Forthcoming articles


International Journal of Accounting and Finance


These articles have been peer-reviewed and accepted for publication in IJAF, but are pending final changes, are not yet published and may not appear here in their final order of publication until they are assigned to issues. Therefore, the content conforms to our standards but the presentation (e.g. typesetting and proof-reading) is not necessarily up to the Inderscience standard. Additionally, titles, authors, abstracts and keywords may change before publication. Articles will not be published until the final proofs are validated by their authors.


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International Journal of Accounting and Finance (8 papers in press)


Regular Issues


  • The SysTrusts framework implementation as an internal control for assuring reliability of AIS and business performance: an integrated approach   Order a copy of this article
    by Ahmed Al-dmour 
    Abstract: This study aims to examine and validate the impact of the implementation of SysTrusts framework (principles and criteria) as an internal control method for assuring reliability of Accounting Information System (AIS) on the business performance via the mediating role of the quality of financial reporting among Jordanian public listed companies Based on the literature review and contingency theory; an integrated conceptual framework was developed to guide this study. The studys conceptual framework consists of three major constructs: The SysTrusts service framework (availability, security, integrity processing, confidentiality, and privacy), the business performance (financial and non-financial indicators) and the quality of financial reporting which was conceptualized using the IASBs framework fundamental qualitative characteristics (2010). Data were collected on these main constructs and related influential constructs from 239 accounting and auditing directors in PLCs in Amman stock market (2016). Structural equation modeling was used to test the relationships simultaneously and to understand the predictive behavior of the various attributes. First, the results revealed a strong relationship between the SysTrusts framework implementation (for assuring the reliability of AIS) and the business performance which is partially mediated by financial reporting quality i.e., the qualitative characteristics of financial reporting. Second, the results showed a strong relationship between the quality of financial reporting and both business performance indicators (financial and non-financial). Third, the structural model allow us to identify and validate the direct effect of the SysTrusts framework implementation as an internal control for assuring the reliability of AIS on both business performance indicators (financial and non-financial) and the quality of financial reporting. Therefore, better understanding of the influence of SysTrusts framework principles upon the business performance and the quality of financial reporting should be viewed as whole object rather than isolated fragments. These findings provide key insight into the importance of the SysTrusts framework implementation (principles and criteria) as an internal control for assuring the reliability of AIS as well as the importance of the qualitative characteristics of the financial reporting and the business performance.
    Keywords: internal control; reliability of AIS; financial reporting quality and business performance.

  • Corporate governance practices and foreign direct investment: the case of Nigerian listed companies   Order a copy of this article
    by Oyerogba Ezekiel Oluwagbemiga 
    Abstract: This paper investigates the relationship between corporate governance practices and foreign direct investment on a sample of 186 listed companies in Nigeria for a period of six years from 2008-2010 and 2012-2014. The two distinct periods represent the pre and post corporate governance review periods in Nigeria. The study commenced with the measurement of corporate governance quality through construction of corporate governance index from the publicly disclosed information in financial statements. Foreign direct investment data was obtained by calculating the percentage of the share holds by the foreign investors (Institutions and Individuals) on the total quoted share for each of the listed company in Nigeria. The data were subjected to various statistical analysis such as descriptive statistic, univariate t-statistics and multivariate regression analysis. The findings of this study revealed that corporate governance have significant impact on the inflow of foreign direct investment into the Nigeria stock market. Therefore, the policy implication of these findings is that listed companies in Nigeria need an improvement on their corporate governance practices to attract more funds from foreign investors into the Nigeria economy.
    Keywords: corporate governance practices; board independence; ownership structure; shareholder’s protection; disclosure and transparency; earnings per share.

  • Does ownership structure matter to public listed firms? Review on the corporate governance and involuntary delisting practices   Order a copy of this article
    by Kimiya Akbarpoursokeh 
    Abstract: This paper proposes a conceptual framework and investigates the ownership structure on involuntary delisting. To build the conceptual framework as a guide to reduce involuntary delisting through decreasing agency costs, protecting shareholders rights, the background of governance practices and agency theory utilized. By developing a deeper understanding of the relationship between ownership structure on involuntary delisting, evidence from preceding studies suggested that this structure is of main importance in corporate governance because it determines the motivations of managers to control the agency problem. Since the impact of corporate governance mechanisms in each country is depend on especial conditions; therefore, the mixed results for each of its factors are seen in literature; but majority of researchers are consistent with higher institutional ownership, ownership concentration, managerial ownership, CEO ownership, foreign ownership, free float ratio, and family ownership and lower state ownership have a significant negative impact on the probability of involuntary delisting.
    Keywords: corporate governance mechanisms; ownership structure; institutional ownership; ownership concentration; managerial ownership; CEO ownership; foreign ownership; free float ratio; state ownership; involuntary delisting.

  • Interest rate effectiveness in era of quantitative easing in Euro Market   Order a copy of this article
    by Martin Pazicky 
    Abstract: In this paper, an attempt is made to evaluate the relationship between interest rate and inflation. Due to the fact that interest rate is a key conventional instrument of monetary authorities to manage inflation in the economy, attention is paid to demonstrating the power of interest rate as a monetary instrument. The effectiveness of interest rate is seriously compromised in the light of ultra-easy monetary policy adopted by the majority central banks around the globe. The aim of the thesis is to define the principles influencing the price level in the real economy of euro area, focusing on the interest rate. The minority aim of this paper is to define other instruments that affect inflation. Emphasis is placed on the long-term and short-term relationship between interest rate and euro area inflation. Based on the test for cointegration between interest rate and inflation, no long-term relationship has been documented between given variables. The vector-autoregressive model (VAR) indicates a certain level of inflation response to changes in the short-term interest rate, but the response is not sustainable. Finding a suitable econometric inflation model is an essential part of this paper. Various profound econometric models, such as ARMA, ADL, or VAR models, that illustrate the relationship between inflation and short-term interest rate, are executed.
    Keywords: inflation; interest rate; central bank; monetary policy.

  • Impression management using graphical resources in Brazilian company reports   Order a copy of this article
    by Keylla Silva, Fernanda Rodrigues, CESAR SILVA 
    Abstract: The aim of this study is to investigate the evidence of impression management in the form of selectivity or improved presentation in the graphs and charts used by companies. We analysed the reports of 180 Brazilian companies from the period between 1997 and 2014. The variables tested were: company size, profitability, age, variation in results, report size, and publication period. The results indicated that there is a significantly positive relationship between financial performance and the total amount of graphs and charts, graphs and charts with key financial information (net income, net revenue and dividends) and those improving or enhancing presentation. This is a sign of impression management in the reports analysed. We found a relationship with the companys age and that in the initial years of the analysis period the companies used fewer graphs and charts to disclose financial information in their reports.
    Keywords: management report; impression management; graphical resources; selectivity; improved presentation; enhancement; Brazil; key financial information; financial performance; manipulation.

  • Explaining the functional orientation of the budget: a survey of Swedish organisations   Order a copy of this article
    by Sven-Olof Collin, Timurs Umans, Kristian Lindqvist, Kristian Tjörnebrant 
    Abstract: The paper presents a congruence model where factors belonging to the environment, to the corporation, and to the management control system of the corporation are expected to influence the functional emphasis put on the budget, i.e. the functions of coordination, responsibility and evaluation. Through a test performed on 111 Swedish corporations, we find indications that the budget is very much alive; it appears to focus more on dealing with external situations than with internal characteristics; and it appears to be part of the formalisation of the organisation. We draw these conclusions based on our findings that suggest that the budget is being used mainly as a coordinative device, and less as an instrument for evaluating actions.
    Keywords: budget; Sweden; functional emphasis; congruence model.

  • Flipping activity in the Malaysian IPO market: a new explanation from the winners curse perspective   Order a copy of this article
    by Norliza Che Yahya, Ruzita Abdul Rahim, Rasidah Mohd Rashid 
    Abstract: This study examines the influence of the winners' curse phenomenon on flipping activity through a winners curse measurement proposed in Amihud et al. (2003). The study defines winners curse using allocation rate (ALLOCj), which is as the natural log of the reciprocal of investor demand or oversubscription ratio. In this view, the presence of winners curse in an IPO market leads to high flipping activities, indicating that new IPO subscribers are not willing to retain the allocated IPOs for the longer term. However, from another view, where high ALLOCj could also reflect IPOs with low demand, the immediate trading activity by the new subscribers is not possible, thus low flipping activities are produced. Using a sample of 381 IPOs issued in Bursa Malaysia from January 2000 until December 2013, cross-sectional multiple regression analyses results show that ALLOCj relates significantly and negatively to flipping activity. The significant relationship supports the view that uninformed investors are more likely to win big IPOs which are not demanded by the informed investors. Therefore, the lower demanded IPOs produce low flipping activities.
    Keywords: flipping activity; winners’ curse; initial public offerings; Malaysian IPO market.

  • Valuation of a risk-averse investor under incomplete information   Order a copy of this article
    by Kazuhiro Takino, Yoshikazu Ishinagi 
    Abstract: In this study, we provide a firm valuation rule under incomplete information. Incomplete information here means that investors have not been informed of the true expected return of business cash flows. We describe incomplete information using the filtering theory. We evaluate the firm value under incomplete information with a utility-based valuation rule. The utility-based rule reflects the risk aversion of investors in firm value. We also verify the relation between the quality of information and firm value using sensitivity analysis. This examination indirectly relates the quality of information and cost of capital for the firm. Furthermore, we examine the firm value using the Discount Cash Flow (DCF) method as an example of risk-neutral valuation approaches. By comparing the results of DCF valuation, we describe how a risk-averse investor evaluates the firm under the incomplete information environment.
    Keywords: valuation; utility indifference pricing; incomplete information.