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Does Social Capital Enhance Stock Liquidity? An Investigation of the Resilience of the Trading Environment During a Crisis of Trust Abacus (IF 2.06) Pub Date : 2024-02-26 Robert Faff, Jianning Huang, Pei Shao, Yuchao Xiao, Fuzhao Zhou
We investigate whether social capital and trust provide a form of liquidity/trading resilience, more specifically, whether social capital and trust played a role in the speed of stock recovery following activation of the market‐wide circuit breaker (MWCB) that occurred at the beginning of the COVID‐19 pandemic in March 2020. Our finding that high‐social capital firms rebounded more swiftly in terms
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Evaluation of Fair Value Relevance and Sensitivity to Valuation Assumptions Abacus (IF 2.06) Pub Date : 2024-02-14 Le Ma, Peter Wells
This paper evaluates whether the relevance of investment properties measured using Level 3 inputs is impacted by the assumptions underpinning the determination of fair values. Evidence is provided of investors generally finding investment property fair values determined with Level 3 inputs to be relevant, and the values are not discounted in market price. However, this is not the case when there is
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Commentary on ‘Accounting for Inflation: The Dog That Didn't Bark’ Abacus (IF 2.06) Pub Date : 2024-02-11 S. P. Kothari
Historical cost accounting presents a financial summary of a firm's activities that actually occurred in the past year and informs the user of the firm's current status through the income statement, balance sheet, and statement of cash flows. The user utilizes this information and combines with other information in drawing inferences about the management and firm's performance, the risk profile of
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Interpreting IFRS: The Evolving Role of Agenda Decisions Abacus (IF 2.06) Pub Date : 2024-01-05 Paola Ramassa, Alberto Quagli
This study examines the evolution of the interpretative support provided by the IFRS Interpretations Committee (IC), the interpretative body of the International Accounting Standards Board (IASB), over the period 2002–2019. The study focuses on its most frequent output, agenda decisions (ADs), which can provide guidance that practice has long considered relevant and has been explicitly considered authoritative
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Bankruptcy Resolution: Misery or Strategy Abacus (IF 2.06) Pub Date : 2024-01-04 Jairaj Gupta, Mariachiara Barzotto, André Aroldo Freitas De Moura
Contrary to conventional wisdom, this study reports a positive relationship between large US firms' leverage levels and their likelihood of emerging from Chapter 11 bankruptcy. In anticipation of a favourable court outcome, which allows them to emerge from bankruptcy with reduced debt, firms tend to increase their leverage levels in the years preceding the bankruptcy filing year. This suggests strategic
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Crisis Capital: Private Placements During COVID-19 Abacus (IF 2.06) Pub Date : 2023-12-11 Angelo Aspris, Edward Bi, Sean Foley, Jiri Svec
Equity issuance activity rose sharply across the corporate sector during the COVID-19 crisis. We use this period of unprecedented uncertainty to study the effects of financial distress on seasoned equity offering returns. We find that firms increased their reliance on placements during this period of economic turmoil, with, on average, significantly larger issues, steeper discounts, and a greater focus
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Accounting for Inflation: The Dog That Didn't Bark Abacus (IF 2.06) Pub Date : 2023-12-13 Ray Ball
A fundamental flaw in the methods that academics and practitioner bodies have proposed to account for price changes is that they assume the real and monetary sectors are independent. This is the logic of classical macroeconomics pre-Keynes/Friedman, which long since has been discredited by theory and evidence. Both economy-wide and idiosyncratic shocks to firms’ factor prices are unlikely to be positively
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The Accruals–Cash Flow Relation and the Evaluation of Accrual Accounting Abacus (IF 2.06) Pub Date : 2023-12-06 Hyung Il Oh, Stephen Penman
Considerable research has evaluated the role of accruals in determining informative earnings, with an accrual–cash flow relation at the centre of the investigation. However, much of the research is based on a misunderstanding. First, accruals are identified as the numbers that reconcile earnings to cash flows in the cash flow statement. But these are not the non-cash accruals applied in determining
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The Effect of Organizational Climate on Sell-side Analyst Turnover and Performance Abacus (IF 2.06) Pub Date : 2023-10-19 Wai Fong Chua, Yu Flora Kuang, Yi (Ava) Wu
This paper investigates whether and how organizational climate (OC) in brokerage firms affects analyst turnover and performance. We find that firms with a lower-rated OC have a higher likelihood of analyst turnover. Also, when analysts leave and switch brokerage firms, they are more likely to move to a firm with a higher-rated OC and will deliver more accurate forecasts after switching firms. However
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Corporate Governance Reforms and Analyst Forecasts: International Evidence Abacus (IF 2.06) Pub Date : 2023-09-20 Simeng Liu, Kun Tracy Wang, Yue Wu
In this study, we examine the effect of worldwide corporate governance reforms on analyst forecasts using data on firms from 41 countries that have implemented such reforms. Employing a difference-in-differences design, we find robust evidence of a significant positive effect of these reforms, which mainly promote the independence of the audit committee and auditors, on analyst forecast accuracy. We
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The Regulatory Approach of James R. Doty: PCAOB Chair 2011–2018 Abacus (IF 2.06) Pub Date : 2023-09-10 John D. Keyser
James R. Doty was the chair of the US Public Company Accounting Oversight Board (PCAOB) from February 2011 to January 2018. Extant research investigates the outcomes of the PCAOB's regulatory approach without examining what that approach is. This article examines two approaches to regulation: merit and disclosure. For example, the PCAOB inspection process, which focuses on remediation of deficiencies
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Analysts’ Earnings per Share Forecasts: The Effects of Forecast Uncertainty and Forecast Precision on Investor Judgements Abacus (IF 2.06) Pub Date : 2023-09-14 Clarence Goh
This study uses controlled experiments to investigate the joint effects of forecast uncertainty and forecast precision on investor judgements. It finds that forecast precision moderates the effects of forecast uncertainty on investors’ forecast reliability judgements such that the effects of forecast uncertainty on investors’ judgements of forecast reliability are more negative when an analyst's point
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Does Portfolio Momentum Beat Analyst Advice? Abacus (IF 2.06) Pub Date : 2023-09-03 Jaeyong Lee, Jonathan A. Batten, Hyuna Ham, Doojin Ryu
We conduct a comparison of three portfolio investment strategies in the US stock market following the implementation of Regulation Fair Disclosure in October 2000. The strategies analyzed are analyst-recommended, recommendation changes, and momentum portfolios. Across various time periods, company sizes, and industry sectors, the momentum portfolio consistently outperforms the other strategies. Portfolios
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Voluntary Carbon Reporting Prediction: A Machine Learning Approach Abacus (IF 2.06) Pub Date : 2023-07-27 Geoffrey Frost, Stewart Jones, Muchen Yu
In this paper we address the impact of the introduction of the National Greenhouse and Energy Reporting scheme on corporate carbon reporting, and subsequently identify factors that influence the level of voluntary carbon reporting. A review of the literature demonstrates a large number of potential factors have been previously deployed to explain voluntary reporting practices; however, the analytical
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Valuation Implications of Mandatory CSR Expenditure in India Abacus (IF 2.06) Pub Date : 2023-07-20 Sudipta Bose, Peter M. Clarkson, Gordon D. Richardson
We examine the value-relevance of corporate social responsibility (CSR) expenditure utilizing the Indian setting of mandatory CSR spending regulation which commenced in 2014. India is the only country where regulators mandate both CSR reporting and spending. Our interest is in two types of firms that meet the minimum specified thresholds: firms that voluntarily made CSR expenditures pre-regulation
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Why Do Analysts use a Zero Forecast for Other Comprehensive Income? Abacus (IF 2.06) Pub Date : 2023-05-18 Mark Wallis
Accounting theory and accounting researchers stress the importance of clean surplus accounting and comprehensive income to corporate valuation. However, casual observation suggests that sell-side equity analysts routinely ignore other comprehensive income (OCI) in their forecasts and instead focus on forecasting earnings (before OCI). Using a sample of analyst reports, I first confirm that analysts
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Analyst Research Activity During the COVID-19 Pandemic Abacus (IF 2.06) Pub Date : 2023-05-12 Pawel Bilinski
This paper documents that, in response to the COVID-19 pandemic, analysts increase their research activity and significantly revise their forecasts when compared to the pre-pandemic period. Uncertainty-adjusted forecast errors are either comparable or smaller during the pandemic compared to the pre-pandemic period. Investor attention and price reactions to analyst forecast revisions are higher during
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Board Connections and Dividend Policy Abacus (IF 2.06) Pub Date : 2023-05-01 Kambar Farooq, Muhammad Azeem, Chin Man Chui, Jun (Tony) Ruan
We examine the role of firm board connectedness in shaping a firm's dividend policy. We show that firms with well-connected boards not only have a higher likelihood of paying dividends in the pooled sample of both dividend payers and non-payers but also pay more dividends in the sample of dividend payers, compared with those with poorly connected boards. Further analysis reveals that the relation between
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Client Importance and Audit Quality at the Individual Audit Partner, Office, and Firm Levels Abacus (IF 2.06) Pub Date : 2023-05-01 Sarowar Hossain, Jeff Coulton, Jenny Jing Wang
We investigate whether audit partner level data provides a more powerful measure than office or firm level measures of client importance. We find that the likelihood of issuing a going-concern opinion (any and first-time) increases, and the absolute value of discretionary accruals decreases, in relation to the proportion of audit fees to the total audit fees received by audit partners from all their
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An Empirical Investigation of the Effect of CFO Power on Disclosure Quality Abacus (IF 2.06) Pub Date : 2023-04-11 Lutfa Tilat Ferdous, Kamran Ahmed, Darren Henry
We examine the association between chief financial officer (CFO) power and disclosure quality, measured using financial statement disaggregation disclosure and analyst forecast disclosure. Empirically, we validate that CFO power, measured by multiple dimensions, is positively associated with firms’ disclosure quality. We also find that this positive association between CFO power and disclosure quality
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Do Investors Perceive the Link Between Equity Method Earnings and Future Earnings? The Role of Supplemental Disclosures Abacus (IF 2.06) Pub Date : 2023-03-14 Curtis Farnsel
Equity method investments are commonly a material component of a firm's corporate structure, yet these investments are presented to financial statement users through opaque financial reporting. This study demonstrates that the link between equity method earnings and future earnings is stronger than the link between consolidated earnings and future earnings, consistent with the synergistic and diversification
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Could Accounting Have Saved Itself from the Antitrust Laws?Revisiting the Antitrust Investigations into the US Accounting Profession 1966–1990 Abacus (IF 2.06) Pub Date : 2023-03-06 Michael E. Doron
While the role of lobbying in the US public accounting profession has been the subject of several studies, what has not been addressed is the profession's historic reluctance to lobby and the impact this may have had on the profession. This paper provides a case study of public accounting's interaction with government and the need for the profession to articulate the impact of government policies on
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Does Earnings Quality Influence Corporate Social Responsibility Performance? Empirical Evidence of the Causal Link Abacus (IF 2.06) Pub Date : 2023-03-04 Sudipta Bose, Chuan Yu
The study examines the causal links between earnings quality and corporate social responsibility (CSR) performance using a large sample of United States (US) firms from 1992 to 2013. We first find that the association between earnings quality and CSR performance is positive and significant. We then test the flow of causality using Granger's (1969) lead–lag analysis to determine whether changes in earnings
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Country-level Accounting Enforcement and IPO Underpricing Abacus (IF 2.06) Pub Date : 2023-01-29 Jochen Bigus, Florian Dreyer
Using a sample of up to 2,503 initial public offerings (IPOs) in 32 countries from 2011–2017, we predict and find that higher levels of country-level accounting enforcement are associated with lower levels of IPO underpricing. IPOs in countries with a relatively low accounting enforcement score (second quintile) exhibit a mean underpricing of 19%, whereas the mean underpricing amounts to just 9% in
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Regulating the Market for Audit Services: A Game Theoretic Approach Abacus (IF 2.06) Pub Date : 2023-01-25 Konstantinos Eleftheriou, Iliya Komarev, Paul Klumpes
We apply game theory to model how alternative mandatory audit firm rotation regimes can affect the strategic interaction between auditee and auditor firms, and analyze potential consequences on detection risk and impairment of auditor scepticism. The major results suggest that: (1) relative to an initial state with no rotation requirement but high probability for impaired auditor scepticism, imposing
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Excess Cash Holdings, Stock Returns, and Investment Organicity: Evidence from UK Investment Announcements Abacus (IF 2.06) Pub Date : 2022-12-02 Edward Jones, Hao Li, Oluwagbenga Adamolekun
This paper examines whether the market reaction to investment announcements is conditional on company excess cash holdings. Cash may convey significant price-relevant information about the future cash flows and strategic direction of a company. Using a sample of 4,256 corporate investment announcements by firms listed on the London Stock Exchange over the period 2005–2019, we show that market reactions
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Do Heterogeneous Beliefs Matter to Post-announcement Informed Trading? Abacus (IF 2.06) Pub Date : 2022-11-21 Tao Chen, Andreas Karathanasopoulos
We examine whether heterogeneous beliefs among investors affect post-announcement informed trading. Using a global transaction-level dataset, we find that post-announcement informed trading increases with heterogeneous beliefs developed at the event window. Such an inference survives from several robustness checks. As additional analyses indicate, shrinking liquidity at the earnings announcement serves
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Disentangling Sentiment from Cyclicality in Firm Capital Structure Abacus (IF 2.06) Pub Date : 2022-11-18 Haitham A. Al-Zoubi, Jennifer A. O'Sullivan, Aktham I. Al-Maghyereh, Brendan J. Lambe
This study examines the relationship between capital structure choices and investor and managerial sentiment, finding that periods of positive sentiment are associated with reduced leverage within firms. We focus on the cyclicality of leverage using non-orthogonalized sentiment indices and find a strong negative relationship. Leverage, therefore, appears countercyclical, implying that the decision
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The Post-earnings Announcement Drift: A Pre-earnings Announcement Effect? A Multi-period Analysis Abacus (IF 2.06) Pub Date : 2022-08-09 A. William Richardson, Kevin Veenstra
For many years, the post-earnings announcement drift (PEAD) has been accepted as an anomaly to the efficient markets hypothesis. This drift subsequent to earnings announcements has been ascribed to the incomplete incorporation by the market of the information in these earnings announcements. Interestingly, over the past five decades of extensive research, no rational economic explanation of the PEAD
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Risk Analysis of Pension Fund Investment Choices Abacus (IF 2.06) Pub Date : 2022-08-02 Emawtee Bissoondoyal-Bheenick, Robert Brooks, Hung Xuan Do
We provide a comprehensive and more consistent approach to analyse and compare the risk-return relationships of Australian superannuation investment options for the period January 1990 to December 2016. In estimating the risk profiles of the investment options, we allow for the movement of the asset classes over time by employing a varying coefficient panel estimation technique. We find that while
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Moderating Effect of Error Source on the Continued Influence of Retracted Disclosure on Individual Investors’ Judgements Abacus (IF 2.06) Pub Date : 2022-07-20 Seet-Koh Tan
This study undertakes an experiment, in which Masters of Business Administration students participate as individual investors, to examine the impact of error sources (management versus press) on the continued influence of retracted disclosures. Given the increasing role of third parties in disseminating information, it is vital to examine the moderating effect of error source, a factor not previously
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An Examination of Other-than-temporary Impairments: Evidence from FSP FAS 115-2 and FAS 124-2 Abacus (IF 2.06) Pub Date : 2022-06-13 Tuba Toksoz
This study investigates amendments to the other-than-temporary impairment (OTTI) measurement and recognition guidance for debt securities in the Financial Accounting Standards Board's Staff Position FAS 115-2 and FAS 124-2 (‘the FSP’). The FSP permits the OTTI charge for debt securities to be split into the credit loss amount recognized in net income (NI) and the amount related to all other factors
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Audit Risk Evaluation Using Data Envelopment Analysis with Ordinal Data Abacus (IF 2.06) Pub Date : 2022-04-11 Gholam R. Amin, Osama El-Temtamy, Samy Garas
This study examines the data envelopment analysis (DEA) model for audit risk evaluation which was initially developed by Bradbury and Rouse (2002) and reinterpreted by Davutyan and Kavut (2005). Bradbury and Rouse (2002) apply the standard DEA model for audit risk factors, including judgemental (ordinal) measures. In the presence of ordinal data, efficiency analysis in DEA requires appropriate models
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Local Gambling Attitudes and Audit Quality: Evidence from Audit Adjustments Abacus (IF 2.06) Pub Date : 2022-03-27 Lijing Tong, Bin Wu, Min Zhang
This study examines the influence of local gambling attitudes on audit quality. As a preference for gambling correlates to a greater tendency to take risks, we hypothesize that auditors make a greater magnitude of audit adjustments for clients headquartered in gambling-prone areas to reduce heightened audit risk. Consistent with our hypothesis, the empirical results show a positive relation between
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Beating the Average: Equity Premium Variations, Uncertainty, and Liquidity Abacus (IF 2.06) Pub Date : 2022-03-24 Jonathan A. Batten, Harald Kinateder, Niklas Wagner
This paper contributes to the equity premium prediction literature by studying the performance of rarely or not researched predictors. To do so, we analyze the ability of state-of-the-art liquidity and uncertainty predictors to beat the historical average when forecasting the monthly US equity premium. For this purpose, we apply an out-of-sample predictive regression approach to analyze statistical
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Published Accounts, Stewardship, and Decision Making: A Case Study 1863–1940 Abacus (IF 2.06) Pub Date : 2022-03-03 John Richard Edwards, Trevor Boyns
The conventional wisdom is that (i) the published accounts of British registered companies fulfilled a narrow stewardship role from inception (1844) through to 1947 when the Companies Act added significantly to statutory disclosure requirements, and (ii) the ‘decision useful’ role of published financial reports is the creation of ‘golden age’ accounting thinkers in the 1950s and 1960s. Our paper challenges
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The Capitalization Effect of Imputation Credits on Expected Stock Returns Abacus (IF 2.06) Pub Date : 2022-02-28 Anh Le, Xiangkang Yin, Jing Zhao
This paper develops an equilibrium model featuring heterogeneity in investor risk tolerance across different risk sources. Using Australian data, it confirms the theoretical predictions of the model by showing that a higher imputation credit yield in one year leads to a lower stock return in the next year. This negative relationship between imputation credit yield and stock return is weaker for stocks
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Corporate Innovation and Disclosure Strategy Abacus (IF 2.06) Pub Date : 2021-11-10 Zheyuan Zhang, Huiying Wu, Sammy Xiaoyan Ying, Jiaxing You
This study investigates the impact of firm innovation on MD&A disclosure. Firms need to reduce information asymmetry to assist investors on the one hand and to prevent rivals from benefitting from disclosures on the other. Innovative firms can use an optimistic tone to convey good news but increase content similarity to reduce proprietary costs. Management chooses a certain content similarity and tone
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Regulation-induced Disclosures: Evidence of Information Overload? Abacus (IF 2.06) Pub Date : 2021-11-09 Joost Impink, Mari Paananen, Annelies Renders
Researchers, regulators, and practitioners have expressed concerns that the increase in disclosures in annual reports of firms over the past decades has resulted in unintended consequences for financial statement users. We investigate whether increases in disclosure requirements are associated with increased difficulty to use financial statements. We create an index measuring firms' increasing exposure
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Financial Market Manipulation, Whistleblowing, and the Common Good: Evidence from the LIBOR Scandal Abacus (IF 2.06) Pub Date : 2021-10-13 Jonathan A. Batten, Igor LonČarski, Peter G. Szilagyi
The LIBOR (London Interbank Offered Rate) scandal, which led to the prosecution of both financial institutions and individuals for manipulating the primary interest rate benchmark in global financial markets, shows that the current top-down approaches to regulatory rule enforcement cannot prevent or adequately detect financial market abuse. We argue that a bottom-up approach, which relies on individuals
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Individuating Assets and Liabilities in Financial Accounting Abacus (IF 2.06) Pub Date : 2021-09-30 Brian A. Rutherford
Until recently, accounting theorists gave little thought to what makes a particular instance of an asset or liability a single object and the very object it is—what individuates assets and liabilities. This paper offers an analysis of this individuation in the IASB's Conceptual Framework. It can be read at two levels: as an exploration of the coherence of the framework in its own terms, or, at a deeper
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Direct Method Operating Cash Flow Disclosures: Determinants and Incremental Usefulness Abacus (IF 2.06) Pub Date : 2021-09-21 Baljit K. Sidhu, CHUAN YU
This study explores the determinants and incremental usefulness of disclosing components of operating cash flow (CFO) using the direct method in a voluntary US setting and in the Australian setting where it was mandatory prior to 2007. Based on the US voluntary sample, we find that relatively highly levered firms issuing new debt are more likely to voluntarily adopt the direct method. The results are
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Meta-analysis of the Impact of Adoption of IFRS on Financial Reporting Comparability, Market Liquidity, and Cost of Capital Abacus (IF 2.06) Pub Date : 2021-09-21 Solomon Opare, Muhammad Nurul Houqe, Tony van Zijl
A large number of empirical studies have addressed the effects of adoption of International Financial Reporting Standards (IFRS), but the results have been mixed. We use a meta-analysis of 56 empirical studies with 1,265 effect sizes to determine the impact of adoption of IFRS on financial reporting comparability, market liquidity, cost of equity, and cost of debt. This approach provides an objective
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Do Firms Learn from Pre-announcement Experience? Evidence from Optimistic Pre-announcements and Market Responses Abacus (IF 2.06) Pub Date : 2021-09-16 Youngdeok Lim, Hyung Il Oh
In this study, we examine whether firms learn from pre-announcement experience by focusing on optimistic pre-announcements and market responses. Optimistic pre-announcements are pre-announced Earnings Per Share (EPS) higher than or equal to actual EPS. Based on organizational learning theory, we hypothesize that firms experiencing negative market responses to positive pre-announcements (pre-announced
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How Do Managers and Shareholders Respond to Taxation? An Analysis of the Introduction of the UK Real Estate Investment Trust Legislation Abacus (IF 2.06) Pub Date : 2021-09-14 Kevin Holland, Sarah Lindop, Nor Shaipah Abdul Wahab
Corporate finance decisions, measurement of accounting profits, and market valuations are invariably made within the framework of a taxation system(s). Previous research indicates both ambiguity over the influence of taxation on managers’ behaviour and limitations in the ability of shareholders to process tax information. The establishment of the UK's Real Estate Investment Trust (REIT) regime in 2006
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Misvaluation and the Asset Growth Anomaly Abacus (IF 2.06) Pub Date : 2021-09-06 Neophytos Lambertides
It is widely shown that stocks with higher asset growth paradoxically earn lower returns (hereafter, the asset growth anomaly). Studies have pointed towards errors in expectations, over-investment and limits-to-arbitrage as potential causes of misvaluation, the most documented explanation of the asset growth anomaly. What studies have not yet done, however, is provide compelling evidence that mispricing
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Concepts-based Accounting Standards Abacus (IF 2.06) Pub Date : 2021-09-02 Mark Penno
While comparability across firms and consistency over time are generally held to be fundamental goals of financial reporting, I provide an analytic representation of a concept that explains why concepts-based accounting standards cannot assure comparability and why their induced consistency may not always be desirable. While the term ‘concepts-based accounting standards’ has not caught on in the academic
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Terrorism and Corporate Tax Avoidance Abacus (IF 2.06) Pub Date : 2021-07-27 Haoran Xu, William J. Moser
We examine the impact of terrorism risk on corporate tax avoidance. We find that firms headquartered in areas with a higher terrorism risk engage in more corporate tax avoidance. Further, we show that terrorism risk has a greater impact on corporate tax avoidance when terrorist attacks are severe in terms of the targets hit, damage, and the numbers of victims. Tests on channels show that higher terrorism
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Business Model Disclosures, Market Values, and Earnings Persistence: Evidence From the UK Abacus (IF 2.06) Pub Date : 2021-07-21 Lorenzo Simoni, Stefan Schaper, Christian Nielsen
This paper investigates the consequences of business model (BM) disclosures. Content analysis is used to assess the mandatory disclosure of BM in in 75 publicly listed companies' annual reports across a three-year period (2014–2016). The research applies a novel content analysis methodology that considers the way in which the relevance of BM disclosures is dependent on which particular BM a given company
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Disclosures About Key Value Drivers in M&A Announcement Press Releases: An Exploratory Study Abacus (IF 2.06) Pub Date : 2021-07-21 Andrei Filip, Gerald J. Lobo, Luc Paugam, Hervé Stolowy
We investigate the association between disclosures about key value drivers (i.e., growth, synergies, human capital, brands, customers, and technology) in press releases announcing mergers and acquisitions (M&A) deals and acquirer stock returns upon the announcement. We find that, after controlling for the main characteristics of the deal, acquirers that use more terms about these value drivers in press
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55 years of Abacus: Evolution of Research Streams and Future Research Directions Abacus (IF 2.06) Pub Date : 2021-07-08 Guilherme Belloque, Martina K Linnenluecke, Mauricio Marrone, Abhay K Singh, Rui Xue
This article offers a systematic literature review and a bibliometric analysis of articles published over the history of the journal Abacus and marks its 55th anniversary. The article draws on the latest available bibliometric tools to provide a citation map, burstiness analysis, and further visualization using R Bibliometrix, highlighting highly cited articles and their interrelations across different
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Mandatory Environmental Reporting in Australia: An In-depth Analysis of Quantity and Quality Abacus (IF 2.06) Pub Date : 2021-06-21 Hao Yang, Laura Le Luo, Asit Bhattacharyya
This study contributes to the debate on the effectiveness of mandatory environmental reporting regulation in the Australian context. Our longitudinal in-depth quantitative and qualitative analysis evaluates the changes in compliance with Australian mandatory environmental reporting regulation (the Corporations Act, s. 299(1)(f)) of Australian listed companies, as well as their changes in reporting
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The Funding of Higher Education: An Empirical Examination of the Cost of Education in Business Schools Abacus (IF 2.06) Pub Date : 2021-06-10 Keith A. Houghton, Nancy Bagranoff, Christine Jubb
In late 2020, Australian university funding was profoundly changed by the Higher Education Support Amendment (Job-Ready Graduates and Supporting Regional and Remote Students) Act (hereafter ‘the Act’). The Act is based on separate funding of education and research and relies heavily on estimates of education costs that are controversial. The Act increased tuition fees for domestic business students
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Recent UK Central Government Accounting Reforms: Claimed Benefits and Experienced Outcomes Abacus (IF 2.06) Pub Date : 2021-05-07 Elaine Stewart, Ciaran Connolly
Focusing on the four most recent and highly publicized accounting reforms in UK central government, and utilizing discourse analysis of official publications, together with semi-structured interviews, this paper examines the basis on which these four reforms were introduced, the extent to which they are considered appropriate, and the reasons for the persistence of new public management (NPM)-inspired
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Signalling in Initial Coin Offerings: The Key Role of Entrepreneurs’ Self-efficacy and Media Presence Abacus (IF 2.06) Pub Date : 2021-05-04 Daniel Czaja, Florian Röder
By analyzing data of more than 1,000 initial coin offerings (ICOs) obtained from seven different ICO information platforms, we investigate the effectiveness of signals used by entrepreneurs to foster ICO funding success. In particular, we examine the effectiveness of venture quality (human capital), level of uncertainty (entrepreneurs’ self-efficacy and ambiguity reduction), and level of familiarity
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Re-orienting the Statement of Cash Flows Around Cash Flows to Equity Holders Abacus (IF 2.06) Pub Date : 2021-04-29 ILIA D. Dichev
This paper argues that the Statement of Cash Flows should be re-oriented around the concept of Cash Flows to Equity Holders. This re-orientation seems attractive for conceptual and internal consistency reasons. The Income Statement and the Balance Sheet are already oriented around reporting the residual claim of equity holders. Thus, re-orienting the Statement of Cash Flows around Cash Flows to Equity
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The Effect of Auditor Style on Reporting Quality: Evidence from Germany Abacus (IF 2.06) Pub Date : 2021-03-07 Vlad‐Andrei Porumb, Abe De Jong, Carel Huijgen, Teye Marra, Jan Van Dalen
This paper examines whether the ‘style’ of individual auditors influences financial reporting quality in Germany. Audit quality in Germany should be uniformly high, because of strong reputational needs, strict controls on operating procedures, and quality enforcement mechanisms. An audit partner's style should not affect this quality level. However, our results do not support this expectation. Exploiting
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Stock and Bond Return Comovement as a Different Way to Assess Information Content: The Case of Debt Covenant Violation Disclosures Abacus (IF 2.06) Pub Date : 2021-03-02 Paul A. Griffin, David H. Lont, Kurt Purdon
We propose a supplementary way to assess the information content of a financial statement disclosure based on the comovement of asset returns in different markets in response to information that has price implications for both. The influence of a signal that strongly influences at least two asset markets measures a dimension of information content less clearly reflected in single‐market responses.
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The Life and Works of Luca Pacioli (1446/7–1517), Humanist Educator Abacus (IF 2.06) Pub Date : 2021-02-24 Alan Sangster
Accounting has few heroes, but one that most acknowledge as worthy of that accolade is Luca Pacioli, the man who published the first printed exposition of double entry bookkeeping in 1494. This was the publication that led to the development of the accounting systems we use today. However, if we consider our literature on Pacioli, it is found to be not just confusing and contradictory, but undecided
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CEO Network Centrality and the Likelihood of Financial Reporting Fraud Abacus (IF 2.06) Pub Date : 2021-03-16 Salim Chahine, Yiwei Fang, Iftekhar Hasan, Mohamad Mazboudi
This paper investigates the association between CEO's relative position in the social network and the likelihood of being involved in corporate fraud. Tracing a large sample of US publicly listed firms, we find that CEO network centrality is inversely related to the likelihood of fraudulent financial reporting. We also document a significant spillover effect of financial reporting behaviour from the