Pub Date : 2020-03-07DOI: 10.1108/ijaim-06-2019-0062
V. Tawiah, Pran Boolaky
The purpose of this paper is to provide evidence of how convergence to International Financial Reporting Standards (IFRS) impacts accounting values and the determinants of variation in equity adjustments among Indian companies.,Using a sample of 323 listed companies, the authors empirically test whether there is a significant difference between converged IFRS (Ind.AS) and Indian Generally Accepted Accounting Principles (GAAP) (AS) reported figures and ratios and why companies adjust differently.,This paper reveals that fair valuation under Ind.AS causes a significant decrease in goodwill. A substantial decrease in both current and long-term liabilities because of non-recognition of proposed dividend, discounting of long-term provision per Ind.AS was also found. The variations in equity adjustment were significantly influenced by capital structure, level of family control and auditor type.,This paper provides insights to users who are interested in historical data, that Ind.AS brings significant changes in the accounting values and ratios and the impact differs among companies based on capital structure, ownership and auditor type.,This paper contributes to the literature of IFRS convergence in India by providing rational analysis of the differences between IFRS, Indian converged GAAP and Indian local GAAP among companies and its impact on accounting values.
{"title":"Consequences and determinants of IFRS convergence in India","authors":"V. Tawiah, Pran Boolaky","doi":"10.1108/ijaim-06-2019-0062","DOIUrl":"https://doi.org/10.1108/ijaim-06-2019-0062","url":null,"abstract":"The purpose of this paper is to provide evidence of how convergence to International Financial Reporting Standards (IFRS) impacts accounting values and the determinants of variation in equity adjustments among Indian companies.,Using a sample of 323 listed companies, the authors empirically test whether there is a significant difference between converged IFRS (Ind.AS) and Indian Generally Accepted Accounting Principles (GAAP) (AS) reported figures and ratios and why companies adjust differently.,This paper reveals that fair valuation under Ind.AS causes a significant decrease in goodwill. A substantial decrease in both current and long-term liabilities because of non-recognition of proposed dividend, discounting of long-term provision per Ind.AS was also found. The variations in equity adjustment were significantly influenced by capital structure, level of family control and auditor type.,This paper provides insights to users who are interested in historical data, that Ind.AS brings significant changes in the accounting values and ratios and the impact differs among companies based on capital structure, ownership and auditor type.,This paper contributes to the literature of IFRS convergence in India by providing rational analysis of the differences between IFRS, Indian converged GAAP and Indian local GAAP among companies and its impact on accounting values.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"20 1","pages":"303-322"},"PeriodicalIF":30.2,"publicationDate":"2020-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82918086","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 : 2020-03-05DOI: 10.1108/ijaim-05-2019-0055
Shanshan Pan, Z. Xu
Purpose - The purpose of this paper is to examine whether analysts’ cash flow forecasts improve the profitability of their stock recommendations and whether the positive effect of cash flow forecasts on analysts’ stock recommendation performance varies with firms’ earnings quality. Design/methodology/approach - To test the authors’ predictions, they identify a sample of 161,673 stock recommendations with contemporaneous earnings forecasts and/or cash flow forecasts and regress market-adjusted stock returns on a binary variable that proxies for the issuance of cash flow forecasts while controlling for contemporaneous earnings forecast accuracy, earnings quality, analysts’ forecast experience and capability and certain firm characteristics. The authors’ test results are robust to alternative measures of recommendation profitability, earnings quality and the use of recommendation revisions instead of recommendation levels. Findings - The authors find that when analysts issue cash flow forecasts concurrently with earnings forecasts, their stock recommendations lead to higher profitability than when they only issue earnings forecasts, after controlling for analysts’ forecast capability. Moreover, the authors document that the contemporaneous positive relationship between cash flow forecasts and recommendations profitability is stronger for firms with low earnings quality than for firms with high earnings quality. The findings suggest that cash flow forecasts issued by analysts in response to market demand likely play a more important role in firm valuation than cash flow forecasts issued by analysts mainly because of supply-side considerations. Research limitations/implications - Future research could build on these findings to conduct further investigation on the alternative incentives for analysts’ forecasts of sales growth and long-term growth rates. Practical implications - These findings may also help investors to better assess the quality of analysts’ research outputs and to identify superior stock recommendations. Originality/value - This study provides insight into the role of cash flow forecasts in firm valuation and adds fresh evidence to the debate on the usefulness of cash flow forecasts. It extends the stream of research on the characteristics of analyst forecasts and increases our knowledge about the role of analysts in the financial market.
{"title":"The association of analysts’ cash flow forecasts with stock recommendation profitability","authors":"Shanshan Pan, Z. Xu","doi":"10.1108/ijaim-05-2019-0055","DOIUrl":"https://doi.org/10.1108/ijaim-05-2019-0055","url":null,"abstract":"Purpose - The purpose of this paper is to examine whether analysts’ cash flow forecasts improve the profitability of their stock recommendations and whether the positive effect of cash flow forecasts on analysts’ stock recommendation performance varies with firms’ earnings quality. Design/methodology/approach - To test the authors’ predictions, they identify a sample of 161,673 stock recommendations with contemporaneous earnings forecasts and/or cash flow forecasts and regress market-adjusted stock returns on a binary variable that proxies for the issuance of cash flow forecasts while controlling for contemporaneous earnings forecast accuracy, earnings quality, analysts’ forecast experience and capability and certain firm characteristics. The authors’ test results are robust to alternative measures of recommendation profitability, earnings quality and the use of recommendation revisions instead of recommendation levels. Findings - The authors find that when analysts issue cash flow forecasts concurrently with earnings forecasts, their stock recommendations lead to higher profitability than when they only issue earnings forecasts, after controlling for analysts’ forecast capability. Moreover, the authors document that the contemporaneous positive relationship between cash flow forecasts and recommendations profitability is stronger for firms with low earnings quality than for firms with high earnings quality. The findings suggest that cash flow forecasts issued by analysts in response to market demand likely play a more important role in firm valuation than cash flow forecasts issued by analysts mainly because of supply-side considerations. Research limitations/implications - Future research could build on these findings to conduct further investigation on the alternative incentives for analysts’ forecasts of sales growth and long-term growth rates. Practical implications - These findings may also help investors to better assess the quality of analysts’ research outputs and to identify superior stock recommendations. Originality/value - This study provides insight into the role of cash flow forecasts in firm valuation and adds fresh evidence to the debate on the usefulness of cash flow forecasts. It extends the stream of research on the characteristics of analyst forecasts and increases our knowledge about the role of analysts in the financial market.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"43 1","pages":"343-361"},"PeriodicalIF":30.2,"publicationDate":"2020-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88744299","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 : 2020-03-04DOI: 10.1108/ijaim-10-2019-0117
Husam A. Abu Khadra, D. Delen
This paper aims to contribute to the extant literature in this field by examining nonprofit organizations’ fraud reporting compliance using logistic regression and decision tree induction algorithms.,This study used the data from 428 nonprofit organizations during 2009-2015 period, and analyzed 21 individual measures (obtained from these organizations’ Internal Revenue Service Form990 filings) using logistic regression and decision tree induction algorithms, to study the governance characteristics and fraud reporting.,The study found evidence that compliance with the law, board of directors’ independence, federal audit and using independent accountants to compile and review financial statements are the most prevailing factors affecting the odds of nonprofit organizations experiencing fraud reported as an asset diversion.,The argument associated with using governance to reduce the chances of fraud has been a popular topic in industry and academia but unfortunately has limited empirical evidence in the literature, especially when it relates to nonprofits. This study contributes to the literature in this respect.
{"title":"Nonprofit organization fraud reporting: does governance matter?","authors":"Husam A. Abu Khadra, D. Delen","doi":"10.1108/ijaim-10-2019-0117","DOIUrl":"https://doi.org/10.1108/ijaim-10-2019-0117","url":null,"abstract":"This paper aims to contribute to the extant literature in this field by examining nonprofit organizations’ fraud reporting compliance using logistic regression and decision tree induction algorithms.,This study used the data from 428 nonprofit organizations during 2009-2015 period, and analyzed 21 individual measures (obtained from these organizations’ Internal Revenue Service Form990 filings) using logistic regression and decision tree induction algorithms, to study the governance characteristics and fraud reporting.,The study found evidence that compliance with the law, board of directors’ independence, federal audit and using independent accountants to compile and review financial statements are the most prevailing factors affecting the odds of nonprofit organizations experiencing fraud reported as an asset diversion.,The argument associated with using governance to reduce the chances of fraud has been a popular topic in industry and academia but unfortunately has limited empirical evidence in the literature, especially when it relates to nonprofits. This study contributes to the literature in this respect.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"26 1","pages":"409-428"},"PeriodicalIF":30.2,"publicationDate":"2020-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76637617","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 : 2020-03-02DOI: 10.1108/ijaim-07-2019-0091
N. Waweru
The purpose of this paper is to examine the relationship between business ethics practices disclosure and corporate governance characteristics in Sub-Saharan Africa.,The study uses multiple regression to investigate the association between business ethics disclosure (BED) and corporate governance characteristics in SAA. The study sample is based on 573 non-financial corporations listed on the national stock exchanges of Ghana, Kenya, Nigeria, South Africa and Zimbabwe as of 31 December 2015.,The findings show that corporate governance characteristics (including the proportion of government ownership, board independence and board gender diversity) are positively and significantly related to BED.,The study contributes to the limited literature by analyzing the relationship between BED practices and corporate governance characteristics in the sub-Sahara African context, which is significantly different from the Anglo-Saxon world.
{"title":"Business ethics disclosure and corporate governance in Sub-Saharan Africa (SSA)","authors":"N. Waweru","doi":"10.1108/ijaim-07-2019-0091","DOIUrl":"https://doi.org/10.1108/ijaim-07-2019-0091","url":null,"abstract":"The purpose of this paper is to examine the relationship between business ethics practices disclosure and corporate governance characteristics in Sub-Saharan Africa.,The study uses multiple regression to investigate the association between business ethics disclosure (BED) and corporate governance characteristics in SAA. The study sample is based on 573 non-financial corporations listed on the national stock exchanges of Ghana, Kenya, Nigeria, South Africa and Zimbabwe as of 31 December 2015.,The findings show that corporate governance characteristics (including the proportion of government ownership, board independence and board gender diversity) are positively and significantly related to BED.,The study contributes to the limited literature by analyzing the relationship between BED practices and corporate governance characteristics in the sub-Sahara African context, which is significantly different from the Anglo-Saxon world.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"1 1","pages":"363-387"},"PeriodicalIF":30.2,"publicationDate":"2020-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90785740","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 : 2020-03-02DOI: 10.1108/ijaim-09-2019-0110
Suzanne M. Ogilby, Xinmei Xie, Y. Xiong, Jin Zhang
Purpose - Recent literature suggests that sin firms (firms in tobacco, gambling and alcohol industries) have lower institutional ownership, fewer analysts following, higher abnormal returns and higher financial reporting quality. This study aims to investigate empirically how sin firms engage in real activities manipulation (RAM) to meet earnings benchmarks in comparison to non-sin firms. Design/methodology/approach - The authors examine two types of RAM, namely, Cutting discretionary expenditures including research and development (R&D), SG&A and advertising to boost earnings. Extending deep discount or lenient credit terms to boost sales and/or overproducing to decrease COGS to increase gross profit. Consistent with Roychowdhury (2006), the authors use abnormal discretionary expenditures as the proxy for expenditure reduction manipulation and abnormal production costs as the proxy for COGS manipulation. Findings - The results for the abnormal discretionary expense model suggest that sin firms do not engage in RAM of advertising, R&D, SG&A expense to just meet earnings benchmarks. The results for the production costs model suggest that sin firms do not engage in COGS manipulation to just meet earnings benchmarks. The results are robust after controlling accrual-based earnings management (AEM). Overall, in this setting, these results suggest that managers of sin firms engage less in RAM to meet earnings benchmarks. Originality/value - The findings are of interest to investors, auditors, regulators and academics with respect to financial statement analysis and earnings quality.
{"title":"Do sin firms engage in real activities manipulation to meet earnings benchmarks?","authors":"Suzanne M. Ogilby, Xinmei Xie, Y. Xiong, Jin Zhang","doi":"10.1108/ijaim-09-2019-0110","DOIUrl":"https://doi.org/10.1108/ijaim-09-2019-0110","url":null,"abstract":"Purpose - Recent literature suggests that sin firms (firms in tobacco, gambling and alcohol industries) have lower institutional ownership, fewer analysts following, higher abnormal returns and higher financial reporting quality. This study aims to investigate empirically how sin firms engage in real activities manipulation (RAM) to meet earnings benchmarks in comparison to non-sin firms. Design/methodology/approach - The authors examine two types of RAM, namely, Cutting discretionary expenditures including research and development (R&D), SG&A and advertising to boost earnings. Extending deep discount or lenient credit terms to boost sales and/or overproducing to decrease COGS to increase gross profit. Consistent with Roychowdhury (2006), the authors use abnormal discretionary expenditures as the proxy for expenditure reduction manipulation and abnormal production costs as the proxy for COGS manipulation. Findings - The results for the abnormal discretionary expense model suggest that sin firms do not engage in RAM of advertising, R&D, SG&A expense to just meet earnings benchmarks. The results for the production costs model suggest that sin firms do not engage in COGS manipulation to just meet earnings benchmarks. The results are robust after controlling accrual-based earnings management (AEM). Overall, in this setting, these results suggest that managers of sin firms engage less in RAM to meet earnings benchmarks. Originality/value - The findings are of interest to investors, auditors, regulators and academics with respect to financial statement analysis and earnings quality.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"62 1","pages":"535-551"},"PeriodicalIF":30.2,"publicationDate":"2020-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87129977","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 : 2020-03-02DOI: 10.1108/ijaim-02-2019-0027
Dan Ames, Joshua G. Coyne, Kevin H. Kim
The purpose of the authors’ research study is to identify the impact of life cycle stage on firm acquisitions.,The authors use a series of empirical databases to identify characteristics of acquirers and their targets. The authors then use logistic regressions and joint tests to identify significant differences between declining and non-declining acquirers.,The authors find that declining acquirers are more likely to pursue diversifying acquisitions and to pay for the acquisition with stock considerations. Acquisitions by declining acquirers result in positive abnormal returns initially, but post-acquisition returns are negative.,The authors’ primary limitation is their data, which only includes public acquirers and targets, and runs from January 1, 1988 to December 31, 2010.,The authors’ research suggests that regulators, stakeholders and prospective stakeholders should consider the life cycle stage of an acquiring firm in setting expectations about motivations for and likely performance subsequent to the acquisition.,The authors’ paper is the first to consider the effect of firm life cycle stage on the motivation and subsequent success of an acquisition. Given the tremendous impact to shareholders of such significant transactions, understanding the acquisition process more completely is important to capital markets participants.
{"title":"The impact of life cycle stage on firm acquisitions","authors":"Dan Ames, Joshua G. Coyne, Kevin H. Kim","doi":"10.1108/ijaim-02-2019-0027","DOIUrl":"https://doi.org/10.1108/ijaim-02-2019-0027","url":null,"abstract":"The purpose of the authors’ research study is to identify the impact of life cycle stage on firm acquisitions.,The authors use a series of empirical databases to identify characteristics of acquirers and their targets. The authors then use logistic regressions and joint tests to identify significant differences between declining and non-declining acquirers.,The authors find that declining acquirers are more likely to pursue diversifying acquisitions and to pay for the acquisition with stock considerations. Acquisitions by declining acquirers result in positive abnormal returns initially, but post-acquisition returns are negative.,The authors’ primary limitation is their data, which only includes public acquirers and targets, and runs from January 1, 1988 to December 31, 2010.,The authors’ research suggests that regulators, stakeholders and prospective stakeholders should consider the life cycle stage of an acquiring firm in setting expectations about motivations for and likely performance subsequent to the acquisition.,The authors’ paper is the first to consider the effect of firm life cycle stage on the motivation and subsequent success of an acquisition. Given the tremendous impact to shareholders of such significant transactions, understanding the acquisition process more completely is important to capital markets participants.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"45 1","pages":"223-241"},"PeriodicalIF":30.2,"publicationDate":"2020-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78933914","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 : 2020-03-02DOI: 10.1108/ijaim-04-2019-0049
M. Nurunnabi, Eva K. Jermakowicz, H. Donker
Purpose - The Saudi Organization for Certified Public Accountants (SOCPA) requires that International Financial Reporting Standards (IFRS), as endorsed in Saudi Arabia, be used by all listed and unlisted companies. This study aims to provide insight into IFRS implementation problems, based on a survey sent to Saudi Arabian companies listed on Tadawul, the Saudi stock market (i.e. financial hub in the Middle East). Design/methodology/approach - The survey focused on the impact that IFRS conversion has had on companies, their accounting and their finance strategies. The benefits and challenges of the adoption of IFRS are analyzed, including matters pertaining to the level of understanding and experience with IFRS, perceptions about the quality of IFRS and the impact of adoption of IFRS on consolidated equity and net income. Findings - The survey had a response rate of 72 per cent. The results indicate a majority of respondents support conversion to IFRS as it results in higher quality financial reporting; the most important expected benefits of adopting IFRS include greater reporting transparency and improved comparability with other businesses; other expected benefits include harmonization of internal and external reporting, and increased cross-border investment opportunities; the IFRS process is costly and ties up resources because of its complexity and training needed and companies expect increased volatility in reported financial results that will impact share option plans and/or other incentive plans tied to profits. However, the authors find strong support among preparers of the financial statements for IFRS, as evidenced by higher agreement among respondents to the survey on the benefits of adopting IFRS, rather than on the costs of its adoption. Furthermore, the analysis shows that the likelihood of Saudi Arabian firms that are in favor of adopting IFRS decreases if the audit firm is one of the Big 4. The reason for this negative relationship could be that the cost of transition toward IFRS will be high. Therefore, Saudi Arabian firms will not favor a transition toward IFRS when their audit firm belongs to the Big 4. Most difficult to implement IFRS, as listed by respondents, include those on financial instruments, revenue, leases and employee benefits. Originality/value - The authors show how economic and environmental factors play a critical role in the IFRS implementation process. This study should be important to all countries worldwide that are in the process of adopting IFRS.
{"title":"Implementing IFRS in Saudi Arabia: evidence from publicly traded companies","authors":"M. Nurunnabi, Eva K. Jermakowicz, H. Donker","doi":"10.1108/ijaim-04-2019-0049","DOIUrl":"https://doi.org/10.1108/ijaim-04-2019-0049","url":null,"abstract":"Purpose - The Saudi Organization for Certified Public Accountants (SOCPA) requires that International Financial Reporting Standards (IFRS), as endorsed in Saudi Arabia, be used by all listed and unlisted companies. This study aims to provide insight into IFRS implementation problems, based on a survey sent to Saudi Arabian companies listed on Tadawul, the Saudi stock market (i.e. financial hub in the Middle East). Design/methodology/approach - The survey focused on the impact that IFRS conversion has had on companies, their accounting and their finance strategies. The benefits and challenges of the adoption of IFRS are analyzed, including matters pertaining to the level of understanding and experience with IFRS, perceptions about the quality of IFRS and the impact of adoption of IFRS on consolidated equity and net income. Findings - The survey had a response rate of 72 per cent. The results indicate a majority of respondents support conversion to IFRS as it results in higher quality financial reporting; the most important expected benefits of adopting IFRS include greater reporting transparency and improved comparability with other businesses; other expected benefits include harmonization of internal and external reporting, and increased cross-border investment opportunities; the IFRS process is costly and ties up resources because of its complexity and training needed and companies expect increased volatility in reported financial results that will impact share option plans and/or other incentive plans tied to profits. However, the authors find strong support among preparers of the financial statements for IFRS, as evidenced by higher agreement among respondents to the survey on the benefits of adopting IFRS, rather than on the costs of its adoption. Furthermore, the analysis shows that the likelihood of Saudi Arabian firms that are in favor of adopting IFRS decreases if the audit firm is one of the Big 4. The reason for this negative relationship could be that the cost of transition toward IFRS will be high. Therefore, Saudi Arabian firms will not favor a transition toward IFRS when their audit firm belongs to the Big 4. Most difficult to implement IFRS, as listed by respondents, include those on financial instruments, revenue, leases and employee benefits. Originality/value - The authors show how economic and environmental factors play a critical role in the IFRS implementation process. This study should be important to all countries worldwide that are in the process of adopting IFRS.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"21 1","pages":"243-273"},"PeriodicalIF":30.2,"publicationDate":"2020-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74897799","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 : 2020-02-26DOI: 10.1108/ijaim-12-2018-0154
Canchu Lin, A. Kunnathur, Long Li
Purpose - The purpose of this paper is to provide a conceptual understanding of Big Data practices in organizations, which will enable exploring the operational and strategic roles of Big Data in organizational performance. Design/methodology/approach - Both academic and non-academic literature studies on Big Data were reviewed so as to capture what was known about Big Data practices. Qualitative interviews were conducted with firm executives about Big Data practices in their organizations. Both literature review and interview results were analyzed based on the dynamic capabilities perspective. Findings - The analysis of the results suggests that Big Data capability develops when the resources parts of Big Data and the skill and competency parts are integrated and then grow into a dynamic capability. Research limitations/implications - This study contributes to the literature with the concept of Big Data capability that best characterizes Big Data practices in organizations. Validity of this concept should be tested in empirical studies. Originality/value - The development of the concept of Big Data capability helps to fill a gap in the research literature that theoretical understanding of big data practices is lacking or needs to be updated. It motivates practitioners to develop this capability so as to create and maintain their strategic advantage.
{"title":"Conceptualizing big data practices","authors":"Canchu Lin, A. Kunnathur, Long Li","doi":"10.1108/ijaim-12-2018-0154","DOIUrl":"https://doi.org/10.1108/ijaim-12-2018-0154","url":null,"abstract":"Purpose - The purpose of this paper is to provide a conceptual understanding of Big Data practices in organizations, which will enable exploring the operational and strategic roles of Big Data in organizational performance. Design/methodology/approach - Both academic and non-academic literature studies on Big Data were reviewed so as to capture what was known about Big Data practices. Qualitative interviews were conducted with firm executives about Big Data practices in their organizations. Both literature review and interview results were analyzed based on the dynamic capabilities perspective. Findings - The analysis of the results suggests that Big Data capability develops when the resources parts of Big Data and the skill and competency parts are integrated and then grow into a dynamic capability. Research limitations/implications - This study contributes to the literature with the concept of Big Data capability that best characterizes Big Data practices in organizations. Validity of this concept should be tested in empirical studies. Originality/value - The development of the concept of Big Data capability helps to fill a gap in the research literature that theoretical understanding of big data practices is lacking or needs to be updated. It motivates practitioners to develop this capability so as to create and maintain their strategic advantage.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"16 1","pages":"205-222"},"PeriodicalIF":30.2,"publicationDate":"2020-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86748633","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 : 2020-02-26DOI: 10.1108/ijaim-10-2019-0124
M. Muttakin, Dessalegn Getie Mihret, Tesfaye T. Lemma, Arifur Khan
Purpose - Although proponents of integrated reporting (IR) advocate that this emerging practice has the potential to transform corporate reporting, the eventuation of this expectation would depend on the incentive IR provides to firms. This study aims to examine whether IR is associated with cost of debt and whether IR moderates the relationship between financial reporting quality and cost of debt. Design/methodology/approach - Based on insights drawn from information asymmetry and agency theories, the authors develop models that link IR and financial reporting quality with a firm’s cost of debt. The authors analyze 847 firm-year observations drawn from non-financial firms traded on the Johannesburg Stock Exchange, for the period between 2009 and 2015. Findings - The authors find that firms that provide integrated reports tend to have a lower cost of debt than those do not provide IR. The authors also find an inverse association between financial reporting quality and cost of debt, and that integrated reports accentuate this association. The findings suggest that the debt market perceives value in the information presented in integrated reports beyond what is furnished in financial reports. Originality/value - To the best of the authors’ knowledge, this study is the first to document evidence suggesting that the debt market perceives value in the information presented in integrated reports, beyond what is furnished in financial reports.
{"title":"Integrated reporting, financial reporting quality and cost of debt","authors":"M. Muttakin, Dessalegn Getie Mihret, Tesfaye T. Lemma, Arifur Khan","doi":"10.1108/ijaim-10-2019-0124","DOIUrl":"https://doi.org/10.1108/ijaim-10-2019-0124","url":null,"abstract":"Purpose - Although proponents of integrated reporting (IR) advocate that this emerging practice has the potential to transform corporate reporting, the eventuation of this expectation would depend on the incentive IR provides to firms. This study aims to examine whether IR is associated with cost of debt and whether IR moderates the relationship between financial reporting quality and cost of debt. Design/methodology/approach - Based on insights drawn from information asymmetry and agency theories, the authors develop models that link IR and financial reporting quality with a firm’s cost of debt. The authors analyze 847 firm-year observations drawn from non-financial firms traded on the Johannesburg Stock Exchange, for the period between 2009 and 2015. Findings - The authors find that firms that provide integrated reports tend to have a lower cost of debt than those do not provide IR. The authors also find an inverse association between financial reporting quality and cost of debt, and that integrated reports accentuate this association. The findings suggest that the debt market perceives value in the information presented in integrated reports beyond what is furnished in financial reports. Originality/value - To the best of the authors’ knowledge, this study is the first to document evidence suggesting that the debt market perceives value in the information presented in integrated reports, beyond what is furnished in financial reports.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"43 1","pages":"517-534"},"PeriodicalIF":30.2,"publicationDate":"2020-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76735952","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 : 2020-01-16DOI: 10.1108/ijaim-12-2018-0148
Diao Wu, Yong Choi, J. Li
This paper aims to focus on applications of stochastic linear programming (SLP) to managerial accounting issues by providing a theoretical foundation and practical examples. SLP models may have more implications – and broader ones – in industry practice than deterministic linear programming (DLP) models do.,This paper introduces both DLP and SLP methods. In addition, continuous and discrete SLP models are explained. Applications are demonstrated using practical examples and simulations.,This research work extends the current knowledge of SLP, especially concerning managerial accounting issues. Through numerical examples, SLP demonstrates its great ability of hedging against all scenarios.,This study serves as an addition to building a cumulative tradition of research on SLP in managerial accounting. Only a few SLP studies in managerial accounting have focused on the development of such an instrument. Thus, the measurement scales in this research can be used as the starting point for further refining the instrument of optimization in managerial accounting.
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