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Article
Publication date: 1 April 2002

P.L. Joshi and H. Al‐Bastaki

This study examines the perceptions of 41 corporate chief accountants from Bahrain on the issues relating to the relative importance of international accounting topics in Bahrain…

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Abstract

This study examines the perceptions of 41 corporate chief accountants from Bahrain on the issues relating to the relative importance of international accounting topics in Bahrain. The study indicates a significant interest of the respondents in internationalizing the accounting curriculum. The topics which received importance rating of over 80% were: foreign investment and decision making, international accounting standards, financial reporting and disclosure, foreign currency transactions and translation, management information system (MIS) for multinational enterprises (MNEs), and consolidations. Results were also compared to a recent study from United States (US) and significant differences were found to exist in respect of several topics. The reasons for the major differences in the perceptions are explained in this paper, some of which may be attributed to cultural as well as environmental differences. The study also found that there is a strong support for adoption of the International Accounting Standards (IASs) because international markets are becoming increasingly important and there exists major differences in accounting principles among the Gulf Cooperation Council (GCC) countries themselves. Furthermore, the study also suggests that in view of the similarity in social, economic, and business practices in GCC countries, the highly ranked accounting topics reported in this study should perhaps be incorporated by the accounting departments of universities operating in the GCC region. This will facilitate the process of harmonization of the accounting curriculum in this region.

Details

Meditari Accountancy Research, vol. 10 no. 1
Type: Research Article
ISSN: 1022-2529

Keywords

Article
Publication date: 1 January 2003

P.L. Joshi and Jawaher Al‐Modhahki

In this paper, we examine the factors that are likely to explain the use of the internet as a vehicle for voluntary financial reporting by companies in Bahrain and Kuwait. A total…

Abstract

In this paper, we examine the factors that are likely to explain the use of the internet as a vehicle for voluntary financial reporting by companies in Bahrain and Kuwait. A total of 75 companies (Kuwait 42 and Bahrain 33) were investigated to find out if they had websites and presented their financial statements on the internet. For Kuwait, 47.6% and for Bahrain 48.5% of sample companies had their own websites. Six variables were tested to examine their influence on the financial reporting by companies on the internet. A discriminant analysis was performed on the data and the results indicated that size (log of total assets) and industry were the main factors which influenced the financial reporting practices of companies on the internet. These results are in line with prior evidence. There is some indication that risk may also contribute to some extent in such decision. Perceptions of advantages and problems in using this new technology for financial reporting were also examined. It appears that the usage of this technology is still limited and slow in this part of the world, perhaps because of cultural dimensions and constraints.

Details

Asian Review of Accounting, vol. 11 no. 1
Type: Research Article
ISSN: 1321-7348

Book part
Publication date: 4 October 2018

Lucrezia Songini, Chiara Morelli and Paola Vola

Notwithstanding the relevance of managerial control systems (MCS) in any organization, as well the distinctive role they can play in family business, due to its specific features…

Abstract

Notwithstanding the relevance of managerial control systems (MCS) in any organization, as well the distinctive role they can play in family business, due to its specific features, the literature rarely dealt with the role and characteristics of MCS in family business. Taking into account previous contributions from different disciplines (organization, management accounting, and family business), the current work aims to better understand the state of the art about research in the field of MCS in family business in order to identify main research gaps and propose future research directions.

Forty-five articles have been analyzed, which were issued in 29 sources. Research findings show that the literature on MCS in family business is limited and not very conclusive. Some authors focused on the type of controls, other authors outlined the role of MCS in managerialization and the relation with professionalization. A few studies focused on some specific mechanisms, especially strategic planning and compensation. Some contributes dealt with MCS’ determinants and impacts. Differences between family and non-family firms were proposed. However, a clear and organized picture of the features of MCS in family firms, their determinants, and impacts has not yet been developed. Particularly, the impact of the distinctive features of family business on MCS represents an underdeveloped research field along with how MCS can be differently developed and used in different kinds of family firms. In the light of findings of the literature review, we propose a reference research framework on MCS in family business.

Details

Performance Measurement and Management Control: The Relevance of Performance Measurement and Management Control Research
Type: Book
ISBN: 978-1-78756-469-5

Keywords

Book part
Publication date: 1 March 2012

Abstract

Details

Globalization and Contextual Factors in Accounting: The Case of Germany
Type: Book
ISBN: 978-1-78052-245-6

Article
Publication date: 6 June 2023

Kitty Mo Kong and Hedy Jiaying Huang

This paper investigates whether the audit fees of Chinese listed firms are associated with the share pledging practice of the firm’s controlling shareholders.

Abstract

Purpose

This paper investigates whether the audit fees of Chinese listed firms are associated with the share pledging practice of the firm’s controlling shareholders.

Design/methodology/approach

This study uses the audit pricing model to estimate the association between the share pledging of listed firms and audit fees. Cross-sectional analysis is conducted on a large sample of Chinese listed firms during the period 2004 to 2019. The authors further test the moderating effects of listing on the Main Board, state ownership and abnormal audit report lag on the association between share pledging and audit fees. The results remain robust to various endogeneity tests including two-stage least squares instrumental variable analysis, entropy balancing analysis and difference-in-difference analysis.

Findings

The study finds that audit fees are positively associated with the proportion of shares pledged by the listed firm’s controlling shareholder in China. The results also provide new evidence that the positive association between audit fees and the share pledging of controlling shareholders could be mitigated if the firm is listed on the Main Board and/or it is a state-owned enterprise. In contrast, pledged firms with abnormal audit report lag are found to have higher audit fees than their pledged counterparts without the excessively long audit delay.

Practical implications

Findings of this study have important practical implications to those charged with governance, as boards need to comprehensively understand the adverse consequences of share pledging when pursuing it as the firm’s major source of financing. The study also has policy implications for stock market regulators such as the China Securities Regulatory Commission in China. Regulators could consider developing a threshold-based share pledging disclosure and pledge ratio requirements based on factors such as a firm’s listing status and ownership structure.

Originality/value

This study provides new evidence on the audit-related consequences of share pledging in a significant capital market. Findings of this study also enrich the existing audit literature by introducing the share pledging activities of controlling shareholders into the audit pricing decision-making model.

Details

Pacific Accounting Review, vol. 35 no. 4
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 1 February 1995

P.L. Joshi and Jasim Abdulla

This study makes a critical examination of the present accounting standard setting process and current issues and practices of corporate financial reporting (CFR) in an Indian…

Abstract

This study makes a critical examination of the present accounting standard setting process and current issues and practices of corporate financial reporting (CFR) in an Indian context by referring to 95 annual reports of large sized companies. It is found that Indian accounting standards have many alternative accounting choices which make financial statements of companies less comparable. The Accounting Standard Board (ASB) has issued 12 definite accounting standards, yet none of them has been reviewed. The membership of ASB lacks proper representation particularly from the users side. The standard setting process has deficiencies in the absence of public hearing and the machinery for enforcement of accounting standards is not apparent. While a review of CFR shows a strong tendency for companies to follow strict legal requirements in the disclosure and preparation of financial statements, there is much diversity in voluntary reporting practice particularly with respect to value added accounting, reporting by segments, inflation accounting, human resource accounting, and corporate social performance reporting, and there has been a tendency towards minimum disclosure. The study suggests that, to improve standards the Institute of Chartered Accountants in India should establish a Financial Reporting Council (FRC) to oversee ASB and to prepare a conceptual framework for financial reporting purposes.

Details

Asian Review of Accounting, vol. 3 no. 2
Type: Research Article
ISSN: 1321-7348

Article
Publication date: 8 July 2024

Tamer Elswah, Eid Abozaid and Ahmed Diab

The various factors influencing audit fees are still unclear, which may undermine the possibility of attaining fair audit pricing. Against this concern, this study aims to…

Abstract

Purpose

The various factors influencing audit fees are still unclear, which may undermine the possibility of attaining fair audit pricing. Against this concern, this study aims to investigate the relationship between the auditee’s corporate characteristics and audit fees. In addition, it reveals if accounting comparability, as a proxy for financial reporting quality, mediates such a relationship by bringing evidence from an emerging market.

Design/methodology/approach

This study depends on data from nonfinancial companies listed on the Egyptian stock exchange from 2016 to 2019. It adopts multiple regression models to test the impact of corporate characteristics and accounting comparability on audit fees and uses path analysis to test the indirect effect of the audit clients’ characteristics on audit fees through accounting comparability.

Findings

The authors found a significant positive (negative) effect of firm profitability on audit fees (accounting comparability). Further, accounting comparability has a significant negative effect on audit fees. The authors also found that accounting comparability partially mediates the significant relationship between profitability and audit fees. However, the authors found no significant association between leverage and audit fees. Finally, the authors found that accounting comparability does not mediate the relationship between leverage and audit fees.

Practical implications

This study’s findings can benefit audit practitioners in Egypt by showing the main factors affecting audit fees, especially audit clients’ attributes. The current findings also guide professional bodies responsible for issuing accounting and audit standards regarding the importance of financial reporting quality for audit pricing decisions.

Originality/value

This study contributes to the literature by examining the mediating effect of accounting comparability concerning the corporate characteristics-audit fees relationship in developing African countries such as Egypt. This study’s findings can benefit audit practitioners in Egypt by showing the main factors affecting audit fees, especially audit clients’ attributes. The current findings also guide professional bodies responsible for issuing accounting and audit standards regarding the importance of financial reporting quality for audit pricing decisions.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 8 May 2018

Duc Phan, Mahesh Joshi and Bruno Mascitelli

The purpose of this paper is to examine the effects of perceived implications of International Financial Reporting Standards (IFRS) adoption on the willingness to adopt IFRS.

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Abstract

Purpose

The purpose of this paper is to examine the effects of perceived implications of International Financial Reporting Standards (IFRS) adoption on the willingness to adopt IFRS.

Design/methodology/approach

The study analysed the causal relationships between perceptions and the willingness of the accountants to adopt IFRS.

Findings

The findings revealed that perceived benefits drove the willingness to adopt IFRS whereas the perceived disadvantages and challenges diminished the willingness. Knowledge of IFRS enhanced the willingness towards IFRS adoption. Also, legitimacy desire enhanced the association between the perceived implications and the willingness to adopt IFRS.

Originality/value

The study contributes significantly to theory and practice as Vietnamese policy makers recently announced their strategic planning to full IFRS adoption by 2025.

Details

Asian Review of Accounting, vol. 26 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 18 August 2022

Jayalakshmy Ramachandran, Yezen H. Kannan and Samuel Jebaraj Benjamin

This paper aims to investigate auditors’ pricing of excess cash holdings and the variation in their pricing decisions in light of the precautionary motives of cash holdings and…

Abstract

Purpose

This paper aims to investigate auditors’ pricing of excess cash holdings and the variation in their pricing decisions in light of the precautionary motives of cash holdings and certain firm-specific conditions and during periods of crisis.

Design/methodology/approach

The authors conduct the two-stage-least-squares multivariate analysis using a sample of publicly listed non-financial US firms for the period 2003 to 2021 (42,413 firm-year observations).

Findings

The findings show a significant positive relationship between excess cash and audit fee. Next, the authors find that audit pricing of excess cash is significantly higher for firms with lower financial constraints. However, the authors do not find evidence to suggest that auditors price excess cash significantly higher for firms with lower hedging needs. In additional analysis, the authors find evidence to suggest that auditors charge significantly less for excess cash in firms that report financial loss and firms operating in industries with high litigation risk. The additional analysis also reveals excess cash is not positively and significantly priced by auditors as a result of the global financial crisis and Covid-19 pandemic.

Originality/value

Most researchers have analyzed excess cash holding from the perspective of managers, i.e. agency conflict or managerial prudence, while somewhat neglecting auditors’ perception of the embedded risk of excess cash holdings. The authors provide new insights on auditors’ perspective of excess cash holding and identify certain factors/situation/conditions that cause variation in the audit fee premium. The findings offer useful insights for managers and shareholders who are interested in assessing the effects of excess cash holdings policies on the audit fee premium.

Details

Meditari Accountancy Research, vol. 31 no. 5
Type: Research Article
ISSN: 2049-372X

Keywords

Book part
Publication date: 17 July 2015

Matthias D. Mahlendorf, Utz Schäffer and Oliver Skiba

Participative budgeting is one of the most intensively researched budgeting variables in management accounting. Research has stalled, however. The purpose of this paper is to…

Abstract

Purpose

Participative budgeting is one of the most intensively researched budgeting variables in management accounting. Research has stalled, however. The purpose of this paper is to stimulate further research by providing an overview of antecedents of participative budgeting and suggesting ways to build upon extant research.

Methodology/approach

We assess 22 studies published prior to 2011 that offer statistical insights into why organizations use participative budgeting by theorizing and modeling it as a dependent variable.

Findings

This work answers two research questions regarding why organizations use participative budgeting: (a) Which antecedents of participative budgeting have been analyzed so far? (b) Which causal-model forms are used in extant research regarding the antecedents of participative budgeting?

Originality/value

This paper provides a detailed overview of empirical studies and respective findings aiming to explain why organizations use participative budgeting. Many prior studies have measured the association between contextual antecedents and participative budgeting. However, from a theoretical perspective, objectives of employees and supervisors are often used to explain the relation. Based on our literature review, we propose that all objectives identified so far intervene in the relationship between context and use of participative budgeting and also further detail these objectives. Consequently, our review analyzes the status quo of research on why organizations use participative budgeting and adds additional suggestions of underlying causal processes that can be tested in future studies.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78441-650-8

Keywords

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