Template-Type: ReDIF-Article 1.0 Author-Name: David Cabán Author-X-Name-First: David Author-X-Name-Last: Cabán Title: The comparability effects of principles based standards Abstract: This paper delves into the impact of transitioning from rules-based to principles-based accounting standards and its effect on financial statement comparability. The study leverages the ASC 606 adoption as a unique event to assess how this shift influenced the comparability of financial statements across industries and its effect on analyst coverage. Drawing upon the foundational work of De Franco et al. (2011) to develop a financial comparability measure, the paper evaluates the research question employing multi-variate regression models to explore potential changes in comparability across firms between the Pre-ASC 606 and the ASC 606 period. The findings indicate an improvement in financial statement comparability at the market level, with a more pronounced effect within industries characterised by high recurring revenues. Furthermore, the study reveals a positive correlation between improved financial statement comparability and increased analyst coverage, implying that enhanced transparency under principles-based accounting standards makes firms more attractive to analysts. Journal: American J. of Finance and Accounting Pages: 195-216 Issue: 3 Volume: 8 Year: 2025 Keywords: principles-based accounting; rules-based accounting; financial statement comparability; analyst coverage; ASC606. File-URL: http://www.inderscience.com/link.php?id=146006 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:3:p:195-216 Template-Type: ReDIF-Article 1.0 Author-Name: K.P. Sabirali Author-X-Name-First: K.P. Author-X-Name-Last: Sabirali Author-Name: S. Mahalakshmi Author-X-Name-First: S. Author-X-Name-Last: Mahalakshmi Author-Name: Jyoti Ranjan Sahoo Author-X-Name-First: Jyoti Ranjan Author-X-Name-Last: Sahoo Title: Does sustainability payoff? Exploring the influence of corporate sustainability on the financial performance of non-financial Indian companies Abstract: The relationship between corporate sustainability and financial performance remains a topic of ongoing debate among researchers. This study investigates the influence of corporate sustainability on the financial performance of non-financial Indian companies using a panel dataset of 113 firms from the Nifty200 index over 12 years. Employing a fixed-effects panel regression model, the findings indicate an insignificant relationship between corporate sustainability and financial performance. The insignificance of results may stem from the underdeveloped ESG reporting framework, compliance-driven sustainability initiatives rather than genuine commitments, or the complex and indirect pathways through which sustainability practices influence financial outcomes. These findings highlight the need for stronger regulatory mechanisms and improved sustainability disclosures to enhance transparency and investor confidence in the Indian market. Journal: American J. of Finance and Accounting Pages: 250-273 Issue: 3 Volume: 8 Year: 2025 Keywords: corporate sustainability; financial performance; ESG; environmental, social, and governance; panel data analysis. File-URL: http://www.inderscience.com/link.php?id=146032 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:3:p:250-273 Template-Type: ReDIF-Article 1.0 Author-Name: Oswin Aganda Anaba Author-X-Name-First: Oswin Aganda Author-X-Name-Last: Anaba Author-Name: Benjamin Azembila Asunka Author-X-Name-First: Benjamin Azembila Author-X-Name-Last: Asunka Author-Name: Dawuda Abudu Author-X-Name-First: Dawuda Author-X-Name-Last: Abudu Author-Name: Obed Dalad Mba Author-X-Name-First: Obed Dalad Author-X-Name-Last: Mba Author-Name: Edmund Nana Kwame Nkrumah Author-X-Name-First: Edmund Nana Kwame Author-X-Name-Last: Nkrumah Title: Analysing the determinants of technical efficiency in major Chinese retail firms: a bootstrap data envelopment analysis (DEA) and truncated regression approach Abstract: This study examines the technical efficiency of major domestic retail enterprises using bootstrap data envelopment analysis (DEA) and truncated regression analysis. Key findings reveal that large businesses and department stores are more technically efficient than small medium enterprises (SMEs). Technical efficiency positively correlates with operating income-to-sales and interest coverage ratios but negatively with debt and quick ratios. Additionally, firm age, size, and business type positively influence efficiency. Managerially, retail firms should optimise operations and adopt new technologies to enhance efficiency. Policymakers should support firms during economic downturns through fiscal measures like low-interest loans and tax cuts. The study's cross-sectional nature suggests future research should include longitudinal analysis for deeper insights. Journal: American J. of Finance and Accounting Pages: 217-232 Issue: 3 Volume: 8 Year: 2025 Keywords: retail enterprises; bootstrap; DEA; data envelopment analysis; truncated regression; technical efficiency; determinants; SMEs; large enterprises; department shops; china. File-URL: http://www.inderscience.com/link.php?id=146033 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:3:p:217-232 Template-Type: ReDIF-Article 1.0 Author-Name: Brishti Chakraborty Author-X-Name-First: Brishti Author-X-Name-Last: Chakraborty Title: Fraudulent accounting: an inquiry into earnings manipulation in industrial sectors of South Asia Abstract: Earnings manipulation is a prime concern affecting firms across industries, undermining shareholders' trust and corporate governance. The rapid industrial growth and governance difficulties repeatedly coexist in South Asia. The aim is to detect manipulation using an unbalanced panel dataset and ordinary least squares (OLS) regression, as it can effectively pinpoint significant factors of fraudulent usage and comprehension of statistical significance. Barnish M-M-score model is widely applicable to defect manipulation of prominent, large, and publicly traded companies with complex financial structures and high levels of volatility. The result revealed significant matrices Such as total accrual to total Assets, Gross margin index, asset quality index, and depreciation index, are critical in predicting manipulation; the value of R square is 36.60% with a 1% significance level, indicating a valuable insight into earnings manipulation. The study provides valuable insight into risk management tactics but does not cover all financial ratios or non-financial misconduct. Journal: American J. of Finance and Accounting Pages: 233-249 Issue: 3 Volume: 8 Year: 2025 Keywords: financial fraud; detection; Beneish M-score model; manipulation; South Asia. File-URL: http://www.inderscience.com/link.php?id=146034 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:3:p:233-249 Template-Type: ReDIF-Article 1.0 Author-Name: Janie Whiteaker-Poe Author-X-Name-First: Janie Author-X-Name-Last: Whiteaker-Poe Title: Detecting tax motivated transfer pricing Abstract: This paper provides a method for analysing publicly available financial statement information in order to detect tax-motivated transfer pricing. The key components to the analysis are permanently reinvested earnings, discretionary uncertain tax benefits, and the difference between domestic and foreign tax rates. Extant research indicates that both permanently reinvested earnings and uncertain tax benefits are influenced by transfer pricing. This study demonstrates that the relationship between permanently reinvested earnings and discretionary uncertain tax benefits is moderated by the tax rate differential. The tax rate differential provides companies with the incentive and opportunity to engage in tax-motivated transfer pricing. Finding that the tax rate differential moderates the impact of discretionary uncertain tax benefits on permanently reinvested earnings suggests that companies are engaging in tax-motivated transfer pricing. Journal: American J. of Finance and Accounting Pages: 321-339 Issue: 4 Volume: 8 Year: 2025 Keywords: transfer pricing; tax policy; international taxation; permanently reinvested earnings; uncertain tax benefits; ASC 740; Tax Cuts and Jobs Act. File-URL: http://www.inderscience.com/link.php?id=149904 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:4:p:321-339 Template-Type: ReDIF-Article 1.0 Author-Name: Post Raj Pokharel Author-X-Name-First: Post Raj Author-X-Name-Last: Pokharel Title: Customer and supplier pressure on financial distress: evidence from USA Abstract: This study examines the customer and supplier pressure through the effect of trade credit on financial distress using 30 years of USA corporate data (1992-2023) from the Compustat database. The findings reveal a nuanced relationship: an increase in trade payables elevates the likelihood of financial distress, while trade receivables mitigate distress up to a threshold. The study further documents a U-shaped relationship between trade payables and financial distress, and an inverted U-shaped relationship between trade receivables and economic health. This study contributes to the literature by uncovering non-linear dynamics between trade credit and financial distress, enriching managerial and policy insights. Journal: American J. of Finance and Accounting Pages: 340-364 Issue: 4 Volume: 8 Year: 2025 Keywords: financial distress; trade credit; liquidity; creditors; debtors; bankruptcy; Altman_Z. File-URL: http://www.inderscience.com/link.php?id=149905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:4:p:340-364 Template-Type: ReDIF-Article 1.0 Author-Name: Elena Precourt Author-X-Name-First: Elena Author-X-Name-Last: Precourt Author-Name: Elzotbek Rustambekov Author-X-Name-First: Elzotbek Author-X-Name-Last: Rustambekov Title: Share repurchasing practices of firms approaching bankruptcy Abstract: We examine whether financially distressed firms approaching bankruptcy employ performance-enhancing practices such as share buybacks. We analyse repurchasing firms' operating performance as they approach bankruptcy and determine whether these performance results differ from those of non-repurchasing pre-bankrupt firms. We further examine the magnitude of stock buybacks and how their relative size impacts firms' operating performance. We find that repurchasing firms have stronger operating performance than non-repurchasing ones, irrespective of the relative size of the transactions. Stock buybacks have no impact on operating performance of earnings managing firms. We find no evidence of a higher likelihood of earnings managing firms to engage in share repurchases. Earnings managing firms that do repurchase their shares perhaps do not do it to manage earnings, since in general, earnings managing firms, irrespective of their share repurchasing habits, are operationally weaker during the five-year period preceding the filings than their non-managing counterparts. Journal: American J. of Finance and Accounting Pages: 293-320 Issue: 4 Volume: 8 Year: 2025 Keywords: share buybacks; earnings management; corporate bankruptcy; financial distress; share repurchases; operating performance; earnings manipulation. File-URL: http://www.inderscience.com/link.php?id=149906 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:4:p:293-320 Template-Type: ReDIF-Article 1.0 Author-Name: Dilini Gunasekara Author-X-Name-First: Dilini Author-X-Name-Last: Gunasekara Author-Name: Neelangie Nanayakkara Author-X-Name-First: Neelangie Author-X-Name-Last: Nanayakkara Title: The disposition effect in securities trading during the economic crisis; empirical evidence from the frontier market in Sri Lanka Abstract: This paper examines whether the disposition effect can be observed in the Sri Lankan Frontier Market before the economic crisis (2015-2018) and during the crisis (2019-2022). The study employs the disposition coefficient. The method considered the All Share Price Index (ASPI) closing index prices and respective share volumes, which were gathered daily from 1 January, 2015, to 31 December, 2022. Based on the disposition coefficient model, the results show that the disposition effect could not be observed before and during the economic crisis period. Furthermore, the researcher employs the Grinblatt and Han model. It uses a sample of 166 companies out of 290 listed on the Frontier Market in Sri Lanka. The findings of the Grinblatt and Han model reveal that stocks with a large negative capital gains overhang (CGO) exhibit a significant unrealised capital loss, meaning that the stock's market value is below the cost basis of its current shareholders (reference price). This indicates that investors are holding losing stocks and have not realised the losses and may be reluctant to sell them due to the disposition effect. Therefore, the disposition effect can be observed in the frontier market of Sri Lanka, both before and during economic crises. This study enables investors to make informed decisions, allowing them to allocate capital more efficiently, which in turn promotes economic expansion, enhances economic productivity, and fosters the potential for wealth generation. Therefore, the study may be helpful for different stakeholders. Journal: American J. of Finance and Accounting Pages: 275-292 Issue: 4 Volume: 8 Year: 2025 Keywords: disposition effect; frontier market; Sri Lanka; economic crisis. File-URL: http://www.inderscience.com/link.php?id=149907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:amerfa:v:8:y:2025:i:4:p:275-292