Asian Review of AccountingTable of Contents for Asian Review of Accounting. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/1321-7348/vol/32/iss/2?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestAsian Review of AccountingEmerald Publishing LimitedAsian Review of AccountingAsian Review of Accountinghttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/f6e2bca5028aad56770c20f04a2be665/urn:emeraldgroup.com:asset:id:binary:ara.cover.jpghttps://www.emerald.com/insight/publication/issn/1321-7348/vol/32/iss/2?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe functional background of the compensation committee chair: the choice and weight of performance measures in CEO compensationhttps://www.emerald.com/insight/content/doi/10.1108/ARA-01-2023-0019/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe authors analyze the association between the functional background of the compensation committee chair and CEO compensation. The analysis is motivated by the continuing debate about the reasonableness of executive pay patterns and the growing emphasis on the role of compensation committees. The authors define three expert categories—accounting, finance, and generalist—and collect data on the compensation committee (CC) chairs of the S&P 500 firms from 2008 to 2018. The authors run an ordinary least square model and regress CEO total and cash compensation on the three expert categories. The authors find that firms in which the CC chair has expertise in accounting, finance, and general business favor performance measures that are more aligned with accounting, finance, and general business, respectively. There is little evidence that CC chairs who are CEOs of other firms endorse more generous pay for the host CEO; the authors find some evidence that CC chairs tenure relative to the host CEO's is negatively associated with the level of the CEO's pay. This study suggests that firms and regulators should consider the background of the compensation committee chair to understand the variations in top executive. Companies desiring to link executive compensation to particular areas of strategy must also consider matching the functional background of the compensation committee chair with the target strategy areas. From regulatory standpoint, requiring compensation committees to operate independent of inside directors can reduce attempts by inside directors to skim the process, but a failure to also consider the impact of compensation committees' discretion over the pay-setting process can distort the executives' pay-performance relation. This is the first study to examine the effects of the functional background of the compensation committee chair on CEO compensation.The functional background of the compensation committee chair: the choice and weight of performance measures in CEO compensation
Rachana Kalelkar, Emeka Nwaeze
Asian Review of Accounting, Vol. 32, No. 2, pp.189-222

The authors analyze the association between the functional background of the compensation committee chair and CEO compensation. The analysis is motivated by the continuing debate about the reasonableness of executive pay patterns and the growing emphasis on the role of compensation committees.

The authors define three expert categories—accounting, finance, and generalist—and collect data on the compensation committee (CC) chairs of the S&P 500 firms from 2008 to 2018. The authors run an ordinary least square model and regress CEO total and cash compensation on the three expert categories.

The authors find that firms in which the CC chair has expertise in accounting, finance, and general business favor performance measures that are more aligned with accounting, finance, and general business, respectively. There is little evidence that CC chairs who are CEOs of other firms endorse more generous pay for the host CEO; the authors find some evidence that CC chairs tenure relative to the host CEO's is negatively associated with the level of the CEO's pay.

This study suggests that firms and regulators should consider the background of the compensation committee chair to understand the variations in top executive.

Companies desiring to link executive compensation to particular areas of strategy must also consider matching the functional background of the compensation committee chair with the target strategy areas. From regulatory standpoint, requiring compensation committees to operate independent of inside directors can reduce attempts by inside directors to skim the process, but a failure to also consider the impact of compensation committees' discretion over the pay-setting process can distort the executives' pay-performance relation.

This is the first study to examine the effects of the functional background of the compensation committee chair on CEO compensation.

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The functional background of the compensation committee chair: the choice and weight of performance measures in CEO compensation10.1108/ARA-01-2023-0019Asian Review of Accounting2023-09-14© 2023 Emerald Publishing LimitedRachana KalelkarEmeka NwaezeAsian Review of Accounting3222023-09-1410.1108/ARA-01-2023-0019https://www.emerald.com/insight/content/doi/10.1108/ARA-01-2023-0019/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Changes in accounting estimates during the COVID-19 pandemic in the USAhttps://www.emerald.com/insight/content/doi/10.1108/ARA-10-2022-0243/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe authors investigate how managers adapt their financial reporting and disclosure practices in response to the COVID-19 pandemic through changes in accounting estimates (CAEs). The authors define the pandemic period as starting on March 1, 2020. The sample consists of 9,575 CAEs disclosed in quarterly (10-Qs) and annual (10-Ks) financial reports by US firms between January 1, 2004 and May 31, 2022. The authors perform multivariate analyses of the impact of the COVID-19 pandemic on the incidence of CAEs and on whether the impact of CAEs on firms' financial performance and reporting quality changes during the pandemic. In the examination of the CAE footnote disclosures in the quarterly (10-Qs) and annual (10-Ks) reports of US companies, the authors find no evidence that the incidence of CAEs in 10-Ks or the number of firms reporting CAEs are significantly different in the pre-pandemic and pandemic periods, but the incidence of CAEs in 10-Qs is significantly higher in the pandemic period than in the pre-pandemic period. The authors also find that the number of CAEs related to revenue recognition increase significantly in the pandemic period, but CAEs in other categories decrease, with the sharpest drop seen in the liabilities category. Further investigation suggests that although the dollar impact of 10-K CAEs on current financial statements is higher during the pandemic period, firms with CAEs, especially positive CAEs, in either 10-Ks or 10-Qs are less likely to use CAEs to boost earnings in the pandemic period. However, the authors find evidence that firms tend to use CAEs to “big bath” current earnings and create reserve for future period. The authors have not observed any significant differences in how the various phases of the pandemic affect the reporting of CAEs. Additionally, there is no evidence to suggest that financially distressed firms report more or fewer CAEs during the pandemic. The results are consistent with the notion that, during the pandemic, firms exercise greater caution in their CAE disclosures, refraining from using CAEs as a means of boosting earnings but as a strategy to create reserve for future period. The paper highlights the challenges that various stakeholders face when assessing a company's current and future financial performance based on management's accounting estimates. This study captures the impact of the COVID-19 pandemic on the incidence of CAEs and CAEs' impact on the financial performance and financial reporting quality of firms during the pandemic.Changes in accounting estimates during the COVID-19 pandemic in the USA
Valerie Li, Yan Luo
Asian Review of Accounting, Vol. 32, No. 2, pp.223-248

The authors investigate how managers adapt their financial reporting and disclosure practices in response to the COVID-19 pandemic through changes in accounting estimates (CAEs).

The authors define the pandemic period as starting on March 1, 2020. The sample consists of 9,575 CAEs disclosed in quarterly (10-Qs) and annual (10-Ks) financial reports by US firms between January 1, 2004 and May 31, 2022. The authors perform multivariate analyses of the impact of the COVID-19 pandemic on the incidence of CAEs and on whether the impact of CAEs on firms' financial performance and reporting quality changes during the pandemic.

In the examination of the CAE footnote disclosures in the quarterly (10-Qs) and annual (10-Ks) reports of US companies, the authors find no evidence that the incidence of CAEs in 10-Ks or the number of firms reporting CAEs are significantly different in the pre-pandemic and pandemic periods, but the incidence of CAEs in 10-Qs is significantly higher in the pandemic period than in the pre-pandemic period. The authors also find that the number of CAEs related to revenue recognition increase significantly in the pandemic period, but CAEs in other categories decrease, with the sharpest drop seen in the liabilities category. Further investigation suggests that although the dollar impact of 10-K CAEs on current financial statements is higher during the pandemic period, firms with CAEs, especially positive CAEs, in either 10-Ks or 10-Qs are less likely to use CAEs to boost earnings in the pandemic period. However, the authors find evidence that firms tend to use CAEs to “big bath” current earnings and create reserve for future period. The authors have not observed any significant differences in how the various phases of the pandemic affect the reporting of CAEs. Additionally, there is no evidence to suggest that financially distressed firms report more or fewer CAEs during the pandemic.

The results are consistent with the notion that, during the pandemic, firms exercise greater caution in their CAE disclosures, refraining from using CAEs as a means of boosting earnings but as a strategy to create reserve for future period. The paper highlights the challenges that various stakeholders face when assessing a company's current and future financial performance based on management's accounting estimates.

This study captures the impact of the COVID-19 pandemic on the incidence of CAEs and CAEs' impact on the financial performance and financial reporting quality of firms during the pandemic.

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Changes in accounting estimates during the COVID-19 pandemic in the USA10.1108/ARA-10-2022-0243Asian Review of Accounting2023-09-22© 2023 Emerald Publishing LimitedValerie LiYan LuoAsian Review of Accounting3222023-09-2210.1108/ARA-10-2022-0243https://www.emerald.com/insight/content/doi/10.1108/ARA-10-2022-0243/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Shrinking the capital costs and beta risk impediments through ESG: study of an emerging markethttps://www.emerald.com/insight/content/doi/10.1108/ARA-05-2023-0130/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to empirically examine environment, social, and governance (ESG) as an effective strategy to reduce major impediments for a corporation in the form of costs of capital (COC) and systematic risk, especially for emerging markets such as India. A sample of 114 Indian firms from eight prominent industries based on Thomson Reuters classification (TRBC) are used in the study. A panel regression with industry-fixed effects is carried out to account for industry heterogeneity. For robustness, the authors also carry out a matched sample analysis. The authors observe a negative and significant relationship between ESG performance with COC and systematic risk, respectively. For the pillar-wise analysis, the authors observe that only governance performance is negatively and significantly related to COC whereas the environmental and social performances are negative and insignificant. For ESG pillar level analysis for beta, the authors observe that all pillars are negative and significant, thus making a case for how firms can fine-tune their ESG strategies according to each pillar. As the ESG concept is still in a very nascent stage, data availability is a definite challenge in India. As ESG is increasingly becoming relevant for multiple stakeholders, this study aims to provide evidence that can potentially guide the regulators, practitioners, and academicians to address the contemporary needs of these stakeholders, while also doing good for the firm in the traditional sense. The transition to a sustainable economy is a challenge for emerging economies, especially for a country like India where stakeholders are not only varied but also huge in number. With this study's contribution towards an incremental understanding of ESG, Indian regulators and policymakers can bring forward mandates as to ESG compliances that are rewarding for the firms and give them enough impetus towards complying with ESG norms. The extant literature on ESG majorly discusses the relationship between ESG performance and financial performance. This study addresses the lacuna of the relationship of ESG with COC and beta in the Indian context.Shrinking the capital costs and beta risk impediments through ESG: study of an emerging market
Santushti Gupta, Divya Aggarwal
Asian Review of Accounting, Vol. 32, No. 2, pp.249-277

This study aims to empirically examine environment, social, and governance (ESG) as an effective strategy to reduce major impediments for a corporation in the form of costs of capital (COC) and systematic risk, especially for emerging markets such as India.

A sample of 114 Indian firms from eight prominent industries based on Thomson Reuters classification (TRBC) are used in the study. A panel regression with industry-fixed effects is carried out to account for industry heterogeneity. For robustness, the authors also carry out a matched sample analysis.

The authors observe a negative and significant relationship between ESG performance with COC and systematic risk, respectively. For the pillar-wise analysis, the authors observe that only governance performance is negatively and significantly related to COC whereas the environmental and social performances are negative and insignificant. For ESG pillar level analysis for beta, the authors observe that all pillars are negative and significant, thus making a case for how firms can fine-tune their ESG strategies according to each pillar.

As the ESG concept is still in a very nascent stage, data availability is a definite challenge in India.

As ESG is increasingly becoming relevant for multiple stakeholders, this study aims to provide evidence that can potentially guide the regulators, practitioners, and academicians to address the contemporary needs of these stakeholders, while also doing good for the firm in the traditional sense.

The transition to a sustainable economy is a challenge for emerging economies, especially for a country like India where stakeholders are not only varied but also huge in number. With this study's contribution towards an incremental understanding of ESG, Indian regulators and policymakers can bring forward mandates as to ESG compliances that are rewarding for the firms and give them enough impetus towards complying with ESG norms.

The extant literature on ESG majorly discusses the relationship between ESG performance and financial performance. This study addresses the lacuna of the relationship of ESG with COC and beta in the Indian context.

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Shrinking the capital costs and beta risk impediments through ESG: study of an emerging market10.1108/ARA-05-2023-0130Asian Review of Accounting2023-10-24© 2023 Emerald Publishing LimitedSantushti GuptaDivya AggarwalAsian Review of Accounting3222023-10-2410.1108/ARA-05-2023-0130https://www.emerald.com/insight/content/doi/10.1108/ARA-05-2023-0130/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Energy hedging and annual report readabilityhttps://www.emerald.com/insight/content/doi/10.1108/ARA-04-2023-0119/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestUsing a sample of oil and gas firms in the USA, the study examines the relation between the presence of hedging and annual report readability. The authors use regression analysis to examine the relation between the presence of hedging and annual report readability. The authors find that annual reports of firms with the use of hedging are less readable (i.e. difficult to read and understand). The authors also find that the primary results are more pronounced for firms with a higher level of business volatility. The study contributes to the finance literature on the use and value of hedging and to the accounting literature on the determinants of annual report readability. The Securities and Exchange Commission (SEC) has persistently asked companies to improve the readability of their disclosures to stakeholders (SEC, 1998; 2013, 2014). Hence, the study not only identifies a potential determinant (i.e. hedging) that may influence the level of readability but also supports the current regulatory policy by the SEC, which is encouraging companies to improve readability.Energy hedging and annual report readability
Thomas Kim, Li Sun
Asian Review of Accounting, Vol. 32, No. 2, pp.278-301

Using a sample of oil and gas firms in the USA, the study examines the relation between the presence of hedging and annual report readability.

The authors use regression analysis to examine the relation between the presence of hedging and annual report readability.

The authors find that annual reports of firms with the use of hedging are less readable (i.e. difficult to read and understand). The authors also find that the primary results are more pronounced for firms with a higher level of business volatility.

The study contributes to the finance literature on the use and value of hedging and to the accounting literature on the determinants of annual report readability. The Securities and Exchange Commission (SEC) has persistently asked companies to improve the readability of their disclosures to stakeholders (SEC, 1998; 2013, 2014). Hence, the study not only identifies a potential determinant (i.e. hedging) that may influence the level of readability but also supports the current regulatory policy by the SEC, which is encouraging companies to improve readability.

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Energy hedging and annual report readability10.1108/ARA-04-2023-0119Asian Review of Accounting2023-10-06© 2023 Emerald Publishing LimitedThomas KimLi SunAsian Review of Accounting3222023-10-0610.1108/ARA-04-2023-0119https://www.emerald.com/insight/content/doi/10.1108/ARA-04-2023-0119/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Listing on environmental, social and governance index and financial distress: does the difference-in-differences matter?https://www.emerald.com/insight/content/doi/10.1108/ARA-07-2023-0197/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestEnvironmental, social and governance (ESG) issues have become the cornerstone of investment decisions in firms today. With that, publicly traded ESG indices (like the BSE ESG 100 index in India) have come into existence. The existing literature signifies that ESG generates financial implications and induces stability. The current study aims to test whether the firms listed on the ESG index (ESG-sensitive firms) face less financial distress than those not listed on such an index. The study applies panel data difference-in-differences (DID) regression by considering ESG as an unstaggered treatment to 74 non-financial firms listed on India's Bombay Stock Exchanges (BSE) 100 index. In total, 42 firms are ESG treated as they got listed on the BSE ESG 100 index, formed in 2017. The remaining 32 firms form the control group. The confidence intervals and standard errors are estimated using clustered robust errors and the Donald and Lang method. Listing on the ESG index matters for financial stability; differences in financial distress are significant on financial distress. ESG-sensitive firms face less financial distress than non-ESG firms (or firms not perceived as ESG-sensitive). The results are consistent across two financial distress measures, Altman z-scores for emerged and emerging markets. Thus, the DID in distress status between ESG-sensitive and non-ESG firms matter. The study creates vibrant implications for practitioners using ESG to reduce financial distress. The study is one of its kind to test the treatment effects of ESG on firm value and quantify treatment effects on financial distress.Listing on environmental, social and governance index and financial distress: does the difference-in-differences matter?
Kuldeep Singh
Asian Review of Accounting, Vol. 32, No. 2, pp.302-326

Environmental, social and governance (ESG) issues have become the cornerstone of investment decisions in firms today. With that, publicly traded ESG indices (like the BSE ESG 100 index in India) have come into existence. The existing literature signifies that ESG generates financial implications and induces stability. The current study aims to test whether the firms listed on the ESG index (ESG-sensitive firms) face less financial distress than those not listed on such an index.

The study applies panel data difference-in-differences (DID) regression by considering ESG as an unstaggered treatment to 74 non-financial firms listed on India's Bombay Stock Exchanges (BSE) 100 index. In total, 42 firms are ESG treated as they got listed on the BSE ESG 100 index, formed in 2017. The remaining 32 firms form the control group. The confidence intervals and standard errors are estimated using clustered robust errors and the Donald and Lang method.

Listing on the ESG index matters for financial stability; differences in financial distress are significant on financial distress. ESG-sensitive firms face less financial distress than non-ESG firms (or firms not perceived as ESG-sensitive). The results are consistent across two financial distress measures, Altman z-scores for emerged and emerging markets. Thus, the DID in distress status between ESG-sensitive and non-ESG firms matter.

The study creates vibrant implications for practitioners using ESG to reduce financial distress.

The study is one of its kind to test the treatment effects of ESG on firm value and quantify treatment effects on financial distress.

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Listing on environmental, social and governance index and financial distress: does the difference-in-differences matter?10.1108/ARA-07-2023-0197Asian Review of Accounting2023-10-20© 2023 Emerald Publishing LimitedKuldeep SinghAsian Review of Accounting3222023-10-2010.1108/ARA-07-2023-0197https://www.emerald.com/insight/content/doi/10.1108/ARA-07-2023-0197/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Temporal changes of compassion in accounting and business students in an English course: a longitudinal study in higher educationhttps://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0040/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestTo measure the dynamic features of compassion as an emotional and behavioral construct, the present research used a univariate latent growth modeling (LGM) approach within the structural equation modeling (SEM) framework. The aim was to trace the dynamic development of compassion longitudinally in accounting and business students during a three-credit English course at university. The suggested method ensures the measurement invariance over time, deals with the first order latent variable, traces its growth and takes into account the measurement errors. This longitudinal analytical method was used to explore the initial state and the growth of compassion in four points of time during a language course. The data were collected from 60 adult accounting and business students in four time phases using Sprecher and Fehr's Compassionate Love Scale and were analyzed in Mplus 8.4 with univariate LGM. The model fit was accepted and the invariance of the latent factor was confirmed over time. The negative covariance between intercept and slope (second-order latent variables) suggested that lower initial scores in L2 learners' compassion show a faster increase in compassion over time as the mean of slope is larger than that of the intercept. L2 learners who started off at a higher level of compassion showed a slower change in compassion over time. This can be at least partly explained by the teacher's motivating role or learners' compassion but needs to be further explored in complementary qualitative phases for deeper insights. In the present research, awareness was raised of the developmental nature of compassion as an emotional and behavioral construct essential to the accounting and business profession. The great strength of this research lies in the dynamic approach to the compassion construct and the LGM used to capture the temporal growth of compassion and how it evolved through the L2 course.Temporal changes of compassion in accounting and business students in an English course: a longitudinal study in higher education
Arash Arianpoor, Elham Yazdanmehr, Majid Elahi Shirvan
Asian Review of Accounting, Vol. 32, No. 2, pp.327-342

To measure the dynamic features of compassion as an emotional and behavioral construct, the present research used a univariate latent growth modeling (LGM) approach within the structural equation modeling (SEM) framework. The aim was to trace the dynamic development of compassion longitudinally in accounting and business students during a three-credit English course at university.

The suggested method ensures the measurement invariance over time, deals with the first order latent variable, traces its growth and takes into account the measurement errors. This longitudinal analytical method was used to explore the initial state and the growth of compassion in four points of time during a language course. The data were collected from 60 adult accounting and business students in four time phases using Sprecher and Fehr's Compassionate Love Scale and were analyzed in Mplus 8.4 with univariate LGM.

The model fit was accepted and the invariance of the latent factor was confirmed over time. The negative covariance between intercept and slope (second-order latent variables) suggested that lower initial scores in L2 learners' compassion show a faster increase in compassion over time as the mean of slope is larger than that of the intercept. L2 learners who started off at a higher level of compassion showed a slower change in compassion over time. This can be at least partly explained by the teacher's motivating role or learners' compassion but needs to be further explored in complementary qualitative phases for deeper insights.

In the present research, awareness was raised of the developmental nature of compassion as an emotional and behavioral construct essential to the accounting and business profession. The great strength of this research lies in the dynamic approach to the compassion construct and the LGM used to capture the temporal growth of compassion and how it evolved through the L2 course.

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Temporal changes of compassion in accounting and business students in an English course: a longitudinal study in higher education10.1108/ARA-02-2023-0040Asian Review of Accounting2023-10-20© 2023 Emerald Publishing LimitedArash ArianpoorElham YazdanmehrMajid Elahi ShirvanAsian Review of Accounting3222023-10-2010.1108/ARA-02-2023-0040https://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0040/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Discussion of “the functional background of the compensation committee chair: the choice and weight of performance measures in CEO compensation”https://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0237/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestNwaeze and Kalelkar (2023) examine the association between the functional background of the compensation committee chair (CC chair) and CEO compensation using S&P 500 firms from 2008 to 2018. They find that the CC chair's functional background is positively associated with the adoption of performance measures that are more aligned with such background. This discussion starts with Nwaeze and Kalelkar's (2023) incremental contribution, and offers suggestions on two areas for improvement. First, the authors could provide a more focused discussion of the conceptual framework. Second, the authors could improve their empirical design and interpretation of results. Avenues for future research are also suggested. This discussion suggests methods and model specifications that may strengthen the research design, facilitate the interpretation of results, and provide additional insights. The discussed paper could improve the reliability and rigor of the empirical tests and the conclusions by providing more contextual and granular information on firms' actual CEO compensation arrangements, using more careful testing procedures, and enhancing clarity in the writing. Researchers could be interested in alternative perspectives and richer analyses of non-agency model based determinants of CEO compensation.Discussion of “the functional background of the compensation committee chair: the choice and weight of performance measures in CEO compensation”
Stephen Gong
Asian Review of Accounting, Vol. 32, No. 2, pp.343-348

Nwaeze and Kalelkar (2023) examine the association between the functional background of the compensation committee chair (CC chair) and CEO compensation using S&P 500 firms from 2008 to 2018. They find that the CC chair's functional background is positively associated with the adoption of performance measures that are more aligned with such background. This discussion starts with Nwaeze and Kalelkar's (2023) incremental contribution, and offers suggestions on two areas for improvement. First, the authors could provide a more focused discussion of the conceptual framework. Second, the authors could improve their empirical design and interpretation of results. Avenues for future research are also suggested.

This discussion suggests methods and model specifications that may strengthen the research design, facilitate the interpretation of results, and provide additional insights.

The discussed paper could improve the reliability and rigor of the empirical tests and the conclusions by providing more contextual and granular information on firms' actual CEO compensation arrangements, using more careful testing procedures, and enhancing clarity in the writing.

Researchers could be interested in alternative perspectives and richer analyses of non-agency model based determinants of CEO compensation.

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Discussion of “the functional background of the compensation committee chair: the choice and weight of performance measures in CEO compensation”10.1108/ARA-08-2023-0237Asian Review of Accounting2023-10-24© 2023 Emerald Publishing LimitedStephen GongAsian Review of Accounting3222023-10-2410.1108/ARA-08-2023-0237https://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0237/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Factors that affect the application of integrated report in listed companies in Vietnamhttps://www.emerald.com/insight/content/doi/10.1108/ARA-03-2023-0073/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to apply the theory of planned behavior, the theory of stakeholders, the theory of technology acceptance to evaluate the factors that affect the application of integrated reporting in Vietnamese listed companies. Quantitative research method was used through survey questionnaire. Research data is collected from 144 directors, accountants, administrators of companies listed on Vietnam stock market in the period 2020–2022. Multivariable regression analysis is performed with three independent variables: usefulness, ease of use and environmental influence. Dependent variable is intended to apply integrated report. Research results show that all independent variables have a positive impact on the dependent variable. In particular, the environment influence variable has the largest impact (0.443), followed by the level of impact of Usefulness” variable and “Ease of use” variable are 0.243 and 0.241, respectively. The regression model manages to explain 52.8% of the impact of the factors on the application of integrated reports. An analysis of the differences between groups of enterprises by staff size and capital size is carried out, the results hereof show that large enterprises tend to apply more integrated reporting. From the research results, the authors propose recommendations to promote the application of integrated reporting in Vietnamese enterprises to gradually improve the quality of information disclosure, attract investment and accelerate international economic integration. The study evaluates the current situation of integrated reporting of Vietnamese companies to understand the factors affecting the use of integrated reporting, from which to propose recommendations to promote the application of integrated reporting in Vietnamese enterprises to gradually improve the quality of information disclosure, attract investment and accelerate international economic integration.Factors that affect the application of integrated report in listed companies in Vietnam
Anh Thi Kim Vu, Ngoc Thi Bui, Du Thi Tran
Asian Review of Accounting, Vol. 32, No. 2, pp.349-369

This study aims to apply the theory of planned behavior, the theory of stakeholders, the theory of technology acceptance to evaluate the factors that affect the application of integrated reporting in Vietnamese listed companies.

Quantitative research method was used through survey questionnaire. Research data is collected from 144 directors, accountants, administrators of companies listed on Vietnam stock market in the period 2020–2022. Multivariable regression analysis is performed with three independent variables: usefulness, ease of use and environmental influence. Dependent variable is intended to apply integrated report.

Research results show that all independent variables have a positive impact on the dependent variable. In particular, the environment influence variable has the largest impact (0.443), followed by the level of impact of Usefulness” variable and “Ease of use” variable are 0.243 and 0.241, respectively. The regression model manages to explain 52.8% of the impact of the factors on the application of integrated reports. An analysis of the differences between groups of enterprises by staff size and capital size is carried out, the results hereof show that large enterprises tend to apply more integrated reporting. From the research results, the authors propose recommendations to promote the application of integrated reporting in Vietnamese enterprises to gradually improve the quality of information disclosure, attract investment and accelerate international economic integration.

The study evaluates the current situation of integrated reporting of Vietnamese companies to understand the factors affecting the use of integrated reporting, from which to propose recommendations to promote the application of integrated reporting in Vietnamese enterprises to gradually improve the quality of information disclosure, attract investment and accelerate international economic integration.

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Factors that affect the application of integrated report in listed companies in Vietnam10.1108/ARA-03-2023-0073Asian Review of Accounting2023-11-13© 2023 Emerald Publishing LimitedAnh Thi Kim VuNgoc Thi BuiDu Thi TranAsian Review of Accounting3222023-11-1310.1108/ARA-03-2023-0073https://www.emerald.com/insight/content/doi/10.1108/ARA-03-2023-0073/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Tone complexity and analyst forecast behaviors: evidence from earnings conference callshttps://www.emerald.com/insight/content/doi/10.1108/ARA-01-2023-0009/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestBoth the SEC (Securities and Exchange Commission) and the popular press have routinely criticized firms for the complexity of their financial disclosures. This study aims to investigate how financial analysts respond to the tone complexity of firm disclosures. Using approximately 20,000 earnings conference call transcripts of S&P 1,500 firms between 2005 and 2015, the authors first calculate the abnormal negative tone, the measure of tone complexity; then use such tone measure in econometric models to examine analyst forecast behavior. The authors also test the robustness of the results under different model specifications, tone word lists and alternative tone measure calculations. Consistent with the notion that analysts respond to the information demand from investors and incur more costs and effort to analyze firm disclosure when the tone is more complex, the authors find that higher tone complexity is positively and significantly associated with more analyst following, longer report duration, more forecast revisions, larger forecast error and larger forecast dispersion. In addition, the authors find that tone complexity has a long-term impact on analyst following but has a limited long-term impact on analyst report duration, analyst revision, forecast error and dispersion. This study complements existing literature by highlighting the information role of financial analysts and by providing evidence that analysts incorporate the management tone disclosed during conference calls to adjust their forecasting behaviors. The results can be used by policymakers as evidence and support for further improving firm communication from a new dimension of disclosure tone.Tone complexity and analyst forecast behaviors: evidence from earnings conference calls
Kyungeun Kwon, Mi Zhou, Tawei Wang, Xu Cheng, Zhilei Qiao
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

Both the SEC (Securities and Exchange Commission) and the popular press have routinely criticized firms for the complexity of their financial disclosures. This study aims to investigate how financial analysts respond to the tone complexity of firm disclosures.

Using approximately 20,000 earnings conference call transcripts of S&P 1,500 firms between 2005 and 2015, the authors first calculate the abnormal negative tone, the measure of tone complexity; then use such tone measure in econometric models to examine analyst forecast behavior. The authors also test the robustness of the results under different model specifications, tone word lists and alternative tone measure calculations.

Consistent with the notion that analysts respond to the information demand from investors and incur more costs and effort to analyze firm disclosure when the tone is more complex, the authors find that higher tone complexity is positively and significantly associated with more analyst following, longer report duration, more forecast revisions, larger forecast error and larger forecast dispersion. In addition, the authors find that tone complexity has a long-term impact on analyst following but has a limited long-term impact on analyst report duration, analyst revision, forecast error and dispersion.

This study complements existing literature by highlighting the information role of financial analysts and by providing evidence that analysts incorporate the management tone disclosed during conference calls to adjust their forecasting behaviors. The results can be used by policymakers as evidence and support for further improving firm communication from a new dimension of disclosure tone.

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Tone complexity and analyst forecast behaviors: evidence from earnings conference calls10.1108/ARA-01-2023-0009Asian Review of Accounting2023-10-31© 2023 Emerald Publishing LimitedKyungeun KwonMi ZhouTawei WangXu ChengZhilei QiaoAsian Review of Accountingahead-of-printahead-of-print2023-10-3110.1108/ARA-01-2023-0009https://www.emerald.com/insight/content/doi/10.1108/ARA-01-2023-0009/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A survey study of Iraqi auditors' adoption of blockchain technologyhttps://www.emerald.com/insight/content/doi/10.1108/ARA-01-2023-0015/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper seeks to investigate the factors influencing auditors' behavioural intentions towards blockchain technology (BT) adoption in Iraqi government banks. It also highlights the relationships between these factors to determine if the proposed model can provide a more comprehensive means of comprehending how auditors in government banks have adopted BT. The study uses the unified theory of acceptance and use of technology and expands it by incorporating five external constructs: “system trust”, “cost”, “transparency”, “security” and “auditor's skill.” This study employed a quantitative and exploratory methodology through the gathering and examination of data from 300 auditors. For the evaluation of the measurement and structural models, the authors adopted the partial least squares structural equation modelling approach with SmartPLS v4. The findings demonstrate that “auditor's skill and four government features of BT adoption” are major factors in government bank auditors' adoption of BT. Additionally, the findings indicate that social influence is a potent indicator of one's intention to adopt BT in the banking industry. One limit of this study is the selection of governmental perspective. This study is limited to auditors' opinions, who work at the government banks. Further studies may consider other perspectives in order to provide an in-depth analysis of blockchain. This paper offers valuable insights into the factors influencing the adoption of blockchain technology in Iraqi governmental banks. It provides empirical evidence supporting auditing units and internal auditors in enhancing their job performance through the adoption of such technology. This study contributes to the existing literature on technology adoption within the audit profession, specifically examining the use of blockchain technology. By exploring the features of technology adoption within government institutions in the auditing field, it introduces a new perspective, emphasizing the importance of auditor skills.A survey study of Iraqi auditors' adoption of blockchain technology
Rasha H. Majeed, Alaa A.D. Taha
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper seeks to investigate the factors influencing auditors' behavioural intentions towards blockchain technology (BT) adoption in Iraqi government banks. It also highlights the relationships between these factors to determine if the proposed model can provide a more comprehensive means of comprehending how auditors in government banks have adopted BT.

The study uses the unified theory of acceptance and use of technology and expands it by incorporating five external constructs: “system trust”, “cost”, “transparency”, “security” and “auditor's skill.” This study employed a quantitative and exploratory methodology through the gathering and examination of data from 300 auditors. For the evaluation of the measurement and structural models, the authors adopted the partial least squares structural equation modelling approach with SmartPLS v4.

The findings demonstrate that “auditor's skill and four government features of BT adoption” are major factors in government bank auditors' adoption of BT. Additionally, the findings indicate that social influence is a potent indicator of one's intention to adopt BT in the banking industry.

One limit of this study is the selection of governmental perspective. This study is limited to auditors' opinions, who work at the government banks. Further studies may consider other perspectives in order to provide an in-depth analysis of blockchain.

This paper offers valuable insights into the factors influencing the adoption of blockchain technology in Iraqi governmental banks. It provides empirical evidence supporting auditing units and internal auditors in enhancing their job performance through the adoption of such technology.

This study contributes to the existing literature on technology adoption within the audit profession, specifically examining the use of blockchain technology. By exploring the features of technology adoption within government institutions in the auditing field, it introduces a new perspective, emphasizing the importance of auditor skills.

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A survey study of Iraqi auditors' adoption of blockchain technology10.1108/ARA-01-2023-0015Asian Review of Accounting2023-11-27© 2023 Emerald Publishing LimitedRasha H. MajeedAlaa A.D. TahaAsian Review of Accountingahead-of-printahead-of-print2023-11-2710.1108/ARA-01-2023-0015https://www.emerald.com/insight/content/doi/10.1108/ARA-01-2023-0015/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The external organizational environment and its impact on strategic management accounting practices: an empirical investigationhttps://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0041/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the impact of organizational external environmental factors on strategic management accounting (SMA) usage in an emerging economy. The study collected data from 79 public limited companies listed with the Dhaka Stock Exchange (Bangladesh) through a questionnaire survey. Multiple regression analysis is employed to test the impact of external environmental variables such as perceived environmental uncertainty and intensity of competition on SMA usage. The study finds a significant positive impact of environmental uncertainty (fluctuation in the external environmental factors) and intensity of competition (domination by few companies) on SMA usage. However, the direction and magnitude of this impact vary considerably for specific groups of SMA practices such as costing, competitor accounting, customer accounting and planning and performance measurement techniques. This study shows the impact of several facets of environmental uncertainty (i.e. unpredictability, fluctuation, ambiguity, lack of information and uncertainty of the outcome of decision) and intensity of competition (i.e. stressfulness and domination) in the empirical-based SMA research.The external organizational environment and its impact on strategic management accounting practices: an empirical investigation
Md. Mamunur Rashid, Dewan Mahboob Hossain, Md. Saiful Alam
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the impact of organizational external environmental factors on strategic management accounting (SMA) usage in an emerging economy.

The study collected data from 79 public limited companies listed with the Dhaka Stock Exchange (Bangladesh) through a questionnaire survey. Multiple regression analysis is employed to test the impact of external environmental variables such as perceived environmental uncertainty and intensity of competition on SMA usage.

The study finds a significant positive impact of environmental uncertainty (fluctuation in the external environmental factors) and intensity of competition (domination by few companies) on SMA usage. However, the direction and magnitude of this impact vary considerably for specific groups of SMA practices such as costing, competitor accounting, customer accounting and planning and performance measurement techniques.

This study shows the impact of several facets of environmental uncertainty (i.e. unpredictability, fluctuation, ambiguity, lack of information and uncertainty of the outcome of decision) and intensity of competition (i.e. stressfulness and domination) in the empirical-based SMA research.

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The external organizational environment and its impact on strategic management accounting practices: an empirical investigation10.1108/ARA-02-2023-0041Asian Review of Accounting2023-11-24© 2023 Emerald Publishing LimitedMd. Mamunur RashidDewan Mahboob HossainMd. Saiful AlamAsian Review of Accountingahead-of-printahead-of-print2023-11-2410.1108/ARA-02-2023-0041https://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0041/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Navigating the capital investment through national governance in BRICS economies: the role of cash holdingshttps://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0043/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe current analysis aims to explore the role of cash holdings in the nexus of national governance and capital investment (CIN). To achieve this aim, the authors sample the nonfinancial enterprises from 5 Brazil, Russia, India, China, South Africa (BRICS) economies and employ system generalized method of moments(GMM) models as an estimation technique. The empirical analysis infers that national governance has a positive relationship with CIN and a negative relationship with cash holdings. The cash holdings negatively determine CIN. However, the cash holdings show a positive relationship with CIN in the presence of the national governance index (NGI). The important policy layout of the current analysis is that corporate managers should reduce cash holdings during better governance situations. Alternatively, corporate managers can disentangle the negative impact of bad country governance conditions on CIN by holding more cash. The study is innovative as it explores mediating impact of cash holdings in the NGI-CIN nexus.Navigating the capital investment through national governance in BRICS economies: the role of cash holdings
Umar Farooq, Ahmad A. Al-Naimi, Muhammad Irfanullah Arfeen, Mohammad Ahmad Alnaimat
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

The current analysis aims to explore the role of cash holdings in the nexus of national governance and capital investment (CIN).

To achieve this aim, the authors sample the nonfinancial enterprises from 5 Brazil, Russia, India, China, South Africa (BRICS) economies and employ system generalized method of moments(GMM) models as an estimation technique.

The empirical analysis infers that national governance has a positive relationship with CIN and a negative relationship with cash holdings. The cash holdings negatively determine CIN. However, the cash holdings show a positive relationship with CIN in the presence of the national governance index (NGI).

The important policy layout of the current analysis is that corporate managers should reduce cash holdings during better governance situations. Alternatively, corporate managers can disentangle the negative impact of bad country governance conditions on CIN by holding more cash.

The study is innovative as it explores mediating impact of cash holdings in the NGI-CIN nexus.

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Navigating the capital investment through national governance in BRICS economies: the role of cash holdings10.1108/ARA-02-2023-0043Asian Review of Accounting2023-11-21© 2023 Emerald Publishing LimitedUmar FarooqAhmad A. Al-NaimiMuhammad Irfanullah ArfeenMohammad Ahmad AlnaimatAsian Review of Accountingahead-of-printahead-of-print2023-11-2110.1108/ARA-02-2023-0043https://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0043/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Detecting future financial statement fraud using a machine learning model in Indonesia: a comparative studyhttps://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0062/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to compare machine learning models, datasets and splitting training-testing using data mining methods to detect financial statement fraud. This study uses a quantitative approach from secondary data on the financial reports of companies listed on the Indonesia Stock Exchange in the last ten years, from 2010 to 2019. Research variables use financial and non-financial variables. Indicators of financial statement fraud are determined based on notes or sanctions from regulators and financial statement restatements with special supervision. The findings show that the Extremely Randomized Trees (ERT) model performs better than other machine learning models. The best original-sampling dataset compared to other dataset treatments. Training testing splitting 80:10 is the best compared to other training-testing splitting treatments. So the ERT model with an original-sampling dataset and 80:10 training-testing splitting are the most appropriate for detecting future financial statement fraud. This study can be used by regulators, investors, stakeholders and financial crime experts to add insight into better methods of detecting financial statement fraud. This study proposes a machine learning model that has not been discussed in previous studies and performs comparisons to obtain the best financial statement fraud detection results. Practitioners and academics can use findings for further research development.Detecting future financial statement fraud using a machine learning model in Indonesia: a comparative study
Moh. Riskiyadi
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to compare machine learning models, datasets and splitting training-testing using data mining methods to detect financial statement fraud.

This study uses a quantitative approach from secondary data on the financial reports of companies listed on the Indonesia Stock Exchange in the last ten years, from 2010 to 2019. Research variables use financial and non-financial variables. Indicators of financial statement fraud are determined based on notes or sanctions from regulators and financial statement restatements with special supervision.

The findings show that the Extremely Randomized Trees (ERT) model performs better than other machine learning models. The best original-sampling dataset compared to other dataset treatments. Training testing splitting 80:10 is the best compared to other training-testing splitting treatments. So the ERT model with an original-sampling dataset and 80:10 training-testing splitting are the most appropriate for detecting future financial statement fraud.

This study can be used by regulators, investors, stakeholders and financial crime experts to add insight into better methods of detecting financial statement fraud.

This study proposes a machine learning model that has not been discussed in previous studies and performs comparisons to obtain the best financial statement fraud detection results. Practitioners and academics can use findings for further research development.

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Detecting future financial statement fraud using a machine learning model in Indonesia: a comparative study10.1108/ARA-02-2023-0062Asian Review of Accounting2023-09-28© 2023 Emerald Publishing LimitedMoh. RiskiyadiAsian Review of Accountingahead-of-printahead-of-print2023-09-2810.1108/ARA-02-2023-0062https://www.emerald.com/insight/content/doi/10.1108/ARA-02-2023-0062/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Justice, power and voluntary tax compliance: a moderation analysis among taxpayers in Addis Ababa, Ethiopiahttps://www.emerald.com/insight/content/doi/10.1108/ARA-03-2023-0072/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe aim of this study was to examine the moderating roles of the legitimate power and distributive justice of the tax authority on the effect of procedural justice on the voluntary tax compliance of taxpayers in Addis Ababa, the capital of Ethiopia, by using survey data collected from taxpayers in the city. Data for the study were collected from 800 sample taxpayers who were drawn by using a systematic sampling technique. The variables of the study were constructed as indices from composing the scale items developed and tested for their validity by prior researchers. Having collected the data by using a 7-point Likert scale questionnaire and forming the latent variables, hierarchical multiple regressions were applied to determine the moderating effects of the two variables (i.e. legitimate power and distributive justice) on the effect of procedural justice on voluntary tax compliance. The author found that both the legitimate power of the tax authority and distributive justice of the authority moderate the effect of procedural justice on voluntary tax compliance. The moderating roles of the two variables appear to be opposite in that low (but not high) distributive justice and high (but not low) legitimate power of the tax authority stimulate the effect of procedural justice on voluntary tax compliance. The first limitation is that the data used in this study are self-reported data while the subject of the study is sensitive subject about which respondents are not believed to provide genuine responses. This is presumably because taxpayers are less likely to confess their tax evasion as they fear legal actions following their self-report. Hence, other controlled methods such as the experimental design are recommended to replicate the results of this study. The second limitation is that data for the study were gathered through a one-time cross-sectional survey and hence it would not warrant a causal claim between the study variables. Consequently, other research with a longitudinal or experimental design might warrant a causal relationship between the variables. Therefore, the tax authorities must endeavor to attain high legitimacy by doing “the right things” as perceived by the taxpayers so that their tax-related decisions gain acceptance from the decision recipients. Tax policy makers as well ought to consider the importance of and the relationship between procedural justice, distributive justice and legitimate power of the tax authority in order to attain the maximum possible voluntary compliance of taxpayers that significantly reduces the administrative cost of taxes. The study benefits society by enhancing tax compliance and hence helping the government secure a better amount of tax revenue and provide better public goods and services. The findings of this study are of high theoretical and policy significance. Theoretically, the findings contribute to the integrative literature on economic deterrence and social-psychological factors that are responsible for voluntary tax compliance decisions. The parallel moderating roles of the two variables on the relationship between procedural justice and voluntary cooperation in a single model and in the tax compliance context are novel. In terms of applicability to policy formulations, they shed light on the need for a shift from a pure focus on aggressive tax audits and penalties, especially in emerging economies to a combination of the tax audits and the nurturing of the voluntary deference of taxpayers to the tax authority's decisions. Caution must, however, be taken that the results of this study may not be applicable to tax environments in other countries.Justice, power and voluntary tax compliance: a moderation analysis among taxpayers in Addis Ababa, Ethiopia
Lemessa Bayissa Gobena
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

The aim of this study was to examine the moderating roles of the legitimate power and distributive justice of the tax authority on the effect of procedural justice on the voluntary tax compliance of taxpayers in Addis Ababa, the capital of Ethiopia, by using survey data collected from taxpayers in the city.

Data for the study were collected from 800 sample taxpayers who were drawn by using a systematic sampling technique. The variables of the study were constructed as indices from composing the scale items developed and tested for their validity by prior researchers. Having collected the data by using a 7-point Likert scale questionnaire and forming the latent variables, hierarchical multiple regressions were applied to determine the moderating effects of the two variables (i.e. legitimate power and distributive justice) on the effect of procedural justice on voluntary tax compliance.

The author found that both the legitimate power of the tax authority and distributive justice of the authority moderate the effect of procedural justice on voluntary tax compliance. The moderating roles of the two variables appear to be opposite in that low (but not high) distributive justice and high (but not low) legitimate power of the tax authority stimulate the effect of procedural justice on voluntary tax compliance.

The first limitation is that the data used in this study are self-reported data while the subject of the study is sensitive subject about which respondents are not believed to provide genuine responses. This is presumably because taxpayers are less likely to confess their tax evasion as they fear legal actions following their self-report. Hence, other controlled methods such as the experimental design are recommended to replicate the results of this study. The second limitation is that data for the study were gathered through a one-time cross-sectional survey and hence it would not warrant a causal claim between the study variables. Consequently, other research with a longitudinal or experimental design might warrant a causal relationship between the variables.

Therefore, the tax authorities must endeavor to attain high legitimacy by doing “the right things” as perceived by the taxpayers so that their tax-related decisions gain acceptance from the decision recipients. Tax policy makers as well ought to consider the importance of and the relationship between procedural justice, distributive justice and legitimate power of the tax authority in order to attain the maximum possible voluntary compliance of taxpayers that significantly reduces the administrative cost of taxes.

The study benefits society by enhancing tax compliance and hence helping the government secure a better amount of tax revenue and provide better public goods and services.

The findings of this study are of high theoretical and policy significance. Theoretically, the findings contribute to the integrative literature on economic deterrence and social-psychological factors that are responsible for voluntary tax compliance decisions. The parallel moderating roles of the two variables on the relationship between procedural justice and voluntary cooperation in a single model and in the tax compliance context are novel. In terms of applicability to policy formulations, they shed light on the need for a shift from a pure focus on aggressive tax audits and penalties, especially in emerging economies to a combination of the tax audits and the nurturing of the voluntary deference of taxpayers to the tax authority's decisions. Caution must, however, be taken that the results of this study may not be applicable to tax environments in other countries.

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Justice, power and voluntary tax compliance: a moderation analysis among taxpayers in Addis Ababa, Ethiopia10.1108/ARA-03-2023-0072Asian Review of Accounting2023-11-23© 2023 Emerald Publishing LimitedLemessa Bayissa GobenaAsian Review of Accountingahead-of-printahead-of-print2023-11-2310.1108/ARA-03-2023-0072https://www.emerald.com/insight/content/doi/10.1108/ARA-03-2023-0072/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Blockchain technology roles to overcome accounting, accountability and assurance barriers in supply chain financehttps://www.emerald.com/insight/content/doi/10.1108/ARA-03-2023-0090/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestKnow your customer (KYC), accounting standards, issuance, clearing, and trade settlement became the major barrier to implement accounting, accountability and assurance process in supply chain finance (SCF). Blockchain technology features have the potential to solve accounting problems. This research focuses on exploring how blockchain technology provides solutions to overcome the barriers of accounting process in SCF. The benefits, opportunities, costs and risks related to blockchain adoption are also explored. Multi-case study and qualitative methods are used with a framework based on blockchain role to overcome the accounting process barriers. Ten blockchain projects in SCF and 29 interviews of participants as a unit of analysis are considered. The findings indicate that blockchain technology offers solutions to solve accounting, accountability and assurance problems in SCF. Validity, verification, smart contracts, automation and enduring data on trade transactions potentially solve those barriers. However, it is also necessary to consider costs such as implementation, technology, education and integration costs. Then there are possible risks such as regulatory compliance, operational, code development and scalability risk. This finding reflects the current status of blockchain technology roles in SCF. This study unveils blockchain's SCF accounting potential, emphasizing multi-case method limitations and future research prospects. Diverse contexts challenge findings' applicability, warranting cross-industry studies for deeper insights. Addressing selection bias and integrating quantitative measures can enhance understanding of blockchain's accounting impact. Accounting professionals can get an idea of the future direction and impact of blockchain technology on accounting, accountability and assurance processes. This study provides initial findings on the potential, costs and risks of blockchain that is beneficial for parties involved in SCF, especially for banks and insurance underwriters. In addition, the findings also provide direction for the contribution of blockchain technology to accounting theory in the future.Blockchain technology roles to overcome accounting, accountability and assurance barriers in supply chain finance
Arief Rijanto
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

Know your customer (KYC), accounting standards, issuance, clearing, and trade settlement became the major barrier to implement accounting, accountability and assurance process in supply chain finance (SCF). Blockchain technology features have the potential to solve accounting problems. This research focuses on exploring how blockchain technology provides solutions to overcome the barriers of accounting process in SCF. The benefits, opportunities, costs and risks related to blockchain adoption are also explored.

Multi-case study and qualitative methods are used with a framework based on blockchain role to overcome the accounting process barriers. Ten blockchain projects in SCF and 29 interviews of participants as a unit of analysis are considered.

The findings indicate that blockchain technology offers solutions to solve accounting, accountability and assurance problems in SCF. Validity, verification, smart contracts, automation and enduring data on trade transactions potentially solve those barriers. However, it is also necessary to consider costs such as implementation, technology, education and integration costs. Then there are possible risks such as regulatory compliance, operational, code development and scalability risk. This finding reflects the current status of blockchain technology roles in SCF.

This study unveils blockchain's SCF accounting potential, emphasizing multi-case method limitations and future research prospects. Diverse contexts challenge findings' applicability, warranting cross-industry studies for deeper insights. Addressing selection bias and integrating quantitative measures can enhance understanding of blockchain's accounting impact.

Accounting professionals can get an idea of the future direction and impact of blockchain technology on accounting, accountability and assurance processes.

This study provides initial findings on the potential, costs and risks of blockchain that is beneficial for parties involved in SCF, especially for banks and insurance underwriters. In addition, the findings also provide direction for the contribution of blockchain technology to accounting theory in the future.

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Blockchain technology roles to overcome accounting, accountability and assurance barriers in supply chain finance10.1108/ARA-03-2023-0090Asian Review of Accounting2024-01-16© 2024 Emerald Publishing LimitedArief RijantoAsian Review of Accountingahead-of-printahead-of-print2024-01-1610.1108/ARA-03-2023-0090https://www.emerald.com/insight/content/doi/10.1108/ARA-03-2023-0090/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Busy CEO and financial statement footnotes readability: evidence from Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/ARA-04-2023-0103/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the correlation between a CEO's business background and the readability of financial statement footnotes in Indonesia. This study utilizes a sample period spanning from 2010 to 2018 and employs various statistical tests, including Propensity Score Matching (PSM), Coarsened Exact Matching (CEM) and the Heckman Model, to demonstrate that it can address issues of causality and endogeneity without introducing bias. As a result, the findings of this study indicate a statistically significant negative relationship between CEOs with busy schedules and the readability of financial statement footnotes. This suggests that companies led by busy CEOs are more likely to have financial statement footnotes that are easier to read. These findings hold significance for clarifying research related to the challenges of contextual analysis in financial statement footnotes, which are distributed by companies on a sentence-by-sentence basis. The practical implications of the findings pertain to actionable steps that management can undertake and also offer regulators opportunities to monitor the potential for standard setting. Based on the results presented, the authors are optimistic that the findings will pave the way for broader research on the impact of a busy CEO, encompassing not only financial aspects but also non-financial dimensions. The growing popularity of readability is driven by the proliferation of textual reports that pose challenges in analysis and raise numerous inquiries.Busy CEO and financial statement footnotes readability: evidence from Indonesia
Iman Harymawan, Melinda Cahyaning Ratri, Eka Sari Ayuningtyas
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the correlation between a CEO's business background and the readability of financial statement footnotes in Indonesia.

This study utilizes a sample period spanning from 2010 to 2018 and employs various statistical tests, including Propensity Score Matching (PSM), Coarsened Exact Matching (CEM) and the Heckman Model, to demonstrate that it can address issues of causality and endogeneity without introducing bias.

As a result, the findings of this study indicate a statistically significant negative relationship between CEOs with busy schedules and the readability of financial statement footnotes. This suggests that companies led by busy CEOs are more likely to have financial statement footnotes that are easier to read.

These findings hold significance for clarifying research related to the challenges of contextual analysis in financial statement footnotes, which are distributed by companies on a sentence-by-sentence basis.

The practical implications of the findings pertain to actionable steps that management can undertake and also offer regulators opportunities to monitor the potential for standard setting.

Based on the results presented, the authors are optimistic that the findings will pave the way for broader research on the impact of a busy CEO, encompassing not only financial aspects but also non-financial dimensions. The growing popularity of readability is driven by the proliferation of textual reports that pose challenges in analysis and raise numerous inquiries.

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Busy CEO and financial statement footnotes readability: evidence from Indonesia10.1108/ARA-04-2023-0103Asian Review of Accounting2023-11-23© 2023 Emerald Publishing LimitedIman HarymawanMelinda Cahyaning RatriEka Sari AyuningtyasAsian Review of Accountingahead-of-printahead-of-print2023-11-2310.1108/ARA-04-2023-0103https://www.emerald.com/insight/content/doi/10.1108/ARA-04-2023-0103/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Mitigating overinvestment in Japanese zombie firms: the role of foreign ownership and earnings qualityhttps://www.emerald.com/insight/content/doi/10.1108/ARA-04-2023-0115/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study investigates the relationship between foreign ownership, earnings quality and overinvestment in Japanese zombie firms. The study makes use of data from Japanese firms listed on the first section of the Tokyo Stock Exchange from 2009 to 2019. The study employs logistic and multinomial logistic models to test whether the overinvestment behavior of zombie firms is mitigated by foreign shareholdings and earnings quality. The results show that (1) zombie firms tend to overinvest; (2) an increase in foreign ownership mitigates the overinvestment of zombie firms and (3) the mitigation of zombie firms' overinvestment by foreign ownership is stronger with higher earnings quality. This study extends the discussion of earnings quality and investment efficiency to the zombie firm setting. Previous studies in accounting suggest that high earnings quality enhances firms' investment efficiency. The findings suggest that both a change in ownership structure and high-quality accounting information are necessary to mitigate the inefficiency of zombie firms.Mitigating overinvestment in Japanese zombie firms: the role of foreign ownership and earnings quality
Takehide Ishiguro, Akihiro Yamada
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study investigates the relationship between foreign ownership, earnings quality and overinvestment in Japanese zombie firms.

The study makes use of data from Japanese firms listed on the first section of the Tokyo Stock Exchange from 2009 to 2019. The study employs logistic and multinomial logistic models to test whether the overinvestment behavior of zombie firms is mitigated by foreign shareholdings and earnings quality.

The results show that (1) zombie firms tend to overinvest; (2) an increase in foreign ownership mitigates the overinvestment of zombie firms and (3) the mitigation of zombie firms' overinvestment by foreign ownership is stronger with higher earnings quality.

This study extends the discussion of earnings quality and investment efficiency to the zombie firm setting. Previous studies in accounting suggest that high earnings quality enhances firms' investment efficiency. The findings suggest that both a change in ownership structure and high-quality accounting information are necessary to mitigate the inefficiency of zombie firms.

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Mitigating overinvestment in Japanese zombie firms: the role of foreign ownership and earnings quality10.1108/ARA-04-2023-0115Asian Review of Accounting2024-01-04© 2023 Emerald Publishing LimitedTakehide IshiguroAkihiro YamadaAsian Review of Accountingahead-of-printahead-of-print2024-01-0410.1108/ARA-04-2023-0115https://www.emerald.com/insight/content/doi/10.1108/ARA-04-2023-0115/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does top managers' tenure matter to management accounting system design?https://www.emerald.com/insight/content/doi/10.1108/ARA-05-2022-0109/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the relationship between top manager tenure and the sophistication level of management accounting system (MAS) in extant literature. Cumulating evidence from 31 studies (N = 12,739), this study meta-analytically examines the central question of whether top managers' tenure is significantly associated with MAS sophistication after correcting individual studies for statistical artifacts. The study also assesses the strength of this association bniy exploring the influence of several moderating factors. The findings show that long-tenured top managers are not significantly related to MAS sophistication. However, the moderator analtgcqyses indicate that the relationship between top manager tenure and MAS sophistication is moderated by tenure measurement type, firm sector and size. The study provides evidence for the significant moderation of tenure measurement type (i.e. position tenure). The results also argue that top manager tenure matters for MAS sophistication in small- and medium-sized enterprises (SMEs) and firms in the private sector. The meta-analysis summarizes existing studies quantitatively to expand prior narrative reviews by providing definitive evidence of the overall effect of top manager tenure on MAS sophistication.Does top managers' tenure matter to management accounting system design?
Mohamed M.M. Ahmed
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the relationship between top manager tenure and the sophistication level of management accounting system (MAS) in extant literature.

Cumulating evidence from 31 studies (N = 12,739), this study meta-analytically examines the central question of whether top managers' tenure is significantly associated with MAS sophistication after correcting individual studies for statistical artifacts. The study also assesses the strength of this association bniy exploring the influence of several moderating factors.

The findings show that long-tenured top managers are not significantly related to MAS sophistication. However, the moderator analtgcqyses indicate that the relationship between top manager tenure and MAS sophistication is moderated by tenure measurement type, firm sector and size. The study provides evidence for the significant moderation of tenure measurement type (i.e. position tenure). The results also argue that top manager tenure matters for MAS sophistication in small- and medium-sized enterprises (SMEs) and firms in the private sector.

The meta-analysis summarizes existing studies quantitatively to expand prior narrative reviews by providing definitive evidence of the overall effect of top manager tenure on MAS sophistication.

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Does top managers' tenure matter to management accounting system design?10.1108/ARA-05-2022-0109Asian Review of Accounting2023-09-22© 2023 Emerald Publishing LimitedMohamed M.M. AhmedAsian Review of Accountingahead-of-printahead-of-print2023-09-2210.1108/ARA-05-2022-0109https://www.emerald.com/insight/content/doi/10.1108/ARA-05-2022-0109/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Renovation in environmental, social and governance (ESG) research: the application of machine learninghttps://www.emerald.com/insight/content/doi/10.1108/ARA-07-2023-0201/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestEnvironmental, social and governance (ESG) factors have become increasingly important in investment decisions, leading to a surge in ESG investing and the rise of sustainable investment assets. Nevertheless, challenges in ESG disclosure, such as quantifying unstructured data, lack of guidelines and comparability, rampantly exist. ESG rating agencies play a crucial role in assessing corporate ESG performance, but concerns over their credibility and reliability persist. To address these issues, researchers are increasingly utilizing machine learning (ML) tools to enhance ESG reporting and evaluation. By leveraging ML, accounting practitioners and researchers gain deeper insights into the relationship between ESG practices and financial performance, offering a more data-driven understanding of ESG impacts on business communities. The authors review the current research on ESG disclosure and ESG performance disagreement, followed by the review of current ESG research with ML tools in three areas: connecting ML with ESG disclosures, integrating ML with ESG rating disagreement and employing ML with ESG in other settings. By comparing different research's ML applications in ESG research, the authors conclude the positive and negative sides of those research studies. The practice of ESG reporting and assurance is on the rise, but still in its technical infancy. ML methods offer advantages over traditional approaches in accounting, efficiently handling large, unstructured data and capturing complex patterns, contributing to their superiority. ML methods excel in prediction accuracy, making them ideal for tasks like fraud detection and financial forecasting. Their adaptability and feature interaction capabilities make them well-suited for addressing diverse and evolving accounting problems, surpassing traditional methods in accuracy and insight. The authors broadly review the accounting research with the ML method in ESG-related issues. By emphasizing the advantages of ML compared to traditional methods, the authors offer suggestions for future research in ML applications in ESG-related fields.Renovation in environmental, social and governance (ESG) research: the application of machine learning
Abby Yaqing Zhang, Joseph H. Zhang
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

Environmental, social and governance (ESG) factors have become increasingly important in investment decisions, leading to a surge in ESG investing and the rise of sustainable investment assets. Nevertheless, challenges in ESG disclosure, such as quantifying unstructured data, lack of guidelines and comparability, rampantly exist. ESG rating agencies play a crucial role in assessing corporate ESG performance, but concerns over their credibility and reliability persist. To address these issues, researchers are increasingly utilizing machine learning (ML) tools to enhance ESG reporting and evaluation. By leveraging ML, accounting practitioners and researchers gain deeper insights into the relationship between ESG practices and financial performance, offering a more data-driven understanding of ESG impacts on business communities.

The authors review the current research on ESG disclosure and ESG performance disagreement, followed by the review of current ESG research with ML tools in three areas: connecting ML with ESG disclosures, integrating ML with ESG rating disagreement and employing ML with ESG in other settings. By comparing different research's ML applications in ESG research, the authors conclude the positive and negative sides of those research studies.

The practice of ESG reporting and assurance is on the rise, but still in its technical infancy. ML methods offer advantages over traditional approaches in accounting, efficiently handling large, unstructured data and capturing complex patterns, contributing to their superiority. ML methods excel in prediction accuracy, making them ideal for tasks like fraud detection and financial forecasting. Their adaptability and feature interaction capabilities make them well-suited for addressing diverse and evolving accounting problems, surpassing traditional methods in accuracy and insight.

The authors broadly review the accounting research with the ML method in ESG-related issues. By emphasizing the advantages of ML compared to traditional methods, the authors offer suggestions for future research in ML applications in ESG-related fields.

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Renovation in environmental, social and governance (ESG) research: the application of machine learning10.1108/ARA-07-2023-0201Asian Review of Accounting2023-11-10© 2023 Emerald Publishing LimitedAbby Yaqing ZhangJoseph H. ZhangAsian Review of Accountingahead-of-printahead-of-print2023-11-1010.1108/ARA-07-2023-0201https://www.emerald.com/insight/content/doi/10.1108/ARA-07-2023-0201/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The moderating role of CSR in the relationship between earnings management and cost of equity: evidence from European ESG datahttps://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0209/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe present work aimed to identify the impact of accrual-based earnings management on the cost of equity (KE) through corporate social responsibility (CSR) as a moderating variable on European Environmental, Social, and Governance (ESG) companies. The authors used data from a sample of 366 European firms over the 2012–2022 period. The data were collected from the Thomson Reuters Asset 4 and I/B/E/S database and analyzed using STATA 17 as a statistical software package. As expected, the results showed a negative relationship between accruals, CSR and KE. Moreover, they suggest that the moderating variable negatively affects the relationship between accruals and the KE. The results are pertinent to stakeholders and investors, who would pressure companies to enhance the quality of disclosed information and mitigate risks facing the company. The main contribution lies in examining the relationship between accruals and KE through CSR in the European ESG context.The moderating role of CSR in the relationship between earnings management and cost of equity: evidence from European ESG data
Yamina Chouaibi, Rim Zouari-Hadiji, Sawssen Khlifi
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

The present work aimed to identify the impact of accrual-based earnings management on the cost of equity (KE) through corporate social responsibility (CSR) as a moderating variable on European Environmental, Social, and Governance (ESG) companies.

The authors used data from a sample of 366 European firms over the 2012–2022 period. The data were collected from the Thomson Reuters Asset 4 and I/B/E/S database and analyzed using STATA 17 as a statistical software package.

As expected, the results showed a negative relationship between accruals, CSR and KE. Moreover, they suggest that the moderating variable negatively affects the relationship between accruals and the KE.

The results are pertinent to stakeholders and investors, who would pressure companies to enhance the quality of disclosed information and mitigate risks facing the company.

The main contribution lies in examining the relationship between accruals and KE through CSR in the European ESG context.

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The moderating role of CSR in the relationship between earnings management and cost of equity: evidence from European ESG data10.1108/ARA-08-2023-0209Asian Review of Accounting2023-12-15© 2023 Emerald Publishing LimitedYamina ChouaibiRim Zouari-HadijiSawssen KhlifiAsian Review of Accountingahead-of-printahead-of-print2023-12-1510.1108/ARA-08-2023-0209https://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0209/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Firm's life cycle and cash flow classification: evidence from Indian firmshttps://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0213/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe study examines the influence of a firm's life cycle on the cash flow classification of Indian firms. The study employs Dickinson's (2011) cash flow patterns to classify firm years under various life-cycle stages. Cash flow classification is employed to measure a firm's classification shifting (CS) practices. The study includes Indian firms listed on the Bombay Stock Exchange during 2012–2020, an ordinary least squares regression model, a fixed-effect model and a panel corrected with standard error regression method. Firms face different opportunities and challenges at different stages of the firm's life cycle and therefore adopt cash flow CS. The results show that firms adopt cash flow CS during introduction, growth and decline stage of life cycle either to boost or to reduce operating cash flows. This study is one of its kind to study the influence of a firm's life cycle on the cash flow classification of Indian firms.Firm's life cycle and cash flow classification: evidence from Indian firms
Kalyani Mulchandani, Ketan Mulchandani, Megha Jain
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

The study examines the influence of a firm's life cycle on the cash flow classification of Indian firms.

The study employs Dickinson's (2011) cash flow patterns to classify firm years under various life-cycle stages. Cash flow classification is employed to measure a firm's classification shifting (CS) practices. The study includes Indian firms listed on the Bombay Stock Exchange during 2012–2020, an ordinary least squares regression model, a fixed-effect model and a panel corrected with standard error regression method.

Firms face different opportunities and challenges at different stages of the firm's life cycle and therefore adopt cash flow CS. The results show that firms adopt cash flow CS during introduction, growth and decline stage of life cycle either to boost or to reduce operating cash flows.

This study is one of its kind to study the influence of a firm's life cycle on the cash flow classification of Indian firms.

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Firm's life cycle and cash flow classification: evidence from Indian firms10.1108/ARA-08-2023-0213Asian Review of Accounting2023-10-06© 2023 Emerald Publishing LimitedKalyani MulchandaniKetan MulchandaniMegha JainAsian Review of Accountingahead-of-printahead-of-print2023-10-0610.1108/ARA-08-2023-0213https://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0213/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Nexus between profitability, firm size and leverage and tax avoidance: evidence from an emerging economyhttps://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0238/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study examines the impact of profitability, firm size and leverage on corporate tax avoidance in Bangladesh, an emerging South Asian economy. A balanced panel data of 62 firms from Dhaka and Chittagong stock exchanges in Bangladesh from 2009 to 2020 were used to run the regression. This study employed the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) to examine the hypotheses. The findings show that large firms positively impact corporate tax avoidance. Similarly, profitability and leverage are positively associated with tax avoidance, and the results are significant. Furthermore, the study conducts robustness tests that confirm the findings. The use of cash effective tax rate (ETR) to investigate firms’ tax avoidance practices poses some limitations, and the results should be interpreted cautiously. The current study may help policymakers better enhance tax collection from business firms. The findings could serve as a valuable input for effectively monitoring tax collection from large profit-earning firms. To the authors' best knowledge, this is the first historical attempt in Bangladesh to use panel data to examine the relationship between the firm’s level characteristics and corporate tax avoidance. Panel data often provides greater flexibility with large data, simplifying calculation and statistical analysis.Nexus between profitability, firm size and leverage and tax avoidance: evidence from an emerging economy
Md Shamim Hossain, Md.Sobhan Ali, Md Zahidul Islam, Chui Ching Ling, Chorng Yuan Fung
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study examines the impact of profitability, firm size and leverage on corporate tax avoidance in Bangladesh, an emerging South Asian economy.

A balanced panel data of 62 firms from Dhaka and Chittagong stock exchanges in Bangladesh from 2009 to 2020 were used to run the regression. This study employed the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) to examine the hypotheses.

The findings show that large firms positively impact corporate tax avoidance. Similarly, profitability and leverage are positively associated with tax avoidance, and the results are significant. Furthermore, the study conducts robustness tests that confirm the findings.

The use of cash effective tax rate (ETR) to investigate firms’ tax avoidance practices poses some limitations, and the results should be interpreted cautiously.

The current study may help policymakers better enhance tax collection from business firms. The findings could serve as a valuable input for effectively monitoring tax collection from large profit-earning firms.

To the authors' best knowledge, this is the first historical attempt in Bangladesh to use panel data to examine the relationship between the firm’s level characteristics and corporate tax avoidance. Panel data often provides greater flexibility with large data, simplifying calculation and statistical analysis.

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Nexus between profitability, firm size and leverage and tax avoidance: evidence from an emerging economy10.1108/ARA-08-2023-0238Asian Review of Accounting2024-02-13© 2024 Emerald Publishing LimitedMd Shamim HossainMd.Sobhan AliMd Zahidul IslamChui Ching LingChorng Yuan FungAsian Review of Accountingahead-of-printahead-of-print2024-02-1310.1108/ARA-08-2023-0238https://www.emerald.com/insight/content/doi/10.1108/ARA-08-2023-0238/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Discussion of busy CEO and financial statement footnotes readability: evidence from Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/ARA-09-2023-0253/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to discuss Harymawan et al. (2023) and suggest a few areas for improvement. This paper critically assesses Harymawan et al.’s (2023) position in the extant literature and discusses pertinent aspects. This paper's primary focus is on Harymawan et al.’s (2023) conceptual development, especially chief executive officers' (CEOs) role in footnote disclosures. This paper's viewpoints are relevant to readers interested in corporate textual disclosure and governance.Discussion of busy CEO and financial statement footnotes readability: evidence from Indonesia
Li Yao
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to discuss Harymawan et al. (2023) and suggest a few areas for improvement.

This paper critically assesses Harymawan et al.’s (2023) position in the extant literature and discusses pertinent aspects.

This paper's primary focus is on Harymawan et al.’s (2023) conceptual development, especially chief executive officers' (CEOs) role in footnote disclosures.

This paper's viewpoints are relevant to readers interested in corporate textual disclosure and governance.

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Discussion of busy CEO and financial statement footnotes readability: evidence from Indonesia10.1108/ARA-09-2023-0253Asian Review of Accounting2023-11-06© 2023 Emerald Publishing LimitedLi YaoAsian Review of Accountingahead-of-printahead-of-print2023-11-0610.1108/ARA-09-2023-0253https://www.emerald.com/insight/content/doi/10.1108/ARA-09-2023-0253/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The effects of situational and dispositional factors on audit quality threatening behaviour: exploring the moderating influence of religiosityhttps://www.emerald.com/insight/content/doi/10.1108/ARA-11-2022-0274/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestUsing attribution theory, this study examined the effects of situational factors [time budget pressure (TBP), organisational ethical culture (OEC) and quality control procedures (QCPs)] and dispositional factors [auditor professional commitment (APC) and internal locus of control (ILOC)] on audit quality threatening behaviour (AQTB). In addition, it observed the moderating role of religiosity in the relationship between situational and dispositional factors and AQTB. A total of 189 external auditors responded to the survey questionnaire. This study employed structural equation modelling via SmartPLS to analyse the proposed model. The results documented that the OEC and QCPs situational factors were negatively related to the incidence of AQTB, whilst TBP was positively linked to the incidence of AQTB. Dispositional factors APC and ILOC were negatively connected to AQTB. Furthermore, the findings recorded the moderating effect of religiosity on most of the situational and dispositional factors related to AQTB. Regulators and accounting firms' efforts to promote high audit quality (AQ) may consider the theological/religious lens and reinforce ethical culture and quality control to reduce AQTB. The findings provide further insights into situational and dispositional factors that may cause or impede the incidence of AQTB in auditing practices, as well as the moderating role of religiosity in curbing AQTB.The effects of situational and dispositional factors on audit quality threatening behaviour: exploring the moderating influence of religiosity
Shilin Liu, Noor Adwa Sulaiman, Suhaily Shahimi
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

Using attribution theory, this study examined the effects of situational factors [time budget pressure (TBP), organisational ethical culture (OEC) and quality control procedures (QCPs)] and dispositional factors [auditor professional commitment (APC) and internal locus of control (ILOC)] on audit quality threatening behaviour (AQTB). In addition, it observed the moderating role of religiosity in the relationship between situational and dispositional factors and AQTB.

A total of 189 external auditors responded to the survey questionnaire. This study employed structural equation modelling via SmartPLS to analyse the proposed model.

The results documented that the OEC and QCPs situational factors were negatively related to the incidence of AQTB, whilst TBP was positively linked to the incidence of AQTB. Dispositional factors APC and ILOC were negatively connected to AQTB. Furthermore, the findings recorded the moderating effect of religiosity on most of the situational and dispositional factors related to AQTB.

Regulators and accounting firms' efforts to promote high audit quality (AQ) may consider the theological/religious lens and reinforce ethical culture and quality control to reduce AQTB.

The findings provide further insights into situational and dispositional factors that may cause or impede the incidence of AQTB in auditing practices, as well as the moderating role of religiosity in curbing AQTB.

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The effects of situational and dispositional factors on audit quality threatening behaviour: exploring the moderating influence of religiosity10.1108/ARA-11-2022-0274Asian Review of Accounting2023-12-14© 2023 Emerald Publishing LimitedShilin LiuNoor Adwa SulaimanSuhaily ShahimiAsian Review of Accountingahead-of-printahead-of-print2023-12-1410.1108/ARA-11-2022-0274https://www.emerald.com/insight/content/doi/10.1108/ARA-11-2022-0274/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Effects of policy and economic uncertainty on investment activities and corporate financial reporting: a study of developing countries in Asia-Pacifichttps://www.emerald.com/insight/content/doi/10.1108/ARA-12-2022-0290/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study investigates the impact of government and economic policy uncertainty (EPU) on companies' business operations, especially risk-taking tendencies and corporate financial reporting quality (FRQ). The study employs the generalised least squares regression model. The final sample comprised 27,376 company-year observations from eight countries in the Asia-Pacific region. EPU has a negative and significant effect on investment activity and FRQ. Higher EPU leads to a decline in investment and FRQ. There are several limitations in this study. First, the authors used abnormal investments to measure investments, without considering the degree of irreversibility investment objectives. Second, although control variables are included at the company and country levels, they may only partially control for companies' mitigation effects. Third, the sample is limited to developing countries with unique characteristics in Asia-Pacific; therefore, the findings cannot be generalised. The findings can help investors, analysts and regulators evaluate EPU's impact on companies' business activities by offering an overview regarding the decline in investment efficiency and FRQ. The results can also be used as input for regulators in formulating policies that encourage companies to regulate investment levels without harming other stakeholders and maintain FRQ during periods of uncertainty. This research provides intriguing insights into EPU's effects on companies' investment activity and FRQ in developing countries, which are sensitive to changes in macroeconomic conditions.Effects of policy and economic uncertainty on investment activities and corporate financial reporting: a study of developing countries in Asia-Pacific
Firdaus Kurniawan, Hilma Tsani Amanati, Albertus Henri Listyanto Nugroho, Nandya Octanti Pusparini
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study investigates the impact of government and economic policy uncertainty (EPU) on companies' business operations, especially risk-taking tendencies and corporate financial reporting quality (FRQ).

The study employs the generalised least squares regression model. The final sample comprised 27,376 company-year observations from eight countries in the Asia-Pacific region.

EPU has a negative and significant effect on investment activity and FRQ. Higher EPU leads to a decline in investment and FRQ.

There are several limitations in this study. First, the authors used abnormal investments to measure investments, without considering the degree of irreversibility investment objectives. Second, although control variables are included at the company and country levels, they may only partially control for companies' mitigation effects. Third, the sample is limited to developing countries with unique characteristics in Asia-Pacific; therefore, the findings cannot be generalised.

The findings can help investors, analysts and regulators evaluate EPU's impact on companies' business activities by offering an overview regarding the decline in investment efficiency and FRQ. The results can also be used as input for regulators in formulating policies that encourage companies to regulate investment levels without harming other stakeholders and maintain FRQ during periods of uncertainty.

This research provides intriguing insights into EPU's effects on companies' investment activity and FRQ in developing countries, which are sensitive to changes in macroeconomic conditions.

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Effects of policy and economic uncertainty on investment activities and corporate financial reporting: a study of developing countries in Asia-Pacific10.1108/ARA-12-2022-0290Asian Review of Accounting2023-06-28© 2023 Emerald Publishing LimitedFirdaus KurniawanHilma Tsani AmanatiAlbertus Henri Listyanto NugrohoNandya Octanti PuspariniAsian Review of Accountingahead-of-printahead-of-print2023-06-2810.1108/ARA-12-2022-0290https://www.emerald.com/insight/content/doi/10.1108/ARA-12-2022-0290/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A global review of the literature on and proxies of busy boards and audit committeeshttps://www.emerald.com/insight/content/doi/10.1108/ARA-12-2022-0301/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study comprehensively reviews the global literature on busy boards and audit committees. Six eight articles on busy boards and audit committees from prominent accounting journals are reviewed and analyzed under the “reputation” and “busyness” premise. Most studies advocating the “reputation” hypothesis have the consensus that busy directors have their benefits (knowledge spillovers), particularly regarding sharing their in-depth knowledge, experiences and expertise. This phenomenon is pronounced for younger and IPO firms, which have high advising and financing needs. From the “busyness” perspective, busy directors are too overboard in carrying out their duty effectively and responsibly. This study identifies future research avenues on busy boards/audit committees and suggests that policymakers and regulators should limit the number of board appointments. This is the first study to extensively amalgamate research on busy directors and audit committees. It reveals the various proxies used to measure the busyness of board and audit committee members and the consequences of busyness.A global review of the literature on and proxies of busy boards and audit committees
Yeut Hong Tham
Asian Review of Accounting, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study comprehensively reviews the global literature on busy boards and audit committees.

Six eight articles on busy boards and audit committees from prominent accounting journals are reviewed and analyzed under the “reputation” and “busyness” premise.

Most studies advocating the “reputation” hypothesis have the consensus that busy directors have their benefits (knowledge spillovers), particularly regarding sharing their in-depth knowledge, experiences and expertise. This phenomenon is pronounced for younger and IPO firms, which have high advising and financing needs. From the “busyness” perspective, busy directors are too overboard in carrying out their duty effectively and responsibly.

This study identifies future research avenues on busy boards/audit committees and suggests that policymakers and regulators should limit the number of board appointments.

This is the first study to extensively amalgamate research on busy directors and audit committees. It reveals the various proxies used to measure the busyness of board and audit committee members and the consequences of busyness.

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A global review of the literature on and proxies of busy boards and audit committees10.1108/ARA-12-2022-0301Asian Review of Accounting2023-11-02© 2023 Emerald Publishing LimitedYeut Hong ThamAsian Review of Accountingahead-of-printahead-of-print2023-11-0210.1108/ARA-12-2022-0301https://www.emerald.com/insight/content/doi/10.1108/ARA-12-2022-0301/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited