American J. of Finance and Accounting (4 papers in press)

Regular Issues

• Does sustainability payoff? Exploring the influence of corporate sustainability on the financial performance of non-financial Indian companies  
  by K.P. Sabirali, S. Mahalakshmi, Jyoti Ranjan Sahoo 
  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.
  Keywords: corporate sustainability; financial performance; ESG; environmental; social; and governance; panel data analysis.
  DOI: 10.1504/AJFA.2025.10070536
   
  
• The comparability effects of principles based standards  
  by David Cabán 
  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.
  Keywords: principles-based accounting; rules-based accounting; financial statement comparability; analyst coverage; ASC606.
  DOI: 10.1504/AJFA.2025.10068723
   
  
• Analysing the determinants of technical efficiency in major Chinese retail firms: a bootstrap data envelopment analysis (DEA) and truncated regression approach  
  by Oswin Aganda Anaba, Benjamin Azembila Asunka, Dawuda Abudu, Obed Dalad Mba, Edmund Nana Kwame Nkrumah 
  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.
  Keywords: retail enterprises; bootstrap; DEA; data envelopment analysis; truncated regression; technical efficiency; determinants; SMEs; large enterprises; department shops; china.
  DOI: 10.1504/AJFA.2025.10070537
   
  
• Fraudulent accounting: an inquiry into earnings manipulation in industrial sectors of South Asia  
  by Brishti Chakraborty 
  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.
  Keywords: financial fraud; detection; Beneish M-score model; manipulation; South Asia.
  DOI: 10.1504/AJFA.2025.10070649