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Volatility and jump with intraday periodicity and truncated power variation in Chinese yuan-US dollar exchange rates Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2024-03-08 Chae-Deug Yi
This study analyzes the discrete jump volatility of the Chinese yuan/U.S. dollar exchange rate returns using high-frequency five-minute returns from June 2012 to April 2021. Using periodicity filte...
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The effects of audit engagement partner ownership on audit engagements: evidence from Korea Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2024-02-02 Jinhee Kim, So Yean Kwack
We examine the relationship between the partnership share ratio of audit engagement partners and 1) audit fees and billing rates, 2) engagement team size, and 3) audit quality. Based on data from K...
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Bilateral production integration and business cycle synchronization Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2024-02-01 Wei Zhao, Yunong Li
This paper constructs a bilateral production integration (BPI) index to evaluate the closeness of the production relationship between countries under the perspective of fragmented international sup...
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Time-varying effects of the gold price and the oil price on imports in Turkey Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2024-01-04 Nezir Köse, Emre Ünal, Savas Gayaker
The impacts of the gold price, the oil price and the exchange rate on imports are analyzed using a time-varying parameter vector autoregressive with stochastic volatility (TVP-VAR-SV) model. The im...
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Ethnicity-based director network and earnings quality Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2024-01-01 Effiezal Aswadi Abdul Wahab, Janice C Y How, Peter Verhoeven
We exploit the ethnic value differences in Malaysia to investigate the role of ethnicity-based director network in earnings management. Using various centrality measures from social network analysi...
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The information externality of paid analysts Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-12-30 Albert Tsang, Jihye Yoo
Using a hand-collected dataset of paid analysts and their earnings forecasts, this study examines the role of paid analysts in capital markets. Paid analysts tend to make more accurate earnings for...
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Do analysts’ earnings forecasts exclude earnings management? Evidence from audit adjustments Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-12-27 Songsheng Chen, Qingqing Liu, Li Yao
Using audit adjustments to infer earnings management, we find that analysts’ earnings forecasts exclude a large amount of earnings management. The exclusion is greater for firms with larger institu...
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Forward-looking information disclosure tone, financing constraints and marketing expenditures Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-12-05 Chenggang Li, Ying Yan, Xiaodong Wang, Shengnan Wan
Forward-looking information is often seen as private messages that managers deliver to the public, and a positive tone usually implies a positive signal from them. We use a sample of Shanghai and S...
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How do uncertainties affect the connectedness of global financial markets? Changes during the Russia-Ukraine conflict Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-10-26 Yang Wan, Wenhao Wang, Shi He, Bing Hu
We utilize the spectral decomposition of TVP-VAR connectedness to examine the dynamics of connectedness among six global financial markets. Additionally, we employ dynamic model averaging with retr...
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Income diversification, credit risk and bank stability: evidence from an emerging market Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-09-23 Thuy Thu Nguyen, Trang Thu Nguyen
With a sample of 28 commercial banks in Vietnam – an emerging market – this study applies the generalized movement model estimation technique (GMM-SYS) to examine the influences of income diversifi...
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CSR, vertical bargaining and cost pass-through Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-08-24 Xiaolin Xue, Leonard F.S. Wang, Qidi Zhang
ABSTRACT This paper explores the impacts of an upstream monopoly’s social concerns in vertically related markets. Our study shows that the upstream CSR leads to an improvement in social welfare, regardless of the downstream market competition mode. However, the impacts of upstream CSR are more significant under Cournot than under Bertrand competition. Moreover, an upstream monopoly with CSR has a stronger
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Pollution, trade liberalization, and urban unemployment Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-06-28 Shang-Fen Wu, Cheng-Te Lee
ABSTRACT We set up a theoretical model to analyze the effects of environmental policy and trade policy on pollution and unemployment. We find that the level of global pollution would fall due to a rise in the environment tax and prove that if the external effect dominates the direct effect then a rise in the environment tax would lead to a reduction in the unemployment rate, and vice versa. In addition
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Economic policy uncertainty, audit quality, and earnings manipulation Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-06-30 Hyorim Lee, Seok Woo Tiger Jeong
This study examines how audit quality is related to the risk of earnings management when economic policy uncertainty increases. After analyzing 10,524 firm-year samples in Korea from 2012 to 2019, ...
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Financing Constraints, Other People’s Money Strategy, and Enterprise Innovation Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-06-21 Wenxian Hu, Qi Shi, Jinlong Chen
ABSTRACT Innovation is the driving force of social and economic development, and there is a certain consensus that financing constraints inhibit enterprise innovation. However, the role of Other People’s Money strategy in the link between financing constraints and enterprise innovation is largely ignored. Using the sample of A-share non-financial listed companies from 2008 to 2017, this study first
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Faithful or fearless: directors’ and officers’ liability insurance and management discussion and analysis tone manipulation Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-06-20 Yi Ru, Wei Zhao, Zihao Su
ABSTRACT We examine whether directors’ and officers’ liability insurance (D&O insurance) influences managers’ strategic tone manipulation of management discussion and analysis. We find that D&O insurance is positively associated with upward tone manipulation. This association is more pronounced for firms with greater litigation risk or highly-motivated and overconfident managers. Additionally, we document
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Do female independent directors reduce corporate risk taking during COVID-19? Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-04-05 Marybeth Rouse, R Shanti D Ottemoesoe, Yang Wang, Yifei Zhang
ABSTRACT This article examines the impact of female independent directors on corporate risk taking during the COVID-19 pandemic. Our findings suggest that there is a negative relationship between female independent directors and corporate risk taking, indicating that female independent directors can effectively lower risks during this period. In addition, it is reported that the negative impact of
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Pandemic, tourism, and the economy: a tourism-revenue target zone approach Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-03-08 Meng-Yi Tai, Shih-Wen Hu, Chi-Chur Chao
The COVID-19 pandemic has negatively affected the tourist markets of many countries. This study develops a small, open macro model of tourism to analyze the price and revenue effects of establishin...
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Determinants of goodwill and its impact on post-merger and acquisition performance in Thailand: a firm-level analysis Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-02-15 Pituwan Poramapojn, Paitoon Wiboonchutikula
ABSTRACT This study examines factors determining the size of goodwill by merger and acquisition transaction and its effect on an acquiring firm’s future performance using sample data of listed firms in Thailand from 2008 to 2019. The estimated results show goodwill depends on target’s customer base, target’s intangible assets and expected synergies. Combining core goodwill with the inherent strengths
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Income smoothing and firm value: the moderating role of foreign ownership Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-02-15 Saule Dyussembina, Kunsu Park, Young Mok Choi
This study examines whether foreign ownership plays a moderating role in the relation between income smoothing and firm value. We first find that income smoothing is negatively related to firm valu...
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Capital structure decisions under uncertainty: the case of Turkey Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-02-06 Burcu Dinçergök, Hakkı Ozan Eruygur
ABSTRACT This study analyzes the relationship between uncertainty and target leverage ratios on manufacturing firms listed in Borsa Istanbul between 2005–2020. To handle possible instrument proliferation and weak instrument problems of System GMM methodology of dynamic panel data, we mainly adopted the Quasi Maximum Likelihood estimator and found that uncertainty has a significant negative marginal
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Corporate social responsibility: opportunistic behavior under earnings management? Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2023-02-01 Jianhui Jian, Keke He, Yuan Liu, Yulong Sun
This paper investigates whether companies actively use social responsibility to divert public attention from the quality of their accounting information when implementing earnings management. The r...
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Media sentiment divergence and analyst earnings forecasts Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-12-17 Hangsoo Kyung, Albert Tsang
We examine whether media sentiment divergence (MSD), which refers to divergence in sentiment across the media’s coverage of a firm, is associated with the accuracy of analyst earnings forecasts. Ou...
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Rounding of earnings per share and managerial insider selling Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-12-08 Robert Kim, Yong Gyu Lee, Gerald J. Lobo
We hypothesize that managers anticipate a disproportionately larger price increase associated with rounded earnings per share (EPS) and make additional effort to round EPS when they plan to sell sh...
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Financial reporting lag during COVID-19: evidence from flash reporting in Japan Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-11-25 Tolulola Lawal, Yoshikatsu Shinozawa
ABSTRACT Considering the waiver of the ‘within 45 days’ rule in Japan following the coronavirus disease 2019 pandemic, we conduct empirical investigations to examine the determinants of the timeliness of flash reporting and the market reactions to flash announcements during the pandemic, distinguishing between early and late filers and between the ‘waiver’ year (2020) and ‘non-waiver’ year (2021).
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Financial comment letters, geographic proximity and audit quality Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-11-15 Jing Tang, Chuyuan Liu
This paper studies the role of the financial comment letter (CL) in auditing by investigating how CLs affect auditors’ performance. We find that the CL can stimulate auditors to improve audit quali...
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Organizational structure and tax avoidance: multinational evidence from business group affiliation Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-07-20 Hyun A. Hong, Jeong-Bon Kim, Steven R. Matsunaga, Cheong H. Yi
ABSTRACT We investigate the relation between business group affiliation and tax avoidance for publicly traded firms in a global setting. Overall, we find that publicly traded business group firms exhibit greater tax avoidance than stand-alone firms. This evidence is consistent with prior findings on Japan and Korea and suggests that the business group form allows ultimate owners to shift income between
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Short Selling and Managerial Ability Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-06-22 Wei Zhang
ABSTRACT Using a balanced panel of treatment and control firms based on Regulation SHO of 2004 which suspended short sale price tests for a third of the stocks in the Russell 3000 index, we examine the impact of short selling on managerial ability. We found evidence that short selling enhances managerial ability in treatment firms during the period in which short sale price tests were suspended. Subsample
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The influence of investment lag on company value in a non-financing constrained region Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-06-03 Deng Liurui, Ke Jiafeng, Wang Dongfang
We focus on the impact of the investment time lag on a company’s value. We set up the original model in the start-up phase and the mature phase, which reflects the effect of investment time lag on ...
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Play for time when the ship is threatening to sink? Voluntary disclosure choices under going concern uncertainty Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-06-01 Hrishikesh Desai, Daniel Schaupp
Prior research on voluntary disclosures has long debated whether managers tend to withhold bad news. However, these studies have been conducted in settings in which, ex-ante, the trade-off between ...
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Robots, factor intensities, and wage inequality Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-05-23 Jiancai Pi, Yanwei Fan
This paper investigates how robots affect wage inequality. We consider four cases, i.e. robots replacing skilled labor, robots replacing unskilled labor, robots replacing both skilled and unskilled...
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Economic consequences of bargain purchase gains under ASC 805: evidence from banking industry Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-04-29 You Il Park
ABSTRACT I examine whether bargain purchase gains (previously known as negative goodwill) reported under FASB’s Accounting Standards Codification 805, Business Combinations (ASC 805) in FDIC-assisted transactions represent economic gains to the acquiring banks and thereby qualify as part of banks’ Tier 1 capital. In a sample of 135 publicly-held U.S. banks that acquired failed banks in the period January
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Trust, family firms, and M&A quality Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-04-21 Gianfranco Siciliano, Annalisa Prencipe, Suresh Radhakrishnan
ABSTRACT This paper examines the effect of trust on the quality of M&A across family and non-family firms. We find that family firms are associated with better M&A quality than non-family firms and that M&A deals involving high trust are of better quality. When we consider the association of trust, family firms and their interaction, we find that trust is the channel/mechanism through which family
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The impact of board structure on bank loan herding via mediation of underperformance Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-04-21 Hao Fang, Chieh-Hsuan Wang, Hwey-Yun Yau, Chien-Ping Chung, Yen-Hsien Lee
When weak governance practices cause poor bank lending performance, banks are more likely to engage in ‘loan herding’ to avoid a sustained performance deterioration. Using the three main types of C...
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Corporate social responsibility and endogenous competition structure in an industry composed of asymmetric firms with managerial delegation Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-03-29 Yasuhiko Nakamura
ABSTRACT This study focuses on the endogenous choice between price and quantity contracts in a duopoly composed of asymmetric firms that care about corporate social responsibility (CSR) with managerial delegation. We find that the optimal strategy of a firm that cares about social welfare does not depend on both the degree of homogeneity of goods and the degrees of importance of CSR, while the that
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Growth: rectifying two common mistakes Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-03-13 James Ohlson
ABSTRACT The paper discusses two issues related to ‘growth’. Both lack a proper recognition in the literature. The first concerns growth and accruals. Research practice combines two components of accruals, asset accruals and liability accruals into a ‘net’. This aggregation causes problems: income-increasing asset accruals correlate positively with growth whereas the opposite holds for income-increasing
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Macroeconomic outlook optimism and analysts’ four-quarter-ahead quarterly earnings forecast optimism* Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-03-06 Mikhail Pevzner, Suresh Radhakrishnan, Chandra Seethamraju
ABSTRACT We examine the relationship between the long-run macroeconomic outlook and four-quarter-ahead quarterly earnings forecasts and find that the four-quarter-ahead quarterly earnings forecasts are more optimistically biased in periods when the four-quarter-ahead quarterly macroeconomic forecasts are optimistically biased as well. This relationship is stronger when forecasts are for periods that
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Role of stock price informativeness in shaping non-GAAP earnings disclosures Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2022-01-06 Ting Zhang, Gaoliang Tian, Hua Feng
ABSTRACT Using 107,411 firm-quarter observations from 2004 to 2017, we find that managers are less likely to report non-GAAP earnings with the increase of stock price informativeness, suggesting that information from stock prices discourages non-GAAP reporting from firm managers. We further show that stock price informativeness influences managerial incentive of non-GAAP reporting through two channels:
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Complex ownership, contract enforcement, creditor rights, and leverage Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-12-28 Muhammad Hashim Shah, Xiao Zuoping, Abdullah Abdullah, Shakir Quresh, Mushtaq Ahmad, Muqeet Ahmad
ABSTRACT This study examines the moderating effect of judicial efficiency and creditor rights on the relationship between internal pyramid structure and leverage. The results suggest that the effect of the vertical and horizontal pyramid structures on leverage is positive and significant. We find that the impact of the pyramid’s vertical structure on leverage is more substantial than that of the horizontal
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Manufacturing exports and institutional qualities in Central Asian countries Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-12-14 Hiroyuki Taguchi, Abdukodirov Amirjon
ABSTRACT This paper evaluates the export values of manufactured goods for the Central Asian countries using a gravity trade model and investigates the roles of institutional qualities in manufacturing exports based on the World Governance Indicators. The findings of this study are summarized as follows. With Kazakhstan being a benchmark country, the remaining four Central Asian countries have downward
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Predicting stock returns with financial ratios: A new methodology incorporating machine learning techniques to beat the market Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-11-27 Zeynep İltüzer
ABSTRACT This study proposes a methodology incorporating machine learning algorithms to predict stock returns and construct portfolios that beat the market. The performance evaluation is based on the statistical metrics as well as the return and Sharpe ratios of the portfolios. Additionally, a new performance evaluation metric, Safe-Side, is introduced to address the needs of conservative portfolio
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Board centrality and investment efficiency Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-11-22 Kambar Farooq, Chin Man Chui, Muhammad Azeem
ABSTRACT We study whether firms with central network boards influence investment efficiency. The results demonstrate that board centrality enhances investment efficiency and mitigates overinvestment but show an insignificant impact on underinvestment. This asymmetric effect on over and underinvestment can be attributed to different roles played by executive (internal) directors and external directors
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Is language priced? evidence from bank loan contracting Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-11-19 Yalu Xie, Chong Wang, Feng (Harry) Wu
ABSTRACT Previous studies document that firms in countries speaking languages with strong future time reference (FTR), which more sharply dissociates the future from the present, engage in less future-oriented corporate behaviors relating to their default and information risks. We find that strong FTR influences creditors’ pricing of bank loan contracts: banks design more unfavorable loan terms to
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Cost-based pricing in government procurements with unobservable cost-reducing actions and productivity Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-09-24 Taichi Kimura, Takahiro Morimitsu
ABSTRACT The effective and efficient implementation of government procurement improves social welfare, however, governments and policymakers struggle to refine contract arrangements. To investigate the optimal contract scheme, we analyze a hybrid model of moral hazard and adverse selection. We show that the contract price is higher when the firm’s cost–reducing capacity is unobservable than when it
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Managerial ability and revenue-expense matching: accrual estimation versus real business decision Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-09-14 Hyungjin Cho, Ga-Young Choi
ABSTRACT We investigate the association between managerial ability and revenue-expense matching. We find that firms having more capable managers exhibit a better contemporaneous revenue-expense matching, partly attributable to their ability at accrual estimation. We also find that the association between current revenue and past expense is weaker for firms having more talented managers due to cash
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Corporate social responsibility and non-audit service fees Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-09-12 Jong-Yu Paula Hao, Fei Kang, Chia-Ling Lee
ABSTRACT In this study, we examine the association between corporate social responsibility (CSR) and the purchase of non-audit service (NAS). Due to the information asymmetry between stakeholders and managers, stakeholders are generally concerned about auditor’s independence and the firms’ reporting quality. We argue that firms engaging in CSR are more concerned about meeting stakeholder expectations
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Aggregate earnings informativeness and economic shocks: international evidence Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-07-20 Yuto Yoshinaga, Makoto Nakano
ABSTRACT Our study proposes the usage of aggregate earnings to forecast future GDP growth. Using empirical analyses with global quarterly data, we investigate whether aggregate-level profitability drivers, which are components of aggregate earnings, are relevant for forecasting GDP growth. After confirming that aggregate-level profitability drivers are useful for forecasting future GDP growth worldwide
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Fair value complexity and financial statement comparability Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-07-18 Hyejin Ahn
ABSTRACT This study examines whether fair value accounting and its complexity influence financial statement comparability. Using quarterly US bank holding company data from 2008 to 2014, I find that the proportion of assets and liabilities that are fair valued is negatively associated with financial statement comparability and that this negative relation appears to be driven by the less v erifiable
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Earnings and cash flow comparability in executive compensation Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-07-14 Sung-Jin Park, Emeka T. Nwaeze
ABSTRACT We examine whether cross-firm comparability of earnings and operating cash flows influence the usefulness of earnings and cash flows in CEO compensation. We find that earnings (cash flow) comparability is positively associated with the compensation weight of earnings (cash flow) and negatively associated with the weight of cash flow (earnings), suggesting a substitution effect between earnings
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Executive extraversion and voluntary disclosure: evidence from management earnings forecasts Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-07-01 Chih-Hsien Liao, Ziyao San, Albert Tsang, Miao Yu
ABSTRACT In this study we examine whether and how extravert key executives in firms affect the provision of management earnings forecasts and the associated stock market reactions. We provide evidence that firms with extraverted chief financial officers (CFOs) tend to issue more earnings forecasts, earnings forecasts with a higher level of disaggregation, and earnings forecasts accompanied by supplementary
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National cultural distance and cross-border M&A Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-07-01 Ashish Chand, Ruixiang Jiang, Zhenling Zhao
ABSTRACT Using cross-border M&A activities and national cultural scores from the Hofstede Insights organization, we study the impact of national cultural distance on cross-border M&As from 2008 to 2017. The empirical evidence shows that both the success of M&A attempts and the post-acquisition stock returns are negatively related to national cultural distance. We also test this negative relation considering
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Disclosure tone, corporate governance and firm value: evidence from Egypt Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-06-03 Mohamed S. El-Deeb, Yasser T. Halim, Ahmed F. Elbayoumi
ABSTRACT This study examines the extent to which corporate governance (CG) affects disclosure tone (DT) and assesses the impact of DT on firm value (FV). It also tests the effect of CG on FV using DT as an intermediary variable. Content analysis is used to measure DT level. CEO duality, board size, gender diversity, and board independence are used as proxies for CG. Tobin’s Q is used to measure FV
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The role of narrative style in a peer-to-peer lending market: an empirical investigation Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-06-03 Xiaotao Zhang, Yuelei Li, Wei Zhang, Jieli Xing
ABSTRACT Decision-making behavior can be capricious and may vary from individual to individual. This paper provides a straightforward method for the empirical identification of the narrative style affecting financial decisions under time pressure. Punctuation, Chinese characters and sentence length constitute different narrative styles. Using data from Renrendai, we find that as the number and type
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Initial credit ratings and voluntary disclosure : Evidence from Korea Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-06-01 Yujin Kim, Jungin An
ABSTRACT This study examines the effect of initial credit ratings on voluntary disclosure in Korea. Managers are concerned about initial credit ratings because they become the benchmark for future debt issues. Therefore, firms may have incentives to opportunistic disclosure in order to get favorable credit ratings during the initial credit rating evaluation. We find that the frequency of voluntary
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Re-examining the NED effect on firm financial performance: the impact and interplay of NED capital and NED equity incentives Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-05-22 Tien Nguyen, John Shields, Mark Westcott
ABSTRACT Drawing on propositions from Hillman and Dalziel’s pioneering 2003 articulation of Board Capital Theory, this paper investigates the interaction between NED externally-derived capital (proxied by multi-factor capital breadth and focal industry capital depth), internally-derived capital (proxied by tenure overlap), and their equity ownership in the focal firm in influencing firm accounting
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Insider trade clustering and large variations in stock prices: evidence from the Korean market Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-04-28 Soon Hong Park, Byungkwon Lim
ABSTRACT This paper examines whether insider trade clustering is associated with large stock return variations (i.e. crash or jump risk) in Korea. To investigate private information of insider trade clustering, we separate insider trade clustering into sale clusters and purchase clusters and then document whether trading behavior of insider sale (purchase) clusters is related to the likelihood of a
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Strategic decisions of a multi-product firm under Bertrand competition Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-04-07 Hui-Ling Chung, Hung-Yi Chen, Yan-Shu Lin
ABSTRACT This research examines three strategies that a multi-product firm can adopt when facing a single-product entrant under Bertrand competition: (i) staying in the duopoly market, (ii) abandoning the duopoly market, and (iii) bundling the two goods. When the competing good is homogenous, bundling is the most profitable strategy if the product differentiation of the two goods produced by the multi-product
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Internal audit findings, audit committees, and firm performance evidence from UK Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-04-04 Abdulaziz Alzeban
ABSTRACT Although researchers have paid increasing attention to how corporate governance influences firm performance, there has been limited focus on how the internal audit function impacts firm performance. This study thus examines how the implementation of internal audit recommendations (IIAR) impacts firm performance and whether audit committee characteristics increase or decrease this impact. By
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Pilot CEOs and tax avoidance: evidence from machine learning methods Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-04-01 Long Liu, Hongkang Xu, Mai Dao, Hua Sun
ABSTRACT Chief executive officers (CEOs) could use tax avoidance to reduce costs and hence increase firm profits. Nevertheless, the reputation of the firm could be harmed. Prior studies find that firms’ tax avoidance is associated with CEOs’ personality traits. We attempt to predict firms’ engagement in tax avoidance using CEOs’ flying hobby measured by the pilot certificate. Using various advanced
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Board of directors and earnings management: conventional and Islamic banks Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-03-02 Ahmad Abu-Dawleh, Nadine Lybaert, Tensie Steijvers, Mieke Jans
ABSTRACT This study examines how the board of directors (BOD) of Islamic banks (IBs) might affect earnings management differently, compared to BOD of conventional banks (CBs). Our results indicate that banks in the MENA region that promote BOD independence incur less earnings management. Distinguishing between CBs and IBs, we document higher loan quality and credit policy at IBs. Moreover, smaller
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The effect of bank governance on borrowers’ accounting choices Asia-Pacific Journal of Accounting & Economics (IF 1.137) Pub Date : 2021-02-20 Kang Sung Hur, in Tae Hwang
This study analyzes the effect of bank CEO appointment structure and tenure on borrowers’ accounting practices and earnings management. Drawing on agency theory, we posit that agency costs are high...