Pub Date : 2020-06-26DOI: 10.22452/ajba.vol13no1.8
Cheah Saw Lee, Farzana Parveen Tajudeen
Purpose: With the embedment of Artificial Intelligence (AI) technology into the accounting software, accounting function entered another phase of evolution in terms of the working method. By integrating the AI-based accounting software into the operational tasks, the functions of account payables and account receivables become easy and efficient. Despite the tremendous advantages of AI, the adoption of AI in Malaysia is still low relatively compare to other countries. Furthermore, there are limited academic research performed to study the impact of AI adoption on the organisations especially from the accounting perspective. Therefore, this study aims to investigate the use and impact of AI-based accounting software in organizations. Methodology: Face-to face in-depth semi structure interviews were conducted among nine organizations that are using AI based accounting software. The representatives who participated in the interviews were from the accounting service division of the respective organisation. Constant comparative method was used to analyse the data collected. Finding: The study found the usage of the AI-based accounting software has proved to have significant impact on the organisations in terms of increased productivity, improved efficiency, improved customer service, flexible working style, process governance and manpower saving. Originality: AI has emerged as a disruption technology in the era of Industry 4.0. This research has studied on the implication of AI adoption in the accounting function. From the result of this study, it has evidenced that adoption of AI-based accounting software in account payable function has yielded positive impact to the organisations. The finding will to spur the confidence of the organisations in Malaysia to invest in the AI technology.
{"title":"Usage and Impact of Artificial Intelligence on Accounting: 213 Evidence from Malaysian Organisations","authors":"Cheah Saw Lee, Farzana Parveen Tajudeen","doi":"10.22452/ajba.vol13no1.8","DOIUrl":"https://doi.org/10.22452/ajba.vol13no1.8","url":null,"abstract":"Purpose: With the embedment of Artificial Intelligence (AI) technology into the accounting software, accounting function entered another phase of evolution in terms of the working method. By integrating the AI-based accounting software into the operational tasks, the functions of account payables and account receivables become easy and efficient. Despite the tremendous advantages of AI, the adoption of AI in Malaysia is still low relatively compare to other countries. Furthermore, there are limited academic research performed to study the impact of AI adoption on the organisations especially from the accounting perspective. Therefore, this study aims to investigate the use and impact of AI-based accounting software in organizations. \u0000Methodology: Face-to face in-depth semi structure interviews were conducted among nine organizations that are using AI based accounting software. The representatives who participated in the interviews were from the accounting service division of the respective organisation. Constant comparative method was used to analyse the data collected. \u0000Finding: The study found the usage of the AI-based accounting software has proved to have significant impact on the organisations in terms of increased productivity, improved efficiency, improved customer service, flexible working style, process governance and manpower saving. \u0000Originality: AI has emerged as a disruption technology in the era of Industry 4.0. This research has studied on the implication of AI adoption in the accounting function. From the result of this study, it has evidenced that adoption of AI-based accounting software in account payable function has yielded positive impact to the organisations. The finding will to spur the confidence of the organisations in Malaysia to invest in the AI technology.","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":"13 1","pages":"213-240"},"PeriodicalIF":0.9,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45303856","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 : 2020-06-26DOI: 10.22452/ajba.vol13no1.1
A. Aflatooni, Mahdi Khazaei
Manuscript type: Research paper Research aims: This paper examines whether the firms’ leverage deviation (i.e., actual leverage minus target leverage) and leverage adjustment speed are influenced by information asymmetry. Design/Methodology/Approach: To achieve research goals, this paper uses archival data from firms listed in the Tehran Stock Exchange for the period of 2004-2017 and applies the static and dynamic panel data approach. Research Findings: The research results show that an increase in information asymmetry increases the firms’ leverage deviation. Furthermore, results indicate that firms with a higher (lower) level of information asymmetry tend to adjust their actual leverage toward the target, slower (faster) than that of other firms. These results are robust to different sample periods, an alternative set of leverage determinants, and various estimation methods. Theoretical contributions/Originality: This is the first study that investigates the effect of information asymmetry on leverage deviation and leverage adjustment speed. The outcome of this study is useful for policy implication in the context of financing decisions. Keywords Information Asymmetry, Leverage Adjustment Speed, Leverage Deviation
{"title":"\"Information Asymmetry, Leverage Deviation and Leverage Adjustment Speed \"","authors":"A. Aflatooni, Mahdi Khazaei","doi":"10.22452/ajba.vol13no1.1","DOIUrl":"https://doi.org/10.22452/ajba.vol13no1.1","url":null,"abstract":"Manuscript type: Research paper \u0000Research aims: This paper examines whether the firms’ leverage deviation (i.e., actual leverage minus target leverage) and leverage adjustment speed are influenced by information asymmetry. \u0000Design/Methodology/Approach: To achieve research goals, this paper uses archival data from firms listed in the Tehran Stock Exchange for the period of 2004-2017 and applies the static and dynamic panel data approach. \u0000Research Findings: The research results show that an increase in information asymmetry increases the firms’ leverage deviation. Furthermore, results indicate that firms with a higher (lower) level of information asymmetry tend to adjust their actual leverage toward the target, slower (faster) than that of other firms. These results are robust to different sample periods, an alternative set of leverage determinants, and various estimation methods. \u0000Theoretical contributions/Originality: This is the first study that investigates the effect of information asymmetry on leverage deviation and leverage adjustment speed. The outcome of this study is useful for policy implication in the context of financing decisions. \u0000Keywords Information Asymmetry, Leverage Adjustment Speed, Leverage Deviation","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42132884","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 : 2020-06-26DOI: 10.22452/ajba.vol13no1.3
Dovi Septiari, Goedono Goedono
Manuscript type: Research paper Research aims: This research empirically examined the moderating role of warning messages on the relationship between framing effect and decision aid reliance in an audit context. We test whether warning messages moderates the relationship between framing and decision aid reliance. Design/ Methodology/ Approach: The research employed a 2 x 3 experimental design involving 65 undergraduate students and 13 Accounting Profession Program students as the sample. The dependent variable is decision aid reliance which measured by Gomaa, Hunton, Vaassen, & Carree (2011) scenario. Framing effect which is manipulated as follows: (1) positive framing, (2) negative framing, and Warning messages is manipulated as follows: (1) weak warning, (2) strong warning. Research findings: It is revealed that the warning messages reduced the framing effect of the decision aid in an audit context. One of the highlighted findings in this research is that in the audit task context, both the weak and strong warning messages were considered effective in declining the bias of framing effect of the decision aid in an audit context. These results suggest that the warning message can be used in decision aid reliance to assist auditors adjusting best decisions in an audit process. Theoretical contribution/ Originality: To the best of the knowledge, the previous study only examined the debiasing effect of framing in a business context, while this paper could be the first research which tests this debiasing technic in auditing task area. Practitioner/ Policy implication: Warning message can be used as ones of the best tools where make auditor produce best decisions as long as the audit process. Research limitation/ Implication: The study didn’t use a specific measure of overreliance. It affects on the overreliance can’t be differed with reliance. Keywords: Decision aid reliance, framing effect, warning message, audit task decision. JEL Classification: M42
{"title":"Impact of Warning Messages on the Reliance Level on Decision Aids under the Framing Effect","authors":"Dovi Septiari, Goedono Goedono","doi":"10.22452/ajba.vol13no1.3","DOIUrl":"https://doi.org/10.22452/ajba.vol13no1.3","url":null,"abstract":"Manuscript type: Research paper \u0000Research aims: This research empirically examined the moderating role of warning messages on the relationship between framing effect and decision aid reliance in an audit context. We test whether warning messages moderates the relationship between framing and decision aid reliance. \u0000Design/ Methodology/ Approach: The research employed a 2 x 3 experimental design involving 65 undergraduate students and 13 Accounting Profession Program students as the sample. The dependent variable is decision aid reliance which measured by Gomaa, Hunton, Vaassen, & Carree (2011) scenario. Framing effect which is manipulated as follows: (1) positive framing, (2) negative framing, and Warning messages is manipulated as follows: (1) weak warning, (2) strong warning. \u0000Research findings: It is revealed that the warning messages reduced the framing effect of the decision aid in an audit context. One of the highlighted findings in this research is that in the audit task context, both the weak and strong warning messages were considered effective in declining the bias of framing effect of the decision aid in an audit context. These results suggest that the warning message can be used in decision aid reliance to assist auditors adjusting best decisions in an audit process. \u0000Theoretical contribution/ Originality: To the best of the knowledge, the previous study only examined the debiasing effect of framing in a business context, while this paper could be the first research which tests this debiasing technic in auditing task area. \u0000Practitioner/ Policy implication: Warning message can be used as ones of the best tools where make auditor produce best decisions as long as the audit process. \u0000Research limitation/ Implication: The study didn’t use a specific measure of overreliance. It affects on the overreliance can’t be differed with reliance. \u0000Keywords: Decision aid reliance, framing effect, warning message, audit task decision. \u0000JEL Classification: M42","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48275061","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 : 2020-06-26DOI: 10.22452/ajba.vol13no1.9
H. Indriastuti, J. Kasuma, Saida Zainurrosalamia, D. Darma, Anusara Sawangchai
Manuscript type: Research paperResearch aims: This study aims to investigate the role of acculturativeproduct as an isolative mechanism for achieving the marketingperformance of small and medium enterprises (SMEs) in Indonesia.Specifically, it focusses on the Indonesian Sarong Samarinda industry.Design/Methodology/Approach: Data were collected from 207 individualentrepreneurs who are involved in Sarong Samarinda businessesin East Kalimantan, Indonesia. Structural equation modelling(SEM) using AMOS was utilised to analyse the data.Research findings: The results of this study show that the advantagesof the acculturative products influence the marketing performance.This study highlights the importance of innovativeness in securingthe potentials of the acculturative products for the SME industry inIndonesia. It is also observed that the acculturative product acts as themediator between innovativeness and marketing performance. Theoretical contribution/Originality: The empirical evidence ofthis study highlights the importance of acculturative products as anisolating mechanism which can help organisations to maintain andsustain their competitiveness.Practitioner/Policy implication: This study offers insights to entrepreneursand policy makers to better understand how the SarongSamarinda industry could be developed, which potentially wouldcontribute to the country’s economy.Research limitation/Implications: Since this study focusses onSamarinda city only, the generalisability of the findings may belimited. Therefore, future studies should incorporate a larger andmore diverse set of samples.
{"title":"Achieving Marketing Performance through Acculturative Product Advantages: The Case of Sarong Samarinda","authors":"H. Indriastuti, J. Kasuma, Saida Zainurrosalamia, D. Darma, Anusara Sawangchai","doi":"10.22452/ajba.vol13no1.9","DOIUrl":"https://doi.org/10.22452/ajba.vol13no1.9","url":null,"abstract":"Manuscript type: Research paperResearch aims: This study aims to investigate the role of acculturativeproduct as an isolative mechanism for achieving the marketingperformance of small and medium enterprises (SMEs) in Indonesia.Specifically, it focusses on the Indonesian Sarong Samarinda industry.Design/Methodology/Approach: Data were collected from 207 individualentrepreneurs who are involved in Sarong Samarinda businessesin East Kalimantan, Indonesia. Structural equation modelling(SEM) using AMOS was utilised to analyse the data.Research findings: The results of this study show that the advantagesof the acculturative products influence the marketing performance.This study highlights the importance of innovativeness in securingthe potentials of the acculturative products for the SME industry inIndonesia. It is also observed that the acculturative product acts as themediator between innovativeness and marketing performance. \u0000Theoretical contribution/Originality: The empirical evidence ofthis study highlights the importance of acculturative products as anisolating mechanism which can help organisations to maintain andsustain their competitiveness.Practitioner/Policy implication: This study offers insights to entrepreneursand policy makers to better understand how the SarongSamarinda industry could be developed, which potentially wouldcontribute to the country’s economy.Research limitation/Implications: Since this study focusses onSamarinda city only, the generalisability of the findings may belimited. Therefore, future studies should incorporate a larger andmore diverse set of samples.","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45823580","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 : 2020-06-26DOI: 10.22452/ajba.vol13no1.4
S. A. Alhadi, R. Senik, Jalila Johari, H. S. Nahar
This study investigates whether managerial and institutional ownership is associated with higher earnings quality (EQ) after the implementation of International Financial Reporting Standards (IFRS), compared to the pre-IFRS period. It also examines the moderating effect of investor protection (INPT) on the link between ownership structure and EQ. The study used a dynamic panel data modelling on the sample of 2090 firm-year observations from 2007–2016 in Malaysia. This study applies the Generalized Method of Moments (GMM) to deal with econometric problems. The results indicate that managerial ownership is essential in improving EQ before and after IFRS adoption, whereas no significant improvements were found for institutional shareholders. Similarly, the results provide evidence that managerial ownership is more efficient in monitoring earnings management in healthy INPT environment. The results highlight the significance of accounting standards and law enforcement for enhancing the monitoring role of ownership structure in improving EQ.
{"title":"Ownership Structure and Earnings Quality Pre- and Post-IFRS: Does Investor Protection Matter?","authors":"S. A. Alhadi, R. Senik, Jalila Johari, H. S. Nahar","doi":"10.22452/ajba.vol13no1.4","DOIUrl":"https://doi.org/10.22452/ajba.vol13no1.4","url":null,"abstract":"This study investigates whether managerial and institutional ownership is associated with higher earnings quality (EQ) after the implementation of International Financial Reporting Standards (IFRS), compared to the pre-IFRS period. It also examines the moderating effect of investor protection (INPT) on the link between ownership structure and EQ. The study used a dynamic panel data modelling on the sample of 2090 firm-year observations from 2007–2016 in Malaysia. This study applies the Generalized Method of Moments (GMM) to deal with econometric problems. The results indicate that managerial ownership is essential in improving EQ before and after IFRS adoption, whereas no significant improvements were found for institutional shareholders. Similarly, the results provide evidence that managerial ownership is more efficient in monitoring earnings management in healthy INPT environment. The results highlight the significance of accounting standards and law enforcement for enhancing the monitoring role of ownership structure in improving EQ.","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46246785","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 : 2020-06-26DOI: 10.22452/ajba.vol13no1.7
A. Albloush, G. Al-Utaibi, S. Taha, A. Nassoura, Alhareth Abuhussien
Manuscript type: Research paper Research aims: This study examines the effects of Wasta on job performance in Greater Amman Municipality (GAM), Jordan. It also evaluates the mediating effect of perceived training opportunities (PTO) between Wasta and job performance. Design/Methodology/Approach: A total number of 344 usable questionnaires were collected from employees working at GAM in 22 different regions in Jordan. Research findings: The results indicate that Wasta has a negative effect on job performance. The results also show that PTO partially mediates the relationship between Wasta and job performance. Theoretical contribution/Originality: The research findings enrich our understanding of the impact of Wasta practice on job performance in the public service of Jordan. The findings of this study expand on the existing literature on business relationships. Practitioner/Policy implication: The findings of this study provide insights into how managers at GAM can enhance the performance Taming Wasta through Training Opportunities in Jordan Ahmad Albloush*, Ghassan Al-Utaibi, Sadi Taha, Abdelrahim Nassoura and Alhareth Abuhussien * Corresponding author: Ahmad Albloush is an Assistant Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: ahmad.bloush@aldar. ac.ae Ghassan Al-Utaibi is a Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: vice-president@aldar.ac.ae Sadi Taha is an Assistant Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: sadi@aldar.ac.ae Abdelrahim Nassoura is an Assistant Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: nassoura@aldar.ac.ae Alhareth Abuhussien is an Associate Professor at the School of Business Administration, Amman Arab University, Jordan. Email: dr.hareth@aau.edu.jo https://doi.org/10.22452/ajba.vol13no1.7 Ahmad Albloush, Ghassan Al-Utaibi, Sadi Taha, Abdelrahim Nassoura, Alhareth Abuhussien 190 Asian Journal of Business and Accounting 13(1), 2020 of employees and gain citizens’ satisfaction. This can be done by reducing or eliminating Wasta and avoiding the use of Wasta when nominating employees for training programmes. Research limitation/Implications: The scope of this study is limited to only one governmental service organisation, specifically GAM, in Jordan.
手稿类型：研究论文研究目的：本研究考察了Wasta对约旦大安曼市（GAM）工作表现的影响。它还评估了感知培训机会（PTO）在Wasta和工作绩效之间的中介作用。设计/方法/方法：共从约旦22个不同地区的GAM员工那里收集了344份可用的问卷。研究结果表明：Wasta对工作绩效有负面影响。研究结果还表明，PTO在一定程度上介导了Wasta与工作绩效之间的关系。理论贡献/独创性：研究结果丰富了我们对Wasta实践对约旦公共服务工作绩效影响的理解。这项研究的发现扩展了现有的商业关系文献。从业者/政策含义：本研究的发现为GAM的管理者如何通过在约旦的培训机会提高驯服Wasta的绩效提供了见解。Ahmad Albloush*、Ghassan Al Utaibi、Sadi Taha、Abdelrahim Nassoura和Alhareth Abuhussien*通讯作者：Ahmad Alboush是工商管理学院的助理教授，阿拉伯联合酋长国阿尔达大学学院。电子邮件：ahmad.bloush@aldar.ac.ae Ghassan Al Utaibi是阿拉伯联合酋长国阿尔达大学学院工商管理学院的教授。电子邮件：vice-president@aldar.ac.aeSadi Taha是阿拉伯联合酋长国阿尔达大学学院工商管理学院的助理教授。电子邮件：sadi@aldar.ac.aeAbdelrahim Nassoura是阿拉伯联合酋长国阿尔达大学学院工商管理学院的助理教授。电子邮件：nassoura@aldar.ac.aeAlhareth Abuhussien是约旦安曼阿拉伯大学工商管理学院的副教授。电子邮件：dr.hareth@aau.edu.johttps://doi.org/10.22452/ajba.vol13no1.7Ahmad Albloush、Ghassan Al Utaibi、Sadi Taha、Abdelrahim Nassoura、Alhareth Abuhussien 190《亚洲商业与会计杂志》13（1），2020年员工和获得公民满意度。这可以通过减少或取消Wasta以及在提名员工参加培训计划时避免使用Wasta来实现。研究局限性/影响：本研究的范围仅限于约旦的一个政府服务组织，特别是GAM。
{"title":"Taming Wasta through Training Opportunities in Jordan","authors":"A. Albloush, G. Al-Utaibi, S. Taha, A. Nassoura, Alhareth Abuhussien","doi":"10.22452/ajba.vol13no1.7","DOIUrl":"https://doi.org/10.22452/ajba.vol13no1.7","url":null,"abstract":"Manuscript type: Research paper Research aims: This study examines the effects of Wasta on job performance in Greater Amman Municipality (GAM), Jordan. It also evaluates the mediating effect of perceived training opportunities (PTO) between Wasta and job performance. Design/Methodology/Approach: A total number of 344 usable questionnaires were collected from employees working at GAM in 22 different regions in Jordan. Research findings: The results indicate that Wasta has a negative effect on job performance. The results also show that PTO partially mediates the relationship between Wasta and job performance. Theoretical contribution/Originality: The research findings enrich our understanding of the impact of Wasta practice on job performance in the public service of Jordan. The findings of this study expand on the existing literature on business relationships. Practitioner/Policy implication: The findings of this study provide insights into how managers at GAM can enhance the performance Taming Wasta through Training Opportunities in Jordan Ahmad Albloush*, Ghassan Al-Utaibi, Sadi Taha, Abdelrahim Nassoura and Alhareth Abuhussien * Corresponding author: Ahmad Albloush is an Assistant Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: ahmad.bloush@aldar. ac.ae Ghassan Al-Utaibi is a Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: vice-president@aldar.ac.ae Sadi Taha is an Assistant Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: sadi@aldar.ac.ae Abdelrahim Nassoura is an Assistant Professor at the School of Business Administration, Aldar University College, United Arab Emirates. Email: nassoura@aldar.ac.ae Alhareth Abuhussien is an Associate Professor at the School of Business Administration, Amman Arab University, Jordan. Email: dr.hareth@aau.edu.jo https://doi.org/10.22452/ajba.vol13no1.7 Ahmad Albloush, Ghassan Al-Utaibi, Sadi Taha, Abdelrahim Nassoura, Alhareth Abuhussien 190 Asian Journal of Business and Accounting 13(1), 2020 of employees and gain citizens’ satisfaction. This can be done by reducing or eliminating Wasta and avoiding the use of Wasta when nominating employees for training programmes. Research limitation/Implications: The scope of this study is limited to only one governmental service organisation, specifically GAM, in Jordan.","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":"13 1","pages":"189-212"},"PeriodicalIF":0.9,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48378792","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 : 2020-06-26DOI: 10.22452/ajba.vol13no1.2
T. Pratoomsuwan, O. Yolrabil
Abstract Manuscript type: Research paper Research aims: This study examines the effects of key audit matter (KAM) disclosures in the auditor’s report on auditor legal exposure in cases of fraud and error misstatements. Design/Methodology/Approach: The experiment is conducted with the 133 professional auditors from Big 4 audit firms and 134 MBA students as the participants. Research findings: This KAM effect manifests in different ways for different groups. Specifically, auditor participants assess higher auditor liability when misstatement relates to error than when it is connected to fraud. KAM reduces assessed auditor liability only in cases of fraud but not of error. For nonprofessional investor participants, the auditor liability is rated higher in the case of fraud than for error misstatement. Unfortunately, KAM appears to have a nonsignificant impact on auditor liability. Together, the results support the view that instead of increasing legal exposure, as audit practitioners fear, KAM disclosures could actually mitigate and at least do not change auditors’ risk of legal exposure. Theoretical contribution/originality: This study contributes to accounting literature by adding the findings another aspect of KAM in different audit settings: fraud and error misstatements. Moreover, the conflicting evidence on how KAM affect auditor liability warrants further investigation of other audit settings that could alter the impact of KAM disclosures on the assessment of auditor liability. Practitioner/Policy implications: The findings of this study, especially, the nonsignificance of KAM disclosures as evaluated by nonprofessional investors should inform policymakers and related parties that investors need to be educated and better informed about the KAM disclosure and its objectives. Research limitations/Implications: The design of this study did not accommodate setting where the auditors had the opportunity to communicate with peers, which could affect their judgment. This is a general limitation of the experiment, which could be considered somewhat unrealistic because discussions are encouraged among committee members or in a courtroom when making judgments.
{"title":"The Role of Key Audit Matters in Assessing Auditor Liability: Evidence from Auditor and Non-auditor Evaluators","authors":"T. Pratoomsuwan, O. Yolrabil","doi":"10.22452/ajba.vol13no1.2","DOIUrl":"https://doi.org/10.22452/ajba.vol13no1.2","url":null,"abstract":"Abstract \u0000Manuscript type: Research paper \u0000Research aims: This study examines the effects of key audit matter (KAM) disclosures in the auditor’s report on auditor legal exposure in cases of fraud and error misstatements. Design/Methodology/Approach: The experiment is conducted with the 133 professional auditors from Big 4 audit firms and 134 MBA students as the participants. \u0000Research findings: This KAM effect manifests in different ways for different groups. Specifically, auditor participants assess higher auditor liability when misstatement relates to error than when it is connected to fraud. KAM reduces assessed auditor liability only in cases of fraud but not of error. For nonprofessional investor participants, the auditor liability is rated higher in the case of fraud than for error misstatement. Unfortunately, KAM appears to have a nonsignificant impact on auditor liability. Together, the results support the view that instead of increasing legal exposure, as audit practitioners fear, KAM disclosures could actually mitigate and at least do not change auditors’ risk of legal exposure. \u0000Theoretical contribution/originality: This study contributes to accounting literature by adding the findings another aspect of KAM in different audit settings: fraud and error misstatements. Moreover, the conflicting evidence on how KAM affect auditor liability warrants further investigation of other audit settings that could alter the impact of KAM disclosures on the assessment of auditor liability. \u0000Practitioner/Policy implications: The findings of this study, especially, the nonsignificance of KAM disclosures as evaluated by nonprofessional investors should inform policymakers and related parties that investors need to be educated and better informed about the KAM disclosure and its objectives. \u0000Research limitations/Implications: The design of this study did not accommodate setting where the auditors had the opportunity to communicate with peers, which could affect their judgment. This is a general limitation of the experiment, which could be considered somewhat unrealistic because discussions are encouraged among committee members or in a courtroom when making judgments.","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":"13 1","pages":"35-64"},"PeriodicalIF":0.9,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44287749","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 : 2020-06-26DOI: 10.22452/ajba.vol13no1.5
Abdalmuttaleb Al-Sartawi
Manuscript Type: Research PaperResearch Aims: This study aims to shed light on the relationship between Shariah disclosure and the performance (social performance and firm value) of listed Islamic financial institutions in the Gulf Cooperation Council (GCC) countries.Design/Methodology/Approach: A checklist based on Islamic standard setters that was based on previous disclosure studies is developed to gauge the level of Shariah disclosures. Data are gathered from the annual reports of the Islamic Financial Institutions (IFIs) in the GCC for the year ending 2017.Research Findings: The findings show a negative and significant relationship between Shariah disclosure and social performance; they also show a positive and insignificant relationship with Tobin’s Q. This outcome could be attributed to the corporate social responsibility (CSR) activities which create financial burdens for the IFIs. With high levels of disclosure, there is a trade-off between the two.Theoretical Contributions/Originality: This paper contributes to literature by developing a new disclosure index based on the Shariah perspective in relation to CSR engagement of the IFIs. The findings are noteworthy to the IFIs since CSR practices need to be entrenched into the working practices. They are also expected to generate positive contributions to the social good of the Islamic society, thereby fulfilling justice and equality in lieu of the Islamic concepts.Practitioner/ Policy Implications: From a more practical perspective, this study is useful to regulators and policy makers who wish to incorporate CSR into their Shariah-compliant policies. Based on the findings, it is vital that CSR standards be implemented as a mandatory policy for the IFIs. Doing so would enhance their social performance, thus enhancing a higher level of Shariah disclosures.Research Limitations: The findings are limited to the context of Shariah disclosure and the GCC listed firms. The sources of data used for this study are also confined to the annual reports and the websites of the IFIs. In this regard, the outcome may not be applicable to all markets.Keywords: GCC Countries, Islamic Financial Institutions, Shariah Disclosure, Shariah Governance, Shariah Supervisory Board, Social Performance,JEL Classification: G280, G380, M140, Z120.
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Pub Date : 2020-06-11DOI: 10.22452/ajba.vol13no1.6
Zubir Azhar
Manuscript type: Research paper Research aims: This study aims to examine the institutionalisation of high performance culture (HPC) in a Malaysian government-linked company’s subsidiary that recently undertook a re-engineering exercise to improve financial performance. Specifically, it analyses the institutionalisation of HPC by relating to the role of performance measures in influencing the process of change. Design/Methodology/Approach: The process of institutionalising the HPC in the studied subsidiary is analysed using a qualitative research approach. This study presents an interpretive case study by drawing on institutional theory which focuses on the issue of legitimacy with a special reference being made to the hierarchical complexity of the subsidiary’s business model in managing airport operations. Research findings:The re-engineering exercise undertaken by the subsidiary, which aimed at promoting HPC that concerned financial performance improvement, appeared to have legitimised institutional relationships with various stakeholders. While this promotion appeared to correspond well with its commercial and technical objectives that drove its business financially, there seemed to be much discourse which related to its past role in rendering public services. Theoretical contributions/Originality: This study contributes to understanding the legitimacy at the hierarchical-organisational level. It highlights the importance of sustaining the legitimacy from being challenged by any single source of pressure which appeared to have been competing with (an)other pressure(s). Practitioner/Policy implication: Although HPC had shifted the orientation of the subsidiary from being largely concerned with technical operations to also considering commercial activities, the shift towards emphasising the importance of financial performance (measures) had not fully eliminated the public sector’s path dependence. Thus, there is a need for business managers (including accountants) to appreciate business complexity in making informed decisions by leveraging on appropriate performance measuresthat would consequently impact organisational performance. Research limitation/Implication: This study has analysed a single organisation’s subsidiary. Hence, any generalisation to other subsidiaries is deemed inappropriate.
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Pub Date : 2019-12-27DOI: 10.22452/ajba.vol12no2.4
Nishant B. Labhane
Manuscript type: Research paper Research aims: The present study examines whether the catering incentives of dividends can influence firms’ dividend payment decision for 781 sample firms listed on the National Stock Exchange (NSE) of India during the period of 1995-2015. Design/Methodology/Approach: This study uses dividend premiums to measure the catering incentives of the dividends. The firms’ dividend payment decision is measured by the propensity to pay dividends, and the decision to change dividend payments. Research findings: The empirical results indicate that the catering incentives of dividends have a significant positive impact on the changes in the propensity to pay dividends. The findings suggest that the higher dividend premiums indicating the investors’ higher demand for dividends can induce managers to increase the amount of dividends paid. Firm managers are less likely to cut or omit dividends when the investors’ demand for dividends is high as reflected by the higher dividend premiums. Theoretical contribution/Originality: The catering theory of dividend which is based on investor sentiment is new, and the empirical evidence supporting this theory is limited. This study aims to contribute to existing literature by examining whether the catering incentives of dividends can influence firms’ dividend payment decision, in the context of India, during the period of liberalisation. Practitioner/Policy implication: This study has an implication for the management team. The investors in the Indian capital market show a preference for dividend payment. Firm managers could use these catering incentives for deciding dividend payments to investors. Research limitation/Implications: As the study has not used the primary survey approach to collect data, it could not examine the corporate managers’ and the investors’ views about the determinants of the dividend policy. New insights could thus be provided by analysing the behaviour of other forms of dividends like bonus shares, stock splits and the share buybacks. Keywords: Catering Incentives, Dividends, Dividend Policy, Dividend Premium, Propensity to Pay JEL Classification: G30, G35
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