Search results

This chapter investigates whether core competence of managers and their expansive (vs. specialized) managerial style affects firms' innovative ability, capacity, and efficiency. Using exogenous CEO departures as a natural experiment, it establishes a causal link between managerial capability and innovation. Importantly, it reveals that firms with talented managers receive significantly more nonself citations; make significantly lower self-citations and lesser citations to the others, indicating novel and explorative innovation achievements. Also, managers with higher general (specialized) ability are cited more (less) by patents from a wider range of fields. Lastly, career concern is identified as a mechanism linking higher ability and innovation.

Purpose: This paper aims to study the impact of adoption eXtensible Business Reporting Language (XBRL) on earnings management.

Design/methodology/approach: This study uses a sample of all firms listed on the Indonesian stock exchange, except for finance and real-estate sectors from 2012 to 2019, with a total of 2,560 firms–years with panel data analysis.

Findings: Four findings in this study are listed as follow. First, the surprising result is that accrual earnings management increase after the adoption of XBRL. Second, after the adoption of XBRL, there was an increase in real earnings management. Third, the results of the study prove that the use of Big 4 auditors will weaken the increase in real earnings management after the adoption of XBRL. Finally, this study shows that after the adoption of XBRL, it turns out that both accrual and real earnings management experienced an increase.

Originality/value: This study contributes to providing an evaluation note to IDX regulators that the goals they want to achieve have not been achieved. This study provides empirical evidence for the debate over whether the adoption of XBRL is beneficial.

This chapter aims at examining financial distress issue by designing a comprehensive model to explain and predict financial distress in Egypt. This comprehensive model incorporates accounting ratios, market-based ratios and macroeconomic ratios. The sample of the existing research includes all the listed firms in two main sectors: basic resources and chemicals. Using logistic regression model, the results showed that adding market ratios and macroeconomic ratios enhances the predictability of the model and accounting information are not sufficient to explain financial distress.

This paper introduces a new quinquennial dataset of educational inequality disaggregated by age group for 146 countries, from 1950 to 2010, by using the Gini index of education as a measure of the distribution of years of schooling. Based on recent estimates of average years of schooling from Barro and Lee (2010), our calculations take into consideration, for the first time, the changes over time in the duration of educational stages, in each country and for each age group. The downward trends in educational inequality observed during the last decades depend on age group, gender, and development level.

We analyze the economic consequence of government intervention on the incidence of accounting fraud and audit fees of both Big 4 and local big auditors on Chinese audit market in the period 2006–2013. In 2009, Chinese government issued favorable polices to local big auditors and required certain Chinese companies to give priority to these auditors. We find that market share of Big 4 auditors is quite stable before and after government intervention, but market share of local big auditors increases at the cost of local small auditors after intervention. Although audit fee premiums of both local big and Big 4 auditors have increased after intervention, the positive effect of local big auditors on audit fee premiums has significantly decreased. Further, both Big 4 and local big auditors are not likely to reduce the incidence of accounting fraud in pre- and post-intervention period. Our results suggest that Chinese government support to local auditors does not significantly enhance these auditors’ competitiveness in terms of audit fee and audit quality.

This study conducts a logistic regression analysis of the ability of excess cash and short-term bank loans to substitute for each other and a multiple regression analysis of the factors influencing excess cash and short-term bank loans holdings. In addition, a questionnaire is used to survey the views of Taiwan’s corporate financial leaders on the factors influencing these two liquidity resources. The empirical results support a certain level of substitution between the two types of holdings. The regression analysis shows that for companies that would accumulate more excess cash when interest rates are low, have strong corporate performance, have low debt ratios, and whose chairman of the board and chief executive officer (CEO) are not the same person. Companies tend to have more short-term bank loans when corporate performance is poor, debt ratios are high, and the chairman of the board and CEO are the same person, as well as when the degree of the deviation of control is small. We find that factors on financial structure, operating performance, cost of capital and corporate governance have significant influence on the holdings of these two liquidity facilities in regression, whereas the influence factors exclude corporate governance in questionnaire.

This study investigates the role of opportunistic behavior in earnings management. Using listed firms in the Indonesia Stock Exchange as the object of study, our examination shows that profitability's opportunistic behavior affects earnings management significantly. The higher the profitability, the higher the earnings management will be. Financial distress also affects the tendency of earnings management. The more severe financial distress, the higher the earnings management is. Another important finding is that bigger firms tend to perform more earnings management activities. This study contributes to earnings management and agency problems research in the context of go public firms in emerging markets since opportunistic earnings management will prevent investments, which will hamper the country's economic growth. This study also contributes to entrepreneurial studies. The manager is considered an entrepreneur CEO, so all the management strategies affect company value, including how the manager communicates the earnings information to accounting information users.

Purpose: The purpose of this chapter is to explore the current usage of robots, artificial intelligence and service automation in travel agencies (TA) and tourist information centres (TIC), and to provide insights about the future deployment of those technologies in the operations of travel agencies and tourist information centres

Design/methodology/approach: The chapter makes a review of travel agencies’ operations in the context of tourist consumer behaviour and then explores the current technologies utilized by TAs and TICs. There are forecasts about the future development of technologies in the TAs, discussing emerging issues and challenges, and final implications with concluding thoughts.

Findings: TA and TIC have incorporated a lot of automated technologies in their operations by numerous software applications; AI is still to proliferate and further excel, and the whole customer interaction tends to take place almost entirely in the digital space.

Research implications: TAs will continue to develop B2C or B2B software to increase their distribution efficiency and footprint through powerful computing capabilities, user-friendly systems, transparency, low fault rate, ease of search and real-time confirmation; virtual and augmented realities will become a standard. Back office tedious tasks and processes will be eliminated by the right software, which will further reduce the paper flow, increase cost-effectiveness and leverage the human involvement in the ordinary procedures of filing, reporting, administering, and analysing data

Social implications: The advance of technologies has certainly empowered the end customers, making them not only informed, but also more engaged. Consequently, the future technological development in TAs operation will focus on higher personalization, but at the expense of higher standardization of technologies.

Originality/value: TAs have certainly embraced technology integration as the only pathway to remain competitive and viable. The future development of RAISA in TAs seem to progress to full automation and AI integration where appropriate. The most challenging obstacles connected with technology introduction in TAs seem to be legal regulations, personal data protection, security issues and technical compatibility, but also moral issues like ethics and cultural understanding.

This chapter covers a full picture of the remaining chapters. The first part discusses the gap in the literature and the main objectives of this book. The next section overviews the book's design and methodology which includes the conceptual model, the research design and the research methodology. The final section in this chapter is the book's theoretical and practical contributions.