Pub Date : 2020-01-13DOI: 10.1108/ijaim-09-2018-0107
Md. Borhan Uddin Bhuiyan, M. D'costa
Purpose - This paper aims to examine whether audit committee ownership affects audit report lag. Independent audit committees are responsible for overseeing the financial reporting process, to ensure that financial statements are both credible and released to external stakeholders in a timely manner. To date, however, the extent to which audit committee ownership strengthens or compromises member independence, and hence, influences audit report lag, has remained unexplored. Design/methodology/approach - This paper hypothesizes that audit committee ownership is associated with audit report lag. Further, the author hypothesize that both the financial reporting quality and the going concern opinions of a firm mediate the effect of audit committee ownership on audit report lag. Findings - Using data from Australian listed companies, the author find that audit committee ownership increases audit report lag. The author further document that financial reporting quality and modified audit opinions rendered by external auditors mediate this positive relationship. The results are robust to endogeneity concerns emanating from firms’ deliberate decisions to grant shares to the audit committee members. Originality/value - The study contributes to both the audit report timeliness and the corporate governance literatures, by documenting an adverse effect of audit committee ownership.
{"title":"Audit committee ownership and audit report lag: evidence from Australia","authors":"Md. Borhan Uddin Bhuiyan, M. D'costa","doi":"10.1108/ijaim-09-2018-0107","DOIUrl":"https://doi.org/10.1108/ijaim-09-2018-0107","url":null,"abstract":"Purpose - This paper aims to examine whether audit committee ownership affects audit report lag. Independent audit committees are responsible for overseeing the financial reporting process, to ensure that financial statements are both credible and released to external stakeholders in a timely manner. To date, however, the extent to which audit committee ownership strengthens or compromises member independence, and hence, influences audit report lag, has remained unexplored. Design/methodology/approach - This paper hypothesizes that audit committee ownership is associated with audit report lag. Further, the author hypothesize that both the financial reporting quality and the going concern opinions of a firm mediate the effect of audit committee ownership on audit report lag. Findings - Using data from Australian listed companies, the author find that audit committee ownership increases audit report lag. The author further document that financial reporting quality and modified audit opinions rendered by external auditors mediate this positive relationship. The results are robust to endogeneity concerns emanating from firms’ deliberate decisions to grant shares to the audit committee members. Originality/value - The study contributes to both the audit report timeliness and the corporate governance literatures, by documenting an adverse effect of audit committee ownership.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"25 1","pages":"96-125"},"PeriodicalIF":30.2,"publicationDate":"2020-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74240884","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 : 2020-01-13DOI: 10.1108/ijaim-02-2019-0022
Ling Yang, Linda K. Lau, Huiqi Gan
The purpose of this paper is to propose a research model to examine the perception of non-professional investors toward the cybersecurity reporting framework developed by the American Institute of Certified Public Accountants (AICPA).,The proposed hypotheses were tested using structural equation modeling with data collected from Amazon's Mechanical Turk platform.,The findings conclude that investors' perceived benefits of the cybersecurity risk framework are positively related to investment intention. Information quality and cybersecurity awareness also positively influence perceived benefits of the risk framework and investment intention.,Findings of this study are relevant to both regulatory bodies and firms because non-professional investors’ perceptions of the benefits of the AICPA’s reporting framework are unveiled.,Findings from this research help to provide a more in-depth understanding of the impact of various factors on investor’s decision-making process and also significant insights into the non-professional investor’s attitude toward the AICPA’s framework.
{"title":"Investors’ perceptions of the cybersecurity risk management reporting framework","authors":"Ling Yang, Linda K. Lau, Huiqi Gan","doi":"10.1108/ijaim-02-2019-0022","DOIUrl":"https://doi.org/10.1108/ijaim-02-2019-0022","url":null,"abstract":"The purpose of this paper is to propose a research model to examine the perception of non-professional investors toward the cybersecurity reporting framework developed by the American Institute of Certified Public Accountants (AICPA).,The proposed hypotheses were tested using structural equation modeling with data collected from Amazon's Mechanical Turk platform.,The findings conclude that investors' perceived benefits of the cybersecurity risk framework are positively related to investment intention. Information quality and cybersecurity awareness also positively influence perceived benefits of the risk framework and investment intention.,Findings of this study are relevant to both regulatory bodies and firms because non-professional investors’ perceptions of the benefits of the AICPA’s reporting framework are unveiled.,Findings from this research help to provide a more in-depth understanding of the impact of various factors on investor’s decision-making process and also significant insights into the non-professional investor’s attitude toward the AICPA’s framework.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"5 1","pages":"167-183"},"PeriodicalIF":30.2,"publicationDate":"2020-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82477803","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 : 2020-01-13DOI: 10.1108/ijaim-01-2019-0001
R. Brody, Gaurav Gupta, Todd P. White
Purpose - The purpose of this paper is to examine whistleblowing behavior in the accounting community (students and professionals) in an emerging economy – India. Design/methodology/approach - Using a case-based approach, data were collected from 263 accounting students and 268 accounting professionals in India. Findings - Using multivariate and univariate analyses of variance and logistic regressions, the authors provided evidence on how accounting students and professionals behave in a whistleblowing environment. Specifically, the authors found mixed results when comparing the behavior of accounting students and professionals in a whistleblowing scenario. All subjects reflected a more collectivist attitude, although professionals were more concerned about “fixing” the identified internal control problem (a “shared” problem). Both groups expressed a firm desire to collect more evidence against the likely fraudster. Practical implications - In this era of global offshoring of services including accounting, the current study makes significant contributions to the accounting ethics literature and the accounting profession by analyzing whistleblowing behavior from an Indian perspective – a highly underrepresented area in the accounting ethics literature. The study aims to guide companies and investors in the US and elsewhere that do business in India. Originality/value - While the accounting literature has plenty of research on whistleblowing in the Western world, there is a dearth of literature on whistleblowing in India. This paper is among the first to document whistleblowing behavior in India, a country that prides itself on its vast availability of English-speaking and technically sound accounting professionals.
{"title":"Whistleblowing in India: evidence from accounting students and professionals","authors":"R. Brody, Gaurav Gupta, Todd P. White","doi":"10.1108/ijaim-01-2019-0001","DOIUrl":"https://doi.org/10.1108/ijaim-01-2019-0001","url":null,"abstract":"Purpose - The purpose of this paper is to examine whistleblowing behavior in the accounting community (students and professionals) in an emerging economy – India. Design/methodology/approach - Using a case-based approach, data were collected from 263 accounting students and 268 accounting professionals in India. Findings - Using multivariate and univariate analyses of variance and logistic regressions, the authors provided evidence on how accounting students and professionals behave in a whistleblowing environment. Specifically, the authors found mixed results when comparing the behavior of accounting students and professionals in a whistleblowing scenario. All subjects reflected a more collectivist attitude, although professionals were more concerned about “fixing” the identified internal control problem (a “shared” problem). Both groups expressed a firm desire to collect more evidence against the likely fraudster. Practical implications - In this era of global offshoring of services including accounting, the current study makes significant contributions to the accounting ethics literature and the accounting profession by analyzing whistleblowing behavior from an Indian perspective – a highly underrepresented area in the accounting ethics literature. The study aims to guide companies and investors in the US and elsewhere that do business in India. Originality/value - While the accounting literature has plenty of research on whistleblowing in the Western world, there is a dearth of literature on whistleblowing in India. This paper is among the first to document whistleblowing behavior in India, a country that prides itself on its vast availability of English-speaking and technically sound accounting professionals.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"9 1","pages":"126-146"},"PeriodicalIF":30.2,"publicationDate":"2020-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88605582","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 : 2020-01-13DOI: 10.1108/ijaim-12-2018-0146
Mohd Mohid Rahmat, Balachandran Muniandy, Kamran Ahmed
The purpose of this paper is to examine the effect of related party transactions (RPTs) and types of RPTs (complex, simple and loan) on earnings quality in four East Asian countries: Hong Kong, Malaysia, Singapore and Thailand.,RPTs and types of RPTs are measured using two approaches, magnitude and abnormal (magnitude change). Earnings quality is measured using proxies for accrual earnings management and identified as discretionary accruals (DAC) and performance matched discretional accruals (PMDAC).,The results suggest that firms in these countries experience poor earnings quality when they are engaged in RPT. The effect of RPT-simple on earnings quality is more severe than RPT-complex. However, the presence of higher investor protection and stricter enforcement of regulations in countries like Singapore and Hong Kong reduce the negative impact of RPTs on earnings quality.,The results support the argument that the presence of controlling shareholders in East Asia is likely to lead to engagement with RPTs, which will increase the likelihood of firms’ earnings manipulation via DAC. This study has two limitations. It only focuses on Hong Kong, Malaysia, Singapore and Thailand, and the results may not be generalizable to other countries. Second, this study only measures the magnitude and abnormal RPTs based on the disclosures available in annual reports.,This paper contributes to the literature by examining the effect of RPTs and types of RPTs on earnings quality in four selected East Asian countries.
{"title":"Do related party transactions affect earnings quality? Evidence from East Asia","authors":"Mohd Mohid Rahmat, Balachandran Muniandy, Kamran Ahmed","doi":"10.1108/ijaim-12-2018-0146","DOIUrl":"https://doi.org/10.1108/ijaim-12-2018-0146","url":null,"abstract":"The purpose of this paper is to examine the effect of related party transactions (RPTs) and types of RPTs (complex, simple and loan) on earnings quality in four East Asian countries: Hong Kong, Malaysia, Singapore and Thailand.,RPTs and types of RPTs are measured using two approaches, magnitude and abnormal (magnitude change). Earnings quality is measured using proxies for accrual earnings management and identified as discretionary accruals (DAC) and performance matched discretional accruals (PMDAC).,The results suggest that firms in these countries experience poor earnings quality when they are engaged in RPT. The effect of RPT-simple on earnings quality is more severe than RPT-complex. However, the presence of higher investor protection and stricter enforcement of regulations in countries like Singapore and Hong Kong reduce the negative impact of RPTs on earnings quality.,The results support the argument that the presence of controlling shareholders in East Asia is likely to lead to engagement with RPTs, which will increase the likelihood of firms’ earnings manipulation via DAC. This study has two limitations. It only focuses on Hong Kong, Malaysia, Singapore and Thailand, and the results may not be generalizable to other countries. Second, this study only measures the magnitude and abnormal RPTs based on the disclosures available in annual reports.,This paper contributes to the literature by examining the effect of RPTs and types of RPTs on earnings quality in four selected East Asian countries.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"16 1","pages":"147-166"},"PeriodicalIF":30.2,"publicationDate":"2020-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86527391","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 : 2019-12-12DOI: 10.1108/ijaim-03-2019-0041
Ahmad Hammami, Mohammad Hendijani Zadeh
Purpose - The purpose of this study is twofold: first, to introduce two determinants of environmental, social and governance (ESG) disclosure transparency, namely, audit quality and public media exposure; and second, to investigate the impact of ESG transparency on firm-level investment efficiency. Design/methodology/approach - Ordinary least square (OLS) regressions are applied to explore the relationship between the two variables of interest (audit quality and public media exposure) and ESG transparency on a sample of publicly listed Canadian firms during the period 2008 to 2017. Then, an econometric model is used to investigate the association between ESG transparency and investment efficiency under two identified scenarios, under-investment and over-investment. Findings - Results show that audit quality and public media exposure are two main drivers of ESG transparency, hence, commitment to high-quality audits and exposure to high public media coverage drive firms to disclose more extensive and transparent ESG information. The authors also find a negative association between ESG transparency and firm-level investment inefficiency. Thus, ESG transparency generates influential incremental information that helps mitigate the information asymmetry between firms and stakeholders while fostering better resource allocation through investment efficiency. Originality/value - This study contributes to the corporate social responsibility (CSR) and ESG literature by identifying audit quality and public media exposure as two determinants of ESG transparency; and by noting that higher ESG transparency has a significant economic effect on capital investment decisions through higher firm-level investment efficiency.
{"title":"Audit quality, media coverage, environmental, social, and governance disclosure and firm investment efficiency","authors":"Ahmad Hammami, Mohammad Hendijani Zadeh","doi":"10.1108/ijaim-03-2019-0041","DOIUrl":"https://doi.org/10.1108/ijaim-03-2019-0041","url":null,"abstract":"Purpose - The purpose of this study is twofold: first, to introduce two determinants of environmental, social and governance (ESG) disclosure transparency, namely, audit quality and public media exposure; and second, to investigate the impact of ESG transparency on firm-level investment efficiency. Design/methodology/approach - Ordinary least square (OLS) regressions are applied to explore the relationship between the two variables of interest (audit quality and public media exposure) and ESG transparency on a sample of publicly listed Canadian firms during the period 2008 to 2017. Then, an econometric model is used to investigate the association between ESG transparency and investment efficiency under two identified scenarios, under-investment and over-investment. Findings - Results show that audit quality and public media exposure are two main drivers of ESG transparency, hence, commitment to high-quality audits and exposure to high public media coverage drive firms to disclose more extensive and transparent ESG information. The authors also find a negative association between ESG transparency and firm-level investment inefficiency. Thus, ESG transparency generates influential incremental information that helps mitigate the information asymmetry between firms and stakeholders while fostering better resource allocation through investment efficiency. Originality/value - This study contributes to the corporate social responsibility (CSR) and ESG literature by identifying audit quality and public media exposure as two determinants of ESG transparency; and by noting that higher ESG transparency has a significant economic effect on capital investment decisions through higher firm-level investment efficiency.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"28 1","pages":"45-72"},"PeriodicalIF":30.2,"publicationDate":"2019-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77780542","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 : 2019-12-09DOI: 10.1108/ijaim-07-2018-0079
Nourhene Benyoussef, Mohamed Drira
Purpose - Prior research has examined the impact of corporate governance mechanisms, including external auditing, on accounting restatements likelihood. However, little is known about auditor’s monitoring role in restatement disclosure practices. The purpose of this study is to address this gap by investigating the impact of auditor’s oversight on the timeliness of accounting restatement disclosures as measured by the length of the restatement dark period. Design/methodology/approach - The study examines panel data from a sample of restating publicly traded US firms. Negative binomial regression is used to analyze the data because the dependent variable is a count variable and is over-dispersed. Findings - The main study’s results indicate that longer auditor tenure and non-audit services provision improve restatement disclosure timeliness. Conversely, companies whose auditors exerted abnormally high levels of audit effort have longer restatement dark periods. Originality/value - This study is the first archival research that focuses on auditor’s monitoring role and its impact on the timeliness of restatement disclosures. By doing so, this study contributes to the auditing academic research, professional practice and regulation by providing empirical evidence on an exasperating issue for all participants in the financial markets. In addition, it provides a better understanding of auditor’s monitoring role in the accounting restatement process and offers insights to policymakers, practitioners and investors interested in corporate financial transparency and corporate governance.
{"title":"Auditor monitoring and restatement dark period","authors":"Nourhene Benyoussef, Mohamed Drira","doi":"10.1108/ijaim-07-2018-0079","DOIUrl":"https://doi.org/10.1108/ijaim-07-2018-0079","url":null,"abstract":"Purpose - Prior research has examined the impact of corporate governance mechanisms, including external auditing, on accounting restatements likelihood. However, little is known about auditor’s monitoring role in restatement disclosure practices. The purpose of this study is to address this gap by investigating the impact of auditor’s oversight on the timeliness of accounting restatement disclosures as measured by the length of the restatement dark period. Design/methodology/approach - The study examines panel data from a sample of restating publicly traded US firms. Negative binomial regression is used to analyze the data because the dependent variable is a count variable and is over-dispersed. Findings - The main study’s results indicate that longer auditor tenure and non-audit services provision improve restatement disclosure timeliness. Conversely, companies whose auditors exerted abnormally high levels of audit effort have longer restatement dark periods. Originality/value - This study is the first archival research that focuses on auditor’s monitoring role and its impact on the timeliness of restatement disclosures. By doing so, this study contributes to the auditing academic research, professional practice and regulation by providing empirical evidence on an exasperating issue for all participants in the financial markets. In addition, it provides a better understanding of auditor’s monitoring role in the accounting restatement process and offers insights to policymakers, practitioners and investors interested in corporate financial transparency and corporate governance.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"58 1","pages":"73-95"},"PeriodicalIF":30.2,"publicationDate":"2019-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81375437","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 : 2019-12-04DOI: 10.1108/ijaim-05-2019-0058
Yunling Song, Shihong Li, Ling Zhou
The purpose of this paper is to investigate the spillover effects of a bright-line disclosure regulation that required Chinese listed firms to provide earnings forecasts if they anticipated specified, large earnings changes.,The paper examines the discontinuity of the earnings change distribution of firms listed on the Shenzhen Stock Market between 2010 and 2014. The paper finds that firms no longer subject to the bright-line test still exhibited discontinuity in earnings change distribution. The discontinuity lasted for at least three years with magnitude comparable to that of the firms still subject to the bright-line test. In addition, newly listed firms that had never experienced the bright-line test showed similar tendency to avoid the same threshold. There is some evidence that these firms’ avoidance of the −50 per cent changes was partly because of market pressure.,Research on bright-line tests has to date focused on their immediate and direct effects on firms currently subject to such tests. This study finds that a bright-line disclosure regulation’s influence is not limited to the firms directly governed by the regulation. It could lead to widespread and long lasting distortions in financial reporting behaviors of firms not currently subject to such tests.,The paper has implications for regulators who study the economic consequences of bright-line regulations in general and analysts of the Chinese capital market in particular.,This is the first empirical report that bright-line disclosure regulations affected the financial reporting behavior of firms that were not directly subject to the bright-line tests.
{"title":"The spillover effects of a bright-line regulation: evidence from China","authors":"Yunling Song, Shihong Li, Ling Zhou","doi":"10.1108/ijaim-05-2019-0058","DOIUrl":"https://doi.org/10.1108/ijaim-05-2019-0058","url":null,"abstract":"The purpose of this paper is to investigate the spillover effects of a bright-line disclosure regulation that required Chinese listed firms to provide earnings forecasts if they anticipated specified, large earnings changes.,The paper examines the discontinuity of the earnings change distribution of firms listed on the Shenzhen Stock Market between 2010 and 2014. The paper finds that firms no longer subject to the bright-line test still exhibited discontinuity in earnings change distribution. The discontinuity lasted for at least three years with magnitude comparable to that of the firms still subject to the bright-line test. In addition, newly listed firms that had never experienced the bright-line test showed similar tendency to avoid the same threshold. There is some evidence that these firms’ avoidance of the −50 per cent changes was partly because of market pressure.,Research on bright-line tests has to date focused on their immediate and direct effects on firms currently subject to such tests. This study finds that a bright-line disclosure regulation’s influence is not limited to the firms directly governed by the regulation. It could lead to widespread and long lasting distortions in financial reporting behaviors of firms not currently subject to such tests.,The paper has implications for regulators who study the economic consequences of bright-line regulations in general and analysts of the Chinese capital market in particular.,This is the first empirical report that bright-line disclosure regulations affected the financial reporting behavior of firms that were not directly subject to the bright-line tests.","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"8 1","pages":"22-44"},"PeriodicalIF":30.2,"publicationDate":"2019-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85585466","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 : 2019-11-11DOI: 10.1108/ijoes-02-2019-0043
A. Alhares
Purpose The purpose of this study is to investigate the impact of corporate governance mechanisms on the cost of capital in Organisation for Economic Co-operation and Development (OECD) countries. Design/methodology/approach A panel data of 240 companies from Anglo-American and European countries between 2010 and 2017 were used. The ordinary least-squares multiple regression analysis was used to examine the relationships. The results were also robust to alternative measures and endogeneities. Findings The results showed that the corporate governance index and director ownership were negatively related to the cost of capital. Moreover, the study also reports a positive correlation between block ownership and the cost of capital. Originality/value This study extended the corporate governance literature by offering new evidence on the effect of corporate governance mechanisms on the cost of capital. Our findings will help regulators and policymakers in the OECD countries to evaluate the adequacy of the current corporate governance reforms to prevent management misconduct and scandals.
{"title":"Corporate governance and cost of capital in OECD countries","authors":"A. Alhares","doi":"10.1108/ijoes-02-2019-0043","DOIUrl":"https://doi.org/10.1108/ijoes-02-2019-0043","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to investigate the impact of corporate governance mechanisms on the cost of capital in Organisation for Economic Co-operation and Development (OECD) countries.\u0000\u0000\u0000Design/methodology/approach\u0000A panel data of 240 companies from Anglo-American and European countries between 2010 and 2017 were used. The ordinary least-squares multiple regression analysis was used to examine the relationships. The results were also robust to alternative measures and endogeneities.\u0000\u0000\u0000Findings\u0000The results showed that the corporate governance index and director ownership were negatively related to the cost of capital. Moreover, the study also reports a positive correlation between block ownership and the cost of capital.\u0000\u0000\u0000Originality/value\u0000This study extended the corporate governance literature by offering new evidence on the effect of corporate governance mechanisms on the cost of capital. Our findings will help regulators and policymakers in the OECD countries to evaluate the adequacy of the current corporate governance reforms to prevent management misconduct and scandals.\u0000","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"44 1","pages":""},"PeriodicalIF":30.2,"publicationDate":"2019-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80285885","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 : 2019-10-07DOI: 10.1108/ijaim-08-2018-0095
Haijing Liu, Hyun-Ah Lee
Purpose This paper aims to verify the effect of corporate social responsibility (CSR) on Chinese listed firms’ earnings management and tax avoidance. Specifically, this study investigates whether government-guided CSR implementation indeed drives firms to behave in a responsible manner by constraining earnings management and tax avoidance. Design/methodology/approach The paper analyses a sample of Chinese listed companies that are confronted with the unique situation of CSR being developed at a rapid pace by government-led policy and regulation. The study further investigates whether the effect of CSR on earnings management and tax avoidance is different for state-owned and private enterprises by partitioning the sample into these two subgroups. Findings The findings of this study show that government-guided CSR could be effective in reducing the firms’ earnings management and tax avoidance, even though the effect is limited to state-owned enterprises. Originality/value This paper provides new evidence on the relation of CSR with earnings management and tax avoidance in the Chinese context and sheds light on the importance of differentiating between the state-owned and private enterprises when studying the corporate behaviors of Chinese firms.
{"title":"The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies","authors":"Haijing Liu, Hyun-Ah Lee","doi":"10.1108/ijaim-08-2018-0095","DOIUrl":"https://doi.org/10.1108/ijaim-08-2018-0095","url":null,"abstract":"\u0000Purpose\u0000This paper aims to verify the effect of corporate social responsibility (CSR) on Chinese listed firms’ earnings management and tax avoidance. Specifically, this study investigates whether government-guided CSR implementation indeed drives firms to behave in a responsible manner by constraining earnings management and tax avoidance.\u0000\u0000\u0000Design/methodology/approach\u0000The paper analyses a sample of Chinese listed companies that are confronted with the unique situation of CSR being developed at a rapid pace by government-led policy and regulation. The study further investigates whether the effect of CSR on earnings management and tax avoidance is different for state-owned and private enterprises by partitioning the sample into these two subgroups.\u0000\u0000\u0000Findings\u0000The findings of this study show that government-guided CSR could be effective in reducing the firms’ earnings management and tax avoidance, even though the effect is limited to state-owned enterprises.\u0000\u0000\u0000Originality/value\u0000This paper provides new evidence on the relation of CSR with earnings management and tax avoidance in the Chinese context and sheds light on the importance of differentiating between the state-owned and private enterprises when studying the corporate behaviors of Chinese firms.\u0000","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"35 1","pages":""},"PeriodicalIF":30.2,"publicationDate":"2019-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76606962","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 : 2019-10-07DOI: 10.1108/ijaim-09-2018-0101
Cyrus Isaboke, Yan Chen
Purpose This study sought to evaluate the relationship between value relevance of financial information and conditional conservatism of non-financial companies listed in China. Design/methodology/approach Using panel data comprising of 28,723 firm years, the authors determine the value relevance of financial information before and after mandatory International Financial Reporting Standards (IFRS) adoption while incorporating the relationship with conditional conservatism. The authors further examined how this relationship varies between state and non-state owned companies. Findings Conditional conservatism is positively (negatively) related to value relevance prior (post) to mandatory IFRS adoption while it makes no difference as to whether a company is state or non-state owned, as IFRS has a positive and significant effect on value relevance. Conservatism, on the other hand, has a negative and insignificant relationship with market value of both state and non-state owned firms during the pre- and post-IFRS period. Originality/value By exploring an emerging economy, the authors provide evidence on the variations in value relevance amongst state and non-state owned firms. In particular, the authors establish the positive effect of IFRS on the value relevance of non-state firms as compared to state-owned institutions.
{"title":"IFRS adoption, value relevance and conditional conservatism: evidence from China","authors":"Cyrus Isaboke, Yan Chen","doi":"10.1108/ijaim-09-2018-0101","DOIUrl":"https://doi.org/10.1108/ijaim-09-2018-0101","url":null,"abstract":"\u0000Purpose\u0000This study sought to evaluate the relationship between value relevance of financial information and conditional conservatism of non-financial companies listed in China.\u0000\u0000\u0000Design/methodology/approach\u0000Using panel data comprising of 28,723 firm years, the authors determine the value relevance of financial information before and after mandatory International Financial Reporting Standards (IFRS) adoption while incorporating the relationship with conditional conservatism. The authors further examined how this relationship varies between state and non-state owned companies.\u0000\u0000\u0000Findings\u0000Conditional conservatism is positively (negatively) related to value relevance prior (post) to mandatory IFRS adoption while it makes no difference as to whether a company is state or non-state owned, as IFRS has a positive and significant effect on value relevance. Conservatism, on the other hand, has a negative and insignificant relationship with market value of both state and non-state owned firms during the pre- and post-IFRS period.\u0000\u0000\u0000Originality/value\u0000By exploring an emerging economy, the authors provide evidence on the variations in value relevance amongst state and non-state owned firms. In particular, the authors establish the positive effect of IFRS on the value relevance of non-state firms as compared to state-owned institutions.\u0000","PeriodicalId":46371,"journal":{"name":"International Journal of Accounting and Information Management","volume":"21 1","pages":""},"PeriodicalIF":30.2,"publicationDate":"2019-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73962758","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：