Accounting
Jonathan Muterera; Julia Ann Brettle; Alireza Khorakian
Abstract
This research examines the relationship between auditors' psychological well-being and the quality of audits they conduct, a subject that has received limited attention in scholarly discourse. Traditional studies in the field have primarily centred on auditors' professional skills, ethical standards, ...
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This research examines the relationship between auditors' psychological well-being and the quality of audits they conduct, a subject that has received limited attention in scholarly discourse. Traditional studies in the field have primarily centred on auditors' professional skills, ethical standards, and the pressures inherent in their roles, often overlooking the potential influence of their mental health on audit outcomes. By conducting an empirical investigation among auditors in North America, this study finds a significant and positive link between the well-being of auditors and the quality of their audit work, thereby underscoring the critical role of psychological health in the auditing profession. The findings of this research underscore the necessity for auditing firms to adopt and enhance mental health and well-being programs as part of their strategic initiatives to improve audit quality. By integrating well-being into the organizational culture and operational practices, firms can not only elevate the quality of audit outputs but also contribute to a healthier, more productive, and ethically sound professional environment. This study broadens the scope of audit quality research by integrating psychological well-being into the array of factors that influence audit outcomes, offering a new perspective on achieving excellence in auditing practices. The implications of this research extend beyond the immediate auditing community, suggesting a revaluation of professional well-being in similar high-stakes, high-pressure fields.
Accounting
Fereshteh Rahimi; Khadijeh Ebrahimi Kahrizsangi; Arezoo Aghaei Chadegani
Abstract
The purpose of this research is to investigate the factors that influence auditors' compliance with professional ethics. This study is a quantitative and post-event and descriptive-correlational research. The statistical population of this research is all certified accountants working in the audit institutions ...
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The purpose of this research is to investigate the factors that influence auditors' compliance with professional ethics. This study is a quantitative and post-event and descriptive-correlational research. The statistical population of this research is all certified accountants working in the audit institutions of Tehran, and based on Cochran's sampling formula, 336 auditors were selected as a sample. However, 243 completed questionnaires were received by the researcher. Cronbach's alpha was used to test the reliability of the questionnaire, and the value was 0.787. In this research, structural equation modelling and PLS software were used to test the research hypotheses. The results indicate that there is no significant relationship between the trait of neuroticism and auditors’ compliance with professional ethics. However, there is a significant relationship between the trait of extraversion and auditors’ compliance with professional ethics. Additionally, the results showed that there are significant relationships between the trait of openness to experience, the trait of agreeableness and the trait of conscientiousness with auditors’ compliance with professional ethics. Based on this result, it can be mentioned that auditors who feel a greater sense of responsibility, utilize appropriate techniques and methods for their job, and have the necessary readiness to review social, political, and religious values and possess a broad mind and enjoy challenges and puzzles. In addition, auditors who are cooperative, empathetic, and eager to help others demonstrate better et hical behaviour compared to self-centred auditors who are suspicious of others and engage in more competition than cooperation.
Accounting
Ahmed Seja; Dickson Pastory; Dionice Lwanga
Abstract
This study aimed to assess the impact of financial knowledge on household wealth accumulation in Dodoma City. The research design employed for this study was cross-sectional, and a sample of 304 household heads participants was selected using simple random sampling. Data collection was conducted through ...
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This study aimed to assess the impact of financial knowledge on household wealth accumulation in Dodoma City. The research design employed for this study was cross-sectional, and a sample of 304 household heads participants was selected using simple random sampling. Data collection was conducted through the use of questionnaires. The quantitative data obtained were analyzed using descriptive statistics and a multiple linear regression model. The findings of the study revealed that financial knowledge in terms of personal level of education, financial trainings and financial management skills were positive and significant related to household wealth accumulation. The study concludes that, financial knowledge was important component in in financial literacy influence the accumulation of wealth among households in Dodoma City Council. Consequently, the study recommends that the local government and relevant organizations should implement comprehensive financial education programs that specifically target the residents of Dodoma City Council. These programs should focus on improving financial attitudes and behaviors, as well as providing knowledge on effective budgeting, saving, investing, and debt management.
Accounting
Mega Silvia; Fei Guo
Abstract
Previous research found that companies that fail to mitigate carbon emissions will make higher carbon disclosures than companies that successfully mitigate carbon emissions, and companies will also make decisions that are relevant to applicable regulations and policies. This research will explore the ...
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Previous research found that companies that fail to mitigate carbon emissions will make higher carbon disclosures than companies that successfully mitigate carbon emissions, and companies will also make decisions that are relevant to applicable regulations and policies. This research will explore the stakeholder perspective in assessing the company. This stakeholder perspective will determine whether more adequate regulations are needed to address the problem of greenwashing and stakeholder protection. This research will also explore whether the transparency of carbon information carried out by companies is directly proportional to the accountability for mitigating carbon emissions and whether current environmental regulations are able to motivate companies to mitigate environmental pollution. The results of the study found carbon emission disclosures have a positive effect on financial performance. Carbon emission disclosure has a positive effect on green innovation. Carbon emission disclosure has a negative effect on the cost of debt. The period of ratification of Presidential Regulation No.98 can strengthen the relationship between carbon emission disclosure and financial performance as measured by return on equity (ROE), but not with financial performance as measured by Tobin's Q. The period of ratification of Presidential Regulation No.98 can strengthen the relationship between carbon emission disclosure and green innovation. The period of ratification of Presidential Regulation No.98 has no effect on the relationship between carbon emission disclosure and the cost of debt.
Accounting
Alireza Azarberahman; Ali Lalbar; Malihe Tohidinia; Zahra Ghorbanpoor
Volume 11, Issue 4 , April 2024
Abstract
Understanding the factors that contribute to decreased financial literacy and increased behavioral biases can suggest solutions for risk management and improving decision-making processes. On the other hand, investors make financial decisions based on their levels of financial literacy and behavioral ...
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Understanding the factors that contribute to decreased financial literacy and increased behavioral biases can suggest solutions for risk management and improving decision-making processes. On the other hand, investors make financial decisions based on their levels of financial literacy and behavioral biases. The main goal of this research is to examine the various levels of financial literacy with investors' behavioral biases, and understanding this relationship can help us recommend the best strategies to encourage investors to make better-informed decisions. The research population includes all investors in the Tehran Stock Exchange. A sample, calculated using Cochran's formula, ultimately collected 390 questionnaires manually and online, and necessary pretests were conducted to confirm the validity and reliability. Descriptive statistics, including the demographic characteristics of respondents and the frequency of responses to each question, were performed in this study. Then, structural equation modeling was used to test hypotheses. The results of hypothesis testing showed that professional financial literacy has an inverse effect on overconfidence behavioral bias. It was also found that professional financial literacy has a significantly positive effect on risk tolerance. Finally, it was determined that there is a significant negative relationship between professional financial literacy and self-documentary and risk aversion biases. On the other hand, it was revealed that investors with low levels of financial literacy have a positive relationship with the mentioned behavioral biases. Based on the research results, it can be claimed that as the level of financial literacy decreases among investors, they will become more involved in behavioral biases.
Accounting
Dickson Pastory; DIONICE LWANGA
Volume 11, Issue 4 , April 2024
Abstract
Cryptocurrencies are increasingly becoming more popular as cheaper, faster and more secure means of transferring money across the globe while offering diversification benefits to investors. This current study explores the effects of national culture on cryptocurrency adoption across 118 countries. We ...
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Cryptocurrencies are increasingly becoming more popular as cheaper, faster and more secure means of transferring money across the globe while offering diversification benefits to investors. This current study explores the effects of national culture on cryptocurrency adoption across 118 countries. We test how each cultural dimension from the Hofstede model affects cryptocurrency adoption. These are power distance, long-term orientation, uncertainty avoidance, individualism and masculinity. We subsequently assess the moderation effects of financial literacy on the linkage between national culture and cryptocurrency adoption. We employ analysis of variance (ANOVA) and stepwise regression estimations to probe into the magnitudes and significance of postulated relationships. Our results firstly indicate significant disparities in cryptocurrency adoption, but only between countries with high and low uncertainty avoidance. The stepwise regression results revealed a strong negative relationship between uncertainty avoidance and cryptocurrency adoption, with other cultural dimensions exhibiting insignificant effects. Moreover, countries with high uncertainty avoidance but whose adults are highly financially literate were seen to be less vulnerable to fears of uncertainties and risks when deciding to adopt cryptocurrencies. Our findings lay a foundation for further theory development and provide practical implications to cryptocurrency entrepreneurs, governments, users and businesses that accept payments in Bitcoin and other cryptocurrencies.
Accounting
Rizki Ainur Ridho; Paradisa Sukma; Baiq Anggun Hilendri Lestari
Volume 11, Issue 4 , April 2024
Abstract
This research aims to observe how the Indonesian capital market reacts, especially in the mining sector, to the export ban resulting from the Russian invasion of Ukraine, particularly on coal exports. This study uses the event study method by collecting closing stock price data 5 days before and 5 days ...
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This research aims to observe how the Indonesian capital market reacts, especially in the mining sector, to the export ban resulting from the Russian invasion of Ukraine, particularly on coal exports. This study uses the event study method by collecting closing stock price data 5 days before and 5 days after the Russian invasion of Ukraine which occurred on February 24, 2022. This research indicates that the Russian invasion of Ukraine had a significant impact on the market, as evidenced by the disparities in average abnormal returns before and after the events, as well as the fluctuations in stock prices and substantial abnormal returns when comparing the days surrounding the events. The theories employed in this study include the Efficient Market Hypothesis and Signal Theory. This study only uses mining company as a sample and abnormal returns and stock prices as variables. This research does not only look at the average difference before and after the Russian invasion of Ukraine. But also compare the difference in stock prices and abnormal returns between each day before and after the event. The results of the research conducted are in line with previous research conducted by Theiri et al., (2022).
Accounting
Jonathan Muterera; Julia Ann Brettle
Abstract
This study examines the underexplored link between auditor well-being and audit quality within the auditing profession, an area of critical importance for maintaining the integrity and effectiveness of audit processes. Despite extensive research on various determinants of audit quality, such as organizational ...
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This study examines the underexplored link between auditor well-being and audit quality within the auditing profession, an area of critical importance for maintaining the integrity and effectiveness of audit processes. Despite extensive research on various determinants of audit quality, such as organizational factors, auditor competency, and technological support, there remains a significant gap in understanding the impact of auditor well-being, particularly as measured by established psychological scales like the Warwick-Edinburgh Mental Well-being Scale (WEMWBS). This research employs a quantitative approach, utilizing a structured survey instrument to collect data from 360 auditors across international accounting firms in three southern African countries. Through confirmatory factor analysis and structural equation modelling, this study provides empirical evidence supporting the positive relationship between auditor well-being and audit quality. The findings highlight the crucial role of auditor well-being in enhancing audit performance, underscoring the need for auditing firms to prioritize supportive work environments that foster auditor well-being. The implications of this research extend to organizational strategies and interventions aimed at improving auditor well-being, thereby contributing to the enhancement of audit quality and the overall integrity of the auditing profession.
Accounting
Farhana Yasmin
Abstract
The purpose of this paper is to investigate and identify the main forces that may affect the stock prices of one of the emerging sectors, the information technology industry of Dhaka Stock Exchange. A total of 6 companies of IT industry have been picked for the study, for a quarterly dataset within a ...
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The purpose of this paper is to investigate and identify the main forces that may affect the stock prices of one of the emerging sectors, the information technology industry of Dhaka Stock Exchange. A total of 6 companies of IT industry have been picked for the study, for a quarterly dataset within a period of 2015 to 2022 for six factors, of which three belong to the fundamental factors named EPS, NAVPS and P/E ratio whereas other three belong to the technical factors termed GDP growth rate, Inflation rate and IRS. The investigation approach has been designed with ordinary least square regression, where multiple regression model analysis is made. The findings show that while fundamental factors have mentionable significance on the stock prices of IT sector, the technical factors are not found with noticeable significance. Thus, this research recommends both the existing and potential investors about the importance of fundamental analysis to take better understanding of this fast-growing industry of Dhaka Stock Exchange which is in its infancy.
Accounting
Jasella Sakwi Yanti; Yossi Diantimala; Nuraini A
Abstract
This paper aims to test the Crowes Pentagon Theory of Fraud in detecting financial statement fraud and provide further explanation of the fraud indicators in the Pentagon Fraud Theory consisting of pressure, opportunity, competence, rationalization, and arrogance. (arrogance) can detect fraud in financial ...
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This paper aims to test the Crowes Pentagon Theory of Fraud in detecting financial statement fraud and provide further explanation of the fraud indicators in the Pentagon Fraud Theory consisting of pressure, opportunity, competence, rationalization, and arrogance. (arrogance) can detect fraud in financial reporting in manufacturing companies listed on the Indonesia Stock Exchange in 2017-2021. The data used in this research was obtained from annual reports and websites of manufacturing companie. The sample selection technique in this study used simple random sampling to obtain 655 company-years. The data analysis techniques used are descriptive statistical and multiple linear regression analyses. The results show that the fraud indicators in the fraud pentagon theory represented by financial stability, leverage, ineffective monitoring, and director turnover, can detect financial statement fraud, while other indicators - auditor changes and a large number of CEO photos - cannot detect financial statement fraud.
Accounting
Mahmood Ali Al Wahaibi; Syed Sadullah Hussainy; Afshan Younas Durrani
Abstract
This study sheds novel light on the factors influencing short-term investments made by businesses. It delves into the impact of previously unexplored variables on working capital requirements at both the firm and macroeconomic levels. These variables include equity issuance activity, corporate yields, ...
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This study sheds novel light on the factors influencing short-term investments made by businesses. It delves into the impact of previously unexplored variables on working capital requirements at both the firm and macroeconomic levels. These variables include equity issuance activity, corporate yields, free cash flow, retained earnings, depreciation, government oil revenue, and trade levels. The study employs a pooled Ordinary Least Squares (OLS) regression model on a panel dataset spanning the years 2000 to 2014. This investigation extends the existing body of knowledge regarding the determinants of corporate short-term investments in the context of a novel emerging market, specifically the Gulf Cooperation Council (GCC) market. The findings reveal that fluctuations in government oil revenue and trade conditions exert a significant influence on the short-term investments of service businesses in the GCC, with a stronger impact compared to their long-term investments. Considering these findings, GCC economic policymakers could consider implementing targeted interventions to bolster the resilience of service-sector firms. This could include facilitating access to financing channels less susceptible to national economic fluctuations, as well as enacting policies and programs that encourage service firms to diversify their revenue streams through increased export activity and lessened dependence on the domestic market.
Accounting
Mohamed Khamis Zaytoun; Mohamed Mahmoud Elhoushy
Abstract
This research aims to analyze the impact of the increasing development of financial technology on the auditing profession. To achieve this goal, it defined financial technology as the use of technological innovation in the financial sector using the online market as a place to provide solutions to various ...
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This research aims to analyze the impact of the increasing development of financial technology on the auditing profession. To achieve this goal, it defined financial technology as the use of technological innovation in the financial sector using the online market as a place to provide solutions to various financial problems experienced by digital customers through the development of strategic models, processes, applications, or innovative products. The auditing profession faces great challenges; the changes brought about by fourth industrial revolution are not limited to technology only, but have extended to include the need to redesign some of the concepts that constitute the basic building blocks of accounting and auditing; like the concept of value. The changing face of the business environment may shift professional services from focusing on assurance services to focusing on non- assurance services. The research concluded that financial technology innovations enhance the use of the real time audit approach and the emergence of audit applications. The research also concluded that there is an update in the professional assurance services currently provided by the auditor. The role of the auditor emerged in assurance management’s assertions regarding the effectiveness of internal control over information technology, management’s disclosures regarding the application of artificial intelligence tools, auditing fair value estimates and accounting estimates prepared using artificial intelligence tools, management’s disclosures about cybersecurity risks, and cyber security risks management. Finally, the research concluded that new professional services have emerged, including auditing smart contracts, Trust assurance service in blockchains system, the function of the central administrator, and the function of arbitration in disputes. However, to achieve the future vision of professional assurance services for the auditor, the profession needs to overcome a number of challenges. First, it is to bridge the gap between the approach and method of real time audit and current auditing standards. Second, high investment to create tools to automate the audit.
Accounting
Sherif Nagy Mohamed; Ahmad Abdelsalam Abu-Musa; Amal Mahmoud El-Ghaish
Abstract
This study provides a proposed digital platform for accounting disclosure of corporate social responsibility (CSR) performance. The purpose of this digital platform is to help companies disclose their sustainability performance in accordance with international standards by providing a platform for activities ...
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This study provides a proposed digital platform for accounting disclosure of corporate social responsibility (CSR) performance. The purpose of this digital platform is to help companies disclose their sustainability performance in accordance with international standards by providing a platform for activities in the field of corporate social responsibility. Digital platforms provide mechanisms for measuring and disclosing corporate social responsibility and sustainability. This study provides new information and new measures of his CSR performance in three main dimensions: economic, social and environmental value creation. This study develops a digital platform to measure and disclose CSR performance in applied research in the Egyptian healthcare industry.The results of this study demonstrate that using digital platforms as measurement and disclosure systems is worthwhile and valuable. The results of the applied study demonstrate the effectiveness of the system in measuring strategic sustainability performance dimensions. This research provides a wealth of information for all users of financial reports and addresses stakeholder needs for more information on the measurement and disclosure of corporate social responsibility performance. This research has practical implications for companies using this system as a measurement tool to measure strategic sustainability performance. This research has implications not only for the concept of strategic sustainable performance of companies, but also for the concept of corporate social responsibility.
Accounting
Thakoor Sharma Geerawo
Abstract
This study explores the variations in discretionary accruals’ specific earnings management practices across different industries and their implications for financial reporting quality. Discretionary accruals are part of earnings management which affect the quality of financial reporting. These ...
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This study explores the variations in discretionary accruals’ specific earnings management practices across different industries and their implications for financial reporting quality. Discretionary accruals are part of earnings management which affect the quality of financial reporting. These can distort financial statements and mislead stakeholders. Understanding how these practices differ among industries provides valuable insights for regulators, investors, and financial analysts. Yet, literature is overly scarce on specific industries which are most affected by discretionary accruals. Delving into information from a robust principles-based economy adopting IFRS, this paper addresses a research gap with a dataset spanning multiple industries over a multi-year period from 2013 to 2022. The Dechow, Kasznik, and Kothari models are employed to assess the extent of discretionary accruals within each industry. Based on winsorized mean and standard deviation, the industries which appeared most in the list of signed and absolute discretionary accruals were Energy and Financials followed closely by the Technology industry. Additionally, applying panel data regressions with multiple fixed effects, the size of a firm, equity ratio, asset turnover, and past profitability were significant in the models which influence discretionary accruals whereas the impact of liquidity was not statistically significant.
Accounting
Mohammed Bukar Kauji; Shehu Hassan Usman; Saidu Adamu
Abstract
The study examines the effect of chief executive officers (CEO) Characteristics on the financial performance of listed fast moving consumer goods firms in Nigeria from 2013 to 2022. The study used a sample size of thirteen (13). The dependent variable was measured by ROA and ROE. The study engaged a ...
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The study examines the effect of chief executive officers (CEO) Characteristics on the financial performance of listed fast moving consumer goods firms in Nigeria from 2013 to 2022. The study used a sample size of thirteen (13). The dependent variable was measured by ROA and ROE. The study engaged a secondary source of data which was obtained from the annual reports of the firms and NEG website. The results from the Driscoll-Kraay robust fixed effect regression analysis proved that CEO financial expertise and tenure have a positive and significant effect on the financial performance of the listed while CEO Political connection has a positive and insignificant effect on financial performance. The study concludes that firms with CEOs who are financial experts outperform firms without expertise in terms of financial performance in listed consumer goods firms in Nigeria. The study recommends among others that the board of the consumer goods firms when hiring CEOs should give significant weight to candidates' financial expertise. The recruitment process should assess the candidates' financial acumen, educational background, and relevant experience.
Accounting
Lawrence Wahua; Ike Romanus Chukwuma; Temitope Reuben Akinsete; Samuel Brobbey
Abstract
Dearth of quantification of the nexus between employee compensation and turnover gave rise to this empirical investigation of the effect of employee salary, employee pension scheme, employee allowance, employee share bonus, and employee savings scheme on turnover of Chevron Group of Companies using audited ...
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Dearth of quantification of the nexus between employee compensation and turnover gave rise to this empirical investigation of the effect of employee salary, employee pension scheme, employee allowance, employee share bonus, and employee savings scheme on turnover of Chevron Group of Companies using audited secondary data from annual reports for 2012 to 2021. Anchored on economic theory, the five hypotheses developed for the study were tested simultaneously based on univariate general linear model with the aid of statistical package for social sciences. The cardinal findings of this study (which carried out descriptive and inferential statistical analyses) show that the effect of employee compensation on turnover of Chevron Group with the studied period is mixed in line with reviewed literature. Salary of employees has non-significant negative effect on turnover; employee pension scheme has significant positive effect on turnover while employee allowances, share bonus, and savings scheme have significant negative effect on turnover. The findings of the study have salient significance in terms of theory, practice, and policy. Far reaching recommendations are put forward.
Accounting
Hamidreza Hajeb; Safdar Alipour; Ali Ghayouri Moghadam
Abstract
The controversy surrounding the scientific or artistic nature of accounting has been the subject of various scientific circles for years, and the source of such debates is the fundamental difference between accounting and natural sciences such as physics, in such a way that some experts consider physics ...
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The controversy surrounding the scientific or artistic nature of accounting has been the subject of various scientific circles for years, and the source of such debates is the fundamental difference between accounting and natural sciences such as physics, in such a way that some experts consider physics to be the ultimate goal of science. They have tried to bring these two categories together, and on the other hand, some others have completely invalidated such an attempt with some baseless criticism. In this article, we have tried to outline the current and ideal accounting situation while expressing different views on the nature of science and describe the tools to fill the gap between the current and ideal situation. Finally, while respecting the efforts made to draw the path of the scientific movement of the profession, we considered the comparison of physics and accounting to be unworthy, and at the same time, we have given a worthy answer to some of the unfair criticisms. In the same way, we believe that the change of the accounting paradigm towards the use of fair values promises a scientific revolution in accounting, which will smooth the path of the faster movement of the profession towards the scientific position it deserves, but at the same time, we have also mentioned the challenges facing this mutation.
Accounting
Ibrahim Mallam Fali; Daniel Orsaa Gbegi; Philip Jehu
Abstract
Past studies have presented inconclusive results on the relationship between profitability and firm value, there is a need to take into consideration a moderating variable to strengthen the relationship. This study therefore, introduces dividend policy as moderator to examine its effect on the relationship ...
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Past studies have presented inconclusive results on the relationship between profitability and firm value, there is a need to take into consideration a moderating variable to strengthen the relationship. This study therefore, introduces dividend policy as moderator to examine its effect on the relationship between profitability and firm value of listed deposit money banks in Nigeria. The study adopted the Ex Facto-research design and the study used ten years, from 2012 to 2021. The study's population consisted of 15 listed banks on the floor of the Nigeria Exchange Group, and 12 were selected as study samples after filtering time frame. Secondary data were collected from audited financial report and accounts of the sample banks and the Nigeria Exchange Group's website. STATA was used to analyze the data, and the results revealed a negative direct link between profitability as assessed by return on assets and return on equity and firm value as measured by market value added. Furthermore, a higher dividend policy ratio strengthens the relationship between profitability and firm value. We add evidence that the dividend policy acts as a pure moderator in the banking industry. However, based on the findings, it is suggested that the regulatory authorities develop post-dividend payment legislation that can effectively contribute to the firm's dividend policy decision. The findings highlight the importance of profitability and dividend policy in maximizing corporate value in the banking industry.
Accounting
Edwin K Sitienei
Abstract
This study sought to address the effects of earnings quality on the financial performance of Non-financial firms listed at the Nairobi Securities Exchange(NSE). Three attributes of earnings quality; predictive value, feedback value, and earnings accruals quality, were adopted as measures of earnings ...
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This study sought to address the effects of earnings quality on the financial performance of Non-financial firms listed at the Nairobi Securities Exchange(NSE). Three attributes of earnings quality; predictive value, feedback value, and earnings accruals quality, were adopted as measures of earnings quality. The study adopted returns on assets (ROA) to measure financial performance. A 5-year data (2018-2022) for the 44 non-financial firms listed in the Nairobi Securities Exchange were obtained from secondary data sources. The data were analyzed using Stata 17, and the findings showed that accrual quality and feedback value exhibited a significant positive relationship with financial performance. The predictive value of the earnings revealed an insignificant negative relationship with financial performance. The model was significant at a 10% significance level with a coefficient of 0.492. This implies that earnings quality constructs significantly and positively affect the performance of Kenyan public-listed non-financial firms. The findings of this study have important implications for users of financial information in ascertaining the importance of earnings quality on the performance of Kenyan public non-financial firms. This study is also beneficial to standard setters in Kenya that view the earnings quality as an indirect indicator of the quality of financial reporting standards that have been issued.
Accounting
Rezgalla Musbah Abdalla
Abstract
Although the qualitative approach has been recognized as an effective approach to link accounting research with accounting practices and accounting education, the accounting research is still dominated by the quantitative approach. The unpopularity of the qualitative approach in accounting research is ...
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Although the qualitative approach has been recognized as an effective approach to link accounting research with accounting practices and accounting education, the accounting research is still dominated by the quantitative approach. The unpopularity of the qualitative approach in accounting research is attributed to several obstacles related to individuals, management, and the nature of the qualitative approach. Therefore, the primary objective of this study is to investigate the obstacles of the use of the qualitative approach in accounting research that come from accounting faculty members, management of universities, and the nature of qualitative research. In order to achieve the objectives of the study, the analytical descriptive approach was used based on a questionnaire which was distributed to 60 accounting faculty members at different academic ranks at Libyan universities. The data was analyzed by descriptive statistics and One Sample T Test and one sample Wilcoxon Singed Rank Test. The results of the study showed that the three selected obstacles of using the qualitative approach in accounting research are facing accounting faculty members at Libyan universities and they are statistically significant. The main obstacle is the management of Libyan universities, followed by the accounting faculty members, and finally the obstacles related to the nature of the qualitative approach.
Accounting
Mohammad Hadi Sobhanian; Salah Salimian; Azadeh Ashrafi
Abstract
The tax gap can be considered as the criterion and principle of the effectiveness and efficiency of the tax system. Inadequate collection of taxes as well as non-realization of tax revenues is called tax gap, which is one of the factors that aggravate the budget deficit. In this paper, the issue of tax ...
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The tax gap can be considered as the criterion and principle of the effectiveness and efficiency of the tax system. Inadequate collection of taxes as well as non-realization of tax revenues is called tax gap, which is one of the factors that aggravate the budget deficit. In this paper, the issue of tax gap is investigated with two approaches. The first approach is a situation where two groups of investigators who are willing and unwilling to collude with two groups of taxpayers who are willing and unwilling to collude with a uniform distribution are placed in the game. The second approach also shows a situation where the probability of not discovering a taxpayer's violation is shown by a mathematical function and the quality of investigating groups for taxpayers who are uniformly distributed is unknown. The results of the first approach show that with the increase in the number of taxpayers unwilling to collude and the increase in the number of groups willing to collude with taxpayers, the tax gap decreases. Also, with the reduction of the tax rate and the increase in the number of groups unwilling to collude, the tax gap increases. The results of the second approach show that the tax gap increases with the increase in the number of investigators and also the increase in the probability of dishonesty of the taxpayer.
Management
Dyna Rachmawati; Magdalena Jayati Marinda Janggu
Abstract
This study aims to examine the role of business strategy in the relationship between earnings management and MD&A readability. Previous research has shown inconsistency of results in testing the effect of earnings management on MD&A readability. This inconsistency can be caused by the fact that ...
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This study aims to examine the role of business strategy in the relationship between earnings management and MD&A readability. Previous research has shown inconsistency of results in testing the effect of earnings management on MD&A readability. This inconsistency can be caused by the fact that the business strategy variable has not been included as a contextual basis for the implementation of operational activities. Earnings management in this study is measured by real earnings management, because previous studies have used accrual earnings management. The hypotheses are tested with the multiple linear regression. The results show on 189 cross-sectional data on publicly traded consumer goods companies show that: (1) real earnings management reduces MD&A readability in defender and prospector companies; (2) analyzer companies perform real earnings management – discretionary expenses reduce the readability of MD&A; (3) firm size as a control variable in this study has no effect on the readability of MD&A. The results of this study imply that (1) strategy is a contextual factor that affects operational activities and ultimately on the readability of MD&A, (2) earnings management through discretionary expense activities reduces the readability of MD&A, regardless of the business strategy adopted by the company.
Accounting
Matias Andika Yuwono; Dyna Rachmawati
Abstract
Agro is a growing company engaged in the plantation sector. As a growing company, companies need to improve company performance by implementing a risk management process based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management (ERM) to reduce disruption ...
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Agro is a growing company engaged in the plantation sector. As a growing company, companies need to improve company performance by implementing a risk management process based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management (ERM) to reduce disruption to daily operational activities, and companies can allocate resources more effective and efficient so that company goals can be achieved. To implement COSO ERM effectively, companies must conduct a thorough coordination and integration process in their operational activities. This qualitative study aims to analyze the application of COSO ERM in controlling operational risk in the trading division at PT. Agro. The risk management process carries from the risk identification process to the monitoring process. The results of this study indicate that the trading division has significant risks in its primary activities. Hence, it is necessary to carry out a monitoring process and appropriate actions to control these risks not to harm the company.
Accounting
Tanzina Haque
Abstract
The establishment of the nomination and remuneration committee (a key element of corporate governance structures) arises from the imperative to uphold principles of fairness, impartiality and transparency within the organization which serves to strengthen stakeholders’ confidence and enhance overall ...
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The establishment of the nomination and remuneration committee (a key element of corporate governance structures) arises from the imperative to uphold principles of fairness, impartiality and transparency within the organization which serves to strengthen stakeholders’ confidence and enhance overall business performance. The purpose of this paper is to investigate the relationship between a firm’s financial performance and its nomination and remuneration committee (NRC). As shown in the section delineating the research technique, the statistical software STATA was employed to analyze the correlation between the independent and dependent variables in this inquiry. The dataset consisted of total 48 insurance firms listed in the Dhaka Stock Exchange over the time period of 2015 to 2022 resulting in a total of 384 firm-year observations. The results show that there is a statistically significant positive relationship between the financial measures (EPS, ROE) and the independent variable (NRC) except the ROA which is not statistically significant. This investigation seeks to address a gap in the existing literature by examining the company financial performance within the emerging insurance sector of Bangladesh. The study concludes by suggesting that further investigation and research in this area are warranted. Presumably, this means there are more aspects to explore regarding the relationship between financial performance and NRC in the context of the insurance sector in Bangladesh.
Management
Ali Najarian; Roya Hejazinia
Abstract
In the accounting position, there has been a great deal of spotlight on the utilization of blockchain innovation, particularly in developing countries, where apparently remarkable assumptions ought to be acknowledged in the near future. The objective of this study is to recognize the prerequisites that ...
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In the accounting position, there has been a great deal of spotlight on the utilization of blockchain innovation, particularly in developing countries, where apparently remarkable assumptions ought to be acknowledged in the near future. The objective of this study is to recognize the prerequisites that should be met for the effective execution of blockchain innovation in developing nations. Our study was directed with regard to Iran, a developing nation. A qualitative research method (thematic method) was employed for this study, with the statistical population comprising blockchain, information technology, and accounting specialists in Iran. By using purposeful and snowball sampling techniques, we collected a total of 20 samples. We conducted semi-structured interviews to gather data for later analysis. The result of this study revealed that IT infrastructure, institutional, social, strategic, and organizational requirements are all crucial prerequisites for the successful deployment of blockchain technology in the accounting industry in developing countries. The study offers a blockchain implementation roadmap for the accounting industry.
