Forthcoming articles

International Journal of Accounting and Finance

International Journal of Accounting and Finance (IJAF)

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 Articles will not be published until the final proofs are validated by their authors.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 and Finance (7 papers in press)

Regular Issues

  • Accounting by companies for the Kyoto Protocol in the EU   Order a copy of this article
    by Martin Freedman, Ora Freedman, Jin Dong Park, A.J. Stagliano 
    Abstract: In attempting to achieve the goals of the Kyoto Protocol, the European Union agreed to reduce member countries greenhouse gas emissions to 92% of their 1990 levels by the end of 2012. We assess here the carbon emissions for companies from those countries that were among the largest emitters of carbon in the EU. This evaluation includes emissions in 2008 and 2012 together with disclosures regarding environmental performance that these companies made in the two years. Upon analysing 141 companies from seven of the EU countries, we found that the firms that emitted the most carbon effluents in their home country and that voluntarily disclosed the greatest amount about their carbon emissions also were the ones that provided the most extensive disclosures concerning company environmental performance. These results appear to support legitimacy concepts as the basis for which voluntary reporting will be generated.
    Keywords: carbon disclosure; carbon emissions; Kyoto Protocol; sustainability accounting; environmental accounting.

  • Mixed logistic model with two independent random coefficients for financial crisis prediction: Argentinean companies   Order a copy of this article
    by Norma Patricia Caro, Margarita Diaz, Fernando Garcia, Marcela Porporato 
    Abstract: The paper develops a mixed logistic financial crisis prediction model with two independent random coefficients and validates it for public Argentinean companies. This study complements existing literature on bankruptcy prediction in emerging economies, thus advancing the application of contemporary econometric methods (Caro et al., 2013). Anticipating bankruptcy risks has the potential of increasing portfolios' profitability. Emerging economies differ significantly from central or developed economies in political, cultural, social and institutional terms. Given those differences, investors and lenders need to use specific bankruptcy and financial crisis prediction models. The model uses information from financial statements of firms listed in the Buenos Aires Stock Exchange during 1993-2000, combined in ratios defined by Altman (1993) and Jones and Hensher (2004) achieving an excellent performance, type I error is zero. Results show that profitability, assets turnover and cash flow from operations reduce the likelihood of financial distress while leverage increases it.
    Keywords: latent class models; financial statements; financial ratios; financial crisis; bankruptcy prediction; Latin America; Argentina; accounting.

  • Determinants of a banks debt: dynamic panel evidence from Indian public sector banks   Order a copy of this article
    by Pramod Kumar Naik 
    Abstract: This study aims at examining the major determinants of debt financing of Indian public sector banks. To achieve the study objective, we form a balanced panel by extracting data of 26 public sector banks of India over a 12 year period from 2005 to 2016. The study employs the pooled OLS, and both the static and the dynamic panel data techniques, such as the random-effects model and system GMM model for the empirical analysis. The analysis reveals that a bank's debt financing is significantly determined by bank size, tangibility, liquidity, and financial strength. It shows that bank size, liquidity, and tangibility are positively related to a bank's debt, whereas financial strength and economic growth are negatively related to the bank's debt level. It is also found that the debt level is consistent over time; however, the speed of adjustment is around 92% per annum. This implies that the public sector banks adjust their actual debt level towards their optimal debt level at a faster rate.
    Keywords: bank leverage; dynamic panel data; system GMM; public sector banks in India.

  • IFRS adoption and cost of capital: moderating effects of growth opportunities and informational environment   Order a copy of this article
    by Hela Turki, Senda Wali, Younes Boujelbene 
    Abstract: The present paper is primarily designed to investigate the relationship binding the IFRS mandatory adoption and the corporate capital cost. Additionally, it is focused on assessing this relationship associated growth opportunities, along with an evaluating of the informational environment moderating role. This study is focused on the French context through implementation of longitudinal data. The study sample involves entirely companies belonging to the CAC All Tradable index, observed over the period between 2002 and 2012. The results appear to reveal that the IFRS mandatory adoption proves to help greatly in reducing the French listed firms' capital cost. Actually, no evidence has been discovered to prevail as the informational environment moderating effect on the relationship binding the IFRS adoption and capital cost. Conversely, there is some evidence of the interaction between the companies' growth opportunities and IFRS adoption highlighting cost reduction.
    Keywords: IFRS; information asymmetry; cost of capital; informational environment; growth opportunities.

  • Return prediction with time-varying betas: a research in BIST   Order a copy of this article
    by Ayca Akyatan, M. Koray Cetin 
    Abstract: In the present study, dynamic versions of beta, which is the risk measure of investment instruments, have been employed to predict daily return of thirty random portfolios made of 154 stocks transacted in BIST ALL between dates 02.01.2003 and 29.08.2013. BIST 100 Index has been employed as the market portfolio. The predictions have been made with rolling regression and mgarch methods. The performance of return predictions of dynamic betas has been compared with the performance of return predictions of traditional beta. Dynamic betas have been estimated with rolling regression, mgarch dvech, mgarch dbekk, mgarch ccc and mgarch dcc. In the study, it has been identified that the return prediction made with dynamic betas performed better than the predictions made with traditional beta. However, the return predictions made with ccc betas have been superior to other dynamic betas in terms of beating the performance of traditional beta.
    Keywords: risk; return prediction; conditional covariance; rolling regression; mgarch; dynamic beta; dcc; ccc; dbekk; BIST.

  • The role of independent directors, bank loan and institutional holding on discretionary accruals: some evidence from India   Order a copy of this article
    by Somnath Banerjee, Satyajit Dhar, Anirban Dutta 
    Abstract: Earnings management encompasses the methods and techniques of inflating or deflating reported income to serve some inappropriate objective of the management or the managers of firms. We wanted to examine whether bank loan and institutional holding and proportion of independent directors in the Board have any influence on earnings management in India. We have collected data of 246 firm years of industry representative firms and have computed discretionary accruals for them using the Jones model and then computed statistical correlation of discretionary accruals with bank loan and institutional holding and the proportion of independent directors in the Board. As we expected, we have found negative correlation of discretionary accruals with bank loan and institutional ownership and independent directors. We have finally shown a regression to establish this.
    Keywords: earnings management; discretionary accruals; bank loan; institutional holding; independent director.

  • Investigating the determinants of foreign direct investments in developed countries   Order a copy of this article
    by Musa Essayyad, Banamber Mishra, Stephen Caples, Omar Al-Titi 
    Abstract: This paper employs a more robust econometric methodology to investigate the foreign direct investment phenomenon, expand the data horizon from 2004-2013 to 1996-2016, and generate more solid research outcomes on the determinants of foreign direct investments in 32 developed countries. Specifically, this paper uses both static and dynamic estimation models to investigate the determinants of foreign direct investments in developed countries.
    Keywords: foreign direct investment; panel data; static panel estimation models; dynamic panel estimation models; pooled OLS estimation.