International Journal of Accounting & Information ManagementTable of Contents for International Journal of Accounting & Information Management. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/1834-7649/vol/32/iss/2?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestInternational Journal of Accounting & Information ManagementEmerald Publishing LimitedInternational Journal of Accounting & Information ManagementInternational Journal of Accounting & Information Managementhttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/cb0144a7fdd8729790422e982371368b/urn:emeraldgroup.com:asset:id:binary:ijaim.cover.jpghttps://www.emerald.com/insight/publication/issn/1834-7649/vol/32/iss/2?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestAssessing the countries’ convergence to IPSAS from a cultural perspectivehttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-02-2023-0047/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to assess the factors that may explain the International Public Sector Accounting Standards (IPSAS) convergence, considering Hofstede’s cultural dimensions as the theoretical reference for the cultural approach proposed. Additional factors include countries’ contextual and macroeconomic characteristics. Logistic and probit regression models were used to identify the factors that may explain the IPSAS (fully or adapted) use by countries, including 166 countries in this assessment (59 for those whose cultural dimensions are available). The findings consistently indicate collectivism and indebtedness levels as explanatory factors, providing insights into cultural dimensions along with macroeconomic characteristics as a relevant factor of countries’ convergence to IPSAS. There are different levels of IPSAS convergence by countries that were not considered. This aspect may hide different countries’ characteristics that may explain those options, which could not be distinguished in this paper. As a result of this paper, the International Public Sector Accounting Standards Board may gain insights that can be applied within the IPSAS due process to overcome the main challenges when collaborating with national authorities to achieve a high level of convergence. This analysis may include how to accommodate countries’ cultural differences as well as their contextual and macroeconomic characteristics. There is a trend of moving toward accrual-based accounting standards by countries. Because the public sector embraces a new culture following the IPSAS path, it is relevant to assess if there are cultural factors, besides contextual and macroeconomic characteristics, that may explain the countries’ convergence to those standards. To the best of the authors’ knowledge, this is the first cross-country analysis on the likely influence of cultural dimensions on IPSAS convergence as far as the authors’ knowledge.Assessing the countries’ convergence to IPSAS from a cultural perspective
Paula Gomes dos Santos, Fábio Albuquerque
International Journal of Accounting & Information Management, Vol. 32, No. 2, pp.181-206

This paper aims to assess the factors that may explain the International Public Sector Accounting Standards (IPSAS) convergence, considering Hofstede’s cultural dimensions as the theoretical reference for the cultural approach proposed. Additional factors include countries’ contextual and macroeconomic characteristics.

Logistic and probit regression models were used to identify the factors that may explain the IPSAS (fully or adapted) use by countries, including 166 countries in this assessment (59 for those whose cultural dimensions are available).

The findings consistently indicate collectivism and indebtedness levels as explanatory factors, providing insights into cultural dimensions along with macroeconomic characteristics as a relevant factor of countries’ convergence to IPSAS.

There are different levels of IPSAS convergence by countries that were not considered. This aspect may hide different countries’ characteristics that may explain those options, which could not be distinguished in this paper.

As a result of this paper, the International Public Sector Accounting Standards Board may gain insights that can be applied within the IPSAS due process to overcome the main challenges when collaborating with national authorities to achieve a high level of convergence. This analysis may include how to accommodate countries’ cultural differences as well as their contextual and macroeconomic characteristics.

There is a trend of moving toward accrual-based accounting standards by countries. Because the public sector embraces a new culture following the IPSAS path, it is relevant to assess if there are cultural factors, besides contextual and macroeconomic characteristics, that may explain the countries’ convergence to those standards.

To the best of the authors’ knowledge, this is the first cross-country analysis on the likely influence of cultural dimensions on IPSAS convergence as far as the authors’ knowledge.

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Assessing the countries’ convergence to IPSAS from a cultural perspective10.1108/IJAIM-02-2023-0047International Journal of Accounting & Information Management2023-12-01© 2023 Emerald Publishing LimitedPaula Gomes dos SantosFábio AlbuquerqueInternational Journal of Accounting & Information Management3222023-12-0110.1108/IJAIM-02-2023-0047https://www.emerald.com/insight/content/doi/10.1108/IJAIM-02-2023-0047/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does negativity matter under the principle-based approach? Evidence from narrative reporting in the UKhttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-01-2023-0001/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the association between negative tone in annual report narratives and future performance in the UK context. Under the principle-based approach in the UK, managers tend to bias the tone of narrative reports upward, as the reporting regime is more flexible than the rule-based approach in the USA. Consequently, any negative disclosure not mandated by regulators conveys credible information about a firm’s prospects. This paper uses a sample of UK FTSE all-share non-financial companies from 2010 to 2019. The authors use the textual-analysis approach based on Loughran and McDonald (2011)’s wordlist (LM) to measure the negative tone in UK annual reports. The results show a significant negative association between negative tone and future performance. Moreover, our further analyses suggest that only the negativity in the executive section of the annual disclosures correlates significantly with future performance. In summary, this study suggests that negativity does matter under the principle-based approach and can be used as an indicator of future performance. In contrast to the literature arguing that only positivity has the power to affect a firm’s outcomes under the principle-based approach, the authors provide new empirical evidence suggesting that negativity also matters within the UK context and can be used as an indicator for future performance. Also, to the best of the authors’ knowledge, this is the first study to identify which section of the annual report is more informative about a firm’s future performance.Does negativity matter under the principle-based approach? Evidence from narrative reporting in the UK
Hesham Bassyouny, Michael Machokoto
International Journal of Accounting & Information Management, Vol. 32, No. 2, pp.207-227

This paper aims to investigate the association between negative tone in annual report narratives and future performance in the UK context. Under the principle-based approach in the UK, managers tend to bias the tone of narrative reports upward, as the reporting regime is more flexible than the rule-based approach in the USA. Consequently, any negative disclosure not mandated by regulators conveys credible information about a firm’s prospects.

This paper uses a sample of UK FTSE all-share non-financial companies from 2010 to 2019. The authors use the textual-analysis approach based on Loughran and McDonald (2011)’s wordlist (LM) to measure the negative tone in UK annual reports.

The results show a significant negative association between negative tone and future performance. Moreover, our further analyses suggest that only the negativity in the executive section of the annual disclosures correlates significantly with future performance. In summary, this study suggests that negativity does matter under the principle-based approach and can be used as an indicator of future performance.

In contrast to the literature arguing that only positivity has the power to affect a firm’s outcomes under the principle-based approach, the authors provide new empirical evidence suggesting that negativity also matters within the UK context and can be used as an indicator for future performance. Also, to the best of the authors’ knowledge, this is the first study to identify which section of the annual report is more informative about a firm’s future performance.

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Does negativity matter under the principle-based approach? Evidence from narrative reporting in the UK10.1108/IJAIM-01-2023-0001International Journal of Accounting & Information Management2023-11-30© 2023 Emerald Publishing LimitedHesham BassyounyMichael MachokotoInternational Journal of Accounting & Information Management3222023-11-3010.1108/IJAIM-01-2023-0001https://www.emerald.com/insight/content/doi/10.1108/IJAIM-01-2023-0001/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Do emissions reduction initiatives improve financial performance? Empirical analysis of moderating factorshttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-04-2023-0107/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as corporate social responsible (CSR) strategy and corporate governance practices, that may strengthen the link between carbon reduction initiatives and financial performance. The empirical analysis is conducted using 1,740 firm-year observations from UK firms listed on the FTSE 350. Data on carbon emissions and firm-specific characteristics are obtained from the Refinitiv Eikon database for the period 2011–2020. Various econometric techniques, including ordinary least squares and system generalized method of moments, are used to examine the relationship between carbon reduction initiatives and financial performance. Additionally, alternative samples are used to further explore this relationship. The author observes a significantly positive association between carbon reduction initiatives and financial performance in this study. Additionally, the significance of this relationship is found to be present specifically after the announcement of the Paris Agreement. Furthermore, a channel analysis reveals that moderating factors like CSR strategy and corporate governance quality influence this relationship. The study underscores the importance of carbon reduction initiatives for sustainable business growth and financial performance. Managers can use these insights to prioritize investments in sustainable practices. Policymakers should consider implementing supportive regulations to incentivize companies to adopt carbon reduction strategies. This study adds value to the existing body of literature by empirically examining the moderating role of CSR strategy and best corporate governance practices in the relationship between carbon reduction initiatives and financial performance. The findings contribute to a deeper understanding of how these factors interact and influence the outcomes.Do emissions reduction initiatives improve financial performance? Empirical analysis of moderating factors
Ayman Issa
International Journal of Accounting & Information Management, Vol. 32, No. 2, pp.228-257

This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as corporate social responsible (CSR) strategy and corporate governance practices, that may strengthen the link between carbon reduction initiatives and financial performance.

The empirical analysis is conducted using 1,740 firm-year observations from UK firms listed on the FTSE 350. Data on carbon emissions and firm-specific characteristics are obtained from the Refinitiv Eikon database for the period 2011–2020. Various econometric techniques, including ordinary least squares and system generalized method of moments, are used to examine the relationship between carbon reduction initiatives and financial performance. Additionally, alternative samples are used to further explore this relationship.

The author observes a significantly positive association between carbon reduction initiatives and financial performance in this study. Additionally, the significance of this relationship is found to be present specifically after the announcement of the Paris Agreement. Furthermore, a channel analysis reveals that moderating factors like CSR strategy and corporate governance quality influence this relationship.

The study underscores the importance of carbon reduction initiatives for sustainable business growth and financial performance. Managers can use these insights to prioritize investments in sustainable practices. Policymakers should consider implementing supportive regulations to incentivize companies to adopt carbon reduction strategies.

This study adds value to the existing body of literature by empirically examining the moderating role of CSR strategy and best corporate governance practices in the relationship between carbon reduction initiatives and financial performance. The findings contribute to a deeper understanding of how these factors interact and influence the outcomes.

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Do emissions reduction initiatives improve financial performance? Empirical analysis of moderating factors10.1108/IJAIM-04-2023-0107International Journal of Accounting & Information Management2023-11-24© 2023 Emerald Publishing LimitedAyman IssaInternational Journal of Accounting & Information Management3222023-11-2410.1108/IJAIM-04-2023-0107https://www.emerald.com/insight/content/doi/10.1108/IJAIM-04-2023-0107/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The information content of half-yearly goodwill impairment losses: analysis of the European contexthttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-06-2023-0160/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to contribute to the debate on goodwill accounting by examining the information content of impairment losses recognized in half-yearly reports. Half-yearly reports provide a suitable context to examine the effectiveness of the impairment process. Due to IFRIC 10 requirements, indeed, managers may have incentives to avoid recognizing impairment losses at the interim reporting date. The study adopts an archival approach. Based on the traditional Ohlson’s model (1995), it explores the information content of half-yearly impairment losses in the European context over the period 2007–2017. Findings confirm the relevance of half-yearly reports and suggest that half-yearly impairment losses are significantly associated with stock prices. In particular, investors positively value companies that recognized goodwill impairment losses at the interim reporting date. The study contributes to the academic debate on goodwill and the effectiveness of the impairment procedure. In particular, it provides empirical evidence on the recognition of goodwill write-offs when it is possible to avoid the impairment test in the absence of indications of impairment. Findings of this study can support the current debate on accounting for goodwill also in the light of the recent proposals of the IASB on the need to improve the effectiveness of the impairment test. This study provides original empirical evidence on the goodwill impairment test in half-yearly reports, extending previous research that typically examines this issue in annual reports.The information content of half-yearly goodwill impairment losses: analysis of the European context
Elisa Roncagliolo
International Journal of Accounting & Information Management, Vol. 32, No. 2, pp.258-278

This study aims to contribute to the debate on goodwill accounting by examining the information content of impairment losses recognized in half-yearly reports. Half-yearly reports provide a suitable context to examine the effectiveness of the impairment process. Due to IFRIC 10 requirements, indeed, managers may have incentives to avoid recognizing impairment losses at the interim reporting date.

The study adopts an archival approach. Based on the traditional Ohlson’s model (1995), it explores the information content of half-yearly impairment losses in the European context over the period 2007–2017.

Findings confirm the relevance of half-yearly reports and suggest that half-yearly impairment losses are significantly associated with stock prices. In particular, investors positively value companies that recognized goodwill impairment losses at the interim reporting date.

The study contributes to the academic debate on goodwill and the effectiveness of the impairment procedure. In particular, it provides empirical evidence on the recognition of goodwill write-offs when it is possible to avoid the impairment test in the absence of indications of impairment.

Findings of this study can support the current debate on accounting for goodwill also in the light of the recent proposals of the IASB on the need to improve the effectiveness of the impairment test.

This study provides original empirical evidence on the goodwill impairment test in half-yearly reports, extending previous research that typically examines this issue in annual reports.

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The information content of half-yearly goodwill impairment losses: analysis of the European context10.1108/IJAIM-06-2023-0160International Journal of Accounting & Information Management2023-11-30© 2023 Emerald Publishing LimitedElisa RoncaglioloInternational Journal of Accounting & Information Management3222023-11-3010.1108/IJAIM-06-2023-0160https://www.emerald.com/insight/content/doi/10.1108/IJAIM-06-2023-0160/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Anti-corruption disclosure and corporate governance mechanisms: insights from FTSE 100https://www.emerald.com/insight/content/doi/10.1108/IJAIM-08-2023-0211/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the impact of corporate governance (CG) on anti-corruption disclosure (A-CD), paying particular attention to the FTSE 100. Notably, it examines how board and audit committees’ characteristics affect the quantity and quality of anti-corruption disclosure. Data from FTSE 100 firms, spanning the period from 2014 to 2020, were analysed using the regression of the Poisson fixed effect and GEE analyses. The findings show that gender diversity, audit committee expertise and the independence of the audit committee are positively associated with both quantity and quality of anti-corruption disclosure. Notably, no statistically significant relationships were identified between anti-corruption disclosure and factors such as board size, role duality or board meetings. The findings provide valuable insights for decision-makers and regulatory bodies, shedding light on the elements that compel UK companies to enhance their anti-corruption disclosure and governance protocols to alleviate corruption and propel efforts towards ethical behaviour. This study makes a notable contribution to the sparse body of evidence by examining the influence of board and audit committee attributes on anti-corruption disclosure subsequent to the implementation of the UK Bribery Act in 2010. Specifically, to the best of the authors’ knowledge, this study assesses for the first time the impact of board and audit committee mechanisms on both the quantity and quality of anti-corruption disclosure.Anti-corruption disclosure and corporate governance mechanisms: insights from FTSE 100
Musa Ghazwani, Ibrahim Alamir, Rami Ibrahim A. Salem, Nedal Sawan
International Journal of Accounting & Information Management, Vol. 32, No. 2, pp.279-307

This study aims to examine the impact of corporate governance (CG) on anti-corruption disclosure (A-CD), paying particular attention to the FTSE 100. Notably, it examines how board and audit committees’ characteristics affect the quantity and quality of anti-corruption disclosure.

Data from FTSE 100 firms, spanning the period from 2014 to 2020, were analysed using the regression of the Poisson fixed effect and GEE analyses.

The findings show that gender diversity, audit committee expertise and the independence of the audit committee are positively associated with both quantity and quality of anti-corruption disclosure. Notably, no statistically significant relationships were identified between anti-corruption disclosure and factors such as board size, role duality or board meetings.

The findings provide valuable insights for decision-makers and regulatory bodies, shedding light on the elements that compel UK companies to enhance their anti-corruption disclosure and governance protocols to alleviate corruption and propel efforts towards ethical behaviour.

This study makes a notable contribution to the sparse body of evidence by examining the influence of board and audit committee attributes on anti-corruption disclosure subsequent to the implementation of the UK Bribery Act in 2010. Specifically, to the best of the authors’ knowledge, this study assesses for the first time the impact of board and audit committee mechanisms on both the quantity and quality of anti-corruption disclosure.

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Anti-corruption disclosure and corporate governance mechanisms: insights from FTSE 10010.1108/IJAIM-08-2023-0211International Journal of Accounting & Information Management2023-12-05© 2023 Emerald Publishing LimitedMusa GhazwaniIbrahim AlamirRami Ibrahim A. SalemNedal SawanInternational Journal of Accounting & Information Management3222023-12-0510.1108/IJAIM-08-2023-0211https://www.emerald.com/insight/content/doi/10.1108/IJAIM-08-2023-0211/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Principles based accounting standards, audit fees and going concern: evidence using advanced machine learninghttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-02-2023-0026/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe current study uses an advanced machine learning method and aims to investigate whether auditors perceive financial statements that are principles-based as less risky. More specifically, this study aims to explore the association between principles-based accounting standards and audit pricing and between principles-based accounting standards and the likelihood of receiving a going concern opinion. The study uses an advanced machine-learning method to understand the role of principles-based accounting standards in predicting audit fees and going concern opinion. The study also uses multiple regression models defining audit fees and the probability of receiving going concern opinion. The analyses are complemented by additional tests such as economic significance, firm fixed effects, propensity score matching, entropy balancing, change analysis, yearly regression results and controlling for managerial risk-taking incentives and governance variables. The paper provides empirical evidence that auditors charge less audit fees to clients whose financial statements are more principles-based. The finding suggests that auditors perceive financial statements that are principles-based less risky. The study also provides evidence that the probability of receiving a going-concern opinion reduces as firms rely more on principles-based standards. The finding further suggests that auditors discount the financial numbers supplied by the managers using rules-based standards. The study also reveals that the degree of reliance by a US firm on principles-based accounting standards has a negative impact on accounting conservatism, the risk of financial statement misstatement, accruals and the difficulty in predicting future earnings. This suggests potential mechanisms through which principles-based accounting standards influence auditors’ risk assessments. The authors recognize the limitation of this study regarding the sample period. Prior studies compare rules vs principles-based standards by focusing on the differences between US generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) or pre- and post-IFRS adoption, which raises questions about differences in cross-country settings and institutional environment and other confounding factors such as transition costs. This study addresses these issues by comparing rules vs principles-based standards within the US GAAP setting. However, this limits the sample period to the year 2006 because the measure of the relative extent to which a US firm is reliant upon principles-based standards is available until 2006. The study has major public policy suggestions as it responds to the call by Jay Clayton and Mary Jo White, the former Chairs of the US Securities and Exchange Commission (SEC), to pursue high-quality, globally accepted accounting standards to ensure that investors continue to receive clear and reliable financial information globally. The study also recognizes the notable public policy implications, particularly in light of the current Chair of the International Accounting Standards Board (IASB) Andreas Barckow’s recent public statement, which emphasizes the importance of principles-based standards and their ability to address sustainability concerns, including emerging risks such as climate change. The study has major public policy suggestions because it demonstrates the value of principles-based standards. The study responds to the call by Jay Clayton and Mary Jo White, the former Chairs of the US SEC, to pursue high-quality, globally accepted accounting standards to ensure that investors continue to receive clear and reliable financial information as business transactions and investor needs continue to evolve globally. The study also recognizes the notable public policy implications, particularly in light of the current Chair of the IASB Andreas Barckow’s recent public statement, which emphasizes the importance of principles-based standards and their ability to address sustainability concerns, including emerging risks like climate change. The study fills the gap in the literature that auditors perceive principles-based financial statements as less risky and further expands the literature by providing empirical evidence that the likelihood of receiving a going concern opinion is increasing in the degree of rules-based standards.Principles based accounting standards, audit fees and going concern: evidence using advanced machine learning
Meena Subedi
International Journal of Accounting & Information Management, Vol. 32, No. 2, pp.308-344

The current study uses an advanced machine learning method and aims to investigate whether auditors perceive financial statements that are principles-based as less risky. More specifically, this study aims to explore the association between principles-based accounting standards and audit pricing and between principles-based accounting standards and the likelihood of receiving a going concern opinion.

The study uses an advanced machine-learning method to understand the role of principles-based accounting standards in predicting audit fees and going concern opinion. The study also uses multiple regression models defining audit fees and the probability of receiving going concern opinion. The analyses are complemented by additional tests such as economic significance, firm fixed effects, propensity score matching, entropy balancing, change analysis, yearly regression results and controlling for managerial risk-taking incentives and governance variables.

The paper provides empirical evidence that auditors charge less audit fees to clients whose financial statements are more principles-based. The finding suggests that auditors perceive financial statements that are principles-based less risky. The study also provides evidence that the probability of receiving a going-concern opinion reduces as firms rely more on principles-based standards. The finding further suggests that auditors discount the financial numbers supplied by the managers using rules-based standards. The study also reveals that the degree of reliance by a US firm on principles-based accounting standards has a negative impact on accounting conservatism, the risk of financial statement misstatement, accruals and the difficulty in predicting future earnings. This suggests potential mechanisms through which principles-based accounting standards influence auditors’ risk assessments.

The authors recognize the limitation of this study regarding the sample period. Prior studies compare rules vs principles-based standards by focusing on the differences between US generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) or pre- and post-IFRS adoption, which raises questions about differences in cross-country settings and institutional environment and other confounding factors such as transition costs. This study addresses these issues by comparing rules vs principles-based standards within the US GAAP setting. However, this limits the sample period to the year 2006 because the measure of the relative extent to which a US firm is reliant upon principles-based standards is available until 2006.

The study has major public policy suggestions as it responds to the call by Jay Clayton and Mary Jo White, the former Chairs of the US Securities and Exchange Commission (SEC), to pursue high-quality, globally accepted accounting standards to ensure that investors continue to receive clear and reliable financial information globally. The study also recognizes the notable public policy implications, particularly in light of the current Chair of the International Accounting Standards Board (IASB) Andreas Barckow’s recent public statement, which emphasizes the importance of principles-based standards and their ability to address sustainability concerns, including emerging risks such as climate change.

The study has major public policy suggestions because it demonstrates the value of principles-based standards. The study responds to the call by Jay Clayton and Mary Jo White, the former Chairs of the US SEC, to pursue high-quality, globally accepted accounting standards to ensure that investors continue to receive clear and reliable financial information as business transactions and investor needs continue to evolve globally. The study also recognizes the notable public policy implications, particularly in light of the current Chair of the IASB Andreas Barckow’s recent public statement, which emphasizes the importance of principles-based standards and their ability to address sustainability concerns, including emerging risks like climate change. The study fills the gap in the literature that auditors perceive principles-based financial statements as less risky and further expands the literature by providing empirical evidence that the likelihood of receiving a going concern opinion is increasing in the degree of rules-based standards.

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Principles based accounting standards, audit fees and going concern: evidence using advanced machine learning10.1108/IJAIM-02-2023-0026International Journal of Accounting & Information Management2023-12-21© 2023 Emerald Publishing LimitedMeena SubediInternational Journal of Accounting & Information Management3222023-12-2110.1108/IJAIM-02-2023-0026https://www.emerald.com/insight/content/doi/10.1108/IJAIM-02-2023-0026/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Do advisory directors increase discretionary accruals?https://www.emerald.com/insight/content/doi/10.1108/IJAIM-02-2023-0040/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine whether the presence of advisory directors affects firm discretionary accruals (DACC), a widely used proxy for financial reporting quality. The authors argue that the advisory director weakens the board monitoring role and impairs the firm financial reporting quality by increasing DACC. The sample consists of listed firms on the Australian Stock Exchange from 2001 to 2015 using 7,649 firm-year observations. The authors perform descriptive statistics, regression and propensity score matching analyses to examine the research hypothesis. The research evidence that firms with a higher presence of advisory directors have more DACC, indicating poor financial reporting quality. Furthermore, the authors categorize the DACC and find that the firm has higher income-increasing DACC in the presence of higher advisory directors. The findings are robust concerning endogeneity issues. The research evidence that firms with a higher presence of advisory directors have more DACC, indicating poor financial reporting quality. Furthermore, the authors categorize the DACC and find that the firm has higher income-increasing DACC in the presence of higher advisory directors. The findings are robust concerning endogeneity issues. The research contributes valuable insights for regulators and policymakers seeking to comprehend the implications of firms using more advisory directors. Additionally, the authors recognize the potential significance of the findings for the institution of directors, as they can provide a nuanced understanding of the specific roles played by advisory directors in organizational dynamics. While the extensive body of literature on corporate governance and financial reporting quality has been well-established, a noticeable void exists in academic research delving into the relationship between advisory directors and DACC management. This study seeks to fill this gap, making a distinctive and original contribution to the existing literature on corporate governance.Do advisory directors increase discretionary accruals?
Ummya Salma, Md. Borhan Uddin Bhuiyan
International Journal of Accounting & Information Management, Vol. 32, No. 2, pp.345-368

This study aims to examine whether the presence of advisory directors affects firm discretionary accruals (DACC), a widely used proxy for financial reporting quality. The authors argue that the advisory director weakens the board monitoring role and impairs the firm financial reporting quality by increasing DACC.

The sample consists of listed firms on the Australian Stock Exchange from 2001 to 2015 using 7,649 firm-year observations. The authors perform descriptive statistics, regression and propensity score matching analyses to examine the research hypothesis.

The research evidence that firms with a higher presence of advisory directors have more DACC, indicating poor financial reporting quality. Furthermore, the authors categorize the DACC and find that the firm has higher income-increasing DACC in the presence of higher advisory directors. The findings are robust concerning endogeneity issues.

The research evidence that firms with a higher presence of advisory directors have more DACC, indicating poor financial reporting quality. Furthermore, the authors categorize the DACC and find that the firm has higher income-increasing DACC in the presence of higher advisory directors. The findings are robust concerning endogeneity issues.

The research contributes valuable insights for regulators and policymakers seeking to comprehend the implications of firms using more advisory directors. Additionally, the authors recognize the potential significance of the findings for the institution of directors, as they can provide a nuanced understanding of the specific roles played by advisory directors in organizational dynamics.

While the extensive body of literature on corporate governance and financial reporting quality has been well-established, a noticeable void exists in academic research delving into the relationship between advisory directors and DACC management. This study seeks to fill this gap, making a distinctive and original contribution to the existing literature on corporate governance.

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Do advisory directors increase discretionary accruals?10.1108/IJAIM-02-2023-0040International Journal of Accounting & Information Management2023-12-08© 2023 Emerald Publishing LimitedUmmya SalmaMd. Borhan Uddin BhuiyanInternational Journal of Accounting & Information Management3222023-12-0810.1108/IJAIM-02-2023-0040https://www.emerald.com/insight/content/doi/10.1108/IJAIM-02-2023-0040/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Corporate ethical values disclosure: evidence from Malaysian and Indonesian top companieshttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-01-2023-0007/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the extent of ethical values information disclosure on the top 100 Malaysian and Indonesian companies’ annual reports using coercive isomorphism under the institutional theory. Using the content analysis, the presence or exclusion of ethical values information disclosed on 100 Malaysian and Indonesian companies’ annual reports using a newly developed Ethical Values Disclosure Index is carried out. The results of the analysis found that Indonesian companies on average disclosed 31 items under study compared to 27 items disclosed by the companies in Malaysia. The results suggest that Indonesian companies are more vigilant in the code of ethics, companies policy on ethical issues, monitoring program and accountability, ethical performance, ethical infrastructure and organizational responsibility aspects, whereas their Malaysian counterparts are better in reporting governance and integrity committee or board of directors. The findings may not be applicable to other countries in the same region, nevertheless, revealed the importance of adequate ethical values disclosure in determining the level of ethical behavior. Companies in Indonesia are coercively pressed by various influential stakeholder groups to address ethical issues. The less disclosure regarding corporate ethical behavior may indicate that unethical practices continue to be a problem in the Malaysian corporate sector. This paper adds to the literature by examining the elements of ethical values adapted mainly from the professional bodies that regulate the accounting profession and other organizations using the institutional theory, particularly in two countries.Corporate ethical values disclosure: evidence from Malaysian and Indonesian top companies
Corina Joseph, Fitra Roman Cahaya, Sharifah Norzehan Syed Yusuf, Agung Nur Probohudono, Estetika Mutiaranisa Kurniawati
International Journal of Accounting & Information Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine the extent of ethical values information disclosure on the top 100 Malaysian and Indonesian companies’ annual reports using coercive isomorphism under the institutional theory.

Using the content analysis, the presence or exclusion of ethical values information disclosed on 100 Malaysian and Indonesian companies’ annual reports using a newly developed Ethical Values Disclosure Index is carried out.

The results of the analysis found that Indonesian companies on average disclosed 31 items under study compared to 27 items disclosed by the companies in Malaysia. The results suggest that Indonesian companies are more vigilant in the code of ethics, companies policy on ethical issues, monitoring program and accountability, ethical performance, ethical infrastructure and organizational responsibility aspects, whereas their Malaysian counterparts are better in reporting governance and integrity committee or board of directors.

The findings may not be applicable to other countries in the same region, nevertheless, revealed the importance of adequate ethical values disclosure in determining the level of ethical behavior.

Companies in Indonesia are coercively pressed by various influential stakeholder groups to address ethical issues. The less disclosure regarding corporate ethical behavior may indicate that unethical practices continue to be a problem in the Malaysian corporate sector.

This paper adds to the literature by examining the elements of ethical values adapted mainly from the professional bodies that regulate the accounting profession and other organizations using the institutional theory, particularly in two countries.

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Corporate ethical values disclosure: evidence from Malaysian and Indonesian top companies10.1108/IJAIM-01-2023-0007International Journal of Accounting & Information Management2023-12-12© 2023 Emerald Publishing LimitedCorina JosephFitra Roman CahayaSharifah Norzehan Syed YusufAgung Nur ProbohudonoEstetika Mutiaranisa KurniawatiInternational Journal of Accounting & Information Managementahead-of-printahead-of-print2023-12-1210.1108/IJAIM-01-2023-0007https://www.emerald.com/insight/content/doi/10.1108/IJAIM-01-2023-0007/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does board’s green theme training promote green innovation? A view from resource dependence perspective: Indonesian evidencehttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-03-2023-0058/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe study has practical implications for decision-makers in that increasing board competence and expertise through training on environmental issues will promote green policy-making. This study included 655 firm-year observations from companies listed on the Indonesia Stock Exchange between 2017 and 2021. Panel data regression analysis is used to investigate the hypotheses. Additionally, a robustness test is conducted to validate the consistency of the primary test results. The results demonstrate that green theme training from the board of directors, board of commissioners and independent commissioners has a positive and significant impact on the implementation of green innovation at each level of the board. This result is aligned with the robustness test performed. This study is restricted by the fact that the only data sources used to examine the board’s green training are publication reports and other reports that disclose the board’s training activities. Therefore, future research can be done by considering other methods, such as surveys to trace green training followed by the board. Additional research may also examine green theme training in the corporate governance structure from a different theoretical angle, such as agency theory and human capital theory. In practice, the study has implications for decision-makers in that increasing board competence and expertise through training on environmental issues will be able to promote green policy-making. This study concentrates on Indonesia with two-board governance characteristics: the board of directors and the board of commissioners. Several scholars have examined the board of directors in light of resource dependence theory. To the best of the authors’ knowledge, no research has explained the supervisory board within the context of two-board governance. In addition, the authors have not found research that analyzes board training activities related to the environment.Does board’s green theme training promote green innovation? A view from resource dependence perspective: Indonesian evidence
Nur Asni, Wiwiek Dianawati
International Journal of Accounting & Information Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The study has practical implications for decision-makers in that increasing board competence and expertise through training on environmental issues will promote green policy-making.

This study included 655 firm-year observations from companies listed on the Indonesia Stock Exchange between 2017 and 2021. Panel data regression analysis is used to investigate the hypotheses. Additionally, a robustness test is conducted to validate the consistency of the primary test results.

The results demonstrate that green theme training from the board of directors, board of commissioners and independent commissioners has a positive and significant impact on the implementation of green innovation at each level of the board. This result is aligned with the robustness test performed.

This study is restricted by the fact that the only data sources used to examine the board’s green training are publication reports and other reports that disclose the board’s training activities. Therefore, future research can be done by considering other methods, such as surveys to trace green training followed by the board. Additional research may also examine green theme training in the corporate governance structure from a different theoretical angle, such as agency theory and human capital theory.

In practice, the study has implications for decision-makers in that increasing board competence and expertise through training on environmental issues will be able to promote green policy-making.

This study concentrates on Indonesia with two-board governance characteristics: the board of directors and the board of commissioners. Several scholars have examined the board of directors in light of resource dependence theory. To the best of the authors’ knowledge, no research has explained the supervisory board within the context of two-board governance. In addition, the authors have not found research that analyzes board training activities related to the environment.

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Does board’s green theme training promote green innovation? A view from resource dependence perspective: Indonesian evidence10.1108/IJAIM-03-2023-0058International Journal of Accounting & Information Management2023-12-28© 2023 Emerald Publishing LimitedNur AsniWiwiek DianawatiInternational Journal of Accounting & Information Managementahead-of-printahead-of-print2023-12-2810.1108/IJAIM-03-2023-0058https://www.emerald.com/insight/content/doi/10.1108/IJAIM-03-2023-0058/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does expanded disclosure in the audit report involve unintended consequences? Evidence from tax avoidancehttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-04-2023-0086/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine how new regulation changes for the auditor’s report, so-called key audit matters (KAMs), influence tax avoidance. This study uses data from firms listed on the Omani capital market over the period 2012–2019 and analyzes these data using pooled panel data regression with a robust standard error. It uses two common proxies for tax avoidance and two measures for the KAMs disclosure requirement. This study finds a sharp decrease in the effective tax rate following the introduction of KAMs disclosure and the issuance of more KAMs in audit reports. This result is supported by several robustness checks. In an additional analysis, the authors observe interesting results, indicating that real earnings management mediates this association, while the audit committee plays a moderating role. The authors do not find a moderating effect of Big4 on this association, but find discrepancies within the Big4 firms in relation to this moderating effect. The results of this study indicate that although the introduction of the KAMs disclosure requirement may have positive consequences, it may also lead to unintended negative consequences. This conclusion has not been comprehensively reported in literature.Does expanded disclosure in the audit report involve unintended consequences? Evidence from tax avoidance
Saeed Rabea Baatwah, Khaled Hussainey
International Journal of Accounting & Information Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine how new regulation changes for the auditor’s report, so-called key audit matters (KAMs), influence tax avoidance.

This study uses data from firms listed on the Omani capital market over the period 2012–2019 and analyzes these data using pooled panel data regression with a robust standard error. It uses two common proxies for tax avoidance and two measures for the KAMs disclosure requirement.

This study finds a sharp decrease in the effective tax rate following the introduction of KAMs disclosure and the issuance of more KAMs in audit reports. This result is supported by several robustness checks. In an additional analysis, the authors observe interesting results, indicating that real earnings management mediates this association, while the audit committee plays a moderating role. The authors do not find a moderating effect of Big4 on this association, but find discrepancies within the Big4 firms in relation to this moderating effect.

The results of this study indicate that although the introduction of the KAMs disclosure requirement may have positive consequences, it may also lead to unintended negative consequences. This conclusion has not been comprehensively reported in literature.

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Does expanded disclosure in the audit report involve unintended consequences? Evidence from tax avoidance10.1108/IJAIM-04-2023-0086International Journal of Accounting & Information Management2024-01-25© 2024 Emerald Publishing LimitedSaeed Rabea BaatwahKhaled HussaineyInternational Journal of Accounting & Information Managementahead-of-printahead-of-print2024-01-2510.1108/IJAIM-04-2023-0086https://www.emerald.com/insight/content/doi/10.1108/IJAIM-04-2023-0086/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Fintech innovation for financial inclusion: can India make it?https://www.emerald.com/insight/content/doi/10.1108/IJAIM-07-2023-0168/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to examine the key research question, which is whether fintech innovation for financial inclusion has been successful in India? As fintech has been popular in many countries, there is very little understanding on how successful it has performed in India for financial inclusion. This research attempts to ravel important factors that may or may not have a direct or indirect impact on fintech innovation for financial inclusion, thereby dissecting the empirical data to reveal important information for the reader. This study covers a comprehensive literature review, from which key variables are discovered, then develops hypotheses to be examined, followed by proposing a research model. The survey data examines important research instruments for fintech inclusion in India, identifying and measuring factors, leading to partial least squares (PLS) model testing. Finally, the key findings are reported. The findings reveal that fintech innovation from variables such as users experience and motivation for digital payments drives usefulness and ease of use leading to financial inclusion. The security, trust, transparency and customer support when built into the fintech innovation for digital payments influences perceived ease of use (PEOU) and usefulness that mediates to uplift financial inclusion directly. Whereas perceived usefulness (PU) anchoring happens to be a precursor for the financial inclusion. On the contrary, cultural values for fintech innovation through PEOU and usefulness had no impact whatsoever on financial inclusion, thus demystifying cultural influences as non-influential factor. Research limitations are that the study was conducted in India, and may not be generalised in other countries; however, it can be modified to fit future research. Survey data captured was from a particular region of South India, which may differ from the rest of the country. The sample size and research period were adequate; however, larger data sets would be more meaningful for longitudinal studies. As India is the second most populous country in the world, a comparison with other similar countries of the same size and geographical location will be useful for future research. This research reveals that financial inclusion is much more complex than previously known and that the penetration of fintech has the capacity to go deeper and include a large number of people into the mainstream financial system and ameliorate the inequities in urban-rural gender and caste. The user’s experience, culture and motivations positively influenced the usefulness and ease of use for driving the financial inclusion of digital payments. Further security, trust, transparency and customer support can facilitate the use of central bank digital currency (CBDC) as a tool for financial inclusion. Fintech innovation for financial inclusion is based on the successful acceptance of the digital payment system by people in the society. This research has identified that for any fintech innovation, it is essential that society needs to benefit from it. Encouraging a larger population to switch to digital payments offer challenges and opportunities. While the opportunities are enormous research suggests that early adopters of new technology go through different phases of testing, in which a society can completely accept an innovation or can completely reject an innovation if the two mediating factors such as PU and ease of use do not perform as predicted, thus having a higher failure rate. On the other side, if such an innovation as fintech becomes successful it has the capacity to bring billions of people into mainstream financial inclusion, a success story that can greatly benefit the Indian society and which can be replicated among other countries in the world. To the best of the authors’ knowledge, this study is the first attempt in an effort to understand the influential factors from the point of view of users for the adoption of CBDC for financial inclusion. The main contribution of this paper is to examine the role of CBDC as an instrument to foster financial inclusion in India, which has not been attempted so far. The originality also lies to the heart of the research is dissecting and making meaningful sense of the empirical data, developing and measuring research instruments and hypotheses and finally adopting a PLS model to answer the key research question, which is whether fintech innovation for financial inclusion can be successful for India?Fintech innovation for financial inclusion: can India make it?
Kamaljeet Sandhu, Ajit Dayanandan, Sudershan Kuntluru
International Journal of Accounting & Information Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to examine the key research question, which is whether fintech innovation for financial inclusion has been successful in India? As fintech has been popular in many countries, there is very little understanding on how successful it has performed in India for financial inclusion. This research attempts to ravel important factors that may or may not have a direct or indirect impact on fintech innovation for financial inclusion, thereby dissecting the empirical data to reveal important information for the reader.

This study covers a comprehensive literature review, from which key variables are discovered, then develops hypotheses to be examined, followed by proposing a research model. The survey data examines important research instruments for fintech inclusion in India, identifying and measuring factors, leading to partial least squares (PLS) model testing. Finally, the key findings are reported.

The findings reveal that fintech innovation from variables such as users experience and motivation for digital payments drives usefulness and ease of use leading to financial inclusion. The security, trust, transparency and customer support when built into the fintech innovation for digital payments influences perceived ease of use (PEOU) and usefulness that mediates to uplift financial inclusion directly. Whereas perceived usefulness (PU) anchoring happens to be a precursor for the financial inclusion. On the contrary, cultural values for fintech innovation through PEOU and usefulness had no impact whatsoever on financial inclusion, thus demystifying cultural influences as non-influential factor.

Research limitations are that the study was conducted in India, and may not be generalised in other countries; however, it can be modified to fit future research. Survey data captured was from a particular region of South India, which may differ from the rest of the country. The sample size and research period were adequate; however, larger data sets would be more meaningful for longitudinal studies. As India is the second most populous country in the world, a comparison with other similar countries of the same size and geographical location will be useful for future research.

This research reveals that financial inclusion is much more complex than previously known and that the penetration of fintech has the capacity to go deeper and include a large number of people into the mainstream financial system and ameliorate the inequities in urban-rural gender and caste. The user’s experience, culture and motivations positively influenced the usefulness and ease of use for driving the financial inclusion of digital payments. Further security, trust, transparency and customer support can facilitate the use of central bank digital currency (CBDC) as a tool for financial inclusion.

Fintech innovation for financial inclusion is based on the successful acceptance of the digital payment system by people in the society. This research has identified that for any fintech innovation, it is essential that society needs to benefit from it. Encouraging a larger population to switch to digital payments offer challenges and opportunities. While the opportunities are enormous research suggests that early adopters of new technology go through different phases of testing, in which a society can completely accept an innovation or can completely reject an innovation if the two mediating factors such as PU and ease of use do not perform as predicted, thus having a higher failure rate. On the other side, if such an innovation as fintech becomes successful it has the capacity to bring billions of people into mainstream financial inclusion, a success story that can greatly benefit the Indian society and which can be replicated among other countries in the world.

To the best of the authors’ knowledge, this study is the first attempt in an effort to understand the influential factors from the point of view of users for the adoption of CBDC for financial inclusion. The main contribution of this paper is to examine the role of CBDC as an instrument to foster financial inclusion in India, which has not been attempted so far. The originality also lies to the heart of the research is dissecting and making meaningful sense of the empirical data, developing and measuring research instruments and hypotheses and finally adopting a PLS model to answer the key research question, which is whether fintech innovation for financial inclusion can be successful for India?

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Fintech innovation for financial inclusion: can India make it?10.1108/IJAIM-07-2023-0168International Journal of Accounting & Information Management2023-12-29© 2023 Emerald Publishing LimitedKamaljeet SandhuAjit DayanandanSudershan KuntluruInternational Journal of Accounting & Information Managementahead-of-printahead-of-print2023-12-2910.1108/IJAIM-07-2023-0168https://www.emerald.com/insight/content/doi/10.1108/IJAIM-07-2023-0168/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Climate change exposure and dividend policy: evidence from textual analysishttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-07-2023-0170/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestTaking advantage of distinctive text-based measures of climate policy uncertainty and firm-specific exposure to climate change, this study aims to examine the impact of firm-specific vulnerability on dividend policy. To mitigate endogeneity, the authors apply an instrumental-variable analysis based on climate policy uncertainty as well as use additional analysis using propensity score matching and entropy balancing. The authors show that an increase in climate policy uncertainty exacerbates firm-specific exposure considerably. Exploiting climate policy uncertainty to generate exogenous variation in firm-specific exposure, the authors demonstrate that companies more susceptible to climate change are significantly less likely to pay dividends and those that do pay dividends pay significantly smaller dividends. For instance, a rise in firm-specific exposure by one standard deviation weakens the propensity to pay dividends by 5.11%. Climate policy uncertainty originates at the national level, beyond the control of individual firms and is thus plausibly exogenous, making endogeneity less likely. To the best of the authors’ knowledge, this study is the first attempt in the literature to investigate the effect of firm-specific exposure on dividend policy using a rigorous empirical framework that is less vulnerable to endogeneity and is more likely to show a causal influence, rather than a mere correlation.Climate change exposure and dividend policy: evidence from textual analysis
Viput Ongsakul, Pandej Chintrakarn, Suwongrat Papangkorn, Pornsit Jiraporn
International Journal of Accounting & Information Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

Taking advantage of distinctive text-based measures of climate policy uncertainty and firm-specific exposure to climate change, this study aims to examine the impact of firm-specific vulnerability on dividend policy.

To mitigate endogeneity, the authors apply an instrumental-variable analysis based on climate policy uncertainty as well as use additional analysis using propensity score matching and entropy balancing.

The authors show that an increase in climate policy uncertainty exacerbates firm-specific exposure considerably. Exploiting climate policy uncertainty to generate exogenous variation in firm-specific exposure, the authors demonstrate that companies more susceptible to climate change are significantly less likely to pay dividends and those that do pay dividends pay significantly smaller dividends. For instance, a rise in firm-specific exposure by one standard deviation weakens the propensity to pay dividends by 5.11%. Climate policy uncertainty originates at the national level, beyond the control of individual firms and is thus plausibly exogenous, making endogeneity less likely.

To the best of the authors’ knowledge, this study is the first attempt in the literature to investigate the effect of firm-specific exposure on dividend policy using a rigorous empirical framework that is less vulnerable to endogeneity and is more likely to show a causal influence, rather than a mere correlation.

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Climate change exposure and dividend policy: evidence from textual analysis10.1108/IJAIM-07-2023-0170International Journal of Accounting & Information Management2024-01-31© 2024 Emerald Publishing LimitedViput OngsakulPandej ChintrakarnSuwongrat PapangkornPornsit JirapornInternational Journal of Accounting & Information Managementahead-of-printahead-of-print2024-01-3110.1108/IJAIM-07-2023-0170https://www.emerald.com/insight/content/doi/10.1108/IJAIM-07-2023-0170/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Are firms more concerned about analysts’ earnings forecasts after the split-share structure reform? Evidence from Chinahttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-07-2023-0188/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine whether Chinese firms increase their concerns about analysts’ earnings forecasts following the split-share structure reform (SSR) in 2005, which removed trading restrictions on approximately 70% of the shares of listed firms. Using data from 2002 to 2019, the authors empirically test the association between meeting or beating analysts’ earnings expectations and the implementation of SSR. The authors find that firms are more inclined to meet analysts’ earnings expectations after the introduction of SSR. Further analysis shows that firms guide analysts to walk their forecasts down by manipulating third-quarter earnings, suggesting enhanced value relevance between analysts’ forecasts and third-quarter earnings management in the postreform period. The findings reveal an undesirable side effect of SSR and suggest that policymakers and regulators should consider and carefully manage the complex relationships between firms and analysts. In contrast to prior studies that predominantly focus on the positive effects of the reform, this study reveals the side effects of SSR and provides new evidence on the mechanisms of meeting or beating analysts’ earnings expectations.Are firms more concerned about analysts’ earnings forecasts after the split-share structure reform? Evidence from China
Xunzhuo Xi, Can Chen, Rong Huang, Feng Tang
International Journal of Accounting & Information Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine whether Chinese firms increase their concerns about analysts’ earnings forecasts following the split-share structure reform (SSR) in 2005, which removed trading restrictions on approximately 70% of the shares of listed firms.

Using data from 2002 to 2019, the authors empirically test the association between meeting or beating analysts’ earnings expectations and the implementation of SSR.

The authors find that firms are more inclined to meet analysts’ earnings expectations after the introduction of SSR. Further analysis shows that firms guide analysts to walk their forecasts down by manipulating third-quarter earnings, suggesting enhanced value relevance between analysts’ forecasts and third-quarter earnings management in the postreform period.

The findings reveal an undesirable side effect of SSR and suggest that policymakers and regulators should consider and carefully manage the complex relationships between firms and analysts.

In contrast to prior studies that predominantly focus on the positive effects of the reform, this study reveals the side effects of SSR and provides new evidence on the mechanisms of meeting or beating analysts’ earnings expectations.

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Are firms more concerned about analysts’ earnings forecasts after the split-share structure reform? Evidence from China10.1108/IJAIM-07-2023-0188International Journal of Accounting & Information Management2024-01-02© 2023 Emerald Publishing LimitedXunzhuo XiCan ChenRong HuangFeng TangInternational Journal of Accounting & Information Managementahead-of-printahead-of-print2024-01-0210.1108/IJAIM-07-2023-0188https://www.emerald.com/insight/content/doi/10.1108/IJAIM-07-2023-0188/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Analysts’ cash flow forecasts and firms’ information environment: evidence from bid-ask spreadhttps://www.emerald.com/insight/content/doi/10.1108/IJAIM-10-2023-0265/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate whether the cash flow forecasts (CFF) of analysts can disseminate valuable information to the information environments of companies. The author uses empirical archival methodology to conduct differences-in-difference analyses. It is found that information asymmetry decreases in the treatment group following the initiation of CFF during the postperiod, which is consistent with the hypothesis of this paper. To the best of the author’s knowledge, this study is the first among the cash flow forecast studies to demonstrate the usefulness of CFF in the mitigation of information asymmetry, a friction that is widespread in capital markets.Analysts’ cash flow forecasts and firms’ information environment: evidence from bid-ask spread
Mengyu Ma
International Journal of Accounting & Information Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate whether the cash flow forecasts (CFF) of analysts can disseminate valuable information to the information environments of companies.

The author uses empirical archival methodology to conduct differences-in-difference analyses.

It is found that information asymmetry decreases in the treatment group following the initiation of CFF during the postperiod, which is consistent with the hypothesis of this paper.

To the best of the author’s knowledge, this study is the first among the cash flow forecast studies to demonstrate the usefulness of CFF in the mitigation of information asymmetry, a friction that is widespread in capital markets.

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Analysts’ cash flow forecasts and firms’ information environment: evidence from bid-ask spread10.1108/IJAIM-10-2023-0265International Journal of Accounting & Information Management2024-01-02© 2023 Emerald Publishing LimitedMengyu MaInternational Journal of Accounting & Information Managementahead-of-printahead-of-print2024-01-0210.1108/IJAIM-10-2023-0265https://www.emerald.com/insight/content/doi/10.1108/IJAIM-10-2023-0265/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited