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Deposit insurance and credit union earnings opacity The British Accounting Review (IF 5.5) Pub Date : 2024-09-05 Lemonia M. Rempoutsika, Dimitris K. Chronopoulos, Linh Nguyen, John O.S. Wilson
This study examines the impact of deposit insurance coverage on credit union earnings opacity. For identification, we employ the provisions outlined in Section 136 of the Emergency Economic Stabilization Act, which raised the upper limit of deposit insurance coverage from $100,000 to $250,000. Using variation in insured deposits brought about by the differential impact of the change to deposit insurance
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Sustainable development goals, accounting practices and public financial management: A pre and post COVID-19 assessment The British Accounting Review (IF 5.5) Pub Date : 2024-08-30 Franklin Nakpodia, Rilwan Sakariyahu, Temitope Fagbemi, Rasheed Adigun, Oluwatoyin Dosumu
Previous studies have highlighted the importance of policy interventions in achieving the Sustainable Development Goals (SDGs). However, there is limited understanding within accounting literature about strategies to enhance sustainable development initiatives and address the challenges faced in varieties of capitalism. This study investigates the influence of accounting practices and public financial
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Political uncertainty, corporate social responsibility, and firm performance The British Accounting Review (IF 5.5) Pub Date : 2024-08-23 Yi Hu, Chao Yin
Our study reveals that companies with higher Corporate Social Responsibility (CSR) ratings exhibit superior stock returns compared to their counterparts with lower ratings during periods of political uncertainty. This phenomenon is more pronounced in a closely contested election with a higher degree of unpredictability. Our results remain robust after addressing potential endogeneity issue and are
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Accounting and accountability for managing diversity tensions in hybrid organisations The British Accounting Review (IF 5.5) Pub Date : 2024-08-22 Giuseppe Grossi, Aziza Laguecir, Laurence Ferry, Basil Tucker
Hybrid organisations are organisational forms that use different resources, governance models and institutional logics derived from public, private, for-profit and nonprofit. Hybridity can be referred to on multiple levels of analysis: macro-level related to the society, meso-level related to specific organisational fields or organisations, or micro-level related to groups or individual actors. This
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Uncovering the intensity of climate risk and opportunity: Awareness and effectiveness The British Accounting Review (IF 5.5) Pub Date : 2024-08-22 Hanlu Fan, Keyi Zhao
This paper examines the effect of awareness regarding climate change risks and opportunities on the proactive carbon management systems of U.S. S&P 500 companies. We develop our hypotheses based on institutional theory, stakeholder theory, and prospect theory. Our findings indicate a significant positive association between our self-constructed measurement of company risk and opportunity awareness
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Mimicking crypto portfolios in sustainable investment The British Accounting Review (IF 5.5) Pub Date : 2024-08-22 Mengxia Yu, Ke Xu, Xinwei Zheng
In this paper, considering the difference in the energy demand level, we utilize the daily pricing data from 10/01/2019 to 06/30/2023 to construct mimicking crypto portfolios with 12 clean cryptocurrencies to replace the dirty cryptocurrency, Bitcoin (BTC). With a monthly rebalancing strategy, the mimicking portfolio closely matches the exposures to the risk factors of the BTC but with fewer specific
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Substitutes or complements? Use of trade credit and bank credit by family SMEs The British Accounting Review (IF 5.5) Pub Date : 2024-08-19 Xianzhe Jin, Jialong Li, Yefeng Wang, Yuan Wang
This research examines the intricate relationship between trade and bank credit, with a specific focus on family and nonfamily small and medium-sized enterprises (SMEs). Our analysis of a sample of 3690 US SMEs reveals a distinctive pattern: Trade credit and bank credit act as substitutes for each other for family firms, but they serve as complements to each other for nonfamily firms. Furthermore,
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Corporate culture and carbon emission performance The British Accounting Review (IF 5.5) Pub Date : 2024-08-14 Mostafa Monzur Hasan, Md Borhan Uddin Bhuiyan, Grantley Taylor
Using a large sample of U.S. firms from 2002 to 2020, we investigate the relationship between corporate culture and the extent of carbon emissions. We provide evidence that the quantum of carbon emissions is negatively associated with corporate cultural attributes manifested by integrity, teamwork, innovation, and respect. These results hold after controlling for potential endogeneity issues using
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Product market shock, stakeholder relationships, and trade credit The British Accounting Review (IF 5.5) Pub Date : 2024-08-14 Jagriti Srivastava, Balagopal Gopalakrishnan, Rajesh Tharyan
The COVID-19 pandemic resulted in an extremely rare instance of a shock to global product markets. Using quarterly data for a sample of 7397 firms from 54 countries over the period 2017–2020, we study the causal impact of this shock on trade credit. Employing a difference-in-difference analysis, we find that, in contrast to findings in the literature on financial market shocks, low-credit quality firms
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Information leakage prior to market switches and the importance of Nominated Advisers The British Accounting Review (IF 5.5) Pub Date : 2024-08-11 Antonios Siganos, Angelos Synapis, Ioannis Tsalavoutas
This study tests the information leakage hypothesis prior to the public announcement of firms switching between the Alternative Investment Market (AIM) and the Main Market (MM) in the UK. We find significant abnormal stock returns 60 trading days prior to the announcement of these switches. The results are robust after controlling for switching anticipation, rumors, other major corporate announcements
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Carbon accounting for the translation of net-zero targets into business operations The British Accounting Review (IF 5.5) Pub Date : 2024-08-08 Elena Carrión, Carlos Larrinaga, Deborah Rigling Gallagher
This paper explores the translation of the global decarbonization goal into net-zero organizational targets. Building on the Institutional Analysis and Development (IAD) framework developed by Ostrom and focusing on the case of the Science Based Targets initiative (SBTi), we study how accounting mediates in this translation. The study consists of an in-depth examination of SBTi's publicly available
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Digitalization and management accountants’ role conflict and ambiguity: A double-edged sword for the profession The British Accounting Review (IF 5.5) Pub Date : 2024-08-08 Alexander C.A. van Slooten, Paula M.G. Dirks, Sebastian Firk
This study investigates the relationship between the anticipated digitalization of the finance and control function and management accountants' (MAs') role conflict and ambiguity. Drawing on role theory, we argue that digitalization is associated with increases in MAs' role conflict and ambiguity because digitalization leads to adaptations in the established role templates of MAs and also introduces
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Economic policy uncertainty, carbon emissions and firm valuation: International evidence The British Accounting Review (IF 5.5) Pub Date : 2024-08-08 Sudipta Bose, Syed Shams, Searat Ali, Abdullah Al Mamun, Millicent Chang
This paper explores how the uncertainty surrounding economic policies affects the decisions managers make, particularly with reference to carbon emissions. Notably, this is a pioneering effort as very few studies have examined the influence of economic policy uncertainty on decisions about either carbon emissions or renewable energy, and, in turn, the impact of these decisions on firm value. From a
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Ex-ante expected changes in ESG and future stock returns based on machine learning The British Accounting Review (IF 5.5) Pub Date : 2024-08-08 Hongtao Zhu, Md Jahidur Rahman
This study has two primary objectives. Firstly, it enhances the reliability and transparency of machine-learning-based models for predicting future changes in environmental, social and governance (ESG) performance. Secondly, it explores the relationship between ex-ante expected changes in ESG and future stock returns. This study collects 3258 STOXX Europe 600 firm-year observations. In the ESG prediction
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Third-party auditor liability risk and trade credit policies The British Accounting Review (IF 5.5) Pub Date : 2024-08-06 Anthony Kyiu, Bernard Tawiah, Kwabena Antwi Boasiako, Sylvester Adasi Manu
We investigate the effect of Third-Party Auditor Liability (TPAL) risk on firms' trade credit policies. Exploiting the staggered state-level changes to TPAL in the US as a quasi-natural experiment, we find that firms in states with a higher risk of TPAL increase their use of trade credit. This relationship is more pronounced for firms with a more enhanced information environment, those with greater
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Digitalization tensions in the management accounting profession: Boundary work responses and their consequences The British Accounting Review (IF 5.5) Pub Date : 2024-08-03 Claudio de Araujo Wanderley, Kate E. Horton
This study examines senior finance professionals' experiences and responses to digitalization tensions by applying a boundary-work theoretical lens. Based on interview data, we find that individuals use six boundary work strategies to respond to digitalization, namely, 1. Expansion into business partner roles; 2. Expansion into other specialisms; 3. Defensive boundary work; 4. Cross-functional collaborative
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Bridging the credit gap: The influence of regional bank structure on the expansion of peer-to-peer lending The British Accounting Review (IF 5.5) Pub Date : 2024-08-02 Nourhan Eid, Junhong Yang, Meryem Duygun
This paper investigates the extent to which the regional credit market structures, characterized by the presence and lending capacity of traditional banks, shape the growth of online lending marketplaces using peer-to-peer (P2P) lending data. Using an instrumental variables (IV) approach, our study suggests that areas underserved by traditional banks witness more significant growth in P2P lending.
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From debt breaches to employee safety: The hidden power of banking interventions The British Accounting Review (IF 5.5) Pub Date : 2024-08-02 Shiyang Hu, Xiao Li, Gary Gang Tian, Jianyu Zhao
This study investigates the influence of bank interventions following breaches of debt covenants on workplace safety. Using a regression discontinuity design, we find robust evidence indicating a substantial decrease in employee injuries after covenant violations. Our channel analysis reveals that the impact of bank interventions is more pronounced when banks perform well in ESG-related employee relationships
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Uncovering interfirm links through textual topic similarity: A comomentum analysis in financial markets The British Accounting Review (IF 5.5) Pub Date : 2024-07-31 Zhiyu Zhang, Zheng Qiao, Yao Ge, Zhe Shen
Using an unsupervised topic modelling methodology, we construct a cross-firm similarity measure based on the various topics extracted from Management Discussion and Analysis texts. Our findings indicate that the returns of firms with similar textual topics predict the focal firms’ future stock returns. A long-short portfolio constructed on this basis yields an annualised alpha of 17.03%. Further analyses
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Cross-border regulatory cooperation and cash holdings: Evidence from US-listed foreign firms The British Accounting Review (IF 5.5) Pub Date : 2024-07-31 Yuyuan Chang, Wen He, Lin Mi
We investigate the effect of cross-border regulatory cooperation on the cash holdings of firms cross-listed on US stock exchanges. The staggered adoption of the Multilateral Memorandum of Understanding (MMoU) facilitates cooperation among securities regulators around the world and expands their enforcement capabilities against foreign firms. Using a difference-in-differences design, we find that US-listed
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The bright side of common ownership: Evidence from bank transparency The British Accounting Review (IF 5.5) Pub Date : 2024-07-30 Haerang Park, Shams Pathan, Konstantinos Stathopoulos, Alex Marwick
Over 74% of US banks share common ownership with other banks. Our analysis of a large sample of US banks reveals that those with greater common ownership demonstrate heightened transparency. This manifests as reduced discretion in loan loss provisions, improved financial statement readability, and enhanced comparability. We pinpoint three underlying mechanisms: decreased private information gathering
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A real effect of climate-related shareholder proposals: Diversification The British Accounting Review (IF 5.5) Pub Date : 2024-07-30 Greg Tindall
To date, the literature has not discovered diversification to be a firm policy that shareholders can influence through their proposals at annual meetings but has explained contexts in which diversification can defend. I contemplate and test diversifying responses to shareholder proposals made in the context of climate change. By following 440 shareholder-initiated proposals in the United States that
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Audit committee member busyness and risk factor disclosure The British Accounting Review (IF 5.5) Pub Date : 2024-07-15 Cristina Bailey, Joshua J. Filzen
Audit committees in the U.S. oversee risk management within organizations, including oversight of the disclosure of risk factors in periodic filings. Because audit committees have become increasingly over-burdened, we examine the impact of the busyness of audit committee members, measured via members’ service on other boards, on risk factor disclosures. We find firms with busy members issue disclosures
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The use of machine learning algorithms to predict financial statement fraud The British Accounting Review (IF 5.5) Pub Date : 2024-07-14 Mark Lokanan, Satish Sharma
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Heterogeneity in the integration of ESG measures in executive compensation: Determinants, contracting details and outcomes The British Accounting Review (IF 5.5) Pub Date : 2024-07-09 Shilin Hou, Jianfeng Shen, Chuan Yu, Shan Zhou
Corporate social responsibility (CSR) contracting incorporates environmental, social, and governance (ESG) related measures in executive compensation plans. Current research on this practice is limited to a US setting, despite global adoption. We investigate heterogeneity in CSR contracting using data from 59 countries between 2002 and 2019. We find that besides firm-level past ESG performance and
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Climate risk disclosures and auditor expertise The British Accounting Review (IF 5.5) Pub Date : 2024-06-27 Ly Pham, David Hay, Antti Miihkinen, Emma-Riikka Myllymäki, Lasse Niemi, Jukka Sihvonen
Many jurisdictions are establishing requirements for corporations to disclose climate-related risks, and for those disclosures to be audited. One of the first jurisdictions to do so is Australia, where the Australian Accounting Standards Board (AASB) and Auditing and Assurance Standards Board (AUASB) issued a Joint Bulletin in 2018 stating that both preparers and auditors should consider the impact
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Does analyst ESG experience matter? The British Accounting Review (IF 5.5) Pub Date : 2024-06-25 Anastasia Kopita, Zacharias Petrou
We examine the relationship between analysts' task-specific experience in the context of ESG information and the informativeness of their stock recommendation revisions. While sell-side analysts incorporate ESG information in their valuation process and research reports, previous studies have indicated that the increased availability of ESG information in the market poses challenges for analysts to
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The information content of rating action reports: A topic modeling approach The British Accounting Review (IF 5.5) Pub Date : 2024-06-22 John (Xuefeng) Jiang, Jing Kong, Michael Shen
This paper examines the information content in Moody's rating action reports, which Moody's releases concurrently with its rating actions. Using a topic modeling approach, we identify two informative topics after controlling for rating characteristics and report tones. We find that unfavorable discussion of the topic (about issuers' financial performance) generates a significant positive market reaction
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Why do banks acquire FinTech? The role of board cultural diversity The British Accounting Review (IF 5.5) Pub Date : 2024-06-22 Reghezza Alessio, Chrysovalantis Vasilakis
This paper examines the role of cultural diversity in bank boardrooms for the acquisition of innovation financial technology – or “FinTech” – firms. Using a sample of 808 banks from 2008-18 in 65 countries, we find that culturally diverse boards are more likely to pursue the acquisition of FinTech firms. We also show that bank-, country- and corporate governance-specific characteristics matter for
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Discretionary tone in reward-based crowdfunding: Do project owners talk their way to success? The British Accounting Review (IF 5.5) Pub Date : 2024-06-21 Douglas Cumming, Yihui Lan, Yuan George Shan, Junru Zhang
This study examines the relationship between abnormal tone and project performance of reward-based crowdfunding (RBC) using the Kickstarter data from 2009 to 2020. We document a negative relationship between abnormal tone and the success of a project in the RBC campaign section, while a positive impact in the Risks and Challenges section. This outcome remains robust to a variety of sensitivity tests
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Political sentiment and credit ratings The British Accounting Review (IF 5.5) Pub Date : 2024-06-21 Mostafa Monzur Hasan, Ashrafee Hossain, Haiyan Jiang
This study examines the relationship between firms’ political sentiment (PSENT) and their credit ratings. Using US public firms as the sample, we reveal that PSENT is positively associated with corporate credit ratings. Furthermore, we find evidence indicating that a positive PSENT leads to higher credit ratings, while a negative PSENT results in lower credit ratings. We also demonstrate that PSENT
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The impact of loosening regulatory requirements on firm innovation: Evidence from SEC rule 12h-6 The British Accounting Review (IF 5.5) Pub Date : 2024-06-20 Nathan Zhenghang Zhu, Kun Tracy Wang
The US Securities and Exchange Commission implemented Exchange Act Rule 12h-6 in 2007, which made it considerably easier for cross-listed firms in the US market to deregister and terminate their regulatory obligations as US exchange listings. Using a difference-in-differences research design, we predict and find that in the period after the implementation of Rule 12h-6, cross-listed firms have significantly
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Strategic forward-looking nonearnings disclosure and overinvestment The British Accounting Review (IF 5.5) Pub Date : 2024-06-20 Jean Jinghan Chen, Peiyang Song, Fai Lim Loi
We examine whether tone management in different aspects of forward-looking statements (FLSs) is related to managers' self-serving overinvestments. Using data for U.S.-listed firms between 2003 and 2019, we provide novel evidence that the abnormal tone of nonearnings-related qualitative FLSs' is significantly and positively related to firms' overinvestments but that other aspects of FLSs are insignificant
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Nineteenth century audit reports: Evolution from free-form to standardised wording The British Accounting Review (IF 5.5) Pub Date : 2024-06-17 Niamh M. Brennan, Sean Bradley Power
The research comprises a case study focussed on the wording of 34 audit reports of the British South Africa Company (BSAC), which Cecil Rhodes established by Royal Charter to colonise Rhodesia from 1889 to 1924. The accounts were audited by Cooper Brothers & Co., now PricewaterhouseCoopers. The research analyses three audit-report characteristics that influenced audit-report wording. Of the 34 audit
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Capitalised development costs and future cash flows: The effect of CEO overconfidence and board gender diversity The British Accounting Review (IF 5.5) Pub Date : 2024-06-17 Khadija S. Almaghrabi, Richard Slack, Ioannis Tsalavoutas, Fanis Tsoligkas
Capitalisation of development costs mandated under IAS 38 is an important accounting issue conveying a signal to users of accounting information regarding future economic benefits. Using a longitudinal sample of UK firms, firstly, we examine the adverse effect of CEO overconfidence levels on the association between capitalised development costs and future economic benefits, proxied by cash flows. Secondly
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Management control systems, business financial literacy and financial leverage in business-incubated start-ups The British Accounting Review (IF 5.5) Pub Date : 2024-06-15 Roberto Graña-Alvarez, Jacobo Gomez-Conde, Ernesto Lopez-Valeiras, Miguel González-Loureiro
Entrepreneurs manage the capital structure of their start-ups to align the assumption of financial risk with their risk appetite. We focus on the ways in which management control systems (MCS), categorized as financial and non-financial MCS, serve as determinants of financial leverage in start-ups. Of particular interest is the influence of entrepreneurs' financial literacy on this relationship. We
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A global study of climate uncertainty and carbon assurance The British Accounting Review (IF 5.5) Pub Date : 2024-06-15 Le Luo, Junru Zhang
Measurement, verification, and reporting of carbon emissions is essential for climate management. However, research on carbon assurance is limited. To address this gap, we investigate the association between climate uncertainty and voluntary carbon assurance. We conceptualize and operationalize four dimensions of micro-level climate uncertainty: innovation, management and performance, supply chain
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Climate change uncertainty and supply chain financing The British Accounting Review (IF 5.5) Pub Date : 2024-06-12 Zhangfan Cao, Steven Xianglong Chen, Ting Dong, Edward Lee
We examine the impact of climate change uncertainty on supply chain financing. We find that firms significantly curtail trade credit provision during periods of high climate change uncertainty. The cross-sectional variations of this effect with firm-specific factors such as vulnerability to climate change, asset redeployability, and pollution severity suggest that it is primarily driven by managerial
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Rank-and-file employee stock options and audit pricing: Evidence from S&P 1500 firms The British Accounting Review (IF 5.5) Pub Date : 2024-06-11 Xiaoqi Chen, Maoliang Li, Emmanuel Obiri-Yeboah, Qiang Wu
In this study, we examine the impact of rank-and-file employee stock options on audit fees. We document compelling evidence that option grants to rank-and-file employees are positively related to audit fees. Further analyses show that this positive relation is more pronounced when a firm's real earnings manipulation risk is higher and when rank-and-file employees are more sensitive to monetary incentives
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Director networks, accounting conservatism and director reputation: Evidence after financial reporting failure The British Accounting Review (IF 5.5) Pub Date : 2024-06-08 Chih-Liang Liu, Shu-Miao Lai, In-Mu Haw
This study examines whether connected boards of directors restore their reputation via conservative accounting after financial misstatements. Using a sample of restating firms from 2004 to 2020, we find central boards of directors are positively related to accounting conservatism in the post-restatement period. More importantly, we find accounting conservatism has positive effects on the reputation
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Devolution, counter-conduct and territoriality: The case of Tax Business Rates in the United Kingdom The British Accounting Review (IF 5.5) Pub Date : 2024-05-31 Penelope A.L. Tuck, Dominic de Cogan, Rodrigo Ormeño-Pérez
Business Rates (BR) are key to the interaction between national, devolved, regional and local institutions of government in the UK. A liability to the tax can make the difference between the life and death of a business, and the design and implementation of business rates interacts with areas of policy concern as disparate as devolution, planning, charity regulation and digitalisation. We examine how
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Is greater connectivity of financial and non-financial information in annual reports valued by market participants? The British Accounting Review (IF 5.5) Pub Date : 2024-05-31 Ruizhe Wang, Wai Fong Chua, Roger Simnett, Shan Zhou
The establishment of the International Sustainability Standards Board (ISSB), and the endorsement by the International Financial Reporting Standards (IFRS) foundation of the principles underlying the Integrated Reporting (IR) Framework, attest to a regulatory intent to develop a disclosure framework better connecting sustainability-related financial disclosures with financial disclosures. Strategic
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The impact of lobbying on managerial short-term resource adjustment decisions The British Accounting Review (IF 5.5) Pub Date : 2024-05-12 Johannes Voshaar, Thomas R. Loy, Jochen Zimmermann
This study examines the effect of political lobbying on firms' short-term resource adjustment decisions. Controlling for a wide range of known determinants of managerial cost behaviour, our results suggest that U.S. lobbying firms exhibit significantly less cost stickiness than non-lobbying firms. Lobbying reduces managers' "wait-and-see games" as they obtain preferential access to information on political
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The determinants of corporate cost of debt during a financial crisis The British Accounting Review (IF 5.5) Pub Date : 2024-05-01 Tauhidul Islam Tanin, Ashutosh Sarker, Shawkat Hammoudeh, Jonathan A. Batten
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Impression management strategy — The relationship between accounting narrative thematic bias and financial graph distortion The British Accounting Review (IF 5.5) Pub Date : 2024-04-25 Jeff Boone, Jie Hao, Cheryl Linthicum, Viet Pham
Prior literature has examined 10-K narrative thematic bias and financial graph distortion as two independent outcomes that might arise from managements' efforts at impression management. Largely unexplored is an analysis of narrative thematic bias and financial graph distortion as joint and interrelated outcomes that would arise if management coordinates both in the same 10-K report as part of an impression
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Environmental regulations and corporate cash holdings The British Accounting Review (IF 5.5) Pub Date : 2024-04-24 Wenrui Chen, Yue Cao, Yizhe Dong, Diandian Ma
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Key audit matters disclosures and informed traders The British Accounting Review (IF 5.5) Pub Date : 2024-04-20 Zabihollah Rezaee, Saeid Homayoun
We examine whether the audit regulation of disclosing key audit matters (KAM) provides value-relevant information to short sellers as informed investors. The theoretical underpinning for examining short sellers' ability and incentives to use KAM disclosures in their stock valuation implications is based on a prediction theory and a skilled information processing theory of short sellers. Using a sample
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CEO succession origin and annual reports readability The British Accounting Review (IF 5.5) Pub Date : 2024-04-18 Javad Oradi, Reza Hesarzadeh, Sahar E-Vahdati, Muhammad Nadeem
We examine the association between the origin of chief executive officer (CEO) succession (i.e., promoting a CEO from within the firm as opposed to recruiting from outside) and annual reports readability. Based on a sample of large U.S. companies during the period 2004–2020, we predict and find that companies with insider CEOs issue more readable 10-K reports compared to those who hire from outside
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The effects of extreme high temperature spells on financial performance The British Accounting Review (IF 5.5) Pub Date : 2024-04-16 Paul A. Griffin, David H. Lont, Martien J.P. Lubberink
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The capital market consequence of sustained abnormal Audit fees: Evidence from stock price crash risk The British Accounting Review (IF 5.5) Pub Date : 2024-04-16 Sang Mook Lee, Jong Chool Park, Hakjoon Song
Prior studies provide mixed interpretations for the effect of abnormal audit fees on audit quality. One interpretation is that abnormal audit fees reflect economic bonding which decreases audit quality, while the other interpretation is that they are associated with unobserved audit efforts and audit risk. We argue that long-term abnormal audit fees clarify mixed evidence, as they reflect the gradual
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High-quality assurance, ESG legitimacy threats and board effectiveness The British Accounting Review (IF 5.5) Pub Date : 2024-04-16 García-Meca Emma, Ruiz-Barbadillo Emiliano, Martínez-Ferrero Jennifer
This study aims to investigate whether companies engage high-quality assurance in response to legitimacy threats caused by media coverage of negative sustainability events. Since responsive strategies designed to maintain or repair legitimacy directly emanate from boards, the paper also analyses whether board effectiveness reinforces defensive strategies to maintain a company's reputational capital
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“Fly alone, die alone”? The clan and the production of tax expertise The British Accounting Review (IF 5.5) Pub Date : 2024-03-30 Maryse Mayer, Yves Gendron
How do tax advisors make themselves comfortable with the tax planning arrangements they recommend to their clients, in the many gray areas that characterize their field of practice? What motivates tax advisors to consult each other in this context? In this field study, we examine the processes that help (re)produce an influential informal norm of peer consultation surrounding the work of tax partners
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The effect of ESG-motivated turnover on firm financial risk The British Accounting Review (IF 5.5) Pub Date : 2024-03-27 Daewoung Choi, Yong Kyu Gam, Min Jung Kang, Hojong Shin
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Manager sentiment, deal characteristics, and takeover performance The British Accounting Review (IF 5.5) Pub Date : 2024-03-21 Suwei An, Yi Liu, Xiaofen Tan, Kai Wu
Various studies analyze the driving forces behind takeover activities, including investor sentiment, liquidity, and fundamental shocks. In this study, we examine how manager sentiment influences takeover characteristics and long-term performance using textual analysis of data in 10-K and 10-Q filings. Our findings identify that manager sentiment has strong positive predictive power for takeover activities
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On the role and effects of supervisor feedback sign in auditing: Evidence from a cohort of early career auditors. The British Accounting Review (IF 5.5) Pub Date : 2024-03-21 Tobias Johansson-Berg, Gustav Johed, Thomas Carrington
Supervisor feedback is essential for training and socialising early career auditors. One fundamental aspect and choice of a supervisor's feedback practice and style is whether to focus on encouraging good or discouraging poor performance. We acknowledge that early career auditors likely receive feedback on both good and poor performance in ongoing and extended feedback relationships with their closest
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The price of corporate social irresponsibility in seasoned equity offerings: International evidence The British Accounting Review (IF 5.5) Pub Date : 2024-03-13 Choy Yeing (Chloe) Ho, Eliza Wu, Jing Yu
We examine the impact of poor corporate social responsibility engagement signalled through negative environmental and social (E&S) incidents on equity financing via seasoned equity offerings (SEOs) across 25 countries. The results show that negative E&S incidents significantly aggravate SEO underpricing, thereby increasing the cost of raising equity capital. Managers appear to take the adverse effects
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Hybrid board governance: Exploring the challenges in implementing social impact measurements The British Accounting Review (IF 5.5) Pub Date : 2024-03-05 Anup Banerjee, Martin Carlsson-Wall, Mattias Nordqvist
This paper focuses on hybrid board governance and the challenges faced by the board of directors when implementing social impact measurements. Interviews with 36 board chairs and general secretaries in social hybrids in Sweden show that while boards support social impact measurements, they face obstacles in implementing them. Drawing on the institutional logics framework, we identify three main reasons
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Blockchain and earnings management: Evidence from the supply chain The British Accounting Review (IF 5.5) Pub Date : 2024-02-23 Donald Autore, Huimin (Amy) Chen, Nicholas Clarke, Jingrong Lin
We investigate whether corporate adoption of blockchain technology is associated with a change in firms' financial reporting behavior. On one hand, the features of blockchain technology (immutability, decentralized consensus, and real-time data sharing) can enhance data integrity, suggesting corporate blockchain adoptions may reduce earnings management. However, despite fast growth in blockchain adoptions
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On professional destabilization and accounting self-regulation The British Accounting Review (IF 5.5) Pub Date : 2024-02-20 Zachary Huxley, Marion Brivot
The accounting profession faces significant upheaval due to numerous destabilizations in its environment, with financialization being particularly impactful. This paper introduces a theoretical framework to dissect how the profession reacts to such disruptions. We posit that destabilizations give rise to novel types of misconduct, leading professional bodies to re-evaluate their definitions of (un)acceptable
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Dynamics of carbon risk, cost of debt and leverage adjustments The British Accounting Review (IF 5.5) Pub Date : 2024-02-07 Douglas Cumming, Geeta Duppati, Ruwani Fernando, Shivendu Pratap Singh, Aviral Tiwari
We evaluate the effects of carbon risk on the speed at which corporations adjust their leverage for the period 2006–2020. Primarily we address the question: Does national carbon risk impact firm-level speed of adjustment (SOA)? To address the main question, our study further classifies the companies in the sample based on borrowing costs and carbon risk. By doing so, we report on how borrowing costs