Search results

The purpose of this study is to explore the degree of compliance of a sample of European Union (EU) listed groups with the International Financial Reporting Standard 15 (IFRS 15) mandatory disclosures in two specific sectors, namely, telecommunication and construction.

To carry out this research, the authors selected 22 annual reports for the year 2018. The authors created and completed a datasheet based on a close review of the IFRS 15 disclosure requirements. A content analysis of the selected annual reports was then performed.

The results show that the sampled groups do not fully comply with the IFRS 15 mandatory disclosures and the degree of compliance differs between the two investigated sectors.

To the best of the authors’ knowledge, this study explores, for the first-time, the degree of compliance with the IFRS 15 mandatory disclosures, by focusing on a cross-country sample of EU listed groups.

This paper aims to investigate the role of cognitive moral development (CMD) in tax compliance decision. In particular, the study compares tax compliance degree in two different tax systems: synergistic and antagonistic tax climates.

Build on the CMD theory, this study uses a paper and pencil laboratory experiment that involved 157 participants to test the hypotheses.

CMD has significant contribution to the tax compliance decision, especially for taxpayers at both the pre-conventional and conventional level. Taxpayers who have achieved post-conventional level, however, do not shift their compliance degree even when the tax climate changed. The present results support the CMD theory.

To the best of the authors’ knowledge, the present study is the first to investigate the role of CMDin tax compliance decision by comparing two different tax systems: synergistic and antagonistic tax climates. This study has theoretical and practical contributions. From theoretical perspective, the findings provide evidence that CMD influence tax compliance decision-making processes. In the practical terms, this research may provide a deep insight on the important of government and tax authorities to improve the taxpayers’ moral cognitive, e.g. through any activities which aims to boost them to the level of post-conventional.

The objective of this study is to know how income taxpayers perceive the Jordanian income tax fairness and to determine the degree of income taxpayers’ compliance in Jordan. Moreover, the study aims to investigate the effect of income tax fairness on taxpayers’ compliance degree in Jordan. An empirical survey using self‐administered questionnaire has been carried out to achieve the objectives of this study. The survey included 275 respondents among income taxpayers in Jordan, but just 246 copies were received. Based on the revision of the literature framework, and in order to achieve the above‐mentioned objectives, eight hypotheses were developed and tested using t‐test through the methods of “one sample t‐test”, and “simple linear regression”. The study reveals that income taxpayers in Jordan perceive the Jordanian income tax as fair. The study also reveals that there is a high degree of income taxpayers’ compliance in Jordan. Moreover, the study concludes that income tax fairness affects income taxpayers’ compliance, but tax fairness alone doesn’t interpret all the change that occurs in taxpayers’ compliance issue.

This paper aims to develop a classification scheme of different types of value for money (VFM) audits with different degrees of compliance audit, and to classify the performance audits carried out by the Swedish National Audit Office (SNAO) during its first six years as an independent state audit organization reporting to parliament.

The empirical data were gathered from all of the 150 audit reports published by the SNAO from its establishment in 2003 to the end of 2008. Seminars were arranged to discuss the classifications for validation.

The focus on traditional VFM audits (the “Three Es”) is unusual. Most audits carried out by the SNAO combine different types of extended VFM audits with compliance audit. On the one hand, they audit how the government and/or central agencies fulfil their mandates (from good to bad). On the other, they audit how the government and/or central agencies adhere to legislation, rules and policies (right or wrong). In some cases, the SNAO equates compliance audit with performance audit.

The authors have verbalised and visualised performance audit activities of interest not only to state auditors, but also to external stakeholders. One practical implication is that the Swedish national audit committee has conducted an evaluation of the SNAO that is partly based on the national report of this study, and has proposed a stronger focus on the Three Es.

The study addresses a new approach in terms of a classification scheme for performance audits, consisting of eight types of VFM audits and three degrees of compliance audit, and creating 24 possible combinations.

This paper reports the results of a study on the half‐yearly reporting compliance practices of Australian and Singapore listed companies. The possible influence of four contingent variables (country of origin, industry, company size and debt leverage) upon compliance practices is considered. In relation to the issue of half‐yearly reporting, a theoretical framework developed by Thomas (1991) is utilised by linking the variables examined to compliance practices adopted. 186 half‐yearly reports were examined for this study in the 1995/6 fiscal year from Australia and Singapore. The degree of compliance was measured using a compliance index. A series of statistical tools, namely analysis of variance (ANOVA), independent sample t‐test, logistic and multiple regressions, were used to analyse the data collected. Tests conducted to examine whether there was a significant country‐effect upon compliance practices adopted found overwhelming evidence to conclude that Singaporean companies' compliance was significantly higher than their Australian counterparts.

The purpose of this paper is to investigate Malaysian companies’ compliance with mandatory accounting standards. Specifically, this study examines the efficacy of agency-related mechanisms on the degree of compliance with Financial Reporting Standards (FRS) 101, Presentation of Financial Statements. It so proceeds by focussing on corporate governance parameters (board characteristics and ownership structure) and other firm characteristics.

Using data drawn from a sample of 105 Malaysian companies listed on the ACE market in 2009, the authors employ multiple regression analysis models to establish whether selected corporate governance and company-specific characteristics (proxying for agency-related mechanisms) are related to the degree of disclosure compliance.

The results indicate that the overall disclosure compliance is high (92.5 per cent). Furthermore, only firm size is positively associated with the degree of compliance. The other variables, those consisting of board independence, audit committee independence, CEO duality, the extent of outside blockholders’ ownership and leverage, do not show any significant relationship with the degree of compliance.

This study focusses on only one accounting standard (FRS 101) that is mandatory in Malaysia. FRS 101 is both structured and rigid, leaving no room for companies to conceal any particular information. The sample of Malaysian companies selected is restricted to those listed only on the ACE market. As such, the results cannot be generalised to every company in Malaysia.

These results have important implications for policy makers because they suggest that whilst agency-related mechanisms may motivate compliance with mandatory standards, full compliance may be unattainable without regulations.

This is the only study in Malaysia to investigate the impact of regulatory requirements on corporate compliance level by companies listed on the new ACE market, which was introduced by the Bursa Malaysia in August 2009. This study contributes to the literature by examining the effects of both company-specific characteristics (such as company size, company age, liquidity, etc.) and corporate governance parameters on the degree of corporate compliance with mandatory disclosure, simultaneously, in contrast with prior studies which have examined them in isolation.

The purpose of this paper is to identify and test predictors for countries to comply with the Financial Action Task Force’s (FATF) anti-money laundering and terrorist financing recommendations.

The authors conduct a quantitative study to explore which factors predict compliance of countries. They include the compliance scores of 196 countries.

The results of a forward stepwise regression analysis show that a country’s wealth, measured as gross domestic product (GDP) per capita, is the most important predictor for compliance. This result supports earlier academic work about predictors for compliance (Simmons, 1998; Giraldo and Trinkunas, 2007; Whitaker, 2010). The other factors identified suffering from terrorist attacks, relative financial market dominance, tourism sector and the degree of democracy do not explain additional variance in compliance.

This research sheds light on compliance as a concept. For policymakers, accountants, companies and governments, it is important to understand why compliance occurs and why not.

The empirical results indicate that, in contrast to common belief, countries that suffer more from terrorism are not more compliant. Moreover, the rate of democracy, a relative dominant financial market and a strong tourism sector do not stimulate compliance with anti-terrorist financing standards.

The purpose of this paper is to review a synthesis of theories and empirical studies dealing with the adoption of and compliance with IFRS in developing countries in an attempt to provide directions for future research.

The review focusses on four main streams including: first, the motives for IFRS adoption; second, corporate characteristics and the degree of compliance with IFRS; third, the economic consequences of IFRS adoption and finally; fourth, the use of regulation as an enforcement mechanism to monitor compliance with IFRS. The authors review empirical studies specifically devoted to developing countries.

Regarding the first stream relating to IFRS adoption, the macroeconomic decision of adopting IFRS in developing countries can be justified by two main theories which are: the economic theory of network (Katz and Shapiro, 1985) and isomorphism (DiMaggio and Powell, 1991), however, empirical evidence in developing countries to confirm these theories is limited. Regarding the second stream relating to corporate characteristics and the degree of compliance with IFRS, the authors find that the results are mixed. Regarding the third stream relating to the economic consequences of IFRS adoption, it seems that the evidence is still limited in developing countries especially with respect to the impact of IFRS adoption on foreign direct investment, cost of equity capital and earnings management. Regarding the fourth and final stream in relation to regulation, enforcement and compliance with IFRS, the authors find that research is very limited. It was evidenced in the very few research studies conducted, that global disclosure standards are optimal only if compliance is monitored and enforced by efficient institutions.

The author’s study attempts to provide a foundational knowledge resource that will inform practitioners, researchers and regulators in developing countries about the relevance of the different theories that exist in the accounting literature to explain the adoption of and compliance with IFRS.

Compared to developed countries, the four streams outlined remain under-researched in developing countries. Therefore, researchers should examine these topics in developing countries to inform practitioners, regulators and the capital market about the effects of adopting IFRS and their relevance to developing countries. In addition, researchers should embark on identifying new theories to explain the adoption of and compliance with IFRS in developing countries that take into consideration the socioeconomic culture of these settings.

Construction enterprises increase their competitive advantage by joining the project ecosystem, but the dual nature of the enterprise’s niche has attracted attention, and existing research has gaps in understanding niche and ecosystem governance issues. This study aims to promote ecosystem compliance governance by exploring the impact of the niche of the key role of construction enterprises on compliance behavior.

First, the study proposes a model on the impact of the enterprise's niche on its compliance behavior and the mediating role of the enterprise's perception of sanctions and the moderating role of a shared vision for compliance of ecological partners within these relationships. Second, we used 205 samples, who were Chinese contractors with international construction project experience through a questionnaire survey. Third, the study conducted a hierarchical regression to test the hypothesis.

The results show that construction enterprises with a wider niche or with a higher degree of niche overlap are more inclined to performance compliance. Enterprises' perception of sanctions plays a part in mediating the enterprise's niche and compliance behavior. The relationship between enterprises' perception of sanctions and compliance behavior can be moderated by the shared vision for compliance of ecological partners. Given a low compliance shared vision of ecological partners, the impact of enterprise perception of sanctions on compliance behavior is positively stronger.

The findings provide valuable evidence upon which ecosystem governance needs to focus and leverage the role of key members, using the advantageous resources of key members as a fulcrum to leverage a larger governance scope. Construction enterprises should keep improving their niche and the shared vision for partners' compliance to promote the evolution and upgrading of cooperation to an ecosystem model that creates greater value.

This study provides new insights for future compliance governance in the project ecosystem by introducing the concept of niche and answering whether construction enterprises with a higher niche in the project ecosystem are more willing to implement compliance behavior.

The purpose of this paper is twofold: first, to assess the degree of disclosure about compliance with corporate governance code and the explanations provided by Italian firms and second, to analyze the relationships between this disclosure and different variables of ownership structure.

The sample was composed of 75 non-financial companies listed in Italy in 2016. Content analysis of the corporate governance statement and ordinary least squares (OLS) multiple regression models were used to test the hypotheses.

Companies tended to comply with the corporate governance code and to disclose this information, but when they decided to not comply, they did not provide adequate explanations. Findings revealed a negative relation between ownership concentration and the disclosure analyzed. Results also highlight that a more equal distribution of shares among larger shareholders is beneficial for disclosure. Moreover, the presence of a dominant financial shareholder at a high level of ownership concentration creates inefficiency of the degree of adherence to the comply-or-explain principle.

This study examines in depth the underexplored issue of “explanation” and exceeds the issue of ownership concentration, which has already been examined extensively, raising the issues of counterweight power and shareholders’ identities, which remain underexplored. In this way, results presented contribute to explaining some causes of the diverse findings that research has found about the relationship between ownership concentration and voluntary disclosure, demonstrating the importance of counterweight power and largest shareholder’s identity. Consequently, when self-regulating initiatives are designed and implemented, legislators, regulators and managers should not ignore the characteristics of the firms’ ownership structure.