Journal of Accounting in Emerging Economies最新文献

Purpose

This article aims to answer two research questions that remain controversial in the accounting and corporate governance literature: (1) how corporate disclosure is related to board monitoring and (2) how this link is affected by the institutional environment and firm-level governance.

Design/methodology/approach

The study is based on S&P data on corporate disclosure by Russian companies collected over 2002–2010 and supplemented by information from the SKRIN database. The dataset covers 125 non-financial companies, with 559 observations in total. We use three indicators of board monitoring: the percentage of non-executive directors, a dummy for two-tier boards, and a dummy for an audit committee. The firm’s governance is proxied by a dummy for single class stock, while the institutional environment is proxied by a dummy for ADRs/GDRs. We apply conventional methods of panel data analysis with several robustness checks, including the random- and fixed-effects models, 2SLS that addresses the potential endogeneity of board composition, alternative definitions of the dependent variable, and an extended list of controls.

Findings

We find a positive (complementary) relationship between the amount of disclosure and the proxies for board monitoring employed. This complementary relationship turns out to be the strongest among companies that have better internal governance but face a weaker institutional environment. There is little evidence of such complementarity under strong institutions.

Practical implications

The findings may be of interest to investors and policymakers. As to the former, the results warn of firms that provide limited disclosure in the presence of strong corporate governance arrangements, such as independent boards, as these factors are not substitutes for each other. As to the latter, the results support comprehensive policies aimed at simultaneous improvements in both board governance and corporate disclosure in weak institutional settings.

Originality/value

This paper uses a unique setting and rich, partly proprietary data to extend the existing literature on the relationship between corporate disclosure and board monitoring, with an emphasis on the moderating role of the institutional environment and firm-level governance. It is also one of the very few studies of corporate disclosure in Russia, an important emerging economy of the early 2000s.

Purpose

This study examines the relationship between school ties among external auditors and audit committee members, and their joint impact on audit fee. We also examine how the monitoring and executive functions within companies moderate this relationship.

Design/methodology/approach

This study employs a regression analysis model on a sample of companies listed on the Indonesia Stock Exchange from 2016 to 2019, followed by additional analyses using high-low growth and tech samples, as well as robustness tests involving coarsened exact matching (CEM) and Heckman’s (1979) theory to address potential causality issues.

Findings

This study reveals that school ties between external auditors and audit committees positively influence audit fee. The audit committee size weakens this relationship, while the presence of an internal audit enhances it.

Research limitations/implications

This research contributes to the literature related to the relationship between school ties and audit fee in Indonesian public companies, providing insights for stakeholders and informing company policies. It aims to increase awareness of the significance of school ties among Indonesian companies.

Originality/value

This research fills a knowledge gap by examining the link between audit committee-external auditor relationships and audit fees, aiming to generate new insights and empirical evidence to inform future research and regulatory decisions.

Purpose

The purpose of this study is to test whether the prediction of firm performance can be enhanced by incorporating nonfinancial disclosures, such as narrative disclosure tone and corporate governance indicators, into financial predictive models.

Design/methodology/approach

Three predictive models are developed, each with a different set of predictors. This study utilises two machine learning techniques, random forest and stochastic gradient boosting, for prediction via the three models. The data are collected from a sample of 1,250 annual reports of 125 nonfinancial firms in Pakistan for the period 2011–2020.

Findings

Our results indicate that both narrative disclosure tone and corporate governance indicators significantly add to the accuracy of financial predictive models of firm performance.

Practical implications

Our results offer implications for the restoration of investor confidence in the highly uncertain Pakistani market by establishing nonfinancial disclosures as reliable predictors of future firm performance. Accordingly, they encourage investors to pay more attention to these disclosures while making investment decisions. In addition, they urge regulators to promote and strengthen the reporting of such nonfinancial information.

Originality/value

This study addresses the neglect of nonfinancial disclosures in the prediction of firm performance and the scarcity of corporate governance literature relevant to the use of machine learning techniques.

Purpose

This study aims to examine the role of intersubjectivity portrayed in employees’ mundane activities in achieving goal congruence between individual and organizational goals within the performance measurement process.

Design/methodology/approach

Semi-structured in-depth interviews were conducted with five employees as key informants of each department. Observations were carried out unstructured to collect information about key performance indicator (KPI) and their achievements. Combining the interpretative phenomenological analysis (IPA) and Schutz’s phenomenology, the data analysis stage includes coding (interpretation, condensation and categorization of themes) and thematic analysis.

Findings

The findings show employees’ different feelings and actions in achieving their KPIs. Therefore, the anticipations of obstacles in achieving KPI were based on the intersubjective influence of personal goals, company goals, peers, bosses/departments and customers. Thus, in achieving KPI, employees strive to simultaneously achieve personal goals as well as company goals.

Research limitations/implications

Previous literature on management accounting mainly focuses on organizational perspective and less on individual-centred phenomenological perspective. This study tries to fill this gap by exploring how intersubjectivity plays a role in employees’ mundane experiences.

Practical implications

In designing and applying KPI, the company should consider employees’ happiness as it could reflect job satisfaction, leading to high performance.

Originality/value

This study contributes to the literature on goal congruence, performance measurement and management control by extending prior research by Cugueró-Escofet and Rosanas (2013) and Cugueró-Escofet et al. (2019) in empirically portraying how employees perceive goal congruence in the performance measurement process with IPA.

Purpose

This study aims to examine the association between institutional investors’ ownership (IOW), politically connected firms (POCF) and audit report lag (AUDRL).

Design/methodology/approach

This study employs a feasible generalised least squares (FGLS) model for panel data to examine the association between IOW, POCF and AUDRL for Malaysian publicly listed companies.

Findings

The findings reveal a statistically significant negative relationship between IOW and AUDRL, with this negative relationship being more pronounced amongst POCF. Additionally, the results demonstrate that the relationship between IOW and AUDRL varies depending on the domicile of IIs (local vs. foreign). Specifically, local institutional investors exhibit a negative and statistically significant relationship with AUDRL, whilst foreign institutional investors show a positive and statistically significant relationship with AUDRL.

Originality/value

The results of this study provide a new understanding of auditor responses to institutional investor monitoring and political connections (PCs) in an emerging economy.

Purpose

The study aimed to examine the transformation of a non-profit microfinance institution (MFI) into a hybrid social enterprise, and the role of formal and informal controls in reconciling the discordance between the two conflicting (social and commercial) objectives that emerged due to the transformation.

Design/methodology/approach

A case study of a non-governmental MFI located in Southeast Asian country was conducted. This case study drew on the institutional logics perspective as an analytical tool to understand the complexity of change and the mobilisation of management control practices to align two conflicting goals at the core of the MFI’s organisational strategies. This study adopted the interpretive approach and relied on multiple data sources, including semi-structured interviews and documentary evidence.

Findings

The application of commercial principles in the operations of the MFI occurred in several phases. First, the MFI changed from a non-profit business model to a hybrid social enterprise, which pursued a double bottom-line strategy. The informal control practices inherent in the organisation’s culture created a high level of social awareness embedded within a social logic. In contrast, the formal control practices were directly linked to the new commercial logic. The synergy between the two logics was optimised by reinforcing formal and informal control practices.

Originality/value

This study offers insights into the role of control systems in reconciling the discordance between competing social and financial objectives within a non-governmental MFI that enjoys substantial financial and nonfinancial support from the government.