Asian Review of Accounting最新文献

{"title":"Global assessment of the COVID-19 impact on IFRS 9 loan loss provisions","authors":"B. Engelmann, Thi Thanh Lam Nguyen","doi":"10.1108/ara-04-2022-0105","DOIUrl":"https://doi.org/10.1108/ara-04-2022-0105","url":null,"abstract":"PurposeThis article aims to analyze the impact of COVID-19 measures by governments and central banks on International Financial Reporting Standards (IFRS) 9 loan loss provisions (LLPs). Changes in the total amount of LLPs, distribution of outstanding loan balance among IFRS 9 stages and credit risk parameters used for calculation are investigated for each world region where banks report under IFRS.Design/methodology/approachData for a global selection of 105 banks reporting under IFRS were collected from 2019 to 2020 annual reports, financial statements, and Pillar III reports. These data provide the basis to empirically analyze the impact of COVID-19 on LLPs.FindingsIn most world regions Stage 2 balances increase while Stage 3 balances remain comparatively stable. The credit risk parameters used for computing LLPs remained stable in 2020. However, in China, the impact of COVID-19 on banks was not detected. Mean Stage 1 balances for Chinese banks increased slightly during the pandemic. Aside from the COVID-19 impact, we find that LLPs, credit risk parameters, and loss absorption capacities are significantly lower for banks in Canada, Oceania and Western Europe compared to those in the rest of the world.Originality/valueThere exists previous research examining the COVID-19 impact on financial stability, implementation of emergency rules and country-wide analyses to anticipate default rates depending on recovery scenarios. However, this is the first global study on the immediate impact of COVID-19 on LLPs. It reveals the significant differences between world regions and provides implications about their resilience against future credit shocks.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42639416","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}

{"title":"Ex-auditor executives and investment efficiency: evidence from Indonesia","authors":"Agnes Aurora Ngelo, I. Harymawan, M. Nasih","doi":"10.1108/ara-01-2022-0015","DOIUrl":"https://doi.org/10.1108/ara-01-2022-0015","url":null,"abstract":"PurposeThis study aims to examine the relationship between the presence of ex-auditor chief executive officers (CEOs) and ex-auditor chief financial officers (CFOs) with the company's investment efficiency decisions.Design/methodology/approachThe authors use non-financial Indonesian listed firms, and the authors obtain 2,763 firm-year observations of ex-auditor CEOs and 2,708 firm-year observations of ex-auditor CFOs from 2010–2019.FindingsThe results show that ex-auditor CEOs tend to make efficient investment decisions, while ex-auditor CFOs do not. However, when a company has a CEO and a CFO who are both former auditors, there is a significantly stronger positive relationship with investment efficiency. These results indicate that working experience as an auditor can optimally facilitate the decision regarding investment level. Moreover, the results suggest that the CEO, as top management, has more influence in providing the company's final investment decisions, whereas the CFO plays a role in providing investment recommendations to the CEO. The results of this study are consistent with the use of alternative measurements and the robustness test of Coarsened Exact Matching (CEM).Practical implicationsThe results of this study can contribute as material for consideration by company management in selecting company organs with an auditor background to secure efficient investment.Originality/valueThis study specifically examines the experience, values, and particular characteristics of top management with an auditor background on the company's strategic decisions. This study is also based on the phenomenon that the number of ex-auditor CEOs and CFOs in Indonesia tends to increase every year.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46370293","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}

{"title":"Principles-based versus rules-based: accounting standards precision and financial restatements in China","authors":"Shungen Luo, Fei Song","doi":"10.1108/ara-09-2021-0177","DOIUrl":"https://doi.org/10.1108/ara-09-2021-0177","url":null,"abstract":"PurposeThis study tests the effect of accounting standards precision on financial restatements and the influence of accounting standards precision on different types of restatements (including errors and irregularities). What is more, the heterogeneity between accounting standards precision and financial restatements is verified in this paper. In the further analyses, the authors also examine the mediating roles and moderating roles on the correlation between accounting standards precision and financial restatements.Design/methodology/approachThe focus is placed on an unbalanced panel of 18,766 samples over the period of 2007–2017.FindingsThe authors find that firms' restatements decrease when standards are more principles-based (low accounting standards precision). Especially, irregularities significantly decrease when firms' standards are more principles-based. What's more, the negative relationship between principles-based standards and restatements is more significant in “big four” accounting firms. Moreover, from the mediating effect results, the authors find that low accounting standards precision decreases a firm's financial reporting complexity and increases equity restriction, which in turn can help decreasing its financial misreporting. From the moderating effect results, the authors find that the higher the TOP1 and the more analysts following the firm, the higher the benefit of accounting standards precision to misstatements.Originality/valueThe results of this study provide a theoretical reference for accounting standard setters and are helpful to inform investors and regulators about the influence of Chinese accounting standards on restatements.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41324599","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}

{"title":"Perceived internationalization of accounting education: the case of Vietnam","authors":"T. Nguyen, D. Phan, Greeni Maheshwari","doi":"10.1108/ara-04-2022-0108","DOIUrl":"https://doi.org/10.1108/ara-04-2022-0108","url":null,"abstract":"PurposeThe authors explore the state of internationalization of accounting education as perceived by accounting academics, accounting employers, and accounting students in Vietnam. Based on data collected, authors draw recommendations to better facilitate internationalization of accounting education in Vietnam.Design/methodology/approachWith a qualitative approach, the authors use content analysis (materials from 27 universities) and semi-structured interviews (28 participants) to explore the state of internationalization of accounting education as perceived by academics, employers, and students in Vietnam.FindingsThe authors identify the extent of and challenges in internationalization of accounting education in Vietnam, including language barrier, teaching approach, and budgetary constraints. Practical recommendations are drawn to help overcome challenges and facilitate progress.Originality/valueThe study integrates two fields of research: accounting and education, particularly through addressing in-depth perspectives of a broad range of stakeholders in addition to a detailed examination of archival contents. Practical recommendations are proposed for short term, medium term, and long term.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41560778","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}

{"title":"Ownership concentration and accounting information consistency—evidence from Chinese listed companies","authors":"Shaojun Fan, Juan Chen, H. Han","doi":"10.1108/ara-01-2022-0012","DOIUrl":"https://doi.org/10.1108/ara-01-2022-0012","url":null,"abstract":"PurposeThe authors expand the connotation of the research on the accounting information quality characteristics, provide empirical evidence for the factors of consistency and also help to deepen further their understanding of the economic consequences of ownership concentration and other ownership structures.Design/methodology/approachUsing financial data of Chinese listed companies as samples, coupled with a method to calculate the consistency of the sample enterprises on the corporate level in the 2007–2019 period, the authors studied its impact of ownership concentration on consistency.FindingsThe study finds that after controlling other factors, ownership concentration could significantly reduce accounting information consistency. Further research finds that when the executives' shareholding is higher, the reduction effect of ownership concentration on consistency is weaker. After the robustness test, the conclusion remains basically unchanged.Research limitations/implicationsFirst, maybe there is a limitation of De Franco et al. (2011) method the authors use in China. As some scholars pointed out, the systematic component of returns variation is large in emerging markets (Morck et al., 2000), so it is hard to determine to what extent market stock returns will capture the net effect of earnings. As is mentioned above, there are multiple methods for measuring comparability and consistency, but it is not easy to judge which way is the best. Maybe the authors will have a perfect process in the future. Second, in addition to the factors mentioned in this study's hypotheses, there should be other factors (these include internal factors and external factors) that play moderating role in the impact of ownership concentration on accounting information consistency. The authors have not thoroughly studied the effect of those factors. These limitations all need to be further explored in the future.Originality/valueThe study finds that after controlling other factors, ownership concentration could significantly reduce accounting information consistency, but the reduction will be affected by some other factors related to corporate governance. The new insights from these advances are that the conclusions provide a technical path for management of companies to improve corporate governance efficiency and the quality of accounting information, and also provide more reference and empirical evidence for information users to identify the company's accounting information quality, which contributes to creating a prerequisite for the usefulness of accounting information.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47186970","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}

{"title":"Impact of MD&A sentiment on corporate investment in developing economies: Chinese evidence","authors":"E. Fedorova, P. Drogovoz, A. Nevredinov, Polina Kazinina, Cai Qitan","doi":"10.1108/ara-08-2021-0151","DOIUrl":"https://doi.org/10.1108/ara-08-2021-0151","url":null,"abstract":"PurposeThe goal of the study is to examine the effects of management discussion and analysis (MD&A) sentiment in public companies' annual reports on corporate investment incentives in developing economies.Design/methodology/approachThe authors use sentiment analysis of MD&A texts based on Loughran and McDonald (2011) and combination of panel data regression, logit model and random forest. The text data consists of 3,511 annual reports of Chinese listed companies for the period from 2010 to 2019.FindingsThis paper provides empirical evidence of signaling theory that sentiment of annual reports and MD&A influences corporate decisions on both M&A and internal investments. The authors found that comparing to annual reports MD&A sentiment has more stable and significant explanatory and predictive power.Practical implicationsThis paper confirms the importance of MD&A sentiment for corporate investment decision taking and provides practical techniques for analysts and researchers to study corporate investment incentives from the point of view of signaling theory.Originality/valueThe study aims to expand the domains of signaling theory and corporate investment valuation by including a broader range of data on companies' M&A and internal investments in developing economies. To explore the impact of MD&A sentiment on corporate investment, a state-of-the-art set of text mining and machine learning techniques is used. The authors' results confirm that MD&A has signaling effect and can get a positive market response. Furthermore, this study enhances the empirical evidence of overconfidence theory, i.e. optimistic management whose MD&A tend to positive overestimates the management's investments decision and also underestimate the potential risk to the firm.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44754051","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}

{"title":"Joint board management meetings and earnings management","authors":"Dian Agustia, I. Harymawan, M. Nasih, J. Nowland","doi":"10.1108/ara-09-2021-0165","DOIUrl":"https://doi.org/10.1108/ara-09-2021-0165","url":null,"abstract":"PurposeJoint board management meetings bring boards of directors and top management teams together to share information and discuss company matters. The authors investigate whether these joint meetings are associated with higher agency costs or information sharing benefits in the context of firm earnings management.Design/methodology/approachUsing publicly disclosed data on the frequency of joint board management meetings in Indonesian firms, the authors examine the relationship between joint board management meetings and earnings management during 2010–2017.FindingsThe authors find that more joint board management meetings are associated with lower earnings management. This is consistent with joint board management meetings providing net information sharing benefits. Additional testing indicates that the results are the strongest when firms hold more joint board management meetings than regular board meetings.Originality/valueThe findings suggest that in addition to holding regular board and audit committee meetings, formal meetings between boards of directors and top management teams are beneficial to shareholders by restricting opportunistic accounting choices by firm management.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43897630","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}

{"title":"The association between public pension fund characteristics and pension accounting choices","authors":"Guoquan Xu, Fang-Chun Liu, Hsiao-Tang Hsu, Jerry W. Lin","doi":"10.1108/ara-10-2021-0195","DOIUrl":"https://doi.org/10.1108/ara-10-2021-0195","url":null,"abstract":"PurposeThe choice of accounting methods is critical in measuring the performance and sustainability of a public defined benefit pension (DBP) plan, and such measurement has an impact on the effectiveness of the entire pension system. Prior literature rarely discusses the choice and rationale of the accounting assumptions for public DBP plans. This study fills the gap by investigating whether crucial plan characteristics, including operational performance, financial health, sponsor fiscal stress, and audit quality, are associated with the accounting assumptions of public DBP plans.Design/methodology/approachThe sample includes 1,170 plan-years from the intersection of the Center for Retirement Research and public DBPs' annual financial reports for the years 2001–2013. This study develops regression models to examine the relationship between the characteristics of public DBP practices and DBP accounting choices.FindingsThe empirical results show that the public DBPs that have better investment performance, higher funding status, less fiscal stress, and that are audited by Big 4 accounting firms are more likely to adopt conservative accounting choices.Originality/valueThe study documents the impact of crucial pension plan characteristics on public DBP managers' accounting choices, which were not extensively discussed in pension literature. The findings help us understand the rationale for employing different accounting treatments in the context of public pension fund practices. In addition, the study sheds light on policy implications for the future reform of public pension regulations.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49027879","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}

{"title":"Do industry specialist auditors enhance accounting quality in the EU? Evidence from the pre-IFRS and mandatory post-IFRS periods","authors":"D. M. Lopez, Michael A. Schuldt, J. G. Vega","doi":"10.1108/ara-04-2022-0077","DOIUrl":"https://doi.org/10.1108/ara-04-2022-0077","url":null,"abstract":"PurposeThe purpose of this study is to examine the association between auditor industry specialization and accounting quality in the European Union (EU).Design/methodology/approachThis study employs a difference-in-differences design and explores audit quality from different industry specialist perspectives and different accounting standard regimes. Specifically, this study examines accounting quality among audits performed by non-industry specialists, EU member country-level industry specialists (EUM-level), EU community-level industry specialists (EUC-level), as well as joint industry specialists.FindingsThis study finds evidence of an improvement in accounting quality among audits performed by non-industry specialists post-IFRS. There is also evidence of an improvement in accounting quality among audits performed by EUC-level industry specialists post-IFRS. In addition, accounting quality among audits performed by EUM-level industry specialists seems to be greater than that of audits performed by non-industry specialists in either the pre-IFRS period or the post-IFRS period. Overall, the mandatory adoption of IFRS in the EU appears to be associated with an improvement in accounting quality among some auditor groups.Research limitations/implicationsIndustry specialization and accounting quality are not directly observable constructs; this study inevitably employs proxy measures for both. The findings of this study are location-specific and apply to mandatory IFRS adopters only.Practical implicationsThis study informs regulators with respect to the importance of industry specialist auditors and financial reporting quality, particularly within the context of the EU. The findings suggest that industry specialists were a significant accounting quality determinant during the mandatory adoption of IFRS. The findings have implications for regulators in the EU and beyond.Originality/valueThis study is among the first to investigate the impact of auditor specialization on accounting quality in the EU, particularly in connection with the adoption of IFRS.","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":" ","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44557363","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}

{"title":"Impact of banking relationships and ownership concentration on corporate cash holdings in India","authors":"Vedika Saxena, Seshadev Sahoo","doi":"10.1108/ara-01-2022-0014","DOIUrl":"https://doi.org/10.1108/ara-01-2022-0014","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate the impact of banking relationships and ownership concentration on corporate cash holdings (CCH) in 333 Indian micro, small and medium-sized enterprises (MSMEs) for nine years (2011–2020).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors use system generalized method of moments approach to examine the impact of banking relationships and ownership concentration on CCH.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The paper finds that the firm's number of banking relationships share a concave (inverted U-shaped) relationship with the cash holding levels. Initially, the positive relationship may signal weak creditworthiness of MSMEs or be a consequence of bank free-rider monitoring issues. The negative effect after a certain level shows that the competition among banks reduces the firm's financial constraints and therefore makes the firms hoard less cash. The authors also document an inverse relationship between ownership concentration and cash holdings. The authors' results suggest that the presence of large shareholders acts as efficient monitors, reducing the risk of potential agency conflicts and thereby managerial entrenchment resulting in lower cash levels. This association remains unchanged for MSMEs in the service sector. However, the quadratic association between banking relationships and CCH vanishes in the presence of a service sector dummy in the regression model. The authors find a significant positive linear relationship in this regard.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors' knowledge, this is the first paper that studies banking relationships and ownership concentration as determinants of Indian MSMEs.</p><!--/ Abstract__block -->","PeriodicalId":8562,"journal":{"name":"Asian Review of Accounting","volume":"159 1","pages":""},"PeriodicalIF":2.0,"publicationDate":"2022-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140200590","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}