International Journal of Accounting & Information Management
- Publisher:
- Emerald Group Publishing Limited
- Publication date:
- 2021-02-01
- ISBN:
- 1834-7649
Issue Number
- No. 30-3, April 2022
- No. 30-2, March 2022
- No. 30-1, January 2022
- No. 29-5, November 2021
- No. 29-4, October 2021
- No. 29-3, July 2021
- No. 29-2, January 2021
- No. 29-1, September 2020
- No. 28-4, August 2020
- No. 28-3, March 2020
- No. 28-2, March 2020
- No. 28-1, January 2020
- No. 27-4, October 2019
- No. 27-3, August 2019
- No. 27-2, May 2019
- No. 27-1, March 2019
- No. 26-4, October 2018
- No. 26-3, August 2018
- No. 26-2, May 2018
- No. 26-1, March 2018
Latest documents
- Dividend payment and financial restatement: US evidence
Purpose: The purpose of this paper is to investigate the impact of financial restatement on corporate dividend payment. Firms that announce financial restatements rupture their corporate reputation and adversely affect investors’ confidence. Consequently, firms must attempt to regain lost reputation and market confidence. Design/methodology/approach: This study uses the US regulatory setting to examine the association between corporate dividend policy and financial restatement over the 2001–2017 financial years. Findings: The findings evidence a robust positive association between financial restatement and dividend payouts, indicating that firms pay higher dividends following the year of financial restatement. Several sensitivity tests were conducted to confirm the robustness of the findings. Originality/value: Prior research indicates that corporate dividend payouts enhance a firm’s reputation by reducing information asymmetry and providing a positive signal to investors regarding future financial performance. This study provides valuable evidence that dividend payout can be used as a channel for image restoration by firms with lost reputations because of financial restatement.
- Dividend payment and financial restatement: US evidence
Purpose: The purpose of this paper is to investigate the impact of financial restatement on corporate dividend payment. Firms that announce financial restatements rupture their corporate reputation and adversely affect investors’ confidence. Consequently, firms must attempt to regain lost reputation and market confidence. Design/methodology/approach: This study uses the US regulatory setting to examine the association between corporate dividend policy and financial restatement over the 2001–2017 financial years. Findings: The findings evidence a robust positive association between financial restatement and dividend payouts, indicating that firms pay higher dividends following the year of financial restatement. Several sensitivity tests were conducted to confirm the robustness of the findings. Originality/value: Prior research indicates that corporate dividend payouts enhance a firm’s reputation by reducing information asymmetry and providing a positive signal to investors regarding future financial performance. This study provides valuable evidence that dividend payout can be used as a channel for image restoration by firms with lost reputations because of financial restatement.
- The impact of audit characteristics, audit fees on classification shifting: evidence from Germany
Purpose: This paper aims to examine the relationship between audit characteristics (ACs) and audit fees on classification shifting (CS) among German-listed non-financial firms. Design/methodology/approach: Using a sample of 130 German-listed (Deutscher Aktienindex, Mid Cap dax and Small caps Index) firms from 2010 until 2019, this study investigated the impact of audit committee size, audit committee meetings, audit committee financial expertise and audit fees on CS. Findings: This study found the evidence of CS, meaning that managers misclassify recurring expenses in the income statement into non-recurring expenses to inflate core earnings. This study also found that the audit fee ratio, audit committee financial expertise and frequency of audit meetings are negatively associated with CS among German-listed firms. However, the audit committee size does not influence CS. Research limitations/implications: This study will help the board improve its internal auditing practices and provide essential information to investors to assess how ACs affect the quality of financial reporting. Originality/value: This study focused on a bank-oriented economy, i.e. Germany, with lower investor protection and low transparency. This paper documents new evidence on how ACs and audit fees impact CS among German firms, as most of the previous studies on CS mainly focused on market-oriented economies such as the UK and the USA.
- The impact of audit characteristics, audit fees on classification shifting: evidence from Germany
Purpose: This paper aims to examine the relationship between audit characteristics (ACs) and audit fees on classification shifting (CS) among German-listed non-financial firms. Design/methodology/approach: Using a sample of 130 German-listed (Deutscher Aktienindex, Mid Cap dax and Small caps Index) firms from 2010 until 2019, this study investigated the impact of audit committee size, audit committee meetings, audit committee financial expertise and audit fees on CS. Findings: This study found the evidence of CS, meaning that managers misclassify recurring expenses in the income statement into non-recurring expenses to inflate core earnings. This study also found that the audit fee ratio, audit committee financial expertise and frequency of audit meetings are negatively associated with CS among German-listed firms. However, the audit committee size does not influence CS. Research limitations/implications: This study will help the board improve its internal auditing practices and provide essential information to investors to assess how ACs affect the quality of financial reporting. Originality/value: This study focused on a bank-oriented economy, i.e. Germany, with lower investor protection and low transparency. This paper documents new evidence on how ACs and audit fees impact CS among German firms, as most of the previous studies on CS mainly focused on market-oriented economies such as the UK and the USA.
- Determinants of wine firms’ performance: the Iberian case using panel data
Purpose: In the macroeconomic environment of the Iberian Peninsula, this paper aims to understand which factors, intrinsic to management, affect the performance of wine companies. Design/methodology/approach: The sample comprises 3,113 wine Iberian companies between 2011 and 2018. This study has used the panel data methodology, specifically the generalized method of moments system estimation method of Arellano and Bond (1991); Arellano and Bover (1995); and Blundell and Bond (1998) to test the hypotheses proposed. Findings: Using return on assets (ROA) and sales growth as measures of corporate performance, this study’s results suggest that sales growth is the variable that has the most significant determining factors, both specific to the company and given the macroeconomic environment. Investors and civil society well understand the meaning of sales growth, namely, in a sector close to the final consumer. When using ROA as a dependent variable, the results suggest that because it is a pure management variable, the manager tends to be more concerned with maintaining adequate levels of economic profitability to ensure sustainability and future solvency, without giving prominence to the macroeconomic environment. Originality/value: To the best of the authors’ knowledge, this is the first time that a study has been carried out in the Iberian Peninsula on the wine industry using ROA and sales growth as measures of corporate performance. This study shows that sales growth is a measure traditionally known to external stakeholders, and to that extent, its determining factors are the variables that these players most value in the market.
- Determinants of wine firms’ performance: the Iberian case using panel data
Purpose: In the macroeconomic environment of the Iberian Peninsula, this paper aims to understand which factors, intrinsic to management, affect the performance of wine companies. Design/methodology/approach: The sample comprises 3,113 wine Iberian companies between 2011 and 2018. This study has used the panel data methodology, specifically the generalized method of moments system estimation method of Arellano and Bond (1991); Arellano and Bover (1995); and Blundell and Bond (1998) to test the hypotheses proposed. Findings: Using return on assets (ROA) and sales growth as measures of corporate performance, this study’s results suggest that sales growth is the variable that has the most significant determining factors, both specific to the company and given the macroeconomic environment. Investors and civil society well understand the meaning of sales growth, namely, in a sector close to the final consumer. When using ROA as a dependent variable, the results suggest that because it is a pure management variable, the manager tends to be more concerned with maintaining adequate levels of economic profitability to ensure sustainability and future solvency, without giving prominence to the macroeconomic environment. Originality/value: To the best of the authors’ knowledge, this is the first time that a study has been carried out in the Iberian Peninsula on the wine industry using ROA and sales growth as measures of corporate performance. This study shows that sales growth is a measure traditionally known to external stakeholders, and to that extent, its determining factors are the variables that these players most value in the market.
- On the likelihood and type of merger and acquisition in the US listed companies: the role of females on the board
Purpose: This paper aims to examine whether and how females on the board of directors affect US-listed companies’ merger and acquisition (M&A) decisions. Specifically, the paper concerns the impact of females in the boardroom on the likelihood and type of M&A deals (i.e. foreign vs domestic acquisitions and listed vs unlisted acquisitions). Design/methodology/approach: Archival data of M&A deals using a sample of 17,899 firm-year observations of the US public companies from 2012 to 2018 are collected and examined using probit and logit models. Findings: This paper offers three main results supporting the propositions of the behavioral consistency theory. First, female directors are negatively associated with the likelihood of making the acquisition. Second, female directors are positively associated with acquiring domestic rather than foreign targets. Third, female directors are positively associated with acquiring listed rather than unlisted targets. Research limitations/implications: The findings provide additional evidence-based insights into the debate about diversity on boards with the aim of informing policy and offering practical recommendations for the effective implementation of gender diversity on the boards of companies. Originality/value: Overall, consistent with the premise of behavioral theory, the results expand the literature on gender diversity by augmenting the argument that females’ behavior in corporate policies is viewed as opposition to change and a tendency toward risk aversion and thus, influences companies’ strategic investment decisions, such as M&A.
- On the likelihood and type of merger and acquisition in the US listed companies: the role of females on the board
Purpose: This paper aims to examine whether and how females on the board of directors affect US-listed companies’ merger and acquisition (M&A) decisions. Specifically, the paper concerns the impact of females in the boardroom on the likelihood and type of M&A deals (i.e. foreign vs domestic acquisitions and listed vs unlisted acquisitions). Design/methodology/approach: Archival data of M&A deals using a sample of 17,899 firm-year observations of the US public companies from 2012 to 2018 are collected and examined using probit and logit models. Findings: This paper offers three main results supporting the propositions of the behavioral consistency theory. First, female directors are negatively associated with the likelihood of making the acquisition. Second, female directors are positively associated with acquiring domestic rather than foreign targets. Third, female directors are positively associated with acquiring listed rather than unlisted targets. Research limitations/implications: The findings provide additional evidence-based insights into the debate about diversity on boards with the aim of informing policy and offering practical recommendations for the effective implementation of gender diversity on the boards of companies. Originality/value: Overall, consistent with the premise of behavioral theory, the results expand the literature on gender diversity by augmenting the argument that females’ behavior in corporate policies is viewed as opposition to change and a tendency toward risk aversion and thus, influences companies’ strategic investment decisions, such as M&A.
- Determinants of eXtensible business reporting language adoption: an institutional perspective
Purpose: This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level. Design/methodology/approach: The authors use a large sample of 175 developed and developing countries over 14 years. Data is obtained from different sources including, World Development Indicators, the Reports on the Observance of Standards and Codes (ROSC) website and the Quality of Government database. Findings: The results highlight the significance of coercive, mimetic and normative pressures in terms of ROSC reports, the extent of accounting globalisation and education. However, in further analyses, the authors found that coercive pressure is pronounced in developing countries. Nevertheless, mimetic pressure is an important, influential factor for all countries regardless of their status as developed or developing. Originality/value: This study responds to the lack of research on the country-level factors of countries’ adoption of XBRL. The present study contributes to the literature by providing additional evidence on the country-level factors influencing XBRL adoption. Using the institutional theory, the authors provide a better understanding of the global diffusion of XBRL, which has attracted little attention. The study also complements prior literature on the adoption of international accounting and financial reporting practices.
- Determinants of eXtensible business reporting language adoption: an institutional perspective
Purpose: This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level. Design/methodology/approach: The authors use a large sample of 175 developed and developing countries over 14 years. Data is obtained from different sources including, World Development Indicators, the Reports on the Observance of Standards and Codes (ROSC) website and the Quality of Government database. Findings: The results highlight the significance of coercive, mimetic and normative pressures in terms of ROSC reports, the extent of accounting globalisation and education. However, in further analyses, the authors found that coercive pressure is pronounced in developing countries. Nevertheless, mimetic pressure is an important, influential factor for all countries regardless of their status as developed or developing. Originality/value: This study responds to the lack of research on the country-level factors of countries’ adoption of XBRL. The present study contributes to the literature by providing additional evidence on the country-level factors influencing XBRL adoption. Using the institutional theory, the authors provide a better understanding of the global diffusion of XBRL, which has attracted little attention. The study also complements prior literature on the adoption of international accounting and financial reporting practices.
Featured documents
- CSR Disclosure, Corporate Governance and Firm Value: a study on GCC Islamic Banks
Purpose: This study aims to explore the corporate social responsibility disclosure (CSRD) practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the period 2010-2014 and examines the determinants of CSRD and its effects on firm value. Design/methodology/approach:...
- Application of stochastic linear programming in managerial accounting. Scenario analysis approach
Purpose: This paper aims to focus on applications of stochastic linear programming (SLP) to managerial accounting issues by providing a theoretical foundation and practical examples. SLP models may have more implications – and broader ones – in industry practice than deterministic linear...
- Pragmatic adaptation of the ISO 31000:2009 enterprise risk management framework in a high-tech organization using Six Sigma
Purpose: – This case study aims to present a viable solution to how organizations can adapt and customize the ISO 31000:2009 enterprise risk management framework to suits its needs and requirements. Design/methodology/approach: – Approach used for this case study is via adopting Six Sigma DMAIC (De...
- The impact of audit characteristics, audit fees on classification shifting: evidence from Germany
Purpose: This paper aims to examine the relationship between audit characteristics (ACs) and audit fees on classification shifting (CS) among German-listed non-financial firms. Design/methodology/approach: Using a sample of 130 German-listed (Deutscher Aktienindex, Mid Cap dax and Small caps Index)...
- Do assurance and assurance providers enhance COVID-related disclosures in CSR reports? An examination in the UK context
Purpose: The COVID-19 pandemic has been adding pressures on companies to commit to their social and ethical responsibilities. Corporate social responsibility (CSR) reporting is the main tool through which companies communicate their social behaviour and the need for credible information is...
- The association between corporate governance and firm performance – a meta-analysis
Purpose: – The purpose of this paper is to investigate the relationship between corporate governance and firm performance by conducting a meta-analysis of 25 previous studies. The analysis has three specific concerns, i.e. the moderating effects of legal systems (common law or civil law),...
- Conceptualizing big data practices
Purpose: The purpose of this paper is to provide a conceptual understanding of Big Data practices in organizations, which will enable exploring the operational and strategic roles of Big Data in organizational performance. Design/methodology/approach: Both academic and non-academic literature...
- SOX 404 and debt contracting value of accounting information
Purpose: This paper aims to investigate whether the Section 404 of Sarbanes–Oxley Act (SOX 404) changed the way banks use accounting information to price corporate loans. Design/methodology/approach: The study uses a sample of 1,173 US-listed firms that issued syndicated loans both before and...
- Corporate governance and corporate social responsibility: new evidence from China
Purpose: This paper aims to examine the impact of corporate governance on corporate social responsibility (CSR) performance, paying particular attention to modern Chinese businesses. Particularly, it examines how ownership concentration, boards of directors and boards of supervisors affect the...
- Implications of tax audit risk, consequences, aggressive behavior and ethics for compliance
Purpose: This study investigates whether consideration of future consequences (CFC), Machiavellianism (MACH) and the perceived role of ethics and social responsibility (PRESOR) enhance understanding of the impact of tax audit risk on compliance. Design/methodology/approach: A between-subjects...