Pub Date : 2021-08-26DOI: 10.1108/par-02-2021-0020
W. Mehmood, Rasidah Mohd‐Rashid, A. H. Ahmad, Saqib Amin
Purpose The purpose of this paper was to examine whether or not the sponsor lock-up ratio, lock-up period, regulation changes and interaction variable (oversubscription [OSR]) affected initial public offering (IPO) initial return. Design/methodology/approach A complete sample of 111 listed IPOs in Pakistan stock exchange from 1996 to 2018 was incorporated. Based on the cross-section data, this paper estimated using ordinary least square and quantile least square for robustness. In addition to that, this paper estimated the data using stepwise least square to inspect the signalling aspect of the lock-up ratio, lock-up period and regulation changes on IPO initial return. Findings This study showed that the lock-up ratio, lock-up period and regulatory changes had a positive impact on the IPO’s initial return. Furthermore, the assertion of interaction variable (regulation changes × OSR) and (lock-up period × OSR) was a negatively significant factor in influencing the IPO’s initial return. The results of this paper were robust to endogeneity bias. Practical implications The finding of this study proposed that sponsors of IPOs can be a strong signal of risk or quality, which was consistent with the signalling theory prediction. Concurrently, investors must be aware of the total proportions of lock-up ratio so that they can estimate the chances of getting the highest initial return on IPOs. From the regulators’ point of view, it is suggested that the lock-up ratio and the lock-up period should be determined with a deeper understanding and incorporated into the equity guidelines as it is evident that these factors are priced by the market. Originality/value Studies on the effect of sponsors have always been centred on well-recognized firms. Therefore, using the IPO samples listed in Pakistan, this paper contributes to the IPO literature by investigating the lock-up ratio of the sponsor, the lock-up period and the regulatory changes to the initial IPO return. Additionally, OSR has been introduced as an interaction variable among the sponsors’ lock-up period and regulations changes to explain the ongoing IPO initial return phenomenon.
{"title":"Sponsor ownership and IPO initial return: evidence from Pakistan stock exchange","authors":"W. Mehmood, Rasidah Mohd‐Rashid, A. H. Ahmad, Saqib Amin","doi":"10.1108/par-02-2021-0020","DOIUrl":"https://doi.org/10.1108/par-02-2021-0020","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper was to examine whether or not the sponsor lock-up ratio, lock-up period, regulation changes and interaction variable (oversubscription [OSR]) affected initial public offering (IPO) initial return.\u0000\u0000\u0000Design/methodology/approach\u0000A complete sample of 111 listed IPOs in Pakistan stock exchange from 1996 to 2018 was incorporated. Based on the cross-section data, this paper estimated using ordinary least square and quantile least square for robustness. In addition to that, this paper estimated the data using stepwise least square to inspect the signalling aspect of the lock-up ratio, lock-up period and regulation changes on IPO initial return.\u0000\u0000\u0000Findings\u0000This study showed that the lock-up ratio, lock-up period and regulatory changes had a positive impact on the IPO’s initial return. Furthermore, the assertion of interaction variable (regulation changes × OSR) and (lock-up period × OSR) was a negatively significant factor in influencing the IPO’s initial return. The results of this paper were robust to endogeneity bias.\u0000\u0000\u0000Practical implications\u0000The finding of this study proposed that sponsors of IPOs can be a strong signal of risk or quality, which was consistent with the signalling theory prediction. Concurrently, investors must be aware of the total proportions of lock-up ratio so that they can estimate the chances of getting the highest initial return on IPOs. From the regulators’ point of view, it is suggested that the lock-up ratio and the lock-up period should be determined with a deeper understanding and incorporated into the equity guidelines as it is evident that these factors are priced by the market.\u0000\u0000\u0000Originality/value\u0000Studies on the effect of sponsors have always been centred on well-recognized firms. Therefore, using the IPO samples listed in Pakistan, this paper contributes to the IPO literature by investigating the lock-up ratio of the sponsor, the lock-up period and the regulatory changes to the initial IPO return. Additionally, OSR has been introduced as an interaction variable among the sponsors’ lock-up period and regulations changes to explain the ongoing IPO initial return phenomenon.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44822709","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 : 2021-08-25DOI: 10.1108/par-11-2020-0198
Hugo A. Macias, Ruth Alejandra Patiño-Jacinto, M. Castro
Purpose This paper aims to contribute to the emerging literature on accounting education in the COVID-19 context. It proposes expanding the literature in its methodological, geographical and conceptual components. Design/methodology/approach This paper is a qualitative study that used a survey as the method. A total of 122 instructors answered the survey from 22 accounting programmes offered in 11 Colombian cities. The dialogic education model of Paulo Freire is the framework for analysis. Findings The accounting instructors’ response was to move from face-to-face classrooms to online classrooms, using widely known platforms. The instructors quickly learned to use tools that enabled new dialogue mechanisms with the students. The result was, paradoxically, closer communication at a distance. Research limitations/implications The COVID-19 lockdown accelerated the changes in teaching, learning, contextualisation, use of “new” technologies and, above all, practising Freirian dialogue. There is a need to research longer periods and use more data collection and analysis tools. Practical implications Evidence of how to teach accounting en masse from online classrooms in a developing country could accelerate the expansion of virtual accounting programmes. Social implications The new context allows increasing the number of students because it does not require travel to large cities. Originality/value This paper makes three contributions to the literature on accounting education in the COVID-19 context as follows: it describes the phenomenon in Colombia, a context little studied in the international accounting literature; transcends autoethnographic studies, as it is based on a qualitative survey of national scope and analyses the phenomenon based on Paulo Freire’s complete model, which includes context, educational process design and action process.
{"title":"Accounting education in a Latin American country during COVID-19: proximity at a distance","authors":"Hugo A. Macias, Ruth Alejandra Patiño-Jacinto, M. Castro","doi":"10.1108/par-11-2020-0198","DOIUrl":"https://doi.org/10.1108/par-11-2020-0198","url":null,"abstract":"\u0000Purpose\u0000This paper aims to contribute to the emerging literature on accounting education in the COVID-19 context. It proposes expanding the literature in its methodological, geographical and conceptual components.\u0000\u0000\u0000Design/methodology/approach\u0000This paper is a qualitative study that used a survey as the method. A total of 122 instructors answered the survey from 22 accounting programmes offered in 11 Colombian cities. The dialogic education model of Paulo Freire is the framework for analysis.\u0000\u0000\u0000Findings\u0000The accounting instructors’ response was to move from face-to-face classrooms to online classrooms, using widely known platforms. The instructors quickly learned to use tools that enabled new dialogue mechanisms with the students. The result was, paradoxically, closer communication at a distance.\u0000\u0000\u0000Research limitations/implications\u0000The COVID-19 lockdown accelerated the changes in teaching, learning, contextualisation, use of “new” technologies and, above all, practising Freirian dialogue. There is a need to research longer periods and use more data collection and analysis tools.\u0000\u0000\u0000Practical implications\u0000Evidence of how to teach accounting en masse from online classrooms in a developing country could accelerate the expansion of virtual accounting programmes.\u0000\u0000\u0000Social implications\u0000The new context allows increasing the number of students because it does not require travel to large cities.\u0000\u0000\u0000Originality/value\u0000This paper makes three contributions to the literature on accounting education in the COVID-19 context as follows: it describes the phenomenon in Colombia, a context little studied in the international accounting literature; transcends autoethnographic studies, as it is based on a qualitative survey of national scope and analyses the phenomenon based on Paulo Freire’s complete model, which includes context, educational process design and action process.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48890502","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 : 2021-08-19DOI: 10.1108/par-05-2020-0052
Vicente Bicudo de Castro, V. Sridharan
Purpose This paper aims to capture the effects of access to information and deadlines on empowerment and subordinate managers’ effectiveness. The purpose is to contribute to the growing empowerment-related discourse within the management control discipline. Design/methodology/approach To test the hypotheses derived from empowerment theory, this paper collects survey data from 103 middle-level managers. Using a path model that describes all the potential theoretical relations, this study tests the survey data using a boot-strapped linear regression approach. Findings This study finds evidence for both direct and indirect positive effects between access to information and subordinate managers’ performance, which supports the view that empowerment has a partial mediating effect on performance. The study also finds that though the effect of access to information on empowerment is not moderated by the specification of deadlines, empowerment is negatively affected when priorities change with new deadlines. Originality/value This study offers two new insights as follows: First, in addressing the concern relating to the lack of clarity in the extant literature on the role of empowerment, this study finds that empowerment partially mediates the relation between access to information and performance. Second, the study finds that time-based performance targets per se do not affect empowerment as much as the task uncertainty, which arises with frequent changes to such a target.
{"title":"Advancing empowerment research in management control: the effects of access to information and deadlines","authors":"Vicente Bicudo de Castro, V. Sridharan","doi":"10.1108/par-05-2020-0052","DOIUrl":"https://doi.org/10.1108/par-05-2020-0052","url":null,"abstract":"\u0000Purpose\u0000This paper aims to capture the effects of access to information and deadlines on empowerment and subordinate managers’ effectiveness. The purpose is to contribute to the growing empowerment-related discourse within the management control discipline.\u0000\u0000\u0000Design/methodology/approach\u0000To test the hypotheses derived from empowerment theory, this paper collects survey data from 103 middle-level managers. Using a path model that describes all the potential theoretical relations, this study tests the survey data using a boot-strapped linear regression approach.\u0000\u0000\u0000Findings\u0000This study finds evidence for both direct and indirect positive effects between access to information and subordinate managers’ performance, which supports the view that empowerment has a partial mediating effect on performance. The study also finds that though the effect of access to information on empowerment is not moderated by the specification of deadlines, empowerment is negatively affected when priorities change with new deadlines.\u0000\u0000\u0000Originality/value\u0000This study offers two new insights as follows: First, in addressing the concern relating to the lack of clarity in the extant literature on the role of empowerment, this study finds that empowerment partially mediates the relation between access to information and performance. Second, the study finds that time-based performance targets per se do not affect empowerment as much as the task uncertainty, which arises with frequent changes to such a target.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47381952","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 : 2021-08-19DOI: 10.1108/par-07-2020-0091
Qi Chen, Mary Low
Purpose This study aims to use Porter’s hypothesis (PH), which tests whether corporates’ green investment has an impact on their economic performance (EP). The study argues that corporates’ environmental strategy should allow for a “win-win” situation concerning regulatory compliance. Design/methodology/approach The quantitative methodology used PH to test empirically the economic consequences of corporates’ green investment in China. Findings This study indicates that there is a U-shaped relationship between green/environmental investment (EI) and EP. When EI is less, corporates’ EP follows a downward sloping curve until the scale of EI increases and exceeds the “threshold.” From this turning point, EP follows an upward-sloping curve as EI increase. This relationship is more significant in high-polluting companies and state-owned companies. Research limitations/implications The empirical results extend the research field of EI and EP for listed companies in China and cover 1,324 observations over the period 2008–2017. Practical implications First, the authors expand the research on green/EI and EP using firm-level data. Second, the study empirically tests the economic consequences of corporates’ green investment. Third, this study finds a non-linear relationship between green investment and EP due to the heterogeneity of industry attributes and property rights. These findings provide better explanations for the different research conclusions regarding the economic consequences of green investment. Originality/value Compared to global research, China’s research on EI has mainly focused on the macro and industry levels. There is still a lack of micro-level research. The paper addresses this research gap as the authors use firm-level EI data to capture companies’ green investment efforts in environmentally sustainable development and its subsequent impact on EP.
{"title":"Investigating green investment payoff in China","authors":"Qi Chen, Mary Low","doi":"10.1108/par-07-2020-0091","DOIUrl":"https://doi.org/10.1108/par-07-2020-0091","url":null,"abstract":"\u0000Purpose\u0000This study aims to use Porter’s hypothesis (PH), which tests whether corporates’ green investment has an impact on their economic performance (EP). The study argues that corporates’ environmental strategy should allow for a “win-win” situation concerning regulatory compliance.\u0000\u0000\u0000Design/methodology/approach\u0000The quantitative methodology used PH to test empirically the economic consequences of corporates’ green investment in China.\u0000\u0000\u0000Findings\u0000This study indicates that there is a U-shaped relationship between green/environmental investment (EI) and EP. When EI is less, corporates’ EP follows a downward sloping curve until the scale of EI increases and exceeds the “threshold.” From this turning point, EP follows an upward-sloping curve as EI increase. This relationship is more significant in high-polluting companies and state-owned companies.\u0000\u0000\u0000Research limitations/implications\u0000The empirical results extend the research field of EI and EP for listed companies in China and cover 1,324 observations over the period 2008–2017.\u0000\u0000\u0000Practical implications\u0000First, the authors expand the research on green/EI and EP using firm-level data. Second, the study empirically tests the economic consequences of corporates’ green investment. Third, this study finds a non-linear relationship between green investment and EP due to the heterogeneity of industry attributes and property rights. These findings provide better explanations for the different research conclusions regarding the economic consequences of green investment.\u0000\u0000\u0000Originality/value\u0000Compared to global research, China’s research on EI has mainly focused on the macro and industry levels. There is still a lack of micro-level research. The paper addresses this research gap as the authors use firm-level EI data to capture companies’ green investment efforts in environmentally sustainable development and its subsequent impact on EP.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44956685","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 : 2021-08-18DOI: 10.1108/par-01-2020-0005
Shailesh Rastogi, V. Tripathi, Sunaina Kuknor
Purpose The paper aims to explore the informational role of futures volume in the simultaneous relationship between option volume and spot volatility to forecast the volatility of the underlying asset. Design/methodology/approach The generalized method of moments is used to estimate the simultaneous equations of endogeneity between spot volatility and option volume. Futures volume is specified as an exogenous variable in both legs of the estimation of simultaneous equations. However, the future volume is also tested as a dependent variable to prove preference for investment by informed investors in futures along with options. Findings The result indicates that futures volume has a significant association with the bi-directional simultaneous equation estimation between spot volatility and option volume. Moreover, the result of this paper proves that informed investors also prefer futures markets over the spot market. However, there is no change observed in the relationship between option volume and spot volatility due to either call or put options or moneyness. Originality/value The possible role of futures volume in the simultaneous equations between spot volatility and option volume has not yet been researched. This paper pioneers in demonstrating that futures volume is an exogenous variable in the simultaneous equation modeling between spot volatility and option volume. Moreover, in the contemporaneous as well as predictive relationships between spot volatility and option volume, futures volume as an exogenous variable is significant in forecasting spot volatility. In addition to this, the current paper uniquely provides evidence of investment in futures also over the spot market by informed investors.
{"title":"Informational role of futures volume for spot volatility","authors":"Shailesh Rastogi, V. Tripathi, Sunaina Kuknor","doi":"10.1108/par-01-2020-0005","DOIUrl":"https://doi.org/10.1108/par-01-2020-0005","url":null,"abstract":"Purpose The paper aims to explore the informational role of futures volume in the simultaneous relationship between option volume and spot volatility to forecast the volatility of the underlying asset. Design/methodology/approach The generalized method of moments is used to estimate the simultaneous equations of endogeneity between spot volatility and option volume. Futures volume is specified as an exogenous variable in both legs of the estimation of simultaneous equations. However, the future volume is also tested as a dependent variable to prove preference for investment by informed investors in futures along with options. Findings The result indicates that futures volume has a significant association with the bi-directional simultaneous equation estimation between spot volatility and option volume. Moreover, the result of this paper proves that informed investors also prefer futures markets over the spot market. However, there is no change observed in the relationship between option volume and spot volatility due to either call or put options or moneyness. Originality/value The possible role of futures volume in the simultaneous equations between spot volatility and option volume has not yet been researched. This paper pioneers in demonstrating that futures volume is an exogenous variable in the simultaneous equation modeling between spot volatility and option volume. Moreover, in the contemporaneous as well as predictive relationships between spot volatility and option volume, futures volume as an exogenous variable is significant in forecasting spot volatility. In addition to this, the current paper uniquely provides evidence of investment in futures also over the spot market by informed investors.","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44174055","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 : 2021-08-04DOI: 10.1108/par-09-2020-0129
B. Knox
Purpose Managerial accounting education generally insists that managers should never consider sunk costs. This suggestion seems inconsistent with a common mode of thinking about future rewards: quasi-hyperbolic discounting. This paper aims to explore the conflict between sunk cost consideration and quasi-hyperbolic discounting and to illustrate when sunk cost consideration may be appropriate. Design/methodology/approach The author conducted three numerical experiments, i.e. simulated experiments based on analytical models, to demonstrate how it can be beneficial to consider sunk costs in some circumstances. All three numerical experiments assume quasi-hyperbolic discounting. First, the author tested considering sunk costs with future rewards that are certain. Second, the author tested considering sunk costs with uncertain future rewards. Finally, the author tested two different educational interventions to change decision-makers’ thought patterns. Findings The author found that considering sunk costs worsens decisions when there is bad news and improves them when there is good news. The author found that an educational intervention that partially dissuades managers from considering sunk costs improves decisions when bad news arrives and worsens them when good news arrives. The author also found that an educational intervention that reduces uncertainty improves decisions when bad news arrives and does not worsen these decisions when good news arrives. Originality/value The author provided numerical examples of situations in which considering sunk costs is valuable. The findings on educational interventions provide information about the tradeoffs of teaching that sunk costs should never be considered.
{"title":"Sunk costs and quasi-hyperbolic discounting: keeping profitable commitments by considering sunk costs","authors":"B. Knox","doi":"10.1108/par-09-2020-0129","DOIUrl":"https://doi.org/10.1108/par-09-2020-0129","url":null,"abstract":"\u0000Purpose\u0000Managerial accounting education generally insists that managers should never consider sunk costs. This suggestion seems inconsistent with a common mode of thinking about future rewards: quasi-hyperbolic discounting. This paper aims to explore the conflict between sunk cost consideration and quasi-hyperbolic discounting and to illustrate when sunk cost consideration may be appropriate.\u0000\u0000\u0000Design/methodology/approach\u0000The author conducted three numerical experiments, i.e. simulated experiments based on analytical models, to demonstrate how it can be beneficial to consider sunk costs in some circumstances. All three numerical experiments assume quasi-hyperbolic discounting. First, the author tested considering sunk costs with future rewards that are certain. Second, the author tested considering sunk costs with uncertain future rewards. Finally, the author tested two different educational interventions to change decision-makers’ thought patterns.\u0000\u0000\u0000Findings\u0000The author found that considering sunk costs worsens decisions when there is bad news and improves them when there is good news. The author found that an educational intervention that partially dissuades managers from considering sunk costs improves decisions when bad news arrives and worsens them when good news arrives. The author also found that an educational intervention that reduces uncertainty improves decisions when bad news arrives and does not worsen these decisions when good news arrives.\u0000\u0000\u0000Originality/value\u0000The author provided numerical examples of situations in which considering sunk costs is valuable. The findings on educational interventions provide information about the tradeoffs of teaching that sunk costs should never be considered.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49442774","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 : 2021-08-04DOI: 10.1108/par-09-2020-0156
S. Yong
Purpose This study aims to highlight the experience of teaching accounting to non-accounting international postgraduates both pre- and during COVID-19. Design/methodology/approach Reflections and anecdotal evidence from 550 students that experienced face-to-face and blended teaching mode in 2019 and 2020 were used. Findings The accounting course is contextualised to non-accounting disciplines. International postgraduates showed varying levels of adaptability towards the blended teaching approach. During the lockdown, students from India were more vocal and sought assistance more than those from China. Chinese students asked for assistance only when it was necessary. Excessive emails from students seeking reassurances and affirmations were common during the lockdown, and therefore, there is a greater need for pastoral care. Research limitations/implications This paper evaluates the impact of COVID-19 on international students enrolled in one accounting course in one university in 2019 and 2020. The comments based on personal observations and experience may result in some subjectivity and bias. Practical implications The findings will help academics, institutional leaders and support staff to evaluate and improve teaching quality and service to international students. Originality/value With the uncertainty caused by COVID-19 and the commercialisation of global education, this study adds to the discussion of teaching accounting to non-accountants during a crisis. It provides insights into the cultural influences and experiential differences relating to teaching international students.
{"title":"A reflective commentary about teaching international non-accounting postgraduates amid COVID-19","authors":"S. Yong","doi":"10.1108/par-09-2020-0156","DOIUrl":"https://doi.org/10.1108/par-09-2020-0156","url":null,"abstract":"Purpose This study aims to highlight the experience of teaching accounting to non-accounting international postgraduates both pre- and during COVID-19. Design/methodology/approach Reflections and anecdotal evidence from 550 students that experienced face-to-face and blended teaching mode in 2019 and 2020 were used. Findings The accounting course is contextualised to non-accounting disciplines. International postgraduates showed varying levels of adaptability towards the blended teaching approach. During the lockdown, students from India were more vocal and sought assistance more than those from China. Chinese students asked for assistance only when it was necessary. Excessive emails from students seeking reassurances and affirmations were common during the lockdown, and therefore, there is a greater need for pastoral care. Research limitations/implications This paper evaluates the impact of COVID-19 on international students enrolled in one accounting course in one university in 2019 and 2020. The comments based on personal observations and experience may result in some subjectivity and bias. Practical implications The findings will help academics, institutional leaders and support staff to evaluate and improve teaching quality and service to international students. Originality/value With the uncertainty caused by COVID-19 and the commercialisation of global education, this study adds to the discussion of teaching accounting to non-accountants during a crisis. It provides insights into the cultural influences and experiential differences relating to teaching international students.","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43134423","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 : 2021-08-02DOI: 10.1108/par-07-2020-0088
Ismaanzira Ismail, Rohami Shafie, K. Ismail
Purpose This paper aims to examine whether conditional conservatism is affected by chief financial officer (CFO) attributes as this issue is understudied in Malaysia. Given that CFOs have a direct responsibility for financial reporting, therefore, their individual attributes are important in influencing conservatism in financial reporting. Design/methodology/approach This study uses non-financial listed firms in the Main Market of Bursa Malaysia from the years 2016 until 2019. Findings The results show that CFOs’ attributes, namely, gender, age, education level and ethnicity, affect earnings conservatism. To test for robustness, the authors use difference-in-difference, propensity score-matching and unconditional conservatism, namely, market-to-book ratio and the authors find the results hold with an exception for age and education level. Further, the effect of these attributes is more profound in non-Big4 audited firms, suggesting that CFO attributes act as a substitute mechanism for lower audit quality. Originality/value This study complements existing studies by documenting the first evidence on the significant effects of CFOs’ attributes in influencing accounting conservatism in an emerging country, namely, Malaysia. This is the first paper, to the humble knowledge, that examines CFOs’ attributes on accounting conservatism in Malaysia.
{"title":"CFO attributes and accounting conservatism: evidence from Malaysia","authors":"Ismaanzira Ismail, Rohami Shafie, K. Ismail","doi":"10.1108/par-07-2020-0088","DOIUrl":"https://doi.org/10.1108/par-07-2020-0088","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine whether conditional conservatism is affected by chief financial officer (CFO) attributes as this issue is understudied in Malaysia. Given that CFOs have a direct responsibility for financial reporting, therefore, their individual attributes are important in influencing conservatism in financial reporting.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses non-financial listed firms in the Main Market of Bursa Malaysia from the years 2016 until 2019.\u0000\u0000\u0000Findings\u0000The results show that CFOs’ attributes, namely, gender, age, education level and ethnicity, affect earnings conservatism. To test for robustness, the authors use difference-in-difference, propensity score-matching and unconditional conservatism, namely, market-to-book ratio and the authors find the results hold with an exception for age and education level. Further, the effect of these attributes is more profound in non-Big4 audited firms, suggesting that CFO attributes act as a substitute mechanism for lower audit quality.\u0000\u0000\u0000Originality/value\u0000This study complements existing studies by documenting the first evidence on the significant effects of CFOs’ attributes in influencing accounting conservatism in an emerging country, namely, Malaysia. This is the first paper, to the humble knowledge, that examines CFOs’ attributes on accounting conservatism in Malaysia.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44240725","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 : 2021-07-30DOI: 10.1108/par-04-2020-0050
N. Prasad, D. Hay, Li Chen
Purpose The purpose of this study is to examine the effect of internal audit function (IAF) use on earnings quality and external audit fees using empirical data collected from the New Zealand (NZ) setting. Design/methodology/approach Applying institutional theory as the underlying framework, this study examines an IAF’s ability to demonstrate legitimacy, which will shed light to the functions long-term survival. Using a unique data set from the NZ setting, which combines information obtained from “The Institute of Internal Auditors of New Zealand” with empirical firm data collected from publicly available sources, multivariate analysis is performed to test the prediction that IAF use is associated with earnings quality, measured using discretionary accruals, and external audit fees. Findings There is strong positive association between IAF use and external audit fees, which supports the complementary controls view, where better internal controls increase audit fees by increasing the demand for scope of external audit work. The authors find no significant relationship between IAF use and earnings quality, which is not entirely surprising. Research limitations/implications The aim is to empirically test the IAF value proposition and to delve deeper into the black box of IAF value drivers. Given the size of the NZ economy and limitations of data availability, total sample size used in this study is relatively modest. However, the analysis does yield significant results. Apart from academic contribution to knowledge, this study offers a profound list of practical contributions. Practitioners will be interested to learn about the IAF value proposition from an empirical viewpoint. Senior management (SM) will obtain value from the outcomes when contemplating IAF investment and sourcing decisions. Regulators will be inherently interested in whether IAFs should be mandated. Originality/value The aim is to empirically test IAF value proposition and to delve deeper into the black box of IAF value drivers. To the best of the authors’ knowledge, this is the first NZ-based academic investigation which examines the relationship between IAF use and earnings quality. Apart from academic contribution to knowledge, this study offers a profound list of practical contributions. Practitioners will be interested to learn about the IAF value proposition from an empirical viewpoint. SM will obtain value from the outcomes when contemplating IAF investment and sourcing decisions. Regulators will be inherently interested in whether IAFs should be mandated.
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