Template-Type: ReDIF-Article 1.0
Author-Name: Thomas R. Loy
Author-X-Name-First: Thomas R.
Author-X-Name-Last: Loy
Title: Earnings and balance-sheet properties and the interplay of tax incentives and tax enforcement
Abstract:
This paper analyses the joint association of tax incentives and tax law enforcement strictness on private firms' earnings and balance sheet properties. It answers a call for additional research on why "here is (…) substantial within-country variation in managers' incentives to [manage] earnings" [LaFond et al., (2007), p.14]. There is evidence that tax laws in practice are enacted to a different extent within a country's homogenous legal framework. The key results are that stricter tax law enforcement impairs managers' ability or willingness to engage in income-decreasing accrual earnings management. On the downside, managers instead seem to resort to real earnings management choices which are associated with potentially negative long-term real business impact but generally covered by the business judgement rule.
Journal: Int. J. of Economics and Accounting
Pages: 421-449
Issue: 4
Volume: 10
Year: 2021
Keywords: financial reporting; tax incentives; tax enforcement.
File-URL: http://www.inderscience.com/link.php?id=118274
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:4:p:421-449

Template-Type: ReDIF-Article 1.0
Author-Name: Yusuke Takasu
Author-X-Name-First: Yusuke
Author-X-Name-Last: Takasu
Title: Relationships among earnings quality, bank monitoring, and cost of bank loans: evidence from Japan
Abstract:
Earnings quality is frequently used as a proxy for information risk in accounting contexts. Following previous literature, I analyse the relationship between earnings quality and the cost of bank loans in Japan. I hypothesise and test how bank monitoring affects the relationship between earnings quality and the cost of loans. I find that total earnings quality, innate earnings quality generated from economic fundamentals, and discretionary earnings quality driven by managerial discretion over accounting affect the cost of bank loans. Additionally, I find that bank monitoring mitigates the effect of discretionary earnings quality on loan pricing. Empirical results support my predictions grounded in information risk and previous banking literature. Introducing bank monitoring to my research confirms and extends the previous literature.
Journal: Int. J. of Economics and Accounting
Pages: 204-230
Issue: 2
Volume: 10
Year: 2021
Keywords: earnings quality; accruals quality; bank monitoring; information risk; cost of bank loans; Japan.
File-URL: http://www.inderscience.com/link.php?id=115205
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:2:p:204-230

Template-Type: ReDIF-Article 1.0
Author-Name: Komol Singha
Author-X-Name-First: Komol
Author-X-Name-Last: Singha
Author-Name: Pradyut Guha
Author-X-Name-First: Pradyut
Author-X-Name-Last: Guha
Author-Name: Elangbam Haridev Singh
Author-X-Name-First: Elangbam Haridev
Author-X-Name-Last: Singh
Title: Can Bhutan hydropower model be replicated in India's north-eastern region? An assessment
Abstract:
Hydropower contributes around 20% of Bhutan's economy, chiefly by exporting it to India. Around 90% of the sector's investment comes from India and the hydropower plants installed in Bhutan are typically the run-of-river (RoR) model. In India, around 1.5 lakh MW hydropower potential has been identified, which is six times more than Bhutan's. Of the total identified hydropower potential in India, 43% of it is found in the country's north-eastern region (NER). But, to date, hardly 2%-4% of it has been tapped. With the help of secondary data, this paper explored the evidence that India can replicate the Bhutan hydropower model. However, the dam-based model is strongly opposed due to its catastrophic impacts on the environment and the livelihood of the locals. Besides, the issues related to rehabilitation and political interference in dam construction are the major causes of concern in the hydropower sector in NER.
Journal: Int. J. of Economics and Accounting
Pages: 467-491
Issue: 4
Volume: 10
Year: 2021
Keywords: anti-dam; Bhutan; economy; hydropower; north-eastern region; NER; India; run-of-river; RoR.
File-URL: http://www.inderscience.com/link.php?id=118277
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:4:p:467-491

Template-Type: ReDIF-Article 1.0
Author-Name: Takehide Ishiguro
Author-X-Name-First: Takehide
Author-X-Name-Last: Ishiguro
Author-Name: Akihiro Yamada
Author-X-Name-First: Akihiro
Author-X-Name-Last: Yamada
Title: Overconfident CEOs, decentralisation, and tax aggressiveness: evidence from Japan
Abstract:
This study investigates the relationship between chief executive officers' (CEO) overconfidence and tax avoidance, and the process through which the influence of CEOs' overconfidence propagates to subsidiaries and affiliates. To estimate CEOs' overconfidence, this study focuses on Japanese management forecasts, which are disclosed by most companies in Japan. This approach allows mitigating sample selection bias. The study's results indicate that: 1) companies with overconfident CEOs engage in more aggressive tax avoidance; 2) the influence of CEOs' overconfidence is more pronounced in parent companies directly operated by CEOs. These trends are more pronounced when CEOs are overconfident regarding specific information and are also observed when the analysis accounts for factors related to corporate governance. The study's findings suggest that the nature of manager has a substantial impact on corporate tax planning, and such impact is more likely to spread in organisations closer to the CEO.
Journal: Int. J. of Economics and Accounting
Pages: 181-203
Issue: 2
Volume: 10
Year: 2021
Keywords: tax avoidance; tax aggressiveness; overconfidence; weighting effects; optimism; decentralisation; corporate governance; subsidiaries; parent companies; Japan.
File-URL: http://www.inderscience.com/link.php?id=115208
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:2:p:181-203

Template-Type: ReDIF-Article 1.0
Author-Name: Debasis Mohanty
Author-X-Name-First: Debasis
Author-X-Name-Last: Mohanty
Author-Name: Jakki Samir Khan
Author-X-Name-First: Jakki Samir
Author-X-Name-Last: Khan
Author-Name: Subhasish Das
Author-X-Name-First: Subhasish
Author-X-Name-Last: Das
Author-Name: Shakti Ranjan Mohapatra
Author-X-Name-First: Shakti Ranjan
Author-X-Name-Last: Mohapatra
Title: Dynamic relationship between Indian stock index and commodity derivatives: with special reference to metals
Abstract:
'Investment in stocks or derivatives' is always a topic of debate. Therefore, a research on this topic is as important as investment in these avenues. This paper aimed at finding the relationship among Sensex, the oldest stock index of India and metals. To analyse the relationship, data for five years of Sensex and six metals' prices were taken into consideration. The tools used to find the relationship among variables is co-integration, vector autoregression and impulse-response function. The result reveals there is a long-run relationship among the variables and there is no short-run relationship in ceteris paribus under ordinary least square. This paper will help individual as well as institutional investors to construct a diversified portfolio by including those metals which show a negative response and exclude those which show a positive response to the impulse of the stock index.
Journal: Int. J. of Economics and Accounting
Pages: 394-409
Issue: 4
Volume: 10
Year: 2021
Keywords: derivatives; stock index; Sensex; VAR; co-integration; relationship; impulse-response.
File-URL: http://www.inderscience.com/link.php?id=118280
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:4:p:394-409

Template-Type: ReDIF-Article 1.0
Author-Name: Sumitaka Ushio
Author-X-Name-First: Sumitaka
Author-X-Name-Last: Ushio
Author-Name: Nobuhisa Yamamoto
Author-X-Name-First: Nobuhisa
Author-X-Name-Last: Yamamoto
Title: The application of deep learning to predict corporate growth
Abstract:
This study examines the use of deep learning to predict corporate growth. An algorithmic model is constructed to identify growing (as well as non-growing) companies based on a snapshot (single year) of financial data without a time series. The binary classification model predicts whether sales will increase in the following year for 353 retail companies in the Tokyo Stock Exchange 33 sector category in Japan, by utilising all available items in their balance sheets and profit/loss statements (308 numerical values) as well as the size of the companies. As a result, the model achieves 74.79% classification accuracy. The area under the curve (AUC) of the model is 0.75, which shows moderate accuracy of prediction regardless of its cut-off point. This study also debates the methodological significance of applying deep learning to accounting research in comparison with traditional (frequentism) statistics.
Journal: Int. J. of Economics and Accounting
Pages: 248-263
Issue: 2
Volume: 10
Year: 2021
Keywords: deep learning; growth prediction; accounting research; artificial intelligence; AI; algorithmic modelling.
File-URL: http://www.inderscience.com/link.php?id=115209
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:2:p:248-263

Template-Type: ReDIF-Article 1.0
Author-Name: Motohiro Tazawa
Author-X-Name-First: Motohiro
Author-X-Name-Last: Tazawa
Author-Name: Tatsuhiko Tashiro
Author-X-Name-First: Tatsuhiko
Author-X-Name-Last: Tashiro
Title: Predisposed opportunities: incentives for earnings forecasts revision by management under the Japanese 'Timely Disclosure Rules'
Abstract:
This study investigates the incentives on revisions of management earnings forecasts in Japan, where the disclosure of forecasts is effectively mandatory in quarterly financial reporting, but their revisions are required only when a certain threshold is exceeded. Under this unique Japanese system, which is different from the US-style voluntary disclosure, we hypothesise that predisposed opportunities provided in each quarterly financial reporting will encourage management to make voluntary disclosures. Our analysis shows that earnings forecasts revisions by management are lower on the earnings announcement date than during the course of a quarterly period. Our results also suggest that slight revisions made on the earnings announcement date contribute to increasing the frequency of revisions. In addition, our evidence shows relatively small errors when forecasts have been revised by narrow margins. These findings imply that the Japanese 'Timely Disclosure Rule' promotes the disclosure of timely revisions of forecasts and has the effect of disciplining management to monitor profit prospects more accurately. Our findings are also consistent with the Japanese management belief that forecast information is important, and timely disclosures should be voluntary rather than required by regulation.
Journal: Int. J. of Economics and Accounting
Pages: 144-180
Issue: 2
Volume: 10
Year: 2021
Keywords: management forecasts; forecast revisions; forecast accuracy; forecast errors; frequency of revisions; voluntary disclosure; quarterly financial reporting; Japan.
File-URL: http://www.inderscience.com/link.php?id=115235
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:2:p:144-180

Template-Type: ReDIF-Article 1.0
Author-Name: Yo Isokawa
Author-X-Name-First: Yo
Author-X-Name-Last: Isokawa
Title: Long-term comparability of accounting information in Japan
Abstract:
This study examines the tendency of accounting information comparability in Japan over the 30-year period from 1988 to 2017. Several prior studies testing accounting information's usefulness indicate that value relevance tends to decline over the long term. Accounting information's comparability is another aspect of its usefulness. Even if value relevance declines over time, improved comparability can enhance the usefulness of accounting information. This study provides a long-term analysis from the perspective of De Franco et al. (2011) idea of comparability. The results show that comparability in Japan also tends to decline over the long term and did not improve with convergence with the International Financial Reporting Standards. However, comparability tended to improve after 2012. The additional analysis shows that the bid-ask spread rate decreases as comparability improves. Thus, comparability declined in Japan, and asymmetric information is expanding.
Journal: Int. J. of Economics and Accounting
Pages: 231-247
Issue: 2
Volume: 10
Year: 2021
Keywords: comparability; convergence with IFRS; value relevance; asymmetric information; bid-ask spread; long-term analysis; usefulness of accounting information; changes in business activities; Japan.
File-URL: http://www.inderscience.com/link.php?id=115242
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:2:p:231-247

Template-Type: ReDIF-Article 1.0
Author-Name: Martin Knipp
Author-X-Name-First: Martin
Author-X-Name-Last: Knipp
Author-Name: Jochen Zimmermann
Author-X-Name-First: Jochen
Author-X-Name-Last: Zimmermann
Title: Does accounting quality impact the cost of capital? An empirical study on the German capital market
Abstract:
In this paper we examine whether the accounting quality has an impact on the cost of capital of listed German firms from 1995 to 2014. The accounting quality is approximated by the amount of earnings management executed by the firms' management. Earnings management is operationalised by measures according to Leuz et al. (2003) and the cost of capital is estimated by the capital asset pricing model (CAPM). By using fixed-effects regressions and variance analyses on portfolios referring the research area of accounting quality and the cost of capital, we find that firms with high accounting quality and a low level of earnings management have averagely significant lower cost of capital than firms with low accounting quality and a high level of earnings management.
Journal: Int. J. of Economics and Accounting
Pages: 1-26
Issue: 1
Volume: 10
Year: 2021
Keywords: accounting quality; disclosure quality; earnings management; cost of capital.
File-URL: http://www.inderscience.com/link.php?id=112763
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:1:p:1-26

Template-Type: ReDIF-Article 1.0
Author-Name: Marius-Ioan Mihuț
Author-X-Name-First: Marius-Ioan
Author-X-Name-Last: Mihuț
Title: Nippon economic thinking during the Meiji restoration
Abstract:
The main objective pursued within the research is presenting the Shogunate period from the perspective of economic thinking, how the economical components were approached and analysed during the Shogunate period, to emphasise the importance of this period on Japanese economic thinking overall. The aspects presented showed that the vast majority of the ideas expressed by the representatives of this period indicated that during the Shogunate a series of values were founded, such as long work, restraint, acceptance of the hierarchy, acceptance of the authority, high savings, endless ambition, awareness of the group's power, caring for the subjects' good. All these, combined with the critical economic doctrines, through their Nipponisation, led to the strengthening of the Nippon economic doctrine.
Journal: Int. J. of Economics and Accounting
Pages: 88-96
Issue: 1
Volume: 10
Year: 2021
Keywords: economic thinking; Shogunate; Japan; theories; doctrines.
File-URL: http://www.inderscience.com/link.php?id=112771
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:1:p:88-96

Template-Type: ReDIF-Article 1.0
Author-Name: Carolin Althoff
Author-X-Name-First: Carolin
Author-X-Name-Last: Althoff
Title: Corporate social responsibility as an element of good corporate governance - a chronology of its historical and contemporary development
Abstract:
Despite many years of dedicated debates on the concepts of corporate social responsibility (CSR) and corporate governance, the question of whether CSR can now be regarded as part of good corporate governance due to underlying changes has not yet been adequately answered. This paper addresses this question by providing a systematic historical literature overview of the concept of CSR before considering it in the context of corporate governance. In this regard, the concept of corporate governance is outlined, and the theoretical basis and corresponding definitions are presented, followed by a comparison of the two concepts. A critical appraisal, predominantly from a European perspective, situates the concepts within the current context and identifies possible problem areas and/or particular challenges that could lead to a new characterisation of CSR as part of good corporate governance.
Journal: Int. J. of Economics and Accounting
Pages: 57-87
Issue: 1
Volume: 10
Year: 2021
Keywords: corporate social responsibility; CSR; corporate governance; stakeholder theory; stakeholder value; shareholder value; literature overview.
File-URL: http://www.inderscience.com/link.php?id=112782
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:1:p:57-87

Template-Type: ReDIF-Article 1.0
Author-Name: Ayobami Oladejo
Author-X-Name-First: Ayobami
Author-X-Name-Last: Oladejo
Author-Name: Chijioke Nwachukwu
Author-X-Name-First: Chijioke
Author-X-Name-Last: Nwachukwu
Title: Assessing internal audit function and public sector performance in Nigeria
Abstract:
The growing size and complexity of the public sector in recent years call for a robust internal audit function. This study shed light on the link between internal audit function and public sector performance. The paper uses surveys conducted on 30 local government areas and ministry of finance in Osun State in Nigeria. We used correlation and regression to analyse the association between internal audit function and public sector performance. Data from 93 participants suggest that the quality of manpower and service dimension of internal audit function enhance public sector performance. Quality of audit delivery has a negative and significant impact on public sector performance. Robustness of audit has an insignificant negative relationship with public sector performance. Furthermore, quality of manpower and service increase public sector effectiveness, efficiency and quality of service.
Journal: Int. J. of Economics and Accounting
Pages: 97-111
Issue: 1
Volume: 10
Year: 2021
Keywords: internal audit; public sector; robustness of audit; performance; manpower; Nigeria.
File-URL: http://www.inderscience.com/link.php?id=112784
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:1:p:97-111

Template-Type: ReDIF-Article 1.0
Author-Name: Edgar Mauricio Flores Sánchez
Author-X-Name-First: Edgar Mauricio Flores
Author-X-Name-Last: Sánchez
Author-Name: Axel Rodríguez Batres
Author-X-Name-First: Axel Rodríguez
Author-X-Name-Last: Batres
Author-Name: Javier Antonio Flores Delgado
Author-X-Name-First: Javier Antonio Flores
Author-X-Name-Last: Delgado
Author-Name: Joaquin Bernardo Varela Espidio
Author-X-Name-First: Joaquin Bernardo Varela
Author-X-Name-Last: Espidio
Title: Analogue valuation of micro companies belonging to the retail sector in Mexico using key financial indicators
Abstract:
The micro companies are economic units of great importance for the social and economic development of any country or region, specifically in Mexico, the micro companies focused on the retail sector stand out due to the number of units and the jobs they provide. The valuation of companies offers a variety of tools to determine the value of these organisations for various purposes, specifically analogical valuation allows working in environments of scarcity of information in order to provide relevant conclusions about the value of the companies analysed. The multiple linear regression method was used to determine the value of the selected microenterprises as a dependent variable with respect to a series of independent variables obtained from key financial information contained in the financial statements of the companies belonging to the sample. The results allowed us to identify the variables that determine to a greater extent the value of microenterprises in retail trade in Mexico, providing an alternative method which contributes to an improvement in the business decision making of all the interested groups.
Journal: Int. J. of Economics and Accounting
Pages: 27-56
Issue: 1
Volume: 10
Year: 2021
Keywords: valuation; linear regression; micro companies; retail.
File-URL: http://www.inderscience.com/link.php?id=112785
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:1:p:27-56

Template-Type: ReDIF-Article 1.0
Author-Name: Ajay Kumar
Author-X-Name-First: Ajay
Author-X-Name-Last: Kumar
Author-Name: Kamal Deka
Author-X-Name-First: Kamal
Author-X-Name-Last: Deka
Author-Name: Dinesh Kumar Meena
Author-X-Name-First: Dinesh Kumar
Author-X-Name-Last: Meena
Title: Application of travel cost method to estimate tourism recreational value of Assam State Zoo cum Botanical Garden, Guwahati, Assam, India
Abstract:
Assam State Zoo cum Botanical Garden spreads across 175 hectares and attracts more than 0.50 million domestic tourists every year. Travel cost data for quantification of economic value of recreational services of the zoo was collected through direct interview of 324 visitors. Different socio-economic characteristics of tourists that influence individual consumer surplus were also recorded. Results show that average consumer surplus per tourist per visit accruing to domestic tourists was ₹672 and total annual recreational value of the zoo was ₹364.69 million (US$5.21 million) which is almost 20 times to the total revenue (₹18.49 million) earned by the zoo in a year. This clearly shows that revenue collected through entry fee is not reflecting the true economic value of recreational services of the zoo. The results of the study provide enough explanation for enhanced investment from government in the zoo to ensure continued flow of essential ecosystem service.
Journal: Int. J. of Economics and Accounting
Pages: 340-351
Issue: 3
Volume: 10
Year: 2021
Keywords: recreational value; travel cost method; TCM; consumer surplus; whole experience demand curve; India.
File-URL: http://www.inderscience.com/link.php?id=116683
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:3:p:340-351

Template-Type: ReDIF-Article 1.0
Author-Name: Michael Deterding
Author-X-Name-First: Michael
Author-X-Name-Last: Deterding
Author-Name: Marius Gros
Author-X-Name-First: Marius
Author-X-Name-Last: Gros
Title: The association between accounting information and share prices in developing countries: does corruption matter?
Abstract:
The extant value relevance literature documents that the association between accounting information and share prices differs from country to country. Numerous studies attempt to explain the observed differences and identify their determinants, such as the system of corporate governance, the level of shareholder protection, or differences in accounting standards. To date, there is no paper that explicitly addresses the influence of a country's state of development and the level of corruption on the value relevance of accounting information. We fill this gap, as our analysis indicates that accounting information is more value relevant in less developed countries and in countries with high levels of corruption. We argue that in developing countries with high levels of corruption, capital market participants rely in particular on accounting information to compensate for a lack of reliable alternative information sources.
Journal: Int. J. of Economics and Accounting
Pages: 321-339
Issue: 3
Volume: 10
Year: 2021
Keywords: value relevance; state of development; corruption; developing countries.
File-URL: http://www.inderscience.com/link.php?id=116691
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:3:p:321-339

Template-Type: ReDIF-Article 1.0
Author-Name: Dragoş Păun
Author-X-Name-First: Dragoş
Author-X-Name-Last: Păun
Author-Name: Ioan-Alin Nistor
Author-X-Name-First: Ioan-Alin
Author-X-Name-Last: Nistor
Author-Name: Eva Dezsi
Author-X-Name-First: Eva
Author-X-Name-Last: Dezsi
Title: Estimating volatility using GARCH models on the Romanian stock market
Abstract:
This paper aims to analyse the volatility of the Romanian market by employing GARCH models in order to assess the characteristics of the stock market. We investigate the presence of leverage effects and volatility clustering, mean-reversion, by employing symmetric and asymmetric models. The evolution of the volatility of a market is a good indicator of the uncertainty of the trading environment, and we wish to assess the state of the Romanian stock market in the light of the current economic and market conditions. We consider this to be important as the risk and return related to the stock market can be an indicator to the general view of the Romanian economy. The empirical investigation was conducted on the principal indexes from the Romanian stock exchange, from the day each index was listed until April 2017. The results indicate that on the Romanian market a strong persistence is observable for all the indexes, but, with the exception of BET and BET-FI, no asymmetric effects could be detected. Our results indicate that the Romanian market is mainly characterised by low and very low volatility, with short periods of spikes in high volatility.
Journal: Int. J. of Economics and Accounting
Pages: 310-320
Issue: 3
Volume: 10
Year: 2021
Keywords: Romanian stock market; volatility; GARCH models.
File-URL: http://www.inderscience.com/link.php?id=116693
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:3:p:310-320

Template-Type: ReDIF-Article 1.0
Author-Name: Sydney Hoffman
Author-X-Name-First: Sydney
Author-X-Name-Last: Hoffman
Author-Name: Anita Reed
Author-X-Name-First: Anita
Author-X-Name-Last: Reed
Author-Name: Ramon P. Rodriguez Jr.
Author-X-Name-First: Ramon P. Rodriguez
Author-X-Name-Last: Jr.
Author-Name: L. Murphy Smith
Author-X-Name-First: L. Murphy
Author-X-Name-Last: Smith
Author-Name: Wayne Tervo
Author-X-Name-First: Wayne
Author-X-Name-Last: Tervo
Title: An examination of the fair tax proposal in the USA and millennials' perspectives
Abstract:
A major public policy in most countries is the national tax system, often heavily debated. A citizen's moral responsibility to pay taxes was well established in the First Century AD with Jesus' famous statement: “Render to Caesar the things that are Caesar's, and to God the things that are God's”. Thus, while a citizen's duty is clear, there are still questions about the way taxes are designed and administered. In the USA, many citizens complain that taxes are overly complicated, burdensome and unfair. A potential replacement to the current federal tax system is the consumption-based 'FairTax'. This study examines millennials' perspectives regarding income-based and consumption-based tax systems, thereby ascertaining the level of openness to switch from the current income-based system to the FairTax, a consumption-based system. Findings have ramifications for all countries, if they are considering switching all or part of an income-based system to a consumption-based system.
Journal: Int. J. of Economics and Accounting
Pages: 352-377
Issue: 3
Volume: 10
Year: 2021
Keywords: public policy; taxation; income tax; FairTax; flat tax; USA.
File-URL: http://www.inderscience.com/link.php?id=116694
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:3:p:352-377

Template-Type: ReDIF-Article 1.0
Author-Name: Marius Ioan Mihuț
Author-X-Name-First: Marius Ioan
Author-X-Name-Last: Mihuț
Title: The level of non-financial reporting within Romanian listed companies
Abstract:
The main objective of the current study is to analyse how the national introduction of Directive 2014/95/EU which obliges the listed entities on the stock exchange with a number of over 500 employees to report non-financial information on diversity and sustainability, generated changes regarding the quantity and quality of non-financial information reported by the Romanian listed entities on Bucharest Stock Exchange (BSE), categories I, II and III. As conclusions of our analyses, we find difficulties in implementing Directive 95/2014/EU within the most representative entities in Romania. Thus, we consider the non-financial reports made by the entities in Romania are lacking in transparency. From the analysed information, the most important and most reported are the narrative and descriptive non-financial information.
Journal: Int. J. of Economics and Accounting
Pages: 265-277
Issue: 3
Volume: 10
Year: 2021
Keywords: Romania; companies; non-financial reporting; Directive 95/2014/EU.
File-URL: http://www.inderscience.com/link.php?id=116697
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:3:p:265-277

Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth A. Donovan
Author-X-Name-First: Elizabeth A.
Author-X-Name-Last: Donovan
Author-Name: Charles Graves
Author-X-Name-First: Charles
Author-X-Name-Last: Graves
Author-Name: Amanda M. Grossman
Author-X-Name-First: Amanda M.
Author-X-Name-Last: Grossman
Author-Name: Dan Harris
Author-X-Name-First: Dan
Author-X-Name-Last: Harris
Title: Potential market redistribution following a big four accounting firm failure
Abstract:
This work investigates potential market effects of the hypothetical failure of a big four accounting firm, emphasising how audit and accounting services would be redistributed among the remaining firms. Using graph-theoretic techniques and historical data based upon the failure of Arthur Andersen in 2002, three models of a post-failure redistribution of services are considered. The first model assumes that no mergers/acquisitions occur post-failure amongst the largest accounting firms, besides the redistribution of the failed firm's employees and clients. The second and third models assume that several non-big four firms merge together to create 'the merger', which becomes the approximate size of the pre-failure firm. The results indicate that at least two of the remaining 'big' firms would switch ranks in terms of global revenues, and that the merger becomes as comparatively efficient as the continuing 'big' firms when measured by average revenues generated per employee.
Journal: Int. J. of Economics and Accounting
Pages: 278-298
Issue: 3
Volume: 10
Year: 2021
Keywords: accounting; big four failure; market redistribution; network flow model.
File-URL: http://www.inderscience.com/link.php?id=116698
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:3:p:278-298

Template-Type: ReDIF-Article 1.0
Author-Name: Crisan Andrei-Razvan
Author-X-Name-First: Crisan
Author-X-Name-Last: Andrei-Razvan
Author-Name: Campan Nicolae
Author-X-Name-First: Campan
Author-X-Name-Last: Nicolae
Author-Name: Campan Marius
Author-X-Name-First: Campan
Author-X-Name-Last: Marius
Title: A historical perspective of accounting in the public sector in Romania
Abstract:
The main objective pursued within the research is presenting the accounting in the public sector in Romania from a historical and theoretical perspective. The public sector is vital for society because it provides services to maximise the well-being of the population and the public interest. Given the transition from the centralised economy to the market economy, accounting has undergone significant changes since the fall of the communist regime. To make the transition easier, Romania used as a benchmark the French accounting model, in the same year in which Romania applied to the membership of the European Union. Regarding the main reforms undertaken at the level of public accounting in Romania, the most important of these is considered the transition from cash accounting to accrual accounting. In Romania, the accrual accounting was introduced in 2007, the year in which Romania joined the European Union.
Journal: Int. J. of Economics and Accounting
Pages: 299-309
Issue: 3
Volume: 10
Year: 2021
Keywords: accounting; public sector; Romania; evolution; history.
File-URL: http://www.inderscience.com/link.php?id=116699
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:3:p:299-309

Template-Type: ReDIF-Article 1.0
Author-Name: Akihiro Yamada
Author-X-Name-First: Akihiro
Author-X-Name-Last: Yamada
Title: Do managers mimic rivals' forecast revisions? Evidence from Japan
Abstract:
When managers face uncertain business environments or enter a compensation contract that ties their firm to other's behaviours, their management forecast disclosure may be affected by the behaviours of others. This study examines management earnings forecast revisions in Japan from the standpoint of herding behaviour theory. The results reveal the following: 1) management earnings forecast revisions follow the mean values of preceding forecast revisions issued by firms in the same industry; 2) mimicking behaviours are weaker when the number of days from the management earnings forecast release to the closing date decreases or when the mean value of rivals' forecast revisions is negative; 3) bold management earnings forecast revisions (i.e., that deviate significantly from the mean value of rivals' forecast revisions) lead to improved forecast accuracy. The results suggest that analysts, policymakers, and investors should consider herding behaviours when they use management forecasts to make predictions.
Journal: Int. J. of Economics and Accounting
Pages: 116-143
Issue: 2
Volume: 10
Year: 2021
Keywords: management forecasts; forecast guidance; forecast revisions; forecast accuracy; forecast errors; herding behaviour; asymmetric herding; Japan.
File-URL: http://www.inderscience.com/link.php?id=115183
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:2:p:116-143

Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Raita
Author-X-Name-First: Gabriel
Author-X-Name-Last: Raita
Author-Name: Marius-Ioan Mihuț
Author-X-Name-First: Marius-Ioan
Author-X-Name-Last: Mihuț
Title: Fiscal evasion in Romania: a theoretical and practical approach
Abstract:
The main objective of this research is to analyse the factors that influence or cause the occurrence of tax evasion in Romania. The phenomenon of tax evasion has grown in Romania due to the diversification and complexity of trade under imperfect legislation, which represents favourable circumstances, and adverse effects place their mark on the national economy (Moraru et al., 2005). The study is based on a questionnaire applied to Romanian accountants on how they perceive the factors considered to be determinant or not of tax evasion in Romania. The results show that in Romania, high taxes and the low intensity of fiscal pressure have a direct impact on tax evasion, causing it to grow. As proposed measures to reduce tax evasion, it is advisable to strengthen the legislative apparatus, to reduce taxes, to increase the involvement of the authorities.
Journal: Int. J. of Economics and Accounting
Pages: 379-393
Issue: 4
Volume: 10
Year: 2021
Keywords: tax evasion; Romania; accounting experts; accounting; questionnaire.
File-URL: http://www.inderscience.com/link.php?id=118265
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:4:p:379-393

Template-Type: ReDIF-Article 1.0
Author-Name: Nicoleta Maria Ienciu
Author-X-Name-First: Nicoleta Maria
Author-X-Name-Last: Ienciu
Title: Human capital reporting in Romania: practical considerations
Abstract:
The main goal of this study is to investigate the level of human capital reporting, using the human capital reporting frame suggested by Sveiby (1997) as a point of reference. In order to attain this goal, we conducted a research using content analysis of annual reports of companies from Romania listed on the Bucharest Stock Exchange as research method. Following the analysis provided, for the period before the implementation of European Directive 2014/95/EU regarding disclosure of non-financial information, we observe that companies from Romania provide a quite small amount of information on human capital. The data often provided is related to the employees' professional experience, to their knowledge and to their moral values. The aspects related to the employees' talent and education are lightly treated by companies, given that these aspects are rarely to be found among the companies' reporting preferences.
Journal: Int. J. of Economics and Accounting
Pages: 410-420
Issue: 4
Volume: 10
Year: 2021
Keywords: human capital; reporting; Romanian context; listed companies; Romania.
File-URL: http://www.inderscience.com/link.php?id=118267
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:4:p:410-420

Template-Type: ReDIF-Article 1.0
Author-Name: Mandeep Kaur
Author-X-Name-First: Mandeep
Author-X-Name-Last: Kaur
Author-Name: G.S. Bhalla
Author-X-Name-First: G.S.
Author-X-Name-Last: Bhalla
Title: Evaluating the efficiency of university departments: an application of data envelopment analysis
Abstract:
The paper aimed at examining the efficiency of academic departments within a university as efficiency estimation provides information about weaknesses and opportunities which would be helpful in further improvement. The study evaluated the efficiency of 35 academic departments within Guru Nanak Dev University for the period 2016-17. Efficiency was calculated for two samples, i.e.: 1) departments with post graduate enrolment only; 2) departments with both post graduate and undergraduate enrolment. Secondary data was collected from budgets and annual reports of the university. Data envelopment analysis was used for the purpose of analysis. Four models were built with different combinations of outputs and same number of inputs for both samples. The findings revealed that on average departments were operating at moderate level of efficiency. The findings of the study also provide information to university regulators which can be used for further improvement of academic departments. It will be helpful in decision making regarding allocation and utilisation of resources to produce outputs. The research provides application of data envelopment analysis in evaluating the efficiency of academic departments.
Journal: Int. J. of Economics and Accounting
Pages: 450-466
Issue: 4
Volume: 10
Year: 2021
Keywords: efficiency; academic departments; university; data envelopment analysis; DEA.
File-URL: http://www.inderscience.com/link.php?id=118269
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Handle: RePEc:ids:ijecac:v:10:y:2021:i:4:p:450-466