Forthcoming articles

International Journal of Accounting, Auditing and Performance Evaluation

International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE)

These articles have been peer-reviewed and accepted for publication 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 Articles will not be published until the final proofs are validated by their authors.

Forthcoming articles must be purchased for the purposes of research, teaching and private study only. These articles can be cited using the expression "in press". For example: Smith, J. (in press). Article Title. Journal Title.

Articles marked with this shopping trolley icon are available for purchase - click on the icon to send an email request to purchase.

Register for our alerting service, which notifies you by email when new issues are published online.

Open AccessArticles marked with this Open Access icon are freely available and openly accessible to all without any restriction except the ones stated in their respective CC licenses.
We also offer which provide timely updates of tables of contents, newly published articles and calls for papers.

International Journal of Accounting, Auditing and Performance Evaluation (6 papers in press)

Regular Issues

  • Capital structure and earnings management: evidence from recent French corporate governance context   Order a copy of this article
    by Sana Triki Damak, Salah Ben Hamad 
    Abstract: The aim of this research is to show how the capital structure policy is affected by earnings management and corporate governance characteristics. This study is performed on a sample of SBF 120 listed companies over the period 2009-2014. Raman and Shahrur's (2008) model is used for calculation of discretionary accruals. Using two fixed-effects models, we confirm the significant relationship between earnings management and capital structure. Also, we find significant relationships between capital structure and some board of directors characteristics, such as size, independence and CEO duality. Finally, we find significant influence of institutional participation and profitability on capital structure policy. These findings add new evidence to the existing literature about capital structure determinants and provide a confirmation of the significant effects of both earnings management and board of directors characteristics on the company's debt level.
    Keywords: earnings management; capital structure; board of directors’ characteristics.

  • Do comparable accounting choices produce comparable net profit and equity? Integrating the Gray's and Herfindahl H indices in measuring the comparability of Brazilian companies   Order a copy of this article
    by Sirlei Lemes, Luciana Santos 
    Abstract: The objective of this study was to determine whether industries with high comparability in 2009 net profit and equity also made comparable accounting choices in the adoption of IFRS 2010 in Brazil. The sample consisted of 65 companies listed on BM&FBOVESPA. Eight items were identified to measure fair value and net realizsable value. Comparability was measured for 11 industries using the Grays and Herfindahl H indices. The three measurements showed that none of the industries achieved high or material comparability. We found that adopting IFRS did not increase the comparability of Brazilian companies at first, nor did the comparability of figures in 2009 lead to lower dispersion of the policies adopted in 2010. Despite advances in IASB convergence, substantial comparability problems remain, even within the same country.
    Keywords: comparability; IFRS; convergence; accounting choice; H index; Herfindahl index; Gray’s index; fair value; Brazilian companies; BM&FBOVESPA; national differences.

  • Audit committee financial expertise and RPT-conflict disclosure: insight evidence from Malaysia   Order a copy of this article
    by Mohd Mohid Rahmat, Nurhidayah Nordin, Syaima’ Adznan 
    Abstract: The purpose of this study is to examine the association between having more financial experts in an audit committee and RPT-conflict disclosure among listed firms in Malaysia. This study also examines whether the audit committee's full independent and financial experts' activeness could enhance the financial experts ability to review RPT-conflicts. This study used 1,912 data observations from 478 listed firms in Bursa Malaysia for the financial years 2011 to 2014. Our results show that having more financial experts (ACFE) as members in the audit committee is significantly associated with RPT-conflict disclosure. The audit committee's independence also slightly enhances the effectiveness of financial experts to review RPT-conflict. However, we only found weak evidence to show that financial experts' activeness increased RPT-conflict disclosure. The findings recommend a premise to have more financial experts as members in the audit committee, and full independence in interaction with the audit committee enhances the audit committee's effectiveness, specifically in reviewing RPT-conflict.
    Keywords: audit committee; financial expertise; related party transactions; audit committee independence; attended meeting frequency.

  • Association between managerial stock ownership and firm efficiency   Order a copy of this article
    by Ju Ryum Chung, Moon-Kyung Cho, Ho-Young Lee 
    Abstract: This study examines how firm efficiency varies according to managerial ownership. Prior studies on how managerial ownership affects firm value provide inconsistent results. Although firm value is determined by various factors, this study tries to directly link managerial ownership to operating efficiency. It finds evidence consistent with the incentive alignment hypothesis: managerial ownership is positively associated with firm efficiency. It also finds that foreign investors enhance the association between managerial ownership and firm efficiency, whereas an affiliation with large business conglomerates in Korea (chaebols) lowers this association. It contributes to the existing literature by linking managerial ownership to firm efficiency, which we believe is an underlying indicator of the effect of managerial ownership on managers behavior in alignment/misalignment with firm value. It also helps interested parties better understand the dynamic roles among management and foreign ownership, and chaebols.
    Keywords: managerial ownership; firm efficiency; foreign shareholder ownership; chaebol; data envelopment analysis.

  • Earnings quality and external governance on banks: empirical evidence in the European context   Order a copy of this article
    by Costanza Di Fabio 
    Abstract: This paper examines the relationship between external governance exerted by the national supervision and bank earnings quality. Supervisory strictness and independence as well as stringency of capital regulation are expected to increase banks earnings quality, and specifically earnings persistence and cash flow predictability. To test the predictions, multivariate regressions are carried out on a panel dataset of 4,443 bank-year observations from the European Union across the 2005-2014 timeframe. The findings extend the research on the role of institutional factors in affecting banks earnings quality remarking the positive effects of strong external governance on the quality of bank financial information. Specifically, results show that higher supervisory power, independence and greater stringency of capital regulation are associated to the higher persistence of reported earnings. Additionally, banks under strict supervisory regimes, independent authorities and stricter capital regulation exhibit earnings that are better predictors of future cash flows. Moreover, the paper enlarges the scope of investigation of the effects of supervisory styles on banks accounting behaviours by exploring the role of supervisory independence. The results have policy implications for the ongoing European debate concerning advantages and disadvantages of the new Single Supervisory Mechanisms, with specific reference to the influence of the national authorities characteristics on bank transparency. The findings suggest indeed to adequately consider the effects of national supervisory styles on accounting quality.
    Keywords: earnings quality; earnings persistence; banks; external governance; national supervision; European Union.

  • Effects of mandatory adoption of IFRS on market liquidity in Brazil   Order a copy of this article
    by Ricardo Luiz Menezes Silva, Paula C. C. Nardi 
    Abstract: The mandatory IFRS adoption extends to all companies listed on the stock exchange in Brazil. Some advocate that the quality of financial statements under IFRS is superior, providing many benefits to market participants, such as increased stock liquidity. Liquidity has been less explored in Brazil though, representing a research opportunity without the influence of confounding events. Therefore, the aim of this study was to analyse the effects of mandatory IFRS adoption on stock liquidity in Brazil. The findings confirm the research hypothesis, indicating that the mandatory adoption is not associated with increased stock liquidity. These results can be explained by the limited disclosure incentives. In addition, no change was found in terms of reporting enforcement. Our findings show that the international regulator still faces challenges due to cultural and institutional aspects. The lack of an international regulator casts doubts on greater uniformity in the application of IFRS.
    Keywords: adoption of IFRS; liquidity; Brazil.