Search results

1 – 10 of 23
Article
Publication date: 18 March 2024

Manaf Al-Okaily, Helmi Boshnak, Hani Alkayed, Esam Shehadeh and Mohammad Alqam

This study aims to explore the role of eXtensible Business Reporting Language (XBRL) adoption in improving financial statements transparency in the Jordanian context.

Abstract

Purpose

This study aims to explore the role of eXtensible Business Reporting Language (XBRL) adoption in improving financial statements transparency in the Jordanian context.

Design/methodology/approach

The partial least squares structural equation modeling approach was used to analyze the obtained data.

Findings

The empirical outcomes indicated that the adoption of XBRL contributes to improving financial statements transparency in listed Jordanian firms in the Amman Stock Exchange, whereas information technology (IT) infrastructure was found to moderate the relationship between XBRL adoption and improving financial statements transparency and hence the related hypotheses were accepted.

Originality/value

This study encouraged the importance of shifting to the adoption of the XBRL which will contribute to improving transparency of financial data and information in listed Jordanian firms and then support the process of decision-making.

Details

Global Knowledge, Memory and Communication, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9342

Keywords

Article
Publication date: 17 October 2023

Mai Dao and Hongkang Xu

In this paper the authors aim to examine whether shareholder activism is associated with accounting reporting complexity (ARC).

Abstract

Purpose

In this paper the authors aim to examine whether shareholder activism is associated with accounting reporting complexity (ARC).

Design/methodology/approach

The authors employ ordinary least squares (OLS) and a sample of 19,530 firm-year observations (representing 3,377 unique firms) over the 2010–2019 period to test the prediction.

Findings

The authors find that firms with shareholder activism provide more complex accounting reporting. Further, both types of activism (including Concern & Dispute and Control & Discussion) are positively associated with ARC. The authors also find that the association between shareholder activism and ARC is more pronounced when the firms have a higher level of litigation risk and a higher proportion of institutional ownership. Collectively, the findings suggest that firms with shareholder activism may be under more pressure to disclose more accounting items, leading to more complex accounting reporting.

Originality/value

The study may be informative to regulators considering the costs and benefits of shareholder activism in financial reporting.

Details

Journal of Accounting Literature, vol. 46 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 23 November 2023

Anjali Srivastava and Anand

Corporate disclosures are essential because they provide transparent and accurate information about a company's financial health, performance, risks and governance practices. They…

Abstract

Purpose

Corporate disclosures are essential because they provide transparent and accurate information about a company's financial health, performance, risks and governance practices. They enable investors to make informed decisions, promote market efficiency and maintain trust in the financial system. This paper uses bibliometrics to identify the intellectual composition of the literature on corporate disclosure.

Design/methodology/approach

Based on the bibliometric information of 4,551 articles on corporate disclosure research, the authors conducted citation, keyword co-occurrence, bibliographic coupling and publication analyses to elucidate the leading articles, authors, sources, institutions, countries, themes and topics in the field of corporate disclosure from the 1960s to 2021.

Findings

The findings of this review demonstrate that corporate disclosure research is based on four broad themes – the role of disclosure in capital markets, non-financial disclosure, determinants of corporate disclosure and firm risk and intellectual capital disclosure. This review suggests that management should pay attention to the financial and non-financial corporate information that investors, regulators and the government emphasise.

Originality/value

This paper is the first comprehensive bibliometric review on corporate disclosure. It summarises the regulatory shifts, technological changes and industry trends that have influenced corporate disclosure research. Besides identifying broad research themes, the authors performed bibliographic coupling for research on disclosure sources, including annual reports, management forecasts, earnings calls, press releases, the Internet and social media, to reveal the thematic clusters related to these sources.

Details

Managerial Finance, vol. 50 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 14 February 2024

Mohammed Muneerali Thottoli

In the fourth industrial revolution, where business accounting integrates with automation through artificial intelligence (AI) and information communication technology (ICT)…

Abstract

Purpose

In the fourth industrial revolution, where business accounting integrates with automation through artificial intelligence (AI) and information communication technology (ICT), auditors must be able to access and analyze vast data and information to identify potential risks and issues. Using data analytics and AI to study significant amounts of data linked to audits, this study aims to investigate auditing practices by leveraging ICT and AI to enhance the audit process.

Design/methodology/approach

Bibliometric and quantitative research techniques have been used in the study’s mixed-method process. The theoretical underpinnings of AI have been investigated using the bibliometric research method, and the challenge of implementing ICT-enabled auditing practices among auditing professionals has been studied using the quantitative research method. Surveys, interviews and bibliometric analysis have all been used as data-gathering techniques.

Findings

Research in AI and auditing has a broad worldwide scope, involving developed and developing nations. ICT perceived benefits have no direct effect on auditing practices. However, ICT training has a mediating effect on the relationship between ICT perceived benefits and auditing practices. ICT adoption has no moderating effect on the relationship between ICT training and auditing practices.

Research limitations/implications

Findings have significance for lead auditors, policymakers and the Institute of Chartered Accountants of India (ICAI), who are keenly interested in upgrading the auditing practice of accounting professionals in India by incorporating AI and ICT determinants.

Practical implications

This research makes a significant contribution by offering a thorough framework for improving the knowledge management of practising auditors regarding ICT adoption, training and perceived benefits, a crucial component of auditing practices in the digital age. In addition, it provides insightful information about how AI affects accounting practices, which may point the way for further study in this area.

Originality/value

This research has significant implications for auditing firms in India. It can inform ICAI, policymakers and regulators in their attempts to foster the incorporation of AI and ICTs in auditing practice.

Details

Accounting Research Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 2 January 2024

Mengyu Ma

This study aims to investigate whether the cash flow forecasts (CFF) of analysts can disseminate valuable information to the information environments of companies.

Abstract

Purpose

This study aims to investigate whether the cash flow forecasts (CFF) of analysts can disseminate valuable information to the information environments of companies.

Design/methodology/approach

The author uses empirical archival methodology to conduct differences-in-difference analyses.

Findings

It is found that information asymmetry decreases in the treatment group following the initiation of CFF during the postperiod, which is consistent with the hypothesis of this paper.

Originality/value

To the best of the author’s knowledge, this study is the first among the cash flow forecast studies to demonstrate the usefulness of CFF in the mitigation of information asymmetry, a friction that is widespread in capital markets.

Details

International Journal of Accounting & Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 28 November 2023

Laivi Laidroo, Merle Küttim, Kirsti Rumma, Paavo Siimann and Mari Avarmaa

This study explores the causes of delayed mandatory annual report filings of private companies in Estonia.

Abstract

Purpose

This study explores the causes of delayed mandatory annual report filings of private companies in Estonia.

Design/methodology/approach

The authors use an online survey targeting companies that had submitted annual reports for 2017 late (late-filers) or failed to submit these by July 2020 (non-filers). The responses of 492 late-filers and 122 non-filers are analysed with exploratory factor analysis, Mann–Whitney U-Test and logistic regression.

Findings

Annual report filing decisions of both, late-filers and non-filers, are strongly driven by administrative costs attached to the preparation and submission of reports with non-filers perceiving these to be significantly greater. The relevance of other disclosure-related costs and benefits remains similar for both late-filers and non-filers. While proprietary and privacy concerns remain rather unimportant, benefits of timely disclosure, in the form of access to financing and possibilities to continue ordinary business activities, remain important disclosure timing drivers.

Practical implications

Policy interventions should focus on preventive measures that hinder companies' ordinary business activities in case of non-compliance to reporting deadlines. Monetary sanctions can be used to strengthen the desired behaviour alongside broader clarification of the purpose of mandatory reporting and available exemptions.

Originality/value

The authors propose an empirically testable comprehensive one-period model of disclosure timing decisions of private companies differentiating late-filers and non-filers. The authors address the limitations of previous studies through a survey that allows the authors to draw direct inferences about the trade-offs between different decision drivers and the motivations behind managers' disclosure timing decisions.

Details

Baltic Journal of Management, vol. 19 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

Book part
Publication date: 29 January 2024

Thaer Faisal Abdelrahim Qushtom and Sami Sobhi Saleem Waked

The current study aimed to explore the extent of accounting graduates’ abilities (AGAs) in Jordan to use modern information technology systems (MITSs) to make optimal financial…

Abstract

The current study aimed to explore the extent of accounting graduates’ abilities (AGAs) in Jordan to use modern information technology systems (MITSs) to make optimal financial decisions (OFDs). To carry out this study, the descriptive analytical approach was used to collect and analyze data. Accordingly, an electronic questionnaire was designed and distributed to 5,000 students in 30 universities in Jordan. However, only 1,067 questionnaires were valid for analysis, which constituted the sample of study. To test the research hypotheses, the descriptive analysis and multivariate regression test were used. The results indicated that the majority of accounting graduates (AGs) in Jordanian universities (JUs) do not realize the importance role of MITSs to make OFDs. In addition, the biggest challenge face AGs in JUs is the weakness of current accounting curricula in JUs in terms of not including materials related to MITSs and the role of these systems in performing accounting tasks. Finally, the study found that the current abilities of AGs in JUs moderate negatively and significantly the positive relationship between the use of MITSs and making OFDs. Accordingly, the study recommended that JUs work on developing accounting curricula through including modern courses related to the use of MITSs in performing accounting tasks.

Details

Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application
Type: Book
ISBN: 978-1-80455-973-4

Keywords

Article
Publication date: 13 February 2024

Liang-Hung Lin and Yu-Ling Ho

This study aims to examine the effect of exploratory innovation offshoring on the level of hierarchical control and how this effect is moderated by transnational and dynamic…

Abstract

Purpose

This study aims to examine the effect of exploratory innovation offshoring on the level of hierarchical control and how this effect is moderated by transnational and dynamic environments.

Design/methodology/approach

This study draws on a sample of 148 Taiwanese multinational enterprises to examine their governance decisions on foreign investments.

Findings

Findings show that the more innovation offshoring is exploratory, the higher the level of hierarchical control will be used by multinational enterprises (MNEs) and that transnational and dynamic environments have different moderation effects on the positive exploratory innovation offshoring-hierarchical control relationship.

Research limitations/implications

This study has two theoretical implications. First, this study extends the concept of complexity from a transaction attribute level (problem) to an environmental level (transnational environment) and finds that exploratory innovation offshoring and transnational environments interactively impact governance choices. Second, this study distinguishes between two sources of technological uncertainty – uncertainty due to transaction-level attributes (exploratory innovation offshoring) and external environments (dynamic environments) and finds that exploratory innovation offshoring and dynamic environments interactively impact governance choices.

Practical implications

The practical implication of this study lies in the simultaneous consideration of exploratory innovation offshoring and transnational/dynamic environments, which will allow international decision-makers to adjust/select the governance forms most appropriate for speedy responding to and handling environmental changes.

Originality/value

This study employs the theoretical perspectives of transaction cost economics (TCE) and resource-based view (RBV) to analyze and discuss the impact of operational environments – transnational and dynamic environments – on MNEs’ decisions on the governance structure for a given innovation offshoring.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 2 January 2024

Ewald Aschauer and Reiner Quick

This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.

1323

Abstract

Purpose

This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.

Design/methodology/approach

In this qualitative study guided by the theoretical framework of institutional theory, the authors conducted 25 semi-structured interviews in seven European countries, including 16 interviews with audit partners from Big 4 firms, 6 with audit team members, 2 with interviewees from second-tier audit firms and 1 with a member of an oversight body.

Findings

The authors show that the central rationale for audit firms to implement SSCs is economic rather than external legitimacy. The authors find that SSC implementation has substantial effects on audit practices, particularly those related to standardisation, coordination and monitoring activities. The authors also highlight the potential impacts on audit quality.

Originality/value

By exploring the motivation for and effects of SSC implementation amongst audit firms, the authors offer insights into the best practices related to subsequent change processes and audit quality.

Details

Accounting, Auditing & Accountability Journal, vol. 37 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 29 September 2023

Charl de Villiers, Ruth Dimes and Matteo Molinari

The ability of generative artificial intelligence (AI) tools such as ChatGPT to produce convincing, human-like text has major implications for the future of corporate reporting…

1273

Abstract

Purpose

The ability of generative artificial intelligence (AI) tools such as ChatGPT to produce convincing, human-like text has major implications for the future of corporate reporting, including sustainability reporting. As the importance of sustainability reporting continues to grow, this study aims to critically analyse the benefits and pitfalls of automated text generation and processing.

Design/methodology/approach

This study develops a conceptual framework to delineate the field, assess the implications and form the basis for the generation of research questions. This study uses Alvesson and Deetz’s critical framework, considering insight (a review of literature and practice in the field), critique (consideration of the influences on the production and use of non-financial information and the implications for assurers of such information) and transformative redefinition (considering the implications of generative AI for sustainability reporting and proposing a research agenda).

Findings

This study highlights the implications of generative AI for sustainability accounting, reporting, assurance and report usage, including the risk of AI facilitating greenwashing, and the importance of more research on the use of AI for these matters.

Practical implications

The paper highlights to stakeholders the implications of AI for all aspects of sustainability reporting, including accounting, reporting, assurance and usage of reports.

Social implications

The implications of AI need to be understood in society, which this paper facilitates.

Originality/value

This study critically analyses the potential use of AI for sustainability reporting, construct a conceptual framework to delineate the field and develop a research agenda.

Details

Sustainability Accounting, Management and Policy Journal, vol. 15 no. 1
Type: Research Article
ISSN: 2040-8021

Keywords

1 – 10 of 23