Tehran Stock Exchange from 2012 to 2018 using 1,316 year-firm. The method used for hypothesis testing is linear regression using panel data. Findings The results show that all the intellectual capital components (ICCs), including HC, SC, OC and RC, negatively impact audit fees (AFS). Further analyses also show that the AIS moderates the relationship between ICCs and AFS. Originality/value This paper is one of the pioneer studies assessing the auditors’ response to the riskless environments driven by existing IC.
{"title":"The effect of intellectual capital on audit fees stickiness","authors":"M. Salehi, Ahmad Asadian, Ehsan Khansalar","doi":"10.1108/arj-07-2020-0217","DOIUrl":"https://doi.org/10.1108/arj-07-2020-0217","url":null,"abstract":"\u0000Purpose\u0000This study aims to evaluate the effects of intellectual capital (IC) efficiency and its components on audit fee stickiness (AFS), such as human capital (HC), organisational capital (OC), structural capital (SC) and relational capital (RC). Moreover, the moderating roles of audit industry specialisation (AIS), tenure and auditors’ market concentration are also estimated.\u0000\u0000\u0000Design/methodology/approach\u0000This study’s method is descriptive-correlational based on the information disclosed by listed firms on the Tehran Stock Exchange from 2012 to 2018 using 1,316 year-firm. The method used for hypothesis testing is linear regression using panel data.\u0000\u0000\u0000Findings\u0000The results show that all the intellectual capital components (ICCs), including HC, SC, OC and RC, negatively impact audit fees (AFS). Further analyses also show that the AIS moderates the relationship between ICCs and AFS.\u0000\u0000\u0000Originality/value\u0000This paper is one of the pioneer studies assessing the auditors’ response to the riskless environments driven by existing IC.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2023-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43532388","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose Sustainable development has become a strategic priority for companies. The purpose of this study is to explain what paths a company can take to reconfigure its business model and corporate reporting tools in line with the United Nations’ Sustainable Development Goals (SDGs). Design/methodology/approach The research used a qualitative approach and drew on stakeholder and legitimacy theories to collect primary and secondary data through in-depth interviews, semi-structured questionnaires and observation of corporate documents. Findings Sustainability and climate change issues’ relevance in the business model and reporting requires improvement so that stakeholders can participate and become aware of the actions put in place to limit the climate challenge. Research limitations/implications The results of the case study cannot be subjected to statistical generalisation, as they focus on the Italian context and do not capture the regulatory divergence of different countries. Practical implications The results can help managers experiment with, orient, test and implement business model transformations to increase the level of sustainability within an organisation. In addition, disclosure of climate change risks and opportunities for the company and the resulting impacts, including financial impacts, is now recognised as a key urgency to support the achievement of the SDGs and the stakeholder decision-making process. Originality/value This study contributes to the literature by focusing on necessary developments for governance and strategy and on climate change disclosure to support investors’ and other stakeholders’ decision-making processes for corporate social responsibility.
{"title":"Climate-related financial disclosure in integrated reporting: what is the impact on the business model? The case of Poste Italiane","authors":"Graziana Galeone, Grazia Onorato, Matilda Shini, Vittorio Dell’Atti","doi":"10.1108/arj-04-2022-0107","DOIUrl":"https://doi.org/10.1108/arj-04-2022-0107","url":null,"abstract":"\u0000Purpose\u0000Sustainable development has become a strategic priority for companies. The purpose of this study is to explain what paths a company can take to reconfigure its business model and corporate reporting tools in line with the United Nations’ Sustainable Development Goals (SDGs).\u0000\u0000\u0000Design/methodology/approach\u0000The research used a qualitative approach and drew on stakeholder and legitimacy theories to collect primary and secondary data through in-depth interviews, semi-structured questionnaires and observation of corporate documents.\u0000\u0000\u0000Findings\u0000Sustainability and climate change issues’ relevance in the business model and reporting requires improvement so that stakeholders can participate and become aware of the actions put in place to limit the climate challenge.\u0000\u0000\u0000Research limitations/implications\u0000The results of the case study cannot be subjected to statistical generalisation, as they focus on the Italian context and do not capture the regulatory divergence of different countries.\u0000\u0000\u0000Practical implications\u0000The results can help managers experiment with, orient, test and implement business model transformations to increase the level of sustainability within an organisation. In addition, disclosure of climate change risks and opportunities for the company and the resulting impacts, including financial impacts, is now recognised as a key urgency to support the achievement of the SDGs and the stakeholder decision-making process.\u0000\u0000\u0000Originality/value\u0000This study contributes to the literature by focusing on necessary developments for governance and strategy and on climate change disclosure to support investors’ and other stakeholders’ decision-making processes for corporate social responsibility.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2023-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43713485","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 : 2023-01-05DOI: 10.1108/arj-12-2021-0359
Nader Elsayed, Hazem Ramadan Ismael, Shahriar M. Saadullah
Purpose Drawing on experiential learning theory (ELT), this study aims to examine students’ performance and perceptions after performing an experiential learning activity (ELA) by completing a mini-audit simulation (AS) on the purchase and cash disbursement processes in a distance-learning environment at a Gulf Cooperation Council (GCC) university. Design/methodology/approach Adopting a mixed-methods approach, we collected quantitative and qualitative data from 176 students using the grade centre on Blackboard and their responses to a semi-structured questionnaire. Findings The pre-and post-simulation tests indicate significant improvement in students’ understanding and performance after performing the mini-AS. The students’ responses also provide robust evidence of student engagement, active participation and positive recognition of the AS’s value. Practical implications This study has several implications: for the accounting education literature, how AS strengthens in-depth learning through the lens of ELT; for professional accounting bodies, informing the need to maximise the awareness and benefits of adopting simulations in accounting education and examination; and for educators, considering simulations in their ELAs to enhance student learning. Originality/value This study introduces a new authentic mini-AS instrument that can be adapted to a distance-learning setting, adds to the very limited studies in AS using ELT, uses a mixed-methods approach and explores students who learn in an Arabic-speaking country.
{"title":"Enhancing students’ understanding and performance in a distance-learning setting: evidence from an audit simulation at a GCC university","authors":"Nader Elsayed, Hazem Ramadan Ismael, Shahriar M. Saadullah","doi":"10.1108/arj-12-2021-0359","DOIUrl":"https://doi.org/10.1108/arj-12-2021-0359","url":null,"abstract":"\u0000Purpose\u0000Drawing on experiential learning theory (ELT), this study aims to examine students’ performance and perceptions after performing an experiential learning activity (ELA) by completing a mini-audit simulation (AS) on the purchase and cash disbursement processes in a distance-learning environment at a Gulf Cooperation Council (GCC) university.\u0000\u0000\u0000Design/methodology/approach\u0000Adopting a mixed-methods approach, we collected quantitative and qualitative data from 176 students using the grade centre on Blackboard and their responses to a semi-structured questionnaire.\u0000\u0000\u0000Findings\u0000The pre-and post-simulation tests indicate significant improvement in students’ understanding and performance after performing the mini-AS. The students’ responses also provide robust evidence of student engagement, active participation and positive recognition of the AS’s value.\u0000\u0000\u0000Practical implications\u0000This study has several implications: for the accounting education literature, how AS strengthens in-depth learning through the lens of ELT; for professional accounting bodies, informing the need to maximise the awareness and benefits of adopting simulations in accounting education and examination; and for educators, considering simulations in their ELAs to enhance student learning.\u0000\u0000\u0000Originality/value\u0000This study introduces a new authentic mini-AS instrument that can be adapted to a distance-learning setting, adds to the very limited studies in AS using ELT, uses a mixed-methods approach and explores students who learn in an Arabic-speaking country.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45600397","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-23DOI: 10.1108/arj-06-2021-0168
Fabio Santini, Luca Elisei, T. Malmi, L. Scrucca
Purpose Interest has grown in how management controls operate together as a package of interrelated mechanisms. This study aims to contribute to the topic by focusing on a single industry in one country, addressing controls in medium-sized enterprises (MEs). It explores how accounting and other forms of control commonly combine and the associations these combinations have with firm characteristics and context. Design/methodology/approach This study used a cross-sectional sample of 242 firms. Data were collected in 2015 from a survey of the Italian mechanical-engineering industry. Findings The MEs studied used two different control configurations. One group relatively strongly emphasized most studied controls, except for centralizing decision-making and strong hierarchy; the other relied on centralization and emphasized other controls less. Size, task programmability, outcome measurability, complexity in terms of the extensiveness of the product range and environmental unpredictability can predict the configuration in use. Originality/value No broad-based empirical evidence on control configurations in MEs currently exists. Previous research has focused on to what extent control systems affect business effectiveness or efficiency, without assessing how, and in which contexts, they combine.
{"title":"Management-control-system configurations in medium-sized mechanical-engineering firms: an exploratory analysis","authors":"Fabio Santini, Luca Elisei, T. Malmi, L. Scrucca","doi":"10.1108/arj-06-2021-0168","DOIUrl":"https://doi.org/10.1108/arj-06-2021-0168","url":null,"abstract":"\u0000Purpose\u0000Interest has grown in how management controls operate together as a package of interrelated mechanisms. This study aims to contribute to the topic by focusing on a single industry in one country, addressing controls in medium-sized enterprises (MEs). It explores how accounting and other forms of control commonly combine and the associations these combinations have with firm characteristics and context.\u0000\u0000\u0000Design/methodology/approach\u0000This study used a cross-sectional sample of 242 firms. Data were collected in 2015 from a survey of the Italian mechanical-engineering industry.\u0000\u0000\u0000Findings\u0000The MEs studied used two different control configurations. One group relatively strongly emphasized most studied controls, except for centralizing decision-making and strong hierarchy; the other relied on centralization and emphasized other controls less. Size, task programmability, outcome measurability, complexity in terms of the extensiveness of the product range and environmental unpredictability can predict the configuration in use.\u0000\u0000\u0000Originality/value\u0000No broad-based empirical evidence on control configurations in MEs currently exists. Previous research has focused on to what extent control systems affect business effectiveness or efficiency, without assessing how, and in which contexts, they combine.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48553444","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-08DOI: 10.1108/arj-09-2021-0258
Robert Rickards, Rolf Ritsert
Purpose This paper explores the comprehensiveness of management accountants’ planning and the resource consumption associated with it in Chinese small enterprises (SEs). Design/methodology/approach The methodology involves correlation and regression analyses of online survey responses. Findings The study findings are as follows: planning comprehensiveness and the resource consumption associated with it vary greatly across Chinese SEs; there is a trade-off between these two aspects of planning; and provision of linkages within and across plan types, employment of valuation analytics and the use of future-oriented techniques and tools, as well as joint venturing with a foreign partner explain roughly three-quarters of the observed differences in planning behavior. Research limitations/implications With no readily accessible source to ensure random selection of the units of analysis, this study relies on a convenience sample. Participants’ survey responses may contain a residual element of key informant bias. Originality/value This study uses primary data exclusively. It demonstrates a general trade-off between the comprehensiveness of management accountants’ planning and the associated resource consumption in Chinese SEs. Its novelty also derives from an approach that explains intercompany differences in the observed behavior via variables heretofore seldom used in empirical research.
{"title":"Planning comprehensiveness and resource consumption in Chinese small enterprises","authors":"Robert Rickards, Rolf Ritsert","doi":"10.1108/arj-09-2021-0258","DOIUrl":"https://doi.org/10.1108/arj-09-2021-0258","url":null,"abstract":"\u0000Purpose\u0000This paper explores the comprehensiveness of management accountants’ planning and the resource consumption associated with it in Chinese small enterprises (SEs).\u0000\u0000\u0000Design/methodology/approach\u0000The methodology involves correlation and regression analyses of online survey responses.\u0000\u0000\u0000Findings\u0000The study findings are as follows: planning comprehensiveness and the resource consumption associated with it vary greatly across Chinese SEs; there is a trade-off between these two aspects of planning; and provision of linkages within and across plan types, employment of valuation analytics and the use of future-oriented techniques and tools, as well as joint venturing with a foreign partner explain roughly three-quarters of the observed differences in planning behavior.\u0000\u0000\u0000Research limitations/implications\u0000With no readily accessible source to ensure random selection of the units of analysis, this study relies on a convenience sample. Participants’ survey responses may contain a residual element of key informant bias.\u0000\u0000\u0000Originality/value\u0000This study uses primary data exclusively. It demonstrates a general trade-off between the comprehensiveness of management accountants’ planning and the associated resource consumption in Chinese SEs. Its novelty also derives from an approach that explains intercompany differences in the observed behavior via variables heretofore seldom used in empirical research.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46545799","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-30DOI: 10.1108/arj-09-2021-0249
Kathleen M. Bakarich, A. S. Marcy, Patrick E. O’Brien
Purpose This study aims to investigate the effects of COVID-19 working arrangements on role stress, burnout and turnover intentions in public accounting professionals. Additionally, while all professionals have had to adapt to this rapid change in working environment, this paper explores whether the impact of this transition differs depending on demographic factors, namely, rank, gender, firm size and service line. Design/methodology/approach The authors survey 159 public accountants working in audit and tax on their perceptions of role stress, burnout and turnover intentions before COVID-19 and since. The survey used validated instruments from prior literature to capture these measures. Findings Results show that role stress, burnout and turnover intentions increased significantly since remote work began. Specifically, the rank of accountants significantly affects this association, with staff experiencing the most significant increases in role stress and burnout and seniors reporting significantly higher intentions to leave their current firms. Females experience a significant increase in feelings of emotional exhaustion and turnover intention, while males experience a significant increase in feelings of depersonalization and role overload. Finally, there is a positive association between firm size and burnout, with employees from national/midsize firms experiencing the largest increase in feelings of emotional exhaustion, reduced personal accomplishment and depersonalization. Originality/value Given that all prior research on role stressors, burnout tendencies and turnover intentions in the context of public accounting was conducted in the pre-COVID-19 work environment, this paper examines a timely and significant event that is likely to have a long-lasting impact on the way in which people work. As accounting firms seek to develop new working models and promote well-being among their employees, they should take note of the findings of this study that gender, rank and firm size result in differential impacts on role stress, burnout and turnover intentions.
{"title":"Has the fever left a burn?A study of the impact of COVID-19 remote working arrangements on public accountants’ burnout","authors":"Kathleen M. Bakarich, A. S. Marcy, Patrick E. O’Brien","doi":"10.1108/arj-09-2021-0249","DOIUrl":"https://doi.org/10.1108/arj-09-2021-0249","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the effects of COVID-19 working arrangements on role stress, burnout and turnover intentions in public accounting professionals. Additionally, while all professionals have had to adapt to this rapid change in working environment, this paper explores whether the impact of this transition differs depending on demographic factors, namely, rank, gender, firm size and service line.\u0000\u0000\u0000Design/methodology/approach\u0000The authors survey 159 public accountants working in audit and tax on their perceptions of role stress, burnout and turnover intentions before COVID-19 and since. The survey used validated instruments from prior literature to capture these measures.\u0000\u0000\u0000Findings\u0000Results show that role stress, burnout and turnover intentions increased significantly since remote work began. Specifically, the rank of accountants significantly affects this association, with staff experiencing the most significant increases in role stress and burnout and seniors reporting significantly higher intentions to leave their current firms. Females experience a significant increase in feelings of emotional exhaustion and turnover intention, while males experience a significant increase in feelings of depersonalization and role overload. Finally, there is a positive association between firm size and burnout, with employees from national/midsize firms experiencing the largest increase in feelings of emotional exhaustion, reduced personal accomplishment and depersonalization.\u0000\u0000\u0000Originality/value\u0000Given that all prior research on role stressors, burnout tendencies and turnover intentions in the context of public accounting was conducted in the pre-COVID-19 work environment, this paper examines a timely and significant event that is likely to have a long-lasting impact on the way in which people work. As accounting firms seek to develop new working models and promote well-being among their employees, they should take note of the findings of this study that gender, rank and firm size result in differential impacts on role stress, burnout and turnover intentions.\u0000","PeriodicalId":45591,"journal":{"name":"Accounting Research Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"62029648","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 : 2022-08-15DOI: 10.1108/arj-01-2022-0002
V. Tawiah, Hela Borgi
Purpose This paper aims to examine the effect of eXtensible Business Reporting Language (XBRL) adoption on financial reporting quality at the country-level (developing and developed countries). Design/methodology/approach This study uses data from 98 developed and developing countries between 2005 and 2018. This study collected data from various sources such as the World Economic Forum, World Development Indicators, World Governance Indicators and XBRL website. Findings The results show that XBRL is associated with an increased financial reporting quality. However, the relationship is stronger in developing countries than in developed countries. This study also finds that the results remain the same after accounting for years of XBRL experience and the effect of accounting globalisation. The results are consistent with the assumption that XBRL-formatted financial statements improve information efficiency through increased searching efficiency, quality of display and comparability. The results are robust to alternative econometric modifications such as controlling for country, year effects and endogeneity. Practical implications The results can potentially assist the XBRL promoters and regulators in expeditiously assessing the benefits of XBRL and advocating its adoption by many countries. The findings offer more motivations for regulators around the world to mandate this new filing standard format. Originality/value This study contributes to the literature by providing empirical evidence on the consequences of XBRL at the country level. This study provides evidence on an important question of whether the XBRL, new information technology in the accounting field, can play a useful role in improving financial reporting.
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