International Journal of Accounting, Auditing and Performance Evaluation (19 papers in press)

Regular Issues

• Does the market react to mandating ESG disclosure? A regression discontinuity based evidence  
  by Zelalem Abay 
  Abstract: This study examines the stock market reaction to the recently adopted European Union Directive 95/2014 on mandating certain entities to disclose non-financial information, commonly termed ESG disclosure. Owing to the cost burden of small and medium-sized enterprises, previously voluntarily disclosed information is now mandated only for large undertakings. This size-based directive provides an opportunity to apply a regression discontinuity design, the quasi-experimental research approach. Using a sample of European firms, the study finds that firms on both sides of the threshold react negatively to the directive, with an insignificant difference in these negative market reactions. These findings potentially contribute to the existing literature by documenting new evidence of size-based regulations using a unique approach, indicating that a wider market reacts negatively, irrespective of size, which the directive considered as the basis for compliance. The novelty of this study refers to the application of the unique regression discontinuity design for an event study to exploit the size-based nature of the directive.
  Keywords: ESG; non-financial disclosure; regression discontinuity design; event study, market reaction.
  
  
• Twenty years of research by Professor Khaled Hussainey: a bio-bibliometric analysis  
  by Walid Simmou, Ibrahim Sameer, Fatma Ahmed, Anas Hattabou, Samira Simmou 
  Abstract: This paper presents a unique contribution to financial and accounting research through a retrospective overview of 20 years of research by Professor Khaled Hussainey. Using a bio-bibliometric analysis, this research identified co-authors, journals, institutions, and countries associated with Professor Khaled Hussainey based on his 128 peer-reviewed papers published between January 2003 and July 2022 using the Scopus database. The thematic analysis method established major research clusters related to his contributions. During 20 years of research, Professor Khaled Hussainey produced 128 papers, totalling 2922 citations, corresponding to an average of 22.82 citations per publication. His accounting and financial management research has earned him the position of specialist subject editor for some of the most prestigious accounting and finance journals. The typical research clusters to which Professor Khaled Hussainey has contributed include: corporate disclosure (cluster 1), financial and accounting strategies (cluster 2), strategy and management practices (cluster 3), and Islamic finance (cluster 4). The findings will benefit academics by providing general insights into accounting and financial literature and critical information about Professor Khaled Hussainey that will guide future collaboration and research.
  Keywords: bibliometric analysis; Khaled Hussainey; corporate disclosure; corporate governance; thematic analysis.
  DOI: 10.1504/IJAAPE.2023.10060023
   
  
• The effect of accounting comparability and earnings commonality on analyst behaviour  
  by Tae G. Kang, Sung-Jin Park 
  Abstract: This paper examines the distinctive roles of accounting comparability and earnings commonality in shaping financial analysts’ forecasting behavior. Accounting comparability and earnings commonality stem from the similarities in a firm's underlying economics or its accounting practices. However, they influence analyst behavior differently by altering the perceived cost of obtaining and processing firm-specific information versus industry-wide earnings news for forming earnings forecasts. This study presents evidence indicating that accounting comparability and earnings commonality are positively associated with the number of analysts following, suggesting that efficiency benefits from greater comparability. However, it also reveals contrasting effects: higher earnings commonality is linked to less accurate and more dispersed earnings forecasts, whereas higher accounting comparability is associated with higher quality earnings forecasts, i.e., more accurate and less dispersed earnings forecasts.
  Keywords: accounting comparability; earnings commonality; analyst coverage; analysts’ earnings forecasts.
  DOI: 10.1504/IJAAPE.2024.10065051
   
  
• Internal audit integration with risk management: a comprehensive bibliometric analysis (19902023)  
  by Taha Ahmad Jaber, Sabarina Mohammed Shah, Mazlina Mustapha, Jalila Johari, Furman Ali 
  Abstract: This study explores the 'state-of-the-art' scientific literature related to internal audit (IA) coupled with risk management (RM) and/or enterprise risk management (ERM). It aims to identify research trends, influential articles, impactful journal sources, authors' and countries' collaborations, research areas and their integration, as well as to identify and review related themes. Additionally, it offers potential scopes for further studies in the domain. Data from Scopus and Web of Science (WOS) databases was systematically collected using targeted keywords. Systematic reviews and bibliometric analyses were conducted through the preferred reporting items for systematic reviews and meta-analyses (PRISMA) and biblioshiny methods, respectively. The findings reveal that publications related to IA coupled with RM and/or ERM began in the early 1990s and have notably expanded in the past decade. Collaborative research primarily involves two authors, with the United States of America (USA), Romania, and the United Kingdom (UK) exhibiting the highest publication numbers in the domain. Previous research has focused on interactions among four main areas, and four specific related themes have been identified.
  Keywords: bibliometric analysis; biblioshiny technique; internal audit; RM; risk management; ERM; enterprise risk management; Scopus; WOS; Web of Science.
  DOI: 10.1504/IJAAPE.2024.10066222
   
  
• The nexus between earnings management and information asymmetry: an empirical analysis based on US firm data  
  by Qazi Qureshi 
  Abstract: The study shows evidence that, even when firms use their discretion to manage earnings, they can effectively reduce information asymmetry through earnings announcements. The study provides strong empirical support for the possible causes of information asymmetry, especially earnings management, by filling the gap in the literature. It implies that earnings announcements provide enough information to the market for analysts to modify their forecasts and achieve consensus. The study's empirical analysis of the pre-COVID period reveals a larger positive link between the magnitude of earnings management and the dispersion of pre-disclosure forecasts than post-disclosure forecasts. The results suggest earnings management exacerbates information asymmetry, while information provided through financial reports minimizes post-disclosure information asymmetry and promotes consensus among analysts' forecasts. With a comparative analysis of pre- and post-disclosure information asymmetry, this study offers analysts and investors alike, to consider earnings management as an important factor in making their forecasting and investing decisions.
  Keywords: information asymmetry; analysts forecasts; earnings management; earnings announcement; accruals earnings management; real earnings management.
  DOI: 10.1504/IJAAPE.2024.10066425
   
  
• Improving audit quality through collaborative efforts understanding drivers and limiters in Kuwait  
  by Ela Tuli, Shikhar Dua, Jagan Kumar Sur 
  Abstract: This research examines the motivations for, and obstacles to, establishing a Joint Audit (JA) system in Kuwait. The research includes a survey taken by 190 people and 25 in-depth interviews with key individuals. According to the qualitative study, "auditor performance and collaboration" as well as "market confidence and cost efficiency" are two factors that contribute to the widespread use of JA. According to the research, however, "coordination difficulties and free rides" prevent its widespread use. The study found that JA laws, stricter regulations, and more open financial reporting were all required.In order to restore confidence in financial reporting, the results highlight the need for enhancements to audit quality, investor protection, and communication amongst audit firms. The limited size of the qualitative and quantitative samples used in this study may reduce the external validation. The study's limited generalizability may be attributable to its exclusive emphasis on JA practices in Kuwait.
  Keywords: joint audit; audit quality; motivations; barriers; development; Kuwait.
  DOI: 10.1504/IJAAPE.2024.10068310
   
  
• Classification shifting on annual report readability: evidence from Tunisia  
  by Wiem Dridi 
  Abstract: This paper empirically investigates the effect of classification shifting on annual reports readability. Using panel data from 2010 to 2020 comprising 529 observations of Tunisian listed firms, linear regressions are applied. The study employs McVay's (2006) expected-core-earnings model to measure the classification shifting and two readability measures, the Gunning-Fog Index and Flesch Index to examine the readability of annual reports. The Findings confirm that managers often classify operating expenses as non-operating to inflate operating income. additionally, an association between readability metrics and classification shifting, indicates that firms engaging in this practice produce more complex and less readable reports. This complexity may obscure the company's true performance and earnings management actions, which leads to an increase in incomprehensible information. As the first empirical investigation into the impact of classification shifting on annual report readability, this research contributes valuable insights into the intersection of financial reporting quality and earnings management.
  Keywords: readability; financial disclosure; classifications shifting; information quality; earnings management; core earnings.
  DOI: 10.1504/IJAAPE.2024.10068491
   
  
• Effects of auditor experience on audit fees: A cross-industry analysis based on fair value accounting  
  by Hsiao-Lun Lin, Ai-Ru Yen 
  Abstract: This study examines the cross-industry effects of auditors experience on audit fees. We focus on whether auditors experience with financial clients affects audit fees when auditing financial assets for non-financial clients. Utilising data from public companies in Taiwans nonfinancial industries, we find that audit fees are positively associated with the proportion of Level 3 financial assets held by non-financial clients. However, auditors experience in the financial industry mitigates the fee increase associated with higher proportions of Level 3 financial assets for these clients. These findings suggest that auditors can effectively leverage their financial industry experience when auditing financial assets in other industries. While prior research emphasises within-industry effects of auditors expertise, this study extends the literature by examining cross-industry impacts. Additionally, it contributes to existing studies on fair value accounting by analysing industries beyond real estate and financial sectors.
  Keywords: audit fees; financial assets; auditor experience; industry expertise; fair value accounting.
  DOI: 10.1504/IJAAPE.2025.10069787
   
  
• Do cultural differences bridge the gap between CSR and earnings quality? Evidence from civil law system before and during Covid-19 crisis  
  by Karima Lajnef, Ellouz Siwar 
  Abstract: Delving into the role of cultural dimensions within civil law systems, this work explains how these factors shape the interplay between CSR initiatives and earnings quality, particularly in the pre and post-COVID-19 crisis context. This study investigates the moderating impact of Hofstede's cultural dimensions on the association between Corporate Social Responsibility (CSR) and earnings management. Analyzing a database comprising 36,295 firm-year observations from 2,135 firms operating in civil law countries. Empirical evidence confirms that CSR initiatives effectively mitigate the utilization of earnings management techniques. Notably, the research demonstrates that cultural dimensions act as a significant moderator, influencing the relationship between CSR efforts and earnings quality. Moreover, amidst the crisis, there is a discernible shift in perspective, highlighting the pivotal advantages of CSR in terms of bolstering reputation in the post-crisis scenario. The implications of these findings extend to researchers, investors, and policymakers, offering valuable insights for informed decision-making.
  Keywords: CSR; corporate social responsibility; EM; earnings management; Hofstede cultural dimension theory; civil law system; moderating model; COVID-19 crisis.
  DOI: 10.1504/IJAAPE.2025.10070046
   
  
• Understanding the knowledge of accounting professionals on International Public Sector Accounting Standards (IPSAS) in Ghana  
  by Musah Mohammed Saeed 
  Abstract: Scholars have increasingly focused on International Public Sector Accounting Standards (IPSAS) for their benefits in enhancing transparency and accountability in public-sector financial reporting However, the challenging transition to IPSAS needs attention This study evaluates professional accountants' knowledge of IPSAS implementation in Ghana's Bono region, specifically in selected Municipal and District Assemblies (MMDAs) Data from 68 finance and account officers were collected via self-administered questionnaires, primarily through purposive sampling, and analyzed using descriptive statistics The study reveals a significant lack of IPSAS knowledge among professional accountants in the region's MMDAs, with IPSAS adoption and implementation still in the early stages Respondents also highlighted the considerable cost and complexity of transitioning to IPSAS, along with limited training opportunities and widespread ignorance about IPSAS in Ghana Recommendations include establishing a robust IPSAS compliance framework and launching a comprehensive public education campaign. This study contributes to the limited literature on IPSAS awareness in Africa.
  Keywords: background of IPSAS; public sector adoption of IPSAS; cash and accrual bases of accounting; convergence of IFRS with IPSAS; Ghana public sector accounting; contingency theory; new public management (NPM) theory.
  DOI: 10.1504/IJAAPE.2025.10070362
   
  
• Examining accountants readiness to adopt blockchain-based triple-entry accounting: evidence from the UAE  
  by Amen Abobaker, Sara Elgazzar, Silvia A. Saweris 
  Abstract: The purpose of this study is to examine accountants' readiness to adopt a blockchain-based triple-entry accounting system, aiming to offer a roadmap for its adoption across stakeholders. The data is collected from the responses of 110 UAE-based accountants through an online questionnaire, employing an extended Unified Theory of Acceptance and Use of Technology (UTAUT) model. Weighted Least Squares Regression analysis was utilized to gauge the impact of performance and effort expectancies, along with social influence, on accountants' intention to adopt the blockchain-based triple-entry accounting system. The results revealed a positive correlation between performance and effort expectancy and intention to use blockchain, while social influence showed no significant impact. Additionally, factors like job relevance, accounting information quality, trust, computer self-efficacy, and compatibility were found to influence different aspects of expectancy related to performance and effort, offering valuable insights for adoption roadmap.
  Keywords: blockchain; triple-entry accounting; adoption readiness; UTAUT model; unified theory of acceptance and use of technology model; United Arab Emirates.
  DOI: 10.1504/IJAAPE.2025.10070363
   
  
• Product market competition and audit fees: a firm-level analysis  
  by Muhammad Rofiqul Islam  
  Abstract: Empirical evidence supporting the relationship between product market competition and audit fees faces two significant criticisms. First, the industry concentration ratio remains a poor proxy for product market competition as it fails to recognize firm-level competitive variability within an industry. Second, the generalizability of prior studies is in doubt due to the sample size covering a single or a few industries. The study aims to address these two critics by using text-based measures of product market competition and choosing a large sample covering a more comprehensive range of industries. The text-based measures of product market competition assume that individual firms face unique product market competition. The study found a strong positive association between product market competition and audit fees.
  Keywords: audit fees; product market competition; fluidity index; similarity index.
  DOI: 10.1504/IJAAPE.2025.10070434
   
  
• Accounting manipulation and timeliness of financial reporting in emerging economies: evidence from Nigeria  
  by Isaac Ukarin, Sebastine Ogbaisi, Okun Omokhudu 
  Abstract: This study sought to evaluate the impact of accounting manipulation on timeliness of financial reporting in Nigeria. Data was gathered from financial statements of 75 non - financial firms listed on the NGX for 10 years (2010-2019). The generalized method of moments regression technique was used in analyzing the data. The results showed that accruals manipulation and real earnings management manipulation positively significantly impact on timeliness of financial reporting. Fraud on the other hand, has an insignificant impact on timeliness of financial reporting. The implication of this study’s finding is that, the results have established that in the presence of increases in accrual and real earnings manipulation, accounting reports can still be timely. The study recommends that the practice of manipulation by management should be carefully observed by stakeholders as it portends a clear red flag of earnings distortions and signals delayed reporting among others.
  Keywords: accounting manipulation; accruals; REM; real earnings management; fraud; timeliness of financial reporting.
  DOI: 10.1504/IJAAPE.2025.10071405
   
  
• ESG audit quality, transparency, and profitability expectations  
  by Olga Chara Pavlopoulou, Afroditi Papadaki 
  Abstract: Analysing a global sample of listed firms from 38 markets during 20022018, this study offers empirical evidence of a negative association between the environmental, social, and governance (ESG) performance of the firm and its leading profitability. The separate investigation of the impact of ESG performance on leading revenues and operating expenses reveals that an improvement in the ESG performance will increase both revenues and expenses with an enhanced effect on the latter. The empirical results indicate that the negative ESGprofitability association is mitigated for firms of higher ESGrelated audit quality and in corporate environments that encourage information transparency. Financial analysts incorporate the implications of ESG performance into their forecasts, particularly in common law markets. Nonetheless, the analysts exhibit an over-reaction to this negative association pointing towards conservatism and under-react to the mitigating effects of ESGrelated audit quality and corporate transparency.
  Keywords: ESG scores; firm profitability; analyst forecasts; ESG audit quality; business ethics policies; transparency.
  DOI: 10.1504/IJAAPE.2025.10071653
   
  
• Impact of CEOs' pay structures on earnings management in a low-incentive environment: empirical evidence from Sweden  
  by Olga Golubeva, Rikard Carlström Söderberg, Carl Jansson, Erik Toris 
  Abstract: Research literature suggests that the implementation of long-term incentive plans (LTIPs), as opposed to short-term incentive plans (STIPs), can reduce earnings management (EM). Previous studies have considered high-incentive environments where variable pay is a substantial part of the Chief Executive Officer’s (CEO) remuneration. This paper investigates the impact of STIPs and LTIPs on EM within a Swedish low-incentive environment where executives’ remuneration packages contain a lower degree of variable pay. The study uses the Modified Jones model and utilises data on CEO pay structure collected from 119 companies listed on the Nasdaq Stockholm stock exchange. Compared to earlier research, the article reports a positive relationship between EM and LTIPs and finds a significant difference in variable pay between firms using LTIPs and firms applying only STIPs. The article offers new evidence that, despite the adoption of LTIPs by firms, a high variable pay can generate stronger incentives for EM.
  Keywords: earnings management; Modified Jones model; long-term incentive plans; short-term incentive plans; variable pay; Chief Executive Officer’s remuneration; low-incentive environment.
  DOI: 10.1504/IJAAPE.2025.10072062
   
  
• Survey on mobile money fraud prevalence in Ghana  
  by Selorm Kofi Tagbo, Felix Adebayo Adekoya, Patrick Kwabena Mensah, Peter Nimbe, Vivian Akoto-Adjepong, Mighty Ayidzoe 
  Abstract: This study seeks to investigate the prevalence of mobile money fraud in Ghana. The survey examined social engineers' prime target and the most used communication channel to perpetrate this fraudulent activity. The objective is to identify the vulnerabilities in transacting business on mobile money platforms. A comprehensive mixed methodology was employed, collecting data using a structured questionnaire. To ascertain whether most mobile money fraud cases are caused by social engineering attacks in the country, mobile money users from various regions were sampled and then contacted to complete the survey instrument in three phases. It was revealed that most of such fraud cases emanate from social engineering attacks. Again, the results showed that mobile money customers are more susceptible to these fraud attacks as compared to agents, and officials of service providers. Findings from the research also disclosed that social engineers predominantly use telephone calls to exploit their victims in Ghana.
  Keywords: mobile money fraud; social engineering; cross-border fraud; financial fraud detection; cyber security; SIM; subscriber identity module.
  DOI: 10.1504/IJAAPE.2025.10072901
   
  
• What about the firm's exposure to climate risk? Balancing carbon performance and tax avoidance practices  
  by Safa Gaaya, Mouna Hamza, Faten Lakhal 
  Abstract: As companies strive to demonstrate their environmental responsibility, questions arise about the potential impact of such green initiatives on their financial strategies, especially when dealing with tax savings. This paper examines the association between a firm's carbon performance and tax avoidance. It also sheds new light on the role of climate risk exposure on this relationship. Based on a sample of US firms from 2005 to 2021, our finding reveals that firms with stronger carbon performance are less likely to engage in tax avoidance, suggesting that firms that prioritize reducing their carbon footprint are also committed to maintaining compliance with tax regulations, supporting the stakeholder perspective. The results also document that the negative association between carbon performance and tax avoidance holds only during lower climate risk exposure, suggesting that under heightened climate exposure companies focus on climate-related concerns, making tax avoidance a lower priority. Additional evidence reveals that high-polluting firms are more incentivized to enhance carbon performance to respond to institutional pressure, leading to lower tax avoidance levels.
  Keywords: carbon performance; tax avoidance; climate risk; stakeholder theory; legitimacy.
  DOI: 10.1504/IJAAPE.2025.10072987
   
  
• The contribution of regulated and voluntary disclosure to financial performance: the case of CSE listed companies.  
  by Hassan Aachaach, Abderrahim Zghaida, Omar Kharbouch 
  Abstract: The growing complexity of global financial markets, amplified by digital transformation, has heightened the demand for transparent financial reporting. This paper investigates how financial and non-financial disclosures both regulatory and voluntary affect the financial performance of listed companies in African markets, with a focus on Casablanca. Based on a survey of 203 individual and institutional investors, the research uses partial least squares structural equation modelling (PLS-SEM) to analyse the data. Model reliability is confirmed through composite reliability (CR) and average variance extracted (AVE) metrics, followed by descriptive statistics. Findings reveal that trust plays a key mediating role between financial disclosures and firm performance, while perceived risk moderates this relationship. The results highlight the strategic importance of financial communication in shaping investor confidence and enhancing corporate transparency. This study offers valuable insights for regulators and managers aiming to improve disclosure practices and strengthen financial market efficiency in emerging economies.
  Keywords: financial information; mandatory disclosure; voluntary disclosure; trust; financial performance.
  DOI: 10.1504/IJAAPE.2025.10073192
   
  

Special Issue on: Accounting, Auditing, Governance and Performance Evaluation in Times of Crisis

• Are environmentally friendly firms more vulnerable to the Russia-Ukraine crisis?  
  by Wajih Abbassi, Sabri Boubaker, Riadh Manita, Dharen Kumar Pandey 
  Abstract: This paper applies an event study approach to assess the effect of the Russia-Ukraine crisis on environmentally friendly firms. Using a sample of 1206 firms from the S&P Global 1200 index covered from 6 January 2021, to 8 March 2022, we find that, ceteris paribus, cumulative abnormal returns are significantly related to the environment score. While the environmental scores positively affect the pre-event window CARs, firms with higher environmental scores are more detrimentally affected during the Russia-Ukraine war. This can be attributed to the expected increase in post-war compliance costs for these firms, given the detrimental effects of the war on the environment. This study contributes to the literature by showing that firms with high environmental scores are not necessarily more resilient to war shock events than those with environmental concerns and by providing empirical evidence regarding firm-specific characteristics that drive event-induced returns, indicating that risks may be diversified based on firm and industry characteristics. This study has policy implications because, while it shows that a high environmental score does not necessarily make a firm more resilient, it sheds light on firm-specific characteristics that drive war event-induced returns.
  Keywords: Russia-Ukraine crisis; environmental score; event study; market model; book-to-market.