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1 – 10 of over 4000Fitri Amalia, Ogan Yigitbasioglu and Stuart Tooley
Drawing on institutional theory analytical perspectives of theorisation and translation, this study aims to explore the institutionalisation of eXtensible Business Reporting…
Abstract
Purpose
Drawing on institutional theory analytical perspectives of theorisation and translation, this study aims to explore the institutionalisation of eXtensible Business Reporting Language (XBRL) in Indonesia from a regulatory and filer perspective.
Design/methodology/approach
The Indonesian capital market offers a unique case of the integration of XBRL regulatory reporting between multiple regulators and a transfer from capital market regulation to state-level regulation. This study uses semi-structured interviews with key actors employed with Indonesian XBRL-regulatory bodies and listed companies (filers).
Findings
External pressures, monitoring issues and tensions in the implementation process were instrumental in the theorisation and translation of XBRL in Indonesia. Specifically, the findings show that choices made with respect to XBRL regulation and implementation created tensions between XBRL reporting fulfilling a monitoring purpose and serving stakeholders’ interests. The findings also indicate that the Indonesian approach to XBRL regulation and implementation had distinct characteristics compared to XBRL implementation in other jurisdictions.
Practical implications
This study emphasises the necessity for robust regulatory support and strict enforcement to navigate the complexities and tensions arising from a multi-regulatory approach. Additionally, it stresses the importance of firms’ readiness and expertise in XBRL as more sophisticated implementation strategies are considered.
Originality/value
Using the analytical lens of theorisation and translation, the study provides a deeper understanding of how a globally diffused accounting technology was institutionalised and legitimised in a developing country. Specifically, this study explains why a conversion approach to XBRL implementation was favoured and how XBRL implementation and reporting were managed and coordinated between different Indonesian regulators.
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Christine Fournès, Helena Karjalainen and Laurent Beduneau-Wang
This paper aims to better understand auditing practices as a social phenomenon and management practice through a comparative historical analysis of the emergence of statutory…
Abstract
Purpose
This paper aims to better understand auditing practices as a social phenomenon and management practice through a comparative historical analysis of the emergence of statutory auditing in three European countries, namely, France, Great Britain and Germany between 1844 and 1935.
Design/methodology/approach
The authors’ approach is a comparative history relying on a literature review, books pertaining to the period of interest and relevant archives.
Findings
The three countries’ trajectories were similar. All featured the promulgation of acts at the second half of the 19th century, the development of the accounting profession and the introduction of new acts to further strengthen statutory auditing around the Great Depression. However, each country took a different path because of the degree of regulation. For instance, the regulation strength and the degree of professionalism differed considerably by country. Business secrecy was also a departure point; it ranged from the rejection of auditors as intruders in France to Germany’s exclusively internal auditing and the UK’s peer auditing. The countries also differed on perceptions of the auditor’s role. Auditors were seen through the lens of a general interest mission in France, as advisors to internal governance bodies in Germany and as shareholders’ agents in Great Britain.
Originality/value
This paper compares three main European countries in the specific context of the introduction of statutory auditing. The findings of this paper are helpful for the international harmonization of auditing standards, as the derived insights provide a better understanding of the differences in the standards’ implementation.
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Clinton Free, Stewart Jones and Marie-Soleil Tremblay
The purpose of this paper is to synthesize insights from the emerging work in accounting on greenwashing and sustainability assurance and propose an agenda for future research in…
Abstract
Purpose
The purpose of this paper is to synthesize insights from the emerging work in accounting on greenwashing and sustainability assurance and propose an agenda for future research in this area.
Design/methodology/approach
This article offers an original analysis of papers published on greenwashing and sustainability assurance research in the field of accounting. It adopts a systematic literature review and a narrative approach to analyse the dominant themes and key findings in this new and rapidly evolving field. From this overview, specific avenues for future research are identified.
Findings
In the past few years there has been a substantial spike in concern relating to greenwashing among academics, practitioners, regulators and society. This growing concern has only partly been reflected in the research literature. To date, research has primarily focused on: (1) the characteristics of firms adopting sustainability assurance, (2) the challenges facing sustainability auditors, (3) the development of appropriate assurance standards and regulations, and (4) capital market responses to greenwashing and sustainability auditing/assurance. Three key future research issues with respect to greenwashing are identified: (1) the future of standard-setter attempts to regulate greenwashing, (2) professional jockeying in sustainability reporting assurance, and (3) capital market opportunities and challenges relating to greenwashing and assurance.
Originality/value
Despite the profound economic and reputational impact of greenwashing and the rapid development of sustainability assurance services, research in accounting remains fragmented and emergent. This review identifies avenues offering considerable scope for inter-disciplinarity and bridging the divide between academia and practice.
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June Cao, Zijie Huang, Ari Budi Kristanto and Millie Liew
The objective of this study is to investigate how the implementation of an Emission Trading Scheme (ETS) influences an ETS-regulated firm’s level of earnings smoothness.
Abstract
Purpose
The objective of this study is to investigate how the implementation of an Emission Trading Scheme (ETS) influences an ETS-regulated firm’s level of earnings smoothness.
Design/methodology/approach
Using a staggered difference-in-differences model based on China’s ETS pilots commencing in 2013, this study investigates how the implementation of ETS pilots affects regulated firms’ earnings smoothing relative to non-regulated firms. The sample period spans from 2008 to 2019. This model incorporates time-invariant firm-specific heterogeneity, time-specific heterogeneity, and a series of firm characteristics to establish causality. Robustness tests justify findings.
Findings
The results show that after implementing an ETS pilot, regulated firms increase their earnings smoothness relative to non-regulated firms. Regulated firms strategically smooth their earnings to obtain additional financial resources and meet compliance costs arising from an ETS. Further analysis reveals that regulated firms’ earnings smoothing activity is a function of environmental regulations, managerial integrity, and capital market incentives.
Originality/value
This study deviates from past research focusing on the environmental consequences of ETS by indicating that an ETS affects regulated firms’ financial reporting decisions. Specifically, regulated firms resort to earnings smoothing as a short-term exit strategy from financing concerns arising from environmental regulations. This finding expands prior literature primarily focusing on the effect of tax and financial reporting regulations on earnings smoothness. This study also indicates that firms utilize earning smoothing to lower their short-term cost of capital, which enables them to access additional financing at a lower cost and reconfigure their operations to meet stakeholder environmental demands.
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Know your customer (KYC), accounting standards, issuance, clearing, and trade settlement became the major barrier to implement accounting, accountability and assurance process in…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
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.
Practical implications
Accounting professionals can get an idea of the future direction and impact of blockchain technology on accounting, accountability and assurance processes.
Originality/value
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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Mouna Ben Rejeb, Safwan Alzyadat and Nozha Merzki
This study investigates and compares the earnings management strategies of financially distressed and non-distressed banks.
Abstract
Purpose
This study investigates and compares the earnings management strategies of financially distressed and non-distressed banks.
Design/methodology/approach
Using a regression analysis, this study examines a sample of banks operating in the MENA region. We focus on real earnings management strategies via commission and fee income (CF) and accrual-based earnings management strategies via loan loss provisions (LLP). A subsample analysis was performed, lagged dependent variables and additional control variables were included as a robustness check.
Findings
The findings consistently reveal a more extensive use of real earnings management strategies via CF among distressed banks than among non-distressed ones. Specifically, banks smooth their income via CF under distress conditions. However, LLP-based earnings management strategies are only implemented in healthy banks. These behaviors persist in banks that operate under different monitoring systems and institutional settings.
Research limitations/implications
This study marks its entry into the literature debate on accounting and non-accounting decisions that influence bank financial reporting. It argues that, in the presence of financial difficulties, bank managers define earnings management strategies based on the probability of being detected, rather than looking at their costs.
Practical implications
From a prudential perspective, the findings suggest the need for prudential rules to supervise the reporting of CF income associated with high fees or discount incentives used intentionally by bank managers to convince clients to delay or accelerate payments and, consequently, affect reported earnings.
Originality/value
This study adds to the literature by investigating the effect of bank financial distress on both real and accrual-based earnings management to provide a comprehensive analysis of bank earnings management strategies in the presence of financial difficulties.
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Joseph Akadeagre Agana, Stephen Zamore and Daniel Domeher
This paper aims to examine the theoretical underpinnings of international financial reporting standards (IFRS)-related studies and offers directions for theoretical and empirical…
Abstract
Purpose
This paper aims to examine the theoretical underpinnings of international financial reporting standards (IFRS)-related studies and offers directions for theoretical and empirical research. Specifically, this study examines the main theories in IFRS adoption research (i.e. adoption, compliance and effects).
Design/methodology/approach
The sample contains 67 empirical papers that have used theories and was collected from Web of Science database. This study uses a systematic review technique.
Findings
Generally, the review shows the prevalent and pervasive use of institutional theories of isomorphism across all the three areas of IFRS adoption. Particularly, regarding IFRS adoption stream, this study finds the institutional theory as a dominant theory used to explain IFRS diffusion around the globe. For IFRS compliance, this study finds that the agency and the capital need theories are widely used. For IFRS adoption effects stream, this study finds a few studies using the contingency and neo-institutional theories. Overall, the review provides theoretical lens for IFRS adoption, IFRS compliance and IFRS adoption effects.
Originality/value
Given the lack of a well-defined set of theories in the domain of accounting, the findings provide further guidance on theory building within the field. Further, accounting regulators, academics and practitioners may benefit from the findings when explaining various changes in the world of accounting.
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Ruth Dimes and Matteo Molinari
This paper aims to develop a conceptual framework informed by a literature review. This framework aims to deepen and broaden the understanding of the relationship between…
Abstract
Purpose
This paper aims to develop a conceptual framework informed by a literature review. This framework aims to deepen and broaden the understanding of the relationship between corporate governance mechanisms and non-financial reporting (NFR) through qualitative research approaches.
Design/methodology/approach
A review of corporate governance and NFR literature and existing research frameworks leads to the development of a conceptual framework to encourage future qualitative accounting research on the corporate governance mechanisms for NFR.
Findings
Few studies consider the complex interrelationships between NFR and corporate governance mechanisms. Quantitative studies using secondary data sources dominate accounting research on the topic. Of the small number of qualitative studies, many are theoretical and offer little new knowledge about the effectiveness of corporate governance mechanisms in practice. The research framework, developed from a literature review and consideration of multiple qualitative approaches, proposes numerous avenues for future research.
Research limitations/implications
This paper is based on a scoping review of the literature using peer-reviewed journal papers. Other researchers may have identified additional literature for inclusion, including grey literature.
Practical implications
More qualitative research into NFR and corporate governance mechanisms may help to guide practitioners seeking to incorporate sustainability into their governance practices.
Social implications
The critical relationship between NRF and corporate governance is under-explored in research yet has significant consequences for organisations pursuing sustainability.
Originality/value
The authors develop a conceptual framework for qualitative accounting research on NFR and corporate governance, addressing key outstanding questions in this area and considering different theoretical perspectives when approaching this critical topic. Although there is scope for further research in general in this promising area, including quantitative reviews and discursive studies, qualitative research would be of particular value. The authors also outline multiple directions for nurturing academic debate.
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Malak Hamade, Khaled Hussainey and Khaldoon Albitar
This systematic review aims to comprehensively explore the existing literature on the use of corporate communication within the realm of social media.
Abstract
Purpose
This systematic review aims to comprehensively explore the existing literature on the use of corporate communication within the realm of social media.
Design/methodology/approach
A total of 136 peer-reviewed journal articles are explored and analysed using both performance and bibliometric analysis.
Findings
This review identifies five main findings: (1) trends in corporate social media research that highlight the growth trajectory of research on social media use for corporate disclosure, (2) geographical coverage of studies indicating the concentration of research in certain regions, such as the USA, followed by China and the UK, with notable gaps in others, such as developing countries, (3) theoretical frameworks employed demonstrate that various theoretical frameworks are utilized, although a significant portion of the studies do not specify any theoretical underpinning, (4) social media platforms studied, confirming Twitter to be the most studied channel followed by Facebook and (5) thematic analysis of articles on disclosure type that categorized the articles using bibliometric analysis into five themes of disclosure: general disclosure, corporate social responsibility-related information, financial information, CEO announcements and strategic news communication. A subsequent cross-theme analysis classifies disclosure determinants and consequences of corporate social media usage.
Originality/value
Through a comprehensive and systematic analysis of existing research, this review offers novel insights into the current state of corporate communication on social media. It consolidates current knowledge, highlights under-explored areas in the existing literature and proposes new directions and potential avenues for future research.
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Rahma Torchani, Salma Damak-Ayadi and Issal Haj-Salem
This study aims to investigate the effect of mandatory international financial reporting standards (IFRS) adoption on the risk disclosure quality by listed European insurers.
Abstract
Purpose
This study aims to investigate the effect of mandatory international financial reporting standards (IFRS) adoption on the risk disclosure quality by listed European insurers.
Design/methodology/approach
The study used a content analysis of the annual reports and consolidated accounts of 13 insurance companies listed in the European market between 2002 and 2007 based on two regulatory frameworks, Solvency and IFRS.
Findings
The results showed a significant effect of the mandatory adoption of IFRS and a clear improvement in the quality of risk disclosure. Moreover, risk disclosure is positively associated with the size of the company.
Research limitations/implications
The authors can consider the relatively limited size of the sample as a limitation of this study. Moreover, the manual content analysis used to be considered subjective.
Practical implications
The findings of this study provide useful insights to professional and regulatory bodies about the consequences of IFRS adoption to enhance transparency and particularly risk disclosure.
Originality/value
The research contributes to the existing literature. First, the authors have shown that companies are improving in the quality of risk disclosure even before 2005. Second, the authors have shown that the year 2005 is distinguished by a marked improvement in disclosure trends, with companies aligning themselves with coercive and mimetic regulatory forces. Third, the authors highlight the significant effect of mandatory IFRS adoption even in highly regulated industries, such as the insurance industry.
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