Pub Date : 2025-08-28DOI: 10.1016/j.bar.2025.101743
Paula Hill, Gerald J. Lobo, Shuo Wang
We propose a method of measuring the comparability of reported accounting numbers from the perspective of creditors. Our measure reflects the relationship between market variables related to default probabilities and key accounting numbers of interest to lenders. We demonstrate that our measure captures the mapping between the market variables and the accounting system and that the values are consistent with expected differences in comparability in a range of tests and settings. We employ this measure to determine the impact of comparability in the US primary bond market and find that it has a negative and significant relationship with the spread of credit rating assessments of new bond issues. We also show that new bond issues of firms with superior comparability have better credit ratings and reduced bond yields, ceteris paribus. We find that the benefits of our lender-focused, balance-sheet-based comparability measure to the public bond market are robust to controlling for the earnings-based financial statement comparability measure of De Franco et al. (2011), and independent of economic similarities between firm pairs. Our findings are commensurate with comparability reducing the information uncertainty surrounding credit risk assessments derived from a firm's financial information.
{"title":"Financial reporting comparability in US firms issuing debt in the US primary market","authors":"Paula Hill, Gerald J. Lobo, Shuo Wang","doi":"10.1016/j.bar.2025.101743","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101743","url":null,"abstract":"We propose a method of measuring the comparability of reported accounting numbers from the perspective of creditors. Our measure reflects the relationship between market variables related to default probabilities and key accounting numbers of interest to lenders. We demonstrate that our measure captures the mapping between the market variables and the accounting system and that the values are consistent with expected differences in comparability in a range of tests and settings. We employ this measure to determine the impact of comparability in the US primary bond market and find that it has a negative and significant relationship with the spread of credit rating assessments of new bond issues. We also show that new bond issues of firms with superior comparability have better credit ratings and reduced bond yields, ceteris paribus. We find that the benefits of our lender-focused, balance-sheet-based comparability measure to the public bond market are robust to controlling for the earnings-based financial statement comparability measure of De Franco et al. (2011), and independent of economic similarities between firm pairs. Our findings are commensurate with comparability reducing the information uncertainty surrounding credit risk assessments derived from a firm's financial information.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"50 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009027","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 : 2025-08-21DOI: 10.1016/j.bar.2025.101733
Zuben Jin
This study addresses the pressing issue of widespread unethical conduct among financial advisors, impacting both households and the broader economy. Utilizing a panel dataset of U.S. investment advisors and natural disaster occurrences, this research underscores a significant positive link between experiences of natural disasters and the likelihood of financial advisor misconduct. Notably, experiences with less severe disasters appear to drive the increase in misconduct. These experiences may boost advisors’ perceived confidence in handling risk, which in turn amplifies their risk-taking tendencies and leads to unethical behavior. Furthermore, instrumental variable and Difference-in-Differences analysis mitigates endogeneity concerns, and robustness tests and placebo analyses reinforce the credibility of the findings. Additionally, at the aggregate firm-branch level, our study demonstrates that advisors with more disaster experiences correlate with higher branch misconduct rates. Overall, this study offers insights into the intricate interplay of external shocks, risk appetite, and misconduct tendencies in the realm of financial advisory services.
{"title":"Riding the storm: How natural disasters shape financial advisor misconduct?","authors":"Zuben Jin","doi":"10.1016/j.bar.2025.101733","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101733","url":null,"abstract":"This study addresses the pressing issue of widespread unethical conduct among financial advisors, impacting both households and the broader economy. Utilizing a panel dataset of U.S. investment advisors and natural disaster occurrences, this research underscores a significant positive link between experiences of natural disasters and the likelihood of financial advisor misconduct. Notably, experiences with less severe disasters appear to drive the increase in misconduct. These experiences may boost advisors’ perceived confidence in handling risk, which in turn amplifies their risk-taking tendencies and leads to unethical behavior. Furthermore, instrumental variable and Difference-in-Differences analysis mitigates endogeneity concerns, and robustness tests and placebo analyses reinforce the credibility of the findings. Additionally, at the aggregate firm-branch level, our study demonstrates that advisors with more disaster experiences correlate with higher branch misconduct rates. Overall, this study offers insights into the intricate interplay of external shocks, risk appetite, and misconduct tendencies in the realm of financial advisory services.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"44 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144898886","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 : 2025-08-20DOI: 10.1016/j.bar.2025.101742
Alnoor Bhimani, Lino Cinquini, Teemu Malmi
Organisations adopting digital technologies are seeing alterations in the structure and nature of data they track and process. Within this landscape of change, accounting systems tend to focus on the collection and aggregation of financial transaction data and the provision of quantitative and non-financial information to support decision-making processes. Evidence is, however, emerging that accounting controls and financial reporting are being reshaped in digitalising environments. We consider a number of accounting issues tied to the intersection of digitalisation and organisational processes highlighting the control implications of these changes. We identify related research possibilities and discuss the value of methodological pluralism in studying accounting in digitalising contexts.
{"title":"What happens at the interface of digitalisation and accounting?","authors":"Alnoor Bhimani, Lino Cinquini, Teemu Malmi","doi":"10.1016/j.bar.2025.101742","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101742","url":null,"abstract":"Organisations adopting digital technologies are seeing alterations in the structure and nature of data they track and process. Within this landscape of change, accounting systems tend to focus on the collection and aggregation of financial transaction data and the provision of quantitative and non-financial information to support decision-making processes. Evidence is, however, emerging that accounting controls and financial reporting are being reshaped in digitalising environments. We consider a number of accounting issues tied to the intersection of digitalisation and organisational processes highlighting the control implications of these changes. We identify related research possibilities and discuss the value of methodological pluralism in studying accounting in digitalising contexts.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"44 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144898929","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 : 2025-08-18DOI: 10.1016/j.bar.2025.101740
Amanda Acintya, Galina Goncharenko, Susan Smith, Sumohon Matilal
Drawing on Actor-Network Theory (ANT) and the concept of translation (Callon, 1984), this study examines the construction of accountability, which revolves around the interactions between a non-governmental organisation (NGO) and its stakeholder groups. As NGOs were forced to alter their modus operandi to survive the COVID-19 pandemic while maintaining accountability, we set an ethnographic field study in an Indonesian NGO to follow its digitalisation journey. Our findings offer an insight into heterogeneous and intricate processes of NGO accountability construction, supported by digitalisation, predicated upon the various organisational actors in the NGO network. Our findings reveal how each actor rationalises distinct mechanisms, driven by the urgency and unpredictability of evolving conditions, and these actions together collectively shape the construction of the NGO's accountability. Our study demonstrates that the construction of NGO accountability extends beyond the traditional view of a dyadic and closed relationship between an NGO and its stakeholder groups but emerges from the networked interactions and relationships among a diverse array of stakeholders; thus, it underscores the layered and interconnected nature of accountability. Furthermore, by uncovering the social dynamics underpinning technology use, this study offers valuable insights into accountability technologies, particularly in response to extraordinary situations.
{"title":"A networked perspective on NGO accountability in the digital realm","authors":"Amanda Acintya, Galina Goncharenko, Susan Smith, Sumohon Matilal","doi":"10.1016/j.bar.2025.101740","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101740","url":null,"abstract":"Drawing on Actor-Network Theory (ANT) and the concept of translation (Callon, 1984), this study examines the construction of accountability, which revolves around the interactions between a non-governmental organisation (NGO) and its stakeholder groups. As NGOs were forced to alter their <ce:italic>modus operandi</ce:italic> to survive the COVID-19 pandemic while maintaining accountability, we set an ethnographic field study in an Indonesian NGO to follow its digitalisation journey. Our findings offer an insight into heterogeneous and intricate processes of NGO accountability construction, supported by digitalisation, predicated upon the various organisational actors in the NGO network. Our findings reveal how each actor rationalises distinct mechanisms, driven by the urgency and unpredictability of evolving conditions, and these actions together collectively shape the construction of the NGO's accountability. Our study demonstrates that the construction of NGO accountability extends beyond the traditional view of a dyadic and closed relationship between an NGO and its stakeholder groups but emerges from the networked interactions and relationships among a diverse array of stakeholders; thus, it underscores the layered and interconnected nature of accountability. Furthermore, by uncovering the social dynamics underpinning technology use, this study offers valuable insights into accountability technologies, particularly in response to extraordinary situations.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"47 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144898933","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 : 2025-08-13DOI: 10.1016/j.bar.2025.101739
Elena Giovannoni, Christian Huber
‘Net-Zero’ and ‘Nature-Positive’ are two compelling global goals for Nature. But what is the nature of Nature, and what should a Management Control system for Nature look like? We discuss these questions by commenting on the extant accounting literature on global goals for Nature and accounting's contribution to achieving them. We start with a reflection on the idea of ‘Zero’ both as a number and an abstraction offering infinite possible combinations in a simultaneously negative and positive world, and we comment on the role of accounting numbers and calculations in relation to Nature – not only as an ecosystem of interconnected elements, ultimately leading to Net-Zero or Nature-Positive outcomes, but also in its more mysterious and enchanting traits, as part of a ‘more than human’ world. We outline four possible areas of enquiry for Management Control scholars, looking into the tensions between measurement precision and intervention; micro and macro objects or spaces of intervention; positive and negative interventions ultimately leading to Net-Zero and Nature-Positive; rigorously estimated projections and imaginative Management Control. We call for accounting scholars to start new enquiries into these areas, moving beyond a concern about how to calculate, and instead shifting the focus towards embracing a more Nature-based, future-oriented, maybe even imaginative and ‘more than human’, approach to Management Control for Nature.
{"title":"Management Control for Nature: Beyond Net-Zero and Nature-Positive","authors":"Elena Giovannoni, Christian Huber","doi":"10.1016/j.bar.2025.101739","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101739","url":null,"abstract":"‘Net-Zero’ and ‘Nature-Positive’ are two compelling global goals for Nature. But what is the nature of Nature, and what should a Management Control system for Nature look like? We discuss these questions by commenting on the extant accounting literature on global goals for Nature and accounting's contribution to achieving them. We start with a reflection on the idea of ‘Zero’ both as a number and an abstraction offering infinite possible combinations in a simultaneously negative and positive world, and we comment on the role of accounting numbers and calculations in relation to Nature – not only as an ecosystem of interconnected elements, ultimately leading to Net-Zero or Nature-Positive outcomes, but also in its more mysterious and enchanting traits, as part of a ‘more than human’ world. We outline four possible areas of enquiry for Management Control scholars, looking into the tensions between measurement precision and intervention; micro and macro objects or spaces of intervention; positive and negative interventions ultimately leading to Net-Zero and Nature-Positive; rigorously estimated projections and imaginative Management Control. We call for accounting scholars to start new enquiries into these areas, moving beyond a concern about <ce:italic>how to</ce:italic> calculate, and instead shifting the focus towards embracing a more Nature-based, future-oriented, maybe even imaginative and ‘more than human’, approach to Management Control for Nature.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"41 1","pages":"101739"},"PeriodicalIF":0.0,"publicationDate":"2025-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144924001","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 : 2025-08-11DOI: 10.1016/j.bar.2025.101737
Thauan Carvalho, Fernanda Sauerbronn, Jim Haslam, Mercy Denedo
This study explores the financialisation of housing policy in Brazil with focus on how accounting practices facilitated this, including forced removals in Campos Elíseos, São Paulo, during the COVID-19 pandemic. Using Santos’ Two Circuits Theory, the study explores how financialisation reinforces socio-spatial inequalities by displacing marginalised communities under the guise of urban development. Drawing from archival records, policy documents, and social movement reports, the study employs Situational Analysis to map out the complex dynamics of urban interventions and forced removals. The study reveals that under the guise of urban revitalisation, local elites and financial actors exploited the pandemic to accelerate forced evictions, disregarding court injunctions and legal protections. Accounting practices were utilised in legitimising neoliberal policies, which framed access to housing as a commodity rather than as a right. The findings indicate that financialisation benefits the upper urban circuit and exacerbates inequality in the lower circuit, displacing vulnerable residents without adequate housing provisions. Nascent counter accounting is indicated. The study calls for re-evaluation of housing policies, prioritising public accountability and social justice, and advocates for more counter accounting challenging the neoliberal housing model.
{"title":"Urban social housing in Brazil, forced removals at Campos Elíseos, and Accounting: A framing through Milton Santos","authors":"Thauan Carvalho, Fernanda Sauerbronn, Jim Haslam, Mercy Denedo","doi":"10.1016/j.bar.2025.101737","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101737","url":null,"abstract":"This study explores the financialisation of housing policy in Brazil with focus on how accounting practices facilitated this, including forced removals in Campos Elíseos, São Paulo, during the COVID-19 pandemic. Using Santos’ Two Circuits Theory, the study explores how financialisation reinforces socio-spatial inequalities by displacing marginalised communities under the guise of urban development. Drawing from archival records, policy documents, and social movement reports, the study employs Situational Analysis to map out the complex dynamics of urban interventions and forced removals. The study reveals that under the guise of urban revitalisation, local elites and financial actors exploited the pandemic to accelerate forced evictions, disregarding court injunctions and legal protections. Accounting practices were utilised in legitimising neoliberal policies, which framed access to housing as a commodity rather than as a right. The findings indicate that financialisation benefits the upper urban circuit and exacerbates inequality in the lower circuit, displacing vulnerable residents without adequate housing provisions. Nascent counter accounting is indicated. The study calls for re-evaluation of housing policies, prioritising public accountability and social justice, and advocates for more counter accounting challenging the neoliberal housing model.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"26 1","pages":"101737"},"PeriodicalIF":0.0,"publicationDate":"2025-08-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144924018","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 : 2025-07-11DOI: 10.1016/j.bar.2025.101703
Ying Dou, Emma Jincheng Zhang
We find that Mergers and Acquisitions (hereafter M&As) can cause severe distractions for audit teams of the acquirers. Distracted audit teams cause delays in the filings of annual financial reports by their other clients and are 4% more likely to lose those clients. Clients of distracted auditors exhibit lower audit quality, evidenced by higher chances of financial misstatements and shareholder class action lawsuits due to misstatement or misrepresentation of material information. The market reacts negatively to auditor distractions, suggesting a significant shareholder wealth impact. Our paper identifies a channel for M&As to create an adverse impact on firms that merely share the same auditor with the acquirer firms.
{"title":"Auditor Distraction: An Unintended Consequence of M&As*","authors":"Ying Dou, Emma Jincheng Zhang","doi":"10.1016/j.bar.2025.101703","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101703","url":null,"abstract":"We find that Mergers and Acquisitions (hereafter M&As) can cause severe distractions for audit teams of the acquirers. Distracted audit teams cause delays in the filings of annual financial reports by their other clients and are 4% more likely to lose those clients. Clients of distracted auditors exhibit lower audit quality, evidenced by higher chances of financial misstatements and shareholder class action lawsuits due to misstatement or misrepresentation of material information. The market reacts negatively to auditor distractions, suggesting a significant shareholder wealth impact. Our paper identifies a channel for M&As to create an adverse impact on firms that merely share the same auditor with the acquirer firms.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"23 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144621798","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 : 2025-07-10DOI: 10.1016/j.bar.2025.101706
Xiaoqi Chen, Zhifang Chen, Wouter Torsin, Albert Tsang, Xiao Zeng
Using a large international dataset, this study documents that the country-level adoption of mandatory ESG reporting requirement facilitates domestic firms’ cross-listing activities. Cross-sectional analyses reveal that this effect is more pronounced for opaque firms, those with a higher dependence on external financing, those with higher ex-ante agency costs, and for firms headquartered in home countries with a weak legal environment. Results of additional analyses reveal that firms are more likely to cross-list to countries that also have an active ESG mandate in place, countries where domestic firms have a higher ESG performance, and in developed capital markets. We further find that cross-listing firms are likely to attract a greater number of institutional investors and reduce their cost of debt after post-ESG mandate cross-listing. Finally, we document a heightened response for firms with pre-mandate voluntary ESG disclosures and a weaker response when the mandate is non-government issued.
{"title":"Mandatory ESG Reporting and Cross-Listing Activities: Worldwide Evidence","authors":"Xiaoqi Chen, Zhifang Chen, Wouter Torsin, Albert Tsang, Xiao Zeng","doi":"10.1016/j.bar.2025.101706","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101706","url":null,"abstract":"Using a large international dataset, this study documents that the country-level adoption of mandatory ESG reporting requirement facilitates domestic firms’ cross-listing activities. Cross-sectional analyses reveal that this effect is more pronounced for opaque firms, those with a higher dependence on external financing, those with higher ex-ante agency costs, and for firms headquartered in home countries with a weak legal environment. Results of additional analyses reveal that firms are more likely to cross-list to countries that also have an active ESG mandate in place, countries where domestic firms have a higher ESG performance, and in developed capital markets. We further find that cross-listing firms are likely to attract a greater number of institutional investors and reduce their cost of debt after post-ESG mandate cross-listing. Finally, we document a heightened response for firms with pre-mandate voluntary ESG disclosures and a weaker response when the mandate is non-government issued.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"83 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144621772","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 : 2025-07-10DOI: 10.1016/j.bar.2025.101704
Isabel-María García-Sánchez, Nazim Hussain, Cristina Aibar-Guzmán, Beatriz Aibar-Guzmán
Controversies, news about inappropriate corporate behaviour from an environmental, social, and governance (ESG) perspective, published in the media, put companies in a delicate situation and represent a reputational risk that can have a negative impact on firm value. In this paper, we analyse whether and under what conditions this type of negative news leads to business decisions aimed at ensuring stakeholder confidence, such as engaging assurance services for ESG information, and we determine the impact that this decision may have on the image and value of publicly questioned companies. The results obtained for a sample of 1,149 multinational companies, of which 888 have engaged external assurance, show that controversies have favoured this decision, which improves the reputation, stakeholder engagement and market value of companies, being slightly affected by negative news about corporate actions related to customers, shareholders and investors, and employees.
{"title":"ESG CONTROVERSIES AND EXTERNAL ASSURANCE: EXAMINING THEIR IMPACT ON FIRM VALUE AND IMAGE","authors":"Isabel-María García-Sánchez, Nazim Hussain, Cristina Aibar-Guzmán, Beatriz Aibar-Guzmán","doi":"10.1016/j.bar.2025.101704","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101704","url":null,"abstract":"Controversies, news about inappropriate corporate behaviour from an environmental, social, and governance (ESG) perspective, published in the media, put companies in a delicate situation and represent a reputational risk that can have a negative impact on firm value. In this paper, we analyse whether and under what conditions this type of negative news leads to business decisions aimed at ensuring stakeholder confidence, such as engaging assurance services for ESG information, and we determine the impact that this decision may have on the image and value of publicly questioned companies. The results obtained for a sample of 1,149 multinational companies, of which 888 have engaged external assurance, show that controversies have favoured this decision, which improves the reputation, stakeholder engagement and market value of companies, being slightly affected by negative news about corporate actions related to customers, shareholders and investors, and employees.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"37 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144621784","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 : 2025-07-09DOI: 10.1016/j.bar.2025.101702
Bao Doan, Duc Hong Vo
We investigate the interconnection between net buying pressure, proxied by the order imbalance, in derivatives, including futures and options, and spot markets. This study focuses on two main types of cryptocurrencies, Bitcoin and Ethereum, using the hourly data from January 2019 to December 2022. We find that the order imbalance in the spot or futures market improves the return and volatility predictive powers of order imbalance in the options market and vice versa, depending on option moneyness and cryptocurrency. The cross-market impact results are consistent with the intraday pattern of high liquidity-more informative price in underlying market and driven by the market sentiments.
{"title":"The Interconnection between Net Buying Pressures in Derivatives and Spot Markets","authors":"Bao Doan, Duc Hong Vo","doi":"10.1016/j.bar.2025.101702","DOIUrl":"https://doi.org/10.1016/j.bar.2025.101702","url":null,"abstract":"We investigate the interconnection between net buying pressure, proxied by the order imbalance, in derivatives, including futures and options, and spot markets. This study focuses on two main types of cryptocurrencies, Bitcoin and Ethereum, using the hourly data from January 2019 to December 2022. We find that the order imbalance in the spot or futures market improves the return and volatility predictive powers of order imbalance in the options market and vice versa, depending on option moneyness and cryptocurrency. The cross-market impact results are consistent with the intraday pattern of high liquidity-more informative price in underlying market and driven by the market sentiments.","PeriodicalId":501001,"journal":{"name":"The British Accounting Review","volume":"23 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2025-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144621832","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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