Pub Date : 2025-09-13DOI: 10.1016/j.intaccaudtax.2025.100718
Charlotte Haugland Sundkvist , Limei Che , Tonny Stenheim
This study examines the association between earnings quality and ownership of the controlling family and the number of family owners using a unique dataset containing detailed information on family relationships for the entire population of Norwegian private family firms. Utilizing the unique nature of private firms that some firms are fully owned by the controlling family, we first investigate earnings quality in fully and partially owned private family firms. Results show that, compared to fully owned family firms, earnings quality is lower for family firms that are partially owned by the controlling family. Moreover, we find evidence that earnings quality is negatively associated with the number of family owners. This paper advances our understanding of the impact of ownership structure on earnings quality in private family firms and sheds new light for regulators and other stakeholders in terms of accounting practices in private family firms.
{"title":"Ownership structure and earnings quality in private family firms","authors":"Charlotte Haugland Sundkvist , Limei Che , Tonny Stenheim","doi":"10.1016/j.intaccaudtax.2025.100718","DOIUrl":"10.1016/j.intaccaudtax.2025.100718","url":null,"abstract":"<div><div>This study examines the association between earnings quality and ownership of the controlling family and the number of family owners using a unique dataset containing detailed information on family relationships for the entire population of Norwegian private family firms. Utilizing the unique nature of private firms that some firms are fully owned by the controlling family, we first investigate earnings quality in fully and partially owned private family firms. Results show that, compared to fully owned family firms, earnings quality is lower for family firms that are partially owned by the controlling family. Moreover, we find evidence that earnings quality is negatively associated with the number of family owners. This paper advances our understanding of the impact of ownership structure on earnings quality in private family firms and sheds new light for regulators and other stakeholders in terms of accounting practices in private family firms.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100718"},"PeriodicalIF":3.7,"publicationDate":"2025-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145157069","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 : 2025-09-10DOI: 10.1016/j.intaccaudtax.2025.100717
Christos I. Negkakis , Ioannis C. Negkakis , Christos Pavlou , Antonios Persakis
We examine the effect of Economic Political Uncertainty (EPU), measured by the World Uncertainty Index developed by Ahir et al. (2022), on tax evasion and avoidance across 39 countries from 1995 to 2015. We further examine the moderating effects of tax morale and religiosity. We highlight how EPU impacts corporate decisions to engage in tax sheltering, and we document the moderating role of tax morale and religiosity. The findings suggest that during periods of higher EPU, firms are more inclined to engage in tax avoidance than evasion. Additionally, higher levels of tax morale moderate the impact of EPU on tax avoidance in developed economies, while religiosity moderates the impact of EPU on both tax avoidance and evasion across the whole sample and specifically in developing countries. We contribute to the understanding of how sociocultural factors influence the relationship between EPU and corporate tax behavior. We offer important insights for policymakers designing tax regulations and firms developing tax strategies in different political and economic environments.
{"title":"Tax avoidance and evasion under economic political uncertainty: The moderating roles of tax morale and religiosity","authors":"Christos I. Negkakis , Ioannis C. Negkakis , Christos Pavlou , Antonios Persakis","doi":"10.1016/j.intaccaudtax.2025.100717","DOIUrl":"10.1016/j.intaccaudtax.2025.100717","url":null,"abstract":"<div><div>We examine the effect of Economic Political Uncertainty (EPU), measured by the World Uncertainty Index developed by <span><span>Ahir et al. (2022)</span></span>, on tax evasion and avoidance across 39 countries from 1995 to 2015. We further examine the moderating effects of tax morale and religiosity. We highlight how EPU impacts corporate decisions to engage in tax sheltering, and we document the moderating role of tax morale and religiosity. The findings suggest that during periods of higher EPU, firms are more inclined to engage in tax avoidance than evasion. Additionally, higher levels of tax morale moderate the impact of EPU on tax avoidance in developed economies, while religiosity moderates the impact of EPU on both tax avoidance and evasion across the whole sample and specifically in developing countries. We contribute to the understanding of how sociocultural factors influence the relationship between EPU and corporate tax behavior. We offer important insights for policymakers designing tax regulations and firms developing tax strategies in different political and economic environments.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100717"},"PeriodicalIF":3.7,"publicationDate":"2025-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145060193","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 : 2025-09-04DOI: 10.1016/j.intaccaudtax.2025.100716
Stergios Leventis (Editor-in-Chief)
{"title":"Publishing in JIAAT – Part 5: Conclusions","authors":"Stergios Leventis (Editor-in-Chief)","doi":"10.1016/j.intaccaudtax.2025.100716","DOIUrl":"10.1016/j.intaccaudtax.2025.100716","url":null,"abstract":"","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100716"},"PeriodicalIF":3.7,"publicationDate":"2025-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145527802","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}
This study investigates the impact of social capital on earnings management and the moderating role of corporate governance in shaping that relationship. We explore how the interaction between social capital and other mechanisms, namely culture and formal institutions, affects earnings management, based on the concept that corporate governance can strengthen the impact of social capital on earnings management by reinforcing ethical norms and accountability. Using data from 14 countries, we present evidence that social capital has an effect on earnings management beyond the influence of cultural attributes. Moreover, the impact of social capital is particularly significant in firms with low corporate governance quality. Further analysis shows that the influence of social capital on earnings management is heightened in countries exhibiting low levels of individualism, power distance, and indulgence, and in countries with a code law system, lower ownership concentration, and higher disclosure quality. Our study contributes to the literature by demonstrating, using a cross-country context, that social capital constrains earnings management practices. It also highlights the additional impact of social capital beyond cultural dimensions, emphasizing its distinct role as a norm-enforcing mechanism with sanctions, separate from attributes such as individualism or uncertainty avoidance. Furthermore, the study offers new insights into the interplay between social capital and corporate governance in shaping corporate financial practices.
{"title":"Social capital, corporate governance, and earnings management: Cross-country evidence","authors":"Ahmed Aboud , Sonia Brandon , Hesham Bassyouny , Panagiota Papadimitri , Tarek Abdelfattah","doi":"10.1016/j.intaccaudtax.2025.100714","DOIUrl":"10.1016/j.intaccaudtax.2025.100714","url":null,"abstract":"<div><div>This study investigates the impact of social capital on earnings management and the moderating role of corporate governance in shaping that relationship. We explore how the interaction between social capital and other mechanisms, namely culture and formal institutions, affects earnings management, based on the concept that corporate governance can strengthen the impact of social capital on earnings management by reinforcing ethical norms and accountability. Using data from 14 countries, we present evidence that social capital has an effect on earnings management beyond the influence of cultural attributes. Moreover, the impact of social capital is particularly significant in firms with low corporate governance quality. Further analysis shows that the influence of social capital on earnings management is heightened in countries exhibiting low levels of individualism, power distance, and indulgence, and in countries with a code law system, lower ownership concentration, and higher disclosure quality. Our study contributes to the literature by demonstrating, using a cross-country context, that social capital constrains earnings management practices. It also highlights the additional impact of social capital beyond cultural dimensions, emphasizing its distinct role as a norm-enforcing mechanism with sanctions, separate from attributes such as individualism or uncertainty avoidance. Furthermore, the study offers new insights into the interplay between social capital and corporate governance in shaping corporate financial practices.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100714"},"PeriodicalIF":3.7,"publicationDate":"2025-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144827333","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}
We extend the results of previous literature by empirically examining the relationship between lead signing (engagement) partners’ gender and the likelihood of issuing a modified audit opinion. The results show that female lead signing partners are more likely than their male counterparts to issue modified audit opinions. The results further indicate that when the audit engagement team is small, and the number of female signing partners equals or exceeds that of their male counterparts, female lead signing partners are more likely than their male counterparts to issue modified audit opinions. These results suggest that female lead signing partners are a significant predictor of independent attitude (or audit quality) and that we should consider the size and composition of an audit engagement team to enhance the influence of female lead signing partners.
{"title":"The effect of female lead signing partners on modified audit opinions: Evidence from Japan","authors":"Noriyuki Tsunogaya , Masaki Kusano , Yoshihiro Sakuma","doi":"10.1016/j.intaccaudtax.2025.100715","DOIUrl":"10.1016/j.intaccaudtax.2025.100715","url":null,"abstract":"<div><div>We extend the results of previous literature by empirically examining the relationship between lead signing (engagement) partners’ gender and the likelihood of issuing a modified audit opinion. The results show that female lead signing partners are more likely than their male counterparts to issue modified audit opinions. The results further indicate that when the audit engagement team is small, and the number of female signing partners equals or exceeds that of their male counterparts, female lead signing partners are more likely than their male counterparts to issue modified audit opinions. These results suggest that female lead signing partners are a significant predictor of independent attitude (or audit quality) and that we should consider the size and composition of an audit engagement team to enhance the influence of female lead signing partners.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100715"},"PeriodicalIF":3.7,"publicationDate":"2025-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144841475","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 : 2025-07-24DOI: 10.1016/j.intaccaudtax.2025.100713
Michael Adams , Zafeira Kastrinaki
This study examines the link between formally scheduled board meetings, profitability, and solvency in the United Kingdom’s (UK) property-casualty insurance industry. A panel data design using 83 UK insurers writing property casualty insurance for the period 2004/5 to 2013/4 is employed. The study finds that increasing the number of board meetings scheduled each year enhances overall attendance rates. However, outside directors with financial experience have relatively better attendance rates than their counterparts with less technical expertise. The study also finds that overall board meeting attendance and directorate turn-out at strategy and remuneration meetings improve profitability but not solvency. In addition, board meeting attendance by outside directors falls when prior period profitability is sound, suggesting a ’complacency-effect’ among non-executives. The lack of significance between solvency and both total and outside director attendance also hints at a ’dependency-effect’, whereby boards rely on professional managers (actuarial technocrats) to optimize financial strength and condition. Our results have implications for insurers and regulators in deciding on the suitability of candidates applying for board-level positions.
{"title":"Do board meetings matter in the insurance industry?","authors":"Michael Adams , Zafeira Kastrinaki","doi":"10.1016/j.intaccaudtax.2025.100713","DOIUrl":"10.1016/j.intaccaudtax.2025.100713","url":null,"abstract":"<div><div>This study examines the link between formally scheduled board meetings, profitability, and solvency in the United Kingdom’s (UK) property-casualty insurance industry. A panel data design using 83 UK insurers writing property casualty insurance for the period 2004/5 to 2013/4 is employed. The study finds that increasing the number of board meetings scheduled each year enhances overall attendance rates. However, outside directors with financial experience have relatively better attendance rates than their counterparts with less technical expertise. The study also finds that overall board meeting attendance and directorate turn-out at strategy and remuneration meetings improve profitability but not solvency. In addition, board meeting attendance by outside directors falls when prior period profitability is sound, suggesting a ’complacency-effect’ among non-executives. The lack of significance between solvency and both total and outside director attendance also hints at a ’dependency-effect’, whereby boards rely on professional managers (actuarial technocrats) to optimize financial strength and condition. Our results have implications for insurers and regulators in deciding on the suitability of candidates applying for board-level positions.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100713"},"PeriodicalIF":3.3,"publicationDate":"2025-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144704742","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 : 2025-07-14DOI: 10.1016/j.intaccaudtax.2025.100712
Omar Alhamad , Sardar Ahmad , John Ziyang Zhang
This study investigates the effect of blockholders’ characteristics on audit fees by focusing on the Type II agency problem. Our study contributes to the debate on the interplay between blockholders’ characteristics and audit fees on a sample of smaller and medium-sized firms listed on the United Kingdom (UK)’s Alternative Investment Market (AIM). Using voting rights as a proxy for blockholders’ power, the findings of the study show that the presence and number of blockholders are positively associated with audit fees while voting dispersion is negatively associated with audit fees. Furthermore, the study provides evidence that the interplay between blockholders and external auditing is affected by coalition formation between blockholders and the largest controlling shareholder. Additional analysis reveals that if the first two and three largest blockholders are of the same type (such as all families or all corporations), then audit fees for those firms are higher than for firms where these blockholders are of a different type. In particular, the impact of blockholders on audit fees is more positive when firms are controlled by the holding of a family. Our findings have important implications for policymakers and audit practice regarding the interplay among external corporate governance mechanisms and institutional settings.
{"title":"The nuanced interplay between blockholders and audit fees: Empirical evidence from the UK alternative investment market","authors":"Omar Alhamad , Sardar Ahmad , John Ziyang Zhang","doi":"10.1016/j.intaccaudtax.2025.100712","DOIUrl":"10.1016/j.intaccaudtax.2025.100712","url":null,"abstract":"<div><div>This study investigates the effect of blockholders’ characteristics on audit fees by focusing on the Type II agency problem. Our study contributes to the debate on the interplay between blockholders’ characteristics and audit fees on a sample of smaller and medium-sized firms listed on the United Kingdom (UK)’s Alternative Investment Market (AIM). Using voting rights as a proxy for blockholders’ power, the findings of the study show that the presence and number of blockholders are positively associated with audit fees while voting dispersion is negatively associated with audit fees. Furthermore, the study provides evidence that the interplay between blockholders and external auditing is affected by coalition formation between blockholders and the largest controlling shareholder. Additional analysis reveals that if the first two and three largest blockholders are of the same type (such as all families or all corporations), then audit fees for those firms are higher than for firms where these blockholders are of a different type. In particular, the impact of blockholders on audit fees is more positive when firms are controlled by the holding of a family. Our findings have important implications for policymakers and audit practice regarding the interplay among external corporate governance mechanisms and institutional settings.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100712"},"PeriodicalIF":3.3,"publicationDate":"2025-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144679056","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 : 2025-06-27DOI: 10.1016/j.intaccaudtax.2025.100711
Francesca Rossignoli , Saverio Bozzolan , Andrea Lionzo
Drawing from the Upper Echelons Theory (UET), this study assesses how firms’ accounting outcomes at the transaction level are influenced by the Chief Executive Officer (CEO)’s individual characteristic of financial expertise and managerial status from structural and relational power. We use Purchase Price Allocation (PPA) as a key empirical context, given its technical nature. Utilizing a proprietary dataset that includes information on business combination and key officers’ characteristics, we employ multivariate analysis to explore the relationship between the CEO financial expertise and reporting transparency, and the moderating role of the CEO’s power. Our findings indicate that firms led by financial expert CEOs are more likely to allocate the purchase price to specific assets. Furthermore, CEOs’ structural power enhances the impact of financial expertise on PPA decisions, whereas relational power does not support a similar effect. Robustness checks confirm the validity of our results. This research contributes to the accounting literature by extending UET predictions, highlighting that accounting outcomes are systematically influenced by CEO financial expertise and illustrating how different managerial status within corporate governance affect financial reporting transparency.
{"title":"Financial expert CEOs: Evidence from purchase price allocation","authors":"Francesca Rossignoli , Saverio Bozzolan , Andrea Lionzo","doi":"10.1016/j.intaccaudtax.2025.100711","DOIUrl":"10.1016/j.intaccaudtax.2025.100711","url":null,"abstract":"<div><div>Drawing from the Upper Echelons Theory (UET), this study assesses how firms’ accounting outcomes at the transaction level are influenced by the Chief Executive Officer (CEO)’s individual characteristic of financial expertise and managerial status from structural and relational power. We use Purchase Price Allocation (PPA) as a key empirical context, given its technical nature. Utilizing a proprietary dataset that includes information on business combination and key officers’ characteristics, we employ multivariate analysis to explore the relationship between the CEO financial expertise and reporting transparency, and the moderating role of the CEO’s power. Our findings indicate that firms led by financial expert CEOs are more likely to allocate the purchase price to specific assets. Furthermore, CEOs’ structural power enhances the impact of financial expertise on PPA decisions, whereas relational power does not support a similar effect. Robustness checks confirm the validity of our results. This research contributes to the accounting literature by extending UET predictions, highlighting that accounting outcomes are systematically influenced by CEO financial expertise and illustrating how different managerial status within corporate governance affect financial reporting transparency.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100711"},"PeriodicalIF":3.3,"publicationDate":"2025-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144578856","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 : 2025-06-27DOI: 10.1016/j.intaccaudtax.2025.100710
{"title":"The journal of international accounting, auditing and taxation (JIAAT) excellence in reviewing 2024","authors":"","doi":"10.1016/j.intaccaudtax.2025.100710","DOIUrl":"10.1016/j.intaccaudtax.2025.100710","url":null,"abstract":"","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100710"},"PeriodicalIF":3.7,"publicationDate":"2025-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145527804","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 : 2025-06-13DOI: 10.1016/j.intaccaudtax.2025.100708
Yang Wang , Xin Chen , Yifei Zhang
In this paper, we study the impact of management tones on corporate information asymmetry at earnings communication conferences during China’s COVID-19 outbreak. We show that firms’ information asymmetry was reduced when management used more positive tones. This positive effect was more pronounced for firms in those regions more affected by the pandemic, when participants raised more questions, or when the Chief Executive Officers attended at these conferences. We argue that an internet search is a channel through which management tones reduce information asymmetry. Our paper sheds light on the importance of management tones during a crisis and highlights the positive roles that top management engagement and conference participants’ activism play in the information environment.
{"title":"Management tone and corporate information asymmetry in times of pandemic crisis","authors":"Yang Wang , Xin Chen , Yifei Zhang","doi":"10.1016/j.intaccaudtax.2025.100708","DOIUrl":"10.1016/j.intaccaudtax.2025.100708","url":null,"abstract":"<div><div>In this paper, we study the impact of management tones on corporate information asymmetry at earnings communication conferences during China’s COVID-19 outbreak. We show that firms’ information asymmetry was reduced when management used more positive tones. This positive effect was more pronounced for firms in those regions more affected by the pandemic, when participants raised more questions, or when the Chief Executive Officers attended at these conferences. We argue that an internet search is a channel through which management tones reduce information asymmetry. Our paper sheds light on the importance of management tones during a crisis and highlights the positive roles that top management engagement and conference participants’ activism play in the information environment.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"59 ","pages":"Article 100708"},"PeriodicalIF":3.3,"publicationDate":"2025-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144330247","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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