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Credibility-enhancing tactics for social media corporate disclosures Accounting and Business Research (IF 2.326) Pub Date : 2024-03-08 Wei Sun
This study examines two credibility-enhancing tactics when managers use Twitter as a platform to disclose a message about an employee training programme, which is an important dimension of corporat...
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Do social ties between two signatory auditors affect audit quality and firm value? Accounting and Business Research (IF 2.326) Pub Date : 2024-02-21 Xinxian Chen, Jean Jinghan Chen, Jason Zezhong Xiao
We explore the effects of social ties (including alumni relations, regional connections and employment affiliation) between the two signatory auditors (engagement and review auditors) on audit qual...
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Cost behaviour and reporting frequency during the COVID-19 outbreak Accounting and Business Research (IF 2.326) Pub Date : 2024-01-28 Gustav Finne, Jesper Haga, Dennis Sundvik
We examine the effect of financial reporting frequency on cost management decisions in crisis situations, with a focus on the COVID-19 outbreak. Using the European setting, we find that quarterly r...
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Manipulative overconfidence and the cost of unbiased reporting Accounting and Business Research (IF 2.326) Pub Date : 2024-01-12 Nikolaj Niebuhr Lambertsen
I study earnings management in a principal-agent model where the agent is overconfident in their ability to manage earnings, and the principal may induce the agent to communicate earnings truthfull...
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Earnings management by acquiring firms in cash mergers Accounting and Business Research (IF 2.326) Pub Date : 2024-01-12 Kamran T. Malikov, Alaa Mansour Zalata
We examine earnings management by cash bidders with debt financing. We hypothesise and find that highly leveraged cash bidders seeking to fund bids with debt manage earnings in the pre-merger perio...
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Examining an expanded repertoire of finance functions: effects on performance and the moderating role of environmental uncertainty Accounting and Business Research (IF 2.326) Pub Date : 2024-01-09 Henrik Nielsen, Thomas Toldbod, Thomas Borup Kristensen
The literature recognises that the activities of contemporary finance functions are expanding. Guided by the competing values framework, we group the results of previous research into four roles pe...
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Accounting and Business Research – ESG themed issue Accounting and Business Research (IF 2.326) Pub Date : 2023-12-21 Mark Clatworthy, Juan Manuel Garcia Lara, Edward Lee
Published in Accounting and Business Research (Vol. 54, No. 1, 2024)
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Integrating contemporary accounting and international business research: progress so far and opportunities for the future Accounting and Business Research (IF 2.326) Pub Date : 2023-12-12 Salvador Carmona, Igor Filatotchev, Jan Hendrik Fisch, Gilad Livne
To date, the accounting and international business (IB) research fields have been developing rather independently, although some cross-discipline fertilisation is emerging. This paper aims to illus...
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Mythmaking in audit regulation: the Canadian initiative on ‘enhancing audit quality’ Accounting and Business Research (IF 2.326) Pub Date : 2023-12-09 Simon Dermarkar, Anna Samsonova-Taddei, Yves Gendron
Although extant literature has provided accounts of regulatory processes that failed to produce new or improved regulation, we know less about how regulators attempt to devise an ‘illusion of regul...
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Transformational leadership style and holistic accountability mechanisms in not-for-profit organisations Accounting and Business Research (IF 2.326) Pub Date : 2023-11-30 Graeme Harrison, Jinhua Chen, Lu Jiao
This study examines: (i) the ability of the transformational leadership style of top management to effect holistic accountability in not-for-profit organisations (NFPs) through the use of downward ...
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Does high-frequency trading cause stock prices to deviate from fundamental values? Accounting and Business Research (IF 2.326) Pub Date : 2023-11-23 Michael Jung, Kyung Yoon Kwon, Hyungshin Park
We examine whether high-frequency trading (HFT) is associated with greater deviations of stock prices from firms’ fundamental, intrinsic values. Prior studies show that HFT can improve market liqui...
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The impact of cost stickiness on income smoothing: evidence from employment protection regulations Accounting and Business Research (IF 2.326) Pub Date : 2023-11-07 Andrei Filip, Junqi Liu, Daphne Lui
Prior literature suggests that cost stickiness increases the ex-ante volatility and reduces the predictability of earnings. We examine whether managers intentionally undo such consequences by dampe...
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The effect of natural disasters on big bath earnings management of banks: evidence from the 2005 US hurricane season Accounting and Business Research (IF 2.326) Pub Date : 2023-11-07 Qiurong Yang, Gang Bai
We investigate the effect of the 2005 US hurricane strikes on big bath earnings management in the banking industry. Using a difference-in-differences approach, we find that banks affected by the hu...
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Reducing partner risk: the effect of feedback timing and incentives Accounting and Business Research (IF 2.326) Pub Date : 2023-09-07 Karen De Meyst, Eddy Cardinaels, Alexandra Van Den Abbeele
Firms’ partners often face a wide range of risks and may experience detrimental effects when these firms do not meet certain targets. In this study, we examine how timing of feedback about target o...
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Short selling pressure and tone management: evidence from regulation SHO Accounting and Business Research (IF 2.326) Pub Date : 2023-08-08 Ruichang Lu, Tenghui Wang, Xiaojun Zhang
We study the causal effect of short selling on managers’ tone during earnings conference calls. Utilising Regulation SHO, a pilot scheme governing short-selling activity, we find that pilot firms with relaxed short-selling constraints use more negative tone. This effect is more pronounced for firms that are easier to short sell, those where managers have an incentive to manipulate tone, and those that
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Introduction Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Robert Hodgkinson
Published in Accounting and Business Research (Vol. 53, No. 5, 2023)
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Accounting for resilience: the role of the accounting professions in promoting resilience Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Layla Branicki, Stephen Brammer, Martina Linnenluecke, David Houghton
The rising incidence, variety and severity of extreme events that threaten both business and society has increased interest in promoting resilience to such threats. However, relatively little research has explored the potential contributions of the accounting profession to resilience at multiple scales and levels of analysis. To address the need for additional research, in this study we explore the
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‘Accounting for resilience: the role of the accounting professions in promoting resilience' A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Catherine Burnet
Published in Accounting and Business Research (Vol. 53, No. 5, 2023)
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Tax systems: adaptability and resilience during a global pandemic Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Stephen Daly
The tax system is traditionally understood as being geared primarily, but not exclusively, towards the raising of revenues. Taxes perform distributive and regulatory roles for instance. Furthermore, the tax system can also be engaged for the purpose of providing stability in times of uncertainty and for providing key information to government so that its policies (whether economic, social, health,
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‘Tax systems: adaptability and resilience during a global pandemic’ A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Caroline Miskin
Published in Accounting and Business Research (Vol. 53, No. 5, 2023)
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Access to finance: adaptability and resilience during a global pandemic Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Thorsten Beck
Firms’ access to external finance is constrained by information asymmetries between lenders and borrowers, which are inversely related to firm size and economic growth. Pandemic and lockdown measures constituted an extraordinary shock for corporations, including for their funding, mitigated, however, by governments’ fiscal, monetary and regulatory responses. The combined effect of these measures created
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‘Access to finance: adaptability and resilience during a global pandemic’ A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Roslyn Gamsa
Published in Accounting and Business Research (Vol. 53, No. 5, 2023)
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The Covid-19 pandemic and management controls Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Hoa Ho, Christian Hofmann, Nina Schwaiger
We examine how firms respond to the Covid-19 pandemic by adjusting their management controls and what the consequences are in terms of firms’ resilience to the crisis. We review literature that deals with the influence of the Covid-19 pandemic on business and investigate results from a survey conducted within a large international multi-divisional service firm and the German Business Panel. We find
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‘The Covid-19 pandemic and management controls’ A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2023-07-31 Tristan Price
Published in Accounting and Business Research (Vol. 53, No. 5, 2023)
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Why do firms disclose analyst following on their corporate websites? Accounting and Business Research (IF 2.326) Pub Date : 2023-07-26 Afshad J. Irani, Irene Karamanou
About two-thirds of S&P500 firms disclose their analyst following on their corporate websites. Half of these firms disclose their analyst following in an unbiased fashion, while the rest manage this disclosure by selectively omitting analysts with pessimistic views (selective disclosers). Consistent with facing stronger incentives to manage expectations, coupled with weaker information environments
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Dividend policy dispute in a context of concessionaire companies: the role of accounting in the case of Spanish Railway Companies (1920–1930) Accounting and Business Research (IF 2.326) Pub Date : 2023-07-25 Beatriz Santos-Cabalgante, Beatriz García Osma, Domi Romero Fúnez
We study dividend payments and earnings management in railway companies in the first decades of the twentieth century. We argue that the historical organization of the Spanish railway industry as a complex net of 99-year concessionary contracts created predictable incentives for earnings management and rent extraction. The countdown to concessions reversals pressured the State, as residual owner, to
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Corporate tax avoidance and trade credit Accounting and Business Research (IF 2.326) Pub Date : 2023-05-05 Mostafa Monzur Hasan, Ahsan Habib
We examine the relationship between corporate tax avoidance and reliance on trade credit. Using a sample of US listed firms during the period 1987–2017, we show that tax-avoiding firms rely more on supplier-provided trade credit as a source of financing. We take advantage of the ‘check-the-box’ regulation introduced in 1997 as an exogenous shock to firms’ tax strategies. The findings from the diff
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Do generalist CEOs engage in more tax avoidance than specialist CEOs? Accounting and Business Research (IF 2.326) Pub Date : 2023-05-03 Muhammad Kabir, Harun Rashid
Existing research suggests that generalist CEOs, who possess managerial skills that are transferrable across firms and industries, are more able to bear downside risk than specialist CEOs with non-transferrable managerial expertise. In this paper, we examine whether generalist CEOs are better positioned to engage in risky tax avoidance strategies than specialist CEOs. Our empirical results support
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Natural disasters and audit fees Accounting and Business Research (IF 2.326) Pub Date : 2023-04-27 Yumin Karen Zhang Perry, Christofer Adrian, Fang Hu, Cameron Truong
This paper investigates the impact of natural disasters on the pricing of audit services. Using a staggered difference-in-differences (DiD) design and a sample of 1481 firm-year observations over t...
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Board attributes and companies’ choice of sustainability assurance providers Accounting and Business Research (IF 2.326) Pub Date : 2023-03-27 Kholod Alsahali, Ricardo Malagueño, Ana Marques
We study whether and how the monitoring quality of the board of directors is associated with the choice of providers of assurance for sustainability disclosures. We also examine whether this relation depends on companies’ economic, legal, and social environment. In an international empirical study considering five categories of assurance providers, we find that key board attributes, including board
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Thank you to reviewers Accounting and Business Research (IF 2.326) Pub Date : 2023-02-21
Published in Accounting and Business Research (Vol. 53, No. 3, 2023)
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Does product market competition influence annual report readability? Accounting and Business Research (IF 2.326) Pub Date : 2023-02-06 Dewan Rahman, Muhammad Kabir, Muhammad Jahangir Ali, Barry Oliver
We study product market competition’s influence on annual report readability. As competition increases in an industry, our findings show that firms reduce the readability of their annual reports. We further document that the impact of competition on annual report readability is stronger for research and development (R&D)-intensive firms, for firms that have a higher level of trade secrecy (i.e. proprietary
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Groupthink tendencies in top management teams and financial reporting fraud Accounting and Business Research (IF 2.326) Pub Date : 2023-01-12 Valerie Li
I investigate the factors that contribute to financial reporting fraud in firms that are, ex ante, at a high risk of committing fraud. Using propensity score matching, I select a sample of firms with similar ex ante risk for committing fraud. I find that within this sample, interconnectedness among members of the top management team (TMT), specifically connections developed outside the firm, is significantly
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On the meaning, importance and translation of ‘realised’ Accounting and Business Research (IF 2.326) Pub Date : 2023-01-04 Christopher Nobes
Non-governmental standard-setters need to establish legitimacy by, among other things, demonstrating expertise. Therefore, the IASB aims to use clearly articulated principles and consistent concepts. This paper makes a comprehensive examination of the concept of ‘realised’ in IFRS. The term appears extensively but is not defined. It seems to have a variety of meanings, technical and not. In translations
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Definitions and measures of corporate reputation in accounting and management: commonalities, differences, and future research Accounting and Business Research (IF 2.326) Pub Date : 2023-01-04 Jochen Bigus, Kieu Phuong Mai Hua, Sascha Raithel
This study reviews and compares the definitions and measurements of ‘corporate reputation’ used in 173 studies published in seven top-tier accounting and management journals between 1980 and 2020. Accounting scholars frequently fail to define ‘reputation,’ and if they do, definitions vary considerably between the accounting and management fields. We further find that measures of reputation do not fit
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Does a liability of foreignness in liquidity apply to US IPOs? Accounting and Business Research (IF 2.326) Pub Date : 2023-01-04 Chiara Banti, Gary C. Biddle, Jonathan Jona
We provide evidence regarding two unanswered and consequential questions regarding share trading liquidity, a primary motive for US listings, for the prominent listing cohort of foreign-firm US initial public offerings (FIPOs). First, we test whether FIPOs exhibit a ‘liability of foreignness (Bell et al. 2012) in liquidity’ (LFL) compared with matched domestic-firm IPOs (DIPOs), despite listing requirements
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Corporate philanthropy as a response to greater tax enforcement Accounting and Business Research (IF 2.326) Pub Date : 2022-12-29 Le Zhao
I examine whether firms engage in more corporate philanthropy in response to greater tax enforcement. Using the introduction of a new tax administration system as a proxy for increased tax enforcem...
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CEO Facial masculinity and accounting conservatism Accounting and Business Research (IF 2.326) Pub Date : 2022-10-18 Keval Amin, Cecilia (Qian) Feng, Peng Guo, Hong You
In this study, we examine the consequences of CEO facial masculinity for accounting conservatism. Facial masculinity is associated with an array of masculine behaviours including aggression, ambiti...
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Pension plans’ funded status volatility and corporate credit risk Accounting and Business Research (IF 2.326) Pub Date : 2022-10-03 Tsung-Kang Chen, Yijie Tseng, Ruey-Ching Lin
We investigate whether and how U.S. pension plans’ funded status volatility affects firm credit risk. We first show that a firm's funded status volatility is positively related to its bond yield sp...
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Does public scrutiny on corporate tax decisions affect directors? Effects of responsible (irresponsible) corporate tax practices on director reputation Accounting and Business Research (IF 2.326) Pub Date : 2022-09-29 Chun Keung (Stan) Hoi, Yun Ke, Qiang Wu, Hao Zhang
In 2004, the Citizens of Tax Justice (CTJ) released a report that significantly raised public awareness of corporate tax avoidance practices in the companies that it scrutinised in the study. Using...
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Capital market response to high quality annual reporting: evidence from UK annual report awards Accounting and Business Research (IF 2.326) Pub Date : 2022-09-05 Justin Chircop, Jacqueline Gagnon, Steven Young
We examine the capital market response to the publication of annual reports shortlisted for corporate reporting awards. We find weaker capital market reactions to the publication of shortlisted ann...
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Does mandatory disclosure of firm’s tax avoidance position affect corporate investment efficiency? Accounting and Business Research (IF 2.326) Pub Date : 2022-09-01 Khalid Mehmood, Hongbin Tan, Xuedan Tao, Huabing (Barbara) Wang
This paper examines the effect of a firm’s tax avoidance position disclosure on corporate investment efficiency by utilising an exogenous shock to corporate tax reporting that mandates firms to dis...
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Discussion of ‘The impact of the adoption of IFRS 11 on the comparability of accounting information’ Accounting and Business Research (IF 2.326) Pub Date : 2022-08-10 Katherine Schipper
Published in Accounting and Business Research (Vol. 52, No. 6, 2022)
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Introduction Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Robert Hodgkinson
Published in Accounting and Business Research (Vol. 52, No. 5, 2022)
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Why do accounting issues end up in the ‘too difficult’ box? Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Katherine Schipper
I discuss outcome-based characteristics of several vexatious and recurring standard-setting issues, described for purposes of this paper as ‘too difficult,’ and apply these characteristics to identify four examples of ‘too difficult’ accounting issues: reporting financial performance; disaggregated financial performance reporting as exemplified by segment reporting; distinguishing liabilities from
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‘Why do accounting issues end up in the “too difficult” box?’ A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Hans Hoogervorst
Published in Accounting and Business Research (Vol. 52, No. 5, 2022)
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Insurance: in or out of the ‘too difficult’ box? Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Sudipta Basu, Martin F. Grace
IFRS 17 requires a significant change to insurer accounting, and we look at some of the frictions resulting from its implementation. We make three points. First, since IFRS 17 is a principles-based standard, it will be costly to implement. Audit committees must become sophisticated users of the underlying models generating the reports. Second, we examine the effect of the Sarbanes-Oxley Act on U.S
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‘Insurance: in or out of the “too difficult” box?’ A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Jo Clube
Published in Accounting and Business Research (Vol. 52, No. 5, 2022)
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Does every accounting issue need a solution? Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Katharina Hombach, Thorsten Sellhorn
We discuss the concept and costs of resolving accounting issues. We first characterise the (degree of) resolution of an accounting issue as a continuous concept, arguing that an accounting issue is unresolved where an established solution is either uncertain or produces financial information with undesired consequences. We then describe standard setters and market participants as possible institutions
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‘Does Every Accounting Issue Need a Solution?’ A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Doug King
Published in Accounting and Business Research (Vol. 52, No. 5, 2022)
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Accounting standards: the ‘too difficult’ box – the next big accounting issue? Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Mary E. Barth
Embracing the perspective of accounting as providing information to support capital allocation decisions could help avoid accounting issues ending up in the ‘Too Difficult' Box. Investors need and use information not contained in traditional financial statements. Thus, focusing on financial statements as the sole accounting output limits the ability of accounting reports to meet investors' information
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‘Accounting standards: the “too difficult” box - the next big accounting issue?’ A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Veronica Poole
Published in Accounting and Business Research (Vol. 52, No. 5, 2022)
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Accounting in the Anthropocene: A roadmap for stewardship Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Jan Bebbington, Andy Rubin
Stewardship is a concept that has historically underpinned the practice of accounting, with a focus on the stewardship of financial resources. As times change, so too do the elements of organisational performance that might be subject to stewardship demands. Critically for this paper, a roadmap for organisational stewardship in the Anthropocene is developed. In brief, the Anthropocene is a term used
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‘Accounting in the Anthropocene’: A practitioner view Accounting and Business Research (IF 2.326) Pub Date : 2022-08-04 Richard Spencer
Published in Accounting and Business Research (Vol. 52, No. 5, 2022)
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Disclosure of value-based performance measures: evidence from German listed firms Accounting and Business Research (IF 2.326) Pub Date : 2022-07-27 Christian Brück, Thorsten Knauer, Anja Schwering
We examine the determinants of the disclosure of value-based (VB) performance measures in Germany. We argue that firms are more likely to disclose VB performance measures when information asymmetry...
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Corporate social responsibility disclosure: a topic-based approach Accounting and Business Research (IF 2.326) Pub Date : 2022-07-01 Katrin Hummel, Stéphanie Mittelbach-Hörmanseder, Charles H. Cho, Dirk Matten
In this study, we investigate the potential differences in topic-specific corporate social responsibility (CSR) disclosure between companies located in liberal market economies (LMEs) and coordinat...
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Revisiting pay-performance sensitivity around IFRS adoption in Europe: the dominant role of Germany Accounting and Business Research (IF 2.326) Pub Date : 2022-06-10 Jesper Banghøy, Jan Marton, Thomas Plenborg, Emmeli Runesson
In this study, we investigate the effect of IFRS adoption on pay-performance sensitivity (PPS) in the European Economic Area (EEA) and show that the documented positive effect is driven by one coun...
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Voluntary vs. mandatory: the role of auditing in constraining corporate tax avoidance in small private firms Accounting and Business Research (IF 2.326) Pub Date : 2022-06-02 Ting Dong, Milda Tylaite, Ryan Wilson
This paper examines whether the status of the financial statement audit, as either voluntary or mandatory, is related to the corporate tax avoidance behaviour of private firms. Using the Swedish au...
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How do bank managers forecast the future in the shadow of the past? An examination of expected credit losses under IFRS 9 Accounting and Business Research (IF 2.326) Pub Date : 2022-06-02 Ning Du, Alessandra Allini, Marco Maffei
One of the most significant changes under IFRS 9 is the shift to considering and incorporating forward-looking information to forecast expected credit losses (ECL). This study aims to understand ho...
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The impact of the adoption of IFRS 11 on the comparability of accounting information Accounting and Business Research (IF 2.326) Pub Date : 2022-06-02 Raquel Wille Sarquis, Ariovaldo dos Santos, Isabel Lourenço, Guillermo Oscar Braunbeck
We analyse the impact of the introduction of IFRS 11 on the comparability of accounting information. IFRS 11 eliminated proportionate consolidation as an alternative to accounting for interests in joint ventures. Our sample comprises 2,059 firms with interests in joint ventures from 26 countries over the period 2005–2016. Overall, the comparability of accounting information decreased after the adoption