Accounting
Mega Silvia; Fei Guo
Abstract
There is a greenwashing risk in voluntary carbon disclosure and there are no adequate regulations for stakeholder protection. So, there is a risk of providing information that can mislead stakeholders in making decisions. This research will analyze the determinants of carbon emission disclosure by considering ...
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There is a greenwashing risk in voluntary carbon disclosure and there are no adequate regulations for stakeholder protection. So, there is a risk of providing information that can mislead stakeholders in making decisions. This research will analyze the determinants of carbon emission disclosure by considering the risk of greenwashing in Indonesian companies. This study also uses the ratification period of Presidential Regulation No.98 to analyze its contribution to the relationship between variables. It is necessary to study the role and ability of regulators to intervene in Indonesian companies. This study uses a random effect model to examine the influence between variables. The total data sample for this study is 876 (firm-years). This study also uses the Difference in Difference (DID) method to address the risk of endogeneity, and to evaluate the effect between research variables by adding the ratification period to Presidential Regulation No.98. Empirical results show that corporate governance has a positive effect on carbon emissions disclosure. Changes in carbon emissions has a positive effect on carbon emissions disclosure. The results show the period of ratification of Presidential Regulation No.98 can strengthen the relationship between corporate governance and carbon emissions disclosure, and can strengthen the relationship between changes in carbon emissions and carbon emissions disclosure when companies fail to mitigate carbon emissions.
Accounting
Javad Forouzandeh; Arezoo Aghaei Chadegani
Abstract
Conflict of interests between shareholders and managers and other problems have led to the creation of corporate governance mechanisms. But, firms’ performances and the effect of corporate governance mechanisms on firm performance are still of interest to researchers. The objective of this study ...
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Conflict of interests between shareholders and managers and other problems have led to the creation of corporate governance mechanisms. But, firms’ performances and the effect of corporate governance mechanisms on firm performance are still of interest to researchers. The objective of this study is to investigate the effect of internal audit formation history and audit committee formation history on the company's performance and also to investigate the moderating effect of firm age on these relationships. The population in this research includes all the companies listed on the Tehran Stock Exchange during 2018 to 2022, and the sample includes 120 companies. Research data were analyzed through multivariate regression model and by Stata software. The results show that the internal audit formation history has a positive and significant effect on the company's performance and also the audit committee formation history has a positive and significant effect on company’s performance. The results also show that firm age is a positive and significant effect on company’s performance. Moreover, the results show that firm age has no significant effect on the relationship between the internal audit formation history and the company's performance, but firm age has a positive effect on the relationship between the audit committee formation history and the company's performance.
Accounting
Azzouz Elhamma
Abstract
Certainly, the use of the achievement of budgetary objectives as a criterion for evaluating individual performance of managers (budgetary evaluation) is considered a controversial subject. It has been the subject of some research studies to understand its diversity and its impact on firm's performance. ...
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Certainly, the use of the achievement of budgetary objectives as a criterion for evaluating individual performance of managers (budgetary evaluation) is considered a controversial subject. It has been the subject of some research studies to understand its diversity and its impact on firm's performance. In this context, the aim of this paper is twofold. First, it tests the impact of organizational decentralization on budgetary evaluation practices. Second, it investigates the contribution of budgetary evaluation in firms' global performance improvement according to organizational decentralization. Data were collected from 62 Moroccan firms, operating in different industries, via a questionnaire survey. Based on descriptive statistics and some statistical tests (linear regressions), the study results show that organizational decentralization has a positive significant impact on budgetary evaluation, implying that “strict” budgetary evaluation especially based on the achievement of budgetary targets in individual performance evaluation is adopted more by decentralized firms. In addition, the firms’ global performance is significantly and positively impacted by the budgetary evaluation in decentralized companies. This relationship is not significant in centralized firms. Among the implications of this study, we can highlight that its results are very useful for companies’ managers. The use of a “strict” budgetary evaluation is more suitable for decentralized firms. While centralized companies are indifferent between adopting “strict” and “flexible” budgetary valuation.
Management
Adi Gunanto
Abstract
This research aims to identify the most accurate model for predicting bankruptcy in the banking industry in Indonesia. The three models used in this study are the Altman X-Score, Springate S-Score, and Zmijewski Z-Score models. The population used consists of all banks listed on the Indonesia Stock Exchange ...
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This research aims to identify the most accurate model for predicting bankruptcy in the banking industry in Indonesia. The three models used in this study are the Altman X-Score, Springate S-Score, and Zmijewski Z-Score models. The population used consists of all banks listed on the Indonesia Stock Exchange (IDX). The data used are secondary data in the form of financial reports from 2012 to 2022. The methodology employed includes hypothesis testing using tests for normality, homogeneity, and one-way ANOVA. The research findings indicate that the Z-Score model is the most suitable and accurate model for predicting bankruptcy, with an accuracy rate of 85.53%. The S-Score model achieved an accuracy rate of 14.47%, while the X-Score model did not provide significant accuracy. The implications of the findings are that if the Z-Score model can be used to evaluate the financial health of banks and provide concrete preventive actions before bankruptcy occurs.
Accounting
Azzouz Elhamma; Rajae El-Moumane
Abstract
For several years, and especially during the health crisis caused by the Covid-19 pandemic, digitalization has become one of the major challenges for all companies. In this regard, several research works have been carried out to understand the possible effects of digitalization on some areas of management, ...
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For several years, and especially during the health crisis caused by the Covid-19 pandemic, digitalization has become one of the major challenges for all companies. In this regard, several research works have been carried out to understand the possible effects of digitalization on some areas of management, such as finance (Vasarhelyi et al. 2015, Pan and Seow 2016, etc.), work organization and jobs (Dorn, 2017, etc.), Human resources (Audrin et Davoine, 2017), etc. Unfortunately, this type of work is still absent in the field of management control (Quatrone 2016; Möller et al. 2020). In this context, this article, based on a survey carried out among forty-two Moroccan companies, aims to answer two main questions. First, how can we judge the degree of management control digitalization in the studied companies? Second, does the firm size impact this digitalization? The results obtained show that the management control digitalization is considered to be "moderate" in studied companies. It has also been shown that firm size does not have a statistically significant impact on this digitalization.
Accounting
Esmail Tavakolnia
Abstract
Although human rights have widely been addressed in scientific communities, animal rights and relevant challenges have mainly been neglected. Despite all unfortunate accidents that happen to animals, their unfavorable status has rarely been discussed in the literature on sustainable development or sustainability ...
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Although human rights have widely been addressed in scientific communities, animal rights and relevant challenges have mainly been neglected. Despite all unfortunate accidents that happen to animals, their unfavorable status has rarely been discussed in the literature on sustainable development or sustainability accounting. Nevertheless, the economic analysis of nature inhabitants and animals is an approach that has gained in popularity in accounting, finance, and economics over the recent years. This study promotes the notion that not only does the foregoing approach fail to result in environmental monitoring, but it also allows people to have economic reasons to justify destroying nature and harming animals. This study aims to offer a strategy to make animals visible in sustainability accounting by emphasizing the avoidance of materialism and financial valuation of natural inhabitants and phenomena. This study utilizes a comprehensive literature review and critical analysis of relevant sources to develop a scientific argument that contributes to the ongoing discourse in the field of sustainability accounting. This study proposes to separate animals and emphasize their importance in the sustainability model. It also suggests avoiding exaggerations in financial and economic valuation and focusing on the environment, animals, and other elements of nature. The proposed solution is expected to be a critical approach that can underlie further discussions and analyses.
Accounting
Edwin Sitienei
Abstract
This study explores the relationship between corporate governance traits and discretionary accruals among non-financial firms listed in NSE. Our study discovered that the board size has a relatively insignificant negative impact on the discretionary accruals of non-financial firms listed in the NSE using ...
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This study explores the relationship between corporate governance traits and discretionary accruals among non-financial firms listed in NSE. Our study discovered that the board size has a relatively insignificant negative impact on the discretionary accruals of non-financial firms listed in the NSE using a sample of 44 publicly traded non-financial firms based on 2012-2021 data. The findings on board independence indicate a significant positive relationship at 10% significance. The results suggest that board independence doesn't reduce discretionary accruals in non-financial firms listed in NSE Kenya. The CEO duality, on the other hand, revealed a statistically positive insignificant effect on discretionary accruals, contrary to expectations. The research findings also pointed to income-decreasing accruals earnings management as depicted by a mean of -.083 discretionary accruals in the descriptive statistics. On the effects of board meetings on discretionary accruals, the study found an insignificant negative relationship. The findings of this study may be useful for regulators to re-evaluate their laws and mandates regarding firms and their corporate governance structure, as well as for legislators who have the power to nominate board members to select competent and knowledgeable personnel.
Accounting
Md Maniruzzaman
Abstract
This paper plans to examine the effects of board size and financial leverage on the firm value measured as ROE and Tobin’s Q of DSE-listed manufacturing companies in Bangladesh ranging a period from 2010 to 2022. This research developed ordinary least square (OLS) and fixed effects model (FEM) ...
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This paper plans to examine the effects of board size and financial leverage on the firm value measured as ROE and Tobin’s Q of DSE-listed manufacturing companies in Bangladesh ranging a period from 2010 to 2022. This research developed ordinary least square (OLS) and fixed effects model (FEM) to identify the hypothesized relationships. The paper finds that board size does not matter for firm value but the affinity between financial leverage and firm value is positive and statistically significant. Firm size and firm age are found with a perplexing role in enhancing the value of firms because they show negative affinity when the firm value is measured as ROE but the same associations become positive when the firm value is measured as Tobin’s Q. This paper adds to the emerging body of literature on board size-performance and leverage-performance relationship in the Bangladeshi context using a reasonably wider and newer data set.
Accounting
Akbar Mohammadi; Sahar Babaei
Abstract
In the new generation of entrepreneurial and community-based universities, their role in solving social issues and socializing has become much more essential. If universities and scientific institutions want to take action in this direction more than before, it is necessary to gain an accurate understanding ...
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In the new generation of entrepreneurial and community-based universities, their role in solving social issues and socializing has become much more essential. If universities and scientific institutions want to take action in this direction more than before, it is necessary to gain an accurate understanding of the insights and dimensions of social responsibility in research and innovation. In this study, we seek the main concepts in the field of Responsible Research and Innovation (RRI). We have opened the black box of it through systematic literature review(SLR) and Scientometrics Analysis(SA). This study shows that the Responsible Research and Innovation concept has been evolving in recent years with the development of scientific concepts such as social innovation, corporate social responsibility, and university social responsibility. In this study, the selected articles identified by the SLR method from different textual dimensions and the emergence of new concepts are analyzed. In this study, 33 concepts in 8 different themes in the black box of RRI were identified based on the SLR method. Also, based on the Scientometric analysis and word occurrences analysis, the 10 most used words were identified. Finally, through a collaborative review, 5 key concepts for this area have been identified. These concepts are public engagement, sustainability, ethics, governance, and RRI. Breaking the black box of this concept in this article can shed some light on the literature in this field and reduce its complexity.
Accounting
Mojtaba Ghanbarzadeh
Abstract
The term business model (BM) is one of the topics that has recently been addressed in the area of accounting literature and seeks to explore how to improve the information content of financial statements. The present study is a qualitative research, in the first step in order to collect qualitative ...
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The term business model (BM) is one of the topics that has recently been addressed in the area of accounting literature and seeks to explore how to improve the information content of financial statements. The present study is a qualitative research, in the first step in order to collect qualitative data, a framework for semi-structured queries with experts was developed after examining the scope of financial reporting literature and business model. Subsequently, 23 well-known academic and executive experts in the field of financial reporting and business were selected through purposeful sampling (snowball). The transcribed interviews were coded in the second phase using inductive thematic analysis. In inductive theme analysis, patterns emerge during the analysis by placing open source or sub-themes together in one main theme. In summary, in the current study out of a total of 350 open source codes and 24 sub-themes, 6 main themes were identified as transparency and narrative, social accountability, users, key drivers, justice and fairness in reporting and presentation and disclosure. All of these are as components of financial reporting based on the concept of business model. Financial reporting and information disclosure are important management tools for effectively transferring information to stakeholders. Reliable and timely financial reporting enables individuals to accurately assess their future prospects. Therefore, by re-engineering the financial statements, six key components of financial reporting, inspired by the business model approach, can be a major step in re-engineering financial statements to improve the information content of financial statements.
Accounting
Edwin Sitienei
Abstract
This study examines the relationship between Audit Committee Attributes and Changes in Financial Reporting Quality Among Manufacturing Firms in Kenya. Using a sample of publicly listed firms based on 2010-2018 data, our study finds that the expertise of the Audit Committee has an insignificant positive ...
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This study examines the relationship between Audit Committee Attributes and Changes in Financial Reporting Quality Among Manufacturing Firms in Kenya. Using a sample of publicly listed firms based on 2010-2018 data, our study finds that the expertise of the Audit Committee has an insignificant positive impact on the financial reporting quality of financial reports, measured by accrual quality. Audit committee size and financial reporting quality show mixed findings for two measures of financial reporting quality. The results show a positive, statistically significant effect between the size of the audit committee and discretionary accruals. On the contrary, the size of the audit committee shows a statistically positive insignificant relationship with accruals quality. Audit committee independence has a statistically significant effect on both accruals' quality and discretionary accruals as measures of financial reporting quality. Finally, audit committee meetings on the financial reporting quality show a negative nonsignificant relationship between audit committee meetings on both accruals' quality and discretionary accruals. The results of this research may be of interest for policymakers who have the authority over the appointment of audit committee members to choose independent and expert individuals, for regulators to reconsider their rules and mandate concerning corporations and their corporate governance structure.
Accounting
Niyi Solomon Awotomilusi
Abstract
This study empirically examined time pressure influence on audit quality of audit firms in Abuja, Nigeria. Specifically, the study examined the effect of unreasonable deadlines for reporting on audit quality; effect of intense competition among audit partners on audit quality and the effect of work stress ...
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This study empirically examined time pressure influence on audit quality of audit firms in Abuja, Nigeria. Specifically, the study examined the effect of unreasonable deadlines for reporting on audit quality; effect of intense competition among audit partners on audit quality and the effect of work stress on the audit quality. Primary data were gathered through the questionnaire administered on principal partners of selected audit firms in Abuja, Nigeria. The data were analysed using descriptive and inferential statistics. The result of the study shows that unreasonable deadlines and intense competition among audit partners have significant effects on the quality of audit reporting. In other vein, work stress of the auditors was found to have no significant effect on audit quality in Nigeria. The study recommends that unreasonable deadlines should not be set for auditors, auditors should be encouraged to involve in moderate competition and work stress should not be allowed to influence their audit reports.
Accounting
Hamidreza Hajeb; Mohammad Banafi
Abstract
The purpose of this study is to design a model to predict the efficiency of inventory management to help creditors and actual and potential investors and other stakeholders to avoid major losses in the capital market. For this reason, 137 companies listed on the Tehran Stock Exchange during the 10-years ...
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The purpose of this study is to design a model to predict the efficiency of inventory management to help creditors and actual and potential investors and other stakeholders to avoid major losses in the capital market. For this reason, 137 companies listed on the Tehran Stock Exchange during the 10-years period 2012-2021 were examined. In this study, the predicting variables of institutional ownership, managerial ownership, corporate ownership, ownership concentration, board size, percentage of non-executive board members, and duality of CEO (Chief Executive Officer) role have been used. The efficiency of inventory management was predicted using a three-layer perceptron artificial neural network with the Backpropagation of Error algorithm. Finally, a network with the mean squared error of 0.360, 0.428, 0.261 and 0.353, respectively for training data, validation, test and total data and a coefficient of determination of more than 72%, as the best network Selected.
Accounting
Niyi Solomon Awotomilusi; Ogungbade Oluyinka Isaiah; Igbekoyi Olusola Esther; Adesuyi Temitayo Yomi
Abstract
Cost structure has considerably been a topical issue in the Manufacturing sector as it affects financial performance of the manufacturing companies and has not received reasonable attention in the accounting literature. The various components of cost structure were carefully assessed as independent variables ...
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Cost structure has considerably been a topical issue in the Manufacturing sector as it affects financial performance of the manufacturing companies and has not received reasonable attention in the accounting literature. The various components of cost structure were carefully assessed as independent variables and how they affected financial performance of the selected manufacturing companies. Return on Assets (ROA) was used to proxy financial performance of the companies. This paper aims at assessing the impact of cost structure on financial performance of quoted manufacturing companies in Nigeria. The study selects 7 industrial goods manufacturing companies listed by the Nigerian Exchange Group and the analysis was done using the financial statements for the period of 2011-2020. Ex-post facto research design and descriptive analysis through the use of regression and correlation analysis were used. The findings of the study confirm that there is a significant effect of cost structure on financial performance of selected manufacturing companies quoted by the Nigerian Exchange Group. The study recommended that cost structure should be well analysed into those components and the cost of each of the components should be investigated in order to manage and control the impact on the profitability of manufacturing companies.
Accounting
Seyed Hossein Sajadi; Mohammad Hossein Safarzadeh Bandari; Hadise Azizzadeh Herouzi
Abstract
Professional skepticism is an integral part of successful auditing. The trait of professional skepticism has been identified in psychological research as an enduring personality trait. This study aimed to investigate the prediction of professional skepticism components based on the Big Five personality ...
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Professional skepticism is an integral part of successful auditing. The trait of professional skepticism has been identified in psychological research as an enduring personality trait. This study aimed to investigate the prediction of professional skepticism components based on the Big Five personality traits of auditing partners of the Iranian Association of Certified Public Accountants (IACPA). To that end, the participants consisted of 231 male auditing partners. Our research results suggest that personality traits, including extroversion, agreeableness, conscientiousness, and openness to experience, positively predict the professional skepticism components, including a search for knowledge, self-esteem, interpersonal understanding, autonomy, and a questioning mind. Neuroticism negatively predicts the professional skepticism components mentioned. Also, extroversion, agreeableness, conscientiousness, and openness to experience negatively predict suspension of judgment. Neuroticism positively predicts the suspension of judgment. These findings can aid audit firms in the recruitment procedure of auditors and assist accounting and auditing educators in guiding students in their career tracks.
Accounting
Vincentia Audri Senduk; Dyna Rachmawati
Abstract
CV. Ladang Berkat Abadi is a company in Surabaya that has a brand called Flooring Parquete. Flooring Parquete is engaged in wood floor retail. As one of the businesses engaged in services, of course, it requires special attention to the quality of service provided to its customers. This study aims to ...
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CV. Ladang Berkat Abadi is a company in Surabaya that has a brand called Flooring Parquete. Flooring Parquete is engaged in wood floor retail. As one of the businesses engaged in services, of course, it requires special attention to the quality of service provided to its customers. This study aims to analyze the control of indicators / dimensions of service quality owned by Flooring Parquete in providing service quality. The five indicators are the dimension of physical evidence, the dimension of reliability, the dimension of responsiveness, the dimension of assurance, and the dimension of empathy. This study uses an intrinsic case study approach. There are 2 data sources used, namely primary data in the form of interview results and secondary data in the form of e-guarantee data and material needs miscalculation data. The data analysis technique used is the PDCA method. The results showed that Flooring Parquete has met 3 of the 5 dimensions of service quality. The dimensions that have been fulfilled are the dimension of physical evidence, the dimension of guarantee, and the dimension of empathy. The unmet dimensions are the reliability dimension and the responsiveness dimension. In the dimension of reliability, Flooring Parquete has problems with the ability of employees to provide accurate calculations of material needs. Meanwhile, in the dimension of responsiveness, the problem that occurs is the slow response from employees when customers consult. This can result in a decrease in the level of credibility of Flooring Parquete towards its customers.
Accounting
Adebayo Olagunju; Oyewole Oladunni Ajiboye
Abstract
This study examined how environmental accounting disclosure influences the market value of listed non financial firms in Nigeria between 2012 and 2020. The research design adopted is the longitudinal design. A total population of one hundred and twelve (112) listed non-financial firms was identified. ...
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This study examined how environmental accounting disclosure influences the market value of listed non financial firms in Nigeria between 2012 and 2020. The research design adopted is the longitudinal design. A total population of one hundred and twelve (112) listed non-financial firms was identified. A purposive sampling was used to generate a sample of seventy-two (72) listed non-financial firms sourced from firms’ annual reports. The dependent variable is the market value measured using earnings per share (EPS). The independent variable is environmental accounting measured by the index of environmental disclosure constructed using a content analysis; eight themes of the Global Reporting Initiatives (GRI). The study employed panel feasible generalized least square regression technique for data analyses. The outcomes revealed that environmental disclosure influence earning per share as well as share price positively and significantly. Hence, this study found robust proof which suggests that environmental disclosure significantly influence market value of listed non-financial firms in Nigeria. The implication is that non-financial firms in Nigeria are yet to show much concern about the physical environment in which they operate; in terms of adherence to the environmental laws and standards, process and product related issues including those related to recycling, packaging, waste, pollution emissions and effluent discharges as well as provision of sustainability and other environmental related information. It recommends that corporate firms should prioritize the inclusion of environmental information in their annual reports as such has potential to bring about higher market value.
Accounting
Mojtaba Ghanbarzadeh
Abstract
Business model is one of the available structures of organizational management for developing competitive advantage. The purpose of this study is an analytical scrutiny with fuzzy approach on the Chartered Global Management Accountant (CGMA)' business model ontology. To study the cause-and-effect relationships ...
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Business model is one of the available structures of organizational management for developing competitive advantage. The purpose of this study is an analytical scrutiny with fuzzy approach on the Chartered Global Management Accountant (CGMA)' business model ontology. To study the cause-and-effect relationships and prioritize the dimensions and components of the proposed framework, fuzzy DNAP method (combination of DEMATEL and Analytic Network Process (ANP) in a fuzzy environment) has used. A pairwise questionnaire of dimensions and components dispatch among 13 experts aware of management accounting and business models issues. The experts were selected using the judgmental and purposeful sampling method. The results show that the dimensions of value delivery, value capture, value creation and value definition ranked first to fourth, respectively. The value definition dimension also has a greater impact than other dimensions and the value delivery dimension has a greater impact intensity. In the general evaluation, it was found that the component “Explaining how to use technology in presenting the created values” and the component of “Determining the value propositions” are of the highest and lowest level, respectively. According to the research findings, Management accountants, as consultants and business partners, should be on the ontology of the business model of the Chartered Global Management Accountant (CGMA) in order to provide better guidance to management, emphasis and pay more attention to priority dimensions and components.
Accounting
Fakhreddin Fakhrhosseini; Meysam Kaviani
Abstract
Cash is one of the most important and critical resources in each profit entity, and exploring its relevance to stock returns and the extent to which it is influenced by the firm-level uncertainty is one of the most important issues in corporate decisions. The present study investigated the relationship ...
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Cash is one of the most important and critical resources in each profit entity, and exploring its relevance to stock returns and the extent to which it is influenced by the firm-level uncertainty is one of the most important issues in corporate decisions. The present study investigated the relationship between cash holdings, financial leverage, and excess stock returns considering the role of uncertainty level. This study uses all publicly firms on Iranian stock exchange. Data base on records of financial statements and market data of all Iranian firms that are listed on Iran Stock Exchange, and that are subject to the regulations by the Capital Market Authority in Iran. In addition, we use data from Iranian stock exchange for the period 2004–2018 to construct variables based on the information contained in financial statements. The results indicated that financial leverage and changes in cash holdings affect excess stock returns, and cash holdings are affected by the firm-level uncertainty. This paper fulfils an identified the role of Firm-level uncertainty in cash management, capital structure, and investment decisions.
Accounting
Isah Danladi Yahaya; Jamilu Maipan-uku Yahaya
Abstract
Developing qualitative human capacity of accounting remained a challenge to our modern tertiary institutions, this is primarily due to a lack of adequate practical support staff, poor renumeration of the staff, and employment of unqualified lecturers. these challenges can be minimized by paradigm shift ...
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Developing qualitative human capacity of accounting remained a challenge to our modern tertiary institutions, this is primarily due to a lack of adequate practical support staff, poor renumeration of the staff, and employment of unqualified lecturers. these challenges can be minimized by paradigm shift from lecturer centered to student centered pedagogy. The adoption of gamification elements/theories/techniques seems promising. This study systematically reviewed some related articles on the use of gamification elements/ theories/ techniques to curtailed the challenges. PRISMA was used in four databases (Web of Science, EBSCO, Taylors & Francis, and Scopus), coupled with google scholar. 44 related articles were retrieved and after inclusion/exclusion criteria, 18 articles were considered in the study. According to the findings of the study, gamification elements/theories/techniques have a substantial impact on students' motivation to learn, which leads to engagement and, eventually, improved knowledge retention and understanding, with leaderboard, points, and self-determination as the most effective element, technique, and theory.
Accounting
Raihan Sobhan; Muntaqim Chowdhury
Abstract
The main purpose of the research is to determine the factors that influence agency costs in listed non-bank financial institutions of Bangladesh. The following eight factors have been considered in this study: board size, percentage of independent directors, and percentage of female directors under board ...
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The main purpose of the research is to determine the factors that influence agency costs in listed non-bank financial institutions of Bangladesh. The following eight factors have been considered in this study: board size, percentage of independent directors, and percentage of female directors under board characteristics; percentage of managerial ownership, institutional ownership, and foreign ownership under ownership structure; and leverage and firm size under firm characteristics. To measure agency costs, the asset utilization ratio (AUR) and expense ratio (ER) have been used as proxies. The regression results demonstrate that board size, institutional ownership and leverage are all inversely and significantly associated to agency costs, but managerial ownership has a significant and positive relationship. On the other hand, no significant relationship has been found among the percentage of independent directors, female directors and firm size with agency costs. However, the nature of the relationship between the percentage of foreign ownership and agency costs could not be generalized. The findings of this study will assist financial institution executives in Bangladesh in understanding the existing factors that influence agency costs and will help them in reducing agency costs by identifying and addressing the causes.
Accounting
Amos I Ganyam; Terungwa Azende; Luper Iorpev
Abstract
The primary focus of this study was to determine the effect of audit client importance on earnings management of Nigerian quoted consumer goods firms. The descriptive research design approach was adopted. From 2012 to 2019, data were obtained from 13 consumer goods firms quoted on the Nigerian Exchange ...
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The primary focus of this study was to determine the effect of audit client importance on earnings management of Nigerian quoted consumer goods firms. The descriptive research design approach was adopted. From 2012 to 2019, data were obtained from 13 consumer goods firms quoted on the Nigerian Exchange Group. The discretionary accrual approach was used to evaluate earnings management. Descriptive statistics and random effects regression were the main techniques used to analyse the study’s data. The findings indicated that audit client importance (β=-0.1872) has a negative and significant effect on the earnings management of Nigerian quoted consumer goods firms. The study concluded that earnings management practices of Nigerian quoted consumer goods firms are curtailed when the firms are of important clients to their auditors. The recommendation was that management of firms should enhance approaches that will improve their performance in terms of sales to remain important clients to their auditors.
Accounting
Erlin Tirta Winata
Abstract
Inventory plays an important role in almost all organizations, whether in trade, services, or manufacturing. When an organization fails to control its inventories, the impact it will face is an inflated or inadequate inventory, loss of customers, decreased competitiveness of the company, and loss of ...
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Inventory plays an important role in almost all organizations, whether in trade, services, or manufacturing. When an organization fails to control its inventories, the impact it will face is an inflated or inadequate inventory, loss of customers, decreased competitiveness of the company, and loss of revenues. If this continues to happen, it will affect the business continuity (going concern) of an organization. This study aims to improve comprehension related to audit operational in inventory management CV. X in Bali. The paradigm used in this study is qualitative descriptive, with data collected using semi-structured interview methods, observation, and document analysis. The results show that the company has been facing some problems, such as an inadequate consignment system, no stock cards in finished goods, awful semi-finished goods storage, forecasting errors in purchasing imported inventory, lateness in delivering the goods, and natural disasters. The existence of the operational audit aims to evaluate the company’s performance in inventory management with regard to effectiveness, efficiency, and economy, so the company can improve its performance.
Accounting
Shoeyb Rostami; Mehdi Faraji
Abstract
Auditors’ professional and ethical judgment has been criticized in recent years. Literature suggests that professionalism and ethics of auditors is decreasing due to the current audit market and the predominance of commercial goals; In this regard, the main purpose of this study is to investigate ...
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Auditors’ professional and ethical judgment has been criticized in recent years. Literature suggests that professionalism and ethics of auditors is decreasing due to the current audit market and the predominance of commercial goals; In this regard, the main purpose of this study is to investigate the effect of Machiavellianism, anti-socialism and pressures on auditors on their professional and ethical judgment. In order to achieve the mentioned goal, the statistical population of the study is auditing institutes, members of the Iranian Association of Certified Public Accountants and the sample of the study was randomly selected and included 81 auditors of these institutes in 2019 & 2020. The research method is survey and the tool is questionnaire. The validity of the questionnaires was confirmed by the opinions of faculty professors and related academic resources. For reliability of questionnaires, Cronbach's alpha coefficient was used and the results of these coefficients showed appropriate reliability and internal consistency of the questions. The analysis of the research data and the relationships between the variables were also performed with Smart PLS version 3 software. The results indicate that there is no significant relationship between Machiavellianism and anti-socialism with auditors' professional and ethical judgment. In other words, variables of Machiavellianism and anti-socialism do not have a significant effect on auditors' judgment. On the other hand, the results showed that there is a significant relationship between pressures on auditors and their professional and ethical judgment.
Accounting
Saeed Pakdelan; Alireza Azarberahman; Sara Akbari; Jalal Azarberahman
Abstract
Risk disclosure refers to providing information to the user to inform of any opportunities or threats .Theoretically, disclosure mainly aims to reduce the information asymmetry as well as investor uncertainty, thereby indirectly lowering the equity cost. An advantage of risk disclosure is its effectiveness ...
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Risk disclosure refers to providing information to the user to inform of any opportunities or threats .Theoretically, disclosure mainly aims to reduce the information asymmetry as well as investor uncertainty, thereby indirectly lowering the equity cost. An advantage of risk disclosure is its effectiveness in reducing the equity cost. Therefore, risk disclosure can help decrease investor uncertainty, thus diminishing the equity cost. This project mainly investigates the relationship between risk reporting and cost of capital in 174 firms listed on the Tehran Stock Exchange for the period 2012-2018. This is an applied research study in terms of purpose and descriptive-correlational in terms of methodology. In this study, the variable of risk disclosure was collected by analyzing the content of financial statements, explanatory notes, and board of director reports. The cost of capital was calculated in three ways: cost of debt, cost of ordinary shares, and weighted average cost of capital (WACC). Thus, the relationship between risk disclosure and cost of capital was examined in the form of three individual hypotheses. The results demonstrated no significant relationship between risk disclosure and cost of debt; therefore, the first hypothesis is rejected. It was also suggested that there is a statistically significant negative relationship between risk disclosure and cost of common equity; thus, the second hypothesis was confirmed. Finally, risk disclosure appeared to have a statistically significant negative relationship with WACC; therefore, the third hypothesis was confirmed.
