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Investment centre manager's multiperiod fairness perceptions and intertemporal dependency Accounting & Finance (IF 2.473) Pub Date : 2024-03-08 Hiroyuki Selmes‐Suzuki
This paper explores the motivation of investment centre managers when their investment centre's performance is affected by decisions made by their predecessor. Through a qualitative case study of a Japanese manufacturer, the effectiveness of conventional remedies for motivational issues and further motivational issues caused by the same remedies, as identified in the extant literature, are examined
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Comments on Exposure Draft for Proposed ISSA 5000, sustainability assurance engagements by the Auditing and Assurance Standards Committee of AFAANZ Accounting & Finance (IF 2.473) Pub Date : 2024-03-06 David Hay, Noel Harding, Pallab Biswas, Chris Gan, Irene Qingling Ge, Linh Ho, Dinithi Ranasinghe, Harj Singh, Nigar Sultana, Shan Zhou
The Exposure Draft for Proposed International Standard on Sustainability Assurance (ISSA) 5000 has been issued by the International Auditing and Assurance Standards Board (IAASB) because there is increasing demand by stakeholders for assurance of sustainability information. Our recommendations include: (i) a more flexible approach to ethics and quality management instead of the requirements for standards
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Friendly boards and capital allocation efficiency Accounting & Finance (IF 2.473) Pub Date : 2024-03-02 Avishek Bhandari, Md Nazmul Hasan Bhuyan, Meena Subedi
This study examines the effect of friendly boards on capital allocation efficiency. We provide evidence that firms with friendly boards have a positive and statistically significant effect on capital allocation inefficiency. We find our results robust to different measures of friendly boards and capital allocation inefficiency, alternative model specifications, omitted variable bias, self‐selection
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The spillover effects of managers' evasiveness: Evidence from earnings communication conferences Accounting & Finance (IF 2.473) Pub Date : 2024-02-27 Baochen Yang, Xiaoning Ren, Yifang Liu
We investigate how managers' evasiveness affects peer firms' stock returns. Managers' evasiveness is measured by the degree of managers' irrelevant answers and non‐answers during earnings communication conferences. Our results show that peer firms' investors react negatively to managers' evasiveness. Moreover, we find that the spillover effects are stronger for peer firms with lower information transparency
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Earnings management in the post‐IPO years and their impact on the long‐run stock performance of foreign versus domestic IPO firms Accounting & Finance (IF 2.473) Pub Date : 2024-02-27 Janto Haman, Wei Lu, Dharmendra Naidu
Using a matched sample of foreign and domestic IPO firm listings on US stock exchanges, we find that foreign IPO firms are associated with significantly higher upward earnings management via discretionary (abnormal) long‐term accruals in the first 2 years post‐IPO year, and lower long‐run stock returns in the 3 years post‐listing, compared to US domestic IPO firms. Our results also show that the lower
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Revisiting the concept of the public interest in accounting: A stakeholder analysis Accounting & Finance (IF 2.473) Pub Date : 2024-02-15 Steven Dellaportas, Sophia Ji, Pavithra Siriwardhane, Dudu Luo
This study contributes to the discussion on the meaning and operation of the public interest. The all-inclusive perspective in defining the public interest adopted by IFAC, was criticised by stakeholders, predominantly professional bodies, for being broad and impractical. IFAC responded by proposing a process-oriented approach to simplify the definition and assessment of public interest policies and
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The impact of the organisational structure of tax authorities on tax and accounting fraud Accounting & Finance (IF 2.473) Pub Date : 2024-02-09 Senlin Miao, Fenghua Wen
Using tax centralisation reform enacted to eliminate decentralised tax authorities, we find firms have lower probabilities of tax and accounting fraud since its implementation. Our analysis shows the negative impact of the reform on tax and accounting fraud becomes stronger among firms with weaker tax enforcement, indicating that the reform plays a corporate governance role through strengthening tax
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The effect of corporate Twitter, Instagram and YouTube activity on investor attention and market liquidity Accounting & Finance (IF 2.473) Pub Date : 2024-01-22 Steven Crawford, Bumjoon Kim, Minjae Koo, Thien Le
Using daily-level data on corporate social media activity, we show that investor attention generally increases when firms post on Twitter, Instagram and YouTube and that the effect is stronger during earnings announcement periods. We find that stock market liquidity improves when firms post on social media, but the effects are the most consistent for Twitter. Finally, we document that when firms miss
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Corporate non-financial misconduct and accounting conservatism Accounting & Finance (IF 2.473) Pub Date : 2024-01-22 Yinan Yang, Wei Liu
This study shows that shareholders demand a higher level of conservatism when the firm commits non-financial misconduct. This positive relationship between corporate non-financial misconduct and accounting conservatism is more pronounced for firms with higher information asymmetry, worse financial conditions and greater monitoring by shareholders. Further analyses reveal that corporate non-financial
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Performance evaluation of academics: A social influence theory perspective Accounting & Finance (IF 2.473) Pub Date : 2024-01-18 Ehtasham Ghauri, Ralph Adler
This study examines the associations between academics' perceptions of their institutions' performance management systems, and in particular their performance evaluation, and academics' attitudes and behaviours. Responses from over 1000 New Zealand academics reveal that those who perceive their performance evaluation as outcomes-focused and process-focused are more likely to exhibit compliance-based
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Do innovator CEOs matter in IPOs? Accounting & Finance (IF 2.473) Pub Date : 2024-01-13 Zhilu Lin, Wentao Wu, Suyan Zheng
This paper examines the impact of innovator CEOs on their firms' IPO underpricing, long-run performance and post-IPO innovation. Firstly, we find that IPO firms led by innovator CEOs experience lower first-day returns (indicating lower IPO underpricing). This phenomenon can be attributed to a CEO's innovative ability, as it plays a pivotal role in mitigating information asymmetry within the IPO market
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Exit as governance: The effect of stock liquidity on firm productivity Accounting & Finance (IF 2.473) Pub Date : 2024-01-10 Tianyu Bai, Zhongfei Li
This study examines the effect of stock liquidity on firm productivity. Our findings indicate that stock liquidity positively affects firm productivity. Our study provides several pieces of evidence to show that stock liquidity enhances firm productivity through facilitation of corporate governance by shareholders and stock price efficiency. Additionally, we confirm that the impact of stock liquidity
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Influence of the cash conversion cycle on firm's financial performance: Evidence from publicly traded firms in the Latin American context Accounting & Finance (IF 2.473) Pub Date : 2024-01-10 Bruno Figlioli, Rafael Moreira Antônio, Rafael Confetti Gatsios, Fabiano Guasti Lima
This study investigates the relationship between the cash conversion cycle (CCC) and the financial and market performances of publicly traded” firms in six Latin American (LatAm) countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The analysis covers the period from 2000 to 2018. The results indicate that increases in CCC negatively impact the generation of operating cash flows and long-term
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Transparency or ambiguity? Voluntary IFRS adoption and earnings management in Japan Accounting & Finance (IF 2.473) Pub Date : 2024-01-10 Yosuke Tohara
This study examines the mechanism of voluntary IFRS adoption on earnings management in Japan. Limited research clarifies how IFRS adoption influences earnings management. Using data from listed firms between 2011 and 2018, the multivariate regression results suggest that voluntary IFRS adoption in Japan increases the extent of discretionary accruals. Furthermore, the relation becomes more pronounced
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Labelling in financial reporting: An examination of “other comprehensive income” and non-professional investors' judgements Accounting & Finance (IF 2.473) Pub Date : 2024-01-08 Daifei (Troy) Yao, Xin Qu, Tyge-F. Kummer
Other comprehensive income (OCI) is often confusing for financial statement users and the International Accounting Standards Board has proposed new labelling to improve its presentation. Using an experimental method, we find that OCI labelling influences non-professional investors' evaluation and judgements on financial performance. Non-professional investors place greater weight on OCI information
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The influence of organisational learning capability on the organisational use of SMA practices: The mediating role of employee creativity and empowerment Accounting & Finance (IF 2.473) Pub Date : 2024-01-05 Kevin Baird, Sophia Su, Nuraddeen Nuhu
This study extends the strategic management accounting (SMA) and organisational learning literature by examining the role of organisational learning capability in facilitating the organisational use of SMA practices. Further, we consider the role of two employee behavioural factors – employee empowerment of SMA practices and employee creativity – in mediating this relationship. Data was collected from
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Economic consequences of new accounting standards in UK charities Accounting & Finance (IF 2.473) Pub Date : 2023-12-28 Arung Gihna Mayapada, Pallab Kumar Biswas, Helen Roberts
This study examines the effect of changes to the 2015 UK charities accounting standards on financial reporting timeliness and audit fees. Utilising 62,785 observations (9351 charities) from 2010 to 2017, we report a significant decrease in financial reporting timeliness following the new accounting standards regime. The decrease is more pronounced in charities with audited financial statements because
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Competition, liquidity creation and bank stability Accounting & Finance (IF 2.473) Pub Date : 2023-12-28 Vuong Thao Tran, Hoa Nguyen
We examine the conditioning role of competition in affecting the relationship between liquidity creation and bank risk in a sample of US banks from 2001 to 2016. We find aggregate evidence that competition is related to bank fragility as proxied by the Z-score both directly and indirectly through its interaction with liquidity creation. However, when the ex-ante level of liquidity creation is low and/or
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Heterogeneity in needs and purchases in Australian retirees Accounting & Finance (IF 2.473) Pub Date : 2023-12-20 Anthony Asher, Tim Boonen, Le Chang, Gaurav Khemka, Steven Roberts
To plan for retirement, it is important to understand how needs and purchases may change. We use data from a survey of elderly Australians to see how needs and purchases changed in different categories of goods and services. We looked especially at those who had experienced financial or health shocks. Our analysis shows variation in people's experiences, particularly for health costs, which increase
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Emotions and inventor productivity: Evidence from terrorist attacks Accounting & Finance (IF 2.473) Pub Date : 2023-12-20 Yue Luo, Yangyang Chen, Ji-Chai Lin
We examine whether the emotional shocks associated with terrorist attacks affect local inventors' productivity. We find that high-fatality attacks make inventors less innovative, and low-fatality attacks make them more innovative. Inventors living in high risk-taking environments have greater increase in productivity following low-fatality attacks, while less decrease in productivity following high-fatality
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On the state of financial research: Is it in a silo? Accounting & Finance (IF 2.473) Pub Date : 2023-12-20 A. S. M. Sohel Azad, Abdelaziz Chazi, Ashraf Khallaf, Zaher Zantout
This study on the state of financial research analysed the citations made in leading business and economics journals in the period 1997–2020. It found that, contrary to other business fields, and despite citing more references, finance researchers overlooked the fruitful mode of knowledge creation by integrating advances from disciplines other than economics. Additionally, citations in economics became
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Management accountants with a growth mindset and changes in the design of costing systems: The role of organisational culture Accounting & Finance (IF 2.473) Pub Date : 2023-12-13 Odysseas Pavlatos, Marilou Ioakimidis
Based on implicit person theories, this paper investigates the relationship between the growth mindset of management accountants and changes in the design of costing systems, as well as the role that organisational culture plays in this relationship. Using survey data from 146 management accountants of manufacturing companies, we find that management accountants who have a growth mindset increase the
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Corporate transparency among government suppliers: Implications for firm valuation Accounting & Finance (IF 2.473) Pub Date : 2023-12-05 Omar A. Esqueda, Thanh N. Ngo
Corporate transparency has a positive impact on firm valuation, as predicted by agency theory; however, the transparency of strategically important government suppliers is not rewarded with higher valuations as the market expects politically sensitive firms to be inherently more transparent. The association between transparency and valuation among politically sensitive firms is consistent with the
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Optimal capital structure with supplier market power Accounting & Finance (IF 2.473) Pub Date : 2023-12-05 Xue Cui, Sudipto Sarkar, Chuanqian Zhang
We use a real-option model to study the effect of input supplier's market power on a firm's capital structure, and identify the Nash equilibrium outcome (firm's investment and financing policies and its supplier's pricing policy). When its supplier has market power, the firm will reduce leverage ratio and delay investment. This can help explain why observed leverage ratios are lower than in traditional
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Stock liquidity and tone of press releases Accounting & Finance (IF 2.473) Pub Date : 2023-11-27 Rong Gong
This paper presents evidence that higher stock liquidity makes firms increase tone of press releases. I find that firms with higher stock liquidity have higher tone in press releases, relative to the tone of news initiated by media, than firms with lower stock liquidity. This relation is stronger for firms with greater short-term pressure, that is, with greater transient institutional ownership, greater
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Stock market liquidity during crisis periods: Australian evidence Accounting & Finance (IF 2.473) Pub Date : 2023-11-27 Lee A. Smales
Liquidity is an important characteristic of financial markets, affecting portfolio decisions and priced risk. During periods of market turmoil, such as occurs during financial crisis, investors have an elevated need for cash and so understanding how liquidity differs during those periods is important. We examine how stock market liquidity was impacted by two crises with distinct origins, the global
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Covenant violation and operational efficiency Accounting & Finance (IF 2.473) Pub Date : 2023-11-27 Hui Liang James, Hongxia Wang, Zhimin Wang
We examine the impact of covenant violation on corporate operational efficiency. Using an aggregate measure of operational efficiency developed by Demerjian et al. (Management Science, 58, 2012, 1229–1248), we provide strong empirical evidence that covenant violations hinder firms from achieving operational efficiency. Our finding is robust to alternative definitions of operational efficiency and various
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The new audit report with key audit matters: Lessons from Thailand's first implementation Accounting & Finance (IF 2.473) Pub Date : 2023-11-21 Weerapong Kitiwong, Erboon Ekasingh, Naruanard Sarapaivanich
Using a mixed method research design, this study is the first to provide comprehensive evidence of the impacts of Thailand's first implementation of the new audit report with key audit matters (KAMs), which took place in 2016. Survey evidence shows that the new audit report improves the informative value and effectively narrows the deficient-standards and deficient-performance gaps. Nonetheless, financial
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Proprietary information and the choice between public and private debt Accounting & Finance (IF 2.473) Pub Date : 2023-11-20 Kee-Hong Bae, Yunhao Dai, Weiqiang Tan, Wenming Wang
The high costs of disclosing confidential information lead firms with proprietary information to prefer private debt (bank loan) to public debt (corporate bond). We provide empirical evidence supporting this proposition using the staggered adoption of the inevitable disclosure doctrine (IDD) by US state courts that exogenously increased the value of proprietary information. The focal firms are significantly
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I'd do anything, but I won't do that: Job crafting in the management accounting profession Accounting & Finance (IF 2.473) Pub Date : 2023-11-20 Kate E. Horton, Claudio de Araujo Wanderley
We examine management accountants' attempts to customise their roles through job crafting behaviour. In a field survey of 284 professional management accountants, we show that role identity conflicts are associated with attempts to narrow/sideline tasks and relationships in order to achieve greater fit. We also identify two key moderators of this behaviour, namely job discretion and business involvement
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Cryptocurrency as an alternative inflation hedge? Accounting & Finance (IF 2.473) Pub Date : 2023-11-16 L. A. Smales
We examine the association of Bitcoin, and other cryptocurrency, returns with changes in inflation expectations, and form a comparison with gold, a traditional inflation hedge. We control for uncertainty in economic policy, cryptocurrency, and financial markets, and show that cryptocurrency returns are positively related to changes in US inflation expectations only for a limited set of circumstances
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Affect and reason in uncertain accounting settings: The case of capital investment appraisal Accounting & Finance (IF 2.473) Pub Date : 2023-11-05 Paul Andon, Jane Baxter, Wai Fong Chua
Affect is generally characterised as distinct from, and detrimental to, reason in investment appraisal. This paper, in contrast, illustrates that affect is integral to reasoning, particularly when uncertainty disturbs investment appraisal. Investment appraisals produce uncertain projections about the future, which generate discomfort. This causes actors to undertake adaptive activities to craft calculations
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Taking the hunch out of the crunch: A framework to improve variable selection in models to detect financial statement fraud Accounting & Finance (IF 2.473) Pub Date : 2023-10-27 Adrian Gepp, Kuldeep Kumar, Sukanto Bhattacharya
Financial statement fraud is a costly problem for society. Detection models can help, but a framework to guide variable selection for such models is lacking. A novel Fraud Detection Triangle (FDT) framework is proposed specifically for this purpose. Extending the well-known Fraud Triangle, the FDT framework can facilitate improved detection models. Using Benford's law, we demonstrate the posited framework's
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Corporate sexual orientation equality and carbon emission Accounting & Finance (IF 2.473) Pub Date : 2023-10-27 Ashrafee Tanvir Hossain, Amir Hossain, Tom Cooper, Majidul Islam
Does a firm's tolerance and nurturing of its employees with different sexual orientations influence its long-term sustainability? Based on corporate sexual orientation equality (CSOE), we find that firms with higher CSOE ratings emit less greenhouse gases (GHGs) that thereby ensure long-term sustainability. In addition, we report that the CSOE–GHG relationship is stronger for firms with less agency
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Let others know who your friends are: The effect of collaborator disclosure on crowdfunding performance Accounting & Finance (IF 2.473) Pub Date : 2023-10-25 Feng Chen, Song Chen, Jian Ding, Ercheng Shan, Pu Zhao
Our analysis of 141,848 campaigns on the Kickstarter crowdfunding platform suggests that collaborator disclosure has a substantial positive impact on crowdfunding performance. This finding is consistently supported by a series of robustness tests. Collaborator disclosure alleviates backers' concerns about campaign risk, the competence of the fundraiser, and the fundraiser's lack of experience. Our
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Investor attention and the predictability of the volatility of CNY-CNH spreads: Evidence from a GARCH-MIDAS model Accounting & Finance (IF 2.473) Pub Date : 2023-10-27 Xiaoping Li, Zhipeng Zhang, Junyu Pan, Jihong Duan
Combining the four aspects of self-, macro, environmental, and policy attention, using backward-looking rolling regressions, we construct novel international and domestic investor-attention indices using the search volume index from Google Trends together with Baidu Index to investigate how investor attention affects the CNY-CNH spreads volatility. Moreover, comparing different GARCH-MIDAS models and
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Motivation and hygiene factors for curriculum (re)development and the embedding of technology in accounting programmes Accounting & Finance (IF 2.473) Pub Date : 2023-10-20 Esin Ozdil, Amrinder Khosa, Meredith Tharapos, Steven Burch
Using Herzberg's two-factor theory, this paper examines the hygiene and motivation factors that drive (re)development in accounting higher education programmes. Interviews with accounting educators and discipline leaders demonstrate a range of factors at play in the (re)development of accounting programmes in pursuit of embedding relevant technologies and contemporary business acumen into the accounting
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Aligning disclosure requirements for managerial assessments of going concern risk: Initial evidence from New Zealand Accounting & Finance (IF 2.473) Pub Date : 2023-10-20 Matthew Grosse, Tom Scott, Zeting Zang
This study examines the impact of the Financial Reporting Standard No. 44 New Zealand Additional Disclosures (FRS 44) amendment issued by the New Zealand Accounting Standards Board (NZASB). The FRS 44 amendment aligned disclosure requirements for managerial assessments of going concern risk in financial reports with auditing standards for periods ending on or after 30 September 2020. We first present
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‘Know when to fold 'em’: Policy uncertainty and acquisition abandonment Accounting & Finance (IF 2.473) Pub Date : 2023-10-15 Andrew Ferguson, Cecilia Wei Hu, Peter Lam
This study investigates how policy uncertainty affects the acquisition process during the post-announcement period. Utilising a sample of Australian mining project acquisitions over 1998–2017, we find that rising policy uncertainty after initial acquisition announcements is associated with delays in deal completion. In addition, prolonged high policy uncertainty plays an important role in triggering
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Self-sacrifice or empty symbolism: A study of $1 CEOs Accounting & Finance (IF 2.473) Pub Date : 2023-10-10 Prabashi Dharmasiri, Mukesh Garg, Anthony Ng, Supardi Supardi
We examine whether CEOs' voluntary acceptance of a $1 salary is a credible signal of sacrifice. We find that firms with $1 salary CEOs are: (i) more likely to be associated with income-increasing accrual-based earnings management; (ii) less likely to use real earnings management; and (iii) more likely to engage in corporate tax avoidance. Our results indicate that this performance enhancement is driven
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Do ties still bind? Analyst behaviour after financial restatements Accounting & Finance (IF 2.473) Pub Date : 2023-10-05 Yi (Ava) Wu, Yu Flora Kuang, Gladys Lee, Kerui Zhai
We find that, compared to non-connected analysts, analysts with professional connections to a coverage firm (i.e., connected analysts) are more likely to continue covering the firm after it issues a restatement. Furthermore, connected analysts are more likely to issue pessimistic earnings forecasts and to downgrade stock recommendations for the firm after its financial restatement. Our results also
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Can work integrated learning deliver employability? International post-graduate accounting students Accounting & Finance (IF 2.473) Pub Date : 2023-09-30 Vanessa Crawford, Mark Brimble, Brett Freudenberg
International students studying a Master of Professional Accountancy (MPA), or equivalent postgraduate degree in accounting, in Australia were designed to fill the skills shortage gap for accountants, but employability rates appear low at 25% compared to 75% for domestic graduates. University work integrated learning (WIL) programs have been implemented to provide opportunities to increase employability
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Do rights matter? An intraday analysis of rights issues in Australia Accounting & Finance (IF 2.473) Pub Date : 2023-09-28 Jozef Drienko, Stephen J. Sault, Wong Wai Han
We examine intraday abnormal returns associated with rights issue announcements in the Australian equity market over the period January 2000 to December 2022. Consistent with prior studies, we find significant abnormal returns ranging from −2.9% to −2.7% on the event day. We provide the first evidence on intraday price reactions pertaining to rights issues in Australia. Within 15 min of an announcement
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Why does operating profitability predict returns? New evidence on risk versus mispricing explanations Accounting & Finance (IF 2.473) Pub Date : 2023-09-19 Anwer Ahmed, Michael Neel, Irfan Safdar
This study develops new evidence on risk versus mispricing explanations of the well-known profitability premium. First, we examine whether exposure to expected downside risk is a plausible explanation. We find that high profitability is associated with both lower ex ante and ex post probabilities of future price crashes. Thus, less profitable firms exhibit greater downside risk than highly profitable
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Liquidity ratios and corporate failures Accounting & Finance (IF 2.473) Pub Date : 2023-09-13 Ken Li
One of the most widespread claims in financial statement analysis is that liquidity ratios are useful for predicting failures. However, academic research has found surprisingly little empirical support for this claim. Using logistic regression splines, a non-parametric method, this paper finds that the relation between the current ratio and failures differs significantly depending on the level of the
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Accounting firm office size and tax aggressiveness Accounting & Finance (IF 2.473) Pub Date : 2023-09-13 Yi (Dale) Fu, Youngdeok Lim, Elizabeth Carson
This paper empirically investigates the association between the size of accounting firm offices and corporate tax aggressiveness. We find that clients audited by large offices have lower levels of corporate tax aggressiveness. We also find that such a negative relation is less pronounced when an accounting firm office provides tax services or when the office possesses tax-specific industry expertise
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Executives' horizon and trade credit Accounting & Finance (IF 2.473) Pub Date : 2023-09-07 Md. Mahmudul Hasan, Md. Safayat Hossain, David R. Tree
Using executives' decision horizon as a measure of internal governance, this study examines the association between customer's internal governance and supplier's extension of trade credit. Suppliers may extend more trade credit to customers with strong internal governance because of their lower operational risk, higher firm performance, and better information environment. However, firms with better
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Are accounting standards understandable? Accounting & Finance (IF 2.473) Pub Date : 2023-09-07 Bryan Howieson, Janice Loftus, Sabine Schührer
There is concern that accounting standards are difficult to understand by those who use them. We investigate factors that enhance and inhibit the ability of the standards' users to comprehend their meaning and requirements. Readability statistics reveal that Australian accounting standards are difficult or very difficult to read. Interviews with experienced financial statement preparers and auditors
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An examination of self-efficacy and sense of belonging on accounting student achievement Accounting & Finance (IF 2.473) Pub Date : 2023-09-04 Nicola Beatson, Paul de Lange, Meredith Tharapos, Brendan O'Connell, Jeffrey Smith, Stephen Scott, Richard Greatbanks
Student success is impacted by many factors, both individual and institutional. We examine Tinto's (Journal of College Student Retention: Research, Theory & Practice, 2017, 19, 254) theoretical model of achievement by surveying students enrolled in an introductory accounting subject (n = 132) at a New Zealand university twice and relating their responses to their levels of achievement in the subject
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The interplay of episodic power in enabling and coercive budgetary designs in universities: A case study Accounting & Finance (IF 2.473) Pub Date : 2023-08-30 Chaturika Seneviratne, Zahirul Hoque
This paper explores how power exercised at the individual level within existing power relations in a university influences its enabling and coercive budgeting forms. A qualitative case study in a Sri Lankan university involved interviews and document analysis. Findings demonstrate the dominance of coercive controls over enabling controls in the university due to the power and influence of dominant
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Group budget-based bonus scheme and group cooperation: The role of social value orientation, goal alignment, and group identity Accounting & Finance (IF 2.473) Pub Date : 2023-08-28 Andson Braga Aguiar, Mamadou Dieng, Reinaldo Guerreiro
In a workgroup setting, we use a quasi-experiment to examine whether and why proself rather than prosocial employees benefit more from high group identity to foster group cooperation. We validate the goal-transformation hypothesis that proself rather than prosocial employees benefit more from high group identity. Consistent with the goal-expectation hypothesis, we show that goal alignment explains
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CFO facial beauty and bank loan contracting Accounting & Finance (IF 2.473) Pub Date : 2023-08-22 Karel Hrazdil, Jiyuan Li, Gerald Lobo, Ray Zhang
We examine whether the facial attractiveness of borrower firms' chief financial officers (CFOs) influences bank loan contracting terms. Using a machine learning-based algorithm to measure facial attractiveness, we document that firms led by CFOs with greater facial attractiveness receive more favourable loan contracts from their banks. We further show that the relation between CFO facial attractiveness
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Investigating performance implications of intra-family ownership successions: Equity transfers with versus without debt creation Accounting & Finance (IF 2.473) Pub Date : 2023-08-21 Ellen Janssen, Sigrid Vandemaele, Wim Voordeckers, Mark Vancauteren
We relate two routes of intra-family ownership succession (i.e., succession financed with versus without debt) to post-succession financial performance. Investigating a sample of 203 privately-held family businesses, our results show that the succession-induced performance paths of the two subgroups are significantly different. When debt is used to fund the intra-family share transfer, financial performance
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The disciplinary role of unsuccessful takeovers and changes in corporate governance Accounting & Finance (IF 2.473) Pub Date : 2023-08-21 Martin Bugeja, Yaowen Shan, Yanglan Zu
This study examines if unsuccessful takeovers trigger the replacement of directors and changes in other governance attributes and result in improvements in target firm performance. Using an Australian sample this study finds that following failed bids, target firms are more likely to remove directors and experience an increase in director ownership, board independence, and block ownership. In contrast
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The impact of post-retirement financial market participation on retirement income sufficiency in Australia Accounting & Finance (IF 2.473) Pub Date : 2023-08-18 Xiaobo Xu, Jiali Fang, Martin Young, Liping Zou
Using HILDA survey data, we document a strong positive relationship between post-retirement financial market participation and retiree income sufficiency in Australia. We find a 17% improvement in the income replacement ratio and a 3.26 times higher annuitised net wealth for financial market participants compared to non-participants. We further investigate how age, residence area, relationship status
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A study of cross-border profit shifting channels: Evidence from Australia Accounting & Finance (IF 2.473) Pub Date : 2023-08-17 Alfred Tran, Wanmeng Xu
We investigate two cross-border profit shifting channels used by foreign multinational enterprises (MNEs) in Australia and assess the effectiveness of the related measures adopted by the Australian Parliament to combat base erosion and profit shifting (BEPS). Overall, we find that Australian subsidiaries of foreign MNEs used tax-induced intra-group transfer pricing and, to a lesser extent, interest
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CEO narcissism and firm's cash conversion cycle: The moderating role of CEO's gender Accounting & Finance (IF 2.473) Pub Date : 2023-08-14 Heba F. Zaher, Gilberto Marquez-Illescas
This study investigates the effect of CEO narcissism on firm's cash conversion cycle (CCC), and how this influence is moderated by CEO gender. Based on a sample of 354 CEOs in 229 S&P 500 firms, our results indicate that firms led by more narcissistic CEOs tend to have a shorter CCC and this effect is weaker in companies led by a female CEO. Our additional analyses show that the effect of CEO narcissism
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CEO turnovers and capital structure persistence Accounting & Finance (IF 2.473) Pub Date : 2023-08-14 Viktoriya Staneva
Firm fixed effects in panel leverage regressions act as a noisy proxy for managerial effects that drive persistence in leverage. Firms that do not change their chief executive officer (CEO) for prolonged periods of time are more likely to keep debt ratios within a narrow bandwidth and to display persistent differences in their time-series averages for up to 20 years. A CEO turnover is associated with
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Do buy-side analysts inform sell-side analyst research? Accounting & Finance (IF 2.473) Pub Date : 2023-08-12 Gjergji Cici, Philip B. Shane, Yanhua Sunny Yang
This paper examines whether sell-side analysts' interactions with buy-side analysts influence the quality of sell-side research output. We hypothesise that these interactions offer the sell side a view of the buy side's private information, which enhances the quality of sell-side research. Our findings show that analyst earnings forecast accuracy improves with these interactions with diminishing returns
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Family ownership and speed of adjustment towards targeted capital structures: A study of ASEAN firms Accounting & Finance (IF 2.473) Pub Date : 2023-08-02 Lan Thi Mai Nguyen, Trang Khanh Tran, Cameron Truong
Utilising a sample of ASEAN firms, we examine the effects of family ownership on firms' speed of adjustment to targeted capital structure. We find that family firms adjust their capital structure more slowly than non-family firms. This is due to the higher costs of adjustment associated with high information asymmetry and agency conflicts between family owners and external investors. The effect of