Accounting

Efficient Contracting, Earnings Smoothing and Managerial Accounting Discretion
The purpose of this study is to examine whether the contracting incentives (i.e., bonus plans, debt covenants, political costs hypotheses), and income smoothing can explain accounting choices in an emerging country, Egypt. The paper uses the OLS regression model to examine the relationship between earnings management and reporting objectives. A sample of 438 non-financial firms listed on the Eg...


Economic crisis as a driver of management accounting change – Comparative evidence from Germany and Spain
The purpose of this study is to investigate change processes within German and Spanish management accounting which are induced by the recent economic crisis. To illuminate these changes, a particular emphasis is put on budgeting processes and the role of management accountants. A cross-sectional field study that mainly builds on interviews with senior management accounting executives in nine Ge...
Value relevance of IFRS mandatory disclosure requirements
We address recent calls for research regarding the valuation implications of mandatory disclosure requirements (cf. Hassan et al., 2009; Leuz and Wizocki, 2008; Schipper, 2007). We measure compliance with all IFRS mandatory disclosure requirements for a sample of firms. We subsequently explore whether the compliance scores (i.e., the mandatory disclosure levels) are value relevant and whether t...


E-business Internal Audit: The elephant is still in the room!
This study aims to explore the impact of technological change on the internal audit practices and skills requirements for internal auditors in an e-business environment. Generalist internal auditors and specialist IT internal auditors were surveyed online in ten countries, including the USA and the UK which, together, provided the majority of responses. The results suggest a need for advanced I...
Determinants of the adjustment speed of capital structure: evidence from developing economies
The aim of this paper is to examine the role of institutional, macroeconomic, industry, and firm characteristics on the adjustment speed of corporate capital structure within the context of developing countries. We consider a sample of 986 firms drawn from nine developing countries in Africa over a period of 10 years (1999–2008). The study develops dynamic partial adjustment models that link ...


Nature and duration of the accounting differences between Italian and US GAAP: A case study on conservatism
This paper focuses on alternative accounting treatments over time to assess their impact on the level of conservatism in a comparison between Italian local accounting standards and United States generally accepted accounting principles (US GAAP). A case study approach is adopted to investigate the accounting adjustments applied to net income and shareholders’ equity as included in the Form 20...
The implications of ineffective internal control and SOX 404 reporting for financial analysts
The mandatory reporting of firms’ internal control effectiveness continues to be debated by equity market participants, U. S. regulatory agencies and oversight committees. We investigate the implications of material weaknesses in internal control and SOX 404 required reporting of such for financial analysts because analysts are important intermediaries in the U. S. capital market and it is no...

Unconventional Monetary Policies and the Corporate Bond Market
The paper uses a reduced-form vector autoregressive framework to study the effects of quantitative easing and operation “twist”, as well as a conventional monetary expansion, on corporate bond yields and spreads. We construct rating- and maturity-based weekly bond portfolios using TRACE and simulate monetary policies as shocks to the Treasury yield curve. We find that none of the policies c...
Enhancing the AIS curriculum: Integration of a research-led, problem-based learning task
Issues relating to student learning outcomes, retention and engagement, together with pressure to reinvigorate and differentiate higher education programs through integrating research-based material into the curriculum, are repeatedly in the spotlight. This paper reports on successful results from a case study of a student-centered, research-led, problem-based learning task that was incorporate...

Why have measures of earnings quality changed over time?
The properties of earnings have changed dramatically over the past 40 years. Prior studies interpret this trend as a decline in earnings quality but disagree on whether it results from changes in the real economy or changes in accounting standards. I find that each new cohort of listed firms exhibits lower earnings quality than its predecessors, mainly because of higher intangible intensity. I ...
National influence on the application of IFRS: Interpretations and accounting estimates by German and British accountants
International comparability of financial statements under IFRS can only be achieved if standards are interpreted and applied consistently across countries. However, the different institutional and cultural environments of various countries in which companies operate and in which individuals make accounting decisions suggest that application of IFRS may differ. Building on previous studies that ...

Preventing corruption within government procurement: Constructing the disciplined and ethical subject
This paper examines the role of internal controls and monitoring practices in corrupt contexts and how these controls and practices shape the ethics and moral behaviors of organizational actors. Specifically focusing on corruption in government procurement and drawing on the insights of Michel Foucault and Gilles Deleuze, the paper proposes that effective anti-corruption practices depend upon a...
Foreign ownership and auditor choice
We take advantage of the unique institutional background of the B-share stock market in China to explore the impact of foreign investors on auditor choice. Our results show that the percentage of B-share firms audited by Big 4 auditors has decreased with both economic and statistical significance since the segmented B-share market was opened to domestic investors in 200We find that the negative...
Improving the Disclosure Basis of Pension Accounting
In response to criticisms of U. S. pension accounting standards, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards 158 in 2006. However, the authors say more needs to be done, and they propose a gross recognition approach in which gross pension assets and liabilities are reported and prior service costs and actuarial gains/losses are recognized a...
Enterprise Master Plan: Next-Generation Planning With Activity-Based Costing
Imagine relaxing the assumption of a fixed sales forecast to solve for the optimum level of sales and marketing spending that will provide the maximum profit and return on investment. This article and case study explains how.