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This study aims to examine the economic consequences of, and managerial behaviour in response to, the introduction of IFRS 16 Leases. It extends the debt covenant hypothesis to explain why firms reduce the use of operating leases with the introduction.

This study develops a model, based on operating leases as an alternative financing source and the determinants of debt policy, to estimate the effects of gearing on operating lease intensity. High gearing is a proxy to probably closer to the violation of, or expected to violate, the gearing restriction in debt covenants given the retrospective capitalisation of operating leases, when IFRS 16 takes effect.

This study finds that operating lease intensity fell between 2011 (immediately after the first exposure draft leading to IFRS 16) and 2018 (immediately prior to the effective date of IFRS 16). It also finds that gearing affects changes in operating lease intensity over 2011 and 2018, consistent with the debt covenant hypothesis.

The introduction of IFRS 16 is a natural experiment with unique characteristics (the active lobbying behaviour, ex ante evidence on adverse economic consequences, a prolonged standard-setting period, etc.) valuable for accounting research.

A showcase about the relevance of financial reporting for contracting interests of firms and managers and a good reference for accounting standard setters in considering and managing the economic consequences of proposed accounting standards.

This study adds to the limited research on the consequences of accounting standards and documents the ex-post impact on firm leverage ratios and the behavioural aspects of reporting entities.

Prior accounting research views impression management predominantly though the lens of economics. Drawing on social psychology research, this paper seeks to provide a complementary perspective on corporate annual narrative reporting as characterised by conditions of “ex post accountability”. These give rise to impression management resulting from the managerial anticipation of the feedback effects of information and/or to managerial sense‐making by means of the retrospective framing of organisational outcomes.

A content analysis approach pioneered by psychology research is used, which is based on the psychological dimension of word use, to investigate the chairmen's statements of 93 UK listed companies.

Results suggest that firms do not use chairmen's statements to create an impression at variance with an overall reading of the annual report. It was found that negative organisational outcomes prompt managers to engage in retrospective sense‐making, rather than to present a public image of organisational performance inconsistent with the view internally held by management (self‐presentational dissimulation). Further, managers of large firms use chairmen's statements to portray an accurate (i.e. consistent with an overall reading of the annual report), albeit favourable, image of the firm and of organisational outcomes (i.e. impression management by means of enhancement).

The approach makes it possible to investigate three complementary scenarios of managerial corporate annual reporting behaviour: self‐presentational dissimulation, impression management by means of enhancement, and retrospective sense‐making.

Within the two-tier bargaining system, the role of complementary collective bargaining is somewhat controversial. In this paper, the authors analyse collective agreements from a triple perspective: scanning the contents of firm-level complementary collective agreements (CCAs); identifying the factors that determine the probability of signing a CCA and analysing the relationship between the latter and firm performance with a focus on the role of different negotiated topics.

The empirical procedure is based on 2 main linked sources: longitudinal balance sheet data and a cross-sectional dataset of a representative sample of Italian firms with at least 15 employees, including some retrospective information. The innovative dataset derives from integrating multiple sources. The main empirical approaches include Generalized Method of Moments (GMM) estimations, multivariate regressions, as well as instrumental variable (IV) estimations to overcome simultaneity issues.

With respect to the probability of signing a CCA, on the firms' side, the authors find a positive role of the degree of firm capitalisation and affiliation with an employers' association and a negative role of family firms compared to non-family firms; on the workers' side, a positive role of the workers' unionisation rate and a positive but differentiated weight of workers' union representations and industrial conflicts. With regard to firm performance, the authors' estimates suggest that signing a CCA is associated with an average increase of 3% in total factor productivity (TFP) and 7.8% in labour productivity. By investigating the contents of the complementarity agreements, the authors show that bargaining a wider range of topics implies advantages that are not homogenous, benefitting more efficient firms. Moreover, the authors find a specific positive and significant role for three main interacting issues: economic incentives, organisation and employment.

The cross-sectional structure of the data on bargaining practices prevents detecting causal relationships due to either potential common driver(s) of both the target variables (firm performance) and bargaining practices (simultaneity bias) and unobservable time-invariant firm-level characteristics (heterogeneity bias).

According to the authors' results, policymakers should operate along four fiscal channels to spur the efficiency of firms, via CCA. First, tax incentives stimulate higher firm capitalisation, as this seems to be a CCA-favouring factor. Second, deduction in taxable income for union members, which should led to higher membership rates, hence raising the likelihood of obtaining a CCA. Third, incentives aimed at directly promoting the greater diffusion of CCAs as a source of improved performance. Fourth, fiscal tools aimed at favouring the negotiation of either specific contents or “bundles” of contents, which the authors' estimates show as an additional performance-enhancing tool of CCA practices.

The conceptualisation of the contents of CCA as organisational investments and the whole probability function of signing a CCA are quite innovative. Moreover, the econometric strategy takes account of several potential sources of bias when estimating the relevant coefficients at each stage, which is currently not fully considered in the literature. Finally, this is the first study to shed light on both the diverse outcomes associated with different negotiated topics (in terms of quantity and quality) and the distinction between short and medium-long term effects.

This chapter focuses on the IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases in the airline industry considering the case of Air France – KLM (AF-KLM). This airline timely adopted IFRS 15 and early adopted IFRS 16 for the year 2018 and restated its 2017 financial statements using the full retrospective method so that the 2018 financial statements of the airline provide comparative financial information during the transition phase from IAS 18 to IFRS 15 as well as from IAS 17 to IFRS 16. In the first part of the chapter, liquidity, solvency, and profitability ratios along with cash flow ratios were used to analyze the cumulative effect of IFRS 15 and IFRS 16 using 2017 and restated 2017 financial statements. In this context, results indicate that the liquidity ratios decreased, and the solvency ratios increased in general. In addition, the cumulative effect of IFRS 15 and IFRS 16 created an upward change in general on profitability ratios based on the several performance parameters that should be considered during the transition from IAS 18 to IFRS 15 and from IAS 17 to IFRS 16. Overall, IFRS 15 has minor effect and IFRS 16 has major effect on the financial statements of AF-KLM. In the second part of the chapter, the compliance level of the mandatory disclosures requirements of the airline was examined from the lessee standpoint and the research pointed out that the airline fully complied with these disclosures at its first adoption of IFRS 16 and provided some voluntary disclosures as well.

In 2021, nonfungible token (NFT) has emerged and grown as a new digital asset and became a carrier for cryptocurrency holders in China. NFT opens the door of the digital world for creators’ rights and the realization of economic interests. However, potential problems such as money laundering, terrorist financing and tax avoidance risks have increased in China due to the lack of regulations. As tax control is an important tool used by the government to adjust the economy and market, this study aims to investigate the future market capitalization of NFT and provide value orientations to control the NFT market in China with a tax control approach based on the positive experience of other countries.

In this study, least squares and expert estimation are applied to predict the future market capitalization based on the global market, which can provide an understanding of the current NFT market and the significance of its tax control. In addition, the tax control and interpretation of Chinese taxation institutions and structures are also explored.

Results include the probable tax structure or policy that national institutions can carry out over different transactions. Conclusions show that introducing tax control to regulate and monitor the rise of state revenue and decline of illegal financing activities. Establishing tax control in the Chinese NFT market can provide a centralized guarantee to ensure the safety and legality of transactions and enable further progress.

This study puts forward new ideas on the future development of nonprofitable tokens based on blockchain technology from the perspective of taxation in China.

This paper reports a survey undertaken of libraries with operational machine readable catalogues, to examine treatment of existing manual catalogues and their retrospective conversion. Of the 98 libraries contacted 72 replied (74%), 58% returning usable replies. Of these, 49 (86%) had completed, were in the process of, or were planning retrospective conversion; 53% with the use of a bibliographic data‐base.

This paper aims to show the impact of service failure and to shed light on the vengeance of consumer in the health-care service.

A qualitative research through a retrospective study based on individual interviews was conducted. As this study is a sensitive topic, projective techniques were used to complement individual interviews, especially with care consumers who are reluctant subjects who prefer methods which preserve confidentiality. Practically, drawing interpretations method was used. The use of these drawings is to encourage reluctant interviewee to discuss on the study’s sensitive theme.

Empirical findings allowed first to approach care service failure in Tunisia that is an emerging post-revolutionary country-owned MENA. In this context, a comparison between the public and private sectors was proposed. Moreover, the results helped to understand service failure’s consequences related to patient’s reaction.

The Ministry of Health in collaboration with managers of public and private medical institutions will have to work on capitalization of knowledge, especially those learned from unsuccessful experiences.

Medical service failure can have multiple sources. The care consumer’s reaction to these failures can sometimes be extreme in form of revenge.

New lease accounting rules are proposed that will fundamentally change the way leases are accounted for and reported in financial statements. This paper seeks to provide information on the proposed new rules and to illustrate their impact on financial statements and financial ratios using a single restaurant company.

The case of a single restaurant company, CEC International, is used to illustrate the potential impact of the new rules. Additional examples are used to illustrate the impact on financial policies. Financial statements were adjusted and various financial ratios such as interest coverage, leverage and profitability ratios were computed before and after capitalization.

The results show that financial statements presented will change dramatically when lease assets and liabilities are added to the balance‐sheet. The expense recognition pattern will change significantly and negatively impact performance measures such as interest coverage and capital ratios but improve cash flow measures such as EBIT and EBITDA.

Limitations of this study include the assumptions used to capitalize leases such as interest rate, life of leases, no new leases, and exclusion of contingent rentals.

All restaurant companies and managers must assess the costs and benefits of complying with the proposed new rules and start analyzing and evaluating their impact on existing debt agreements, executive compensation plans, and the lease versus buy decision.

This paper serves to inform restaurant managers about the potential implications of the new rules, so managers can prepare, plan and formulate strategies to mitigate their impact.