Accounting

Analyst Reputation, Communication, and Information Acquisition
Earlier studies have shown that reputational concerns tend to reduce agents' opportunistic behavior. However, a recent study by Morris (2001) argued that analysts' (experts') reputational concerns may discourage truthful communication when they try to avoid being perceived as being misaligned with investors. In this paper, I examine the effect of reputational concerns on communication in a sett...


Unsophisticated Arbitrageurs and Market Efficiency: Overreacting to a History of Underreaction?
Prior research has documented that arbitrage activity significantly reduces or eliminates stock market anomalies. However, if anomalies arise due to unsophisticated investors’ behavioral biases, then these same biases can also apply to unsophisticated arbitrageurs and thereby disrupt the arbitrage process. Consistent with a disruption in the arbitrage process for the post-earnings announcemen...
The influence of disclosure policy on analyst behavior: The case of segment data
More transparent disclosure reduces the effort required to process reported information. The adoption of Statement of Financial Accounting Standards (SFAS) No. 131, Disclosures about Segments of an Enterprise and Related Information, increased the transparency of segment information reported by diversified firms. Using a long sample window (1988–2007) and a difference-in-difference design, th...


How individual auditor characteristics impact the likelihood of audit failure: Evidence from China
Audit failure imposes a severe loss on investors and damages market participants' confidence in financial reporting quality. This study investigates the impacts of individual auditor characteristics on the likelihood of audit failure. Chinese regulators mandate listed firms to disclose the engagement auditors' identity. Furthermore, the information regarding individual auditor characteristics i...
Product market competition and earnings management: Evidence from discretionary accruals and real activity manipulation
We examine the association between product market competition and earnings management activities. We use the Herfindahl-Hirschman Index (HHI), a widely used measure for market concentration, as a proxy for product market competition. We examine two forms of earnings management: accrual-based and real activity-based. Our results are mixed, but generally suggest that both income-increasing accrua...


Impact of demographic and loan size on the probabilities of women freedom of movement empowerment
The purpose of this paper is to evaluate the impact of microfinance involvement of women’s freedom of movement empowerment. The cross sectional data for this study is collected by using questionnaires. Using random sampling, 744 households are selected from female clients of Khushhali Bank and National Rural Support Program from three districts namely district Bahawalpur, District Bahawalnaga...
Accounting and happiness
This paper begins with the observation that happiness is the primary goal of human endeavour. One critical element of human endeavour is business, leading to the proposition the primary objective of business is to contribute to happiness, with profit being a means towards this end. This central idea linking business and the pursuit of happiness is used to critique the capability of accounting t...

The Effect of Incentive-Based Compensation on Internal Auditors' Perceptions of Objectivity
A key threat to internal audit objectivity is the payment of incentive-based compensation (IBC) to internal auditors. This study uses an experimental approach to examine whether IBC paid to internal auditors based on company performance and individual performance does impact their objectivity. The study also investigates whether the cultural background of internal auditors affects their objecti...
Corporate social accountability through action: Contemporary insights from British industrial pioneers
Corporate social and environmental responsibility has become a major contemporary focus of business, government and community attention globally. With this increased attention and activity have come debates ranging across corporate authenticity, legislative necessity, and the scope of appropriate strategies. Through an historical analysis of four leading British industrialists of the 19th and e...

‘Professionals who understand’: Expertise, public interest and societal risk governance
This paper applies ideas from Beck, Power and Collins Evans to investigate why crises triggered by societal risks heighten tension between self-regulated experts and the state, and why this increased tension threatens professional self-regulation. Using an Irish case of the regulation of professional auditors, we find that Beck helps us to understand the accounting bodies’ view of their own p...
Accounting fundamentals and accounting change: Boulton & Watt and the Springfield Armory
The paper argues that by examining accounting’s technical/objective and relational/social characteristics simultaneously, a deeper understanding can be gained of accounting transition at key stages of economic development. Using the case of Boulton Watt (B&W), a pioneering firm of the British Industrial Revolution (BIR), the paper critiques prior interpretations and applies a taxonomy...

Evidencia empírica de los economistas españoles tras 5 años de aplicación de la reforma contable
Transcurridos 5 años desde la aplicación efectiva de la reforma contable en España, con el presente trabajo se ha buscado mostrar la opinión de los «Economistas Expertos en Contabilidad e Información Financiera» (ECIFCGE) sobre diversas cuestiones relacionadas con la misma. Para ello se ha utilizado una base empírica obtenida de sendas encuestas realizadas en 2008, 2009 y, la última, a...
Finance company failure in New Zealand during 2006–2009: Predictable failures?
Over 31 finance companies (non-bank deposit takers) failed in New Zealand over the 2006–2009 period. With an estimated loss of over NZ$3 billion, there was public outcry and a parliamentary inquiry into the causes of the failures, but few have asked if this was a predictable event. We find that failed finance companies have lower capital adequacy, inferior asset quality, more loans falling du...
Cross-listing as a Global Depository Receipt: The influence of emerging markets, regulation, and accounting regime
This paper examines factors influencing international firms’ decisions to cross-list as Global Depository Receipts (GDRs). We focus on differences in regulatory and accounting requirements between exchanges and the economic clustering that has arisen with increasing globalization. An important economic influence on this decision is the home country, reflecting trade ties. Higher US regulation...
Characteristics of non-audit services and financial restatements in Malaysia
Various types of purchased non-audit services (NAS) and their recurring nature affect the likelihood of financial statement restatements in Malaysia. Based on 953 firm-year observations during the period 2007–2009, evidence of a negative relationship between non-audit fees and financial statement restatements is provided. The purchase of both tax-related and audit-related NAS decreases the li...