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Climate change and the European banking sector: the effect of green technology adaptation and human capital Review of Accounting and Finance Pub Date : 2024-03-14 Ayesha Afzal, Jamila Abaidi Hasnaoui, Saba Firdousi, Ramsha Noor
Purpose Climate change poses effect on banking sector’s risks and profitability through adaptation of green technology. This study aims to incorporates green technology adaptation in three sectors: green banking, green entrepreneurial innovation (EI) and green human resource (HR), in a model of bank’s performance. And determines the impact of climate change on bank risk and profitability. Design/methodology/approach
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From performance to horizon: managements’ horizon and firms’ investment efficiency Review of Accounting and Finance Pub Date : 2024-03-01 Abongeh A. Tunyi, Geofry Areneke, Tanveer Hussain, Jacob Agyemang
Purpose This study proposes a novel measure for management’s horizon (short-termism or myopia vs long-termism or hyperopia) derived from easily obtainable firm-level accounting and stock market performance data. The authors use the measure to explore the impact of managements’ horizon on firms’ investment efficiency. Design/methodology/approach The authors rely on two commonly used but uncorrelated
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Influence of the financial shared service center on the quality of accounting information Review of Accounting and Finance Pub Date : 2024-02-12 Junchao Zhang
Purpose This research endeavors to assess the influence of financial shared service centers (FSSCs) on the quality of accounting information within China’s A-share listed companies. Using a multi-period difference-in-differences (DID) model, the study aims to empirically examine the correlation between the adoption of FSSCs and the quality of accounting information. Design/methodology/approach The
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Corporate social responsibility and credit rating: evidence from French companies Review of Accounting and Finance Pub Date : 2024-02-06 Sourour Ben Saad, Mhamed Laouiti, Aymen Ajina
Purpose This study aims to provide further insights into the connection between corporate social responsibility (CSR) and companies’ credit ratings, while also exploring the role of corporate governance as a moderating factor. The hypotheses for this relationship are rooted in both legitimacy and stakeholder theories. Design/methodology/approach Using a sample of French non-financial listed firms from
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The relationship between soft skills, stress and reduced audit quality practices Review of Accounting and Finance Pub Date : 2024-02-01 Antonio Samagaio, Paulo Morais Francisco, Teresa Felício
Purpose This study aims to identify the effect of soft skills as a driver of audit quality and their moderating role in the relationship between stress and the propensity for auditors to engage in reduced audit quality practices (RAQP). Design/methodology/approach This study uses a sample of 130 auditors, whose data were collected through an electronic questionnaire. The results were derived from the
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Corporate governance and green innovation: international evidence Review of Accounting and Finance Pub Date : 2024-01-08 Marcellin Makpotche, Kais Bouslah, Bouchra M’Zali
Purpose This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation. Design/methodology/approach The study is based on a sample of 3,896 firms from 2002 to 2021, covering 45 countries worldwide. The authors adopt Tobin’s Q model to conceptualize the relationship between corporate governance and investment in green research and
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Another look at the asymmetric relationship between stock returns and trading volume: evidence from the Markov-switching model Review of Accounting and Finance Pub Date : 2023-12-15 Mondher Bouattour, Anthony Miloudi
Purpose The purpose of this paper is to bridge the gap between the existing theoretical and empirical studies by examining the asymmetric return–volume relationship. Indeed, the authors aim to shed light on the return–volume linkages for French-listed small and medium-sized enterprises (SMEs) compared to blue chips across different market regimes. Design/methodology/approach This study includes both
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Do ESG ratings and COVID-19 severity score predict stock behavior and market perception? Evidence from emerging markets Review of Accounting and Finance Pub Date : 2023-12-04 Mai T. Said, Mona A. ElBannan
Purpose The purpose of this study is to examine the impact of firm environmental, social and governance (ESG) rating scores on market perception and stock behavior from 2017 to 2021 while controlling for COVID-19 severity score. Design/methodology/approach The authors used panel regression models with robust standard errors based on cross-country and cross-industry sample of 1,324 ESG firms from 25
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Corporate investment sensitivity to equity market misvaluation Review of Accounting and Finance Pub Date : 2023-12-01 Senda Mrad, Taher Hamza, Riadh Manita
Purpose The purpose of this paper is to investigate the effect of equity market misvaluation on manager behavior. Using a sample of 535 French-listed over 2000–2018, the authors analyze whether corporate investment decision is sensitive to equity market overvaluation. Design/methodology/approach The study adopts market-to-book (M/B) decomposition developed by Rhodes-Kropf and Viswanathan (2004, RKV)
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Early adopters of institutional creativity in integrated reporting Review of Accounting and Finance Pub Date : 2023-11-24 Ruchi Agarwal, Muhammad Atif
Purpose In the last two decades, risk reporting has followed a normative and calculative culture rather than the “materiality” of data. Although integrated reporting (IR) has become flooded with extra information, it does not adequately disseminate material information to stakeholders. In addition, the poor tone from the top diminishes creativity. This study aims to investigate how companies creatively
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The relative valuation of cash flow and current accruals affected by their extremity Review of Accounting and Finance Pub Date : 2023-11-20 Wael Mostafa, Rob Dixon
Purpose Recent studies on the securities market’s differential pricing of earnings components have shown that cash flow from operations is more highly valued than total accruals and that moderate cash flow from operations has higher valuation than extreme total accruals. An interesting question that follows is whether these findings hold regarding the differential valuations of cash flow and current
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The heterogeneous role of economic and financial uncertainty in green bond market efficiency Review of Accounting and Finance Pub Date : 2023-11-20 Ping Wei, Jingzi Zhou, Xiaohang Ren, Farhad Taghizadeh-Hesary
Purpose This paper aims to explore the quantile-specific short- and long-term effects of economic policy uncertainty (EPU) on the efficiency of the green bond market. Design/methodology/approach This study examines the long-term cointegration relationship and the short-term fluctuation relationship of EPU, WTI crude oil price (WTI) and European Union Allowances price (EUA) with the green bond market
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Intellectual capital efficiency, institutional ownership and cash holdings: a cross-country study Review of Accounting and Finance Pub Date : 2023-11-03 Tamanna Dalwai, Syeeda Shafiya Mohammadi, Elma Satrovic
Purpose This study aims to investigate the roles of intellectual capital efficiency and institutional ownership on cash holdings and their speed of adjustment. Design/methodology/approach Using a sample of 432 firm-year observations of tourism-listed companies, three measures of cash holdings are used as dependent variables and intellectual capital efficiency and institutional ownership as independent
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The impact of investor protection on stock market volatility Review of Accounting and Finance Pub Date : 2023-10-13 João Silva, Lígia Febra, Magali Costa
Purpose This study aims to advance knowledge on the direct impact of the investor’s protection level on the stock market volatility, that is, whether investor’s protection is an important stock market volatility determinant. Design/methodology/approach A panel data was estimated using a sample of 48 countries, from 2006 to 2018, totalizing 31,808 observations. To measure stock market volatility and
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Do CSR performance and reporting facilitate access to debt financing in emerging markets? The role of asset structure and firm performance Review of Accounting and Finance Pub Date : 2023-10-11 Ali Uyar, Ali Meftah Gerged, Cemil Kuzey, Abdullah S. Karaman
Purpose This study aims to guide firms in emerging markets on whether corporate social responsibility (CSR) engagement facilitates their access to debt with the moderation of asset structure and firm performance. Considering the moderating effect analysis, this study explores the substitutive or complementary effect of these two contingencies on CSR-oriented firms in accessing debt financing. Desi
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On performance drivers of European Fintechs around venture capital: exploring the role of founders’ experience Review of Accounting and Finance Pub Date : 2023-09-13 Aymen Turki, Robert Rieg
Purpose Many observers believe that industry experience of entrepreneurs drives successful new entrepreneurial firms. However, whenever it comes to disruptive digital ventures such as Financial Technologies (Fintechs), the picture may be different due to the cross-industry nature of digital firms. The purpose of this study is to disentangle the impacts of finance, banking and information technology
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Audit quality, value relevance, integrated reporting and the moderating role of business ethics: evidence from European ESG firms Review of Accounting and Finance Pub Date : 2023-09-05 Abir Hichri
Purpose This study aims to investigate the relationship between audit quality and value relevance and subsequently ascertain the moderating effect of business ethics on integrated reporting (IR)–value relevance. Design/methodology/approach This study applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries to analyse data of 510 companies belonging
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Audit quality, firm performance and risk: evidence from Greece Review of Accounting and Finance Pub Date : 2023-08-14 Gerasimos Rompotis, Dimitrios Balios
Purpose The purpose of this paper is to accentuate whether audit quality or other variables matter for the performance of companies in Greece. Design/methodology/approach This study examines the effect of audit quality on firm performance using data of 75 companies listed in the Athens Exchange in Greece and covering the period 2018–2021. Panel data analysis is applied. The independent variables are
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Dividend policies and stock volatility-empirical evidence from Middle Eastern stock markets Review of Accounting and Finance Pub Date : 2023-08-10 Ali Murad Syed, Hana Saeed Bawazir, Ibrahim Tawfeeq AlSidrah
Purpose The study aims to explore the relation between dividend policy of any company and its stock volatility. Design/methodology/approach Companies listed on six GCC stock markets are used in the analysis and the data ranges from 2006 to 2020. Fixed effect and random effect panel data analysis is used to explore the association between stock volatility and the dividend policies. Findings A significant
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Liquidity, interbank network topology and bank capital Review of Accounting and Finance Pub Date : 2023-07-27 Aref Mahdavi Ardekani
Purpose While previous literature has emphasized the causal relationship from liquidity to capital, the impact of interbank network characteristics on this relationship remains unclear. By applying the interbank network simulation, this paper aims to examine whether the causal relationship between capital and liquidity is influenced by bank positions in the interbank network. Design/methodology/approach
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Do firms manage earnings after a downgrade in their credit rating? Review of Accounting and Finance Pub Date : 2023-07-24 Hardjo Koerniadi
Purpose This paper aims to examine whether firms engage in earnings management immediately after experiencing a downgrade in their credit rating. Design/methodology/approach This paper uses fixed-effects regression models to examine real- and accrual-based earnings management after firms experience a downgrade in their credit rating. Findings Inconsistent with prior studies where firms are reported
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On the foundations of firm climate risk exposure Review of Accounting and Finance Pub Date : 2023-07-24 Mohamad H. Shahrour, Mohamed Arouri, Ryan Lemand
Purpose This study aims to address gaps and limitations in the literature regarding firms’ exposure to climate risks. It reviews existing research, proposes new theoretical frameworks and provides directions for future studies. Design/methodology/approach A bibliometric and systematic approach is used to review the literature on firms’ climate risk exposure. The study examines current theoretical frameworks
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The impact of feminism on bank performance: the case of Vietnam Review of Accounting and Finance Pub Date : 2023-07-20 Yen Thi Nguyen, Cuong Thanh Dang, Hang Thi Trinh
Purpose This study aims to evaluate the impact of board characteristics on bank performance at the commercial bank in Vietnam. Design/methodology/approach By running the pool OLS, fixed-effect and random-effect models with a panel data set of 294 observations from 2008 to 2021, the authors have examined determinants of bank performance. Findings The research results show that bank size, governance
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Does the influence of competition and compensation on hospital quality vary with ownership type? Review of Accounting and Finance Pub Date : 2023-07-18 Linda H. Chen, Leslie Eldenburg, Theodore H. Goodman
Purpose The purpose of this study is to investigate how two types of drivers, namely, executive compensation and market competition, can affect hospital quality in the USA. Recently, patients, insurers and regulators have increasingly focused on hospital quality. Understanding the interplay of incentives in this industry is important because in 2019, hospital treatment contributed $1.161bn to health-care
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Board attributes and corporate social responsibility disclosure quality based on information typology Review of Accounting and Finance Pub Date : 2023-07-10 Dineshwar Ramdhony, Mohamed Omran, Khaled Hussainey
Purpose This paper aims to answer whether board attributes affect corporate social responsibility disclosure quality (CSRDQ) and whether these findings are sensitive to CSRDQ measurement. Design/methodology/approach The authors use the content analysis method to measure CSRDQ in annual report narratives of 41 Mauritian-listed companies for 2008–2019. System-generalized method of moments is used to
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Audit(or) type and audit quality in emerging markets: evidence from explicit vs. implicit restatements Review of Accounting and Finance Pub Date : 2023-07-07 Mohamed M. Eldyasty, Ahmed A. Elamer
Purpose This paper aims to examine the link between audit(or) type and restatements in Egypt, a complex and multifaceted auditing market. The usual big 4 versus non-big 4 comparison is insufficient as Egypt has a unique mix of private audit firms, one governmental agency (Accountability State Authority) and mandatory/nonmandatory audit services, including single, joint and dual audits. Design/methodology/approach
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The influence of corona pandemic on stock returns of companies listed on the Palestine Stock Exchange Review of Accounting and Finance Pub Date : 2023-07-04 Nemer Badwan, Azmi Wasfi Awad
Purpose This study aims to explore and verify the influence of the corona pandemic on the stock returns of the Palestinian companies listed on the Palestine Exchange during the period 2020–2021. Design/methodology/approach The research makes use of secondary financial data from 52 companies in the industrial, investment, services, banking and insurance sectors. Many financial ratios are calculated
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Investor’s values and investment decision towards ESG stocks Review of Accounting and Finance Pub Date : 2023-06-20 Rajdeep Kumar Raut, Niranjan Shastri, Akshay Kumar Mishra, Aviral Kumar Tiwari
Purpose This study aims to investigate factors that influence the attitudes and intentions of investors towards environmental, social and governance (ESG) stocks in the presence of perceived risk as a moderator. Design/methodology/approach Data was collected through an online survey method from 341 investors with more than three years of investing experience. Smart PLS was used to analyse the data
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Bank diversification and earnings management: the moderating effect of female directors Review of Accounting and Finance Pub Date : 2023-06-13 Nozha Merzki, Mouna Ben Rejeb
Purpose This paper aims to investigate the effect of banking activities diversification on earnings management practices and the effect of female directors on this relationship. Design/methodology/approach Based on a sample of 122 banks operating in Middle East and North African countries from 2006 to 2018, we use dynamic panel model estimated with generalized method of moments approach to deal with
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Accounting comparability and financial distress Review of Accounting and Finance Pub Date : 2023-05-24 Mohammad Nazrul Islam, Shihong Li, Clark M. Wheatley
Purpose The purpose of this study is to present the evidence of the association between financial statement comparability and corporate financial distress. Design/methodology/approach This is an empirical study, and this study uses multiple regression analysis to evaluate hypothesis. Findings The authors find a significant decrease in the probability of financial distress as accounting comparability
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Busy audit committee directors and corporate narrative disclosure in Oman Review of Accounting and Finance Pub Date : 2023-05-24 Hidaya Al Lawati, Khaled Hussainey, Roza Sagitova
Purpose This study aims to examine whether, and which type of, busy audit committee (AC) directors affect the quality and quantity of forward-looking disclosure (FLD). Design/methodology/approach The authors use content analysis to measure the quality and quantity of FLD. The authors use a sample of Omani financial institutions listed on the Muscat Securities Market for the period 2014–2018. Findings
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Over-investment and ESG inequality Review of Accounting and Finance Pub Date : 2023-05-22 Cemil Kuzey, Ali Uyar, Abdullah S. Karaman
Purpose This study aims to test whether over-investment is associated with environmental, social and governance (ESG) variation (i.e. inequality) across its dimensions, which, if so, would imply the prioritization of the interests of some stakeholders over those of others. Design/methodology/approach Drawing on a global sample of 29,428 observations across nine sectors and 41 countries between 2003
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An econometric understanding of Fintech and operating performance Review of Accounting and Finance Pub Date : 2023-05-05 Faten Ben Bouheni, Manish Tewari, Mouwafac Sidaoui, Amir Hasnaoui
Purpose This study aims to develop a unique methodology to construct a bank’s financial technology (Fintech) score, which captures the degree of digitalization of a bank’s operations. Using the Fintech score as the proxy, this study investigates the effect of Fintech on the operating performance of the top largest Islamic bank. Design/methodology/approach The methodology used measures the link between
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Critical audit matters: litigation, quality and conservatism Review of Accounting and Finance Pub Date : 2023-04-18 Essam Elshafie
Purpose This study aims to address the following four research questions: first, whether auditors report critical audit matters (CAMs) to shield themselves against possible litigation; second, whether reporting quality affects auditors’ propensity to report CAMs; third, whether auditors’ tenure length – reflecting familiarity with clients’ financial reporting – affects their likelihood to report CAMs;
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The Ramadan effect on commodity and stock markets integration Review of Accounting and Finance Pub Date : 2023-04-18 Amine Ben Amar, Stéphane Goutte, Amir Hasnaoui, Amine Marouane, Héla Mzoughi
Purpose This study aims to investigate the dependence structure and volatility spillovers among two strategic commodities (crude oil and gold) and a set of Islamic and conventional regional stock market indices, while examining the Ramadan effect Design/methodology/approach The empirical strategy consists of two complementary measures of dependence and connectedness. This study first uses copulas to
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The role of analyst coverage and value-relevance of energy efficiency Review of Accounting and Finance Pub Date : 2023-03-27 Ishwar Khatri
Purpose The purpose of this study is to examine whether financial markets value a firm’s specific corporate environmental performance (CEP), i.e. its energy efficiency. This study also investigates the mechanism through which energy efficiency is associated with firm value. Design/methodology/approach For the empirical study, a sample of 324 US-listed non-financial firms during the period 2006–2019
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Do depositors discipline the banking sector? Evidence from an emerging economy Review of Accounting and Finance Pub Date : 2023-03-02 Ayesha Afzal, Nawazish Mirza, Saba Firdousi
Purpose Market discipline is an important part of financial regulation, under Basel II and III. This paper aims to provide evidence on market discipline in Pakistan. Specifically, the authors have analyzed the impact of CAMEL variables on costs of funds and deposit switching. Design/methodology/approach This study has used panel data related to different banking and macroeconomic variables. The sample
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A bibliometric analysis of political connections literature Review of Accounting and Finance Pub Date : 2023-02-27 Fatma Ahmed, Khaled Hussainey
Purpose This paper aims to present a catalogue of the influential aspects resulting from a bibliometric meta-analysis of political connection literature. Design/methodology/approach This study undertakes a bibliometric meta-analysis review of political connections literature, covering 138 research papers from 2000 to 2020 using the visualization of similarities viewer program. Findings The authors
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Changes in the DJIA: market reactions and economic cycles Review of Accounting and Finance Pub Date : 2023-02-03 Patricia A. Ryan, Sriram V. Villupuram
Purpose The purpose of this study is to explain the mixed results to changes in the DJIA index documented in the literature. The authors show that economic cycles, especially recessionary periods, explain the difference in findings. Design/methodology/approach The authors examine changes in the Dow Jones Industrial Average (DJIA) from 1929 to 2019 to evaluate immediate and long-term market reactions
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Market reaction to the Russian Ukrainian war: a global analysis of the banking industry Review of Accounting and Finance Pub Date : 2023-01-19 Sabri Boubaker, Nga Nguyen, Vu Quang Trinh, Thanh Vu
Purpose The purpose of this paper is to study the market reactions of the banking industry to the Russian–Ukraine war. Design/methodology/approach This paper uses an event study methodology, regression analyses and interaction effects to study the effect of the war on banks stock prices and analyze factors that explain the cumulative abnormal return. Findings First, this study finds a significant decline
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Putting the Aumann–Serrano Riskiness Index to work Review of Accounting and Finance Pub Date : 2023-01-17 Doron Nisani, Amit Shelef, Or David
Purpose The purpose of this study is to estimate the convergence order of the Aumann–Serrano Riskiness Index. Design/methodology/approach This study uses the equivalent relation between the Aumann–Serrano Riskiness Index and the moment generating function and aggregately compares between each two statistical moments for statistical significance. Thus, this study enables to find the convergence order
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The impact of short sale prospect on income smoothing Review of Accounting and Finance Pub Date : 2023-01-06 Xu Sun, Tianming Zhang
Purpose The purpose of this paper is to examine the impact of short sale prospect on future income smoothing. Design/methodology/approach This study examines how short sale prospect impacts future income smoothing. This study follows prior research and uses two measures of income smoothing. One is the correlation between the change in prediscretionary income and the change in discretionary accruals
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Do environmental, social and governance practices affect portfolio returns? Evidence from the US stock market from 2002 to 2020 Review of Accounting and Finance Pub Date : 2023-01-02 Johannes Kabderian Dreyer, Mateus Moreira, William T. Smith, Vivek Sharma
Purpose This paper aims to investigate whether environmental, social and governance (ESG) practices influence stock returns in the US stock market, looking at the period from 2002 to 2020. Design/methodology/approach The authors quasi-replicate two reference articles that found that socially responsible funds used to underperform, but that this underperformance tendency has disappeared in more recent
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Does cost-inefficiency in Islamic banking matter for earnings uncertainty? Review of Accounting and Finance Pub Date : 2022-12-23 Sabri Boubaker, Md Hamid Uddin, Sarkar Humayun Kabir, Sabur Mollah
Purpose This paper aims to investigate a fundamental research question of whether the Islamic banking business model makes corporate earnings more uncertain. This question arises because prior research shows that Islamic banks do well in loan performance but incur more operational costs than conventional banks, indicating the systemic limitation of Islamic banks in business risk management. Design
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Chief executive officer ability and cash holding decision Review of Accounting and Finance Pub Date : 2022-11-01 Efstathios Magerakis
Purpose This paper aims to consider the effect of the chief executive officer’s (CEO) ability on the amount of cash stock at the firm level. Design/methodology/approach The empirical hypothesis is examined via fixed-effect regression models using data from US incorporated firms. Findings Consistent with the upper echelon theory and cash holding motives, the results reveal that able CEOs are associated
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Product market competition and earnings management: the role of managerial ability Review of Accounting and Finance Pub Date : 2022-10-25 Md Mahmudul Hasan, Md Safayat Hossain, Giorgio Gotti
Purpose This study aims to examine whether and how managerial ability is associated with the relation between product market competition and earnings management. The authors argue that high-ability managers may moderate the underlying relations in both directions, and they are likely to trade off relative costs between accrual-based earnings management (AEM) and real earnings management (REM). Des
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Corporate social responsibility report readability, credit ratings and cost of borrowing Review of Accounting and Finance Pub Date : 2022-10-25 Kun Yu, Priya Garg
Purpose This study aims to investigate how credit rating agencies and banks, important credit market participants, incorporate corporate social responsibility (CSR)-related information in their assessment of firm’s creditworthiness. Design/methodology/approach The authors collect stand-alone CSR reports published by Fortune 500 companies from 2002 to 2014 and use file size as a readability measure
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The declining GAAP ETR trend over 1960-2016 Review of Accounting and Finance Pub Date : 2022-10-21 Yuzhu Lu, Liang Shao, Yue Zhang
Purpose This study aims to provide a comprehensive analysis on the reasons of the observed trend in the GAAP ETR over 1960–2016. Design/methodology/approach The authors use a linear tax function which allows for time-varying coefficients to track the trend in GAAP ETR over 1960–2016. This approach can decompose the ETR trend into the trends of the statutory tax rate, the propensity to recognize taxes
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Risk reporting and earnings smoothing: signaling or managerial opportunism? Review of Accounting and Finance Pub Date : 2022-09-30 Hend Monjed, Salma Ibrahim, Bjørn N. Jørgensen
Purpose The purpose of this study is to examine the association between two reporting mechanisms used by managers to communicate risk information to the capital market: risk disclosure and earnings smoothing. Design/methodology/approach This study juxtaposes two competing hypotheses, the “opportunistic” and the “signaling”, and empirically investigates whether one dominates the other for a sample of
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Explanatory power of earnings for returns: nonstationarity, disaggregation and timeliness Review of Accounting and Finance Pub Date : 2022-07-21 John J. Wild, Jonathan M. Wild
Purpose This study aims to examine several hypotheses, in conjunction with fundamental accounting concepts, to explain variations in the explanatory power of earnings for returns. Design/methodology/approach The authors explore three factors for their impact on the explanatory power of earnings. First, the accounting period preceding the earnings report is characterized by distinct intratemporal subperiod
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Auditor distraction and audit quality Review of Accounting and Finance Pub Date : 2022-07-18 Chengyee Janie Chang, Yutao Li, Yan Luo
Purpose The purpose of this study is to examine how auditors would react when there are exogenous negative shocks to their client portfolios. Design/methodology/approach Using a sample of 31,256 firm-year observations (2001–2016), the authors investigate whether industry shocks to a subset of an auditor’s clients distract the auditor and affect the professional skepticism applied in the audits of other
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Age diversity, firm performance and managerial ability Review of Accounting and Finance Pub Date : 2022-07-13 Qiao Xu, Guy Dinesh Fernando, Richard A. Schneible
Purpose The purpose of this study is to investigate the impact of the age diversity of the top management team (TMT) on firm performance and on the managerial ability of the TMT. Furthermore, this study investigates how the relationship between age diversity and firm performance is mediated by managerial ability and the contextual nature of the relationship. Design/methodology/approach This is an empirical
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The impact of ASC 842’s new leasing standards on default likelihood by industry Review of Accounting and Finance Pub Date : 2022-07-13 Kenneth J. Hunsader, Christopher M. Lawrey, James Rich
Purpose This paper aims to examine the impact on firm financial distress by industry of one of the most recent accounting changes in the treatment of operating leases, Financial Accounting Standard Board (FASB) Accounting Standards Update (ASU) No. 2016–02, Leases released February 25, 2016. ASU 2016–02, also known as ASC 842, considerably changed how firms account for operating leases. Design/methodology/approach
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On tree-structured linear and quantile regression-based asset pricing Review of Accounting and Finance Pub Date : 2022-05-27 John Galakis, Ioannis Vrontos, Panos Xidonas
Purpose This study aims to introduce a tree-structured linear and quantile regression framework to the analysis and modeling of equity returns, within the context of asset pricing. Design/Methodology/Approach The approach is based on the idea of a binary tree, where every terminal node parameterizes a local regression model for a specific partition of the data. A Bayesian stochastic method is developed
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Earnings autocorrelation and accounting restatements Review of Accounting and Finance Pub Date : 2022-04-28 David B. Bryan, Terry W. Mason
Purpose This study aims to examine whether earnings autocorrelation affects the risk of an accounting restatement. Design/methodology/approach This paper uses logistic regression and identifies restatements between 2004 and 2016. Following prior research, (Dao et al., 2012; Francis and Michas, 2013; Francis et al., 2013; Lennox and Li, 2014; Lobo and Zhao, 2013; Paterson and Valencia, 2011), this study
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The impact of stakeholder management on restatement disclosure transparency Review of Accounting and Finance Pub Date : 2022-04-28 Brian Hogan, Colin Reid
Purpose The purpose of this paper is to explore the impact of a particular firm’s stakeholder orientation, particularly employee orientation, on corporate communications with stakeholders concerning financial irregularities. Design/methodology/approach This study explores the impact of a particular firm’s stakeholder orientation, particularly employee orientation, on corporate communications with stakeholders
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The impact of financial constraints on banks’ cash tax avoidance Review of Accounting and Finance Pub Date : 2022-04-27 Justin Jin, Yi Liu, Zehua Zhang, Ran Zhao
Purpose The purpose of this paper is to investigate whether and how banks’ financial constraints affect their cash tax avoidance. The authors hypothesize that banks engage in more tax planning to generate additional cash to mitigate their financial constraints. Design/methodology/approach The authors use a sample of US banks to conduct the panel regression analysis. The authors measure the bank tax
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Segment earnings and managerial incentives: evidence from foreign firms cross-listed in the USA Review of Accounting and Finance Pub Date : 2022-04-25 Fangjun Sang, Pervaiz Alam, Timothy Hinkel
Purpose Prior studies find that US firms with managerial incentives may manipulate the earnings gap to obscure higher performing segments to competitors or to hide underperforming segments from external monitors. The purpose of this study is to complement extant research by examining the association between managerial incentives and segment earnings reporting of cross-listed firms in the USA and the
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Investor sentiment: a retail trader activity approach Review of Accounting and Finance Pub Date : 2022-04-14 Dave Berger
Purpose This study creates a measure of investor sentiment directly from retail trader activity to identify misvaluation and to examine the link between sentiment and subsequent returns. Design/methodology/approach Using investor reports from a large discount brokerage that include measures of activity such as net buying, net new accounts and net new assets, this study creates a measure of retail trader
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Information uncertainty of fiscal year end quarter earnings Review of Accounting and Finance Pub Date : 2022-04-04 Linda H. Chen, George J. Jiang, Kevin X. Zhu
Purpose The purpose of this study is to investigate whether within the same firm, earnings risk is exacerbated in the fiscal year end (FYE) quarters relative to that of other quarters, more importantly, if this type of earnings risk is unique. Further, the authors discuss solutions to mitigate this type of information risk. Design/methodology/approach This study provides evidence that the information