International Journal of Managerial and Financial Accounting (9 papers in press)
The role of resources and capabilities in managing and overcoming the financial crisis: a case study of the Fratelli Pinna sheep-dairy business
by Antonio Usai, Daniele Porcheddu, Brunella Arru
Abstract: The Italian economic system comprises a significant number of small and medium-sized family businesses. Recent empirical evidence shows that the characteristics of family firms are crucial in overcoming the adverse effects of the financial crisis, thus contributing to the generation of wealth and employment for the country. Using the case study approach, this paper investigates the firm-level dynamics during the last economic recession of a medium-size family firm, operating in a mature market and situated in a rural context. The finding showed that the managements approach to the crisis was dictated, among various factors, by the firms distinctive characteristics, its social capital and its role in the local and regional contexts. These peculiarities have been the key to overcoming the most harmful effects of the economic crisis and to avoiding the necessity of carrying out radical restructuring processes and financial recovery. Moreover, this case showed the pivotal role of the social dimension of the firm and the consequences of the decrease in the historical attention placed on the well-being of the business community and society as a whole.
Keywords: Family business; Financial crisis; Mature sector; Cost leadership; Stakeholder theory; Medium-size businesses.
THE EFFECT OF SIZE OFFERING AND LEVERAGE ON IPO UNDERPRICING
by Maxime Gauvin, Gabriel Power
Abstract: IPO underpricing is a well-documented stylized fact in financial markets. Although many explanations have been considered, the role of size offering is under-studied. This paper investigates U.S. IPO underpricing in a setting that allows for size offering, leverage, and Fama-French risk factors. We find that, across specifications, size offering is economically and statistically significant. IPO underpricing is decreasing in the size offering, controlling for other variables. Implications for investors and firms are discussed and related to firm ex ante uncertainty.
Keywords: Initial public offering; underpricing; abnormal return; size; offering; equity; debt; leverage; risk; asymmetric information.
Does the voluntary adoption of integrated reporting affect the value relevance of accounting information? Empirical evidence from Europe
by Salvatore Loprevite, Daniela Rupo, Bruno Ricca
Abstract: This study verifies whether the voluntary adoption of an integrated report in Europe under the Framework is associated with the value relevance of summary accounting information.
We compare a sample of European listed companies that publish Integrated Reports (IR-firms) under the Framework with companies that do not publish it (NIR-firms). To analyse the association between market value (MV) and traditional accounting information (book value and earnings), we use multivariate regression linear models and generalized linear models (GLM).
The results of our analysis show that the adoption of IR appears to strongly affect the value relevance of summary accounting information. For IR-firms, we find significant lower value relevance for earnings and slightly higher value relevance for book value, compared to NIR-firms. Additionally, our findings reveal that for both groups the level of investments on intangibles is positively associated to market value but with a significantly higher association for the IR-firms.
Keywords: Integrated Reporting; International Integrated Reporting Framework; Value Relevance; Accounting information.
Credit access and performance of Italian firms: How relevant is gender?
by Luana Serino, Armando Papa, Francesco Campanella, Jens Mueller
Abstract: This paper investigates the relationship between firm structure with its performance besides the interest rates applied by banks; and the gender governance besides firm profitability and the pricing of credit charged by the banking system. The sample used for this empirical research consists of 219 Italian firms and it was analyzed during the 2013-2016 period. Employing a two-phases quantitative method, our study finds that there are important elements (both in terms of corporate structure and gender governance) that impact on the corporate performance and the pricing of credit firms pay when they succeed in borrowing.
Keywords: banks; bias; business; corporate structure; credit access; female firms; gender governance; loans; performance; pricing of credit.
Measuring the maintenance performance through fuzzy logic and analytical hierarchy process (AHP)
by Mehdi Amine Naji, Ahmed Mousrij, Valentina Cillo, Roberto Chierici
Abstract: The paper presents an innovative maintenance performance measurement system that organizations can adopt to identify those predictors that better contribute to achieve higher maintenance standards. Adopting a multi-level, multi-criteria decomposition technique designed to identify and classify key indicators, the study aims to support firms in their decision-making process. Using the fuzzy logic technique, the elementary performance measurement is quantified. Afterwards, by implementing the analytical hierarchy process (AHP) and the weighted arithmetic mean, these measures are aggregated to a holistic measure that quantifies the overall maintenance performance and identifies precisely the requirements to improve continuously and effectively the maintenance performance. Finally, the proposed model was applied to a Moroccan company leader in the chemical sector. The results show that the model effectively allows maintenance managers to properly measure and improve their maintenance performance and support managers in identifying the key actions to enhance their organizations performance.
Keywords: Maintenance performance measurement; maintenance performance indicator; fuzzy set; multi-criteria decision making; AHP.
Fostering Tacit Knowledge Sharing and Innovative Work Behavior: An Integrated Theoretical View
by Vikas Gupta, Asha Thomas
Abstract: A pivotal role is played by innovative work behavior (IWB) for the lasting existence of knowledge-intensive business organizations. Although it is significant to be innovative and creative, the influences of this innovation and creativity on the economy and its growth in the future are still inadequate. This conceptual research, supported by the Social Capital Theory (SCT) and Self-determination Theory (SDT), attempts to focus on vital predictors that are important for promoting tacit knowledge sharing (KS). This study also concentrates on IWB as an outcome of tacit KS as it enhances the idea of contributing to the existing literature not explored earlier by other related studies.
Keywords: – Tacit Knowledge Sharing (TKS); Social Capital Theory (SCT); Self-determination Theory (SDT); Innovative Work Behavior (IWB).
The determinants of XBRL adoption: a meta-analysis
by Mohssen EL ANSARY, Mourad OUBRICH, Beatrice ORLANDO, Fabio FIANO
Abstract: eXtensible Business Reporting Language (XBRL) is a new technology revolutionizing the world of business information. Past studies attempt explaining what are the factors, such as drivers and inhibitors, able to exert influence over the adoption of this technology. To date, findings seems contrasting. This fragmented panorama provides the opportunity to current study, which purpose is to provide a fine-tuned meta-analysis of determinants of XBRL adoption, by cross-checking the results of 18 prior contributions. Originally, we group determinants of XBRL adoption into three main species of factors: the perceived usability related to the technical dimension (perceived ease-of-use and perceived usefulness - Technology Acceptance Model). The second dimension includes environmental factors (normative pressure). The third dimension is formed by the organizational aspect, composed by the managerial attitude and organizational expertise. The output of this study is an original conceptual framework that we will test in the Moroccan context.
Keywords: Technology acceptance; Business information; XBRL adoption; Meta-analysis.
Investor sentiment, stock price and audit quality
by Hossein Jokar, Vahid Daneshi
Abstract: Numerous studies have investigated the effect of audit quality on investors decisions in the stock market, but the direction of most of these studies has focused solely on the rationality principle of economic factors and the documentation of the relationship between audit quality and stock price. They have also stated the direct reaction of the market to audit quality criteria as the signs of the effects of auditing on the investors' decisions. They have rarely investigated the role of independent auditing on the emotional behaviours of investors in the stock market; hence, the main objective of this research is to investigate the moderating effect of audit quality on the relationship between investor sentiment and stock price. The audit quality is measured by the observable variables of the type of audit report, auditor size, auditor specialization, and auditor tenure. A composite index has been used to measure investor sentiment. The results show that the auditor reports and the auditor specialization in the industry strengthened the investors' trust in the accounting information and affected the investor sentiment in-stock pricing; however, the auditor size and the auditor tenure did not have a moderating effect and did not affect the relationship between investor sentiment and stock price.
Keywords: Investor sentiment; Stock price; Audit quality.
Strategy and Capital budgeting techniques: The moderating role of entrepreneurial structure
by Zahida Sarwary
Abstract: This study explores how Miles and Snows (1978) typology of strategy relates to a firms choice of capital budgeting techniques (CBT) when the firm operates in a competitive market. Furthermore, it explores how this relationship is contingent on entrepreneurial structure. The study is based on data from 62 small and medium-sized enterprises (SMEs) operating on First North. The empirical data was collected using a survey and secondary data from annual reports and analyzed with content analysis. The results show that an analyzer strategy is positively related to the choice of sophisticated CBT, and a defender strategy is positively related to the choice of non-sophisticated CBT. Moreover, entrepreneurial structure positively moderates the relationship between prospector strategy and the choice of non-sophisticated CBT. The study also provides practical insights on how to align strategy, CBT, and structure among SMEs operating on competitive markets.
Keywords: Strategy; Strategic planning tools; Capital budgeting techniques; Organizational structure; Entrepreneurial structure; Content analysis.