Forthcoming and Online First Articles

International Journal of Accounting and Finance

International Journal of Accounting and Finance (IJAF)

Forthcoming 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 Articles will not be published until the final proofs are validated by their authors.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.

Online First articles are published online here, before they appear in a journal issue. Online First articles are fully citeable, complete with a DOI. They can be cited, read, and downloaded. Online First articles are published as Open Access (OA) articles to make the latest research available as early as possible.

Open AccessArticles marked with this Open Access icon are Online First articles. They are freely available and openly accessible to all without any restriction except the ones stated in their respective CC licenses.

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

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

  • The determinants of liquidity creation of conventional and Islamic banks   Order a copy of this article
    by Turki Alshammari 
    Abstract: This study uses the liquidity creation concept developed recently to empirically identify the determinants of liquidity creation function of banks in the Gulf Cooperation Council (GCC) countries during the period 20032018. The importance of the study comes from the fact that it is that it differentiates between conventional banks and Islamic banks. The study uses all chartered conventional and Islamic banks in the GCC countries. In order to substantiate the findings, the study employs numerous statistical techniques, such as cross-sectional regression models as well as the GMM method. The results of the analysis show that the larger and more profitable conventional banking system creates more liquidity than the more capitalised and credit riskier Islamic banking system in the GCC area. Further, the most notable determinants of liquidity creation of conventional banks are credit risk, capital ratio, inflation rate, and profitability, while those of Islamic banks are only credit risk and equity ratio. The difference in results might be due to the difference in the adopted business model (financial for conventional banks versus commercial for Islamic banks). The study is the first to apply the theoretical liquidity creation definitions on conventional versus Islamic banks in the GCC countries. It is the first study that differentiates between the determinants of liquidity creation in two different banking systems.
    Keywords: liquidity creation; Islamic banks; conventional banks; credit risk; GCC countries; inflation rate.

  • Auditor type and TYPE AND IAS 1 compliance nexus: do size and industry effects matter?   Order a copy of this article
    by Kingsley Opoku Appiah, Simon Kofi Tetteh, Rabiatu Kamil 
    Abstract: This study examines whether size and industry effect influence the nexus between auditor type and IAS 1 compliance in the developing economies context, while controlling for firm age, multiple listing, profitability, and financial leverage. Our analysis is based on ordinary least squares, random-effects, quantile regressions, 2SLS and hand-collected data from the 2008 to 2014 annual reports of 31 listed firms on the Ghana Stock Exchange (GSE). We find 97% compliance level with IAS 1 disclosure requirement of GSE listed firms. The auditor type, measured by Big Four auditor, is significant and positively related to IAS 1 disclosure. This positive association is further strengthened by firm size and financial industry effect. The quantile regression analysis shows the interaction between auditor type and firm size is related to IAS 1 compliance, if a critical threshold of size is attained. Our results are robust in all estimations. The high IAS 1 compliance rate may indicate that preparers do not consider materiality in their disclosure choices. The study documents auditor type and IAS 1 compliance nexus is moderated by firm size, in an environment of lax enforcement regulations.
    Keywords: disclosure; corporate reporting; IAS 1; comparative study; emerging economies.

  • The perceived social responsibility in the banking activities by Puerto Rican entrepreneurs   Order a copy of this article
    by Ahmad Juma'h, Doris Morales-Rodríguez 
    Abstract: Banks, as part of the financial institutions, are the cornerstone of a country's expansion and economic development. In Puerto Rico, where there is a need to decrease the dependency on multinational manufacturing entities, small and medium-sized companies can contribute to the economic development of the island. Financial institutions, e.g., banks and cooperative financial unions, are an essential part of the solution to the problem of financing economic activity. Commercial banks need positive perceptions from entrepreneurs to improve their profitability. Financial institutions use corporate social responsibility strategies to influence public perception to increase customer satisfaction. To examine the Puerto Rican entrepreneurs perceptions of banks social responsibility, we distributed a questionnaire to micro, small, and medium-sized business persons. As one of the confirming conclusions, banks operating in Puerto Rico enjoy a negative perception among entrepreneurs.
    Keywords: corporate social responsibility; perception; micro-companies; small-medium enterprises; economic growth; Puerto Rico.

  • Who contributes to a firms long-term performance: major institutional investors or the CEO?   Order a copy of this article
    by Lin Chen, Xia Zhang, Dongfang Nie 
    Abstract: In this study, we hypothesise and find that major institutional investors significantly contribute to a firms long-term financial performance. We also find that the contribution is mainly driven by pressure-resistant institutional investors. We further find that CEO pay slice as a proxy of CEO power is negatively related to a firms long-term performance, while CEO duality has no association with firm performance. Our findings help to disapprove Jamie Dimons argument that shareholders who aim at cutting CEOs' pay and forcing them to give up the role as chair of the board of directors are 'lazy' and 'irresponsible' about the firms long-term performance. Our study contributes to the literature that investigates the effect of corporate governance in mitigating agency problems.
    Keywords: institutional investors; pressure-resistant institutional investors; pressure-sensitive institutional investors; CEO duality and pay slice; firm’s long-term performance.

  • Business students perceptions of tax evasion: a study in Bangladesh   Order a copy of this article
    by Md. Harun Ur Rashid, Afzal Ahmad 
    Abstract: The study aims to examine the factors that influence business students' perceptions of tax evasion. The study has used Structural Equation Modelling (SEM) to analyse data collected from business students in Bangladesh. The research shows a significant and positive impact of the lack of fairness, corruption, complexity in the tax system, lack of tax knowledge and lack of audit on tax evasion. The findings imply that the higher the corruption and complexity in a tax system and the lower the fairness, audit probability and tax knowledge, greater the tax evasion. The study is expected to offer a valuable insight for policymakers, tax authorities and the governments reforming a sound tax framework in such a way that the taxpayers will comply voluntarily.
    Keywords: tax evasion; tax evasion behaviour; business students’ perceptions; SEM; developing countries; Bangladesh.

  • Efficient management of working capital and weighted average cost of capital   Order a copy of this article
    by Amarjit Gill, John Obradovich, Marcia Whittaker 
    Abstract: This study explores relations between the efficient management of working capital (WC) and the weighted average cost of capital (WACC) using data spanning 20142019 for 9807 publicly traded American manufacturing firms. Its co-relational and non-experimental research design involves a Tobit model as a robustness check to overcome potential inconsistencies arising from ordinary least squares. Its results suggest that the efficient management of WC played varying roles in reducing the WACC for the surveyed firms and period. For the seven elements of efficient management of WC that we investigated, analysis shows that net operating working capital, current ratio, and cash flow reduce WACC by 1.70%, 0.60%, and 0.30%, respectively, for the examined firms. These results extend the literature on concerning factors that reduce cost of capital. Financial managers, investors, financial management consultants, and other stakeholders may find them useful. This study may also encourage further studies of efficient management of WC and WACC using data from other industries, periods, and countries.
    Keywords: efficient management of working capital; weighted average cost of capital; cost of debt; cost of equity; American manufacturing firms.

  • Unregulated corporate financial statements and analysts target price accuracy: evidence from embedded value reporting by life insurers   Order a copy of this article
    by Samir El-Gazzar, Rudolph Jacob, Scott McGregor 
    Abstract: There have been multiple studies supporting the value relevance of embedded value (EV) voluntary disclosures by life insurance companies. To the best of our knowledge, this is the first paper to examine the impact of EV voluntary disclosure on analysts target price forecast accuracy. In this study, recent empirical archival data is analysed and evaluated to determine the impact of an unregulated valuation metric on the accuracy of analysts price accuracy. Our findings support the proposition that EV is valuable supplemental information in foreign domestic markets. The findings discussed in this paper are of special interest to financial reporting policy makers, financial analysts, managers, and academics. Although the IASB and the FASB have engaged in projects to improve accounting standards for insurance companies, EV disclosures provide information not contained in traditional accounting disclosures. Our analysis suggests that life insurers that currently do not disclose EV should consider disclosing the measure. Moreover, our analysis suggests that financial analysts in the US should consider encouraging US life insurers to disclose EV to support their valuing life insurers stocks. We contribute to the extant literature on embedded value, and voluntary disclosures, by providing evidence that suggests that EV disclosure helps improve the accuracy of analyst forecasts. We believe this is the only study on the impact of EV disclosure on analysts target price forecasts and extends the research associated with EV disclosure.
    Keywords: embedded value; voluntary disclosure; insurance accounting; target price accuracy.