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 Articles will not be published until the final proofs are validated by their authors.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.
International Journal of Accounting and Finance (6 papers in press)
Underpricing in public offers: Indian perspective for policy initiative by Shailesh Rastogi Abstract: IPO (Initial Public Offering) underpricing is a common practice all over the world. Several studies have attempted to identify the causes of or reasons behind underpricing and explain the phenomenon. The influence of the secondary market on underpricing in the primary market has been explained by Mauer and Senbet (1992). However, the explanation provided by Mauer and Senbet (1992) is not empirically supported by the findings of the present study, which considers an Indian context for the period 1998-2012. The three-pronged theory of secondary market influence on primary market - 1) incomplete spanning, 2) incomplete access, and 3) seasonality - is not supported in the Indian context. Moreover, findings of this paper have implications that go beyond the three-pronged theory to explain the influence of the secondary market on underpricing in the primary market. The paper recommends the use of behavioral finance to justify instances of underpricing in India. Keywords: primary market; stock market; market efficiency; investors; underpricing.
An examination of environmental disclosures of the most polluting companies in India by G. Ezhilarasi Abstract: The purpose of the study is to find the status of environmental disclosures of the most polluting companies in India. Environmental disclosures are measured by a checklist of items based on Global Reporting Initiative guidelines, as well as on environmental regulations prevailing in India. Disclosure scores are drawn individually by using content analysis of annual reports for a sample of the 130 most polluting companies in India for a period of eight years i.e. from 2009-10 to 2016-17. The extent of environmental disclosures of the most polluting companies in India is limited. But the year-wise movement shows an increasing trend, suggesting that disclosure practices have been improved over the study period especially after the inclusion of business responsibility reports. The overall result shows that the polluting companies in India are disclosing environmental information in their annual reports as a strategy to create a better social image among their stakeholders and also for competitive advantage. It is felt that for better environmental disclosures, Securities and Exchange Board of India (SEBI) should mandate all the listed companies to disclose detailed environmental information in their periodic report for enhancing the transparency and accountability of such disclosure. Keywords: environmental disclosures; content analysis; environmental disclosure index; Global Reporting Initiative; annual reports; business responsibility report.
Analysing business failure processes by Inmaculada Jimeno Garcia, Rocio Flores Jimeno Abstract: The purpose of this article is on detecting failure trajectories based on financial variables. We use a dynamic methodology to analyse financial failure. We wish to do this because our goal is to analyse how the economic and financial indicators can predict the risk of failure in a sample of companies. Using a sample of 132 companies that were declared bankrupt or dissolved, we depict the trajectories behavior of the companies on their path to failure. We analyse these trajectories to show if there is empirical evidence of the different processes of bankruptcy. We also study if the warning signs of failure are different in each of these trajectories. In conclusion, we will see that there are different failure trajectories. We can use these different trajectories to identify the indicators that warn of the risks of failure of the companies in the sample. Finally, we prove that the warning signs of failure dont occur in the same way or at the same time. Keywords: business failure; failure process; financial ratios; bankruptcy; insolvency; dissolution.
Determinants of efficiency and stability: evidence from private commercial banks in Bangladesh by Mohammad Dulal Miah, Helal Uddin, Nazifa Nusrat Ahmed Abstract: This research aims at examining the determinants of efficiency and stability of private commercial banks in Bangladesh. Data for this research is collected from 20 private commercial banks over the period of 2002 to 2013. Collected data are analysed using accounting ratios, Stochastic Frontier Analysis (SFA), and ordinary least squares (OLS) regression techniques. Analysis shows that stability and efficiency are positively related. Larger banks are less cost efficient than the smaller banks, which indicates the diseconomies of scale. Liquid asset has a negative influence on efficiency which implies that private commercial banks in Bangladesh are suffering from short-term funding shortage (shortage of operating capital). Results also indicate that highly capitalised banks are more stable. In addition, statutory reserve shows a positive impact on stability, which confirms the effectiveness of regulatory hypothesis. Keywords: efficiency; financial stability; commercial banks; Bangladesh; liquidity.
The failure prediction models: a comparative study by Nesrine Ayadi Abstract: The objective of this paper is to explain and predict the companies failure risk of claiming a credit in order to improve the decision-making process. Our tests are conducted on a sample of 513 French companies and use the methodologies of principal component analysis, Fisher linear discriminant analysis and logistic regression. All have been implemented using carefully selected economic and financial ratios. The empirical results show that the turnover in logarithm, financial independence, employee turnover and turnover growth rate are the most important explanatory variables with a ranking success that exceeds 70%. This finding is consistent across all tested models and specifications. Keywords: credit risk; failure prediction; Fisher linear discriminant analysis; logistic regression; credit scoring.
How do investors react to auditor resignations? by Wonik Choi, Vivek Mande, Myungsoo Son Abstract: Many prior studies examining stock market reaction to auditor changes have focused on short windows surrounding their announcements. These studies have found mixed results on how investors process auditor change information. Expanding the test window, we document a downward market reaction that begins 60 days prior to auditor resignation announcements and continues for at least 30 days after the announcements. Our analyses using longer pre- and post-announcement windows provide a fuller picture of the stock market reaction to auditor change events. We also find that there is negative market reaction to reportable events disclosures in the Forms 8-K in the post-SOX years. This suggests that post-SOX, rather than simply assume that resignations are signals of bad news, investors find the specific reasons provided for the resignations to be incrementally useful. Keywords: auditor switch; auditor resignation; auditor dismissal; market reaction; Sarbanes-Oxley.