Original Research
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.
Original Research
Economics
Md. Yousuf Ahammed; Shayla Tazminur
Abstract
Investment decisions are influenced by several rational and irrational factors. The most common irrational phenomena are behavioral biases, such as overconfidence or herding bias. This paper intends to examine the impact of overconfidence bias on investment decisions from the perspective of Bangladeshi ...
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Investment decisions are influenced by several rational and irrational factors. The most common irrational phenomena are behavioral biases, such as overconfidence or herding bias. This paper intends to examine the impact of overconfidence bias on investment decisions from the perspective of Bangladeshi retail investors. The current study is based on primary data collected from general investors through a survey of a self-developed questionnaire. For surveying the questionnaire, investors were selected following the convenience sampling technique. Collected data were analyzed using Correlation, OLS Regression, One-way ANOVA, and One sample t-test in SPPSS software. The study found that the investment decision is significantly influenced by the overconfidence bias. They think they can outperform the market and rely on their capability to analyze an investment opportunity. Such behavior could be very harmful to themselves as well as the market stability. The study also found that male investors tend to be more overconfident in their investment decisions than females. The empirical model concludes that there exists significant overconfidence bias among retail investors. This research could be helpful for stakeholders of the capital market to understand the tendency of Bangladeshi investors towards overconfidence bias.
Original Research
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.
Original Research
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.
Original Research
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.
Original Research
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.
Original Research
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.
Original Research
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).
