Pub Date : 2026-01-13DOI: 10.1016/j.bar.2026.101838
Muhammad Adnan, Muhammad Zubair Khan, Naimat U. Khan
{"title":"More Than Money: Venture Capital Allocation in National FinTech Innovation Systems","authors":"Muhammad Adnan, Muhammad Zubair Khan, Naimat U. Khan","doi":"10.1016/j.bar.2026.101838","DOIUrl":"https://doi.org/10.1016/j.bar.2026.101838","url":null,"abstract":"","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"53 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2026-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145962440","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 : 2026-01-12DOI: 10.1016/j.bar.2026.101839
Joanna Golden, Dr. Babak Mammadov, Dr. Hamid Vakilzadeh
This study examines the impact of corporate culture similarity between audit firms and their clients on financial reporting quality. Our study presents the first evidence investigating the cultural interaction between audit firms and their clients using a novel machine learning approach. Drawing on intergroup bias theory, we find that corporate culture similarity has a negative impact on financial reporting quality, supporting the prediction of lower quality due to insufficient due diligence by auditors in evaluating the aggressive accounting practices of client firms.
{"title":"The Impact of Corporate Culture Similarity between Audit Firms and Their Clients on Financial Reporting Quality","authors":"Joanna Golden, Dr. Babak Mammadov, Dr. Hamid Vakilzadeh","doi":"10.1016/j.bar.2026.101839","DOIUrl":"https://doi.org/10.1016/j.bar.2026.101839","url":null,"abstract":"This study examines the impact of corporate culture similarity between audit firms and their clients on financial reporting quality. Our study presents the first evidence investigating the cultural interaction between audit firms and their clients using a novel machine learning approach. Drawing on intergroup bias theory, we find that corporate culture similarity has a negative impact on financial reporting quality, supporting the prediction of lower quality due to insufficient due diligence by auditors in evaluating the aggressive accounting practices of client firms.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"50 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2026-01-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145957356","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 : 2026-01-10DOI: 10.1016/j.bar.2026.101836
Xiaoqian Zhu, Hao Sun, Yanpeng Chang, Jianping Li
Textual risk disclosures in annual reports, which directly and foresightedly discuss firms’ potential risks negatively impacting their operations, are rarely considered in financial distress prediction. This study explores whether textual risk disclosures can provide valuable information to improve financial distress prediction accuracy. To comprehensively extract information from textual risk disclosures, textual attributes are utilized to capture “How” risks are disclosed, and a topic model is adopted to identify the textual topics to reveal “What” risks are disclosed. Based on textual risk disclosures from 48,224 annual reports of U.S. firms from 2006 to 2023, the empirical results demonstrate that incorporating risk disclosures improves predictive performance compared to the benchmark using numerical financial, market, corporate governance, and macroeconomic variables. Moreover, “What” risks are disclosed can offer more information than “How” risks are disclosed. Last but most importantly, as prediction horizon increases to a longer time, numerical variables show a significant decline in predictive ability, whereas textual risk disclosures can provide more helpful information and even improve prediction performance better. This study enlightens that investors and regulators should pay attention to textual risk disclosures in annual reports when assessing financial distress risks.
{"title":"Predicting financial distress using textual risk disclosures in annual reports: How and what risks are disclosed?","authors":"Xiaoqian Zhu, Hao Sun, Yanpeng Chang, Jianping Li","doi":"10.1016/j.bar.2026.101836","DOIUrl":"https://doi.org/10.1016/j.bar.2026.101836","url":null,"abstract":"Textual risk disclosures in annual reports, which directly and foresightedly discuss firms’ potential risks negatively impacting their operations, are rarely considered in financial distress prediction. This study explores whether textual risk disclosures can provide valuable information to improve financial distress prediction accuracy. To comprehensively extract information from textual risk disclosures, textual attributes are utilized to capture “How” risks are disclosed, and a topic model is adopted to identify the textual topics to reveal “What” risks are disclosed. Based on textual risk disclosures from 48,224 annual reports of U.S. firms from 2006 to 2023, the empirical results demonstrate that incorporating risk disclosures improves predictive performance compared to the benchmark using numerical financial, market, corporate governance, and macroeconomic variables. Moreover, “What” risks are disclosed can offer more information than “How” risks are disclosed. Last but most importantly, as prediction horizon increases to a longer time, numerical variables show a significant decline in predictive ability, whereas textual risk disclosures can provide more helpful information and even improve prediction performance better. This study enlightens that investors and regulators should pay attention to textual risk disclosures in annual reports when assessing financial distress risks.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"81 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2026-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145957359","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 : 2026-01-09DOI: 10.1016/j.bar.2026.101837
Alex Nguyen, Jun Myung Song, Cameron Truong
We establish a measure of assessing the bilateral political relations between the United States and other countries. We hypothesize that political events and shifts, evidenced by changes in bilateral political relations, significantly increase uncertainty in financial markets, prompting analysts to adopt herding behavior as a risk-averse strategy. In efforts to navigate bilateral political uncertainty, analysts align their forecasts with the consensus to reduce the risk of individual error. We find that deteriorating bilateral political relations is associated with analysts exhibiting higher levels of herding in their earnings forecasts for foreign stocks listed in the US market, specifically in the form of American Depository Receipts (ADRs) from those countries. We show that uncertainty acts as the channel through which bilateral political relations influence analyst herding. Notably, analyst herding as triggered by poor bilateral political relations results in less accurate earnings forecasts. Overall, as analysts prioritize risk aversion in unpredictable political climates, there is a considerable reduction in the quality of their professional work.
{"title":"Bilateral political relations and analyst herding","authors":"Alex Nguyen, Jun Myung Song, Cameron Truong","doi":"10.1016/j.bar.2026.101837","DOIUrl":"https://doi.org/10.1016/j.bar.2026.101837","url":null,"abstract":"We establish a measure of assessing the bilateral political relations between the United States and other countries. We hypothesize that political events and shifts, evidenced by changes in bilateral political relations, significantly increase uncertainty in financial markets, prompting analysts to adopt herding behavior as a risk-averse strategy. In efforts to navigate bilateral political uncertainty, analysts align their forecasts with the consensus to reduce the risk of individual error. We find that deteriorating bilateral political relations is associated with analysts exhibiting higher levels of herding in their earnings forecasts for foreign stocks listed in the US market, specifically in the form of American Depository Receipts (ADRs) from those countries. We show that uncertainty acts as the channel through which bilateral political relations influence analyst herding. Notably, analyst herding as triggered by poor bilateral political relations results in less accurate earnings forecasts. Overall, as analysts prioritize risk aversion in unpredictable political climates, there is a considerable reduction in the quality of their professional work.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"255 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2026-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145957362","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 : 2025-12-10DOI: 10.1016/j.bar.2025.101817
Mengshu Hao, Jeong Hwan Joo
{"title":"Equity Incentives and Earnings Management: Evidence from the Adoption of an Anti-Hedging Policy","authors":"Mengshu Hao, Jeong Hwan Joo","doi":"10.1016/j.bar.2025.101817","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101817","url":null,"abstract":"","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"111 1","pages":"101817"},"PeriodicalIF":0.0,"publicationDate":"2025-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145732676","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 : 2025-12-05DOI: 10.1016/j.bar.2025.101814
Yaohua Qin, He Xiao, Xi He, Hanjie Meng
{"title":"Corrigendum to “Does audit Partner–Client relationship affect managerial tone? Evidence from earnings conference calls question and answer Sessions” [The British Accounting Review 101781]","authors":"Yaohua Qin, He Xiao, Xi He, Hanjie Meng","doi":"10.1016/j.bar.2025.101814","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101814","url":null,"abstract":"","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"45 1","pages":"101814"},"PeriodicalIF":0.0,"publicationDate":"2025-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145704978","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 : 2025-11-20DOI: 10.1016/j.bar.2025.101784
Daniel Cahill, Zhangxin (Frank) Liu, Lee Smales
{"title":"Technical talk in bitcoin and equity","authors":"Daniel Cahill, Zhangxin (Frank) Liu, Lee Smales","doi":"10.1016/j.bar.2025.101784","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101784","url":null,"abstract":"","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145553586","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 : 2025-11-20DOI: 10.1016/j.bar.2025.101805
Angela Hecimovic, Dominic Canestrari-Soh
{"title":"Strategies for Internal Auditors to expand their role in ESG assurance","authors":"Angela Hecimovic, Dominic Canestrari-Soh","doi":"10.1016/j.bar.2025.101805","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101805","url":null,"abstract":"","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"191 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145553711","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 : 2025-11-20DOI: 10.1016/j.bar.2025.101806
Qihui Gong, Huilong Liu, Jing Xie
{"title":"Bureaucratic Discretion and Auditor Choice: Evidence from a Quasi-natural Experiment*","authors":"Qihui Gong, Huilong Liu, Jing Xie","doi":"10.1016/j.bar.2025.101806","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101806","url":null,"abstract":"","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"27 1","pages":"101806"},"PeriodicalIF":0.0,"publicationDate":"2025-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145575676","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：