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

Regular Issues

• 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
   
  
• 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
   
  
• 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
   
  
• 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
   
  
• Converged IFRS 10 and value relevance of consolidated financial statements in emerging market: role of ownership structure and audit quality  
  by Santosh Dutta, Manish Bansal 
  Abstract: The paper investigates how converged IFRS10 (Ind.AS110) affects the value relevance of consolidated financial statements (CFS) in Indias emerging market and how ownership structure and audit quality impact this relationship as consolidation post-Ind.AS110 relies on professional judgement. Using the difference-in-difference technique and fixed effect panel data regression on 5550 firm-years, the findings suggest post-Ind.AS110, the value relevance of consolidated book value per share (CBVPS) has increased, whereas consolidated earnings per share (CEPS) have decreased indicating reduced creative accounting at balance sheet level. Nevertheless, family ownership positively impacts CBVPS and CEPS under Ind.AS110 supporting alignment theory. Furthermore, higher audit quality amplifies the value relevance of CEPS and CBVPS, indicating the benefit of enforcement rights and principle-based judgement. Results remain robust under two-stage least squares and generalised methods of moments. Policymakers, family firms, and investors should consider these factors in regulating consolidation practices, and strategic decision-making.
  Keywords: IFRS 10; Ind. AS110; DiD; difference-in-differences; Ohlson model; value relevance; emerging markets.
  DOI: 10.1504/IJAAPE.2025.10074874
   
  
• Trends and challenges in key audit matters research: a bibliometric analysis  
  by Patriandari Patriandari, Agus Ismaya Hasanudin, Helmi Yazid, Ewing Yuvisa Ibrani 
  Abstract: Key audit matters (KAM) enhance the quality and transparency of financial reporting by revealing the most substantial and complex audit areas. Understanding KAM trends and challenges is important for auditors, regulators, and stakeholders. This study uses bibliometric analysis to analyse scientific literature on KAM research. Data were extracted from Google Scholar using Publish or Perish, comprising 120 documents, and processed in VOSviewer to map citation networks, keyword frequencies, and author collaboration patterns. The analysis found dominant themes in KAM literature, including audit quality, auditor responsibility, and ease of understanding audit issues. Network visualisation also highlighted the relationship between KAM and audit practices, corporate governance, and the COVID-19 pandemic. This study adds to the intellectual map and global development of KAM research, not only helping academics identify future research needs but also providing practical guidance for auditors and regulators in improving the effectiveness of audit communication.
  Keywords: KAM; key audit matter; trend; challenges; bibliometric.
  DOI: 10.1504/IJAAPE.2025.10075431
   
  
• Earnings management around mergers and acquisitions: A bibliometric review and research agenda  
  by Diksha Lalwani, Sonali Jain, Juhi Raghuvanshi 
  Abstract: This study presents a bibliometric analysis of 256 articles retrieved from Scopus to identify emerging themes and propose future research directions on earnings management in the context of mergers and acquisitions. Using performance analysis and science-mapping techniques, it highlights the most prolific authors, journals, institutions, and countries. The most influential journal identified is the Journal of Business Finance and Accounting, while the United States emerges as the most productive country in the field. The findings highlight key themes, including accrual and real earnings management, compromised earnings quality, the role of corporate governance, external monitoring and auditing in constraining manipulation, and the impact of earnings management on deal characteristics and firm outcomes. The analysis also shows that institutional differences and weaker regulatory environments increase the likelihood of manipulation around such strategic events. The findings emphasise the role of governance mechanisms in curbing such practices and may substantiate amendments to accounting standards.
  Keywords: earnings management; mergers and acquisitions; corporate governance; bibliometrics; Scopus; VOS viewer.
  DOI: 10.1504/IJAAPE.2026.10075799
   
  
• How does tax avoidance influence dividend payout policy? The role of financial constraints  
  by Mhamed Ben Slimane, Faten Lakhal, Habiba Ladhari 
  Abstract: This paper aims to explore for the first time the effect of tax avoidance activities on dividend payout policy. It also investigates whether financial constraints shape this relationship. Based on a sample of 3,732 firm-year observations in France from 2009 to 2020, the results show that tax avoidance negatively affects dividend payout suggesting that managers extract private benefits from tax savings and reduce the amount of dividend distributed to shareholders. We also find that the negative relation between tax avoidance and dividend payout is more prevalent in financially constrained firms Further evidence shows that this negative effect is mitigated in presence of highly competitive pressures. It also shows that there is a non-linear relationship between tax avoidance and dividend payout suggesting that beyond a threshold, the relationship turns positive, highlighting how managerial decisions can shape the distribution of profits within a firm based on tax avoidance activities.
  Keywords: tax avoidance; dividend payout; financial constraints; product market competition; non-linear effect.
  DOI: 10.1504/IJAAPE.2025.10076304
   
  
• Do regulatory changes on the taxable income trigger earnings management practices? Evidence from Greece.  
  by Panagiotis Chronopoulos 
  Abstract: In 2014, the Greek government enforced new corporate income tax law. The new regulation introduced several changes which focused on the calculation of the taxable income, rather on the applicable tax rate. Specifically, new tax treatment for the corporate revenues and the expenses to be exempted, was established. Treating 2014 as the cut off year, we examine the earnings management implications of the newly introduced changes on the taxable income calculation. Our results present that tax law changes on the first component of tax expense, i.e., taxable income, trigger earnings management practices. We find that firms managed their earnings downwards in the priorenforcement year. Furthermore, tests on disaggregated accruals and on the revenues-expenses relation (matching-principle), present a direct link between specific earnings management practices and the corporate transactions amended. Our results remain significant after several robustness test.
  Keywords: tax reform; earnings management; earnings quality; taxable income; tax rate.
  DOI: 10.1504/IJAAPE.2025.10076409
   
  
• From competence to control: the impact of auditor digital expertise in tech-driven audits  
  by Muhammad Qasim, Qurat-ul-ain Abro, Azhar Hussain 
  Abstract: Research suggests digital technologies can raise audit quality by expanding what auditors can see and test. We argue that the benefit of digital auditing depends on auditors digital expertise and on the organisational conditions that let that expertise operate through data integrity. We assembled multi-source dataset for 418 listed firms in China, linking a survey auditors (about seven per firm) to archival measures. We derived auditors digital expertise from annual reports using textual analytics, measured internal control quality from Dibo database, and drew firm controls from China Stock Market and Accounting Research (CSMAR). Results showed that, First, auditors digital expertise is positively associated with internal control quality. Second, data integrity enable more reliable control evaluation. Third, the association is stronger when organisational readiness is high. The findings reframe digital auditing around individual capability, by highlighting how auditors digital capabilities and organisational context jointly enhance audit quality and control effectiveness.
  Keywords: internal control quality; data integrity; auditors' digital expertise; organisational readiness.
  DOI: 10.1504/IJAAPE.2025.10077515
   
  
• Evaluating factors influencing big data analytics adoption by Indian management accountants deploying analytical hierarchical process  
  by Vitin Kumar, Vinod K. Singh 
  Abstract: This study empirically explores and rank the factors influencing big data analytics (BDA) adoption by Indian professional management accountants utilising analytic hierarchy process (AHP). Based on the extensive literature review, the critical factors hindering BDA adoption in management accounting work practices were extracted and categorised into technology-organisation-environment and behavioural category (TOEB). These factors were ranked on the basis of their relative importance by ten management accountants having expertise to the subject domain. Environment is the most influential category, followed by technology, behaviour and organisation as per experts’ ranking. The five most critical factors for BDA adoption by Indian professional management accountants are intention to use, government regulations, complexity, IT expertise and big data integration. Mathematically tested results of this qualitative work will provide critical inputs to industry, practitioners, managers, management accountants, governments, professional and academic institutions for devising the appropriate strategies for wider BDA adoption in the management accounting.
  Keywords: big data analytics; multicriteria methods; management accountants; prioritisation.
  DOI: 10.1504/IJAAPE.2025.10077900
   
  
• Digital control and social media presence: a study of earnings management  
  by Assawer Elaoud 
  Abstract: This study examines how digital control mechanisms mitigate earnings management and evaluates the influence of social media presence on managerial behaviour. Analysing a sample of STOXX Europe 600 firms across various countries and sectors, the research assesses the impact of digital governance and online visibility on financial reporting quality. The findings show that digital control reduces information asymmetry and limits opportunistic behaviour. Higher website traffic and document downloads are associated with lower earnings management, highlighting the role of digital disclosure in enhancing transparency. Additionally, managers visibility on social media is negatively related to opportunistic practices, while auditor presence on these platforms shows no significant effect. The study provides practical implications for investors and regulators aiming to improve financial reporting quality and strengthen corporate transparency.
  Keywords: digital control; social media; earnings management; managerial opportunism; information asymmetry; external audit; accounting information; discretionary accruals.
  DOI: 10.1504/IJAAPE.2026.10078369
   
  
• Strategising through crisis: the role of management accounting practices in Qatars healthcare sector during COVID-19  
  by Alhanoof Alseari, Husam Aldamen, Osama Mah'd 
  Abstract: This study explores the strategic role of management accounting practices (MAPs) during the COVID-19 crisis within Qatar's healthcare sector. It examines how MAPs interacted with key business processes (BPs), namely clinical services, human resources, and supply chain management, to support crisis response. The study utilizes qualitative analysis through semi-structured interviews and secondary data from Hamad Medical Corporation. The results indicate that MAPs significantly supported decision-making, enhanced resource allocation, and improved operational adaptability amidst the pandemic. Furthermore, the findings highlight the importance of strategic MAP integration in crisis management. The study offers practitioners and policymakers with important insights into the necessary tools, resources, and capabilities that may be used to successfully foresee and react to the crises.
  Keywords: management accounting practices; business processes; Covid-19; health sector.
  DOI: 10.1504/IJAAPE.2025.10078645
   
  
• The effect of managerial ability on firms' default risk and the mediating role of firms' performance  
  by Halim Dabbou, Riadh Ghenima, Nessrine Lassoued 
  Abstract: The objective of this study is to examine whether managerial ability reduces the probability of corporate default and whether this relationship is mediated by firm performance. The empirical findings are derived from a sample of 229 US firms and 2,519 firm-year observations. The results indicate that higher managerial ability is associated with a lower likelihood of default. Furthermore, our findings suggest that managerial ability positively and significantly affects firm performance. Based on Baron and Kenny’s (1986) approach, we found a complete mediation, indicating that competent managers can control their firm’s default risk solely by improving the firm’s performance. The Sobel test confirms these results. However, in times of crisis, the mediation becomes partial, suggesting that competent managers also manage risks more effectively, thereby reducing the probability of corporate default. Our study confirms the importance of managerial skills, particularly during periods of crisis.
  Keywords: managerial ability; default probability; Merton model; firm performance; mediating variable.
  DOI: 10.1504/IJAAPE.2025.10079229
   
  
• Financial reporting quality and investment efficiency in emerging economies: evidence from India  
  by Asif Mushta Syed, Mohi-ud-Din Sangmi 
  Abstract: Investment efficiency is vital for firms as it guarantees optimal resource allocation, enabling investments in value-enhancing projects while preventing wasteful over- or under-investment, thereby maximizing shareholder value. Theoretically, high-quality financial reporting is expected to enhance investment efficiency by reducing information asymmetry, which in turn mitigates adverse selection and moral hazard, thereby lowering external financing costs and improving firm’s investment decisions. This study investigated the impact of financial reporting quality (FRQ) on investment efficiency among Indian firms, using a sample of 293 companies listed on the Bombay Stock Exchange (BSE) from 2011 to 2023. However, our empirical analysis reveals no significant relationship between FRQ and investment efficiency in the Indian context. These null findings are theoretically meaningful, suggesting important boundary conditions for the effectiveness of financial reporting as a governance mechanism in emerging markets. Despite positive coefficients for FRQ proxies, none of these relationships achieve statistical significance, highlighting the complexities of the Indian market where factors such as a unique regulatory environment, distinct investor behaviors, weak investor protection, and high ownership concentration may limit the effectiveness of FRQ as the role of accounting information in monitoring managerial actions becomes constrained, further diminishing its expected impact on investment efficiency. This study sheds light on the complexities of financial reporting quality in emerging markets, highlighting that contextual factors may significantly impact its effectiveness on investment efficiency.
  Keywords: FRQ; financial reporting quality; investment efficiency; information asymmetry; emerging markets; Indian firms; India; boundary conditions.
  DOI: 10.1504/IJAAPE.2026.10079330