Pub Date : 2021-10-05DOI: 10.1108/par-09-2020-0141
Zhongtian Li, Jing Jia
Purpose This study aims to examine whether announcements of mandatory sustainability disclosure affect corporate sustainability performance (CSP). Design/methodology/approach The authors use a quasi-experiment provided by mandatory sustainability disclosure announcements that occurred in 21 countries from 2006–2016. A difference-in-differences method is adopted. The authors restrict the drawing of all candidate treatment and control firms to a pool of firms that did not disclose sustainability information one year before the announcements. Findings The authors find that the announcements of mandatory sustainability disclosure are positively related to CSP. The positive effect is more pronounced for firms in countries with higher anticipation effects and lower awareness effects. Specifically, the authors find that the effect of the announcements is more pronounced in a country where the rule of law is higher and stakeholders are less likely to initiate communication about sustainability with firms, and with fewer active participants in and signatories to the United Nations Global Compact initiative. The findings hold under different robustness analyses. Originality/value The study enriches the knowledge about the effect of the announcements of comprehensive mandatory sustainability disclosure by analysing the consequences of these announcements. In the contribution to this growing stream of research, the authors provide evidence on the consequences of the announcements based on a cross-country sample and importantly, focusses on the non-economic consequences.
{"title":"Effect of mandatory sustainability disclosure announcements:cross-country evidence","authors":"Zhongtian Li, Jing Jia","doi":"10.1108/par-09-2020-0141","DOIUrl":"https://doi.org/10.1108/par-09-2020-0141","url":null,"abstract":"Purpose\u0000This study aims to examine whether announcements of mandatory sustainability disclosure affect corporate sustainability performance (CSP).\u0000\u0000\u0000Design/methodology/approach\u0000The authors use a quasi-experiment provided by mandatory sustainability disclosure announcements that occurred in 21 countries from 2006–2016. A difference-in-differences method is adopted. The authors restrict the drawing of all candidate treatment and control firms to a pool of firms that did not disclose sustainability information one year before the announcements.\u0000\u0000\u0000Findings\u0000The authors find that the announcements of mandatory sustainability disclosure are positively related to CSP. The positive effect is more pronounced for firms in countries with higher anticipation effects and lower awareness effects. Specifically, the authors find that the effect of the announcements is more pronounced in a country where the rule of law is higher and stakeholders are less likely to initiate communication about sustainability with firms, and with fewer active participants in and signatories to the United Nations Global Compact initiative. The findings hold under different robustness analyses.\u0000\u0000\u0000Originality/value\u0000The study enriches the knowledge about the effect of the announcements of comprehensive mandatory sustainability disclosure by analysing the consequences of these announcements. In the contribution to this growing stream of research, the authors provide evidence on the consequences of the announcements based on a cross-country sample and importantly, focusses on the non-economic consequences.","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48884146","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 : 2021-10-04DOI: 10.1108/par-10-2020-0193
Maria Ming Bengtsson
Purpose The purpose of this paper is to systematically review extant studies on what makes a country fully, partially or not adopt international financial reporting standards (IFRS) and categorize these factors into meaningful categories. In so doing, this study facilitates policy-making for accounting and economic standard setters and also points out conflicting viewpoints in the current literature, thus, opportunities for future research. Design/methodology/approach This paper is a literature review on academic studies that examine factors influencing national adoption of IFRS. The reviewed articles are limited to published, peer-reviewed papers only. Findings Overall, the review suggests that although a wide range of determinants on national adoption of IFRS has been identified, prior literature consists of conflicting viewpoints on what influence national accounting policies toward IFRS, thus, highlighting areas in which there are needs for future research. Research limitations/implications First, this study focuses only on the de jure adoption of IFRS. Second, the study focuses mainly on research findings, not theory use in the extant literature. Originality/value To the best of the author’s knowledge, this is the first study, which provides a comprehensive review of studies on de jure IFRS adoption.
{"title":"Determinants of de jure adoption of international financial reporting standards: a review","authors":"Maria Ming Bengtsson","doi":"10.1108/par-10-2020-0193","DOIUrl":"https://doi.org/10.1108/par-10-2020-0193","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to systematically review extant studies on what makes a country fully, partially or not adopt international financial reporting standards (IFRS) and categorize these factors into meaningful categories. In so doing, this study facilitates policy-making for accounting and economic standard setters and also points out conflicting viewpoints in the current literature, thus, opportunities for future research.\u0000\u0000\u0000Design/methodology/approach\u0000This paper is a literature review on academic studies that examine factors influencing national adoption of IFRS. The reviewed articles are limited to published, peer-reviewed papers only.\u0000\u0000\u0000Findings\u0000Overall, the review suggests that although a wide range of determinants on national adoption of IFRS has been identified, prior literature consists of conflicting viewpoints on what influence national accounting policies toward IFRS, thus, highlighting areas in which there are needs for future research.\u0000\u0000\u0000Research limitations/implications\u0000First, this study focuses only on the de jure adoption of IFRS. Second, the study focuses mainly on research findings, not theory use in the extant literature.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this is the first study, which provides a comprehensive review of studies on de jure IFRS adoption.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43105491","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 : 2021-09-17DOI: 10.1108/par-09-2020-0172
Frederick Ng
Purpose The purpose of this paper is to discuss the roles of accounting for university survival, recovery and revolution from the COVID-19 pandemic. It constructively critiques the use of compliance and cost-centric accounting to inform crisis response and proposes roles for accounting to better serve decision-making in a crisis. Design/methodology/approach This paper discusses limitations about how accounting information was used in a university’s response to the COVID-19 pandemic. This paper describes potential roles for accounting across crisis phases. These proposals recognise requirements arising from the university’s regulatory environment and apply concepts from intellectual capital accounting and service-dominant logic. Findings This paper proposes that in the survival phase, accounting can mitigate rash responses by clarifying the crisis’s impact and stakeholder alignment. In the recovery phase, accounting can inform resourcing decisions by balancing signals from accounting about staff expense and capital investment. In the revolution phase, accounting helps develop the business models needed to adapt to changing student needs, hybrid teaching delivery and importance of intellectual capital. Research limitations/implications The case study discusses the early stages of a university’s response to the COVID-19 pandemic. It does not provide a comprehensive analysis of success or failure of accounting in a crisis. The case raises directions for accounting to clarify the ambiguities in objectives and cause-and-effect relationships from the pandemic. Practical implications This paper proposes actions for accounting to support the survival, recovery and revolution of the university sector from the pandemic. The actions cover stakeholder engagement, university sector governance and strategic planning. Originality/value This paper proposes a lifecycle of accounting roles at different stages of the COVID-19 response that reflects requirements from the university’s regulatory environment and draws on intellectual capital and service-dominant logic literature.
{"title":"Accounting at your service: university survival recovery and revolution from COVID-19","authors":"Frederick Ng","doi":"10.1108/par-09-2020-0172","DOIUrl":"https://doi.org/10.1108/par-09-2020-0172","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to discuss the roles of accounting for university survival, recovery and revolution from the COVID-19 pandemic. It constructively critiques the use of compliance and cost-centric accounting to inform crisis response and proposes roles for accounting to better serve decision-making in a crisis.\u0000\u0000\u0000Design/methodology/approach\u0000This paper discusses limitations about how accounting information was used in a university’s response to the COVID-19 pandemic. This paper describes potential roles for accounting across crisis phases. These proposals recognise requirements arising from the university’s regulatory environment and apply concepts from intellectual capital accounting and service-dominant logic.\u0000\u0000\u0000Findings\u0000This paper proposes that in the survival phase, accounting can mitigate rash responses by clarifying the crisis’s impact and stakeholder alignment. In the recovery phase, accounting can inform resourcing decisions by balancing signals from accounting about staff expense and capital investment. In the revolution phase, accounting helps develop the business models needed to adapt to changing student needs, hybrid teaching delivery and importance of intellectual capital.\u0000\u0000\u0000Research limitations/implications\u0000The case study discusses the early stages of a university’s response to the COVID-19 pandemic. It does not provide a comprehensive analysis of success or failure of accounting in a crisis. The case raises directions for accounting to clarify the ambiguities in objectives and cause-and-effect relationships from the pandemic.\u0000\u0000\u0000Practical implications\u0000This paper proposes actions for accounting to support the survival, recovery and revolution of the university sector from the pandemic. The actions cover stakeholder engagement, university sector governance and strategic planning.\u0000\u0000\u0000Originality/value\u0000This paper proposes a lifecycle of accounting roles at different stages of the COVID-19 response that reflects requirements from the university’s regulatory environment and draws on intellectual capital and service-dominant logic literature.\u0000","PeriodicalId":46088,"journal":{"name":"Pacific Accounting Review","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2021-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46226562","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 : 2021-08-26DOI: 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":" ","pages":""},"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":" ","pages":""},"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":" ","pages":""},"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":" ","pages":""},"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":" ","pages":""},"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":" ","pages":""},"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":" ","pages":""},"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}
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