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Article
Publication date: 14 May 2018

Rahayu Abdul Rahman, Normah Hj Omar, Asheq Rahman and Ruhaini Muda

This paper aims to study the roles of Muslim CEO, Muslim Chairman and Muslim board of directors in mitigating earnings management via real activities manipulation.

Abstract

Purpose

This paper aims to study the roles of Muslim CEO, Muslim Chairman and Muslim board of directors in mitigating earnings management via real activities manipulation.

Design/methodology/approach

In total, 656 firm year-observations from 2007 to 2014 of Malaysian Top 100 firms listed on Bursa Malaysia is used to examine the relationship between real earnings management (REM) and the religious ethical values of Muslim top leadership of the firms.

Findings

The study provides evidence that there was no significant relationship between ethical values and REM measures among Muslim top corporate leaders. However, through additional analysis on sub-sample firms, this study finds that Muslim CEO and Muslim Chairman have a significant and negative association with proxies of REM: RCFO and RPC.

Research limitations/implications

The results show that Muslim CEO and Muslim Chairman are the actors that contribute more control in limiting REM especially in family-owned firms in Malaysia.

Originality/value

This is the first published paper that focuses on Islamic ethical values of corporate top leadership and REM in Malaysia, as previous studies have focused more on accruals earnings management.

Details

International Journal of Law and Management, vol. 60 no. 3
Type: Research Article
ISSN: 1754-243X

Keywords

Content available
Article
Publication date: 30 April 2021

Ajantha Velayutham, Asheq Razaur Rahman, Anil Narayan and Michael Wang

The purpose of this study is to examine the disruptive effects of COVID-19 on supply chains and question the role of accounting information in managing these supply chains…

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Abstract

Purpose

The purpose of this study is to examine the disruptive effects of COVID-19 on supply chains and question the role of accounting information in managing these supply chains in the face of such disruptive effects.

Design/methodology/approach

The study first explains the effects of COVID-19 on the supply chains of business entities. It then explains the role of accounting information in supply chain management, questions accounting information's ability to play such a role, and makes recommendations for better accounting disclosures and accounting research for supply chains of firms. To illustrate the salient points, a case study of Fisher and Paykel Healthcare is conducted. It identifies the risks and uncertainties of supply chains exposed by COVID-19 disruptions to businesses.

Findings

COVID-19 has affected Fisher and Paykel Healthcare from both the supply-side (upstream) and demand-side (downstream) perspectives. On the supply side, it has disrupted the supply of raw materials used in the manufacture of respiratory devices and the costs of importing such materials. On the demand side, it has disrupted market logistics and customer demand. This has subsequently affected production. Such disruptions can be overcome through the dissemination of appropriate accounting information for the different stages of the supply chain to the managers. Such accounting information can also be useful to external stakeholders for minimizing their risks.

Originality/value

The study attempts to create an awareness of the supply chain uncertainties faced by managers and stakeholders arising from exogenous shocks, such as a pandemic, and how these uncertainties can be mitigated by aligning accounting information flows with the supply chain activity flows. The observations made in this paper are at a conceptual level and, therefore, can be applied to any industry.

Details

Accounting, Auditing & Accountability Journal, vol. 34 no. 6
Type: Research Article
ISSN: 0951-3574

Keywords

Abstract

Details

Pacific Accounting Review, vol. 34 no. 4
Type: Research Article
ISSN: 0114-0582

Content available
Article
Publication date: 4 April 2016

Asheq Rahman, Rachel Baskerville and Paul Rouse

273

Abstract

Details

Pacific Accounting Review, vol. 28 no. 2
Type: Research Article
ISSN: 0114-0582

Case study
Publication date: 23 November 2016

Asheq Rahman, Hector Perera and Frances Chua

International business, Accounting and Finance.

Abstract

Subject area

International business, Accounting and Finance.

Study level/applicability

Undergraduate and Postgraduate levels (advanced financial accounting, international accounting, other accounting and business courses with an international setting.

Case overview

The case uses the Asia Pulp & Paper Company’s (APP) entry into the international debt market to highlight the consequences of different business practices between the East (in this case, Indonesia) and the West. On the one hand, it shows that APP was set up as the “front” to access international debt capital; on the other, it reveals the naïvety of Western lenders who parted with their funds without conducting a thorough background research on the financial viability of the company they invested in. The APP debacle is a poignant reminder for market participants and business/accounting students that the divergence of the business settings across countries can make business contractual arrangements tenuous and corporate financial information irrelevant to its users. It also exposes the unique ways of how some Asian countries conduct their business affairs.

Expected learning outcomes

The following are the expected learning outcomes: comprehend the impact of differences in culture and ethnic origin on business practices; evaluate the impact of cultural nuances on the legality of contracts in the international business setting; understand the impact of currency fluctuation on the financial position of multinational firms; and be more cautious in conducting business and entering into contracts with foreign firms.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CCS 1: Accounting and Finance.

Details

Emerald Emerging Markets Case Studies, vol. 6 no. 3
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 21 October 2019

Sabrina Chong and Asheq Rahman

The purpose of this paper is to identify the web-based features of corporate social responsibility (CSR) disclosure that play a role in making CSR information prominent to…

Abstract

Purpose

The purpose of this paper is to identify the web-based features of corporate social responsibility (CSR) disclosure that play a role in making CSR information prominent to investors and give the information better recognition for investment decisions.

Design/methodology/approach

The authors posit a positive association between the company’s capital market performance and the web-based features used for CSR disclosure by the company. The authors argue that the more effective the feature is in enhancing the prominence of CSR information, the higher is the share turnover and market value of shares of a company, and the lower is its share prices’ bid-ask spread. Five specific web-based features, namely, the location, accessibility, medium, variety and extent of disclosure are identified as features used for web-based CSR disclosure. The research framework is drawn from Brennan and Merkl–Davies’ (2013) impression management strategies and Merton’s (1987) “investor recognition hypothesis”.

Findings

The findings show that visual and structural emphases of CSR information via specific web-based features enhance information prominence and could favourably influence investors’ impression towards the company. Investors are likely to make investment decisions in favour of the company, resulting in a higher share turnover along with increased market value of the shares of the company and lower bid-ask spread of its share prices.

Research limitations/implications

The paper highlights the significance of utilisation of web-based features in enhancing CSR information prominence for impression management purposes.

Practical implications

The findings have the potential to benefit preparers, users and policymakers by enhancing their knowledge and understanding of the utilisation of web-based CSR disclosure features. Specifically, preparers will be more aware of web-based feature(s) that could be useful in projecting CSR-related information to their stakeholders.

Social implications

The study will help enhance the dissemination of web-based CSR information.

Originality/value

The study adds to the literature on web-based CSR disclosure, by developing a structured approach to examine the effectiveness of web-based features for investors’ impression management.

Details

Sustainability Accounting, Management and Policy Journal, vol. 11 no. 1
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 1 June 2022

Lin Ma and Asheq Rahman

This paper aims to examine the influence of culture on the adoption and use of social media platforms for corporate disclosures by firms in a cross-country setting.

Abstract

Purpose

This paper aims to examine the influence of culture on the adoption and use of social media platforms for corporate disclosures by firms in a cross-country setting.

Design/methodology/approach

It is contended that social media corporate disclosure (SMCD) is culturally influenced because the primary purpose of social media is to connect people in social settings, and social settings are distinguished by their cultures. Using a sample of 1,420 firms from 36 countries and Hofstede’s cultural dimensions, this study examines the direct effects of culture on SMCD and its moderating effects on the relationship between SMCD and the agency determinants of corporate disclosure.

Findings

It is found that cultural dimensions directly affect the adoption and use of SMCD. Additionally, the agency determinants of disclosure, size, leverage and growth are positively associated with the adoption, and use of SMCD, and these associations are moderated by the cultural dimensions.

Research limitations/implications

The Hofstede cultural dimensions are broad country-level variables based on the culture of the majority in the population. However, larger countries have many cultures. This study does not cover within-country cultural effects on SMCD. It also does not cover firm-level culture and accounting culture because these factors are derived from national culture. This study adds culture as a country-level determinant of why companies adopt and use social media.

Practical implications

The study provides investors and policymakers with an understanding of the nature of SMCD adoption and use in different cultural settings. It also makes managers aware of which cultural settings are more amenable to SMCD.

Social implications

Social media, by design, have social implications. Examining the role of culture in the use of social media provides societal reasons for the use of SMCD by companies.

Originality/value

Since social media are interactive in form rather than simply one-way disclosure devices, this study goes beyond the realm of corporate disclosure into the less researched area of corporate communication via social media.

Details

Pacific Accounting Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 8 January 2020

Muhammad Shahin Miah, Haiyan Jiang, Asheq Rahman and Warwick Stent

This paper aims to investigate the association between International Financial Reporting Standards (IFRS) effort due to higher levels of material adjustments and audit…

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Abstract

Purpose

This paper aims to investigate the association between International Financial Reporting Standards (IFRS) effort due to higher levels of material adjustments and audit fees. In addition, this paper tests whether these associations differ between industry specialist auditors and non-specialist auditors.

Design/methodology/approach

The authors measure IFRS effort by using differences between local GAAP and IFRS. More specifically, they measure the differences in the balances of accounts that are prepared under IFRS as opposed to the previously used Australian Accounting Standards Board (AASB) standards. They posit that higher material adjustments and more risk to fair presentation of financial statements require additional accounting and auditing effort (“IFRS effort”).

Findings

The authors find that audit fees are higher when accounting standards are more material and complex at an aggregate level. Nevertheless, not all standards are equally complex and/or material and not all individual standards contribute to higher audit fees. In addition, the results show that the positive association between IFRS effort and audit fees is more pronounced when firms are audited by city-level industry specialists than by non-industry specialists.

Originality/value

Overall, the results are consistent with the prediction of increasing audit fees for firms requiring higher levels of IFRS effort compared to firms requiring lower levels of IFRS effort. The results contribute to the understanding that not all IFRS are equally complex and, thereby, the standards require different levels of auditor effort. Isolating specific standards based on materiality/risk levels is informative to standard setters for standard setting, standard implementation and post-implementation review of standards.

Details

Accounting Research Journal, vol. 33 no. 1
Type: Research Article
ISSN: 1030-9616

Keywords

Content available
Article
Publication date: 8 April 2014

Asheq Rahman

178

Abstract

Details

Pacific Accounting Review, vol. 26 no. 1/2
Type: Research Article
ISSN: 0114-0582

Article
Publication date: 7 February 2022

Laura Mehnaz, Asheq Rahman and Humayun Kabir

Concerns relating to the representational faithfulness and, consequently, the relevance of fair value (FV) estimates are likely to be heightened in the wake of market…

Abstract

Purpose

Concerns relating to the representational faithfulness and, consequently, the relevance of fair value (FV) estimates are likely to be heightened in the wake of market uncertainty caused by the COVID pandemic. Therefore, this paper aims to study the relevance of supplementary disclosures intended to improve the representational faithfulness of FV estimates by examining their impacts on audit fees and investors’ valuation of FV adjustments in the uncertain market condition of 2020.

Design/methodology/approach

The sample is comprising Australian real estate firms. The authors develop both weighted and unweighted disclosure indices based on supplementary disclosures related to Level 3 FVs under IFRS 13 Fair Value Measurement. The authors measure the levels of disclosure by the sample firms based on these indices from 2018 to 2020 and ascertain their effects on audit fees and the market value of FV adjustments on investment properties.

Findings

The authors find that real estate firms increased supplementary FV disclosures during 2020. The authors document a negative association between supplementary disclosures and audit fees, although the authors find no incremental impact of disclosures on audit fees during the pandemic. Additionally, the authors find that investors’ pricing of FV adjustments increased with the increase in disclosures during the market uncertainty of 2020, while in the pre-uncertainty period, their pricing influence was not significant.

Originality/value

The findings extend the understanding of the role of supplementary disclosures on Level 3 investment properties in mitigating the perceived audit risk for auditors and the faithful representation concerns for investors in a distressed market environment.

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