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1 – 10 of 398Susanne Leitner-Hanetseder and Othmar M. Lehner
With the help of “self-learning” algorithms and high computing power, companies are transforming Big Data into artificial intelligence (AI)-powered information and gaining…
Abstract
Purpose
With the help of “self-learning” algorithms and high computing power, companies are transforming Big Data into artificial intelligence (AI)-powered information and gaining economic benefits. AI-powered information and Big Data (simply data henceforth) have quickly become some of the most important strategic resources in the global economy. However, their value is not (yet) formally recognized in financial statements, which leads to a growing gap between book and market values and thus limited decision usefulness of the underlying financial statements. The objective of this paper is to identify ways in which the value of data can be reported to improve decision usefulness.
Design/methodology/approach
Based on the authors' experience as both long-term practitioners and theoretical accounting scholars, the authors conceptualize and draw up a potential data value chain and show the transformation from raw Big Data to business-relevant AI-powered information during its process.
Findings
Analyzing current International Financial Reporting Standards (IFRS) regulations and their applicability, the authors show that current regulations are insufficient to provide useful information on the value of data. Following this, the authors propose a Framework for AI-powered Information and Big Data (FAIIBD) Reporting. This framework also provides insights on the (good) governance of data with the purpose of increasing decision usefulness and connecting to existing frameworks even further. In the conclusion, the authors raise questions concerning this framework that may be worthy of discussion in the scholarly community.
Research limitations/implications
Scholars and practitioners alike are invited to follow up on the conceptual framework from many perspectives.
Practical implications
The framework can serve as a guide towards a better understanding of how to recognize and report AI-powered information and by that (a) limit the valuation gap between book and market value and (b) enhance decision usefulness of financial reporting.
Originality/value
This article proposes a conceptual framework in IFRS to regulators to better deal with the value of AI-powered information and improve the good governance of (Big)data.
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Antti Rautiainen and Vilma Luoma-aho
This article analyzes the links between financial reports and reputation in the context of Finnish public sector organizations. In general, the paper discusses the accounting…
Abstract
Purpose
This article analyzes the links between financial reports and reputation in the context of Finnish public sector organizations. In general, the paper discusses the accounting treatment of intangible and tangible assets and the quality and relevance of public sector financial reporting.
Design/methodology/approach
For data, we combine three data sets: financial statement information of eight anonymous Finnish public organizations, the results of a reputation survey among their key stakeholders (N = 914) and a sample of the social media sentiment around the organizations.
Findings
Our findings suggest that a decrease in spending and, surprisingly in the nonprofit sector, an increase in the surplus, indicate better perceived financial performance. An increase in surplus is positively linked with the reputational factors, for example, trust. However, disclosing excessive amounts of information, for example, in financial reporting seems to contribute to negative discussions on social media.
Practical implications
We highlight the importance of managing intangibles, including those not recognized in the balance sheet, such as reputation. We present three propositions with potential managerial relevance.
Originality/value
Despite the considerable amount of financial information disclosed by public sector organizations, few studies have analyzed its relevance or connection to reputation. This first-of-a-kind paper combines intangible and tangible assets by analyzing how financial data and intangible reputation are linked in the public sector accounting context. Six reputational factors were discovered, and financial performance was found to correlate with trust in the public sector.
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Abstract
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Wessel M. Badenhorst and Rieka von Well
This paper aims to investigate the pricing of discretionary earnings in South Africa. This is a unique setting, as South African listed firms also report mandatory non-GAAP…
Abstract
Purpose
This paper aims to investigate the pricing of discretionary earnings in South Africa. This is a unique setting, as South African listed firms also report mandatory non-GAAP earnings (“headline earnings”).
Design/methodology/approach
Results are based on multivariate regression analyses for South African firms that report from 2010 to 2019.
Findings
Findings show that the value-relevance of discretionary earnings exceeds that of both GAAP earnings and headline earnings. In addition, placement of discretionary earnings reconciliations communicates information about the decision-usefulness of earnings.
Originality/value
Discretionary earnings remain the most value-relevant earnings measure, despite the divergent decision-useful characteristics offered by headline earnings and GAAP earnings. Therefore, the most decision-useful earnings reflect unique industry or firm characteristics rather than the assurance arising from regulation.
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Mohammad B. Hamida, Tuuli Jylhä, Hilde Remøy and Vincent Gruis
Adaptability is an inherent quality in building circularity, as adaptability can physically facilitate the reversibility of materials in a closed-reversible chain, also called…
Abstract
Purpose
Adaptability is an inherent quality in building circularity, as adaptability can physically facilitate the reversibility of materials in a closed-reversible chain, also called “loops”. Nevertheless, positioning adaptability in circularity-oriented models could overlook some of the contextual considerations that contribute to the utility for the built environment. This paper reconceptualises building adaptability to incorporate circularity, in order to facilitate for the resource loops whilst preserving the long-lasting functionality in buildings.
Design/methodology/approach
An integrative literature review on adaptability and circularity of buildings was conducted using systematic search approach. From the initial database of 4631 publications, 104 publications were included for the final analysis. A comparative analysis of definitions and determinants of both concepts was conducted to reconceptualise circular building adaptability.
Findings
The findings of the literature study show that incorporating circularity and adaptability is possible through 10 design and operation determinants, namely configuration flexibility, product dismantlability, asset multi-usability, design regularity, functional convertibility, material reversibility, building maintainability, resource recovery, volume scalability, and asset refit-ability. The study concludes that considering the defined determinants in a holistic manner could simultaneously facilitate: building resilience to contextual changes, creation of asset value, and elimination of waste generation.
Originality/value
This paper expands the relevant bodies of literature by providing a novel way of perceiving building adaptability, incorporating circularity. The practical value of this paper lies in the discussion of potential strategies that can be proactively or reactively employed to operationalise circular building adaptability.
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Jason Donovan, Nigel Poole, Keith Poe and Ingrid Herrera-Arauz
Between 2006 and 2011, Nicaragua shipped an average of US$9.4 million per year of smallholder-produced fresh taro (Colocasia esculenta) to the USA; however, by 2016, the US market…
Abstract
Purpose
Between 2006 and 2011, Nicaragua shipped an average of US$9.4 million per year of smallholder-produced fresh taro (Colocasia esculenta) to the USA; however, by 2016, the US market for Nicaraguan taro had effectively collapsed. The purpose of this paper is to analyze the short-lived taro boom from the perspective of complex adaptive systems, showing how shocks, interactions between value chain actors, and lack of adaptive capacity among chain actors together contributed to the collapse of the chain.
Design/methodology/approach
Primary data were collected from businesses and smallholders in 2010 and 2016 to understand the actors involved, their business relations, and the benefits and setbacks they experienced along the way.
Findings
The results show the capacity of better-off smallholders to engage in a demanding market, but also the struggles faced by more vulnerable smallholders to build new production systems and respond to internal and external shocks. Local businesses were generally unprepared for the uncertainties inherent in fresh horticultural trade or for engagement with distant buyers.
Research limitations/implications
Existing guides and tools for designing value chain interventions will benefit from greater attention to the circumstances of local actors and the challenges of building productive inter-business relations under higher levels of risk and uncertainty.
Originality/value
This case serves as a wake-up call for practitioners, donors, researchers, and the private sector on how to identify market opportunities and the design of more robust strategies to respond to them.
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Ana Carolina Ogando, Sally Roever and Michael Rogan
This paper explores the perceptions and experiences of women and men who work as informal waste collectors in four different cities. The purpose of this paper is to map out how…
Abstract
Purpose
This paper explores the perceptions and experiences of women and men who work as informal waste collectors in four different cities. The purpose of this paper is to map out how and to what extent occupational, political-legal, economic and social dynamics are experienced differently by gender in a highly vulnerable segment of the urban informal economy, and explore gender differences in these workers’ coping strategies and the levels of action they develop to protect their livelihoods.
Design/methodology/approach
The analysis is based on a mixed methods study which combined a quantitative survey of informal workers with a qualitative participatory methodology. Study participants were drawn from a purposive sample of informal workers who belong to, or are affiliated with, membership-based workers’ organisations. The sample consists of waste pickers (n=614) from Belo Horizonte, Brazil; Bogotá, Colombia; Durban, South Africa; and Nakuru, Kenya.
Findings
The data show that despite significant differences between women and men upon entry into (informal) employment, their perceptions of key drivers and impacts are largely similar, with the exception of concerns around various types of physical security among women. They also indicate that levels of action among men and women waste pickers are only moderately influenced by gender, but are strongly influenced by the degree of organisation in the sector and the symbolic assets held by workers. The findings also illustrate the way in which gendered power dynamics operate within the informal recycling sector and how different levels of sector organisation and development often contribute to opportunities for collective action and, in turn, a reduction in gendered vulnerabilities.
Originality/value
The study offers a new policy angle which connects the level of sector organisation and development with the levels of action taken by informal workers in adapting to different types of shocks, as well as what this means in terms of gender empowerment.
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