Template-Type: ReDIF-Article 1.0
Author-Name: Joan M. Amat Salas 
Author-X-Name-First: Joan M. Amat 
Author-X-Name-Last: Salas 
Title: Management accounting systems in Spanish firms 
Abstract:
  Up until the late 1970s management accounting systems (MAS) lacked
 relevance for management purposes in Spanish organizations. However, since
 the early 1980s MAS have been increasing their importance in a large
 number of small, medium and large organizations. The contention of the
 article is that not only has this been the response to an increasingly
 complex and hostile competitive environment but it has been strongly
 linked to the changes experienced in the last two decades in the social
 and organizational contexts of Spanish organizations. Particularly, there
 were two relevant factors in the social context that were intertwined with
 the rising importance of MAS: firstly, the impact of the late 1970s'
 economic crisis on the profitability of the Spanish organizations; and,
 secondly, the changes in the social and political context since the late
 1960s. Related to these, the weakening of the previous coercive mechanisms
 of social control, the end of the paternalistic organizational and social
 model of the 1960s and the arrival of a new generation of managers created
 the conditions for making possible an increasing importance of MAS for
 management purposes. Through the description and analysis of three cases
 this article explores some of the interactions between MAS and their
 organizational and social context. 
Journal: European Accounting Review 
Pages: 1-26 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000001 
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:1-26




Template-Type: ReDIF-Article 1.0
Author-Name: Walther Busse von Colbe 
Author-X-Name-First: Walther Busse 
Author-X-Name-Last: von Colbe 
Title: Relationships between financial accounting research, standards setting and practice in Germany 
Abstract:
Journal: European Accounting Review 
Pages: 27-38 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:27-38




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Power 
Author-X-Name-First: Michael 
Author-X-Name-Last: Power 
Title: The politics of brand accounting in the United Kingdom 
Abstract:
  The debate on accounting for brand names in the UK is undoubtedly a
 significant episode in the recent history of accounting regulation. This
 essay describes the principal 'technical' parameters of the debate and
 places the question of a credible valuation technology for brands at its
 centre. A concept of the politics of consensus formation is developed to
 interpret the strategies adopted by the participants in the debate to
 contest and assert the authority of valuation expertise. This suggests a
 more complex view of the UK debate in which apparently technical
 disagreements about asset recognition cannot be abstracted from social
 questions of expert authority to determine such issues. The UK brand
 accounting debate therefore concerns much more than the need to solve an
 accounting problem. The concept of the branded product provokes a new and
 contested visibility for marketing bodies of knowledge in relation to
 financial reporting. 
Journal: European Accounting Review 
Pages: 39-68 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000003 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:39-68




Template-Type: ReDIF-Article 1.0
Author-Name: Leo van der Tas 
Author-X-Name-First: Leo 
Author-X-Name-Last: van der Tas 
Title: Evidence of EC financial reporting practice harmonization 
Abstract:
Journal: European Accounting Review 
Pages: 69-104 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000004 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:69-104




Template-Type: ReDIF-Article 1.0
Author-Name: Stuart Turley 
Author-X-Name-First: Stuart 
Author-X-Name-Last: Turley 
Title: Developments in the structure of financial reporting regulation in the United Kingdom 
Abstract:
Journal: European Accounting Review 
Pages: 105-122 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000005 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:105-122




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Hopwood 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Hopwood 
Title: Accounting calculation and the shifting sphere of the economic 
Abstract:
  The paper examines some aspects of the interrelationship between
 accounting and economics. Noting that much of the significance of
 accounting stems from the coupling of relatively routine procedures with
 wider understandings of the functions which they can serve, the paper
 examines how economic discourses have provided contexts for accounting
 elaboration and change. Reference is made to two case examples. The mutual
 interrelationship between accounting and economics is emphasized in the
 paper with particular consideration being given to the ways in which
 accounting calculations facilitate the construction of spheres of economic
 activity. 
Journal: European Accounting Review 
Pages: 125-143 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000007 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:125-143




Template-Type: ReDIF-Article 1.0
Author-Name: Arjo Klamer 
Author-X-Name-First: Arjo 
Author-X-Name-Last: Klamer 
Author-Name: Donald McCloskey 
Author-X-Name-First: Donald 
Author-X-Name-Last: McCloskey 
Title: Accounting as the master metaphor of economics 
Abstract:
  It is now sixteen or seventeen years since I saw the Queen of France,
 then the Dauphiness, at Versailles. &#x2026; Little did I dream that I
 should have lived to see disasters fallen upon her in a nation of gallant
 men. &#x2026; I thought ten thousand swords must have leaped from their
 scabbards to avenge even a look that threatened her with insult. But the
 age of chivalry is gone. That of sophisters, economists, and calculators,
 has succeeded; and the glory of Europe is extinguished for ever. 
Journal: European Accounting Review 
Pages: 145-160 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000008 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:145-160




Template-Type: ReDIF-Article 1.0
Author-Name: K. Van Hulle 
Author-X-Name-First: K. 
Author-X-Name-Last: Van Hulle 
Title: Harmonization of accounting standards A view from the European community 
Abstract:
Journal: European Accounting Review 
Pages: 161-172 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000009 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:161-172




Template-Type: ReDIF-Article 1.0
Author-Name: John Flower 
Author-X-Name-First: John 
Author-X-Name-Last: Flower 
Title: The establishment of a Centre for Research in European Accounting 
Abstract:
Journal: European Accounting Review 
Pages: 173-177 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000010 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:173-177




Template-Type: ReDIF-Article 1.0
Author-Name: John Flower 
Author-X-Name-First: John 
Author-X-Name-Last: Flower 
Title: Book Review 
Abstract:
Journal: European Accounting Review 
Pages: 179-187 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000011 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:179-187




Template-Type: ReDIF-Article 1.0
Author-Name: Seppo Ikaheimo 
Author-X-Name-First: Seppo 
Author-X-Name-Last: Ikaheimo 
Title: A report on the 1991 EEA Doctoral Colloquium and the AAA Doctoral Consortium 
Abstract:
Journal: European Accounting Review 
Pages: 189-193 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000012 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:189-193




Template-Type: ReDIF-Article 1.0
Author-Name: Keith robson 
Author-X-Name-First: Keith 
Author-X-Name-Last: robson 
Title: Workshop on Accounting in its Organizational and Social Contexts 
Abstract:
Journal: European Accounting Review 
Pages: 195-201 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000013 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:195-201




Template-Type: ReDIF-Article 1.0
Author-Name: Elin Sundgaard 
Author-X-Name-First: Elin 
Author-X-Name-Last: Sundgaard 
Title: BAA European Accounting Research Workshop 
Abstract:
Journal: European Accounting Review 
Pages: 201-205 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000014 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:201-205




Template-Type: ReDIF-Article 1.0
Author-Name: Helene Loning 
Author-X-Name-First: Helene 
Author-X-Name-Last: Loning 
Title: The XIIth Congress of the 'Association Francaise de Comptabilite' (The French Accounting Association) 
Abstract:
Journal: European Accounting Review 
Pages: 205-207 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000015 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:205-207




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Boland 
Author-X-Name-First: Richard 
Author-X-Name-Last: Boland 
Title: The Third Interdiscriplinary Perspectives on Accounting Conference 
Abstract:
Journal: European Accounting Review 
Pages: 207-208 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000016 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:207-208




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Zambon 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Zambon 
Title: Research Issues in Accounting and Business Administration: A European Colloquium 
Abstract:
Journal: European Accounting Review 
Pages: 208-211 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000017 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:208-211




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner Inchausti 
Author-X-Name-First: Begona Giner 
Author-X-Name-Last: Inchausti 
Title: Second Seminar on Financial Statement Analysis in Spain 
Abstract:
Journal: European Accounting Review 
Pages: 211-211 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000018 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:211-211




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner Inchausti 
Author-X-Name-First: Begona Giner 
Author-X-Name-Last: Inchausti 
Title: Fourth Meeting of University Teachers of Accounting in Spain 
Abstract:
Journal: European Accounting Review 
Pages: 212-212 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000019 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:212-212




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner Inchausti 
Author-X-Name-First: Begona Giner 
Author-X-Name-Last: Inchausti 
Title: Sixth Congress of the Spainsh Association of Accounting and Business Administration (AECA) 
Abstract:
Journal: European Accounting Review 
Pages: 212-213 
Issue: 1 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000020 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:1:p:212-213




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Boussard 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Boussard 
Author-Name: Bernard Colasse 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Colasse 
Title: Funds-flow statements and cash-flow accounting in France 
Abstract:
Journal: European Accounting Review 
Pages: 229-254 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000022 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:229-254




Template-Type: ReDIF-Article 1.0
Author-Name: H. L. Brink 
Author-X-Name-First: H. L. 
Author-X-Name-Last: Brink 
Title: A history of Philips' accounting policies on the basis of its annual reports 
Abstract:
  It is our objective to submit Reports which will enab;e our shareholders
 to appreciate the results obtained and the position of the company.
 &#x2026; We follow with great interest the comments of the financial world
 and the Press, in order that the views of shareholders and third
 partiesthe manner of presentation may be taken in account, insofar as
 business interests allow. 
Journal: European Accounting Review 
Pages: 255-275 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000023 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:255-275




Template-Type: ReDIF-Article 1.0
Author-Name: Merete Christiansen 
Author-X-Name-First: Merete 
Author-X-Name-Last: Christiansen 
Author-Name: Anne Loft 
Author-X-Name-First: Anne 
Author-X-Name-Last: Loft 
Title: Big players and small players 
Abstract:
  The international mergers between large auditing firms which produced
 'The Big Six' involved Danish auditing firms in a process of intense
 merger activity. In this article some aspects of the consequences are
 explored. An empirical study of concentration in the market for the audit
 of Danish quoted companies was made. There was a large increase in
 concentration between 1989 and 1991. Two of the large audit firms now
 audit over half of the total value of the net turnover of quoted
 companies. Associated with it, there appears to have been increasing
 competition in both the audit and consultancy areas, the latter having
 increased in importance as a generator of profit for auditing firms.
 Auditors claim to act in the public interest but the developments
 discussed here raise doubts about this, a situation which requires serious
 attention from auditors and regulators. 
Journal: European Accounting Review 
Pages: 277-301 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000024 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:277-301




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Antonia Garcia-Benau 
Author-X-Name-First: Maria Antonia 
Author-X-Name-Last: Garcia-Benau 
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Title: Beyond the audit expectations gap 
Abstract:
  In seeking to encourage a broader, European dimension to research on
 auditing and audit expectations, this paper examines the recent history of
 auditing and its regulation in Spain within the context of international
 developments in the accounting profession. The more expansive role being
 assigned to the audit function in Spain following the implementation of
 the Fourth and Eighth European Company Law Directives is generally viewed
 by Spanish writers as a progressive step, with largely positive effects.
 Such views stand in some contrast to the history of auditing in Britain,
 where the prevalence of an 'audit expectations gap' suggests a rather more
 problematic state of affairs. In exploring both the Spanish context and
 the nature of the audit expectations gap in Britain, however, the paper
 reveals a common underlying belief in the potential of auditing. Through
 this comparative analysis, and by drawing on recent audit research
 challenging certain long-held assumptions about auditing, a number of
 questions are asked of the current form and status of auditing and
 auditing expectations in Britain and Spain. In so doing, the paper raises
 issues that go beyond the current confines of the audit expectations gap
 debate, stressing, in particular, the need for greater consideration to be
 given, through less Anglo-centric analyses, to the varying nature and
 capabilities of European audit practice. 
Journal: European Accounting Review 
Pages: 303-331 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000025 
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:303-331




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Moizer 
Author-X-Name-First: Peter 
Author-X-Name-Last: Moizer 
Title: State of the art in audit market research 
Abstract:
Journal: European Accounting Review 
Pages: 333-348 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:333-348




Template-Type: ReDIF-Article 1.0
Author-Name: Prem Sikka 
Author-X-Name-First: Prem 
Author-X-Name-Last: Sikka 
Title: Audit policy making in the UK 
Abstract:
  In accounting discourses, the going concern concept is considered to be
 'fundamental' yet in auditing it is considered to be 'material but not
 fundamental'. Like all other social concepts and practices, 'going
 concern' is multi-accented and its meanings cannot be stabilized. Against
 such a background, the UK accountancy bodies formulated and issued the
 auditing guideline The Auditor's Considerations in Respect of Going
 Concern in 1985. The purpose of this paper is to explore audit policy
 making in the UK by examining the formulation of the auditing guideline.
 The evidence suggests that the auditing guideline was an attempt by the
 professional bodies to manage a crisis of auditor responsibility. It
 suggests that a major aim of the guideline was to minimize audit effort in
 order to give maximum protection from litigation to major auditing firms. 
Journal: European Accounting Review 
Pages: 349-392 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:349-392




Template-Type: ReDIF-Article 1.0
Author-Name: Leo van der Tas 
Author-X-Name-First: Leo 
Author-X-Name-Last: van der Tas 
Title: New European insurance accounting rules 
Abstract:
Journal: European Accounting Review 
Pages: 401-406 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000029 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:401-406




Template-Type: ReDIF-Article 1.0
Author-Name: Clare Grant 
Author-X-Name-First: Clare 
Author-X-Name-Last: Grant 
Title: Changes in university-level accounting education in Poland 
Abstract:
Journal: European Accounting Review 
Pages: 407-412 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000030 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:407-412




Template-Type: ReDIF-Article 1.0
Author-Name: Paivi Raty 
Author-X-Name-First: Paivi 
Author-X-Name-Last: Raty 
Title: Reforming Finnish accounting legislation 
Abstract:
Journal: European Accounting Review 
Pages: 413-420 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000031 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:413-420




Template-Type: ReDIF-Article 1.0
Author-Name: Linda Kirkham 
Author-X-Name-First: Linda 
Author-X-Name-Last: Kirkham 
Author-Name: John Arnold 
Author-X-Name-First: John 
Author-X-Name-Last: Arnold 
Title: Goodwill accounting in the UK 
Abstract:
Journal: European Accounting Review 
Pages: 421-425 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000032 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000032 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:421-425




Template-Type: ReDIF-Article 1.0
Author-Name: Gerard McHugh 
Author-X-Name-First: Gerard 
Author-X-Name-Last: McHugh 
Author-Name: Billy Stamp 
Author-X-Name-First: Billy 
Author-X-Name-Last: Stamp 
Title: Financial reporting in Ireland 
Abstract:
Journal: European Accounting Review 
Pages: 427-436 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000033 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:427-436




Template-Type: ReDIF-Article 1.0
Author-Name: J. H. Blokdijk 
Author-X-Name-First: J. H. 
Author-X-Name-Last: Blokdijk 
Author-Name: F. Drie&#xeb;nhuizen 
Author-X-Name-First: F. 
Author-X-Name-Last: Drie&#xeb;nhuizen 
Title: The environment and the audit profession 
Abstract:
Journal: European Accounting Review 
Pages: 437-443 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000034 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:437-443




Template-Type: ReDIF-Article 1.0
Author-Name: T. Flemming Ruud 
Author-X-Name-First: T. Flemming 
Author-X-Name-Last: Ruud 
Title: Auditors in Fokus! 
Abstract:
Journal: European Accounting Review 
Pages: 444-446 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000035 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:444-446




Template-Type: ReDIF-Article 1.0
Author-Name: Lionel Collins 
Author-X-Name-First: Lionel 
Author-X-Name-Last: Collins 
Title: Audit implication in early warning systems 
Abstract:
Journal: European Accounting Review 
Pages: 447-452 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000036 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:447-452




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Dent 
Author-X-Name-First: Jeremy 
Author-X-Name-Last: Dent 
Title: The 1992 DRT Doctoral Colloquium in Accounting 
Abstract:
Journal: European Accounting Review 
Pages: 453-454 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000037 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000037 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:453-454




Template-Type: ReDIF-Article 1.0
Author-Name: W. Aerts 
Author-X-Name-First: W. 
Author-X-Name-Last: Aerts 
Title: Accountability and legitimation 
Abstract:
Journal: European Accounting Review 
Pages: 454-457 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000038 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:454-457




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jose Arcas 
Author-X-Name-First: Maria Jose 
Author-X-Name-Last: Arcas 
Title: Accounting choice and its economic effects: empirical contrasts in the banking sector in Spain 
Abstract:
Journal: European Accounting Review 
Pages: 457-458 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000039 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:457-458




Template-Type: ReDIF-Article 1.0
Author-Name: Apostolos Ballas 
Author-X-Name-First: Apostolos 
Author-X-Name-Last: Ballas 
Title: The use of accounting information in the valuation of equity securities 
Abstract:
Journal: European Accounting Review 
Pages: 458-459 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000040 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000040 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:458-459




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Maijoor 
Author-X-Name-First: Steven 
Author-X-Name-Last: Maijoor 
Title: Economic effects of Dutch accounting regulation 
Abstract:
Journal: European Accounting Review 
Pages: 459-462 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000041 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000041 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:459-462




Template-Type: ReDIF-Article 1.0
Author-Name: Yves De Ronge 
Author-X-Name-First: Yves 
Author-X-Name-Last: De Ronge 
Title: An analysis of the subsidiarization process of multidivisional companies 
Abstract:
Journal: European Accounting Review 
Pages: 462-464 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000042 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:462-464




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Skaerbaek 
Author-X-Name-First: Peter 
Author-X-Name-Last: Skaerbaek 
Title: Accounting for a theatre: implementing a management accounting system in a cultural institution 
Abstract:
Journal: European Accounting Review 
Pages: 465-469 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000043 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:465-469




Template-Type: ReDIF-Article 1.0
Author-Name: Leo van der Tas 
Author-X-Name-First: Leo 
Author-X-Name-Last: van der Tas 
Title: Harmonization of financial reporting &#x2014; with a special focus on the European Community 
Abstract:
Journal: European Accounting Review 
Pages: 469-473 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000044 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:469-473




Template-Type: ReDIF-Article 1.0
Author-Name: F. van der Wel 
Author-X-Name-First: F. 
Author-X-Name-Last: van der Wel 
Title: Financial reporting by Dutch banks 
Abstract:
Journal: European Accounting Review 
Pages: 474-477 
Issue: 2 
Volume: 1 
Year: 1992 
X-DOI: 10.1080/09638189200000045 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189200000045 
File-Format: text/html
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Handle: RePEc:taf:euract:v:1:y:1992:i:2:p:474-477




Template-Type: ReDIF-Article 1.0
Author-Name: Alain Mikol 
Author-X-Name-First: Alain 
Author-X-Name-Last: Mikol 
Title: The evolution of auditing and the independent auditor in France 
Abstract:
Journal: European Accounting Review 
Pages: 1-16 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:1-16




Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Title: A European true and fair view? 
Abstract:
  After a brief historical introduction, the paper examines the true and
 fair view (TFV) requirement in the Fourth Directive, and in the
 corresponding company legislation in UK, France and Germany. Differences
 and nuances are explored from a language and translation viewpoint and
 also related to pre-Fourth Direc tive requirements and culture. The extent
 of true harmonization is questionable. Recent experience and usage of TFV
 in the UK is critically described and related to the broader European
 context. The general drift of the argument is that countries are tending
 to interpret TFV in the context of national culture, national accounting
 tradition and national GAAP. From a properly European perspective there is
 a need for changes in attitude from all concerned. TFV and GAAP are living
 and dynamic concepts. They are affected by the cultures within which they
 are used. Homogeneous attitudes to such concepts imply homogeneous
 cultural contexts, and this raises questions of a most fundamental nature. 
Journal: European Accounting Review 
Pages: 17-46 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000002 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:17-46




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Walton 
Author-X-Name-First: Peter 
Author-X-Name-Last: Walton 
Title: Introduction: the true and fair view in British accounting 
Abstract:
  This article sets out to provide a framework against which to evaluate
 the true and fair view. It poses the question as to what the true and fair
 view might mean, and what significance it has. It analyses what the term
 means in the British accounting literature, how the meaning of such a term
 arises and how it may be transferred to other countries. It then considers
 what is the significance of the term in the political arena.1 
Journal: European Accounting Review 
Pages: 49-58 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:49-58




Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Title: A European true and fair view? 
Abstract:
  After a brief historical introduction, the paper examines the true and
 fair view (TFV) requirement in the Fourth Directive, and in the
 corresponding company legislation in UK, France and Germany. Differences
 and nuances are explore from a language and translation viewpoint and also
 related to pre-Fourth Directive requirements and culture. The extent of
 true harmonization is questionable. Recent experience and usage of TFV in
 the UK is critically described and related to the broader European
 context. The general drift of the argument is that countries are tending
 to interpret TFV in the context of national culture, national accounting
 tradition and national GAAP. From a properly European perspective there is
 a need for changes in attitude from all concerned. TFV and GAAP are living
 and dynamic concepts. They are affected by the cultures within which they
 are used. Homogeneous attitudes to such concepts imply homogeneous
 cultural contexts, and this raises questions of a most fundamental nature. 
Journal: European Accounting Review 
Pages: 59-80 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:59-80




Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Ordelheide 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Ordelheide 
Title: True and fair view 
Abstract:
Journal: European Accounting Review 
Pages: 81-90 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:81-90




Template-Type: ReDIF-Article 1.0
Author-Name: Alain Burlaud 
Author-X-Name-First: Alain 
Author-X-Name-Last: Burlaud 
Title: Commentaires sur l'article de David Alexander 'A European true and fair view?' 
Abstract:
Journal: European Accounting Review 
Pages: 91-94 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000006 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:91-94




Template-Type: ReDIF-Article 1.0
Author-Name: Alain Burlaud 
Author-X-Name-First: Alain 
Author-X-Name-Last: Burlaud 
Title: Commentary on the article by David Alexander 'A European true and fair view' 
Abstract:
Journal: European Accounting Review 
Pages: 95-98 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000007 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:95-98




Template-Type: ReDIF-Article 1.0
Author-Name: K. Van Hulle 
Author-X-Name-First: K. 
Author-X-Name-Last: Van Hulle 
Author-Name: K. U. Leuven 
Author-X-Name-First: K. U. 
Author-X-Name-Last: Leuven 
Title: Truth and untruth about true and fair: a commentary on 'A European true and fair view' comment 
Abstract:
Journal: European Accounting Review 
Pages: 99-104 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:99-104




Template-Type: ReDIF-Article 1.0
Author-Name: Neil Garrod 
Author-X-Name-First: Neil 
Author-X-Name-Last: Garrod 
Title: The new British accounting recommendation on segmental reporting by banks: a model for Europe? 
Abstract:
Journal: European Accounting Review 
Pages: 107-114 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:107-114




Template-Type: ReDIF-Article 1.0
Author-Name: Alicja Jaruga 
Author-X-Name-First: Alicja 
Author-X-Name-Last: Jaruga 
Title: Changing rules of accounting in Poland 
Abstract:
  Changes taking place in Poland and in other Central European countries
 mean a return to the free market economy and private ownership under
 democratic law. In these circumstances, new accounting regulations are
 necessary. In this paper some of the important questions covering the
 process of setting accounting regulations have been identified and
 discussed. The questions are as follows: - business law and accounting
 regulations; the sequence of changes; - the scope of accounting
 regulations; - EC Directives and the new Order on Accounting; -
 international accounting standards and their importance for changes in
 accounting regulations; - making use of the experience of West European
 nations; - Accounting regulations problems concerning the newly
 established Stock Exchange in Warsaw and the Securities Commission; - the
 recently promulgated 'Act on Financial Statements Auditing and the
 Auditors' (independent institution, and standards); - the role of the
 accounting profession in the rule-making process. 
Journal: European Accounting Review 
Pages: 115-126 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000010 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:115-126




Template-Type: ReDIF-Article 1.0
Author-Name: John Flower 
Author-X-Name-First: John 
Author-X-Name-Last: Flower 
Title: Book Reviews 
Abstract:
Journal: European Accounting Review 
Pages: 127-136 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000011 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:127-136




Template-Type: ReDIF-Article 1.0
Author-Name: Kristina Artsberg 
Author-X-Name-First: Kristina 
Author-X-Name-Last: Artsberg 
Title: Policy making and accounting change:influence on the choice of measurement principles in Swedish accounting 
Abstract:
Journal: European Accounting Review 
Pages: 141-144 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000013 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:141-144




Template-Type: ReDIF-Article 1.0
Author-Name: Igance De Beelde 
Author-X-Name-First: Igance 
Author-X-Name-Last: De Beelde 
Title: Accounting information and its use in a number of Belgian coal mines during the first half of the twenieth century 
Abstract:
Journal: European Accounting Review 
Pages: 145-147 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000014 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:145-147




Template-Type: ReDIF-Article 1.0
Author-Name: Jo&#xeb;l Branson 
Author-X-Name-First: Jo&#xeb;l 
Author-X-Name-Last: Branson 
Title: The consolidation of groups of companies: an examination of some accounting and tax aspects of the parent-subsidiary relationship 
Abstract:
Journal: European Accounting Review 
Pages: 147-150 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000015 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:147-150




Template-Type: ReDIF-Article 1.0
Author-Name: John Lazaridis 
Author-X-Name-First: John 
Author-X-Name-Last: Lazaridis 
Title: Finalcial analysis of the Greek air transport and railroad companiesx 
Abstract:
Journal: European Accounting Review 
Pages: 151-151 
Issue: 1 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:1:p:151-151




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Stark 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Stark 
Title: Problems in measuring the cash recovery rate and measurement error in estimates of the firm IRR 
Abstract:
  This paper considers the impact on estimates of the IRR derived from the
 cash recovery rate approach to the estimation of economic performance of
 an inability to observe the conceptually defined CRR from accounting data.
 In particular, it considers a typical proxy used in empirical applications
 of the CRR approach and asks the question &#x2014; under what
 circumstances will this proxy fail to measure the true CRR? Two
 circumstances are identified. First, the empirical CRR will not measure
 the true CRR when advertising and research expenditures exist which should
 be treated as part of the composite investment (and, hence, as investment
 expenditures) but are expensed in the accounting records -referred to as
 the capitalize/expense case. Second, the empirical CRR will not measure
 the true CRR when the composite investment is made up of projects with
 different lives &#x2014; referred to as the retirement case. For these two
 cases, relationships are developed between the proxy and the true CRR.
 From these relationships the impact of errors in measuring the CRR on
 estimates of the IRR are deduced. Analytically, it is demonstrated that,
 in the capitalize/expense case, the inability to measure the CRR produces
 measurement error in the IRR estimate that is monotonically and negatively
 related to the rate of investment growth. Further, as the proportion of
 expensed investment expenditures increases, measurement error increases if
 the investment growth rate is less than the IRR and decreases if the
 investment growth rate is greater than the IRR. In the retirement case, it
 is identified analytically that measurement error also will be
 monotonically and negatively related to the investment growth rate. This
 is the case even though the analyst is able to specify the basic
 relationship between investment outflows and subsequent cash inflows (the
 inability to spec ify this basic relationship is a problem considered in
 many papers on the CRR approach). Numerical examples suggest that these
 effects are not insignificant in size a priori. 
Journal: European Accounting Review 
Pages: 199-218 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000019 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:199-218




Template-Type: ReDIF-Article 1.0
Author-Name: Ruud Vergoossen 
Author-X-Name-First: Ruud 
Author-X-Name-Last: Vergoossen 
Title: The use and perceived importance of annual reports by investment analysts in the Netherlands 
Abstract:
  The research findings reported in this paper focus on the use and
 perceived importance of annual reports by investment analysts in the
 Netherlands. The study was held among the members of the Dutch Association
 of Investment Analysts by means of a postal questionnaire survey. The
 research findings are compared with those of similar studies in the United
 States, the United Kingdom and New Zealand. Three main categories of
 investment analysts are distin guished, viz. investment advisers,
 portfolio managers and directors/heads of department. The annual report
 appears to be a vital, though not sufficient source of information to
 investment analysts. However, there are some clear differences between the
 three categories concerning the use and perceived importance of (parts of)
 the annual report. The research findings are, to a large extent, consist
 ent with the results of similar studies among investment analysts from
 abroad. 
Journal: European Accounting Review 
Pages: 219-244 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:219-244




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Zambon 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Zambon 
Author-Name: Chiara Saccon 
Author-X-Name-First: Chiara 
Author-X-Name-Last: Saccon 
Title: Accounting change in Italy 
Abstract:
  The paper highlights the changes which are occurring in accounting
 regulation and in the accounting profession in Italy. This 'revolution' is
 analysed both in its 'technical' terms and in the light of the wider
 socio-economic context of the country. Some anomalies and contradictions
 affecting Italian accounting are pointed out and discussed. The concrete
 significance of those changes is ques tioned with reference to the
 day-to-day practice and social perception of accounting. In conclusion,
 drawing on this national situation, some methodolog ical remarks are made
 concerning the difficulties of an evaluatory perspective in the study of
 international accounting. 
Journal: European Accounting Review 
Pages: 245-284 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:245-284




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Walton 
Author-X-Name-First: Peter 
Author-X-Name-Last: Walton 
Title: Company law and accounting in nineteenth-century Europe 
Abstract:
Journal: European Accounting Review 
Pages: 286-291 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000022 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:286-291




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Nowotny 
Author-X-Name-First: Christian 
Author-X-Name-Last: Nowotny 
Author-Name: Elisabeth Gruber 
Author-X-Name-First: Elisabeth 
Author-X-Name-Last: Gruber 
Title: Austria 
Abstract:
Journal: European Accounting Review 
Pages: 292-297 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000023 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:292-297




Template-Type: ReDIF-Article 1.0
Author-Name: Yves De Ronge 
Author-X-Name-First: Yves 
Author-X-Name-Last: De Ronge 
Author-Name: Emmanuel Henrion 
Author-X-Name-First: Emmanuel 
Author-X-Name-Last: Henrion 
Author-Name: Claude Vael 
Author-X-Name-First: Claude 
Author-X-Name-Last: Vael 
Title: Belgium 
Abstract:
Journal: European Accounting Review 
Pages: 298-311 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000024 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:298-311




Template-Type: ReDIF-Article 1.0
Author-Name: Merete Christiansen 
Author-X-Name-First: Merete 
Author-X-Name-Last: Christiansen 
Title: Denmark 
Abstract:
Journal: European Accounting Review 
Pages: 312-318 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000025 
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:312-318




Template-Type: ReDIF-Article 1.0
Author-Name: Salme Nasi 
Author-X-Name-First: Salme 
Author-X-Name-Last: Nasi 
Title: Finland 
Abstract:
Journal: European Accounting Review 
Pages: 319-328 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000026 
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:319-328




Template-Type: ReDIF-Article 1.0
Author-Name: Alain Mikol 
Author-X-Name-First: Alain 
Author-X-Name-Last: Mikol 
Title: France 
Abstract:
Journal: European Accounting Review 
Pages: 329-334 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000027 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:329-334




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Schroer 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Schroer 
Title: Germany 
Abstract:
Journal: European Accounting Review 
Pages: 335-345 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000028 
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:335-345




Template-Type: ReDIF-Article 1.0
Author-Name: Kees Camfferman 
Author-X-Name-First: Kees 
Author-X-Name-Last: Camfferman 
Title: Netherlands 
Abstract:
Journal: European Accounting Review 
Pages: 346-352 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000029 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:346-352




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner Inchausti 
Author-X-Name-First: Begona Giner 
Author-X-Name-Last: Inchausti 
Title: Spain 
Abstract:
Journal: European Accounting Review 
Pages: 353-361 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000030 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:353-361




Template-Type: ReDIF-Article 1.0
Author-Name: Sven-Arne Nilsson 
Author-X-Name-First: Sven-Arne 
Author-X-Name-Last: Nilsson 
Author-Name: Martin Smiciklas 
Author-X-Name-First: Martin 
Author-X-Name-Last: Smiciklas 
Title: Sweden 
Abstract:
Journal: European Accounting Review 
Pages: 362-365 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000031 
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:362-365




Template-Type: ReDIF-Article 1.0
Author-Name: Ann-Kristin Koberg 
Author-X-Name-First: Ann-Kristin 
Author-X-Name-Last: Koberg 
Title: Switzerland 
Abstract:
Journal: European Accounting Review 
Pages: 366-369 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000032 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000032 
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:366-369




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Napier 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Napier 
Title: UK 
Abstract:
Journal: European Accounting Review 
Pages: 370-375 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000033 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:370-375




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner Inchausti 
Author-X-Name-First: Begona Giner 
Author-X-Name-Last: Inchausti 
Title: The Spanish accounting framework 
Abstract:
Journal: European Accounting Review 
Pages: 379-386 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000034 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:379-386




Template-Type: ReDIF-Article 1.0
Author-Name: K. Van Hulle 
Author-X-Name-First: K. 
Author-X-Name-Last: Van Hulle 
Title: Harmonization of accounting standards in the EC 
Abstract:
Journal: European Accounting Review 
Pages: 387-396 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000035 
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:387-396




Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Mandl 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Mandl 
Title: The new Austrian Financial Reporting Act 
Abstract:
Journal: European Accounting Review 
Pages: 397-402 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000036 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:397-402




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Zeff 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Zeff 
Title: International accounting principles and auditing standards 
Abstract:
Journal: European Accounting Review 
Pages: 403-410 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000037 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000037 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:403-410




Template-Type: ReDIF-Article 1.0
Author-Name: Roel Soeting 
Author-X-Name-First: Roel 
Author-X-Name-Last: Soeting 
Title: The Limperg Instituut 
Abstract:
Journal: European Accounting Review 
Pages: 412-413 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000039 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:412-413




Template-Type: ReDIF-Article 1.0
Author-Name: Claes Charpentier 
Author-X-Name-First: Claes 
Author-X-Name-Last: Charpentier 
Title: Management control in public service corporations 
Abstract:
Journal: European Accounting Review 
Pages: 427-429 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000042 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:427-429




Template-Type: ReDIF-Article 1.0
Author-Name: Kjell Henry Knivsfla 
Author-X-Name-First: Kjell Henry 
Author-X-Name-Last: Knivsfla 
Title: On the desirability of insider trading regulations in financial markets 
Abstract:
Journal: European Accounting Review 
Pages: 430-431 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000043 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:430-431




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Wouters 
Author-X-Name-First: Marc 
Author-X-Name-Last: Wouters 
Title: The use of cost information by managers when making short-term decisions 
Abstract:
Journal: European Accounting Review 
Pages: 432-436 
Issue: 2 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000044 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:2:p:432-436




Template-Type: ReDIF-Article 1.0
Author-Name: Carol Adams 
Author-X-Name-First: Carol 
Author-X-Name-Last: Adams 
Author-Name: Pauline Weetman 
Author-X-Name-First: Pauline 
Author-X-Name-Last: Weetman 
Author-Name: Sidney Gray 
Author-X-Name-First: Sidney 
Author-X-Name-Last: Gray 
Title: Reconciling national with international accounting standards 
Abstract:
  The IASC has suggested a number of ways by which listed companies could
 present financial statements that conform with International Accounting
 Standards (IAS). This paper considers the feasibility and usefulness of
 those options. In particular, the reconciliation of domestic financial
 statements to IAS, and the degree of harmonization likely to be achieved
 as a result, is examined by means of an empirical study of Finnish
 corporate reports. The reconciliations and other IAS information provided
 by the unique case of seventeen Finnish companies are examined in detail
 over a three-year period. Gray's index of conservatism (Gray, 1980) is
 used to examine the impact on profit and shareholders' equity of the
 various adjustments in the reconciliations.It is concluded that the
 insight provided by the IAS information is limited due to: the reduced
 quality of information provided regarding the Finnish (FAS) and IAS
 accounting policies followed; the combination of adjustments, some of
 which are material, included under 'other items'; the lack of an
 adjustment or explanation in some cases where FAS and IAS policies
 obviously differ; inadequate explanation as to the nature, magnitude and
 direction of the adjustments; and the lack of consistency in presentation.
 The authors conclude by suggesting some ways forward for the IASC in
 conjunction with the International Organization of Securities Commissions
 (IOSCO). 
Journal: European Accounting Review 
Pages: 471-494 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000048 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:471-494




Template-Type: ReDIF-Article 1.0
Author-Name: Niclas Hellman 
Author-X-Name-First: Niclas 
Author-X-Name-Last: Hellman 
Title: A comparative analysis of the impact of accounting differences on profits and return on equity 
Abstract:
  The purpose of this paper is to make a quantitative comparative analysis
 of differences between Swedish accounting practice and US GAAP. The
 empirical data consisted of eighty-four US GAAP reconciliations of income
 statements and shareholders' equity, disclosed in Swedish annual reports
 during 1981-90. Prior qualitative research has suggested that Swedish
 accounting practice is conservative compared with that in the USA.
 However, the empirical analysis of profits and return on equity provided
 little support for this hypothesis. Instead, there were indications of a
 less conservative accounting treatment in the Swedish accounts compared
 with US GAAP. The most material differences between Swedish profits and
 those calculated using US GAAP were caused by differences in treatment of
 foreign currency translation, income taxes, sale and leaseback
 transactions and business combinations. 
Journal: European Accounting Review 
Pages: 495-530 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000049 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000049 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:495-530




Template-Type: ReDIF-Article 1.0
Author-Name: Sara York Kenny 
Author-X-Name-First: Sara York 
Author-X-Name-Last: Kenny 
Author-Name: Robert Larson 
Author-X-Name-First: Robert 
Author-X-Name-Last: Larson 
Title: Lobbying behaviour and the development of international accounting standards 
Abstract:
  This paper studies the role of lobbying in an international (i.e.,
 harmonization) accounting standards setting and examines the IASC's
 process of promulgating International Accounting Standard (IAS) 31,
 'Financial Reporting of Interests in Joint Ventures'. Our study begins
 with an examination of the Exposure Draft (ED 35, 'Financial Reporting of
 Interests in Joint Ventures') preceding IAS 31 and analyses the lobbying
 efforts observed during the promulgation process. Consistent with prior
 literature, the paper analyses lobbyists and their lobbying positions.
 During the time frame of the study (1989 and 1990), the IASC changed its
 due process, which affords us the opportunity also to analyse the IASC's
 strategic approach to public input. Accordingly, this study incorporates
 aspects of institutional theory as it relates to strategic choice by
 organizations. The comment letters received by the IASC regarding ED 35
 were analysed using a form of content analysis. The analyses generally
 support the hypothesized relationships; namely, lobbying firms tend to be
 very large, and they lobby against any change in the status quo;
 professional and trade organizations lobby on behalf of their constituents
 and tend to support the majority positions held by those constituents; and
 the regulatory body (IASC) seeks acceptance from its constituency by
 adapting its position to that which is more palatable to the lobbyists.
 The interaction between respondents and the IASC is consistent with an
 institutional theory explanation of organizational change and adaptation
 to environment pressures. Few individual firms lobbied the IASC Rather,
 the bulk of the respondents to ED 35 were professional associations and
 organizations. The result contrasts markedly with both our expectations
 and prior research involving lobbying of the FASB. The dearth of corporate
 respondents to ED 35 implies that multinational corporations do not yet
 see the IASC as a serious regulatory organization. Further, few legal,
 governmental or regulatory organizations required compliance with IASs
 during 1989 and 1990, when IAS 31 was being deliberated, 
Journal: European Accounting Review 
Pages: 531-554 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000050 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000050 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:531-554




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Wallage 
Author-X-Name-First: Philip 
Author-X-Name-Last: Wallage 
Title: Internationalising Audit: 
Abstract:
  This article reports the results of a detailed study into the audit
 approaches of fifteen audit firms located in the Netherlands. Through
 using audit firm manuals, questionnaires and other materials the audit
 approaches were analysed and compared to International Standards on
 Auditing (ISAs). It was found that the degree of international influence
 on the audit approaches of the specific firms possesses explanatory value
 with regard to the level of conformity with the ISAs. Notwithstanding that
 most specific Dutch elements in audit approaches are disappearing, the
 remaining elements can be understood in the context of the historical
 evolution of auditing in the Netherlands. 
Journal: European Accounting Review 
Pages: 555-578 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000051 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000051 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:555-578




Template-Type: ReDIF-Article 1.0
Author-Name: Jens Elling 
Author-X-Name-First: Jens 
Author-X-Name-Last: Elling 
Title: Financial reporting in the Nordic countries 
Abstract:
Journal: European Accounting Review 
Pages: 581-584 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000053 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:581-584




Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Rundfelt 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Rundfelt 
Title: Standard setting in Sweden 
Abstract:
Journal: European Accounting Review 
Pages: 585-591 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000054 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000054 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:585-591




Template-Type: ReDIF-Article 1.0
Author-Name: Pertti Kettunen 
Author-X-Name-First: Pertti 
Author-X-Name-Last: Kettunen 
Title: Financial accounting and reporting in Finland 
Abstract:
Journal: European Accounting Review 
Pages: 592-602 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000055 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000055 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:592-602




Template-Type: ReDIF-Article 1.0
Author-Name: Merete Christiansen 
Author-X-Name-First: Merete 
Author-X-Name-Last: Christiansen 
Title: Accounting regulation in Denmark 
Abstract:
Journal: European Accounting Review 
Pages: 603-616 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000056 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000056 
File-Format: text/html
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Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:603-616




Template-Type: ReDIF-Article 1.0
Author-Name: Atle Johnsen 
Author-X-Name-First: Atle 
Author-X-Name-Last: Johnsen 
Title: Accounting regulation in Norway 
Abstract:
Journal: European Accounting Review 
Pages: 617-626 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:617-626




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Zeff 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Zeff 
Author-Name: Jesse Jones 
Author-X-Name-First: Jesse 
Author-X-Name-Last: Jones 
Title: Some reflections on Company Financial Reporting 
Abstract:
Journal: European Accounting Review 
Pages: 627-636 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000058 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000058 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:627-636




Template-Type: ReDIF-Article 1.0
Author-Name: Aurore Moroncini 
Author-X-Name-First: Aurore 
Author-X-Name-Last: Moroncini 
Title: Belgin natural resource accounting 
Abstract:
Journal: European Accounting Review 
Pages: 637-638 
Issue: 3 
Volume: 2 
Year: 1993 
X-DOI: 10.1080/09638189300000059 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189300000059 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:2:y:1993:i:3:p:637-638




Template-Type: ReDIF-Article 1.0
Author-Name: Miles Gietzmann 
Author-X-Name-First: Miles 
Author-X-Name-Last: Gietzmann 
Author-Name: Michael Selby 
Author-X-Name-First: Michael 
Author-X-Name-Last: Selby 
Title: Cost-variance-based control with noisy observation 
Abstract:
  We develop a model of managerial planning and control in an environment
 subject to noisy observation. Our paper differs from other models with
 noisy observation by focusing on the allocation of a scarce corporate
 resource. We show that linear performance appraisal is optimal in the
 noisy observation environment. An application of our results facilitates
 comparison between accounting and engineering-based planning and control
 paradigms. 
Journal: European Accounting Review 
Pages: 1-14 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000001 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Poul Israelsen 
Author-X-Name-First: Poul 
Author-X-Name-Last: Israelsen 
Title: ABC and Variability Accounting Differences and potential benefits of integration 
Abstract:
  Activity-Based Costing (ABC) started out as a vehicle for (i) improved
 product costing for use in pricing, switched later to (ii) profit
 priorities using hierarchies of cost assignment, and now focuses on (iii)
 accounting for capacity constraints situations. Firstly, the paper
 demonstrates that the data requirements for these three different uses of
 ABC can be met by recording the following characteristics of resource
 utilization in a relational database: quantitative -non-monetary
 -utilization in the form of 'type of production factor', 'organizational
 unit' and the immediate 'objective for the use of resources'; discharge
 horizon, absolute and relative divisibility of production factors
 employed; and assignment of costs to classification objects, observing
 principles of non-arbitrariness. These features are utilized in
 'Variability Accounting'. Secondly, the paper argues that, in complying
 with these principles, the evaluation of improvements in cost-accounting
 systems is on much more solid ground than if system changes are evaluated
 in terms of the resulting conse-quences for full-cost product costs. Based
 on these findings, the paper concludes that variability accounting can
 serve as a source of inspiration for constructors of ABC systems when the
 various versions are merged into an integrated cost system based on
 intercon-nected databases. It is also concluded that those variability
 accounting users with complex sales/distribution and production structures
 may find inspiration in ABC to identify areas in need of improved
 behaviour, although more research is required in this area. 
Journal: European Accounting Review 
Pages: 15-47 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000002 
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Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Pfaff 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Pfaff 
Title: On the allocation of overhead costs 
Abstract:
  This paper analyses optimal overhead allocation in a simple one-period
 setting with several divisions (production, sales or service departments).
 At the begin-ning of the period, headquarters has to decide on the
 procurement of a common input. The divisions possess private information
 on their respective marginal profit expectations of the common input. The
 objective of headquarters is to determine the most efficient overhead
 allocation mechanism. Different mechan-isms are compared. The conclusion
 is that the non-allocation of the common costs leads to a presentation of
 excessive profit expectations by the divisional managers and will thus
 induce an overinvestment in the common input. The Groves scheme prevents
 such a misallocation of resources only if collusion is precluded. In
 contrast, full-cost allocation leads to the first-best solution if
 allocation is based on a measure that ideally approximates the divisions'
 pro-portion of marginal profitability of the input. Thus, in the case of
 homogeneous divisions which benefit equally from the common input an equal
 allocation is optimal. In the case that divisions with higher profits
 benefit more from a common input, the allocation of overhead costs
 according to the divisional profits observable at the end of the period
 ('ability-to-bear' principle) can be optimal. 
Journal: European Accounting Review 
Pages: 49-70 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000003 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:49-70




Template-Type: ReDIF-Article 1.0
Author-Name: Alfred Wagenhofer 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Wagenhofer 
Title: Transfer pricing under asymmetric information 
Abstract:
  This paper analyses optimal transfer prices in a firm organized in two
 divisions. The production costs of the divisions are their respective
 private information. The objective of headquarters is to determine the
 transfer pricing method that maximizes total profit less managers'
 compensation. Managers are interested in their current compensation and in
 the market evaluation of their experience. In this setting, the paper
 discusses why particular transfer pricing methods found in practice and
 literature may induce-inefficiencies, and it identifies conditions under
 which each method is preferable. Major results are: a market-based
 transfer price does not implement the first-best solution if there are
 benefits from internal trade; cost-based transfer,prices may achieve
 first-best, and they are preferable to negotiated transfer prices if
 communication is cost-less; dual transfer prices do not implement the
 first-best solution, as long as collusion cannot be discouraged. 'There
 are two truisms in business. Transfer prices are wrong and charges for
 corporate overhead are too high.'1 
Journal: European Accounting Review 
Pages: 71-103 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000004 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:71-103




Template-Type: ReDIF-Article 1.0
Author-Name: Apostolos Ballas 
Author-X-Name-First: Apostolos 
Author-X-Name-Last: Ballas 
Title: Accounting in Greece 
Abstract:
Journal: European Accounting Review 
Pages: 107-121 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000005 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:107-121




Template-Type: ReDIF-Article 1.0
Author-Name: Lionel Collins 
Author-X-Name-First: Lionel 
Author-X-Name-Last: Collins 
Title: Revaluation of assets in France 
Abstract:
Journal: European Accounting Review 
Pages: 122-131 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000006 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jan Schoonderbeek 
Author-X-Name-First: Jan 
Author-X-Name-Last: Schoonderbeek 
Title: Setting accounting standards in the Netherlands 
Abstract:
Journal: European Accounting Review 
Pages: 132-142 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000007 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:132-142




Template-Type: ReDIF-Article 1.0
Author-Name: Hilda Theunisse 
Author-X-Name-First: Hilda 
Author-X-Name-Last: Theunisse 
Title: Financial reporting in EC countries 
Abstract:
Journal: European Accounting Review 
Pages: 143-162 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000008 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:143-162




Template-Type: ReDIF-Article 1.0
Author-Name: G. W. J. M. Kampschoer 
Author-X-Name-First: G. W. J. M. 
Author-X-Name-Last: Kampschoer 
Title: Doctoral Section 
Abstract:
Journal: European Accounting Review 
Pages: 163-165 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000009 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:163-165




Template-Type: ReDIF-Article 1.0
Author-Name: Liangqi Lin 
Author-X-Name-First: Liangqi 
Author-X-Name-Last: Lin 
Title: Economic determinants of voluntary accounting choices for research and development expenditures in Belgium 
Abstract:
Journal: European Accounting Review 
Pages: 166-167 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000010 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:166-167




Template-Type: ReDIF-Article 1.0
Author-Name: Kai-Uwe Marten 
Author-X-Name-First: Kai-Uwe 
Author-X-Name-Last: Marten 
Title: Auditor change: results of an empirical study of the auditing market in the context of agency theory 
Abstract:
Journal: European Accounting Review 
Pages: 168-171 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000011 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:168-171




Template-Type: ReDIF-Article 1.0
Author-Name: Araceli Mora 
Author-X-Name-First: Araceli 
Author-X-Name-Last: Mora 
Title: The information content of accounting data for investment decisions 
Abstract:
Journal: European Accounting Review 
Pages: 171-173 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000012 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:171-173




Template-Type: ReDIF-Article 1.0
Author-Name: Saverio Bozzolan 
Author-X-Name-First: Saverio 
Author-X-Name-Last: Bozzolan 
Title: European financial statement data bases: methods and perspectives 
Abstract:
Journal: European Accounting Review 
Pages: 175-177 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000013 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:175-177




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Serra 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Serra 
Title: III Cost International Congeress I National Congress of the Spanish Management Accounting Association 
Abstract:
Journal: European Accounting Review 
Pages: 178-180 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000014 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:178-180




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Ignacio Martinez Churiaque 
Author-X-Name-First: Jose Ignacio Martinez 
Author-X-Name-Last: Churiaque 
Title: VII Congeress of the Asociation Espanola de Contabilidad y Administraton de Empresas 
Abstract:
Journal: European Accounting Review 
Pages: 180-182 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000015 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:180-182




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Jegers 
Author-X-Name-First: Marc 
Author-X-Name-Last: Jegers 
Title: Intensive advanced course and workshop on financial accounting 
Abstract:
Journal: European Accounting Review 
Pages: 183-183 
Issue: 1 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000016 
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Handle: RePEc:taf:euract:v:3:y:1994:i:1:p:183-183




Template-Type: ReDIF-Article 1.0
Author-Name: Keith Robson 
Author-X-Name-First: Keith 
Author-X-Name-Last: Robson 
Title: The discourse of inflation accounting 
Abstract:
  Why does inflation accounting become a problem? This paper examines the
 issue of economic representation in an inflationary environment that is
 conventionally assumed to answer this question. By identifying the
 problems of conceptual underdetermination in operationalizing economic
 concepts of income in inflation accounting, the paper proposes that closer
 attention be paid to the calculative and institutionalized dynamics of
 inflation accounting. The paper concludes by proposing tentative
 suggestions for ways of conceptualizing the relationships between
 accounting and economics. 
Journal: European Accounting Review 
Pages: 195-214 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000018 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:195-214




Template-Type: ReDIF-Article 1.0
Author-Name: Per Thorell 
Author-X-Name-First: Per 
Author-X-Name-Last: Thorell 
Author-Name: Geoffrey Whittington 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Whittington 
Title: The harmonization of accounting within the EU 
Abstract:
  The central concern of this paper is the international harmonization of
 financial accounting standards, and, in particular, the respective roles
 in this process of the EU, the IASC and national standard setters. The
 institutional framework, historical background and current achievements of
 accounting regulation by both the EU and the IASC are surveyed and
 compared. Current and prospective developments are identified, and it is
 suggested that a critical phase has now been reached in the relationship
 between the two bodies. The role of national standard-setting bodies is
 also considered, and the two authors offer their individual views on the
 problems of international accounting harmonization from the perspectives
 of their own countries, Sweden and the UK respectively. The paper
 concludes with a discussion of policies which may enable the national and
 international standard setters to work in a mutually supportive rather
 than a competitive manner. 
Journal: European Accounting Review 
Pages: 215-240 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000019 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:215-240




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony G. Hopwood 
Author-X-Name-First: Anthony G. 
Author-X-Name-Last: Hopwood 
Title: Some reflections on 'The harmonization of accounting within the EU' 
Abstract:
  Using the Thorell and Whittington analysis of European and international
 accounting as a basis, consideration is given to a number of important but
 neglected issues. The discussion focuses on the need to understand better
 the processes of supranational accounting policy-making, the significant
 role played by the audit industry and its agents, and the distancing of
 actual users from the forums of influence. 
Journal: European Accounting Review 
Pages: 241-254 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000020 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:241-254




Template-Type: ReDIF-Article 1.0
Author-Name: Luca Zan 
Author-X-Name-First: Luca 
Author-X-Name-Last: Zan 
Title: Toward a history of accounting histories 
Abstract:
  In recent years there has been increasing recognition of the marked
 national differences in approaches to accounting. What is less clearly
 appreciated is how accounting historiography is also fragmented into
 different national traditions,with diverse patterns and frameworks for
 reconstructing and interpreting accounting's evolution. The prominence
 given to accounting theory and practice may vary in different historical
 periods, not least in terms of the emphasis given to the contribution of
 different scholars and schools of thought in the evolution of accounting
 theory. This article concentrates on the Italian tradition of accounting
 from the time of Paciolo, and on how Italian accounting historiography has
 depicted the evolution of this tradition; it critically questions the
 periodization generally adopted, the interpretations made of the relative
 roles played by non-Italians and Italians in the evolution of accounting
 ideas down to the mid-nineteenth century, and the ways in which the
 contribution of more recent authors and schools of thought have been
 variously evaluated. It suggests that the emergence of national
 idiosyncrasies in accounting historiography may be seen as part of a wider
 process of institutionalization, and the creation of modern disciplinary
 identities and practices. 
Journal: European Accounting Review 
Pages: 255-310 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000021 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:255-310




Template-Type: ReDIF-Article 1.0
Author-Name: Danuta Krzywda 
Author-X-Name-First: Danuta 
Author-X-Name-Last: Krzywda 
Author-Name: Derek Bailey 
Author-X-Name-First: Derek 
Author-X-Name-Last: Bailey 
Author-Name: Marek Schroeder 
Author-X-Name-First: Marek 
Author-X-Name-Last: Schroeder 
Title: Financial reporting by Polish listed companies for 1991 
Abstract:
Journal: European Accounting Review 
Pages: 311-328 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000022 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:311-328




Template-Type: ReDIF-Article 1.0
Author-Name: Walter P. Schuetze 
Author-X-Name-First: Walter P. 
Author-X-Name-Last: Schuetze 
Title: The politics of mutual recognition 
Abstract:
Journal: European Accounting Review 
Pages: 329-353 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000023 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:329-353




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Mattessich 
Author-X-Name-First: Richard 
Author-X-Name-Last: Mattessich 
Title: Towards an understanding of the development ofaccounting: papers from the seventeenth congress of the EAA 
Abstract:
Journal: European Accounting Review 
Pages: 354-374 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000024 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:354-374




Template-Type: ReDIF-Article 1.0
Author-Name: A. Oosenbrug 
Author-X-Name-First: A. 
Author-X-Name-Last: Oosenbrug 
Title: Life assurer and company tax: technicalprovisions for life assurers and fiscal profitdetermination in the Netherlands 
Abstract:
Journal: European Accounting Review 
Pages: 381-384 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000026 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:381-384




Template-Type: ReDIF-Article 1.0
Author-Name: Hanno J. E. Roberts 
Author-X-Name-First: Hanno J. E. 
Author-X-Name-Last: Roberts 
Title: Accountability and responsibility: the influence of organization design on management accounting 
Abstract:
Journal: European Accounting Review 
Pages: 384-388 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000027 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:384-388




Template-Type: ReDIF-Article 1.0
Author-Name: Ossi Wikman 
Author-X-Name-First: Ossi 
Author-X-Name-Last: Wikman 
Title: The company investment process and factors that influence it 
Abstract:
Journal: European Accounting Review 
Pages: 388-390 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000028 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:388-390




Template-Type: ReDIF-Article 1.0
Author-Name: Johann Wolfgang 
Author-X-Name-First: Johann 
Author-X-Name-Last: Wolfgang 
Title: Conference Reports 
Abstract:
Journal: European Accounting Review 
Pages: 391-394 
Issue: 2 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000029 
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Handle: RePEc:taf:euract:v:3:y:1994:i:2:p:391-394




Template-Type: ReDIF-Article 1.0
Author-Name: Alnoor Bhimani 
Author-X-Name-First: Alnoor 
Author-X-Name-Last: Bhimani 
Title: Accounting enlightenment in the age of reason 
Abstract:
  Scholars have in the past explored accounting transformations by
 appealing to a variety of theoretical positions, including notions of
 functional imperatives and economic ideals.In contrast, accounting change
 is analysed here as arising from a dynamic of both strategic pursuits and
 indeterminate processes. The concern is especially with the role of
 individuals' personal proclivities and socio-cultural priorities as well
 as the conditioning influence of wider discursive categories on
 accounting.The vehicle for the study is provided by information on
 accounting controls within a French company during the eighteenth century
 and part of the nineteenth century which represents a time perifid_ayer
 which French society underwent important political, social and eetfnoinic
 changes.The essay specifically considers the social pursuits of bourgeois
 and noble shareholders and the institutional changes in economic thinking
 from mercantilism to economic liberalism.The analysis suggests that a
 confluence of inter al and external forces, some strategic and others
 circumstantial, shape organizational accounting. Further, although
 accounting can be seen to be conditioned by social effects, certain facets
 of social change can themselves be made more visible by examining shifts
 in accounting practices. 
Journal: European Accounting Review 
Pages: 399-442 
Issue: 3 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000030 
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Handle: RePEc:taf:euract:v:3:y:1994:i:3:p:399-442




Template-Type: ReDIF-Article 1.0
Author-Name: Colin Drury 
Author-X-Name-First: Colin 
Author-X-Name-Last: Drury 
Author-Name: Mike Tayles 
Author-X-Name-First: Mike 
Author-X-Name-Last: Tayles 
Title: Product costing in UK manufacturing organizations 
Abstract:
  This paper reports and comments on the findings from a questionnaire
 survey on the product costing practices used by 260 UK manufacturing
 companies. The aims of the paper are (1) to provide evidence to ascertain
 the extent to which recent criticisms of product costing can be judged and
 (2) to compare and comment upon the theory and practice of product
 costing. The survey findings indicate that product costs computed to meet
 inventory valuation requirements are widely used for decision-making and
 internal profit measurement. The majority of firms, however, used both
 full costs and variable costs for decision-making and the findings suggest
 that product cost information is used in a more flexible manner than that
 depicted by previous studies. The paper reports on the methods used by
 companies to compute full product costs. Most organizations used
 questionable overhead allocations that are likely to result in the
 reporting of distorted product costs. The concluding sections of the paper
 discuss the possible reasons why observed practices differ from
 conventional wisdom and suggest areas where further research is required. 
Journal: European Accounting Review 
Pages: 443-470 
Issue: 3 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000031 
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Handle: RePEc:taf:euract:v:3:y:1994:i:3:p:443-470




Template-Type: ReDIF-Article 1.0
Author-Name: Michel Lebas 
Author-X-Name-First: Michel 
Author-X-Name-Last: Lebas 
Title: Managerial accounting in France Overview of past tradition and current practice 
Abstract:
  Managerial accounting in France is rooted in two contradictory, yet
 complement-tary, approaches: (1) a normative cost analysis approach
 focusing on productcosting for valuation purposes and (2) an ad hoc,
 physically based, information-for-decision-making approach called the
 Tableau de Bord. This paper briefly reviews some of the historical origins
 of these approachesbefore describing them. The cost analysis approach is
 well codified and has beenjointly defined by businesses and government
 authorities. It offers a quasi-normativeframework for cost calculation
 that has been widely accepted and implemented sincethe end of World War
 11. Its primary focus, until about fifteen years ago, was thecalculation
 of product cost and the valuation of inventory. Recent evolutions
 haveopened the system to cost analysis for decision making. The Tableau de
 Bordapproach, a managerial 'instrument panel' approach to management of
 the firm, has emerged spontaneously from the needs of manufac-turing
 engineers and managers. It has evolved over the years (mainly since the
 early 1960s) from a loosely defined tool into a formally structured
 instrument with well-defined purpose, content and form The concluding
 section shows how the evolution of both approaches leads to a synthesis
 which is very similar to activity-based management and activity-based cost
 management. 
Journal: European Accounting Review 
Pages: 471-488 
Issue: 3 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000032 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000032 
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Handle: RePEc:taf:euract:v:3:y:1994:i:3:p:471-488




Template-Type: ReDIF-Article 1.0
Author-Name: Salme Nasi 
Author-X-Name-First: Salme 
Author-X-Name-Last: Nasi 
Title: Development of cost accounting in Finland from the last century to the 1960s 
Abstract:
  This article examines the development of cost accounting in Finland from
 the middle of the last century to the 1960s. The main concern is the
 development of cost accounting thought, not practice. This is an exercise
 in historical research,the study of the past and change, in which
 the'empirical source material is accounting literature in Finnish:
 research reports, textbooks, documents used for legislative purposes and
 articles in professional journals. In particular, an attempt is made to
 identify the turning points in accounting thought and to make the changes
 that occurred more comprehensible by illuminating their historical
 con-text, or, as historians say, to study matters, their origin and
 development from a genetic time perspective. 
Journal: European Accounting Review 
Pages: 489-514 
Issue: 3 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000033 
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Handle: RePEc:taf:euract:v:3:y:1994:i:3:p:489-514




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Riebel 
Author-X-Name-First: Paul 
Author-X-Name-Last: Riebel 
Title: Core features of the 'Einzelkosten- und Deckungsbeitragsrechnung' 
Abstract:
  The origin of this decision-oriented approach stems from the
 confrontation with the needs of planning and controlling of decisions and
 actions in industries with joint costs and joint revenues and, moreover,
 the analysis of the requirements of different purposes and situations. The
 special aim was the development of a true reconstruction of reality in
 accounting &#x2014; as good as possible &#x2014; which bears
 intersubjective examination ex post. The company business is seen as a
 multidimensional progressing network of sequentially made decisions and
 actions and other effects which have mostly a temporal dimension and
 structure. It requires a multitude of accounting views to depict this
 dynamic multi-faceted complex. One essential basis is the analysis of
 decision-relevant direct and indirect consequences and their 'true'
 representation depicted in accounting. This leads to a strict criterion to
 judge the traceability of accounting figures to the object considered: the
 identity principle. Anothe essential basis is the separation between
 recording and keeping elementary data with their attributes in a
 purpose-neutral accounting database (Grundrechnung) and the use of these
 in problem-specific data applications From the aspect of this concept each
 attempt to calculate net profits must be arbitrary. The principle of
 decision-relevant consequences and the identity prin-ciple rather demand
 multistep and multidimensional views of contribution anal-ysis ex anteand
 ex post. Additionally a bundle of contribution budgets and other
 contribution targets is needed 
Journal: European Accounting Review 
Pages: 515-546 
Issue: 3 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000034 
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Handle: RePEc:taf:euract:v:3:y:1994:i:3:p:515-546




Template-Type: ReDIF-Article 1.0
Author-Name: Clive Emmanuel 
Author-X-Name-First: Clive 
Author-X-Name-Last: Emmanuel 
Author-Name: Neil Garrod 
Author-X-Name-First: Neil 
Author-X-Name-Last: Garrod 
Title: Segmental reporting in the UK 
Abstract:
Journal: European Accounting Review 
Pages: 547-562 
Issue: 3 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000035 
File-Format: text/html
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Handle: RePEc:taf:euract:v:3:y:1994:i:3:p:547-562




Template-Type: ReDIF-Article 1.0
Author-Name: Rob Gray 
Author-X-Name-First: Rob 
Author-X-Name-Last: Gray 
Author-Name: Don Stone 
Author-X-Name-First: Don 
Author-X-Name-Last: Stone 
Title: Environmental accounting and auditing in Europe 
Abstract:
Journal: European Accounting Review 
Pages: 581-590 
Issue: 3 
Volume: 3 
Year: 1994 
X-DOI: 10.1080/09638189400000037 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189400000037 
File-Format: text/html
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Handle: RePEc:taf:euract:v:3:y:1994:i:3:p:581-590




Template-Type: ReDIF-Article 1.0
Author-Name: John Forker 
Author-X-Name-First: John 
Author-X-Name-Last: Forker 
Author-Name: Margaret Greenwood 
Author-X-Name-First: Margaret 
Author-X-Name-Last: Greenwood 
Title: European harmonization and the true and fair view 
Abstract:
  In all financial statements the amount of flexibility which can be
 exercised in presentation is limited by accounting regulations, one of the
 purposes of which is to ensure comparability across firms. This has given
 rise to a debate within the UK and the EU as to the optimum balance
 between flexibility and comparability. This study uses the evolution of UK
 accounting policy for long-term contracts as a vehicle for investigating
 the role of the true and fair view (TFV) in the develop-ment of this
 debate. Within the context of EU harmonization insight is also obtained
 into the consequences of using accounting bases for assessing tax
 liab-ilities. The role of TFV in UK accounting is assessed by analysis of
 the Accounting Standards Committee (ASC) Archive and the responses to ASC
 exposure drafts. Net costs of compliance with regulated requirements are
 identi-fied and the ranking obtained is used to test the sensitivity of
 compliance by com-panies during 1981-90 to changes in the costs of
 compliance, particularly with regard to differing interpretations of EU
 requirements by the ASC and the Department of Trade and Industry. The
 findings are that, contrary to a widely held view, the TFV plays a central
 role in shaping UK accounting policy by pre-serving the traditional
 flexibility in the application of accounting conventions. It is concluded
 that a shift to a narrow application of the TFV in exceptional
 cir-cumstances is now appropriate and that the task of accounting
 regulators, and the path towards harmonization, will be eased if
 accounting bases for recognition of income are not used for tax purposes. 
Journal: European Accounting Review 
Pages: 1-32 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000001 
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:1-32




Template-Type: ReDIF-Article 1.0
Author-Name: Margaret Lamb 
Author-X-Name-First: Margaret 
Author-X-Name-Last: Lamb 
Title: When is a group a group? 
Abstract:
  The European Union (EU) has long recognized that corporate tax
 differences dis-tort, to some extent, trade between and investment across
 the borders of member states. While significant differences remain,
 convergence of important aspects of corporate tax regimes has occurred.
 Other studies have considered convergence of tax rates, systems and
 elements of individual company tax bases. This paper evaluates EU rules
 concerning a key element of corporate tax base calculation: tax group
 recognition. Functional recognition of tax groups &#x2014; for substantial
 tax reliefs, for miti-gation of double taxation and for anti-avoidance
 purposes &#x2014; has implications for the calculation of effective
 corporate tax cost. Structural recognition employs dis-tinct tax group
 'concepts' that may influence choice of organizational structures. Both
 aspects of recognition may create economic distortion. Although many
 differences persist, some convergence of group substantial tax reliefs
 toward a de jure near-complete control concept is observed. Relief of
 double taxation on inter-corporate dividends tends to employ a de jure
 permanent participation concept. Anti-avoidance legislation adopts a
 broader concept, usually de facto common control. The forces promoting
 convergence, including EU accounting harmonization, are identified. More
 explicit and consistent use of tax group concepts would, the paper
 concludes, improve EU direct tax harmoni-zation initiatives. 
Journal: European Accounting Review 
Pages: 33-80 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000002 
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:33-80




Template-Type: ReDIF-Article 1.0
Author-Name: Jacques Richard 
Author-X-Name-First: Jacques 
Author-X-Name-Last: Richard 
Title: General introduction 
Abstract:
Journal: European Accounting Review 
Pages: 81-86 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000003 
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:81-86




Template-Type: ReDIF-Article 1.0
Author-Name: Jacques Richard 
Author-X-Name-First: Jacques 
Author-X-Name-Last: Richard 
Title: The evolution of accounting chart models in Europe from 1900 to 1945 
Abstract:
Journal: European Accounting Review 
Pages: 87-124 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000004 
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:87-124




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Chauveau 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Chauveau 
Title: The Spanish Plan General de Contabilidad 
Abstract:
Journal: European Accounting Review 
Pages: 125-138 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000005 
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:125-138




Template-Type: ReDIF-Article 1.0
Author-Name: Ann-Kristin Achleitner 
Author-X-Name-First: Ann-Kristin 
Author-X-Name-Last: Achleitner 
Title: Latest developments in Swiss regulation of financial reporting 
Abstract:
Journal: European Accounting Review 
Pages: 141-154 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000006 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:141-154




Template-Type: ReDIF-Article 1.0
Author-Name: Neil Garrod 
Author-X-Name-First: Neil 
Author-X-Name-Last: Garrod 
Author-Name: Isabel Sieringhaus 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Sieringhaus 
Title: European Union accounting harmonization 
Abstract:
Journal: European Accounting Review 
Pages: 155-164 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000007 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:155-164




Template-Type: ReDIF-Article 1.0
Author-Name: John Flower 
Author-X-Name-First: John 
Author-X-Name-Last: Flower 
Title: Book review 
Abstract:
Journal: European Accounting Review 
Pages: 165-175 
Issue: 1 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000008 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:1:p:165-175




Template-Type: ReDIF-Article 1.0
Author-Name: Linda Hantrais 
Author-X-Name-First: Linda 
Author-X-Name-Last: Hantrais 
Title: A comparative perspective on gender and accountancy 
Abstract:
  Different theoretical approaches have been used to examine the process of
 assimi-lation of women into professional occupations. A Franco-British
 comparative study of women's incorporation into accountancy is used to
 test the explanatory value of different bodies of theory. The research
 suggests that the integration of women into the profession may have
 progressed further in France than in Britain, and that the process is
 influenced by societal characteristics. Differences in the relationship
 between training, the role of professional associations, organiza-tional
 structure and the public policy environment are shown to affect women's
 choices and career opportunities. 
Journal: European Accounting Review 
Pages: 197-215 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000011 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:197-215




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Hoarau 
Author-X-Name-First: Christian 
Author-X-Name-Last: Hoarau 
Title: International accounting harmonization 
Abstract:
  This article will show that international accounting harmonization is
 predominantly harmonization with the Anglo-Saxon accounting model and
 [disregards] the economic, social and cultural environment of other
 accounting systems. It intends to show that in France international
 harmonization has broken down the homogeneity of the accounting model.
 This process has resulted in a reduction of the social functions of
 accounting. Finally, it seeks to suggest an approach towards harmonization
 that will be more respectful of different identities: the mutual
 recognition of accounting standards with benchmarks. This new approach
 would consist of developing a set of international accounting rules that
 would prescribe a single accounting treatment for each issue covered, but
 which at the same time would allow companies in each country the choice of
 publishing financial statements drawn up according to national
 rules,subject to enclosing the reconciliation schedules with international
 standards. This approach would enable companies to comply with their own
 national rules while at the same time ensuring the comparability of their
 financial statements at an international level. 
Journal: European Accounting Review 
Pages: 217-233 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000012 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:217-233




Template-Type: ReDIF-Article 1.0
Author-Name: Axel Haller 
Author-X-Name-First: Axel 
Author-X-Name-Last: Haller 
Title: International accounting harmonization 
Abstract:
Journal: European Accounting Review 
Pages: 235-247 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000013 
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:235-247




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Nobes 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Nobes 
Title: International accounting harmonization 
Abstract:
Journal: European Accounting Review 
Pages: 249-254 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000014 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:249-254




Template-Type: ReDIF-Article 1.0
Author-Name: Leo van der Tas 
Author-X-Name-First: Leo 
Author-X-Name-Last: van der Tas 
Title: International accounting harmonization 
Abstract:
Journal: European Accounting Review 
Pages: 255-260 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000015 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:255-260




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Raffournier 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Raffournier 
Title: The determinants of voluntary financial disclosure by Swiss listed companies 
Abstract:
  The aim of this paper is to relate the extent of disclosure in the annual
 reports of Swiss listed companies to possible determinants representing
 agency and political costs. The choice of Switzerland is based on the fact
 that, prior to the implementation of the new company law on 1 July 1992
 Swiss disclosure requirements were very low, so that the major part of the
 content of the annual report could be considered as voluntarily disclosed.
 The sample includes the 1991 annual report of 161 industrial and
 commercial firms. The extent of disclosure is measured by an index based
 on information whose disclosure is required by the Fourth and Seventh EU
 Directives. Independent variables are measures of company size, leverage,
 profitability, ownership structure, internationality, auditor's size,
 percentage of fixed assets and industry type. Relations are assessed using
 univariate analyses and multiple regressions. The main result is that size
 and internationality play a major role in the disclosure policy of firms,
 large and internationally diversified companies tending to disclose more
 information than small purely domestic enterprises. 
Journal: European Accounting Review 
Pages: 261-280 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000016 
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:261-280




Template-Type: ReDIF-Article 1.0
Author-Name: Wilfried Bechtel 
Author-X-Name-First: Wilfried 
Author-X-Name-Last: Bechtel 
Title: Charts of accounts in Germany 
Abstract:
Journal: European Accounting Review 
Pages: 283-304 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000017 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:283-304




Template-Type: ReDIF-Article 1.0
Author-Name: J. Richard 
Author-X-Name-First: J. 
Author-X-Name-Last: Richard 
Title: The evolution of the Romanian and Russian accounting charts after the collapse of the communist system* 
Abstract:
Journal: European Accounting Review 
Pages: 305-322 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000018 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:305-322




Template-Type: ReDIF-Article 1.0
Author-Name: David Heald 
Author-X-Name-First: David 
Author-X-Name-Last: Heald 
Title: An evaluation of French concession accounting 
Abstract:
  The franchising of public service activities (concessions de service
 public) has traditionally played a significant role in infrastructural
 provision in France, notably in the public utility sectors of electricity,
 gas and water. Concession accounting is troubled by two major problems.
 First, operating capability maintenance (OCM) is not achieved, primarily
 because of the failure to tackle the issue of backlog depreciation. In
 sectors with high capital intensity, long asset lives and marked
 technological change, the restrictive legislation pertaining to asset
 revaluation and, hence, depreciation, aggravates this OCM problem. Second,
 financial capital maintenance (FCM) is not achieved, particularly when
 amortization of the enterprise's investment in those concession assets
 which are surrendered to public authorities (I'amortissement de caducite)
 is abandoned. This evaluation of French practice is policy relevant for
 two distinct reasons. First, given the significance of concessions in
 France, it is important to establish a coherent translation of the
 principles of the Plan comptable general 1982 to concession assets; this
 will not be achieved by the proposals of the 1992 Committee on
 Concessions, whose implementation would represent a retreat from economic
 relevance. Second, the concession model is experiencing both a revival in
 francophone Africa and extension to the United Kingdom. 
Journal: European Accounting Review 
Pages: 325-349 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000019 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:325-349




Template-Type: ReDIF-Article 1.0
Author-Name: Can Simga-Mugan 
Author-X-Name-First: Can 
Author-X-Name-Last: Simga-Mugan 
Title: Accounting in Turkey 
Abstract:
  Turkey is a developing country in the Middle East, and is attracting an
 increasing number of foreign investments and joint ventures. However, the
 Turkish accounting system is not one of the topics that is studied in
 detail, the language barrier perhaps being the main reason. As the amount
 of foreign investment and the number of joint ventures increase and the
 Turkish stock market develops, a new responsibility will fall on
 accountants to disclose and discuss the current accounting system in
 Turkey. This paper attempts to fill this gap by describing the current
 accounting system and state of the profession in Turkey. 
Journal: European Accounting Review 
Pages: 351-371 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000020 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:351-371




Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Elm-Larsen 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Elm-Larsen 
Title: Conference Reports 
Abstract:
Journal: European Accounting Review 
Pages: 373-385 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000021 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:373-385




Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Cerbioni 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Cerbioni 
Title: Firm's reserves and accounting reserves in the economy of a modern company: meaning and functions 
Abstract:
Journal: European Accounting Review 
Pages: 387-389 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000022 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:387-389




Template-Type: ReDIF-Article 1.0
Author-Name: Enrico cori 
Author-X-Name-First: Enrico 
Author-X-Name-Last: cori 
Title: Issues of organizational control in the relationships between large and small firms 
Abstract:
Journal: European Accounting Review 
Pages: 390-393 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000023 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:390-393




Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Quagli 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Quagli 
Title: Knowledge in the system of the firm's intangible resources 
Abstract:
Journal: European Accounting Review 
Pages: 393-396 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000024 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:393-396




Template-Type: ReDIF-Article 1.0
Author-Name: Atul Shah 
Author-X-Name-First: Atul 
Author-X-Name-Last: Shah 
Title: Accounting policy choice: the case of financial instruments &#x2014; creative accounting by UK companies 
Abstract:
Journal: European Accounting Review 
Pages: 397-399 
Issue: 2 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000025 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:2:p:397-399




Template-Type: ReDIF-Article 1.0
Author-Name: John Christensen 
Author-X-Name-First: John 
Author-X-Name-Last: Christensen 
Author-Name: Joel Demski 
Author-X-Name-First: Joel 
Author-X-Name-Last: Demski 
Title: Project selection and audited accrual measurement in a multi-task setting 
Abstract:
  This paper studies monitoring and accrual measurement in a
 principal-agent setting. The advantage of the principal-agent setting is
 that it allows accrual measurement to be explicitly connected to
 monitoring and to encompass questions of managerial behaviour and
 communication incentives. It also allows the analysis to take place in a
 setting where competing and complementary sources of information are
 available. Here the accrual measurement is used to discipline other,
 perhaps more timely, sources of information and to carry information
 itself. The argument rests on a two-period agency setting. The usual moral
 hazard story is expanded to include the agent also observing .a potential
 project opportunity (e.g. an additional customer, a labour-saving
 opportunity or whatever). This creates an interest in monitoring the
 agent's project selection. This monitoring may, it turns out, be useful
 for purposes of controlling the familiar short-run versus long-run tension
 or for better managing short-run incentives. Accrual questions enter in
 terms of allocating the project's up-front cost across the two periods,
 thereby separating expenditure from expense. In information-content terms,
 though, this turns out, given that cashflow is observed, to be equivalent
 to a monitor story that reports on project selection. 
Journal: European Accounting Review 
Pages: 405-432 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000026 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:405-432




Template-Type: ReDIF-Article 1.0
Author-Name: Erkki Laitinen 
Author-X-Name-First: Erkki 
Author-X-Name-Last: Laitinen 
Title: The duality of bankruptcy process in Finland 
Abstract:
  Standard bankruptcy prediction methods lead to models weighted by the
 types of failure firms included in the estimation sample. These kinds of
 weighted models may lead to severe classification errors when they are
 applied to such types of failing (and non-failing) firms which are in the
 minority in the estimation sample (frequency effect). The purpose of this
 study is to present a bankruptcy prediction method based on identifying
 two different failure types, i.e. the solidity and liquidity bankruptcy
 firms, to avoid the frequency effect. Both of the types are depicted by a
 theoretical gambler's ruin model of its own to yield an approximation of
 failure probability separately for both types. These models are applied to
 the data of randomly selected Finnish bankrupt and non-bankrupt firms. A
 logistic regression model based on a set of financial variables is used as
 a benchmark model. Empirical results show that the resulting heavily
 solidity-weighted logistic model may lead to severe errors in classifying
 non-bankrupt firms. The present approach will avoid these kinds of error
 by separately evaluating the probability of the solidity and liquidity
 bankruptcy; the firm is not classified bankrupt as long as neither of the
 probabilities exceeds the critical value. This leads the present
 prediction method slightly to outperform the logistic model in the overall
 classification accuracy. 
Journal: European Accounting Review 
Pages: 433-454 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000027 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:433-454




Template-Type: ReDIF-Article 1.0
Author-Name: Ari Manninen 
Author-X-Name-First: Ari 
Author-X-Name-Last: Manninen 
Title: The experience of knowledge in everyday accounting: a study of Finnish accounting managers 
Abstract:
  The paper offers an ethnomethodological-phenomenological description of
 the everyday cost accountant's life-world in Finnish companies. This
 empirical study is based on qualitative research interviews which provide
 rich data on this phenomenon and offer a starting-point for
 interpretation. As a result of interpretation a picture emerges of how the
 everyday accountant seems to acquire the experience of knowledge. 'The
 experience of knowledge' is used to refer to
 ethnomethodological-phenomenological perspective which means that the
 constitution of practical accounting knowledge is seen as an
 accomplishment which is based on an individual sense-making process. This
 process and its elements are the topics of this study. The applicability
 and the possible consequences of the interpretation are discussed with
 respect to accounting research, to management, and to the cost accountants
 themselves. 
Journal: European Accounting Review 
Pages: 455-484 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000028 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:455-484




Template-Type: ReDIF-Article 1.0
Author-Name: Holger Vieten 
Author-X-Name-First: Holger 
Author-X-Name-Last: Vieten 
Title: Auditing in Britain and Germany compared: professions, knowledge and the state 
Abstract:
  In an attempt to move away from dichotomous expositions of state-run
 Germany and self-regulated Britain this paper seeks to analyse the
 regulation of auditing in terms of a state-profession axis (Hopwood, 1988:
 559) that shifts over time. Stereotypical beliefs of Britain and Germany
 representing diametrically opposite systems of regulation can be
 contradicted in the light of increasing state involvement in Britain and
 the recognition that the German system is not adequately characterized by
 rigid and exhaustive codification, but relies to a significant degree on
 professional expertise. However, differences do exist, especially in the
 nature of regulation, which takes an informal shape in Britain, and in the
 production and diffusion of knowledge where academics and preparers are
 much more involved in Germany. The case of auditor independence
 illustrates some of the similarities and differences exposed by an
 analysis that aims to interpret regulatory systems in their national and
 historical context rather than producing simplistic general models. 
Journal: European Accounting Review 
Pages: 485-514 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000029 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:485-514




Template-Type: ReDIF-Article 1.0
Author-Name: A. Haller 
Author-X-Name-First: A. 
Author-X-Name-Last: Haller 
Author-Name: S. Jakoby 
Author-X-Name-First: S. 
Author-X-Name-Last: Jakoby 
Title: Funds flow reporting in Germany: a conceptual and empirical state of the art 
Abstract:
Journal: European Accounting Review 
Pages: 515-534 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000030 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:515-534




Template-Type: ReDIF-Article 1.0
Author-Name: David Hatherly 
Author-X-Name-First: David 
Author-X-Name-Last: Hatherly 
Title: The case for the shareholder panel in the UK 
Abstract:
Journal: European Accounting Review 
Pages: 535-554 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000031 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:535-554




Template-Type: ReDIF-Article 1.0
Author-Name: C. Lefebvre 
Author-X-Name-First: C. 
Author-X-Name-Last: Lefebvre 
Author-Name: L. Lin 
Author-X-Name-First: L. 
Author-X-Name-Last: Lin 
Author-Name: L. Van Nuffel 
Author-X-Name-First: L. 
Author-X-Name-Last: Van Nuffel 
Title: Financial and economic information for industrial relations councils 
Abstract:
Journal: European Accounting Review 
Pages: 555-570 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000032 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000032 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:555-570




Template-Type: ReDIF-Article 1.0
Author-Name: Celia Boneco 
Author-X-Name-First: Celia 
Author-X-Name-Last: Boneco 
Author-Name: Ralph ter Hoeven 
Author-X-Name-First: Ralph ter 
Author-X-Name-Last: Hoeven 
Author-Name: Roland Spekle 
Author-X-Name-First: Roland 
Author-X-Name-Last: Spekle 
Author-Name: Rob van der Wal 
Author-X-Name-First: Rob 
Author-X-Name-Last: van der Wal 
Title: fMA-Congress 1994 on Financial Accounting and Management Accounting at the Erasmus University, Rotterdam 
Abstract:
Journal: European Accounting Review 
Pages: 571-572 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000033 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:571-572




Template-Type: ReDIF-Article 1.0
Author-Name: Paloma Apellaniz 
Author-X-Name-First: Paloma 
Author-X-Name-Last: Apellaniz 
Title: Accrual versus cash flow variables: empirical evidence from Spain 
Abstract:
Journal: European Accounting Review 
Pages: 577-579 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000035 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:577-579




Template-Type: ReDIF-Article 1.0
Author-Name: Tjeu Blommaert 
Author-X-Name-First: Tjeu 
Author-X-Name-Last: Blommaert 
Title: Additional disclosure: triple-entry and momentum accounting 
Abstract:
Journal: European Accounting Review 
Pages: 580-581 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:580-581




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Gaeremynck 
Author-X-Name-First: Ann 
Author-X-Name-Last: Gaeremynck 
Title: The use of depreciation in accounting as a signalling device 
Abstract:
Journal: European Accounting Review 
Pages: 581-583 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000037 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000037 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:581-583




Template-Type: ReDIF-Article 1.0
Author-Name: Filip Roodhooft 
Author-X-Name-First: Filip 
Author-X-Name-Last: Roodhooft 
Title: Responsibility accounting: a dynamic multiple agent approach 
Abstract:
Journal: European Accounting Review 
Pages: 583-584 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000038 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:583-584




Template-Type: ReDIF-Article 1.0
Author-Name: Eric John Slof 
Author-X-Name-First: Eric John 
Author-X-Name-Last: Slof 
Title: Economic models of transfer pricing in decentralized firms 
Abstract:
Journal: European Accounting Review 
Pages: 585-586 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:585-586




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Isabel Zardoya 
Author-X-Name-First: Ana Isabel 
Author-X-Name-Last: Zardoya 
Title: Forecast accounting information in multinational corporations: budgets in the control function 
Abstract:
Journal: European Accounting Review 
Pages: 587-589 
Issue: 3 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000040 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:587-589




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Bailey 
Author-X-Name-First: Derek 
Author-X-Name-Last: Bailey 
Title: Accounting in transition in the transitional economy 
Abstract:
  The paper provides a theoretical construct as a frame of reference for
 understand-ing the possibilities for, and the nature of, accounting change
 in the former socialist countries of Central and Eastern Europe. Within
 its context some of the practical issues arising from the accounting
 reform measures are considered. 
Journal: European Accounting Review 
Pages: 595-623 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:595-623




Template-Type: ReDIF-Article 1.0
Author-Name: Danuta Krzywda 
Author-X-Name-First: Danuta 
Author-X-Name-Last: Krzywda 
Author-Name: Derek Bailey 
Author-X-Name-First: Derek 
Author-X-Name-Last: Bailey 
Author-Name: Marek Schroeder 
Author-X-Name-First: Marek 
Author-X-Name-Last: Schroeder 
Title: A theory of European accounting development applied to accounting change in contemporary Poland 
Abstract:
  The paper presents a theory for understanding the diversity of European
 accounting in market economies by reference to socio-economic factors
 within an historical context. The theory is developed with reference to
 two ideal types, based upon the experiences of Britain and Germany. The
 theory is then used to illuminate the process of accounting transformation
 in the transitional Polish economy. As a result of the application of the
 theory in this national context, the paper concludes that accounting
 policy makers in Central and Eastern Europe will be constrained in their
 choices of appropriate accounting principles, policies and institutions
 from the diversity of models available in the market economies of Western
 Europe. The inference from this conclusion is that the frequently
 expressed fears concerning the adoption of inappropriate accounting models
 by emerging market economies may have been exaggerated. 
Journal: European Accounting Review 
Pages: 625-657 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:625-657




Template-Type: ReDIF-Article 1.0
Author-Name: Willie Seal 
Author-X-Name-First: Willie 
Author-X-Name-Last: Seal 
Author-Name: Pat Sucher 
Author-X-Name-First: Pat 
Author-X-Name-Last: Sucher 
Author-Name: Ivan Zelenka 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Zelenka 
Title: The changing organization of Czech accounting 
Abstract:
  The paper draws on the organizational change literature in order to
 provide a theoretical framework for the post-Velvet Revolution changes in
 Czech accounting. The former system is modelled as an amalgam of
 interpretive schemes, design archetypes and subsystems. The former system
 is seen as coherent except in the area of audit. The points of change are
 economic and political disturbances which result in legal and
 institutional changes in accounting and auditing. In terms of the theory,
 these are the design archetypes of the new organization of accounting.
 Identifying ambiguities and contradictions, we argue that the new
 organization is on an unresolved excursion towards a new model. We also
 argue that although the change is of a second-order nature, it has been
 carried out with relatively little public discussion or participation. 
Journal: European Accounting Review 
Pages: 659-681 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000044 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:659-681




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Bailey 
Author-X-Name-First: Derek 
Author-X-Name-Last: Bailey 
Author-Name: Jaan Alver 
Author-X-Name-First: Jaan 
Author-X-Name-Last: Alver 
Author-Name: Jonas Mackevicius 
Author-X-Name-First: Jonas 
Author-X-Name-Last: Mackevicius 
Author-Name: Vilma Paupa 
Author-X-Name-First: Vilma 
Author-X-Name-Last: Paupa 
Title: Accounting law reform in the Baltic states: the initial steps 
Abstract:
  The paper attempts an evaluation of the initial measures of accounting
 reform legislation undertaken in each of the Baltic states of Estonia,
 Latvia and Lithuania in the context of the successful struggle for the
 restoration of national independence and a transition from the command
 economy to a market economy. 
Journal: European Accounting Review 
Pages: 685-711 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000045 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000045 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:685-711




Template-Type: ReDIF-Article 1.0
Author-Name: Z. Boross 
Author-X-Name-First: Z. 
Author-X-Name-Last: Boross 
Author-Name: A. H. Clarkson 
Author-X-Name-First: A. H. 
Author-X-Name-Last: Clarkson 
Author-Name: M. Fraser 
Author-X-Name-First: M. 
Author-X-Name-Last: Fraser 
Author-Name: P. Weetman 
Author-X-Name-First: P. 
Author-X-Name-Last: Weetman 
Title: Pressures and conflicts in moving towards harmonization of accounting practice: the Hungarian experience 
Abstract:
  The new accounting law in Hungary has been operational since the start of
 1992. Previous publications have set out a range of factors which may have
 influenced the shaping or the application of the law. This paper reports
 the results of a joint Hungarian/UK pilot initiative to explore by
 interview methods the perceptions of Hungarian entrepreneurs and of
 non-nationals working in Hungary, as regards the various influences on the
 development of the law and the potential users of the financial statements
 produced. The investigation was undertaken during 1993 when there had been
 an opportunity for most enterprises to experience a full business year
 using the law. Although the law has been written to comply broadly with
 the Fourth Directive of the EC, there remain some aspects of the Fourth
 Directive which might be regarded from a UK perspective as not having been
 fully implemented, particularly in relation to provisions. The paper
 concludes that while the impact of the move to the market economy is a
 visible factor, both in the drafting of the law and in the perceptions of
 the likely users of the financial statements, the influence of state
 regulation remains, particularly in the context of the continuing
 perceived impact of fiscal policy on accounting regulation. 
Journal: European Accounting Review 
Pages: 713-737 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000046 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:713-737




Template-Type: ReDIF-Article 1.0
Author-Name: Traian Dutia 
Author-X-Name-First: Traian 
Author-X-Name-Last: Dutia 
Title: The restructuring of the system of accounting in Romania during the period of transition to the market economy 
Abstract:
  The paper commences with a consideration of the objectives of accounting
 reform in Romania and proceeds to a review of the principles of accounting
 introduced. Next, there is provided an overview of the new accounting
 system and the newly created accounting profession. Finally, the current
 preoccupations of accounting specialists are considered. 
Journal: European Accounting Review 
Pages: 739-748 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000047 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:739-748




Template-Type: ReDIF-Article 1.0
Author-Name: Neil Garrod 
Author-X-Name-First: Neil 
Author-X-Name-Last: Garrod 
Author-Name: Ivan Turk 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Turk 
Title: The development of accounting regulation in Slovenia 
Abstract:
  External reporting regulations in the independent Republic of Slovenia
 are outlined in this paper. The process by which these regulations have
 been developed is also considered. It is suggested that the experiences in
 Slovenia can provide valuable insights for the development of external
 reporting practices in other former command economies.External reporting
 regulations in the independent Republic of Slovenia are outlined in this
 paper. The process by which these regulations have been developed is also
 considered. It is suggested that the experiences in Slovenia can provide
 valuable insights for the development of external reporting practices in
 other former command economies. 
Journal: European Accounting Review 
Pages: 749-764 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:749-764




Template-Type: ReDIF-Article 1.0
Author-Name: Aldona Kamela-Sowinska 
Author-X-Name-First: Aldona 
Author-X-Name-Last: Kamela-Sowinska 
Title: Goodwill in the process of privatization in Poland 
Abstract:
  Privatization in Poland consists of the transformation of the state
 enterprise into an association of capital, giving third parties an access
 to shares, or in the liquidation of state enterprise in order to take over
 its assets. Goodwill in the process of privatization in Poland arises at
 the moment of transfer of the right of state-owned enterprises by the way
 of: purchase or sale of an enterprise as a whole; bringing in assets in
 kind into a company; merger; purchasing of the controlling blocks of
 shares of a company; and leasing. According to the new Polish Accounting
 Act, which came into effect on 1 January 1995, goodwill is defined as the
 excess of the cost of the acquired company or a specific section thereof
 over the sum of the fair market value of its identifiable individual
 assets, excluding book value, as before the year 1994. Goodwill should be
 allocated to financial results for a period normally not in excess of five
 years. 
Journal: European Accounting Review 
Pages: 765-776 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000049 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000049 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:765-776




Template-Type: ReDIF-Article 1.0
Author-Name: L. V. Liberman 
Author-X-Name-First: L. V. 
Author-X-Name-Last: Liberman 
Author-Name: A. M. Eidinov 
Author-X-Name-First: A. M. 
Author-X-Name-Last: Eidinov 
Title: The development of accounting in tsarist Russia and the USSR 
Abstract:
  The paper provides a brief introduction to the historical development of
 accounting in Russia prior to 1917 before providing an exposition of
 accounting immediately prior to the disintegration of the USSR. Finally,
 the paper presents, as at that time, an assessment of the prospects for
 accounting development. 
Journal: European Accounting Review 
Pages: 777-807 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000050 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000050 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:777-807




Template-Type: ReDIF-Article 1.0
Author-Name: M. Petrovic 
Author-X-Name-First: M. 
Author-X-Name-Last: Petrovic 
Author-Name: I. Turk 
Author-X-Name-First: I. 
Author-X-Name-Last: Turk 
Title: History, theory and practice of accounting in Yugoslavia 
Abstract:
  The paper provides an outline of the historical development of accounting
 in Yugoslavia (as it was constituted up to 1992). The constraints imposed
 by the then existing political and economic system upon the further
 development of accounting is discussed. The quickening pace of accounting
 change in 1990-2, stimulated by the prospect of a transition to a market
 economy, is examined. 
Journal: European Accounting Review 
Pages: 809-826 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000051 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000051 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:809-826




Template-Type: ReDIF-Article 1.0
Author-Name: Rudolf Schroll 
Author-X-Name-First: Rudolf 
Author-X-Name-Last: Schroll 
Title: The new accounting system in the Czech Republic 
Abstract:
  The purpose of the paper is threefold. First, to provide an assessment of
 the accounting system operated in Czechoslovakia during the period of the
 so-called centrally planned economy (i.e. the command economy). Second, to
 provide a characterization of the new accounting system introduced in
 1993. Third, to provide some indication of developing tendencies likely to
 become significant in the future. 
Journal: European Accounting Review 
Pages: 827-832 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000052 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000052 
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Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:827-832




Template-Type: ReDIF-Article 1.0
Author-Name: Irina Smirnova 
Author-X-Name-First: Irina 
Author-X-Name-Last: Smirnova 
Author-Name: Jaroslav Sokolov 
Author-X-Name-First: Jaroslav 
Author-X-Name-Last: Sokolov 
Author-Name: Clive Emmanuel 
Author-X-Name-First: Clive 
Author-X-Name-Last: Emmanuel 
Title: Accounting education in Russia today 
Abstract:
  The West has not perhaps appreciated the role of the command or planned
 economy on the provision of education. The extent and detail of that
 involvement is first reviewed in respect to accounting education. The
 changes which are already under way are described and future trends in
 which Western academics may participate are outlined. Russia and the rest
 of the former Soviet Union (FSU) is in the process of changing a
 well-established, clear structure of education for a less rigid but more
 idiosyncratic approach. Accountants and accounting educators in other
 countries should be aware of the history and emerging structures in Russia
 and the FSU if their involvement is to be worthwhile. 
Journal: European Accounting Review 
Pages: 833-846 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000053 
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Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:833-846




Template-Type: ReDIF-Article 1.0
Author-Name: Magdalena Jerzemowska 
Author-X-Name-First: Magdalena 
Author-X-Name-Last: Jerzemowska 
Title: Conference Reports 
Abstract:
Journal: European Accounting Review 
Pages: 847-860 
Issue: 4 
Volume: 4 
Year: 1995 
X-DOI: 10.1080/09638189500000054 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189500000054 
File-Format: text/html
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Handle: RePEc:taf:euract:v:4:y:1995:i:4:p:847-860




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Author-Name: Markus Granlund 
Author-X-Name-First: Markus 
Author-X-Name-Last: Granlund 
Title: Cost accounting in Finland: current practice and trends of development 
Abstract:
  Recent changes in marketing strategies, competition and production
 environments, and consequent changes in cost structures, have been argued
 as imposing pressure for change on current cost accounting. Characteristic
 of the present situation is the serious lack of information concerning the
 current state of cost accounting practice. The purpose of this study is to
 describe and analyse the present state, and trends in the development, of
 cost accounting practices in large and middle-sized Finnish manufacturing
 units, using a questionnaire survey method. The usable response rate was
 44 per cent (135 units). According to the respondents, significant changes
 have emerged in several areas of their operating environments and
 strategies during the last few years. Even though these changes have
 affected a number of cost accounting issues, their most significant effect
 has been the decrease in the proportion of direct labour costs in unit
 cost structures. The most important problem areas of cost accounting
 relate to the allocation of various overhead costs to products. The
 application of the so-called new cost accounting methods seems to be very
 infrequent: none of the responding units reported their true application.
 However, there were indications of current implementation of
 activity-based costing systems, as well as wide interest in developing
 them. 
Journal: European Accounting Review 
Pages: 1-28 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000001 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:1-28




Template-Type: ReDIF-Article 1.0
Author-Name: John Margerison 
Author-X-Name-First: John 
Author-X-Name-Last: Margerison 
Author-Name: Peter Moizer 
Author-X-Name-First: Peter 
Author-X-Name-Last: Moizer 
Title: Auditor licensing in the European Union: a comparative study based on cultural differences 
Abstract:
  This paper examines the links between the ways in which auditors are
 licensed in eleven EU countries and the cultures of those countries using
 the model developed by Gray (1988). The paper shows that there are
 significant differences in the ways that auditor licensing is carried out
 and that culture could be associated with the different approaches. The
 paper also discusses the methodology employed and makes suggestions for
 future research directions for both auditor licensing and culture-based
 comparative work. 
Journal: European Accounting Review 
Pages: 29-56 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000002 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:29-56




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Thinggaard 
Author-X-Name-First: Frank 
Author-X-Name-Last: Thinggaard 
Title: Mark-to-market accounting, hedge accounting or historical cost accounting for derivative financial instruments? A survey of financial analysts in Denmark 
Abstract:
  This study investigates the preferences of Danish professional financial
 statement users' for three measurement bases for derivative financial
 instruments: mark-to-market accounting, hedge accounting and lower-of-cost
 or market accounting. The study was carried out by means of a postal
 questionnaire survey of members of the Danish organization of financial
 analysts. The findings indicate that professional users of financial
 statements prefer a system based on market value accounting for both
 speculative and non-speculative financial instruments. Such a system is
 considered to give a higher quality of information than either of the two
 alternatives and be just as reliable. These findings are inconsistent with
 the results of an American survey of financial statement users, however.
 Possible explanations for this inconsistency are briefly examined in the
 paper. 
Journal: European Accounting Review 
Pages: 57-75 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000003 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:57-75




Template-Type: ReDIF-Article 1.0
Author-Name: Svetlana Bychkova 
Author-X-Name-First: Svetlana 
Author-X-Name-Last: Bychkova 
Title: The development and status of auditing in Russia 
Abstract:
  The paper emphasizes the difference between Russia and Western Europe in
 the development of audit. A distinction is drawn between audit and the
 Russian and Soviet tradition of control and inspection. The development of
 state control in Tsarist Russia is described. The paper examines the
 distinctive characteristics of control and inspection in the USSR. The
 changes introduced at the time of the disintegration of the USSR are
 considered. Finally the present situation with respect to the development
 of auditing and the auditing profession are reviewed. 
Journal: European Accounting Review 
Pages: 77-90 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000004 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:77-90




Template-Type: ReDIF-Article 1.0
Author-Name: David Forrester 
Author-X-Name-First: David 
Author-X-Name-Last: Forrester 
Title: European congresses of accounting: a review of their history 
Abstract:
  The history and scientific development of many professions can be studied
 from the evidence of their annual or occasional conventions. Typically
 professions originated in major towns and were brought together nationally
 through state recognition. Subsequently and especially in the twentieth
 century, international links and co-ordinating professional bodies have
 been founded. The accountancy profession has gone through these stages.
 The processes for national recognition and for statutory powers have been
 well studied. Less attention has been given, however, to the agendas and
 effectiveness of accountants' congresses at national, European and
 international level. Evidence has been available on an American conference
 in 1904; and this has been declared the first of a series of international
 accounting congresses which continues today. More frequent and more
 international congresses based in Europe (and in Brussels in particular)
 deserve attention now, such as has been denied them for some fifty years.
 The present review is based largely on secondary sources; but it shows the
 aims of European conferences, which were often occasioned by international
 expositions, and which evolved from the qualified success of national
 accountants' conventions. The achievements of congresses are also
 discussed, in relation to agendas which reveal contrasting expectancies
 from state intervention and an inverse defence of professional freedoms.
 The views expressed by accountants differ according to their country of
 origin and to changing economic climates and conflicting political views.
 Continental European accountants rather often betray some envy of the
 state recognition and protection accorded to British chartered
 accountants. 
Journal: European Accounting Review 
Pages: 91-104 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000005 
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Template-Type: ReDIF-Article 1.0
Author-Name: Vaclovas Lakis 
Author-X-Name-First: Vaclovas 
Author-X-Name-Last: Lakis 
Title: The development of auditing and the problems of its reform in Lithuania 
Abstract:
  The paper has three purposes. First, to consider how the audit task was
 undertaken in independent Lithuania during 1918-40. Second, to consider
 the conceptions and execution of that task when Lithuania was incorporated
 into the USSR. Third, to provide an assessment of the developments since
 the restoration of independence. 
Journal: European Accounting Review 
Pages: 105-114 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000006 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:105-114




Template-Type: ReDIF-Article 1.0
Author-Name: Jozsef Rooz 
Author-X-Name-First: Jozsef 
Author-X-Name-Last: Rooz 
Author-Name: Imre Sztano 
Author-X-Name-First: Imre 
Author-X-Name-Last: Sztano 
Author-Name: Fudit Lakis 
Author-X-Name-First: Fudit 
Author-X-Name-Last: Lakis 
Title: The regulation of joint ventures in Hungary 
Abstract:
  The paper aims to provide a review of the legislation governing the
 creation of East-West joint ventures in Hungary. The accounting and
 reporting requirements are examined. Finally, consideration is given to
 the complexities of taxation. 
Journal: European Accounting Review 
Pages: 115-147 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000007 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:115-147




Template-Type: ReDIF-Article 1.0
Author-Name: Niamh Brennan 
Author-X-Name-First: Niamh 
Author-X-Name-Last: Brennan 
Title: Disclosure of profit forecasts during takeover bids 
Abstract:
Journal: European Accounting Review 
Pages: 151-155 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000009 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:151-155




Template-Type: ReDIF-Article 1.0
Author-Name: Ruud Vergoossen 
Author-X-Name-First: Ruud 
Author-X-Name-Last: Vergoossen 
Title: Accounting changes and the use of financial statements: a study among investment analysts 
Abstract:
Journal: European Accounting Review 
Pages: 156-159 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000010 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:156-159




Template-Type: ReDIF-Article 1.0
Author-Name: Margaret Lamb 
Author-X-Name-First: Margaret 
Author-X-Name-Last: Lamb 
Title: The relationship between accounting and taxation: The United Kingdom 
Abstract:
  The relationship between accounting and taxation in the United Kingdom is
 explored in this article. The first section considers historical reasons
 for the relative independence of contemporary calculations of accounting
 profits and taxable profits. Despite the formal independence of important
 aspects of the calculation regimes, effective interdependence of practice
 is a feature of the United Kingdom's tax and accounting histories. The
 second section outlines the current law and practice governing the
 recognition of taxable profits, and reviews the financial reporting
 standards and practices that have been developed to deal with
 tax/accounting differences. Finally, recent developments in financial
 report-ing and taxation are identified that are likely to have an impact
 on the character of the relationship between tax and accounting in the
 future. 
Journal: European Accounting Review 
Pages: 933-949 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000060 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000060 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:933-949




Template-Type: ReDIF-Article 1.0
Author-Name: Aileen Pierce 
Author-X-Name-First: Aileen 
Author-X-Name-Last: Pierce 
Title: The relationship between accounting and taxation in the Republic of Ireland 
Abstract:
  Accounting profits form the basis on which Republic of Ireland tax
 liabilities are computed. For tax purposes these profits are adjusted to
 reflect the tax regulations which differ from accounting rules determining
 profit calculation. Fiscal policy can dictate treatment other than
 generally accepted accounting practice for certain transactions. Deferred
 tax provisions are used to match the tax charge in accounts with reported
 profits. Despite the independence of tax and accounting regulations,
 changes in accounting regulations are often complicated by the existence
 of tax implications. Equally, the tax authorities have in the past
 accepted changes in accounting treatment without penalty. 
Journal: European Accounting Review 
Pages: 951-962 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000061 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000061 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:951-962




Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Pfaff 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Pfaff 
Author-Name: Thomas Schroer 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Schroer 
Title: The relationship between financial and tax accounting in Germany &#x2014; the authoritativeness and reverse authoritativeness principle 
Abstract:
  This paper focuses on the traditionally close relationship between
 financial and tax accounting in Germany by looking first at the historical
 developments. The so-called authoritativeness principle dates back to the
 late 19th century. By describing the different facets of the
 authoritativeness and the reverse author-itativeness principle, the reader
 will get a good overview of the historical relationship. Furthermore, the
 role of the highest fiscal court and the influence of some of its
 decisions is presented in detail. After discussing regulations concerning
 deferred taxation and methods of calculating those deferred taxes, the
 paper concludes with an estimation of future development, where it will be
 shown that the close relationship between commercial and tax accounts is
 politically stable, but that changes might be ahead with respect to the
 recent developments in the international accounting harmonisation debate. 
Journal: European Accounting Review 
Pages: 963-979 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000062 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000062 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:963-979




Template-Type: ReDIF-Article 1.0
Author-Name: Fulvia Rocchi 
Author-X-Name-First: Fulvia 
Author-X-Name-Last: Rocchi 
Title: Accounting and taxation in Italy 
Abstract:
  In Italy income taxation has always been based on accounting results,
 according to the Massgeblichkeitsprinzip. In time both civil and fiscal
 laws have enhanced their complexity, precision, and severity. At present
 the former states the true and fair view principle, and establishes more
 and stricter requirements in financial reporting, in a legalistic style.
 The latter asserts the accrual principle and defines 'objective' standards
 for fiscal earnings' calculation, standards that are generally applied in
 financial statements too. As a result accounting still suffers from tax
 pollution, although it is now possible to draw more complete, reliable and
 clear information than ever from annual reports. 
Journal: European Accounting Review 
Pages: 981-989 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000063 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000063 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:981-989




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Archer 
Author-X-Name-First: Simon 
Author-X-Name-Last: Archer 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 779-782 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000049 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000049 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:779-782




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Hoogendoorn 
Author-X-Name-First: Martin 
Author-X-Name-Last: Hoogendoorn 
Title: Accounting and taxation in Europe &#x2014; A comparative overview 
Abstract:
  This overview article describes the relationship between accounting and
 taxation in those thirteen European countries that are included in this
 volume. A basic distinction is made between the six countries where
 accounting and taxation are dependent and the seven countries where they
 are independent. Even within these two groups distinctions can be made on
 the basis of the different influences of taxation on individual and group
 accounts, the development from a dependence to an independence structure,
 and the existence and contents of regulation on deferred taxation. The
 current lack of harmonisation is surprising. Only two countries, the
 Netherlands and Norway, are very similar to IASC E49. It is, however,
 expected that E49 (more precisely, the IAS that will result from it) will
 be an important basis for harmonising the group accounts in all thirteen
 countries. 
Journal: European Accounting Review 
Pages: 783-794 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000050 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000050 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:783-794




Template-Type: ReDIF-Article 1.0
Author-Name: Kristina Artsberg 
Author-X-Name-First: Kristina 
Author-X-Name-Last: Artsberg 
Title: The link between commercial accounting and tax accounting in sweden 
Abstract:
  Describes how for a long time there has been quite a strong link between
 accounting and taxation in Sweden. This has resulted in some specific
 features such as untaxed reserves and the connection of tax and accounting
 to macro economic policy. Recently it has been proposed that tax
 legislation should be changed in order to make it possible to have
 different solutions in a number of areas that should be exceptions to the
 general rule, introduced in 1928, that the commercial accounts are the
 basis for calculation of tax. Is it then likely that there actually will
 be an independent development for commercial accounting irrespec tive of
 tax influence? This question is discussed in the article by a comparison
 of the formal and informal link between accounting and taxation. 
Journal: European Accounting Review 
Pages: 795-814 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000051 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000051 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:795-814




Template-Type: ReDIF-Article 1.0
Author-Name: Merete Christiansen 
Author-X-Name-First: Merete 
Author-X-Name-Last: Christiansen 
Title: The relationship between accounting and taxation in Denmark 
Abstract:
  The orientation of Danish taxation has always been towards measurement of
 revenue and expenses rather than changes in balance sheet value. While
 early tax rules allowed in principle for a separation of fiscal and
 financial accounting, companies generally aligned their policies on tax
 rules until a revision of company law in 1973. Thereafter there was some
 discussion of separation which became more concrete with the
 implementation of the Fourth Directive in 1981. This was accompanied by
 loose rules on deferred taxation which were firmed in the direction of
 full provision in a 1996 law. The article examines data from various
 empirical studies to show that corporate practice has been divided between
 full and partial provision. It considers the effect of the accounting
 policy choice on ratios and compares Danish companies with a European
 sample. 
Journal: European Accounting Review 
Pages: 815-833 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000052 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000052 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:815-833




Template-Type: ReDIF-Article 1.0
Author-Name: Aasmund Eilifsen 
Author-X-Name-First: Aasmund 
Author-X-Name-Last: Eilifsen 
Title: The relationship between accounting and taxation in Norway 
Abstract:
  The financial accounting regulations in Norway have not been motivated by
 corporate income taxation. Nevertheless, historically there has been a
 close relationship between financial accounting and income taxation. As a
 general taxation rule, the reported financial income has been the basis
 for the computation of the taxable income. This has made financial
 reporting sensitive to tax considerations. Stricter financial accounting
 requirements and an innovation in the financial reporting format in the
 mid-1970s gradually decreased tax-induced financial reporting. The
 promulgation of a larger number of specific and standardized tax rules in
 1992 made the computation of taxable income less dependent on accounting
 income. The Tax Reform in 1992 also initiated a requirement in the
 accounting legislation to recognize deferred taxes in financial
 statements. 
Journal: European Accounting Review 
Pages: 835-844 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000053 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:835-844




Template-Type: ReDIF-Article 1.0
Author-Name: A. Frydlender 
Author-X-Name-First: A. 
Author-X-Name-Last: Frydlender 
Author-Name: D. Pham 
Author-X-Name-First: D. 
Author-X-Name-Last: Pham 
Title: Relationships between accounting and taxation in France 
Abstract:
  The historical background of relationships between accounting and
 taxation in France since 1914 reveals an unbalanced relationship favouring
 the primacy of fiscal law. The state of the art in methods of accounting
 for income taxes is reviewed including study of 'avis no20' on tan effect
 accounting method. 
Journal: European Accounting Review 
Pages: 845-857 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000054 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000054 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:845-857




Template-Type: ReDIF-Article 1.0
Author-Name: Jaroslava Holeckova 
Author-X-Name-First: Jaroslava 
Author-X-Name-Last: Holeckova 
Title: Relationship between accounting and taxation in the Czech Republic 
Abstract:
  Changes taking place in the Czech Republic mean a return to the free
 market economy and private ownership. In the transition from centrally
 planned to market system new accounting and tax regulations were
 necessary. After a brief historical introduction, the paper examines the
 changes in relationship between accounting and taxation in the
 corresponding Czech legislation, the process of setting accounting
 regulations related to deferred tax, in particular. Recent development and
 experience after the year 1989 are described. 
Journal: European Accounting Review 
Pages: 859-869 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000055 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000055 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:859-869




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Hoogendoorn 
Author-X-Name-First: Martin 
Author-X-Name-Last: Hoogendoorn 
Title: Accounting and taxation in the Netherlands 
Abstract:
  In the Netherlands accounting and taxation are formally independent,
 'both in individual accounts and in group accounts. Both accounting and
 tax regulation leaves room for much flexibility. The regulation regarding
 accounting for deferred taxation is in conformity with IASC E49, except
 for the fact that in the Netherlands deferred taxes may be discounted. 
Journal: European Accounting Review 
Pages: 871-882 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000056 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000056 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:871-882




Template-Type: ReDIF-Article 1.0
Author-Name: Alicja Jaruga 
Author-X-Name-First: Alicja 
Author-X-Name-Last: Jaruga 
Author-Name: Ewa Walinska 
Author-X-Name-First: Ewa 
Author-X-Name-Last: Walinska 
Author-Name: Andrzej Baniewicz 
Author-X-Name-First: Andrzej 
Author-X-Name-Last: Baniewicz 
Title: The relationship between accounting and taxation in Poland 
Abstract:
  The first version of this paper was based on accounting regulations
 promulgated in 1991, whereas the final version has taken into account the
 Accounting Act passed by Parliament in 1994. It makes a distinction
 between accounting for general purpose and accounting for income tax
 authorities. In consequence, the emphasis has been placed on highlighting
 the fundamental change in the relation between accounting and taxation
 which has been taking place in Poland as a result of: the first stage of
 transition to market economy in 1991-1994 and the radical change since
 1995, which makes accounting tax independent. The introduction to the main
 body of the paper is provided by a presentation of the historical
 background, with special emphasis on an entirely different relationship
 between accounting and taxation under the centrally-planned economy. 
Journal: European Accounting Review 
Pages: 883-897 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000057 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:883-897




Template-Type: ReDIF-Article 1.0
Author-Name: Marko Jarvenpaa 
Author-X-Name-First: Marko 
Author-X-Name-Last: Jarvenpaa 
Title: The relationship between taxation and financial accounting in Finland 
Abstract:
  This study deals with the historical development and the current
 situation of the relationship between taxation and accounting in Finland.
 The emphasis is on the major changes in accounting and tax regulation.
 Financial accounting and taxation in Finland have been based on
 'expenditure-revenue' accounting theory. In fact, the Company Income Tax
 Law (1968) institutionalized the usage of this accounting theory. Taxation
 has been linked strictly to book-keeping in formal and material terms in
 Finland. Extensive income smoothing due to the flexible depreciation and
 inventory undervaluation practices has characterized Finnish accounting
 until the beginning of the 1990s. The concept of deferred taxation has not
 been the central issue in Finnish accounting and there is no detailed
 regulation regarding accounting for it. Since the 1992 amendements, it has
 been allowed in group accounts to divide depreciation difference between
 tax and financial accounts and untaxed reserves into equity and deferred
 tax liability in balance sheets. To conclude, there has been very
 interesting interplay between the harmonization efforts, needs for
 international comparability, remaining tax dependence and the role of
 accounting theory in Finland. 
Journal: European Accounting Review 
Pages: 899-914 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000058 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000058 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:899-914




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Jorissen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Jorissen 
Author-Name: Luc Maes 
Author-X-Name-First: Luc 
Author-X-Name-Last: Maes 
Title: The principle of fiscal neutrality: the cornerstone of the relationship between financial reporting and taxation in Belgium 
Abstract:
  The relationship between accounting, financial reporting and taxation in
 Belgium is discussed in this article. The article starts with an
 historical overview of the development of the accounting law and the
 fiscal law and shows how a strong link between the two was established in
 the first part of this century. Together with the introduction of the
 accounting law in 1975, the concept of fiscal neutrality, which had to
 link accounting with taxation, was introduced The second part of the
 article explains this concept and discusses the computation of taxable
 income on the basis of the annual accounts in Belgium. Further, the major
 distortions between the accounting law and fiscal law are presented, as
 well as the information disclosures on corporate income taxes required in
 the published annual accounts. To conclude, some possible future
 developments are presented. 
Journal: European Accounting Review 
Pages: 915-931 
Issue: 1 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000059 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000059 
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Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:915-931




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Collier 
Author-X-Name-First: Paul 
Author-X-Name-Last: Collier 
Author-Name: Alan Gregory 
Author-X-Name-First: Alan 
Author-X-Name-Last: Gregory 
Title: Audit committee effectiveness and the audit fee 
Abstract:
  The UK is the only major country within the European Union the majority
 of whose listed companies have formed audit committees composed of
 non-executive directors to monitor financial reporting, the external
 auditors, and internal control strength. The adoption of audit committees
 in contrast to the approach in Europe has arisen despite the lack of
 evidence on their effectiveness even in the USA and Canada, where they
 have been mandatory since the 1970s. This paper seeks to establish whether
 audit committees are effective in ensuring audit quality by protecting the
 auditors from fee cuts which might affect audit quality, and signal
 tighter internal controls which help to reduce audit time and hence audit
 fees. The problem is that the audit committee may be expected to exert a
 two-way pressure on audit fees. To the extent that audit committees should
 enhance audit quality, partly by ensuring that audit hours are not
 reduced, an audit committee may be expected to increase total audit fees.
 At the same time, an audit committee may reasonably be thought to be a
 proxy for internal control strength. Ceteris paribus, companies with
 strong internal controls may be expected to pay lower audit fees than
 those with weak internal controls. Our paper argues that the 'quality'
 aspect of the audit can be captured through a dummy firm size variable,
 whilst the internal control aspects can be captured through dummy risk and
 complexity variables. The hypotheses examined are that size related audit
 fees are higher in companies with an audit committee; and that risk- and
 complexity-related audit fees are lower in companies with audit
 committees. The hypotheses are tested by developing a regression model for
 audit fees of a sample of the companies which comprise the FT-SE 500, with
 variables being included for the presence or absence of an audit
 committee. The results show that the relationship between size-related
 audit fees and the presence of an audit committee is positive and
 statistically significant, but that although there is a negative
 relationship between risk- and complexity-related audit fees and the
 presence of an audit committee, the relationships are not conclusively
 significant. The findings provide support for the contention that audit
 committees are at least partially effective in preventing reductions in
 the audit fee to levels where the quality of the audit may be compromised. 
Journal: European Accounting Review 
Pages: 177-198 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000012 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:177-198




Template-Type: ReDIF-Article 1.0
Author-Name: Juha-Pekka Kallunki 
Author-X-Name-First: Juha-Pekka 
Author-X-Name-Last: Kallunki 
Title: Stock returns and earnings announcements in Finland 
Abstract:
  The stock market's reaction to the earnings announcements of Finnish
 firms is investigated. A risk estimation approach based on accounting
 information is applied along with a market model. Accounting information
 is utilized for risk estimation purposes by using the information
 incorporated in the accounting variables measuring the real determinants
 of systematic risk. The empirical results indicate that the delay in the
 market's reaction to negative unexpected earnings differs from that of the
 positive unexpected earnings. The results of comparing different risk
 adjusting methods indicate that the drift in stock returns around the
 earnings announcements is weaker in the case of long return windows when
 the risk estimation method based on the pure accounting information is
 applied. This indicates that the previous results concerning the drift in
 returns may be due to incorrectly measured abnormal returns. 
Journal: European Accounting Review 
Pages: 199-216 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000013 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:199-216




Template-Type: ReDIF-Article 1.0
Author-Name: Luc Quadackers 
Author-X-Name-First: Luc 
Author-X-Name-Last: Quadackers 
Author-Name: Theodore Mock 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Mock 
Author-Name: Steven Maijoor 
Author-X-Name-First: Steven 
Author-X-Name-Last: Maijoor 
Title: Audit risk and audit programmes: archival evidence from four Dutch audit firms 
Abstract:
  The audit risk model has become an extremely important element in audit
 practice. The basic intuition behind the model is that changes in risk
 should affect the work of the auditor. However, little systematic
 empirical evidence has been published on the assessment of audit risk and
 its effect on audit work. This study, using documentation from actual
 audits and follow-up interviews, provides such evidence. Assessments of
 audit risk and audit programme details have been obtained from eight
 clients of four Dutch audit firms. Audit risk assessments are obtained for
 two risk categories: (1) audit risk factors, such as the degree of client
 management turnover or the quality of the client's internal audit
 department; and (2) audit risk model variables (inherent or control risk),
 related to the account or assertion being audited. The results indicate
 that there is substantial variation in audit risk factors between clients
 and among the audit risk factors per client. To a lesser extent these
 findings hold for the risk model variables. The study also indicates that
 to some degree there is risk variation over time. Variability of risk
 factor assess-ments over time is higher than variability of risk model
 variable assessments over time. Audit programmes differ substantially
 between clients and, to a lesser extent, over time. Interestingly, the
 only two engagements with a change in the audit programme were the clients
 with most risk factor changes. The study also identifies factors other
 than risk, such as a change in the audit team, that influence audit
 programme planning. The observation in Dutch audit practice of variation
 in both risk assessments and audit programmes highlights the opportunity
 to design risk-adjusted audits, which are both efficient and effective. In
 addition, this observation encourages the carrying out of further research
 to fine-tune our models concerning which factors are most important within
 the audit risk model and to the audit planning process. 
Journal: European Accounting Review 
Pages: 217-237 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000014 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:217-237




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Claude Scheid 
Author-X-Name-First: Jean-Claude 
Author-X-Name-Last: Scheid 
Title: Research Forum: cross border comparisons Introduction 
Abstract:
Journal: European Accounting Review 
Pages: 239-241 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000015 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:239-241




Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Author-Name: Simon Archer 
Author-X-Name-First: Simon 
Author-X-Name-Last: Archer 
Title: Goodwill and the difference arising on first consolidation 
Abstract:
  The treatment of the difference arising on consolidation has been both a
 subject of debate (especially in the English-speaking counties) and a
 source of international diversity in financial reporting. The
 implementation of the EU Fourth and Seventh Directives could be expected
 to reduce the amount of this diversity so far as member states are
 concerned. To a large extent, the directives imposed methods which were
 generally accepted in the English-speaking countries; for example, what is
 now known as the 'former German method' was excluded. Nevertheless, the
 Directives left a fair amount of flexibility; alternative practices, some
 generally accepted in the UK and others in the USA, were permitted. This
 paper compares the treatment of the consolidation difference in two EU
 member states, France and the UK, based on an analysis of five years'
 financial statements of a random sample of seventy companies, in each
 country (700 sets of financial statements in all). The research shows
 that, notwithstanding the harmonizing effects of the Directives,
 substantial differences exist between the French and British treatments.
 In general, French recommended treatments are quite close to those
 required by U.S. GAAP, with a major exception in the treatment of
 'quasi-goodwill' items such as brands. By contrast, the UK treatments
 differ from the U.S. and French treatments in some important respects;
 they also fail to comply with the revised IAS 22. On the other hand, the
 UK requirements are clearly documented and mandatory; hence the level of
 compliance is very high. By contrast the French requirements are variously
 and not always consistently documented and only partly mandatory; the
 levels of compliance are consequently lower. There was some evidence that
 the choice of treatment in the UK, as between immediate elimination
 against reserves and capitalization and amortiz-ation, was influenced by
 the company's level of gearing. No such choice exists in France, so no
 comparable analysis was possible. The research suggests that, in the case
 of the consolidation difference, the EU Directives left an arguably
 excessive degree of flexibility of treatment, a problem which it has been
 left to the revised IAS 22 to address. 
Journal: European Accounting Review 
Pages: 243-269 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000016 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:243-269




Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Author-Name: Simon Archer 
Author-X-Name-First: Simon 
Author-X-Name-Last: Archer 
Author-Name: Pascale Delvaille 
Author-X-Name-First: Pascale 
Author-X-Name-Last: Delvaille 
Author-Name: Valerie Taupin 
Author-X-Name-First: Valerie 
Author-X-Name-Last: Taupin 
Title: Provisions and contingencies: an Anglo-French investigation 
Abstract:
  This paper summarizes the results and draft conclusions of a joint
 research project.' The focus is on the French concept of Provisions pour
 risques et charges and on the UK concept of contingencies. The work
 included both comparative conceptual analysis and an empirical
 investigation of some one hundred sets of financial statements &#x2014;
 half from each country. From a conceptual perspective it is clear that
 thinking and tradition in the two countries are significantly different.
 The French distinctions between dettes provisionnees, provisions pour
 risques et charges and engagements can in no way be simplistically equated
 with distinc-tions in the UK between provisions, contingent liabilities
 and commitments. Detailed analysis of one system in terms of thinking and
 terminology of the other is fraught with difficulty. This has obvious
 implications for attempts at harmoniz-ation. Results and analysis of the
 empirical survey of company practice are presented and discussed. 
Journal: European Accounting Review 
Pages: 271-298 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000017 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:271-298




Template-Type: ReDIF-Article 1.0
Author-Name: Alain Burlaud 
Author-X-Name-First: Alain 
Author-X-Name-Last: Burlaud 
Author-Name: Michel Messina 
Author-X-Name-First: Michel 
Author-X-Name-Last: Messina 
Author-Name: Peter Walton 
Author-X-Name-First: Peter 
Author-X-Name-Last: Walton 
Title: Depreciation: concepts and practices in France and the UK 
Abstract:
  This article is a comparative review of current depreciation practices in
 France and the United Kingdom. It starts with a consideration of the
 evolution of depreciation from the nineteenth century, when it was
 generally regarded as an optional item, often associated with
 profit-smoothing, through to the present day when the principle of its
 systematic application is never questioned. The article reviews the
 different regulatory frameworks controlling depreciation in France and the
 UK and notes the importance in France of the link with allowable expenses
 for tax purposes. From this analysis is drawn a series of recognition and
 measurement differences where the approach to depreciation is different
 between the two countries. Major differences are the use of residual
 values in the UK and their absence in France, the use of different asset
 categories, and different definitions for some assets. The paper then
 provides the results of empirical work where samples of accounts drawn
 from specific industry sectors are examined for evidence of actual
 practice. The paper concludes in observing that the research demonstrates
 many of the classical problems of cross-border analysis in that even a
 topic thought of as routine, such as depreciation, shows national
 differences of approach both as to asset categorization, and measurement
 of depreciation, so that direct comparisons are not entirely justified. 
Journal: European Accounting Review 
Pages: 299-316 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000018 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:299-316




Template-Type: ReDIF-Article 1.0
Author-Name: R. H. Parker 
Author-X-Name-First: R. H. 
Author-X-Name-Last: Parker 
Title: Harmonizing the notes in the UK and France: a case study in de jure harmonization 
Abstract:
  This paper provides a case study of the process of de jure harmonization
 of financial reporting by examining the extent to which in the UK and
 France the regulations relating to the notes on the accounts (annexe) have
 been harmonized by the Fourth and Seventh Company Law Directives of the
 European Union and 'deharmonized' by other regulations. It looks at the
 requirements of the directives in relation to the notes and the reactions
 in the two countries to those requirements. It examines a number of areas
 in which implementation of the directives has been different, viz.
 consolidated financial statements; exemptions and extensions; financial
 statement formats; accounting policies; true and fair view; and tax.
 Finally, it explores the problem of readability and understandability and
 the choice between disclosure in the notes and disclosure elsewhere. 
Journal: European Accounting Review 
Pages: 317-337 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000019 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:317-337




Template-Type: ReDIF-Article 1.0
Author-Name: T. E. Cooke 
Author-X-Name-First: T. E. 
Author-X-Name-Last: Cooke 
Author-Name: T. Curuk 
Author-X-Name-First: T. 
Author-X-Name-Last: Curuk 
Title: Accounting in Turkey with reference to the particular problems of lease transactions 
Abstract:
  Leasing in Turkey has grown rapidly in the later part of the 1980s. This
 has presented challenges to accountants which have yet to be resolved. At
 present the country does not have an accounting standard on this topic and
 as a consequence transactions are recorded in accordance with tax laws.
 This paper considers the development of accounting in Turkey and whether
 the principles stated in International Accounting Standard (IAS) 17 on
 leasing are applicable for Turkey. The responses to questionnaires sent to
 accountants in Turkey suggest that the principles in IAS 17 are acceptable
 to accountants in that country. 
Journal: European Accounting Review 
Pages: 339-359 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000020 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:339-359




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Evans 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Evans 
Author-Name: Christopher Nobes 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Nobes 
Title: Some mysteries relating to the prudence principle in the Fourth Directive and in German and British law 
Abstract:
  Article 31 of the Fourth Directive, which specifies the general valuation
 principles to be applied in the preparation of financial statements, shows
 a difference in emphasis between the different language versions. Except
 for the English version of the Directive, all others emphasize prudence,
 as opposed to the other valuation principles required by the article. The
 earlier drafts of the Directive are examined in an attempt to trace the
 development of this difference between the English and the other language
 versions. It seems that the particular wording of Article 31 with its
 relatively greater weight on prudence probably results from UK influence,
 more specifically from SSAP 2. A possible solution is then suggested as to
 why this particular emphasis on prudence was not retained in the English
 version of the Directive. Further, it is noted that German law did not
 explicitly make prudence an overriding concept before the Fourth Directive
 and nor does the German implementation of Article 31. 
Journal: European Accounting Review 
Pages: 361-373 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000021 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:361-373




Template-Type: ReDIF-Article 1.0
Author-Name: Karel van Hulle 
Author-X-Name-First: Karel 
Author-X-Name-Last: van Hulle 
Title: Prudence: a principle or an attitude? 
Abstract:
Journal: European Accounting Review 
Pages: 375-382 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000022 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:375-382




Template-Type: ReDIF-Article 1.0
Author-Name: Jos Blomrnaert 
Author-X-Name-First: Jos 
Author-X-Name-Last: Blomrnaert 
Title: Preparation and information content of consolidated financial statements 
Abstract:
Journal: European Accounting Review 
Pages: 383-387 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000023 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:383-387




Template-Type: ReDIF-Article 1.0
Author-Name: G. W. J. M. Kampschoer 
Author-X-Name-First: G. W. J. M. 
Author-X-Name-Last: Kampschoer 
Title: Quantitative aspects of compensation of losses and their effect on the company annual accounts 
Abstract:
Journal: European Accounting Review 
Pages: 387-390 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000024 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:387-390




Template-Type: ReDIF-Article 1.0
Author-Name: Regine Slagmulder 
Author-X-Name-First: Regine 
Author-X-Name-Last: Slagmulder 
Title: Quantitative aspects of compensation of losses and their effect on the company annual accounts 
Abstract:
Journal: European Accounting Review 
Pages: 390-396 
Issue: 2 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000025 
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Handle: RePEc:taf:euract:v:5:y:1996:i:2:p:390-396




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Zambon 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Zambon 
Title: Accounting and business economics traditions: a missing European connection? 
Abstract:
Journal: European Accounting Review 
Pages: 401-411 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000026 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:401-411




Template-Type: ReDIF-Article 1.0
Author-Name: Walther Busse von Colbe 
Author-X-Name-First: Walther Busse 
Author-X-Name-Last: von Colbe 
Title: Accounting and the business economics tradition in Germany 
Abstract:
  From the German point of view, accounting is a very important part of
 business economics. However, in order to understand the theoretical
 development of accounting in Germany during the twentieth century, it is
 necessary to identify the influences of the social, economic and legal
 environment on business economics in general and accounting in particular.
 Much business economics has emphasized microeconomic theory, but this
 ignores the problems of organization, and the institutional aspects of the
 business world. Financial accounting in particular cannot be understood in
 Germany without reference to legal rules and tradition. Although
 theorizing about accounting may have been the main root of the business
 economics tradition in Germany, other aspects of business economics have
 developed, and it has not been possible to construct a common theoretical
 foundation covering all aspects of business economics. Hence, it is
 necessary to study the development of German accounting theory and
 practice on its own terms. 
Journal: European Accounting Review 
Pages: 413-434 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000027 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:413-434




Template-Type: ReDIF-Article 1.0
Author-Name: Sten Jonsson 
Author-X-Name-First: Sten 
Author-X-Name-Last: Jonsson 
Title: Accounting and business economics traditions in Sweden 
Abstract:
  In this paper, it is argued that Swedish accounting research as well as
 business economics is rooted in practice. Standards for good practice have
 traditionally been developed in committees set up in a corporatist
 institutional setting. This tradition carried over with the definite shift
 from a German to an American influence on accounting as well as business
 economics in the 1960s. Since then there has been a marked dominance of
 behaviourally oriented research in business economics as well as in
 accounting. A pragmatic view prevails. 
Journal: European Accounting Review 
Pages: 435-448 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000028 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:435-448




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Napier 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Napier 
Title: Accounting and the absence of a business economics tradition in the United Kingdom 
Abstract:
  Economics was slow to emerge as a distinct academic and professional
 discipline in the United Kingdom. In the years around 1900, some British
 universities began to offer degrees in commerce, including accounting.
 These degrees were influenced by the contemporary emergence of business
 economics (betriebswirtschaftslehre) in Germany. However, there was no
 substantive emergence of a body of economic theory relating specifically
 to the business organization. Later attempts in the 1930s to apply
 economic argumentation to the problems of business and accounting, in the
 context of both profit determination and costing, centred around the
 Department of Business Administration and the Accounting Research
 Association, based at the London School of Economics. Although the
 activities of these groups are often viewed in terms of the influence of
 economics on accounting, there were reverse currents in that accounting
 notions helped in the formalization of macroeconomic notions such as
 national income and in the development of social accounting by Richard
 Stone and others. However, the intervention of the Second World War
 curtailed this interchange of ideas. In the post-war period, the rapid
 expansion of accounting as both an academic discipline and a professional
 practice was accompanied by a greater awareness of economic ideas and
 concepts. In financial reporting, these had an important influence on the
 inflation accounting debate of the 1970s and 1980s. In management
 accounting, economic ideas often operated as criticisms of existing
 practices. However, both the comparatively underdeveloped application by
 economists of their theories to business problems and the continuing
 intellectual barriers between academic and professional accountants made
 the practical interaction of accounting and economics a sporadic
 phenomenon. 
Journal: European Accounting Review 
Pages: 449-481 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000029 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:449-481




Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Title: Truer and fairer. Uninvited comments on invited comments 
Abstract:
  European Accounting Review Volume 2, Number 1, carried a special section
 on the true and fair view concept (TFV). This contained a number of
 invited comments on a paper by the present author. This new paper picks up
 the discussion from that point and comments on the comment papers,
 especially on the more critical points therein. This paper, while seeking
 to rebut a number of detailed points from commentators, argues as its
 central positive thesis that an overriding concept such as TFV is
 logically necessary if accounting in Europe is to fulfil a rational rather
 than an arational function. Finally a brief comment is made on the
 apparently fundamental disagreement arising between two cultures within
 Europe. 
Journal: European Accounting Review 
Pages: 483-493 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000030 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:483-493




Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Ordelheide 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Ordelheide 
Title: True and fair view 
Abstract:
Journal: European Accounting Review 
Pages: 495-506 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000031 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:495-506




Template-Type: ReDIF-Article 1.0
Author-Name: Reiner Quick 
Author-X-Name-First: Reiner 
Author-X-Name-Last: Quick 
Title: The legal liability of auditors in Germany 
Abstract:
  The European Union tried to harmonize the qualifications of auditors in
 member states through the Eighth Company Law Directive. However, other
 aspects of the regulation of auditors have not been dealt with in EC
 directives and show a wide diversity. Rules concerning the liability of
 auditors are one example of this diversity. Germany provides an extreme
 example in the case of this liability problem, since it is operating with
 a capped liability and providing third parties with only few possibilities
 to sue an auditor. This limited liability is probably one reason for a
 small number of cases. The purpose of this article is to describe and to
 review critically the German system of auditor's liability, and to
 identify specific environmental German factors which might explain the
 current system. 
Journal: European Accounting Review 
Pages: 507-521 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000032 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000032 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:507-521




Template-Type: ReDIF-Article 1.0
Author-Name: K. Illes 
Author-X-Name-First: K. 
Author-X-Name-Last: Illes 
Author-Name: P. Weetman 
Author-X-Name-First: P. 
Author-X-Name-Last: Weetman 
Author-Name: A. H. Clarkson 
Author-X-Name-First: A. H. 
Author-X-Name-Last: Clarkson 
Author-Name: M. Fraser 
Author-X-Name-First: M. 
Author-X-Name-Last: Fraser 
Title: Change and choice in Hungarian accounting practice 
Abstract:
  This paper presents an exploration of change and choice in Hungarian
 accounting practice following implementation of the Accounting Law of
 1991. A question-naire has been used, supported by interviews, to identify
 patterns of, and reasons for, change and choice. 'Analysis of the data
 leads to proposals for a focus to further research in this area. The paper
 first outlines the background to the 1991 Accounting Law and the changes
 it introduced. The data and questionnaire method are then explained.
 Information collected from the questionnaires allows subdivision of
 respondents into two groups such that one group (the observers) is used as
 a source of opinion on patterns of, and reasons for, change which may be
 tested by the practices applied by the other group (the financial
 managers). This method of analysis is applied to eight significant areas
 of accounting policy, from which conclusions are drawn regarding the
 factors which appear to have influenced change and choice in Hungarian
 accounting practice. 
Journal: European Accounting Review 
Pages: 523-543 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000033 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:523-543




Template-Type: ReDIF-Article 1.0
Author-Name: Pat Sucher 
Author-X-Name-First: Pat 
Author-X-Name-Last: Sucher 
Author-Name: Willie Seal 
Author-X-Name-First: Willie 
Author-X-Name-Last: Seal 
Author-Name: Ivan Zelenka 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Zelenka 
Title: True and fair in the Czech Republic: a note on local perceptions 
Abstract:
  With the collapse of communism in Czechoslovakia', and the subsequent
 desire of Czechoslovakia to join the European Union, in common with other
 countries in Central Europe, Czechoslovakia utilized the Fourth Directive
 as a 'toolkit' in designing part of its new accounting legislation. In
 incorporating the Fourth Directive, it has also included the requirement
 for financial statements to show a 'true and fair' view. Given the
 confusion over the exact meaning of 'true and fair' it is interesting to
 study how 'true and fair' has been introduced into the Czech Republic, and
 what it seems to signify for those who implemented it and for those who
 are preparing and using financial statements. Our initial findings
 indicate that 'true and fair' varies in its significance for the groups of
 individuals involved in preparing and using financial statements and that
 it may have particular significance for some groups of accountants who
 wish to secure specific advantage within the Czech economy.With the
 collapse of communism in Czechoslovakia', and the subsequent desire of
 Czechoslovakia to join the European Union, in common with other countries
 in Central Europe, Czechoslovakia utilized the Fourth Directive as a
 'toolkit' in designing part of its new accounting legislation. In
 incorporating the Fourth Directive, it has also included the requirement
 for financial statements to show a 'true and fair' view. Given the
 confusion over the exact meaning of 'true and fair' it is interesting to
 study how 'true and fair' has been introduced into the Czech Republic, and
 what it seems to signify for those who implemented it and for those who
 are preparing and using financial statements. Our initial findings
 indicate that 'true and fair' varies in its significance for the groups of
 individuals involved in preparing and using financial statements and that
 it may have particular significance for some groups of accountants who
 wish to secure specific advantage within the Czech economy.With the
 collapse of communism in Czechoslovakia', and the subsequent desire of
 Czechoslovakia to join the European Union, in common with other countries
 in Central Europe, Czechoslovakia utilized the Fourth Directive as a
 'toolkit' in designing part of its new accounting legislation. In
 incorporating the Fourth Directive, it has also included the requirement
 for financial statements to show a 'true and fair' view. Given the
 confusion over the exact meaning of 'true and fair' it is interesting to
 study how 'true and fair' has been introduced into the Czech Republic, and
 what it seems to signify for those who implemented it and for those who
 are preparing and using financial statements. Our initial findings
 indicate that 'true and fair' varies in its significance for the groups of
 individuals involved in preparing and using financial statements and that
 it may have particular significance for some groups of accountants who
 wish to secure specific advantage within the Czech economy.With the
 collapse of communism in Czechoslovakia', and the subsequent desire of
 Czechoslovakia to join the European Union, in common with other countries
 in Central Europe, Czechoslovakia utilized the Fourth Directive as a
 'toolkit' in designing part of its new accounting legislation. In
 incorporating the Fourth Directive, it has also included the requirement
 for financial statements to show a 'true and fair' view. Given the
 confusion over the exact meaning of 'true and fair' it is interesting to
 study how 'true and fair' has been introduced into the Czech Republic, and
 what it seems to signify for those who implemented it and for those who
 are preparing and using financial statements. Our initial findings
 indicate that 'true and fair' varies in its significance for the groups of
 individuals involved in preparing and using financial statements and that
 it may have particular significance for some groups of accountants who
 wish to secure specific advantage within the Czech economy. 
Journal: European Accounting Review 
Pages: 545-557 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000034 
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:545-557




Template-Type: ReDIF-Article 1.0
Author-Name: Mariacristina Bonti 
Author-X-Name-First: Mariacristina 
Author-X-Name-Last: Bonti 
Title: Control issues in the Italian public sector: limits and opportunities 
Abstract:
Journal: European Accounting Review 
Pages: 559-562 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000035 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:559-562




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Gao 
Author-X-Name-First: Simon 
Author-X-Name-Last: Gao 
Title: Accounting for leases: an international perspective 
Abstract:
Journal: European Accounting Review 
Pages: 563-567 
Issue: 3 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000036 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:3:p:563-567




Template-Type: ReDIF-Article 1.0
Author-Name: John Board 
Author-X-Name-First: John 
Author-X-Name-Last: Board 
Author-Name: Peter Moller 
Author-X-Name-First: Peter 
Author-X-Name-Last: Moller 
Author-Name: Martin Walker 
Author-X-Name-First: Martin 
Author-X-Name-Last: Walker 
Title: Research on Corporate Financial Communication and the Stock Market: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 583-586 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000038 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:583-586




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Auer 
Author-X-Name-First: Kurt 
Author-X-Name-Last: Auer 
Title: Capital market reactions to earnings announcements: empirical evidence on the difference in the information content of IAS-based earnings and EC-Directives-based earnings 
Abstract:
  Listing on a foreign stock exchange and the aim to attract international
 investors usually forces European quoted companies to adapt information
 supplied in financial statements to different information needs of
 international investors. Because of the dominance of the American stock
 market, this adaptation raises especially the question whether
 Anglo-American-oriented accounting standards (for instance IAS &#x2014;
 International Accounting Standards) convey a higher information content
 for investors than continental-Europe-oriented accounting standards (for
 instance EC-Directives). The study examines the information content of
 earnings announcements, i.e. abnormal returns resulting from un-expected
 earnings, for a sample of Swiss quoted companies which have changed the
 accounting standard used for presenting Swiss GAAP consolidated financial
 statements to either EC-Directives or IAS and can therefore contribute to
 this discussion. The results of the study suggest that IAS-based earnings
 announce-ments convey a statistically significant higher information
 content than earnings announcements based on the Swiss GAAP if a
 variance-approach is used. For investors in the Swiss capital market, the
 switch from Swiss GAAP to IAS has therefore increased the information
 content of financial statements. But comparing IAS-based and
 EC-Directives-based earnings announcements, the results suggest that for
 investors IAS-based earnings do not possess a statistically significant
 higher information content than EC-Directives-based earnings. This result
 has been achieved despite the fact that for Swiss financial analysts
 financial statements based on IAS convey a significant higher information
 content than financial statements based on EC-Directives. Avoiding
 problems in specifying a model for unexpected earnings by standardizing
 the mean of the abnormal returns of each event window to a positive value
 does not lead to a different conclusion if the variance approach is used. 
Journal: European Accounting Review 
Pages: 587-623 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000039 
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Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:587-623




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Diaz 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Diaz 
Author-Name: Stuart McLeay 
Author-X-Name-First: Stuart 
Author-X-Name-Last: McLeay 
Title: Bad debt provisions and intra-industry information transfer in the banking sector 
Abstract:
  This paper assesses information transfer in the capital market in the
 context of successive announcements of provisions for bad debts made by UK
 and US banks during the Latin American debt crisis. Using a system of
 simultaneous equations, it is shown that the unexpected increase in the
 share prices of US banks announcing an increase in loan loss reserves is
 also present in the returns of those banks, in both countries, which had
 not yet disclosed their provisions, but is not present in the share price
 behaviour of banks which had already announced their provisions. 
Journal: European Accounting Review 
Pages: 625-650 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000040 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000040 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:625-650




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Ghicas 
Author-X-Name-First: Dimitrios 
Author-X-Name-Last: Ghicas 
Author-Name: Dimosthenis Hevas 
Author-X-Name-First: Dimosthenis 
Author-X-Name-Last: Hevas 
Author-Name: Aphroditi Papadaki 
Author-X-Name-First: Aphroditi 
Author-X-Name-Last: Papadaki 
Title: Fixed assets revaluations and their association with stock returns 
Abstract:
  This study examines the association between annual stock returns of firms
 listed on the Athens Stock Exchange and the tax benefits of mandated fixed
 assets revaluations that occurred in the years 1982, 1988 and 1992. A
 significant association is found for the revaluations that occurred in
 1992 but not for those that took place in 1988 or 1982 As the tax benefits
 are probably measured with error, we use the amount of the revaluation to
 explain stock returns with similar findings. When we extend the period
 over which we accumulate stock returns from one to two years, the
 association between stock returns and the amount of the revaluation is
 significant both in 1992 and in 1982. For the years 1992 and 1982, we also
 observe a significant association between stock prices and the revaluation
 amounts. 
Journal: European Accounting Review 
Pages: 651-670 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000041 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000041 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:651-670




Template-Type: ReDIF-Article 1.0
Author-Name: Niclas Hellman 
Author-X-Name-First: Niclas 
Author-X-Name-Last: Hellman 
Title: What causes investor action? 
Abstract:
  The relationship between news and investor actions, manifested in stock
 price changes and changes in trading volume, has been intensely studied
 within the area of market-based accounting research (MBAR). This paper
 discusses the causes of investor actions on the basis of a case study of a
 large Swedish institutional investor. The findings of the case study
 indicate that when one disaggregates from the market level to the investor
 level, there is no mechanical relationship between financial information
 and investment action, as suggested in MBAR. In fact, none of the studied
 investment actions could be directly linked to the release of a financial
 report. The findings of the study also demonstrate that decisions
 regarding equity trades are continuous processes, rather than single
 points in time, where the main use of accounting information seems to be
 when there is already some idea of action that needs to be quantitatively
 evaluated. The factors that seemed to affect the initiation of these
 decision processes were mainly macro-economic information, private
 information and different investor conditions. Finally, there were time
 lags of considerable length, in all of the three main trades studied,
 between information events and the decision to act. 
Journal: European Accounting Review 
Pages: 671-691 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000042 
File-Format: text/html
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Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:671-691




Template-Type: ReDIF-Article 1.0
Author-Name: Gert van Huffel 
Author-X-Name-First: Gert 
Author-X-Name-Last: van Huffel 
Author-Name: Philip Joos 
Author-X-Name-First: Philip 
Author-X-Name-Last: Joos 
Author-Name: Hubert Ooghe 
Author-X-Name-First: Hubert 
Author-X-Name-Last: Ooghe 
Title: Semi-annual earnings announcements and market reaction: some recent findings for a small capital market 
Abstract:
  This paper tries, first, to document the returns response of stocks to
 unexpected semi-annual earnings after the announcement of these earnings
 in a small capital market, i.e. the Brussels Stock Exchange (hereafter
 BSE), and second, to assess the explanations and empirical problems found
 in the literature concerning the post-earnings announcement drift. The
 motivation for this research is the introduction of new Belgian
 legislation initiating the reporting of the semi-annual results of the
 firms listed on the BSE (Royal Decree of 18 September 1990). We also
 attempt to avoid potential empirical problems of earlier Belgian studies
 and use some techniques more comparable with those of recent American
 studies. The results show that systematic post-earnings announcement drift
 is found neither for the market mode, nor for the size-adjusted returns
 model. The results also suggest that the market model is not a
 descriptively valid pricing model for the BSE or that its parameters are
 misspecified. When we distinguish between large and small firms, we
 discover for the size-adjusted returns model a CAR pattern for the large
 firms consistent with the results reported in the literature. However, the
 small firms show a puzzling pattern. 
Journal: European Accounting Review 
Pages: 693-713 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:693-713




Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Lawson 
Author-X-Name-First: Gerald 
Author-X-Name-Last: Lawson 
Title: The measurement of the economic performance of the US Nonfinancial Corporate Business Sector 1946-1990: an application of the shareholder value creation concept 
Abstract:
  This paper is based upon a juxtaposition of the cash flow-market value
 performance (alias SVC performance) and historic cost accounting (HC)
 performance of the US Nonfinancial Corporate Business sector 1946-90. It
 has two principal objectives: 1. To determine whether, judged on return
 and variability dimensions, the HC accounting model is an operationally
 acceptable surrogate for a multiperiod market-based accounting model. 2.
 To analyse the consequences of HC income-based distributions, i.e.,
 corporate tax, interest and dividend payments based on
 conventionally-measured corporate income. Three principal conclusions are
 drawn: i. Notwithstanding their common cash flow component, HC performance
 indices are not reliable surrogates for SVC performance criteria. The
 former apparently do not accurately capture changes in corporate valuation
 and generally understate the variability of market-based returns. ii. The
 multiperiod HC income of a going concern characteristically overstates its
 coterminous multiperiod cash flows to a considerable degree. Contrary to
 common supposition, the former does not therefore constitute a
 'normalized' or 'smoothed' version of a firm's 'primitive' cash flows in
 the sense that the cumulative (multiperiod) values of the two measures
 tend to converge. iii. As a consequence of ii, HC income and its near
 relation, taxable earnings, are dubious bases for measuring
 interest-paying, tax-paying and dividend-paying capacities. Corporate
 income-distribution decisions based on HC accruals-based profit measures
 frequently trigger external financing which may cause shareholder wealth
 losses and wealth transfers from shareholders to lenders. However, 'fiscal
 drag' appears to be the most serious consequence of HC accruals-based
 income distribution decisions. 
Journal: European Accounting Review 
Pages: 715-741 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:715-741




Template-Type: ReDIF-Article 1.0
Author-Name: Jaroslav Sokolov 
Author-X-Name-First: Jaroslav 
Author-X-Name-Last: Sokolov 
Author-Name: Valery Kovalev 
Author-X-Name-First: Valery 
Author-X-Name-Last: Kovalev 
Title: In defence of Russian accounting: a reply to foreign critics 
Abstract:
  During a recent conference in Western Europe the authors were informally
 presented with a 'bill of indictment' containing twelve allegations
 against Russian accounting. Subsequently a West European collaborator on a
 joint project suggested that a response should be prepared. The paper
 examines the allegations, or delusions, and presents a considered reply.
 Recent developments in Russian accounting are summarized. Finally, the
 contribution of foreign specialists is acknowledged. 
Journal: European Accounting Review 
Pages: 743-762 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000045 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000045 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:743-762




Template-Type: ReDIF-Article 1.0
Author-Name: Alicia Costa 
Author-X-Name-First: Alicia 
Author-X-Name-Last: Costa 
Title: Accounting for financial derivatives: a conceptual and practice approach 
Abstract:
Journal: European Accounting Review 
Pages: 763-765 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000046 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:763-765




Template-Type: ReDIF-Article 1.0
Author-Name: Marleen Willekens 
Author-X-Name-First: Marleen 
Author-X-Name-Last: Willekens 
Title: Economic aspects of audit regulation and auditor liability 
Abstract:
Journal: European Accounting Review 
Pages: 765-767 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000047 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:765-767




Template-Type: ReDIF-Article 1.0
Author-Name: Elin Sundgaard 
Author-X-Name-First: Elin 
Author-X-Name-Last: Sundgaard 
Title: EIASM Workshop on Accounting in Europe No. 4 
Abstract:
Journal: European Accounting Review 
Pages: 769-774 
Issue: 4 
Volume: 5 
Year: 1996 
X-DOI: 10.1080/09638189600000048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189600000048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:5:y:1996:i:4:p:769-774




Template-Type: ReDIF-Article 1.0
Author-Name: Philip D. Bougen David 
Author-X-Name-First: Philip D. 
Author-X-Name-Last: Bougen David 
Title: Debating Spanish audit legislation: the audit law of 1988 
Abstract:
	      In 1988 Spanish politicians enacted legislation to adapt
 national audit practices to the European Community's Eighth Directive. The
 1988 Audit Law was debated extensively in Spain's Congress of Deputies.
 Excerpts from the political exchanges are employed in the paper to address
 two issues. First, the debates give some indication of the ways in which
 the politicians wrestled with the details of the legislation in order to
 establish a future audit framework considered appropriate for Spain. The
 paper can be considered, therefore, as an attempt to contribute to a more
 fuller understanding of one nation's efforts to implement EC Directives.
 Second, the issue of understanding the changing of Spanish audit
 legislation is examined from a further perspective. Both the political
 debates and specific details of the Audit Law are used as a basis for
 reconsidering one aspect of other work (Garc&#xed;a-Benau and Humphrey, 1992)
 which examined the same legislative changes. Whereas their analysis
 suggested to them a certain 'innocence' as regards Spanish attitudes
 towards the potentialities of financial reporting, our material questions
 the generality of such a conclusion.	       
Journal: European Accounting Review 
Pages: 1-17 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336845 
File-URL: http://hdl.handle.net/10.1080/096381897336845 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:1-17




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew L. Friedman 
Author-X-Name-First: Andrew L. 
Author-X-Name-Last: Friedman 
Author-Name: Stephen R. Lyne 
Author-X-Name-First: Stephen R. 
Author-X-Name-Last: Lyne 
Title: Activity-based techniques and the death of the beancounter 
Abstract:
	      In a study of eleven medium and large sized companies we
 found clear evidence that management accountants were seen by operational
 managers as 'beancounters'. This term has become common in the literature
 in recent years and we define a beancounter as, 'an accountant who
 produces financial information which is regarded as of little use in
 efficiently running the business and, as a result, its production has
 become an end in itself.' Furthermore many management accountants
 recognized this image. All of the companies had attempted to implement
 activity-based techniques and this process had led to a substantial
 improvement in the beancounter image. We propose three scenarios for the
 future of activity-based techniques and the management accountants' image
 as a beancounter. These are based on our understanding of the history of
 management accounting and trends that have been visible in recent years.
 Further we suggest the most likely contingent variables which may lead to
 one or other of the scenarios becoming reality. Some of the scenarios are
 more likely to occur in the short or medium term, whereas others are long
 term possibilities. We conclude with our own view on the likely future for
 activity-based techniques, suggesting that there is a promising future for
 these techniques in the medium term.	       
Journal: European Accounting Review 
Pages: 19-44 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336854 
File-URL: http://hdl.handle.net/10.1080/096381897336854 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:19-44




Template-Type: ReDIF-Article 1.0
Author-Name: Bego&#xf1;a Giner Inchausti 
Author-X-Name-First: Bego&#xf1;a Giner 
Author-X-Name-Last: Inchausti 
Title: The influence of company characteristics and accounting regulation on information disclosed by Spanish firms 
Abstract:
	      Accounting information is subject to two different
 influences: market pressures and pressure from regulatory bodies. This
 paper provides an empirical analysis of the influence of both these forces
 on information disclosure by Spanish firms. To test hypotheses concerning
 the influence of regulation, annual reports of three different years for
 49 companies have been analysed. Given that new Spanish accounting rules
 have been in force since 1990, annual accounts of a sample of quoted
 companies have been analysed for the period 1989-1991. In order to
 consider the influence of positive accounting theory, several
 characteristics relating to company attributes were selected and tested
 empirically for the sample of 49 companies. The information disclosed by
 the sample companies was measured through an information index, based on a
 list of 50 items of information, and it was regressed on the variables
 related to company characteristics. The influence of regulation was
 analysed through a panel data analysis including time effects. The results
 suggest that time as a surrogate for regulation explains the level of
 information disclosure, although it does not influence the amount of
 voluntary information disclosed. However, several firm characteristics
 were also found to influence the level of disclosure, namely size,
 auditing and stock exchange.	       
Journal: European Accounting Review 
Pages: 45-68 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336863 
File-URL: http://hdl.handle.net/10.1080/096381897336863 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:45-68




Template-Type: ReDIF-Article 1.0
Author-Name: Teppo Martikainen 
Author-X-Name-First: Teppo 
Author-X-Name-Last: Martikainen 
Author-Name: Juha-Pekka Kallunki 
Author-X-Name-First: Juha-Pekka 
Author-X-Name-Last: Kallunki 
Author-Name: Jukka Perttunen 
Author-X-Name-First: Jukka 
Author-X-Name-Last: Perttunen 
Title: Finnish earnings response coefficients: the information content of losses 
Abstract:
	      This paper provides new evidence on the information content
 of losses in the relation between stock returns and annual accounting
 earnings. Consistent with earlier US evidence, accounting losses are not
 significantly related to stock returns in Finland. Moreover, it is shown
 that the different methods used to measure earnings in Finland affect the
 frequency of losses, substantially altering the estimated return-earnings
 relation. The results suggest that earnings adjusted in accordance with
 the recommendations of the Finnish Committee for Corporate Analysis are
 not more useful than the unadjusted reported earnings in explaining stock
 returns in Finland.	      
Journal: European Accounting Review 
Pages: 69-81 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336872 
File-URL: http://hdl.handle.net/10.1080/096381897336872 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:69-81




Template-Type: ReDIF-Article 1.0
Author-Name: Constantinos V. Caramanis 
Author-X-Name-First: Constantinos V. 
Author-X-Name-Last: Caramanis 
Title: The enigma of the Greek auditing profession: some preliminary results concerning the impact of liberalization on auditor behaviour 
Abstract:
	      The paper reports the results of a survey of the perceptions
 of individual auditors and corporate financial executives in Greece,
 regarding changes in emphases which auditors gave to various audit
 functions following the liberalization of the Greek auditing profession in
 1992. The term 'liberalization' is used here to denote the introduction of
 competition in the market for statutory audits and the concomitant
 economic dependence of auditors on audited companies. The liberalization
 was effected through legislation and was the result of a long and intense
 intra-professional conflict between a group of indigenous auditors who
 until then enjoyed legal monopoly of practice and local branches of
 international accounting firms who wanted to enter the market for
 statutory audit services. The survey results suggest that following the
 liberalization, significantly more emphasis was placed by auditors on the
 provision of Management Advisory Services to audited companies. In
 relation to functions which are typically performed by auditors in order
 to form a professional opinion on corporate financial statements the
 survey revealed a large divergence in the perceptions of respondent
 groups.	  
Journal: European Accounting Review 
Pages: 85-108 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336881 
File-URL: http://hdl.handle.net/10.1080/096381897336881 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:85-108




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Feige 
Author-X-Name-First: Peter 
Author-X-Name-Last: Feige 
Title: How 'uniform' is financial reporting in Germany? - The example of foreign currency translation 
Abstract:
	      In many standard textbooks on comparative international
 accounting, a separate chapter is devoted to classification models of
 national financial reporting systems. Typically, the authors of
 'international accounting classification models' not only organize
 national financial reporting systems into certain groups and assign
 descriptive labels to these categories. Rather, they also tend to draw
 analogies with the disciplines of the natural sciences so as to justify
 the methodology which underlies their theoretical constructs. The validity
 of these methodological claims is indirectly being examined in this paper,
 which argues predominantly from an empirical angle. The focus of the essay
 is on the notion - usually advanced by the authors of the models under
 discussion - that German financial accounting practice can be described as
 'uniform', thus forming a contrast to the 'fair-judgemental' approach to
 financial reporting which is commonly held to prevail in the United
 Kingdom. In order to test these propositions, the accounting policies in
 the area of foreign currency translation in the consolidated accounts of a
 sample of British and German chemical companies are subjected to scrutiny. 
Journal: European Accounting Review 
Pages: 109-122 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336890 
File-URL: http://hdl.handle.net/10.1080/096381897336890 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:109-122




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher W. Nobes 
Author-X-Name-First: Christopher W. 
Author-X-Name-Last: Nobes 
Author-Name: Gerhard G. Mueller 
Author-X-Name-First: Gerhard G. 
Author-X-Name-Last: Mueller 
Title: How 'uniform' is financial reporting in Germany?: some replies 
Abstract:
	      This paper is a reply to that by Feige in this issue which
 criticizes the accounting classifications of Mueller and Nobes. It is
 suggested here that Feige's criticisms are either already expressed in
 more detail elsewhere or are inaccurate or both. Feige then claims to test
 the classifications but is really disputing the label 'uniform' for
 Germany. For either purpose, Feige's test based on one atypical issue
 using a very small sample is not appropriate. Anyway, it turns out that
 Mueller did not classify post-war German accounting as uniform, and Nobes
 uses the word differently from Feige.		
Journal: European Accounting Review 
Pages: 123-129 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336908 
File-URL: http://hdl.handle.net/10.1080/096381897336908 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:123-129




Template-Type: ReDIF-Article 1.0
Author-Name: G. Jan Van Helden 
Author-X-Name-First: G. Jan Van 
Author-X-Name-Last: Helden 
Title: Cost allocation and product costing in Dutch local government 
Abstract:
	      The importance of cost allocation and product costing in
 Dutch local government organizations is increasing for two reasons: first,
 due to a switch from centralized to decentralized control, which implies a
 stronger responsibility by divisional managers for the transformation of
 inputs into outputs; second, because of growing pressure to deliver more
 value for money, which may lead to incentives for cost conscious
 behaviour. This paper looks at general concepts of cost allocation and
 product costing. It also deals with questions concerning the extent to
 which particular aspects of municipalities must be taken into account. An
 incomplete operation of the internal market of indirect activities will be
 explained by 'government-specific' factors, like the heterogeneity and
 non-quantifiability of outputs, monopolistic supply conditions and the
 inclination of politicians to directly influence the amount and quality of
 indirect services.	     
Journal: European Accounting Review 
Pages: 131-145 
Issue: 1 
Volume: 6 
Year: 1997 
Month: 5 
X-DOI: 10.1080/096381897336917 
File-URL: http://hdl.handle.net/10.1080/096381897336917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:1:p:131-145




Template-Type: ReDIF-Article 1.0
Author-Name: J. L. Bouma 
Author-X-Name-First: J. L. 
Author-X-Name-Last: Bouma 
Author-Name: D. W. Feenstra 
Author-X-Name-First: D. W. 
Author-X-Name-Last: Feenstra 
Title: Accounting and business economics traditions in the Netherlands 
Abstract:
  Until the 1970s Dutch accounting theorists generally showed a strong
 inclination towards the formulation of deductive theories. A set of
 different disciplines, all related to the problems of the business firm,
 made up a whole called 'bedrijfseconomie' (business economics). The theory
 of value, which was tantamount to the theory of replacement value, was
 without doubt the core of 'bedrijfseconomie'. This paper elaborates on the
 changes in contents and consequences of this theory of replacement value
 during the second part of this century. Furthermore three other technical
 aspects of the accounting part of business economics will also be
 discussed: social accounting and reporting, translation of foreign
 currencies, and intangibles, especially goodwill. Since the seventies the
 construct of 'bedrijfseconomie' has fallen apart. Each discipline formerly
 belonging to it, has independently found its tie-up with the respective
 international scientific developments. 'Bedrijfseconomie' has lost its
 significance as a comprehensive academic discipline. 
Journal: European Accounting Review 
Pages: 175-197 
Issue: 2 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764724 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:2:p:175-197




Template-Type: ReDIF-Article 1.0
Author-Name: Salme Nasi 
Author-X-Name-First: Salme 
Author-X-Name-Last: Nasi 
Author-Name: Juha Nasi 
Author-X-Name-First: Juha 
Author-X-Name-Last: Nasi 
Title: Accounting and business economics traditions in Finland - from a practical discipline into a scientific subject and field of research 
Abstract:
  The first three business schols in Finland were founded during the 1910s
 and 1920s. Today there are nine business school units with some 12000
 students in Finland. Accounting forms the oldest and most fundamental
 branch of business economics. Bookkeeping and calculation were included
 from the very begining in the business school curriculum. Even today
 accounting has its own profile and areas of research and teaching among
 other functional and more comprehensive or synthetic branches of business
 economics. This article describes the development of accounting as an
 academic discipline and as a part of business economics education in
 Finland. This study is based on a variety of historical documents:
 business economics and accounting dissertations and other research
 studies, academic textbooks, articles in professional journals, study
 guides for business school programmes etc. Our aim is to produce a
 comprehensive picture of the development of accounting as an academic
 subject and a part of business economics in Finland. 
Journal: European Accounting Review 
Pages: 199-229 
Issue: 2 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764725 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764725 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:2:p:199-229




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Pierre Nioche 
Author-X-Name-First: Jean Pierre 
Author-X-Name-Last: Nioche 
Author-Name: Yvon Pesqueux 
Author-X-Name-First: Yvon 
Author-X-Name-Last: Pesqueux 
Title: Accounting, economics and management in France: the slow emergence of an 'accounting science' 
Abstract:
  The relationship (or what might be better described as the absence of a
 relationship) between accounting, economics and management is an important
 feature of a French tradition built on a society in which accountants have
 been regarded as the 'poor relations' of the business community. This
 pattern is presented in the second part of the title of this article as
 'the slow emergence of an accounting science'. French business traditions
 have influenced accounting mainly through the property rights established
 by the French Revolution. The French bourgeoisie's concern with
 inheritance gave rise to a form of accounting which emphasized the balance
 sheet and inventory valuation, rather than cash flow analysis. Throughout
 the 19th century accounting in France was taught as a technical subject,
 secondary to the 'noble' disciplines such as engineering, law and later,
 economics. In the mid-20th century, the state, via the 'Conseil National
 de la Comptabilite' (the National Accounting Council) laid down accounting
 principles under the 'Plan Comptable'. The separation between financial
 accounting and cost accounting reflected that between entrepreneurs or
 owners on the one hand and engineers or administrators on the other.
 Unlike the Anglo-Saxon countries, France did not recognize accountancy as
 a profession in its own right until recently. Recent years have seen a
 radical transformation of French accounting policies and conventions under
 the combined influence of the emerging requirements of financial markets,
 the globalization of business and the growing independence of the
 accountancy profession. 
Journal: European Accounting Review 
Pages: 231-250 
Issue: 2 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764719 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764719 
File-Format: text/html
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Handle: RePEc:taf:euract:v:6:y:1998:i:2:p:231-250




Template-Type: ReDIF-Article 1.0
Author-Name: Henk Langendijk 
Author-X-Name-First: Henk 
Author-X-Name-Last: Langendijk 
Title: The market for audit services in the Netherlands 
Abstract:
  Many studies have been conducted on the market for audit services in the
 Anglo-Saxon countries, but to date very few have focussed on continental
 Europe. This paper studies the audit services market in the Netherlands.
 The findings indicate similarities with respect to determining factors for
 the audit fee in the market for audit services in the Netherlands and
 countries previously studied. However, we have also found differences.
 Contrary to most of the other studies there is no fee premium for the Big
 Six as a group. Within the Big Six KMPG does earn a fee premium. With
 respect to intra-Big Six audit fee differences, it seems that some
 accounting firms do receive a fee premium in some countries. This could
 mean that the reputation of Big Six firms is typically country-related,
 rather than global. In addition to the existing literature we constructed
 a slightly different model for the financial services industry. None of
 the Big Six firms received a fee premium in this industry. This suggests
 that industry specialists in the financial services industry in the
 Netherlands do not earn a higher fee than non-specialists. 
Journal: European Accounting Review 
Pages: 253-264 
Issue: 2 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764721 
File-Format: text/html
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Handle: RePEc:taf:euract:v:6:y:1998:i:2:p:253-264




Template-Type: ReDIF-Article 1.0
Author-Name: Bill Nixon 
Author-X-Name-First: Bill 
Author-X-Name-Last: Nixon 
Title: The accounting treatment of research and development expenditure: views of UK company accountants 
Abstract:
  Although Research and Development and intellectual property are becoming
 central to the competitive advantage of more companies, the Financial
 Accounting Standards Board (USA), the Accounting Standards Board (UK) and
 the International Accounting Standards Committee each prescribe a
 different treatment for the same development expenditure. This paper is
 based on the views of senior accountants on the treatment of R&D
 expenditure in companies that undertake over seventy per cent of UK
 industry-funded R&D. Most respondents prefer to expense all R&D costs
 immediately for the theoretically sound reason that the ex ante benefits
 are too uncertain; by contrast there is a strong consensus that the ex
 post benefits of R&D expenditure are positive. Two important dimensions of
 the corporate reporting accountants' perspective emerge: first, disclosure
 is seen as much more important than the accounting treatment of R&D
 expenditure and, second, the financial statements are not viewed as the
 primary channel of communication for information on R&D. These perceptions
 suggest that UK accounting regulators need to move beyond a focus on the
 narrow technical issues of R&D in order to consider the role of financial
 statements in the wider communication process that occurs between
 companies and accounts users. 
Journal: European Accounting Review 
Pages: 265-277 
Issue: 2 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764720 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764720 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:2:p:265-277




Template-Type: ReDIF-Article 1.0
Author-Name: John Flower 
Author-X-Name-First: John 
Author-X-Name-Last: Flower 
Title: The future shape of harmonization: the EU versus the IASC versus the SEC 
Abstract:
  The paper analyses the implications of the EUs proposal to permit large
 multi-national corporations (global players) to present their consolidated
 accounts in accordance with the IASs of the IASC. After an analysis of the
 problems faced by both the EU and the global players, it considers the
 chances of the EU and the IASC reaching agreement. A major problem is
 identified as being that the IASC is dominated by the Anglo-American
 approach to financial reporting which is fundamentally different from the
 Continental European approach followed in the EUs directives. It is felt
 that a compromise might be achieved if both the EU and the IASC agreed to
 restrict the application of IASs to the consolidated accounts of the
 global players. Finally the position of the American SEC is considered in
 the light of the IASC-IOSCO agreement. The paper concludes that it is
 improbable that the SEC will accept the IASs for listing purposes on Wall
 Street. 
Journal: European Accounting Review 
Pages: 281-303 
Issue: 2 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764723 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:2:p:281-303




Template-Type: ReDIF-Article 1.0
Author-Name: David Cairns 
Author-X-Name-First: David 
Author-X-Name-Last: Cairns 
Title: The future shape of harmonization: a reply 
Abstract:
Journal: European Accounting Review 
Pages: 305-348 
Issue: 2 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:2:p:305-348




Template-Type: ReDIF-Article 1.0
Author-Name: Daron Acemoglu 
Author-X-Name-First: Daron 
Author-X-Name-Last: Acemoglu 
Author-Name: Miles Gietzmann 
Author-X-Name-First: Miles 
Author-X-Name-Last: Gietzmann 
Title: Auditor independence, incomplete contracts and the role of legal liability 
Abstract:
  We develop a model in which there is conflict of interest between the
 management and the shareholders of an organization. Incompleteness of
 contracts prevents a simple contracting solution to this problem. We
 suggest that auditors can play a role in aligning the conflicting
 interests. However, this result is dependent on auditors maintaining
 independence from management. Again however, incompletenesses in
 contracting causes difficulties because it may be hard to ensure that
 auditors maintain this required independence. In this context, the
 imposition of potential legal liability (punishment) on the auditor, may
 be an important commitment mechanism for the auditors, making it credible
 that they will not collude with the management. In order to give our model
 institutional structure we study how this collusion may take place through
 the reappointment concerns of the auditor. In the reappointment game, we
 consider how legal liability levels could be chosen so that it becomes
 credible to expect that auditors will not implicitly collude with
 management and provide a low duty of care. 
Journal: European Accounting Review 
Pages: 355-375 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764727 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764727 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:355-375




Template-Type: ReDIF-Article 1.0
Author-Name: G. Geoffrey Booth 
Author-X-Name-First: G. Geoffrey 
Author-X-Name-Last: Booth 
Author-Name: Juha-Pekka Kallunki 
Author-X-Name-First: Juha-Pekka 
Author-X-Name-Last: Kallunki 
Author-Name: Teppo Martikainen 
Author-X-Name-First: Teppo 
Author-X-Name-Last: Martikainen 
Title: Delayed price response to the announcements of earnings and its components in Finland 
Abstract:
  Several studies report that even after accounting earnings are announced,
 estimated cumulative unexpected returns continue to drift up for firms
 that report unexpectedly good earnings and down for firms that report
 unexpectedly bad earnings. This paper shows that because Finnish companies
 tend to pay more attention to tax considerations than so-called economic
 reality when preparing their financial reports, this drift does not exist
 for reported earnings, i.e. net profit based on Finnish accounting
 regulations. It appears, however, that several other income levels
 assessed by financial statement analysis are important in this respect.
 The results imply that firms that make extensive adjustments for tax
 purposes have high unexpected returns. This is explained by the fact that
 those firms have enough income to extensively exploit the depreciation and
 other earnings management possibilities. 
Journal: European Accounting Review 
Pages: 377-392 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764729 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764729 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:377-392




Template-Type: ReDIF-Article 1.0
Author-Name: Trevor Boyns 
Author-X-Name-First: Trevor 
Author-X-Name-Last: Boyns 
Author-Name: John Richard Edwards 
Author-X-Name-First: John Richard 
Author-X-Name-Last: Edwards 
Author-Name: Marc Nikitin 
Author-X-Name-First: Marc 
Author-X-Name-Last: Nikitin 
Title: The development of industrial accounting in Britain and France before 1880: a comparative study of accounting literature and practice1 
Abstract:
  This paper sets out to examine the development, in Britain and France
 prior to 1880, of industrial accounting, defined for the purposes of this
 paper as the practice of cost calculation within an accounting system
 based on double entry bookkeeping. Similarities and differences between
 the two countries in regard to the development of an appropriate
 accounting literature and accounting practice are identified, and various
 explanations for the findings are explored. A close link is found to exist
 between the timing of the process of industrialization and the development
 of industrial accounting in each country, but it is suggested that
 economic factors alone do not provide a full explanation for the
 similarities and differences observed. 
Journal: European Accounting Review 
Pages: 393-437 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764730 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:393-437




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Gutierrez 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Gutierrez 
Author-Name: G. Whittington 
Author-X-Name-First: G. 
Author-X-Name-Last: Whittington 
Title: Some formal properties of capital maintenance and revaluation systems in financial accounting 
Abstract:
  Accounting systems are analysed from a theoretical perspective using
 mathematical methods of analysis and proof, supplemented by numerical
 illustrations. Earlier work which applied to capital maintenance systems,
 is developed and extended to encompass full accounting systems, which
 include valuation systems together with capital maintenance systems. An
 important possible property of accounting systems is temporal consistency
 and this requires the existence of two other properties, perdurability and
 revaluation neutrality. A general theorem is proved, which implies that,
 of six alternative accounting systems examined, only one, pure historical
 cost accounting, possesses all of these properties. This analysis is
 interpreted not as a basis for rejecting alternative accounting systems,
 but rather as affording an insight into their structures and properties. A
 particularly important insight is that even within a common accounting
 system, accounting measurements may not be strictly comparable if they do
 not share an identical temporal basis. 
Journal: European Accounting Review 
Pages: 439-464 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764734 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764734 
File-Format: text/html
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Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:439-464




Template-Type: ReDIF-Article 1.0
Author-Name: Vera Krisement 
Author-X-Name-First: Vera 
Author-X-Name-Last: Krisement 
Title: An approach for measuring the degree of comparability of financial accounting information 
Abstract:
  This contribution sets out to provide an index to measure comparability
 of financial accounting information concerning specific kinds of
 transactions or events. It suggests definitions for the terms of
 comparability of financial accounting information and of accounting
 method. Requirements are derived from these definitions which must be met
 by an index of comparability, and entropy is shown to be an appropriate
 measure fulfilling these requirements. The problem of multiple reporting
 is dealt with separately. Finally, the measurement concept developed is
 applied to an example from the FEE report for 1989. 
Journal: European Accounting Review 
Pages: 465-485 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764728 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764728 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:465-485




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Owusu-Ansah 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Owusu-Ansah 
Title: The determinants of voluntary financial disclosure by Swiss listed companies: a comment 
Abstract:
Journal: European Accounting Review 
Pages: 487-492 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764736 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764736 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:487-492




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Raffournier 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Raffournier 
Title: The determinants of voluntary financial disclosure by Swiss listed companies: a reply 
Abstract:
Journal: European Accounting Review 
Pages: 493-496 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764735 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:493-496




Template-Type: ReDIF-Article 1.0
Author-Name: A. Hernandez-Bastida 
Author-X-Name-First: A. 
Author-X-Name-Last: Hernandez-Bastida 
Author-Name: F. J. Vazquez-Polo 
Author-X-Name-First: F. J. 
Author-X-Name-Last: Vazquez-Polo 
Title: A note on the Quasi-Bayesian audit risk model for dollar unit sampling1 
Abstract:
  The Quasi-Bayesian (QB) model generates a complete probability mass
 function on the total amount of error in an accounting population for any
 random sample of dollar units or physical units. This probability mass
 function is used to estimate upper bounds (UBs) on the total amount of
 error in an accounting population. The underlying QB formulation can be
 summarized as Bayes' Theorem with a maximum likelihood, calculated using
 the multinomial distribution, substituted for the unknown likelihood. Any
 prior can be used. McCray did not provide any theoretical justification
 for using a maximum likelihood. To date the justification for the QB
 estimated UBs rests on intuitive arguments limited simulations and
 'windtunnel' tests. All these suggest the QB UBs may be reliable for audit
 purposes. This paper provides the theoretical justification for using a
 maximum likelihood in the QB model. It is based on the concept of 'partial
 prior information'. 
Journal: European Accounting Review 
Pages: 501-507 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764737 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764737 
File-Format: text/html
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Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:501-507




Template-Type: ReDIF-Article 1.0
Author-Name: Alicja Jaruga 
Author-X-Name-First: Alicja 
Author-X-Name-Last: Jaruga 
Author-Name: Anna Szychta 
Author-X-Name-First: Anna 
Author-X-Name-Last: Szychta 
Title: The origin and evolution of charts of accounts in Poland 
Abstract:
  Charts of accounts have played a vital role in the development of
 accountancy in Poland since the Second World War. In the period of the
 centrally-run economy the accounting of enterprises was based on uniform
 requirements. They included, among other things, the obligation to conduct
 accounting according to uniform or standard charts of accounts, which were
 frequently changed or modified temporarily. The radical political and
 economic transition in Poland after 1990 brought about changes to legal
 rules regulating accountancy. The changes aimed to reduce their number and
 complexity. Under the new legislation, business entities (apart from those
 in the budgetary sector and banks) develop individually their own plans of
 accounts which are best suited to financial reporting and management
 accounting purposes. This paper aims to give a synthetic presentation of
 the causes and effects of successive reforms of Polish plans of accounts
 as well as current practice concerning individual enterprise accounting
 plans. 
Journal: European Accounting Review 
Pages: 509-526 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764733 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:509-526




Template-Type: ReDIF-Article 1.0
Author-Name: Laurence Took 
Author-X-Name-First: Laurence 
Author-X-Name-Last: Took 
Title: Whatever happened to the Quadro Fedele? 
Abstract:
  The English language version of the Fourth Directive included a general
 clause that the accounts of a company should give a true and fair view.
 The same article 2 (3) of the Italian version of the directive called for
 the accounts of a company to give a quadro fedele. Several years later the
 directive was incorporated into Italian law, but, departing from the term
 used in the Italian version, called instead for the accounts to give una
 rappresentazione veritiera e corretta. This paper shows that since it
 first appeared in Italian law in 1983 there has been no homogeneous
 understanding in Italy among legal experts as to the meaning of a quadro
 fedele and that it was ultimately replaced in the 1990s with the
 rappresentazione veritiera e corretta because it failed in the mind of the
 legislators to reproduce in Italian the perceived spirit of the British
 version. 
Journal: European Accounting Review 
Pages: 527-539 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764738 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764738 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:527-539




Template-Type: ReDIF-Article 1.0
Author-Name: Regine Slagmulder 
Author-X-Name-First: Regine 
Author-X-Name-Last: Slagmulder 
Title: EIASM Intensive Seminar and Workshop on Japanese Practices in Management Accounting (Paris, 28-30 October 1996) 
Abstract:
Journal: European Accounting Review 
Pages: 541-544 
Issue: 3 
Volume: 6 
Year: 1998 
X-DOI: 10.1080/713764732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764732 
File-Format: text/html
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Handle: RePEc:taf:euract:v:6:y:1998:i:3:p:541-544




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Ahrens 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Ahrens 
Title: Strategic interventions of management accountants: everyday practice of British and German brewers 
Abstract:
  A popular stereotype has it that German firms are somehow 'long-term
 strategically oriented' and British firms focus on short-term financial
 gain. Analysing ethnographic material from British and German brewers,
 this paper explores how management accountants in the two countries
 conceive of their relationship with processes of strategic formulation and
 how they seek to mobilize strategic arguments in their day-to-day contacts
 with operational management. The focus of this study is not on the
 strategy debates which one might expect among senior management, but on
 routine interaction between management accountants and managers in which
 the mundane events of organizational life are made to happen in the name
 of loftier 'strategic' priorities. From observations of such interaction
 and management accountants' reflections on them, contrasting ways of
 integrating management accounting expertise with operational knowledge of
 the firm are suggested for the British and German brewers studied. Those
 contrasts are developed by drawing on the relationship between time and
 the possibility for strategic intervention more generally. 
Journal: European Accounting Review 
Pages: 557-588 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:557-588




Template-Type: ReDIF-Article 1.0
Author-Name: G. Geoffrey Booth 
Author-X-Name-First: G. Geoffrey 
Author-X-Name-Last: Booth 
Author-Name: John Broussard 
Author-X-Name-First: John 
Author-X-Name-Last: Broussard 
Author-Name: Otto Loistl 
Author-X-Name-First: Otto 
Author-X-Name-Last: Loistl 
Title: Earnings and stock returns: evidence from Germany 
Abstract:
  Past research in the US indicates that stock prices and earnings per
 share are related. Evidence pertaining to this relationship in other
 countries is not as extensive. This paper extends two recent studies
 focusing on Germany, and provides additional information concerning the
 important informative role played by DVFA earnings. DVFA earnings are a
 metric jointly constructed by the Deutscher Vereinigung fur Finanzanalyse
 und Anlageberatung and the Schmalenbach-Gesellschaftwith the purpose of
 providing investors and others interested in share value with a more
 meaningful measure of economic income than the traditional published
 earnings figure 
Journal: European Accounting Review 
Pages: 589-603 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000002 
File-Format: text/html
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Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:589-603




Template-Type: ReDIF-Article 1.0
Author-Name: James Patton 
Author-X-Name-First: James 
Author-X-Name-Last: Patton 
Author-Name: Ivan Zelenka 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Zelenka 
Title: An empirical analysis of the determinants of the extent of disclosure in annual reports of joint stock companies in the Czech Republic 
Abstract:
  The paper1develops and empirically tests a disclosure model for the fifty
 Czech joint-stock companies that were included in the 1993 Prague Stock
 Exchange Index. Independent variables are drawn from prior theoretical and
 empirical research concerning voluntary disclosure. Dependent variables
 are based on Czech laws and regulations concerning financial disclosures.
 Univariate analyses generally support the existence of the hypothesized
 relationships between extent of disclosure in annual reports and firm
 size, profitability performance, financial risk, and monitoring variables.
 Multivariate regressions explain about 25% of the variance in the extent
 of disclosure in annual reports. Statistically significant variables in
 the multiple regressions include type of auditor, number of employees,
 stock exchange listing status, and return on equity performance. The
 results provide initial insights into Czech managements' choices
 concerning financial reporting and suggest topics for additional research 
Journal: European Accounting Review 
Pages: 605-626 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:605-626




Template-Type: ReDIF-Article 1.0
Author-Name: Gerry Lawson 
Author-X-Name-First: Gerry 
Author-X-Name-Last: Lawson 
Author-Name: Peter Moeller 
Author-X-Name-First: Peter 
Author-X-Name-Last: Moeller 
Title: Research on cash flow accounting and analysis 
Abstract:
Journal: European Accounting Review 
Pages: 627-628 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:627-628




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Charitou 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Charitou 
Title: The role of cash flows and accruals in explaining security returns: evidence for the UK 
Abstract:
  The assessment of earnings usefulness in returns studies has been at the
 forefront of accounting research since the seminal work of Ball and Brown
 (1968). Recently, regulatory bodies worldwide have paid increased
 attention to cash flow reporting. Empirical research provides evidence
 that earnings information dominates cash flows in market-based accounting
 research. This study extends the growing empirical literature on the
 association of earnings and cash flows with security returns. We
 hypothesize that the association of cash flows with security returns
 improves (i) the smaller the absolute magnitude of aggregate accruals,
 (ii) the longer the measurement interval and (iii) the shorter the firm's
 operating cycle. The dataset consists of all UK firms included in the
 Global vantage database for the period 1984-1992. This study provides
 evidence that cash flows play a more important role in the marketplace
 when the operating cycle, magnitude of accruals and the measurement
 interval are taken into consideration. Moreover, results indicate that
 cash flows have more information content than earnings in explaining
 security returns. 
Journal: European Accounting Review 
Pages: 629-652 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:629-652




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Yap 
Author-X-Name-First: Christine 
Author-X-Name-Last: Yap 
Title: Users' perceptions of the need for cash flow statements &#x2014; Australian evidence 
Abstract:
  Professional accounting bodies have endorsed claims of the need for cash
 flow information through their issuance of Standards on cash flow
 statements. Few empirical studies have tested the extent to which
 decision-makers actually use cash flow information. Whilst market-based
 studies have tested the reaction of the stock market to the release of
 cash flow information, they have not established the usefulness of cash
 flow information to financial statement users. Such a study is important
 not just for the signals it gives to regulators, but also by virtue of the
 importance those signals have for the preparers of accounting information.
 The academic and professional literature, identify four possible
 contributing factors of demand for cash flow information: (i) the
 limitations of conventional accrual accounting, (ii) dissatisfaction with
 the funds statement, (iii) relevance for users' decisions, and (iv)
 changes in the reporting environment. To determine the extent to which
 investors and creditors agreed with these factors in favour of publishing
 cash flow data, a survey was conducted of workers in the finance industry
 in Australia. The results support the claims made in the academic and
 professional literature as to the need for cash flow information. Cash
 flow statements have become important sources of information for users.
 They have not, however, replaced the conventional income statement and
 balance sheet. All three financial statements are considered to be
 complementary. 
Journal: European Accounting Review 
Pages: 653-672 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000006 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:653-672




Template-Type: ReDIF-Article 1.0
Author-Name: Justice Arden 
Author-X-Name-First: Justice 
Author-X-Name-Last: Arden 
Title: True and fair view: a European perspective 
Abstract:
  The article considers the true and fair view from the viewpoint of the
 British courts of law. It is noted that while it is an obligation for all
 preparers to observe, its interpretation is a matter for the courts. It is
 a dynamic concept and the courts in the UK will interpret it
 contemporaneously in regard to the facts of the individual case, although
 accounting opinion would probably play an important role. Its function is
 to provide an opportunity for the court to adjudicate when there are
 problems which the rules do not solve. The ultimate legal authority is the
 European Court of Justice, but this does not mean that there must be a
 uniform EU interpretation of the true and fair view. 
Journal: European Accounting Review 
Pages: 675-679 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:675-679




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Colasse 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Colasse 
Title: The French notion of the image fidele: the power of words 
Abstract:
  The notion of image fidelewas introduced into French law in 1983.
 Confronted with the need to integrate this notion, both unknown and
 undefined, into the traditional notions of regularity and sincerity, the
 French accounting community collectively adopted an avoidance strategy.
 The strategy chosen was not that of challenging existing rules governing
 the preparation of the balance sheet and the profit and loss statement,
 but of using the notes to the accounts to record all information not
 specifically covered by these rules but nonetheless likely to contribute
 to the mythical image fidele. The major drawback to this strategy was the
 increasing number of pages devoted to the notes. Sooner or later, the
 search for the image fidelewould lead the French accounting community to
 bring into question certain traditional concepts and rules 
Journal: European Accounting Review 
Pages: 681-691 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:681-691




Template-Type: ReDIF-Article 1.0
Author-Name: Allan Cook 
Author-X-Name-First: Allan 
Author-X-Name-Last: Cook 
Title: Requirement for a true and fair view &#x2014; a UK standard-setter's perspective 
Abstract:
  The article examines the usefulness of the true and fair view to
 preparers, users and standard-setters, arguing that it is a signpost to
 the relevance of the underlying commercial reality, a means of
 strengthening the reporting obligation of preparers, an escape route in
 unusual circumstances, a means of supplying direction and authority for
 development of existing requirements and a brake on the proliferation of
 detailed rules. It then goes on to consider the usefulness of the true and
 fair view in the specific context of regulating accounting for off balance
 sheet financing. It concludes by arguing that the true and fair view has
 the capability to help evolution of European accounting rules by providing
 an underlying concept and a degree of freedom to interpret rules which
 become obsolete. 'Exactitude is not truth.' Henri Matisse 'A truth is
 always a compound of two half-truths, and you never reach it, because
 there is always something more to say.' Tom Stoppard 
Journal: European Accounting Review 
Pages: 693-704 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:693-704




Template-Type: ReDIF-Article 1.0
Author-Name: Graham Stacy 
Author-X-Name-First: Graham 
Author-X-Name-Last: Stacy 
Title: True and fair view: a UK auditor's perspective 
Abstract:
  The article reviews discussions which took place among audit regulators
 in the UK concerning the true and fair view in the context of an
 unpublished draft definition. It suggests that the term can be understood
 in relation to user needs for information and as such could apply to any
 accounting information of any kind. It notes that in practice the term
 has, over time, become associated exclusively with accounts prepared in
 compliance with financial reporting rules currently in force 
Journal: European Accounting Review 
Pages: 705-709 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000011 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Karel Van Hulle 
Author-X-Name-First: Karel 
Author-X-Name-Last: Van Hulle 
Title: The true and fair view override in the European Accounting Directives 
Abstract:
  This paper looks into the origin of the true and fair view override in
 the European Accounting Directives. It explains the meaning of the true
 and fair view override within the context of the Directives and how this
 principle has been implemented by the Member States of the European Union.
 The paper also compares the true and fair concept adopted in IAS 1 with
 the similar concept contained in the Accounting Directives. The paper
 concludes by emphasizing the usefulness of the true and fair view override
 within the context of an accounting regime based on a conceptual
 framework. 
Journal: European Accounting Review 
Pages: 711-720 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000012 
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Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:711-720




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Walton 
Author-X-Name-First: Peter 
Author-X-Name-Last: Walton 
Title: The true and fair view and the drafting of the Fourth Directive 
Abstract:
  The article reviews the drafting of the Fourth Directive with a view to
 analysing the mechanisms whereby the overriding requirement that accounts
 should provide a true and fair view of the state of affairs of a company
 was introduced into the second draft of the directive. It examines the
 published comments from the expert group which wrote the initial
 discussion document and from the European Parliament and the Economic and
 Social Committee. It concludes that, since the initial concept was that
 the Directive should combine elements from existing member state statutes
 rather than create an independent approach, it should be expected that UK
 and Irish law would have an influence once these countries became members.
 There is, however, evidence that some accountants in the UK placed
 emphasis on the true and fair override as a means of escaping what they
 saw as the strictures of the Fourth Directive. 
Journal: European Accounting Review 
Pages: 721-730 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000013 
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Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Kuhner 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Kuhner 
Title: Maintaining economic stability as a motive for statutory accounting requirements 
Abstract:
  The impact of selected accounting rules on economic stability is
 analysed. Maintaining economic stability is claimed to be an important
 motive for regulatory intervention. In the first part of the paper, a
 framework for analysing the usefulness of such stabilizing intervention is
 proposed. There are differences between countries relating to the kind of
 economic relationship regulators are focusing on. To what extent should
 standard setting activities attempt to stabilize relationships between
 debtors and creditors rather than between capital market players? Should
 the determination of distributable profits or investor information be the
 predominating tool of policy making? In relation to these issues several
 common accounting rules are examined for their contribution to economic
 stability. 
Journal: European Accounting Review 
Pages: 733-754 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000014 
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Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Title: Stability, pseudo-stability, information and pseudo-information 
Abstract:
  This paper takes issue with Kuhner (1997) on four main points: &#x2022;
 the implications of accounting conventions, principles and valuation
 conventions; &#x2022; the role of Notes to the accounts; &#x2022; the
 relationship between distributable profits and liquidity; &#x2022; the
 significance of the efficient markets hypothesis. Kuhner's desire to make
 (page 749) 'published data on companies as informative as possible' is
 strongly supported, but we differ on what this may mean in practice. 
Journal: European Accounting Review 
Pages: 755-766 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000015 
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter Feige 
Author-X-Name-First: Peter 
Author-X-Name-Last: Feige 
Title: Yet more misconceptions concerning the 'uniformity' of German financial reporting 
Abstract:
  This paper consists of comments on the replies made by Nobes and Mueller
 (1997) to Feige's (1997) critique of their accounting classification
 models. It is argued here that Nobes' and Mueller's assumption that the
 German Handelsge-setzbuch covers most contentious financial reporting
 issues 'in detail', is not correct. This applies in particular to
 consolidated accounts which are an important element of German financial
 reporting practice. Foreign currency translation, if used for testing a
 classification model, is therefore no 'outlier', as argued by Nobes and
 Mueller. Nobes' and Mueller's idea that German financial reporting
 practice can be described as 'uniform' because of 'accounting charts' is
 not compelling, since the 'Industriekontenrahmen' (IKR) which Nobes and
 Mueller apparently have in mind, merely serve the purpose of providing
 non-compulsory frameworks for the process of 'orderly bookkeeping'. The
 IKR's do not lead to 'uniformity' of the more highly aggregated data
 published in annual reports. In addition, it would appear that the
 classification models by Nobes and Mueller lack a theoretical background,
 i.e. there is no theory to be tested in conjunction with them. In view of
 this shortcoming of their own models, the bold statements of Nobes and
 Mueller concerning the scientific soundness of some classifications in the
 natural sciences appear particularly questionable. 
Journal: European Accounting Review 
Pages: 767-772 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000016 
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Template-Type: ReDIF-Article 1.0
Author-Name: Veronique Weets 
Author-X-Name-First: Veronique 
Author-X-Name-Last: Weets 
Author-Name: Marc Jegers 
Author-X-Name-First: Marc 
Author-X-Name-Last: Jegers 
Title: Are the 'Big Six' 'big' in Belgium? 
Abstract:
  Studies in the United States, Europe and Australia have shown that the
 market for audit services is highly concentrated and largely dominated by
 the same 'Big Six' international audit firms. This paper measures the
 degree of concentration in the Belgian audit market through an empirical
 study of the number of professionally qualified auditors employed by each
 audit firm and some characteristics of their clients. Our calculations
 show that the concentration ratios, however measured, are low when
 compared with other countries, possibly due to the low value attached to
 the certification of financial statements by a professionally qualified
 auditor. This lack of importance can be explained by characteristics of
 the Belgian environment (e.g. a relatively passive capital market,
 dominated by a few large holding companies) which may induce companies to
 chose cheaper (domestic) audit firms. We also calculate Spearman rank
 correlations between the rankings of the audit firms based upon the
 different audit firm revenue proxies. All the correlations show it is of
 no importance which measure is used to rank audit firms. 
Journal: European Accounting Review 
Pages: 773-789 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000017 
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Template-Type: ReDIF-Article 1.0
Author-Name: Geoff Jones 
Author-X-Name-First: Geoff 
Author-X-Name-Last: Jones 
Title: Revising the role of profit-seeking in management and accounting history 
Abstract:
Journal: European Accounting Review 
Pages: 791-798 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000018 
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Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:791-798




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Luis GandIa Cabedo 
Author-X-Name-First: Juan Luis GandIa 
Author-X-Name-Last: Cabedo 
Title: Relationship between accounting changes and the capital market 
Abstract:
Journal: European Accounting Review 
Pages: 799-801 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000019 
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Template-Type: ReDIF-Article 1.0
Author-Name: Gerard Mertens 
Author-X-Name-First: Gerard 
Author-X-Name-Last: Mertens 
Title: The impact of changes in financial reporting regulation on financial accounting method choice1 
Abstract:
Journal: European Accounting Review 
Pages: 801-804 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000020 
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Handle: RePEc:taf:euract:v:6:y:1997:i:4:p:801-804




Template-Type: ReDIF-Article 1.0
Author-Name: Charalambos Spathis 
Author-X-Name-First: Charalambos 
Author-X-Name-Last: Spathis 
Title: Segment reporting: theoretical analysis and empirical approach in Greek enterprises 
Abstract:
Journal: European Accounting Review 
Pages: 804-807 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000021 
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Template-Type: ReDIF-Article 1.0
Author-Name: Wim Van der Stede 
Author-X-Name-First: Wim 
Author-X-Name-Last: Van der Stede 
Title: Strategy &#x2014; control &#x2014; performance: an empirical analysis in large, independent, Belgian firms 
Abstract:
Journal: European Accounting Review 
Pages: 807-809 
Issue: 4 
Volume: 6 
Year: 1997 
X-DOI: 10.1080/09638189700000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638189700000022 
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Template-Type: ReDIF-Article 1.0
Author-Name: Alnoor Bhimani 
Author-X-Name-First: Alnoor 
Author-X-Name-Last: Bhimani 
Title: Knowledge, motivation and accounting form: an historical exploration 
Abstract:
  Understanding how individuals make decisions about and with accounting
 information and how they react to different aspects and forms of
 accounting has been of much interest to cognitive accounting researchers.
 However, the origins of cognitive characteristics and the manner in which
 they shape accounting form has not received much attention. This essay
 attempts to explore the underlying basis of two cognitive characteristics
 (knowledge and motivation) and their roles in conditioning accounting form
 within an historical context. Primary information on two
 nineteenth-century French mining and metallurgical enterprises provides
 the vehicle for the study. The knowledge base of company directors is
 argued to have been influenced by their educational training at the Ecole
 Polytechnique. Moreover, the paper argues that both directors'
 predilection to quantitative reasoning and their sharp sensitivity to the
 prospect of economic gains were associated with the sophisticated and
 extensive appeal which they made to financial analysis and
 accounting-based argumentation. The essay concludes with remarks on the
 potential which historical questioning of the type undertaken here offers
 for widening the agenda of research in accounting concerned with
 cognition. 
Journal: European Accounting Review 
Pages: 1-30 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336556 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336556 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jyrki Niskanen 
Author-X-Name-First: Jyrki 
Author-X-Name-Last: Niskanen 
Author-Name: Juha Kinnunen 
Author-X-Name-First: Juha 
Author-X-Name-Last: Kinnunen 
Author-Name: Eero Kasanen 
Author-X-Name-First: Eero 
Author-X-Name-Last: Kasanen 
Title: A note on the information content of parent company versus consolidated earnings in Finland 
Abstract:
  Little empirical research has been focused on analysing the information
 content of consolidated versus parent-only earnings numbers. In most
 European countries corporate annual reports include parent company
 statements, whereas in the USA only consolidated financial statements are
 available to shareholders. Using accounting and market data from
 thirty-five Finnish listed firms, we examine the information content of
 consolidated versus parent-only earnings, after controlling for each
 other. The results show that consolidated earnings are a significant
 incremental explanatory variable for stock returns, while parent-only
 earnings are not. The findings suggest that consolidation improves the
 information content of earnings, and the requirement to disclose
 parent-only earnings should be based on arguments other than their
 value-relevance to shareholders. 
Journal: European Accounting Review 
Pages: 31-40 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336565 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336565 
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Handle: RePEc:taf:euract:v:7:y:1998:i:1:p:31-40




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Plenborg 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Plenborg 
Title: A comparison of the information content of US and Danish earnings 
Abstract:
  This study provides a more in-depth comparison of the information content
 of US and Danish earnings than has previously been done. Alford et al.
 (1993) is essentially the only prior study which has compared the
 information content of US and Danish earnings. They find that US earnings
 are relatively more informative than Danish earnings. However, the study
 of Alford et al. (1993) suffers from several deficiencies, which questions
 the conclusion drawn in their study. This study addresses these
 deficiencies. First, the sample size is increased from 19 to 121
 companies. Further, the comparison is carried out on the basis of
 operating income, net income and comprehensive income rather than net
 income alone. By examining these income measures and by concentrating on a
 comparison of US and Danish earnings alone it is possible to provide
 explanations for differences in the information content of US and Danish
 earnings. Finally, this study avoids a size problem by including all
 Danish listed companies. Given the improvements in the research design and
 sample size this study finds that Danish earnings seem to be at least as
 informative as US earnings. In fact, in many cases Danish earnings appear
 more informative than US earnings. This is the case when both an
 earnings-return association approach and a perfect foresight portfolio
 approach are applied. 
Journal: European Accounting Review 
Pages: 41-63 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336574 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336574 
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Template-Type: ReDIF-Article 1.0
Author-Name: Bent Warming-Rasmussen 
Author-X-Name-First: Bent 
Author-X-Name-Last: Warming-Rasmussen 
Author-Name: Lars Jensen 
Author-X-Name-First: Lars 
Author-X-Name-Last: Jensen 
Title: Quality dimensions in external audit services- an external user perspective 
Abstract:
  A particular characteristic of auditing is that it is aimed at a
 heterogeneous group of stakeholders with occasionally diverging interests.
 This makes it even more relevant, though complicated, to determine exactly
 what users regard as quality. Based on empirical research, this paper
 investigates how two external user groups (shareholders and financial
 journalists) perceive audit quality, and analyses whether managing
 directors (preparers) and public accountants (auditors) evaluate the
 salient quality attributes differently. The overall results are as
 follows. (1) External users tend to perceive audit quality attributes as
 attributes that also inspire confidence in the auditor. (2) A number of
 different quality attributes can be summarized under six main quality
 dimensions. These dimensions mainly concern moral and ethical aspects. (3)
 The four groups of respondents (shareholders, financial journalists,
 managing directors and public accountants) assign significantly different
 values to these quality dimensions. 
Journal: European Accounting Review 
Pages: 65-82 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336583 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336583 
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Template-Type: ReDIF-Article 1.0
Author-Name: Atul Shah 
Author-X-Name-First: Atul 
Author-X-Name-Last: Shah 
Title: Exploring the influences and constraints on creative accounting in the United Kingdom 
Abstract:
  Allegations of creative accounting by management of listed corporations
 in the UK do not abate. To the extent that these practices distort the
 underlying reported financial performance of firms, they conflict with the
 basic aims of accounting regulation - to provide consistent and comparable
 financial information to users. Studies have shown that accounting choices
 are influenced by a range of contracting, financing and operational
 factors. However, we still know little about what constraints exist
 against the practice of creative accounting and how effective these are.
 Issues such as the extent to which the press and analysts are successful
 in restraining creative accounting, and the role the 'true and fair view'
 principle and auditors play in the prevention of such practices still
 remain unresolved. This article explores these themes by examining the
 accounting practices of two UK companies which issued a creative financing
 instrument. Using a combination of interview, documentary, and financial
 statement information, the analysis shows that management took advantage
 of gaps in accounting standards to present a biased picture of financial
 performance. Auditors did not appear to restrain such practices, and the
 true and fair view principle, rather than unifying accounting practice,
 appears to tolerate a range of interpretations. Adverse media publicity
 appears to be a successful deterrent in the medium term, but since the
 press are not regulators, their reporting is not necessarily consistent or
 predictable. UK analysts at the time did not evaluate accounting practices
 in any significant detail, and thus this potential restraint was not
 effective. Overall, the influences and constraints on creative accounting
 are illuminated in this study in a way which provides new insights into
 our understanding of financial reporting. 
Journal: European Accounting Review 
Pages: 83-104 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336592 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336592 
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Handle: RePEc:taf:euract:v:7:y:1998:i:1:p:83-104




Template-Type: ReDIF-Article 1.0
Author-Name: Nikos Vafeas 
Author-X-Name-First: Nikos 
Author-X-Name-Last: Vafeas 
Author-Name: Lenos Trigeorgis 
Author-X-Name-First: Lenos 
Author-X-Name-Last: Trigeorgis 
Author-Name: Xenia Georgiou 
Author-X-Name-First: Xenia 
Author-X-Name-Last: Georgiou 
Title: The usefulness of earnings in explaining stock returns in an emerging market: the case of Cyprus 
Abstract:
  The paper presents evidence that earnings levels as well as changes in
 earnings are important in explaining stock returns in an emerging stock
 market. The study employs data on all listed firms in the Cyprus Stock
 Exchange over the ten-year period 1985-1994. Operating cash flows have no
 incremental information content beyond earnings. Earnings is more
 informative for larger firms consistent with the notion that accounting
 information by larger firms is perceived as being more reliable. Moreover,
 the earnings-returns relationship is not linear, being stronger for
 positive earnings levels and changes than for negative. Finally, the
 usefulness of earnings is statistically higher in the later half of the
 sample period. Overall, the results suggest that investors price earnings
 information in this emerging market. 
Journal: European Accounting Review 
Pages: 105-124 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336600 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336600 
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Handle: RePEc:taf:euract:v:7:y:1998:i:1:p:105-124




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Evans 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Evans 
Author-Name: Christopher Nobes 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Nobes 
Title: Harmonization of the structure of audit firms: incorporation in the UK and Germany 
Abstract:
  The Eighth EU Council Directive addresses the harmonization of the
 conditions for the approval of auditors. This paper deals specifically
 with the approval of incorporated audit firms, which is regulated by
 Article 2 of the Directive, and with the extent to which the Eighth
 Directive has improved de jure harmonization of the rules for incorporated
 audit firms between UK and German law. The development of Article 2 from
 the proposal to the final version of the Directive is studied, as is the
 implementation of Article 2 into UK and German law and the reasoning
 behind the choices made by both Member States in this process. Although
 considerable changes were made to the laws of both countries, little
 greater de jure harmony was achieved. 
Journal: European Accounting Review 
Pages: 125-148 
Issue: 1 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336619 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336619 
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Handle: RePEc:taf:euract:v:7:y:1998:i:1:p:125-148




Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Dumontier 
Author-X-Name-First: Pascal 
Author-X-Name-Last: Dumontier 
Author-Name: Real Labelle 
Author-X-Name-First: Real 
Author-X-Name-Last: Labelle 
Title: Accounting earnings and firm valuation: the French case 
Abstract:
  Considering that the level of the association between stock returns and
 accounting earnings provides a measure of the extent to which earnings
 summarize the information which is useful for firm valuation, this paper
 analyses the contemporaneous association between stock returns and
 earnings changes or earnings level of individual French stocks and
 portfolios for periods of one, two and five years between 1981 and 1990.
 The empirical findings are as follows. (a) Stock returns are more linked
 to earnings changes than to earnings levels indicating that earnings
 provide more information about changes in firm value than about firm
 value. (b) Earnings prepared in accordance with the French accounting
 principles are not less value-relevant than those prepared in accordance
 with US or UK GAAP. (c) A cross-sectionally and time-aggregated data
 procedure provides a large increase in the explanatory power of earnings
 for returns which is consistent with a noise-in-earnings effect probably
 induced by accounting measurement and valuation principles and with a
 recognition lag effect due to the fact that value-relevant events are not
 integrated into earnings exactly when they occur. These two effects are
 shown to be the major causes of the low association between earnings and
 returns generally observed in studies based on short period data for
 individual stocks. 
Journal: European Accounting Review 
Pages: 163-183 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336439 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336439 
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:163-183




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Marcon 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Marcon 
Author-Name: Fabrizio Panozzo 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Panozzo 
Title: Reforming the reform: changing roles for accounting and management in the Italian health care sector 
Abstract:
  This paper examines the ways in which accounting has intervened in the
 process of reforming the original 'reform' of the Italian health care
 system. By stepping into an ongoing process accounting has been asked not
 only to foster efficiency, effectiveness and value for money, but to
 correct as well the 'degeneration' of the original reform, which subjected
 health care delivery to 'democratic' scrutiny and political control. The
 call for a greater accountability in the use of public resources has been
 thus interpreted as both a mechanism of surveillance and control and a way
 to resist the 'over-politicization' of health sector management together
 with the abuses, scandals and fraudulent behaviour it induced. In seeking
 to interpret the specificity of the Italian experience, the paper suggests
 that the range of 'the contexts in which accounting operates' should be
 broadened in order to gain a deeper understanding of its roles in those
 institutions, such as health care systems, which play a crucial role in
 modern societies. In order to move in this direction systematic and
 empirically grounded cross-national comparisons are called for, since,
 although accounting and management are involved in virtually all attempts
 to redesign health care services, consequences are likely to be different
 when conditions of possibility differ at the outset. 
Journal: European Accounting Review 
Pages: 185-208 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336448 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336448 
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:185-208




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Skaerbaek 
Author-X-Name-First: Peter 
Author-X-Name-Last: Skaerbaek 
Title: The politics of accounting technology in Danish central government 
Abstract:
  The social and political aspects of a governmental computer-based
 accounting system (SCR) in Denmark will be examined. It is generally
 accepted that the SCR system has fulfilled a number of useful purposes.
 However, it has also been subjected to adverse criticism, as extensive,
 political implications have been detected in its application. In the study
 I have analysed the application of accounting technology from a political
 perspective. One of the main findings of this study indicates that the
 centralized management accounting system has implications for the balance
 between autonomy and control. It is suggested that centralized accounting
 technology creates a management view that symbolizes dependency and
 bureaucracy. If such an understanding of accounting technology is
 integrated with theories of management control, we may find that the SCR
 system will have an impact on the evolution of local management control in
 government agencies. 
Journal: European Accounting Review 
Pages: 209-236 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336457 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336457 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:209-236




Template-Type: ReDIF-Article 1.0
Author-Name: Niamh Brennan 
Author-X-Name-First: Niamh 
Author-X-Name-Last: Brennan 
Author-Name: Patrick Nolan 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Nolan 
Title: Employment and remuneration of Irish chartered accountants: evidence of 
Abstract:
  Literature on gender-based salary differentials has proliferated in
 recent years but there have been few studies on salary differentials in
 the accounting profession. This paper examines factors influencing
 remuneration of Irish chartered accountants. Responses to the Leinster
 Society of Chartered Accountants (LSCA) annual salary survey in 1995 and
 1996 were analysed. Employee-related and employer-related factors
 influencing remuneration were examined including gender, work experience,
 level of responsibility, employment contract and size and industry. Gender
 was a significant explanatory variable in explaining differences in
 salaries paid to employees working in non-audit businesses. Gender,
 however, was not found to be significant in explaining differences in
 salaries paid in audit practices. As partners in auditing firms are not
 included in this research (because partners do not earn a salary) this
 finding must be interpreted cautiously. 
Journal: European Accounting Review 
Pages: 237-255 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336466 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336466 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:237-255




Template-Type: ReDIF-Article 1.0
Author-Name: Nerys Fuller-Love 
Author-X-Name-First: Nerys 
Author-X-Name-Last: Fuller-Love 
Title: Accounting in a European minority language: accounting in Welsh 
Abstract:
  This paper investigates the preparation of accounts and annual reports in
 a European minority language, the Welsh language. Changes in legislation
 including the statutory order enabling companies to file accounts in Welsh
 in 1992 and the Welsh Language Act in 1993 giving Welsh equal status to
 English has resulted in an increase in the number of companies preparing
 accounts in Welsh. This paper investigates the numbers and types of
 companies preparing accounts in Welsh as well as the motivation for doing
 so. The survey of companies in North and West Wales, the stronghold of the
 Welsh language, found that the groups most likely to prepare accounts in
 Welsh were public bodies who were now legally required to do so, companies
 serving the agricultural community, and companies operating in areas where
 the Welsh language was strongest. The paper also looks at some of the
 practical problems, including vocabulary, and concludes that there is a
 need for more research into accounting in other European minority
 languages. 
Journal: European Accounting Review 
Pages: 257-274 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336475 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336475 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:257-274




Template-Type: ReDIF-Article 1.0
Author-Name: Norvald Monsen 
Author-X-Name-First: Norvald 
Author-X-Name-Last: Monsen 
Author-Name: Salme Nasi 
Author-X-Name-First: Salme 
Author-X-Name-Last: Nasi 
Title: The Contingency Model of Governmental Accounting Innovations: a discussion 
Abstract:
  Comparative International Governmental Accounting Research (CIGAR) has
 been carried out for some twelve years. CIGAR research is, however,
 generally unfamiliar to researchers not belonging to the CIGAR network.
 Therefore, the paper aims at presenting and discussing critically CIGAR
 research with its Contingency Model of Governmental Accounting Innovations
 and suggests how CIGAR research and its Contingency Model could be
 developed. 
Journal: European Accounting Review 
Pages: 275-288 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336484 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336484 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:275-288




Template-Type: ReDIF-Article 1.0
Author-Name: Herve Stolowy 
Author-X-Name-First: Herve 
Author-X-Name-Last: Stolowy 
Author-Name: Michel Tenenhaus 
Author-X-Name-First: Michel 
Author-X-Name-Last: Tenenhaus 
Title: International accounting education in Western Europe 
Abstract:
  Based on a questionnaire sent to European institutions, the objective of
 this study is to determine how international accounting is taught in
 Europe. The results focus on the number of courses, the topics covered and
 the textbooks recommended. An agglomerative hierarchical clustering
 technique enabled us to define four groups of institutions, corresponding
 to different approaches to international accounting education.
 Discriminant topics were identified, making it possible to define a true
 'strategy' for the preparation of a course syllabus. Our survey also
 provides information relating to two matters of debate. First, although
 some differences do exist between countries, the majority of courses are
 specific, as opposed to general courses integrating certain international
 accounting aspects. Second, a material number of institutions succeed in
 covering both comparative aspects and accounting dimensions of
 multinational enterprises. 
Journal: European Accounting Review 
Pages: 289-314 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336493 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336493 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:289-314




Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Ossadnik 
Author-X-Name-First: Wolfgang 
Author-X-Name-Last: Ossadnik 
Title: Considering interrelationships in strategic decisions 
Abstract:
Journal: European Accounting Review 
Pages: 315-321 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336501 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336501 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:315-321




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Nobes 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Nobes 
Title: The future shape of harmonization: some responses 
Abstract:
Journal: European Accounting Review 
Pages: 323-330 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336510 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336510 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:323-330




Template-Type: ReDIF-Article 1.0
Author-Name: John Flower 
Author-X-Name-First: John 
Author-X-Name-Last: Flower 
Title: The future shape of harmonization: a reply 
Abstract:
Journal: European Accounting Review 
Pages: 331-333 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336529 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336529 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:331-333




Template-Type: ReDIF-Article 1.0
Author-Name: Jenny van Sten-van't Hoff 
Author-X-Name-First: Jenny van Sten-van't 
Author-X-Name-Last: Hoff 
Title: The evolution of corporate governance and management control in a post-socialist society: the case of a Czech textile company 
Abstract:
Journal: European Accounting Review 
Pages: 345-347 
Issue: 2 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336547 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336547 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:2:p:345-347




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Montesinos Julve 
Author-X-Name-First: Vicente Montesinos 
Author-X-Name-Last: Julve 
Title: Accounting and Business Economics in Spain 
Abstract:
  Economia de la Empresa (Business Economics) emerged in Spain as a
 distinct academic discipline in the second half of the twentieth century.
 In its early years, Business Economics shared common influences with
 Accounting, particularly ideas and theories acquired from the translation
 of Italian and German works on Economia Aziendale and
 Betriebswirtschaftslehre. However, partly because of the institutional
 structure of Spanish universities, the two disciplines moved apart. During
 the Franco regime, Spanish accounting research was quite isolated, and
 with the return of democracy and the move towards greater European
 involvement much research was devoted to issues of financial accounting
 harmonization and standardization. This normative research was of little
 interest to Business Economics researchers, who were developing analytical
 approaches grounded in economic theory. More recently, academics working
 in the two disciplines have drawn on a wider range of theoretical
 approaches, from empirical studies to behavioural and organizational
 theory and institutional economics based on agency theory and transaction
 cost analysis. At present, the disciplines 'walk separately down the same
 road', but the new generation of researchers has the opportunity to bring
 Accounting and Business Economics closer together from an intellectual and
 scientific point of view. 
Journal: European Accounting Review 
Pages: 357-380 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336330 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336330 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:357-380




Template-Type: ReDIF-Article 1.0
Author-Name: Danuta Krzywda 
Author-X-Name-First: Danuta 
Author-X-Name-Last: Krzywda 
Author-Name: Derek Bailey 
Author-X-Name-First: Derek 
Author-X-Name-Last: Bailey 
Author-Name: Marek Schroeder 
Author-X-Name-First: Marek 
Author-X-Name-Last: Schroeder 
Title: The development of the role of the statutory audit in the transitional Polish economy 
Abstract:
  The paper presents an analysis of the short form statutory audit reports
 relating to Polish listed companies from 1992 to 1996 inclusive (over 200
 reports) and a sample of unlisted business entities for 1992, 1993 and
 1995 (over 1,100 reports). The analysis focuses upon segmentation in the
 market for audit services as between foreign and domestic auditors;
 evolving attitudes to corporate governance as revealed through the
 addressees of short form statutory audit reports; the perceived nature of
 the statutory audit task as revealed in the incidence and nature of
 qualified audit opinions and explanatory notes to the unqualified
 opinions. The analysis confirms that Polish statutory audit regulation in
 relation to the short form audit report is comparable de jure to Western
 European norms. However, de facto, fewer going-concern qualifications are
 observed than may be expected in a society undergoing the economic
 restructuring implicit in the transition from a command to a market
 economy. In economic conditions characterized by high levels of systemic
 instability associated with the transition process, individual statutory
 auditors understandably eschew commercial judgements and focus on the
 legality of the accounting record. Such opinions may nevertheless be of
 value in a transitional economy. 
Journal: European Accounting Review 
Pages: 407-440 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336367 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336367 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:407-440




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Sundgren 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Sundgren 
Title: Auditor choices and auditor reporting practices: evidence from Finnish small firms 
Abstract:
  This paper examines the links between the likelihood of a modified audit
 report and the professional qualifications of the auditor for a sample of
 small and medium-sized firms. Like Denmark, Germany and Sweden, Finland
 has a two-tier system for qualifications. The data show that modified
 audit reports are more common in unprofitable, leveraged and failing
 firms, but there are no significant differences in the propensity to
 modify the report between auditors with the higher and lower professional
 qualification. However, it is found that non-professional auditors, i.e.
 auditors assumed to meet only general eligibility criteria specified by
 law, are less likely to modify the report. Finnish auditing laws stipulate
 that all companies must be audited. However, the company must be audited
 by a professional auditor only if the business exceeds a certain size.
 Therefore the paper continues with a study of factors related to the
 decision to engage a professional auditor, although the law does not
 require firms to do so. Results show that failing firms are significantly
 less likely to be audited by professional auditors than non-failing firms. 
Journal: European Accounting Review 
Pages: 441-465 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336376 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336376 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:441-465




Template-Type: ReDIF-Article 1.0
Author-Name: Ivo Blij 
Author-X-Name-First: Ivo 
Author-X-Name-Last: Blij 
Author-Name: Harold Hassink 
Author-X-Name-First: Harold 
Author-X-Name-Last: Hassink 
Author-Name: Gerard Mertens 
Author-X-Name-First: Gerard 
Author-X-Name-Last: Mertens 
Author-Name: Reiner Quick 
Author-X-Name-First: Reiner 
Author-X-Name-Last: Quick 
Title: Disciplinary practices and auditors in Europe: a comparison between Germany and the Netherlands 
Abstract:
  This paper presents the results of a comparative study on auditor
 responsibility within two members of the European Union: Germany and the
 Netherlands. Auditor responsibility is an important factor in establishing
 audit quality. The quality of service within the auditing profession is
 maintained through the promulgation of professional standards and
 disciplinary law. In Germany, the Wirtschaftspruferkammer is the
 supervisory body which oversees compliance with standards and professional
 duties. In the Netherlands, a special court (Raad van Tucht) is concerned
 with disciplinary actions against auditors. The results of this study show
 that the disciplinary laws, regulations and professional codes remain
 basically national, despite efforts to harmonize auditing to meet an
 increased demand for international audits. This study identifies
 characteristics of disciplinary systems common to both countries and
 provides information on the functioning of both systems that may be useful
 in a number of ways. The results presented might initiate a more
 systematic comparison of disciplinary systems within members of the
 European Union, which would enhance institutional knowledge of the
 European market for auditing services. This in turn could promote the
 process of further integration of the internal European market and reduce
 market inefficiencies. 
Journal: European Accounting Review 
Pages: 467-491 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336385 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336385 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:467-491




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Evans 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Evans 
Author-Name: Christopher Nobes 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Nobes 
Title: Harmonization relating to auditor independence: the Eighth Directive, the UK and Germany 
Abstract:
  The European Union Eighth Directive on the approval of auditors covers
 auditor independence only to a very limited extent. The provisions in the
 five articles on this subject are far less detailed than they were in the
 drafts of the directive, so that almost all specific regulation is left to
 the Member States. An examination of the development of the articles
 dealing with independence and integrity shows how the need to compromise,
 in order to reach an agreement, frustrated the intentions of the
 harmonizers. This paper traces the development of the independence rules
 in the Eighth Directive from the avant projet through the drafts to the
 final directive. It assesses the extent to which pre-Eighth Directive
 regulation in the UK and Germany may have affected the directive and then
 examines the implementation of the directive in the two countries. It
 concludes that national culture and accounting traditions prevented
 harmonization of independence rules through the Eighth Directive. 
Journal: European Accounting Review 
Pages: 493-516 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336394 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336394 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:493-516




Template-Type: ReDIF-Article 1.0
Author-Name: Kim Klarskov Jeppesen 
Author-X-Name-First: Kim Klarskov 
Author-X-Name-Last: Jeppesen 
Title: Reinventing auditing, redefining consulting and independence 
Abstract:
  This paper deals with recent developments in auditing, taking KPMG's
 'business measurement process' as its example. From this example it is
 discussed how and why auditing is currently being 'reinvented'. The
 'reinvention' of auditing, it is argued, represents a fundamental break
 with the established epistemological dualism between auditing and
 management advisory services,1 that is central to most literature on
 auditor independence, including the European Commission's Green Paper.
 Consequently, it is not only auditing that is being reinvented, it is also
 consulting and independence, and the consequences of this rupture are
 finally discussed. The paper concludes that the auditor cannot be
 independent because auditing is no longer independent. 
Journal: European Accounting Review 
Pages: 517-539 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336402 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336402 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:517-539




Template-Type: ReDIF-Article 1.0
Author-Name: Alain Mikol 
Author-X-Name-First: Alain 
Author-X-Name-Last: Mikol 
Author-Name: Peter Standish 
Author-X-Name-First: Peter 
Author-X-Name-Last: Standish 
Title: Audit independence and nonaudit services: a comparative study in differing British and French perspectives 
Abstract:
  This paper presents a comparative study of respective positions of the
 British and French public accounting professions on whether independence
 of the statutory auditor is at material risk of compromise from supply of
 nonaudit services by audit firms to audit clients. For the purpose of the
 study, attention was confined to regulatory texts and professional audit
 standards in both countries. It examines historical factors in the
 development of public accounting and auditing in Britain and France that
 have led to an accommodating attitude towards joint supply of audit and
 nonaudit services in the former and a less accommodating and more highly
 regulated stance in the latter. As a basis for interpreting the
 significance of these different national positions, the issue of joint
 supply is considered in an agency theory framework, in terms of relative
 advantages and disadvantages from joint supply of audit and nonaudit
 services to audit firms, management in place and external parties, notably
 shareholders. In practice, the issue turns largely on professional and
 regulatory specification of audit firm activities deemed incompatible with
 audit independence and on regulatory mechanisms for monitoring compliance
 in the matter. Although the French position is less accommodating, it is
 noted that major firms in France have adopted legal and organizational
 structures to deal with regulatory constraints and to protect their
 functioning as multi-service firms. At the same time, French regulatory
 authorities have hesitated to impose strong constraints on major firms,
 with the result that actual operation of the French audit market may not
 be as different from the British as it might at first appear. 
Journal: European Accounting Review 
Pages: 541-569 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336411 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336411 
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Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:541-569




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Hartmann 
Author-X-Name-First: Frank 
Author-X-Name-Last: Hartmann 
Title: Accounting for performance evaluation: effects of uncertainty on the appropriateness of accounting performance measures 
Abstract:
Journal: European Accounting Review 
Pages: 571-574 
Issue: 3 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336420 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336420 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:7:y:1998:i:3:p:571-574




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Leuz 
Author-X-Name-First: Christian 
Author-X-Name-Last: Leuz 
Title: The role of accrual accounting in restricting dividends to shareholders 
Abstract:
  This paper addresses the question why net earnings and other accrual
 accounting numbers are frequently used to restrict dividends to
 shareholders. Even though this role of accrual accounting is widely
 accepted in the literature, a theory explaining the role of accruals in
 dividend restrictions is still in its early stages. Building on the
 principal-agent framework, I argue that basic features of the accrual
 process can be viewed as arising from the demand for dividend restrictions
 mitigating debt-related incentive problems. This explanation is consistent
 with the observation that, historically, debt contracting, dividend
 restrictions and the development of accrual accounting have been closely
 related. The basic idea is that the use of transactions and events in the
 accrual process leads to a contingent specification of the upper bound on
 dividends in an earnings-based constraint. Transactions and events used in
 the accrual process can be viewed as imperfect, but verifiable indicators
 for (unverifiable) determinants of debt-related incentive problems. This
 general idea is applied to incentive problems that regularly arise in a
 multi-period context. The paper demonstrates that the accrual process may
 mitigate distortions in shareholders' investment decisions using
 provisions and depreciation charges as examples. 
Journal: European Accounting Review 
Pages: 579-604 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336204 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336204 
File-Format: text/html
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:579-604




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Miller 
Author-X-Name-First: Peter 
Author-X-Name-Last: Miller 
Title: The margins of accounting 
Abstract:
  This paper calls for attention to the margins of accounting. It argues
 that such a focus helps us to understand the formation and transformation
 of accounting, its permeability to other bodies of expertise, and how
 accounting has been made up out of ideas and practices drawn from
 elsewhere. Accounting, it is argued, is an assemblage of calculative
 practices and rationales that were invented in other contexts and for
 other purposes. To draw attention to the margins of accounting is to
 emphasize the fluid and mobile nature of accounting. Practices that are
 now regarded as central to accounting will have been at the margins
 previously, and practices that are at the margins today may be at the core
 of accounting in the future. The notion of costs for decision-making,
 discounting techniques for investment appraisal, and cost accounting as a
 way of governing the factory, provide the illustrative material. 
Journal: European Accounting Review 
Pages: 605-621 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336213 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:605-621




Template-Type: ReDIF-Article 1.0
Author-Name: P. B. Oyelere 
Author-X-Name-First: P. B. 
Author-X-Name-Last: Oyelere 
Author-Name: C. R. Emmanuel 
Author-X-Name-First: C. R. 
Author-X-Name-Last: Emmanuel 
Title: International transfer pricing and income shifting: evidence from the UK 
Abstract:
  The potential use of international transfer pricing (ITP) as an
 income-shifting mechanism by multinational enterprises (MNEs) has long
 been recognized. However, there is relatively little evidence to
 substantiate or discount this claim in relation to UK-based
 foreign-controlled enterprises (FCEs). This paper examines the possible
 use of ITP as an income-shifting mechanism by FCEs operating in the UK.
 The methodological approach involves the comparison of the profitability
 (performance) and dividend (post-performance) distributions of a sample of
 FCEs with those of UK-controlled enterprises (UKCEs) over a two-year
 period. The two samples are matched on the basis of their total assets
 (capability). Results reveal significant differences in the profitability
 and dividend distributions of the two groups. FCEs underperform UKCEs, but
 their level of dividend distribution outstrips those of UKCEs. Based on
 this sample of seventy-two companies, a firm is more likely to be an FCE,
 rather than a UKCE, if it reports a combination of lower performance and
 higher post-performance distribution. Evidence of significant income
 shifting by FCEs is confirmed and the claim that ITP is the key mechanism
 for such shifts cannot be dismissed. 
Journal: European Accounting Review 
Pages: 623-635 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336222 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336222 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Erkki Laitinen 
Author-X-Name-First: Erkki 
Author-X-Name-Last: Laitinen 
Author-Name: Teija Laitinen 
Author-X-Name-First: Teija 
Author-X-Name-Last: Laitinen 
Title: Qualified audit reports in Finland: evidence from large companies 
Abstract:
  The purpose of the study is to develop a logistic model based on
 financial statement information to identify qualified audit reports. The
 empirical data are retrieved from audit reports from thirty-seven
 publicly-traded companies (HeSE) in the years 1992, 1993 and 1994. Thus,
 there are in all 111 audit reports of which only eight are qualified in
 the way of including remarks or supplementary information. These eight
 qualifications concerned three companies during the period of study. The
 qualification decision (0/1) is explained by sixteen financial ratios and
 by the audit lag. Univariate analysis showed that the qualification of an
 audit report is mainly associated with low profitability, high
 indebtedness and low (negative) growth. The multivariate logistic model
 showed that the likelihood of receiving a qualification is larger, the
 lower the growth of the firm, the lower the share of equity in balance
 sheet and the smaller the number of employees. The total error rate of the
 model in Lachenbruch validation was only 5.4%. When two qualified reports
 containing remarks on an additional and a separate auditor were considered
 as non-qualified, the corresponding total error rate for a re-estimated
 logistic model was as low as 1.8%. This model also included the audit lag
 as an explanatory variable. The results of the study indicate that an
 efficient model to explain qualifications in the audit reports of Finnish
 publicly-traded companies can be found. 
Journal: European Accounting Review 
Pages: 639-653 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336231 
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:639-653




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Maijoor 
Author-X-Name-First: Steven 
Author-X-Name-Last: Maijoor 
Author-Name: Willem Buijink 
Author-X-Name-First: Willem 
Author-X-Name-Last: Buijink 
Author-Name: Roger Meuwissen 
Author-X-Name-First: Roger 
Author-X-Name-Last: Meuwissen 
Author-Name: Arjen Van Witteloostuijn 
Author-X-Name-First: Arjen 
Author-X-Name-Last: Van Witteloostuijn 
Title: Towards the establishment of an internal market for audit services within the European Union 
Abstract:
  The central issue in this paper is the creation of an internal market for
 audit services within the European Union (EU). It provides an analysis of
 the impact of differences between national auditing regulations on
 intra-EU trade in audit services. To that end, the paper distinguishes
 three forms of intra-Union crossborder trade in audit services: (1)
 cross-border establishment as an auditor; (2) cross-border provision of
 audit services; and (3) cross-border control of an audit firm. The paper
 also distinguishes four categories of regulation of auditing: (I)
 regulation of the qualification as an auditor; (II) regulation of
 competition between auditors or audit firms; (III) regulation of control
 of audit firms; and (IV) other regulations. For each of the three forms of
 intra-Union trade the paper indicates the importance of each of the four
 categories of regulation as trade barriers. For each of the three forms of
 trade the current level of intra-EU trade is then discussed. The paper
 shows that there is little such trade and argues that given the intra-EU
 auditor regulation differences, audit markets within the EU are still
 separate markets. This is of course remarkable against the background of
 the drive towards more market integration in the EU in general. The paper
 then uses insights from audit market research to suggest which forms of
 national audit market regulations in EU Member States should be removed to
 increase intra-EU trade in audit services. The paper identifies existing
 national regulations of the control of audit firms as the most important
 barrier. The paper argues that removing these (strict) regulations is the
 most promising route towards more intra-EU trade in audit services. 
Journal: European Accounting Review 
Pages: 655-673 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336240 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336240 
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:655-673




Template-Type: ReDIF-Article 1.0
Author-Name: Araceli Mora 
Author-X-Name-First: Araceli 
Author-X-Name-Last: Mora 
Author-Name: William Rees 
Author-X-Name-First: William 
Author-X-Name-Last: Rees 
Title: The early adoption of consolidated accounting in Spain 
Abstract:
  Consolidated accounting for corporations in Spain was rare before the
 Seventh European Directive, adopted by the European Union in 1983, and
 only became compulsory in 1991. During the intervening years a number of
 firms elected to adopt consolidated accounting even though they were not
 required to do so. These circumstances provide a useful insight into the
 early adoption of accounting practices as, in contrast with most previous
 studies of early adoption, (a) many firms adopted the accounting
 techniques well in advance of the required date, (b) consolidation makes a
 substantial impact on reported financial statements, and (c) the effect of
 consolidation can be beneficial or adverse. We find that those firms which
 adopted consolidated accounting early reported a significantly better
 change in reported performance at the time of adoption than those firms
 which only consolidated when required to do so. Firms that are subject to
 government regulation also tended to adopt early but the impact of
 consolidation on reported performance was not beneficial for regulated
 early adopters. 
Journal: European Accounting Review 
Pages: 675-696 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336259 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336259 
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:675-696




Template-Type: ReDIF-Article 1.0
Author-Name: Henk Post 
Author-X-Name-First: Henk 
Author-X-Name-Last: Post 
Author-Name: Celeste Wilderom 
Author-X-Name-First: Celeste 
Author-X-Name-Last: Wilderom 
Author-Name: Sytse Douma 
Author-X-Name-First: Sytse 
Author-X-Name-Last: Douma 
Title: Internationalization of Dutch accounting firms 
Abstract:
  This paper reports the internationalization efforts of Dutch accounting
 firms from 1972 onwards. The two largest and most prestigious Dutch
 accounting firms in 1972 first built their own network of foreign offices.
 Their primary motive for doing so was to follow their clients who were
 spreading their activities internationally. These same two firms and the
 third largest firm became co-founding members of three European
 federations of accounting firms. They hoped it would block the entry into
 the European market of the large American accounting firms. In the late
 1970s and early 1980s, these large Dutch firms found out that the American
 subsidiaries of Dutch multinational companies preferred to work in the US
 with one of the big American accounting firms. The Dutch firms realized
 that the only way to retain their domestic clients was to join one of the
 international networks set up by the big American accounting firms.
 Paradoxically, in order to become truly international (or part of an
 international network) they had to rely on contractual arrangements. 
Journal: European Accounting Review 
Pages: 697-707 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336268 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336268 
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:697-707




Template-Type: ReDIF-Article 1.0
Author-Name: A. Eilifsen 
Author-X-Name-First: A. 
Author-X-Name-Last: Eilifsen 
Title: Auditing regulation and the statutory auditor's responsibilities in Norway 
Abstract:
  The first part of the paper gives an overview of the historic development
 and current auditing regulation in Norway. Although auditing is regulated
 by legislation, the government has relied on the profession's
 self-regulation, especially in matters related to the conduct of an audit.
 In most cases, the Norwegian regulation arrangements and the statutory
 auditor's responsibilities bear resemblances to those found in other
 countries, especially the other Nordic countries. The second part of the
 paper illustrates how government regulation and the profession's
 self-regulation have affected the auditor's responsibilities related to
 (1) stewardship verifications (i.e., verification of management's managing
 and control of the firm's financial affairs), and (2) the mandatory
 control of the auditee's tax obligations. Both these requirements have
 raised fundamental questions about the statutory auditor's
 responsibilities beyond the verification of the annual accounts, and may
 reflect distinct conceptions of the role of a statutory auditor in Norway.
 This study shows that it is not evident that the Norwegian auditor's
 responsibility for stewardship verifications has resulted in professional
 practice significantly different from common international practice.
 However, the Norwegian statutory auditor's responsibility for control of
 the auditee's tax obligations goes beyond the requirements in other
 countries. 
Journal: European Accounting Review 
Pages: 709-722 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336277 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336277 
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:709-722




Template-Type: ReDIF-Article 1.0
Author-Name: Pat Sucher 
Author-X-Name-First: Pat 
Author-X-Name-Last: Sucher 
Author-Name: Ivan Zelenka 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Zelenka 
Title: The development of the role of the audit in the Czech Republic 
Abstract:
  As the economies in Central Europe have commenced their transformation
 from centrally planned to market-led economies, each country has
 implemented a new legal framework for accounting and auditing. This
 provides a unique opportunity to research the implementation of aspects of
 accounting and auditing well known to Western market economies into
 different economic contexts. In particular, it provides an opportunity to
 revisit the role of the independent audit. This paper contributes to the
 research on the developing of auditing in Central Europe by analysing the
 role of the audit in the Czech Republic. It covers aspects of both
 regulation and practice and, in order to gain more understanding of how
 the audit role is developing in the Czech Republic, focuses on three
 areas: influences on the Czech audit legislation; the position of the
 audit report and perceptions of the objectives of the audit in the Czech
 Republic. After a brief review of the published literature on accounting
 and audit in the Czech Republic, the paper studies some of the country's
 recent economic and legislative developments in relation to auditing.
 These developments are put into the context of auditing before and after
 the 'Velvet revolution' of 1989. The paper then concentrates on the
 influences on the development of Czech audit legislation by comparing
 aspects of the Czech audit legislation with the German and UK equivalents.
 This comparison highlights some anomalies in the Czech legislation. The
 Czech audit legislation is then put into the local context based on a
 review of the contents of the audit report and its publication with
 interviews among a selection of users and preparers about how the audit is
 perceived. 
Journal: European Accounting Review 
Pages: 723-751 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336286 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336286 
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:723-751




Template-Type: ReDIF-Article 1.0
Author-Name: Marta Macias 
Author-X-Name-First: Marta 
Author-X-Name-Last: Macias 
Author-Name: Carlos Larrinaga 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Larrinaga 
Title: Fifth Workshop on Management Accounting and Control 
Abstract:
Journal: European Accounting Review 
Pages: 764-766 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336312 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336312 
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Template-Type: ReDIF-Article 1.0
Author-Name: Amanda Stephens 
Author-X-Name-First: Amanda 
Author-X-Name-Last: Stephens 
Author-Name: Helen Smith 
Author-X-Name-First: Helen 
Author-X-Name-Last: Smith 
Title: Warnings from 'the audit society': an opportunity not to be missed 
Abstract:
Journal: European Accounting Review 
Pages: 767-771 
Issue: 4 
Volume: 7 
Year: 1998 
X-DOI: 10.1080/096381898336321 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381898336321 
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Handle: RePEc:taf:euract:v:7:y:1998:i:4:p:767-771




Template-Type: ReDIF-Article 1.0
Author-Name: Carol Adams 
Author-X-Name-First: Carol 
Author-X-Name-Last: Adams 
Author-Name: Pauline Weetman 
Author-X-Name-First: Pauline 
Author-X-Name-Last: Weetman 
Author-Name: Edward Jones 
Author-X-Name-First: Edward 
Author-X-Name-Last: Jones 
Author-Name: Sidney Gray 
Author-X-Name-First: Sidney 
Author-X-Name-Last: Gray 
Title: Reducing the burden of US GAAP reconciliations by foreign companies listed in the United States: the key question of materiality 
Abstract:
  The European Commission has long been concerned over the extensive
 disclosures required by the Securities and Exchange Commission (SEC) in
 form 20-F. As the IASC moves towards completing its core standards
 programme to the satisfaction of IOSCO, the debate has centred around the
 likelihood of its acceptance by the SEC. This paper examines aspects of
 the reconciliations to US GAAP, provided by UK registrant companies, and
 proposes an approach of selective disclosure focusing on material items.
 We find that goodwill was the dominant adjustment prior to the
 implementation of FRS 10. When goodwill is excluded there were on average
 4.9 adjustments to net income and 5.8 adjustments to shareholders' equity
 per company reporting. Defining materiality as 10% or more of the reported
 US net income or shareholders' equity and disregarding immaterial items
 reduces these to an average of only 1.6 adjustments to the income
 statement and 0.6 adjustments to shareholders' equity per company. We find
 that the majority of adjusting items in the reconciliations are not
 material, adding weight to arguments opposed to the reconciliation
 requirements. We consider the possibility of a more focused disclosure
 requirement for foreign companies reporting to the SEC. 
Journal: European Accounting Review 
Pages: 1-22 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336122 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336122 
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Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Ewert 
Author-X-Name-First: Ralf 
Author-X-Name-Last: Ewert 
Author-Name: Christian Ernst 
Author-X-Name-First: Christian 
Author-X-Name-Last: Ernst 
Title: Target costing, co-ordination and strategic cost management 
Abstract:
  During the last years issues of strategic management accounting have
 received widespread attention in the accounting literature. Yet the
 conceptual foundation of most proposals is not clear. This paper presents
 a theoretical analysis of one of the most prominent approaches of
 strategic management accounting, i.e. target costing. We analyse three
 distinct characteristics of this strategic management accounting tool,
 namely its market orientation, its use as co-ordination instrument and its
 interaction with other factors affecting long-term cost structure in the
 form of strategic learning. The analysis shows that the more 'strategic'
 dimensions are added to the problem of cost management, the less valid are
 'strategic' management accounting proposals in terms of the usual way
 target costing is employed. 
Journal: European Accounting Review 
Pages: 23-49 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336131 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336131 
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Handle: RePEc:taf:euract:v:8:y:1999:i:1:p:23-49




Template-Type: ReDIF-Article 1.0
Author-Name: David Hatherly 
Author-X-Name-First: David 
Author-X-Name-Last: Hatherly 
Title: The future of auditing: the debate in the UK 
Abstract:
  Upon its creation in 1991, the UK's Auditing Practices Board (APB)
 debated the future of financial statement auditing, leading to a
 succession of APB publications in 1992, 1994 and 1996. A significant theme
 of these publications focused on the need for an audit environment in
 which auditing can be sustained as a professional judgement, in the face
 of pressures tending to subvert the audit into a process of compliance
 with rules. This paper articulates an 'accountability model' of the audit,
 developed as a consequence of APB's debate and underpinning many of the
 policy implications of the APB papers. This model is articulated in terms
 of the concepts of lateral and hierarchical accountability. The fear that
 judgement would be displaced from auditing has for the moment proved
 groundless given the recent introduction of new judgemental audit
 methodologies based on an assessment of business risks. Nevertheless, it
 is argued that the underlying accountability model and its implied
 imbalance between the hierarchical and lateral accountabilities of the
 audit engagement partner, still stands. 
Journal: European Accounting Review 
Pages: 51-65 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336140 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336140 
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Handle: RePEc:taf:euract:v:8:y:1999:i:1:p:51-65




Template-Type: ReDIF-Article 1.0
Author-Name: Teija Laitinen 
Author-X-Name-First: Teija 
Author-X-Name-Last: Laitinen 
Author-Name: Maria Kankaanpaa 
Author-X-Name-First: Maria 
Author-X-Name-Last: Kankaanpaa 
Title: Comparative analysis of failure prediction methods: the Finnish case 
Abstract:
  This paper first briefly discusses six alternative methods that have been
 applied to financial failure prediction: linear discriminant analysis,
 logit analysis, recursive partitioning, survival analysis, neural networks
 and the human information processing approach. The main objective was to
 study empirically whether the results stemming from the use of alternative
 methods differ from each other. This was conducted using the Finnish data
 one, two and three years prior to failure in empirical analysis. The
 results indicated that there was a statistically significant difference in
 prediction accuracy only between logistic analysis and survival analysis
 one year prior to failure. Two and three years prior to failure
 statistically significant differences were not found. The results
 indicate, with the three variables employed in this study, that no
 superior method has been found. Even one of the latest applications,
 neural networks, is in its present form only as effective as discriminant
 analysis was as early as thirty years ago. 
Journal: European Accounting Review 
Pages: 67-92 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336159 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336159 
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Handle: RePEc:taf:euract:v:8:y:1999:i:1:p:67-92




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Lainez 
Author-X-Name-First: Jose 
Author-X-Name-Last: Lainez 
Author-Name: Jose Jarne 
Author-X-Name-First: Jose 
Author-X-Name-Last: Jarne 
Author-Name: Susana Callao 
Author-X-Name-First: Susana 
Author-X-Name-Last: Callao 
Title: The Spanish accounting system and international accounting harmonization 
Abstract:
  During the last decade, Spanish accounting regulations have undergone
 significant changes as a result of the harmonization process that has been
 taking place at the international level. These changes fundamentally
 reflect the adaptation of the regulations to the EU directives, although
 the statements of the International Accounting Standards Committee (IASC)
 have also played a role. At a time when the possibility of a further
 reform to the Spanish regulations is the subject of debate, in order for
 these to be brought closer to the international criteria, this paper has
 the following objectives: to show the accounting alternatives that the
 current Spanish regulations offer to companies; to determine which of
 these alternatives are adopted in the majority by these companies, thus
 evaluating the level of internal homogeneity of the accounting practice;
 and, finally, to evaluate the degree of consensus of these practices with
 the accounting criteria of the IASC. The results show a lack of
 homogeneity at the national level with respect to specific accounting
 areas. Similarly, we find that the degree of consensus with the IASC
 criteria is no more than moderate if consideration is given only to the
 benchmark criteria, whilst it increases markedly if the allowed treatments
 are also considered. 
Journal: European Accounting Review 
Pages: 93-113 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336168 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336168 
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Handle: RePEc:taf:euract:v:8:y:1999:i:1:p:93-113




Template-Type: ReDIF-Article 1.0
Author-Name: Marek Schroeder 
Author-X-Name-First: Marek 
Author-X-Name-Last: Schroeder 
Title: A description of the contents of the long-form statutory audit reports of a sample of Polish listed companies for 1996 
Abstract:
  Polish legislation, in common with that in Germany and Austria, requires
 statutory auditors to prepare a long-form audit report but, uniquely in
 Europe, requires the report to be made more publicly available. The paper
 analyses the contents of 41 long-form audit reports on Polish
 non-financial listed companies for the year 1996. Compliance with the
 reporting requirements of legislation and auditing standards was found to
 be uneven. Differences in approach as between multinational and domestic
 audit firms were observed. Both of these results contrast with the
 conclusions of previous research on the content of Polish short-form
 reports, which found compliance to be high and differences between the
 approaches of multinational and domestic audit firms minimal.
 Nevertheless, the preparation and publication of long-form audit reports
 may increase transparency in transition economies characterized by
 systemic instability and may inform the current debate on the future
 development of auditing in the European Union. 
Journal: European Accounting Review 
Pages: 115-137 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336177 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336177 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:1:p:115-137




Template-Type: ReDIF-Article 1.0
Author-Name: U. Tornqvist 
Author-X-Name-First: U. 
Author-X-Name-Last: Tornqvist 
Title: An empirical study of accountability: delegation of responsibility and external disclosure in some Swedish companies 
Abstract:
  There are increasing requirements for disclosure of future-oriented
 information, segmental reporting and information about financial risk
 management, i.e. information traditionally used internally in the
 management control process. The increasing influence of transnational
 corporations has contributed to pressure for wider accountability. An
 empirical study encompassing six transnational companies has been made.
 The research results suggest that information disclosed about goals for
 the group and outcome values for segments does not necessarily reflect how
 the company is managed. For industrial operations there appears to be a
 clear relationship between organization structure and goal parameters.
 None of these goal parameters and only certain outcome values for these
 parameters are disclosed which makes it difficult for external users to
 find out how the industrial operations are managed. For the financial
 activities there is no goal parameter used which is related to the goal
 for the group. Choice of organization structure and risk policy seems to
 influence disclosure. A lack of clear definitions and guidelines for
 futureoriented information makes difficult the comparison of what is
 disclosed with what it is required to disclose. The research results
 suggest the benefit of dealing with both management accounting and
 financial accounting when studying accountability. 
Journal: European Accounting Review 
Pages: 139-156 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336186 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336186 
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Handle: RePEc:taf:euract:v:8:y:1999:i:1:p:139-156




Template-Type: ReDIF-Article 1.0
Author-Name: S. David Young 
Author-X-Name-First: S. David 
Author-X-Name-Last: Young 
Title: From plan to market: financial statements and economic transition in the East German enterprise 
Abstract:
  This article examines the changing role of financial accounting in the
 former East Germany as that country underwent the transition from a
 centrally planned to a market-driven economy. The German government's
 insistence on a sales model of privatization in preference to some form of
 mass privatization, combined with legal requirements to make up equity
 shortfalls in eastern German enterprises, resulted in a highly centralized
 and interventionist approach to accounting change. The article reviews and
 analyses the historical, technical, economic and political aspects of this
 change process. 
Journal: European Accounting Review 
Pages: 157-189 
Issue: 1 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336195 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336195 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:1:p:157-189




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Barker 
Author-X-Name-First: Richard 
Author-X-Name-Last: Barker 
Title: The role of dividends in valuation models used by analysts and fund managers 
Abstract:
  The value of a share is given by the dividend discount model as a simple
 function of future dividends; but the actual determination of the share
 price is rarely based upon the direct estimation of these future
 dividends. A ranking of the valuation models used by analysts and fund
 managers shows a preference for 'unsophisticated' valuation using, for
 example, the dividend yield rather than the dividend discount model. This
 finding is shown to depend upon the practical difficulty of using
 currently-available information to forecast future cash flows. This
 difficulty limits the quantitative basis of valuations to short forecast
 horizons, while the subjective, qualitative estimation of terminal value
 assumes great importance. Crucially, both analysts and fund managers use
 their own assessment of management quality to underpin the estimation of
 terminal value, on the basis that superior quality causes outperformance
 and that, whereas management quality can be assessed now, future
 performance itself is unobservable. Linked with this and with information
 asymmetry, valuation is a dynamic, company-specific process, focused on
 personal communication with management and embodying ongoing signalling
 and implicit contracting, using both dividends and other variables. This
 method of valuation causes formal valuation models such as the dividend
 yield to play only a limited role. They offer a benchmark of relative
 price differences, which serves as a basis from which to conduct
 subjective, company-specific analysis and to make investment decisions;
 but valuation models are not used exclusively, in themselves, to value
 shares. 
Journal: European Accounting Review 
Pages: 195-218 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335998 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335998 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:195-218




Template-Type: ReDIF-Article 1.0
Author-Name: Liisa Kurunmaki 
Author-X-Name-First: Liisa 
Author-X-Name-Last: Kurunmaki 
Title: Making an accounting entity: the case of the hospital in Finnish health care reforms 
Abstract:
  This paper is about the making of an accounting entity. The entity is the
 hospital, and the context is the Finnish health care reforms of the early
 1990s. These reforms, which sought to make private sector accounting
 principles central to this core field of the New Public Sector, had
 significant implications for the varied actors involved in the financing,
 production and consumption of health care. For the defining of the
 hospital as an accounting entity entailed a narrowing of the basis of
 accountability, and to this extent it came into conflict with the broader
 societal conceptions of accountability held by medical professionals. This
 narrowing of the basis of accountability, and the attempt to ensure that
 decisions concerning resource allocation and equipment purchase are
 similarly focused, is examined in this paper along with the reaction of
 medical professionals. Accounting is possible only when there is an area
 of economic interest that can be defined. Indeed, this is the essence of
 the entity concept in accounting. When a definable area of economic
 interest exists, it is possible to identify, accumulate, and report
 financial information about that entity as distinct from all other
 information. Without such an entity, accounting is impossible. (American
 Accounting Association, 1965) 
Journal: European Accounting Review 
Pages: 219-237 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336005 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:219-237




Template-Type: ReDIF-Article 1.0
Author-Name: Clive Lennox 
Author-X-Name-First: Clive 
Author-X-Name-Last: Lennox 
Title: Non-audit fees, disclosure and audit quality 
Abstract:
  This paper investigates the effect of non-audit services on audit
 quality. Following the announcement of the requirement to disclose
 non-audit fees, approximately one-third of UK quoted companies disclosed
 before the requirement became effective. Whilst distressed companies were
 more likely to disclose early, auditor size, directors' shareholdings and
 non-audit fees were not significantly correlated with early disclosure.
 These results cast doubt on the view that voluntary disclosure of
 non-audit fees was used to signal audit quality. The evidence also
 indicates a positive weakly significant relationship between disclosed
 non-audit fees and audit qualifications. This suggests that when non-audit
 fees are disclosed, the provision of non-audit services does not reduce
 audit quality. 
Journal: European Accounting Review 
Pages: 239-252 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336014 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:239-252




Template-Type: ReDIF-Article 1.0
Author-Name: Noel O'Sullivan 
Author-X-Name-First: Noel 
Author-X-Name-Last: O'Sullivan 
Title: Board characteristics and audit pricing post-Cadbury: a research note 
Abstract:
  This paper examines the impact of board and audit committee
 characteristics on the audit fee paid by large UK companies in the
 post-Cadbury period. Our results suggest that audit fees remain
 predominantly influenced by the size, complexity and risk of the audit
 client. Additionally, we find that companies operating in regulated
 industries pay lower audit fees. Despite the increased emphasis on
 internal governance mechanisms, we find no evidence that board and audit
 committee characteristics influence auditors' pricing decisions. The
 absence of a relationship suggests that any fee reductions expected due to
 improved board monitoring may be counterbalanced by the increased audit
 effort and assurances desired by non-executive directors. 
Journal: European Accounting Review 
Pages: 253-263 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336023 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:253-263




Template-Type: ReDIF-Article 1.0
Author-Name: Eric John Slof 
Author-X-Name-First: Eric John 
Author-X-Name-Last: Slof 
Title: Transfer prices and incentive contracts in vertically-integrated divisionalized companies 
Abstract:
  This paper studies a divisionalized firm with sequential transfers in
 which central management wants to motivate two division managers who
 receive predecision information. Central management can only contract on
 the observables price, cost and quantity. Starting with the optimal
 compensation schemes as a benchmark, the paper considers the question
 whether using transfer prices to substitute for price and cost,
 respectively, can replicate the optimal solution or not. This is to say,
 whether using an aggregate measure comes at a loss. The results are
 dependent on the design constraints (i) single or 'dual' transfer prices
 and (ii) simultaneous design of the reward functions or exogenously given
 reward functions. Basically, only in the case that central management is
 restricted to given reward functions, and wants to use the same single
 transfer price for both divisions, there is a loss relative to the
 benchmark solution. In the other cases, generally, there is enough
 latitude to design the available functions to mimic the benchmark. The
 paper goes on to discuss special cases. First, it finds conditions when
 purely cost-based transfer prices are optimal, and second, it derives
 explicit solutions for given linear compensation schemes over divisional
 book profits. 
Journal: European Accounting Review 
Pages: 265-286 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336032 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336032 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:265-286




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Lymer 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Lymer 
Title: Internet and the future of reporting in Europe 
Abstract:
  Pressure is being applied on companies right across Europe to distribute
 more corporate information, in more usable ways, with fewer time delays.
 The delivery of corporate information via the Internet is being seen by
 many companies as a way of addressing at least some of these demands. This
 paper introduces the subject of electronic corporate reporting and
 provides a detailed literature review of both academic and professional
 material produced on this subject so far. It also outlines a wide range of
 issues that need to be considered by companies, accounting regulators and
 standard setters in determining how this form of reporting should develop
 in the future. This debate is specifically set in a European context but
 has global applications. 
Journal: European Accounting Review 
Pages: 289-301 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336041 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336041 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:289-301




Template-Type: ReDIF-Article 1.0
Author-Name: A. A. Baldwin 
Author-X-Name-First: A. A. 
Author-X-Name-Last: Baldwin 
Author-Name: S. L. M. Williams 
Author-X-Name-First: S. L. M. 
Author-X-Name-Last: Williams 
Title: The future of intelligent Internet agents in European financial reporting 
Abstract:
  This paper explores the future of intelligent Internet agents in European
 financial reporting. Currently, intelligent agents are under development
 in the US for various financial reporting purposes. Clearly, the greater
 complexity of the European financial reporting environment presents an
 opportunity for development of intelligent agents to assist in
 cross-national financial reporting and analysis tasks. After reviewing the
 European accounting environment, intelligent Internet agents are defined
 and described. Potential applications and avenues for development are
 identified. The nature of European financial reporting calls for the
 development and use of intelligent agents to help decision-makers deal
 with the complexity of the financial environment. 
Journal: European Accounting Review 
Pages: 303-319 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336050 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336050 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:303-319




Template-Type: ReDIF-Article 1.0
Author-Name: B. M. Craven 
Author-X-Name-First: B. M. 
Author-X-Name-Last: Craven 
Author-Name: C. L. Marston 
Author-X-Name-First: C. L. 
Author-X-Name-Last: Marston 
Title: Financial reporting on the Internet by leading UK companies 
Abstract:
  This paper examines the extent of financial information disclosure on the
 Internet by the largest companies in the UK in 1998. Companies were
 surveyed to establish whether they had a website and if so whether
 financial information was available. We also investigated whether that
 information was in summary form or whether the full annual report was
 available. This study finds a statistically significant positive
 relationship between the size of a company and the use and extent of
 disclosure on the Internet. There was no significant association between
 industry type and disclosure. 
Journal: European Accounting Review 
Pages: 321-333 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336069 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336069 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:321-333




Template-Type: ReDIF-Article 1.0
Author-Name: Roger Debreceny 
Author-X-Name-First: Roger 
Author-X-Name-Last: Debreceny 
Author-Name: Glen Gray 
Author-X-Name-First: Glen 
Author-X-Name-Last: Gray 
Title: Financial reporting on the Internet and the external audit 
Abstract:
  Electronic dissemination of financial reports on the World Wide Web is
 becoming ubiquitous for larger corporations in developed market economies.
 This form of reporting presents many challenges for the financial
 statement audit. It is critical that the audit profession proactively
 addresses those challenges or they will be certainly addressed by
 government regulatory bodies and the courts of law. Most large listed
 public companies in France, Germany and the UK provide electronic versions
 of their printed annual reports on the web. A survey was made of fortyfive
 large listed UK, French and German corporations. A total of thirty-six of
 these corporations published their annual financial statements in HTML or
 Adobe Corporation's Acrobat. Ten of the seventeen corporations reporting
 in HTML included the auditors' report on their website. None of these
 reports linked back to the auditors' own site. A number of issues arise
 when corporations provide their financial statement audits on the web.
 These issues include the ease with which the auditor's report can be
 changed without any indication that a change was made; the meaning of the
 look and feel of the auditor's report in a rapidly changing web
 environment; and the implications of hyperlinks to and from web-based
 auditors' reports as well as the location and placement of the auditors'
 reports. 
Journal: European Accounting Review 
Pages: 335-350 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336078 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336078 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:335-350




Template-Type: ReDIF-Article 1.0
Author-Name: Dominic Deller 
Author-X-Name-First: Dominic 
Author-X-Name-Last: Deller 
Author-Name: Michael Stubenrath 
Author-X-Name-First: Michael 
Author-X-Name-Last: Stubenrath 
Author-Name: Christoph Weber 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Weber 
Title: A survey on the use of the Internet for investor relations in the USA, the UK and Germany 
Abstract:
  In this paper, the role of the Internet as an instrument for investor
 relations activities is addressed. The empirical study compares the
 Internet investor relations activities of US, UK and German corporations.
 A sample comprising the respective country's relevant stock market 100
 index (S&P, FTSE, DAX) is used. The authors find that, in the USA,
 investor relations via the Internet is more common and offers more
 features than in the other two countries. Although Internet technology
 offers a variety of possibilities to communicate with investors, the
 possibilities are only used partially in all three countries. 
Journal: European Accounting Review 
Pages: 351-364 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336087 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336087 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:351-364




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Gowthorpe 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Gowthorpe 
Author-Name: Oriol Amat 
Author-X-Name-First: Oriol 
Author-X-Name-Last: Amat 
Title: External reporting of accounting and financial information via the Internet in Spain 
Abstract:
  This paper describes the current (July 1998) level of usage of Internet
 communication technologies by Spanish quoted companies for communication
 of financial and other information to interested parties. First, in order
 to place the communication activity in context, the current extent of
 Internet access in Spain is described. Second, a study of the websites
 which have been established by Spanish companies quoted on the Madrid
 Stock Exchange is reported. Finally, the paper discusses the actual and
 potential development of the Internet as a means of establishing
 'corporate dialogue' (Spaul, 1997) with stakeholders. 
Journal: European Accounting Review 
Pages: 365-371 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336096 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336096 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:365-371




Template-Type: ReDIF-Article 1.0
Author-Name: Pontus Hedlin 
Author-X-Name-First: Pontus 
Author-X-Name-Last: Hedlin 
Title: The Internet as a vehicle for investor relations: the Swedish case 
Abstract:
Journal: European Accounting Review 
Pages: 373-381 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336104 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336104 
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:373-381




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Pirchegger 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Pirchegger 
Author-Name: Alfred Wagenhofer 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Wagenhofer 
Title: Financial information on the Internet: a survey of the homepages of Austrian companies 
Abstract:
  This paper analyses the use of the Internet to present financial
 information by Austrian companies listed in the most liquid market segment
 of the Vienna Stock Exchange. The study covers two points in time, end of
 December 1997 and 1998, respectively. The scores of the companies are
 analysed across firms and over time, and Austrian firms' scores are
 compared to those of the German DAX 30 companies. Hypotheses related to
 the costs and benefits of information are tested. The results show for
 Austria that larger companies and companies with higher percentage of free
 float score higher. 
Journal: European Accounting Review 
Pages: 383-395 
Issue: 2 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899336113 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899336113 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:2:p:383-395




Template-Type: ReDIF-Article 1.0
Author-Name: Maximilian Jung 
Author-X-Name-First: Maximilian 
Author-X-Name-Last: Jung 
Author-Name: Christian Riegler 
Author-X-Name-First: Christian 
Author-X-Name-Last: Riegler 
Title: Accounting information, salesforce compensation and acquisition of new customers 
Abstract:
  The need for the management accounting system (MAS) to support marketing
 decisions has been identified in literature and practice. Accordingly,
 several improvements have been suggested with the main intention of
 providing more detailed information on marketing segments. Yet, even with
 respect to these improved systems it has to be acknowledged that the
 quality of the information provided will not be identical for all
 marketing segments: it can be assumed that it will be more precise for
 existing segments, which are already served by the firm, than for new
 ones, with which the firm has comparatively little experience. Further, it
 has to be considered that the MAS will seldom be the only source of useful
 information, as the example of the good salesforce having gained a 'deep
 understanding' of the market while doing his job shows. A problem arises
 if the acquisition of this additional information is (personally) costly
 and unobservable and therefore has to be motivated by incentive
 compensation schemes. This paper emphasizes that standard compensation
 contracts, as recommended by literature and practice, may fail to induce
 goal-congruent behaviour. It is shown that ranking commission rates
 according to the profitabilities reported by the MAS may be dysfunctional
 and that a non-intuitive rank order may be necessary to motivate the
 salesforce to become better informed and to use this knowledge
 appropriately. 
Journal: European Accounting Review 
Pages: 421-441 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335862 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335862 
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:421-441




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Bougen 
Author-X-Name-First: Philip 
Author-X-Name-Last: Bougen 
Author-Name: Joni Young 
Author-X-Name-First: Joni 
Author-X-Name-Last: Young 
Author-Name: Edward Cahill 
Author-X-Name-First: Edward 
Author-X-Name-Last: Cahill 
Title: Accountants and the everyday: or what the papers said about the Irish accountant and tax evasion 
Abstract:
  As academics we write in scholarly and professional journals (what we
 hope are) reasoned analyses of the actualities and potentialities of
 accounting practices. We read the similarly crafted endeavours of our
 colleagues, published in the same medium. There is a considerable
 temptation to forget that most people neither read this literature nor do
 they attend academic conferences, much less are they privy to discussions
 in the council chambers of the profession. For many people their
 understanding of who accountants are; of what they do; and of what they
 should do is much more likely to be shaped and indeed modified by more
 common means and through more informal interaction. Our particular
 interest is in the popular press as one such conduit for the everyday
 articulation and dissemination of representations of the roles and
 responsibilities of accountants. Our purpose is to suggest how and why
 everyday perceptions of the accountant and their connections to society
 might proceed along very different lines of logic from our own. 
Journal: European Accounting Review 
Pages: 443-461 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335871 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335871 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:443-461




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Author-Name: Isabel Gutierrez 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Gutierrez 
Author-Name: Macario Camara 
Author-X-Name-First: Macario 
Author-X-Name-Last: Camara 
Title: A profile of European accounting research: evidence from leading research journals 
Abstract:
  This paper attempts both to advance understanding about the research
 profile of accounting in Europe and to evaluate the role of The European
 Accounting Review in the dissemination of Europe-based accounting
 research. Empirical evidence supporting this investigation was gathered
 from all the papers published in thirteen top accounting journals during
 the period 1992 to 1997. Our results show that (i) a vast majority of
 European contributions to well-regarded journals are authored by scholars
 affiliated to British higher education organizations. Therefore, the
 overwhelming dominance of British accounting academics over Europe-based
 accounting research posits considerable doubts on the extent to which it
 is correct to form the notion of European accounting research. Our results
 suggest that such a notion is strongly shaped by one constituency of the
 European setting, that is, by researchers affiliated to British higher
 education institutions. (ii) The European Accounting Review has played a
 significant role in the diffusion of Europe-based accounting research. The
 journal constitutes the sole venue providing international visibility to
 scholars of eleven continental European countries. Moreover, The European
 Accounting Review has published a significant proportion of contributions
 from scholars of the other fifteen European countries. (iii) There exists
 limited mobility of non-English written accounting research across
 European countries. Lastly, the paper posits some suggestions for further
 work in this area. 
Journal: European Accounting Review 
Pages: 463-480 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335880 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335880 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:463-480




Template-Type: ReDIF-Article 1.0
Author-Name: Aasmund Eilifsen 
Author-X-Name-First: Aasmund 
Author-X-Name-Last: Eilifsen 
Author-Name: Kjell Henry Knivsfla 
Author-X-Name-First: Kjell Henry 
Author-X-Name-Last: Knivsfla 
Author-Name: Frode Saettem 
Author-X-Name-First: Frode 
Author-X-Name-Last: Saettem 
Title: Earnings manipulation: cost of capital versus tax 
Abstract:
  We show that if taxable income were linked to accounting income, there
 will exist an automatic safeguard against manipulation of earnings within
 the analysed framework. Separating taxable income from accounting income
 will remove this self-controlled mechanism, and accordingly create a need
 for separate countermeasures to prevent earnings manipulation. 
Journal: European Accounting Review 
Pages: 481-491 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335899 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335899 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:481-491




Template-Type: ReDIF-Article 1.0
Author-Name: Niclas Hellman 
Author-X-Name-First: Niclas 
Author-X-Name-Last: Hellman 
Title: Earnings manipulation: cost of capital versus tax. A commentary 
Abstract:
  The paper by Eilifsen, Knivsfla and Saettem, in this issue of the
 journal, provides some interesting research results in the field of
 accounting and taxation. Contrary to most European research in this area,
 Eilifsen, Knivsfl&#xe5; and Saettem apply a theoretical, deductive,
 model-based approach in the positive accounting tradition, and reach the
 somewhat provocative conclusion that linking taxable income to accounting
 income reduces managers' incentives to manipulate (overstate) earnings.
 Their theoretical results, supporting a view of the link between taxable
 income and accounting income as an automatic safeguard against
 overstatements of earnings, is a meritorious contribution to the current
 debate. For example, their results should be of interest for legislators
 and other authorities who consider a change to less dependence between
 accounting and taxation. However, from my perspective, the paper by
 Eilifsen, Knivsfl&#xe5; and Saettem also gives rise to some criticism
 related to (i) the use of a model-based approach, and (ii) the
 applicability of the earnings manipulation approach. 
Journal: European Accounting Review 
Pages: 493-497 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335907 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335907 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:493-497




Template-Type: ReDIF-Article 1.0
Author-Name: Pat Sucher 
Author-X-Name-First: Pat 
Author-X-Name-Last: Sucher 
Author-Name: Peter Moizer 
Author-X-Name-First: Peter 
Author-X-Name-Last: Moizer 
Author-Name: Marcela Zarova 
Author-X-Name-First: Marcela 
Author-X-Name-Last: Zarova 
Title: The images of the Big Six audit firms in the Czech Republic 
Abstract:
  In recent years, there has been a large growth in audit markets around
 the world as many formerly planned economies have moved to become market
 economies (transitional economies) and the Big Six (now the Big Five)
 accountancy firms have established a large presence in many of these
 economies. However, there has been little research on how these Big Six
 firms are perceived by some of their users. Following on from Moizer's
 research on the image of the Big Six firms in the UK, this article reports
 the results of a similar survey in the Czech Republic. The results of the
 survey indicate that there are substantial differences in the image of the
 Big Six audit firms compared to local Czech audit firms. The results also
 indicate that there are differences in the perceived images of each of the
 Big Six firms which partly follow from the way in which each firm has
 established itself in the Czech Republic. A comparison of these results
 with similar research in the UK and Spain indicates that each of the Big
 Six firms has a different image in each country. 
Journal: European Accounting Review 
Pages: 499-521 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:499-521




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Zeff 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Zeff 
Author-Name: Willem Buijink 
Author-X-Name-First: Willem 
Author-X-Name-Last: Buijink 
Author-Name: Kees Camfferman 
Author-X-Name-First: Kees 
Author-X-Name-Last: Camfferman 
Title: 'True and fair' in the Netherlands: inzicht or getrouw beeld ? 
Abstract:
  In the Netherlands, the standard form of the opinion paragraph of the
 auditor's report refers to the financial statements giving a getrouw
 beeld, a phrase which in its literal meaning and material content closely
 resembles the British 'true and fair view'. However, in Dutch reporting
 law, the central overriding criterion is worded differently. According to
 the law, the financial statements are to give an 'insight' into financial
 position and results. The co-existence of these two phrases, which
 pre-dates the Fourth Directive, is an interesting departure from practice
 in other European countries. In this paper, we present an historical
 analysis of this phenomenon. We argue that it is related to a number of
 central concerns of the Dutch audit profession, in particular its desire
 to stay abreast of international developments and its attempts to define a
 proper balance between auditor responsibility and legal requirements. 
Journal: European Accounting Review 
Pages: 523-548 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335925 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335925 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:523-548




Template-Type: ReDIF-Article 1.0
Author-Name: H. P. Moller 
Author-X-Name-First: H. P. 
Author-X-Name-Last: Moller 
Title: Note on Booth et al., 'Earnings and stock returns: evidence from Germany' 
Abstract:
  In an article published in this journal, Booth et al. (BBL) reach the
 conclusion that 'DVFA earnings provide information in addition to that
 provided by earnings calculated under the auspices of German GAAP' (BBL,
 p.599). Their 'results suggest that the effort spent to develop the method
 by which DVFA earnings are calculated has been well spent, since it
 enables market participants to price German stocks more fairly' (BBL,
 p.600). Although BBL do not distinguish in their model explicitly between
 reported earnings and DVFA earnings, the reader could get the impression
 that earnings can explain a great deal of the return variance and that
 so-called DVFA earnings (in contrast to reported earnings) play the most
 informative role in the explanation of German stock returns, both of them
 yielding an R2 of 0.506. In my opinion, there are some weaknesses in the
 argumentation, because (1) BBL de-emphasize the problems inherent in the
 subjectivity of the external determination of DVFA earnings; (2) BBL use a
 model for evaluating the value relevance of DVFA data that might conflict
 with the requirements of DVFA data for a valuation model; (3) the model
 finally used by BBL for the analysis of the value relevance of earnings
 numbers seems to be inadequate to describe reality; and (4) the process of
 data selection applied by BBL might also have caused the results. These
 arguments are explained in more detail in the remainder of this note. 
Journal: European Accounting Review 
Pages: 549-563 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335934 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335934 
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:549-563




Template-Type: ReDIF-Article 1.0
Author-Name: G. Geoffrey Booth 
Author-X-Name-First: G. Geoffrey 
Author-X-Name-Last: Booth 
Author-Name: J. Broussard 
Author-X-Name-First: J. 
Author-X-Name-Last: Broussard 
Author-Name: Otto Loistl 
Author-X-Name-First: Otto 
Author-X-Name-Last: Loistl 
Title: Reply to 'Note on "Earnings and stock returns: evidence from Germany" ' 
Abstract:
Journal: European Accounting Review 
Pages: 565-568 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335943 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335943 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:565-568




Template-Type: ReDIF-Article 1.0
Author-Name: Magdy Gamal Abdel-Kader 
Author-X-Name-First: Magdy Gamal 
Author-X-Name-Last: Abdel-Kader 
Title: Evaluating investment decisions in advanced manufacturing systems: a fuzzy set theory approach 
Abstract:
Journal: European Accounting Review 
Pages: 575-578 
Issue: 3 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335961 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335961 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:3:p:575-578




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jose Arcas Pellicer 
Author-X-Name-First: Maria Jose Arcas 
Author-X-Name-Last: Pellicer 
Author-Name: William Page Rees 
Author-X-Name-First: William Page 
Author-X-Name-Last: Rees 
Title: Regularities in the equity price response to earnings announcements in Spain 
Abstract:
  This paper studies the market's reaction to 660 earnings announcements
 made during the period 1991-95 in Spain. This period starts shortly after
 the completion of the revision of Spanish financial accounting practices
 to bring them into line with EC requirements. As expected, we find that
 the earnings disclosures are accompanied by abnormal volatility; however,
 we also discover positive abnormal returns and an upward shift in beta.
 Furthermore, both expected and unexpected changes in earnings have
 explanatory power for abnormal returns accompanying earnings announcements
 - although this result is largely driven by the smaller firms in the
 sample. This evidence is consistent with a change in the risk-return
 relationship and with unsophisticated investors neglecting value-relevant
 information. 
Journal: European Accounting Review 
Pages: 585-607 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335727 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335727 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:585-607




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner 
Author-X-Name-First: Begona 
Author-X-Name-Last: Giner 
Author-Name: Carmelo Reverte 
Author-X-Name-First: Carmelo 
Author-X-Name-Last: Reverte 
Title: The value relevance of earnings disaggregation provided in the Spanish profit and loss account 
Abstract:
  This study analyses the value relevance of the different components of
 the earnings figure that appear in the Spanish profit and loss account in
 order to determine the preferred level of disaggregation by investors. It
 is considered that the disaggregation may help to evaluate the earnings
 quality; that is, its predictive ability about future earnings. We use a
 valuation model based on Ohlson (1995), which models firm value as a
 function of book value of equity and earnings, adding the earnings
 components to determine whether they provide incremental price-relevant
 information beyond aggregate earnings. In addition, we allow the
 parameters to vary under some firm-specific circumstances. Our results
 support the usefulness of the earnings decomposition for valuation
 purposes, resting primarily on the disclosure of the corporation tax,
 particularly for either small companies, or with a high-risk profile or
 with low persistence of earnings. It seems that neither financial profit
 nor extraordinary earnings have additional information content over the
 bottom-line figure, which is consistent with the IASC's position on
 ordinary versus extraordinary items. 
Journal: European Accounting Review 
Pages: 609-629 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335736 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335736 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:609-629




Template-Type: ReDIF-Article 1.0
Author-Name: Juha Kinnunen 
Author-X-Name-First: Juha 
Author-X-Name-Last: Kinnunen 
Author-Name: Markku Koskela 
Author-X-Name-First: Markku 
Author-X-Name-Last: Koskela 
Title: Do cash flows reported by firms articulate with their income statements and balance sheets? Descriptive evidence from Finland 
Abstract:
  Using data for a sample of listed Finnish firms for 1995-97 this paper
 examines the coincidence of reported cash flows with corresponding cash
 flows estimated from income statement and balance sheet data. The issue is
 important in light of prior empirical studies that have analysed the
 properties and usefulness of cash flow information derived from income
 statements and balance sheets. In addition, financial analyses of firms
 not disclosing cash flow statements are implicitly based on the assumption
 that income statements and balance sheets are useful in producing unbiased
 and efficient estimates of cash flows. The overall findings indicate that
 reported cash flows do not always articulate with income statements and
 balance sheets and that non-articulation can be observed in cash flows
 from operating, investing and financing activities. The differences
 between reported and estimated cash flows prove to be mostly random. The
 findings on cash flows from operating activities indicate that differences
 attributable to operating income and working capital are partially
 countervailing. The findings also suggest that the differences do not
 materially affect firms' relative rankings based on financial ratios. A
 detailed analysis of an individual company indicates that differences
 arising from the allocation of short-term liabilities to operating and
 financing activities can be important. Overall, the results call for the
 refinement of the standards and guidelines of cash flow reporting
 practices. 
Journal: European Accounting Review 
Pages: 631-654 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335745 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335745 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:631-654




Template-Type: ReDIF-Article 1.0
Author-Name: Ulf Schiller 
Author-X-Name-First: Ulf 
Author-X-Name-Last: Schiller 
Title: Information management and transfer pricing 
Abstract:
  The paper considers information flow in a profit-centre organization.
 There is internal trade between two divisions. Headquarters records
 realized sales revenues and decides whether or not to pass this
 information on to the selling division. The selling division announces a
 cost-based transfer-price schedule that includes a mark-up on variable
 cost. From headquarters' perspective, the key issue is to influence the
 seller's manipulation of the mark-up. Knowledge about revenue enables the
 seller to squeeze intermediate profits out of the buyer and, moreover, to
 mitigate trade distortions. However, this comes at a cost. If the buying
 division receives a lower share of joint profit there arises a distortion
 of incentives for revenue-increasing efforts. Thus, the appropriate
 management of revenue information serves as a non-trivial tool to close
 gaps between the objectives of the whole firm and those of the divisions. 
Journal: European Accounting Review 
Pages: 655-673 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335754 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335754 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:655-673




Template-Type: ReDIF-Article 1.0
Author-Name: Anatoli Bourmistrov 
Author-X-Name-First: Anatoli 
Author-X-Name-Last: Bourmistrov 
Author-Name: Frode Mellemvik 
Author-X-Name-First: Frode 
Author-X-Name-Last: Mellemvik 
Title: Russian local governmental reforms: autonomy for accounting development? 
Abstract:
  This paper focuses on accounting in Russian local governments. When the
 perestroika period began in the middle of the 1980s, a process of
 restructuring and reforming the Russian society started. One intention of
 reforms was to change planned economy to a more market-oriented one. This
 process of transformation has affected local governments, especially when
 it concerns the relations between central and local governments. The
 process of restructuring the Russian society is described from a frame of
 reference consisting of the political ideas that are often connected to
 the Russian reforms, i.e. glasnost, democracy, autonomy and independence.
 These political ideas were formulated and argued for by politicians at the
 central level of the Federation. In this paper we discuss whether this
 ideology at the central level has influenced Russian local governmental
 accounting norms. Based on information from Leningrad oblast' (county) the
 paper also includes a description and discussion of changes in accounting
 in action. The paper ends with a discussion on changes in accounting in
 Russian local governments focusing on the question whether the central
 reform ideology has influenced local action and accounting. The discussion
 illustrates that given big changes in central ideology and local action,
 Russian local governmental accounting has not changed fast. Slow changes
 in the accounting norm system, a difficult local financial situation and
 difficulties in unlearning the old accounting procedures create barriers
 to utilize local autonomy in respect to accounting system development. 
Journal: European Accounting Review 
Pages: 675-700 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335763 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335763 
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:675-700




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Antonia Garcia Benau 
Author-X-Name-First: Maria Antonia Garcia 
Author-X-Name-Last: Benau 
Author-Name: Emiliano Ruiz Barbadillo 
Author-X-Name-First: Emiliano Ruiz 
Author-X-Name-Last: Barbadillo 
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Author-Name: Walid Al Husaini 
Author-X-Name-First: Walid Al 
Author-X-Name-Last: Husaini 
Title: Success in failure? Reflections on the changing Spanish audit environment 
Abstract:
  The 1990s in Spain have witnessed a significant shift in attitudes
 towards the role of auditing, with promises of more transparent reporting
 being replaced by talk of audit expectations gaps. This paper explores the
 changing atmosphere, both through an analysis of one of the most notorious
 scandals of recent times - involving the Banco Espanol de Credito
 ('Banesto') - and a more general review of the way the Spanish profession
 has responded to such downturns in public expectations of auditing. While
 at first sight, the profession appears to have become more defensive and
 the audit environment more competitive, the multinational accounting firms
 do appear to have strengthened their position in the Spanish audit market.
 Intriguingly, despite public expressions of concern with the quality and
 capabilities of auditing and the imposition of large fines on audit firms
 for inadequate audit work, proposed 'solutions' for improving audit
 quality include the establishment of a self-regulated audit regime and
 reductions in auditor liability. The Spanish experience allows for some
 timely reflections on the significance of an audit expectations gap and
 highlights the importance of viewing the audit function from an
 international perspective. 
Journal: European Accounting Review 
Pages: 701-730 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335772 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335772 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:701-730




Template-Type: ReDIF-Article 1.0
Author-Name: Simon James 
Author-X-Name-First: Simon 
Author-X-Name-Last: James 
Title: The future international tax environment and European tax harmonization: a personal view 
Abstract:
  The shape of the international tax system is being influenced by a number
 of important factors. This paper uses the basic management technique of
 STEP analysis to explore the changes that are under way and presents some
 of the social, technological, economic and political factors involved. It
 soon becomes clear that important trends include the increasing complexity
 of socio-economic systems which is likely to increase the complexity of
 the tax systems that have to accommodate them. Nevertheless the most
 dramatic changes will be associated with fundamental technological
 developments including the Internet and the World Wide Web. The
 development of international electronic commerce presents a considerable
 challenge to existing tax systems and there are accounting implications.
 For example, certain economic events may no longer continue to have easily
 identifiable physical locations. Such changes will substantially increase
 the need for governments to co-operate and to co-ordinate their tax
 systems. One way forward might be greater European tax harmonization. So
 far progress has been slow and uncertain but a clarification of the
 meaning of harmonization and the extent to which Member States wish to
 achieve it might make the path easier. The economic contribution with
 respect to fiscal federalism and the concept of subsidiarity would be able
 to assist in this process. 
Journal: European Accounting Review 
Pages: 731-747 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335781 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335781 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:731-747




Template-Type: ReDIF-Article 1.0
Author-Name: Margaret Lamb 
Author-X-Name-First: Margaret 
Author-X-Name-Last: Lamb 
Author-Name: Andrew Lymer 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Lymer 
Title: Taxation research in an accounting context: future prospects and interdisciplinary perspectives 
Abstract:
  Taxation practice represents a significant part of what may be classed as
 accounting practice. In contrast, taxation research represents a very
 small part of the accounting research field. This paper documents the
 scale and scope of tax research done in an accounting context in eighteen
 European and North American journals published in English. It explores
 several possible explanations for the 'under-representation' of tax
 research in the wider field of accounting research. The authors suggest
 several ways to encourage the growth of tax research in an accounting
 context. 
Journal: European Accounting Review 
Pages: 749-776 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335790 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335790 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:749-776




Template-Type: ReDIF-Article 1.0
Author-Name: L. Torres 
Author-X-Name-First: L. 
Author-X-Name-Last: Torres 
Author-Name: V. Pina 
Author-X-Name-First: V. 
Author-X-Name-Last: Pina 
Title: An empirical study on the performance of Supreme Audit Institutions in European Union privatizations 
Abstract:
  The large number of privatizations carried out, in recent years, in the
 European Union and the lack of generally accepted auditing standards and
 methodology to guide the activity of Supreme Audit Institutions (SAIs) in
 these processes, show the need to analyse the activity of the SAIs in the
 EU countries, in order to verify its coherence with the characteristics of
 privatization processes and whether the interests of citizens are being
 protected. This paper shows the results of an empirical study on the audit
 of privatization processes carried out by the Supreme Audit Institutions
 of the European Union countries. The analysis of their activities has
 shown certain deficiencies that reflect the difficulties in adapting their
 responsibilities in the new configuration of the public sector in the
 twenty-first century. 
Journal: European Accounting Review 
Pages: 777-795 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335808 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335808 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:777-795




Template-Type: ReDIF-Article 1.0
Author-Name: Johan Christiaens 
Author-X-Name-First: Johan 
Author-X-Name-Last: Christiaens 
Title: Financial accounting reform in Flemish municipalities: an empirical study of implementation and annual financial reports 
Abstract:
Journal: European Accounting Review 
Pages: 803-804 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335826 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335826 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:803-804




Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Aggestam 
Author-X-Name-First: Caroline 
Author-X-Name-Last: Aggestam 
Title: Towards a global accounting qualification? A Report from the 16th Session of the ISAR Group of the UN Palais de Nations, Geneva, 17-19 February 1999 
Abstract:
Journal: European Accounting Review 
Pages: 805-813 
Issue: 4 
Volume: 8 
Year: 1999 
X-DOI: 10.1080/096381899335835 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381899335835 
File-Format: text/html
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Handle: RePEc:taf:euract:v:8:y:1999:i:4:p:805-813




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Moneva 
Author-X-Name-First: Jose 
Author-X-Name-Last: Moneva 
Author-Name: Fernando Llena 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Llena 
Title: Environmental disclosures in the annual reports of large companies in Spain 
Abstract:
  The objective of this paper is to analyse the environmental reporting
 practices found in the annual reports published by companies operating in
 Spain, as well as to determine the evolution of these practices during the
 period 1992-4, on the basis of stakeholder theory. In order to carry out
 this analysis, we have examined the annual reports of seventy large
 companies operating in industries considered to be sensitive for the
 environment. The reporting practices have been grouped into a number of
 categories, as follows: type of environmental reporting provided; sections
 of the annual report devoted to environmental reporting; corporate
 environmental policies and projects; natural environment protection
 activities and achievements; and disclosure of environmental data in the
 annual accounts. Finally, we have considered whether the fact that a
 company is quoted on the stock market, or that a parent company is
 foreign-based, or that it belongs to a regulated sector, are
 differentiating factors with respect to environmental reporting behaviour.
 The main conclusions are as follows: The environmental reporting of these
 sample companies has a fundamentally narrative character, although there
 has been an increase in both quantitative and financial reporting, as well
 as in the number of companies that are reporting. The factors analysed do
 not allow us to detect significant differences, except for whether the
 parent company is foreign-based. As a consequence, there is no significant
 evidence that during the period analysed the environmental reporting
 behaviour of Spanish company management has tried to satisfy their
 stakeholders. 
Journal: European Accounting Review 
Pages: 7-29 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800407923 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800407923 
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Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Bartolomeo 
Author-X-Name-First: Matteo 
Author-X-Name-Last: Bartolomeo 
Author-Name: Martin Bennett 
Author-X-Name-First: Martin 
Author-X-Name-Last: Bennett 
Author-Name: Jan Jaap Bouma 
Author-X-Name-First: Jan Jaap 
Author-X-Name-Last: Bouma 
Author-Name: Peter Heydkamp 
Author-X-Name-First: Peter 
Author-X-Name-Last: Heydkamp 
Author-Name: Peter James 
Author-X-Name-First: Peter 
Author-X-Name-Last: James 
Author-Name: Teun Wolters 
Author-X-Name-First: Teun 
Author-X-Name-Last: Wolters 
Title: Environmental management accounting in Europe: current practice and future potential 
Abstract:
  This paper reports and analyses the results of a trans-European project
 to investigate the present and potential future links between the
 environmental management and management accounting functions of a company
 or business. A taxonomy of four broad but distinct approaches to
 environmental accounting is identified from the literature: external
 financial reporting; social accountability reporting; energy and materials
 accounting; and environmental management accounting. This project focuses
 on the latter the generation, analysis and use of financial and related
 non-financial information, in order to support management within a company
 or business, in integrating corporate environmental and economic policies
 and building sustainable business. The research involved interviews with
 accountants1 and environmental managers at eighty-four companies in
 Germany, Italy, The Netherlands and the UK, and detailed case studies of
 fifteen companies in those four countries. The paper summarizes the
 findings of the research and their implications for four core hypotheses,
 goes on to discuss international differences, and concludes by reviewing
 the implications of the results for likely future developments. 
Journal: European Accounting Review 
Pages: 31-52 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800407932 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800407932 
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Template-Type: ReDIF-Article 1.0
Author-Name: Carol Adams 
Author-X-Name-First: Carol 
Author-X-Name-Last: Adams 
Author-Name: Nongnooch Kuasirikun 
Author-X-Name-First: Nongnooch 
Author-X-Name-Last: Kuasirikun 
Title: A comparative analysis of corporate reporting on ethical issues by UK and German chemical and pharmaceutical companies 
Abstract:
  This paper reports on a study of reporting on ethical issues in the
 corporate annual reports of the largest UK and German chemical and
 pharmaceutical companies between 1985 and 1995. The study is both
 comparative and longitudinal in nature, examining in detail how ethical
 reporting practices developed differently in two Western nations. Despite
 the similarity in industry affiliations of the companies in the two
 samples, the study found substantial differences in the nature and
 patterns of reporting both across time and between the two countries
 studied. In particular, German companies reported more information and
 that reporting 'matured' to its current level at an earlier date. The
 paper explores some of the factors which might be thought to have caused
 this diversity in reporting between the two countries including: industry
 initiatives; extent of regulations demanding ethical responsibility; and
 other social and political pressures. 
Journal: European Accounting Review 
Pages: 53-79 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800407941 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800407941 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:1:p:53-79




Template-Type: ReDIF-Article 1.0
Author-Name: David Owen 
Author-X-Name-First: David 
Author-X-Name-Last: Owen 
Author-Name: Tracey Swift 
Author-X-Name-First: Tracey 
Author-X-Name-Last: Swift 
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Author-Name: Mary Bowerman 
Author-X-Name-First: Mary 
Author-X-Name-Last: Bowerman 
Title: The new social audits: accountability, managerial capture or the agenda of social champions? 
Abstract:
  Drawing upon a series of interviews conducted with leading practitioners
 and opinion formulators in the social, ethical and environmental audit
 arena, together with an extensive review of recent literature in the area,
 this paper offers a critical appraisal of current developments in the
 newly revitalized social audit movement. We particularly question whether
 in their enthusiasm for bringing social audit into the mainstream of
 current business thinking its advocates risk compromising the democratic
 ideals of the founding fathers of the movement. A particular concern
 raised is that without real change in corporate governance structures,
 social audit could become monopolized by consultants and/or corporate
 management and hence amount to little more than a skilfully controlled
 public relations exercise. 
Journal: European Accounting Review 
Pages: 81-98 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800407950 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800407950 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:1:p:81-98




Template-Type: ReDIF-Article 1.0
Author-Name: Michel Capron 
Author-X-Name-First: Michel 
Author-X-Name-Last: Capron 
Author-Name: Rob Gray 
Author-X-Name-First: Rob 
Author-X-Name-Last: Gray 
Title: Experimenting with assessing corporate social responsibility in France: an exploratory note on an initiative by social economy firms 
Abstract:
  This paper provides an early report on an experiment undertaken by a
 group of managers of 'social economy' firms. The experiment comprises an
 attempt to articulate and then apply a practicable approach to assessing
 corporate social responsibility within a framework derived from the theory
 of logiques d'action. The intention of the report is to illustrate a novel
 approach to the perennial problem of social responsibility in
 organizations and, thereby, to illustrate very briefly some of the
 inevitable practical problems that arise in turning theoretical criteria
 into operational processes. The experiment referred to here is continuing. 
Journal: European Accounting Review 
Pages: 99-109 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800407969 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800407969 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:1:p:99-109




Template-Type: ReDIF-Article 1.0
Author-Name: David Collison 
Author-X-Name-First: David 
Author-X-Name-Last: Collison 
Author-Name: Saskia Slomp 
Author-X-Name-First: Saskia 
Author-X-Name-Last: Slomp 
Title: Environmental accounting, auditing and reporting in Europe: the role of FEE 
Abstract:
  This paper reviews1 the activities of FEE (Federation des Experts
 Comptables Europeens) in the context of the developing environmental
 agenda. After a brief consideration of the constitution of FEE and of
 FEE's objectives as a whole, FEE's work in the area of environmental
 issues is discussed. This discussion covers the setting up and the
 operation of its Environmental Working Party (EWP), and a review of FEE's
 environmental work to date. While an overview of past and current work is
 given, some key areas of topical concern and activity are examined in more
 detail: in particular the scope for FEE to influence agendas at the
 European and wider international levels is considered. 
Journal: European Accounting Review 
Pages: 111-129 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800407978 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800407978 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:1:p:111-129




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Jaap Bouma 
Author-X-Name-First: Jan Jaap 
Author-X-Name-Last: Bouma 
Author-Name: Nancy Kamp-Roelands 
Author-X-Name-First: Nancy 
Author-X-Name-Last: Kamp-Roelands 
Title: Stakeholders expectations of an environmental management system: some exploratory research 
Abstract:
  This paper emanates from a larger research project (see Kamp-Roelands and
 Bouma, 1998) which has a practical focus. This research project seeks to
 start the process of exploring how environmental management information
 systems could be designed such that they better satisfy the needs of those
 using the information which emerges from these systems. In order to
 develop this work it was necessary to first generate some information
 about the internal and external stakeholder needs with respect to
 environmental information. This task has been tackled in the context of a
 single site of a multinational company. For this site a range of
 stakeholders were identified and questioned in some detail about, inter
 alia, their expectations of what an environmental management system
 (hereafter EMS) could achieve, their motives for using environmental
 information, how important they viewed various pieces of information to be
 and their views on quality of information issues. This paper presents the
 data gathered from this part of the larger project and seeks to determine
 if there are particular aspects which should be taken into account in EMS
 design and whether or not internal and external stakeholders are different
 from each other in their expectations about EMSs. Finally, some tentative
 concluding remarks are made on the implications of this work for the
 further investigation of the EMSs. 
Journal: European Accounting Review 
Pages: 131-144 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800407987 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800407987 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:1:p:131-144




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Boylan 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Boylan 
Author-Name: Peter Cannon-Brookes 
Author-X-Name-First: Peter 
Author-X-Name-Last: Cannon-Brookes 
Author-Name: Luca Zan 
Author-X-Name-First: Luca 
Author-X-Name-Last: Zan 
Title: EIASM workshop on 'Managing Cultural Organizations', London, 5-6 January 2001 
Abstract:
Journal: European Accounting Review 
Pages: 151-153 
Issue: 1 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/096381800408003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096381800408003 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:1:p:151-153




Template-Type: ReDIF-Article 1.0
Author-Name: M. N. Ahmed 
Author-X-Name-First: M. N. 
Author-X-Name-Last: Ahmed 
Author-Name: R. W. Scapens 
Author-X-Name-First: R. W. 
Author-X-Name-Last: Scapens 
Title: Cost allocation in Britain: towards an institutional analysis 
Abstract:
  This historical investigation attempts to gain insight into some of the
 socioeconomic factors surrounding the development and functioning of cost
 allocation practices in Britain. These factors are conceived in this study
 as isolated neither from the nature and structure of human behaviour, nor
 from the dynamic changing world in which individuals, firms and other
 constituent elements of society exist, act and interact. The institutional
 approach taken in this paper is contrasted with the transaction cost
 economics and labour process approaches. The historical analysis focuses
 on the emergence of uniform costing systems, government contracting in
 wartime, and the effects of collective trade agreements, and it reveals
 some of the wider economic, organizational, legal and political contexts
 in which cost allocations evolved and developed over the years. In
 addition, it demonstrates the complex and changing framework of norms,
 working rules and institutional arrangements within which cost allocation
 systems came to function in industrial and social organizations. The study
 concludes that although cost allocation systems have over the years
 remained simple, procedural and repetitive, their wider meanings and
 significance have served a variety of interests and needs in different
 times and in different socio-economic environments. 
Journal: European Accounting Review 
Pages: 159-204 
Issue: 2 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180050129864 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180050129864 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:2:p:159-204




Template-Type: ReDIF-Article 1.0
Author-Name: Benito Arrunada 
Author-X-Name-First: Benito 
Author-X-Name-Last: Arrunada 
Title: Audit quality: attributes, private safeguards and the role of regulation 
Abstract:
  This article examines the private mechanisms used to safeguard quality in
 auditing, with a view to defining rules capable of facilitating the
 performance of market forces. An outline is given of a general theory of
 private quality assurance in auditing, based on the use of quasi-rents to
 self-enforce quality dimensions. Particular attention is paid to the role
 of fee income diversification as the key ingredient of private incentives
 for audit quality. The role of public regulation is then situated in the
 context defined by the presence of these safeguard mechanisms. This helps
 in defining the content of rules and the function of regulatory bodies in
 facilitating and strengthening the protective operation of the market. By
 making sense of the interaction between regulation, quality attributes and
 private safeguards, the analysis helps to evaluate the relative merits of
 different regulatory options. 
Journal: European Accounting Review 
Pages: 205-224 
Issue: 2 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180050129873 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180050129873 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:2:p:205-224




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Kousenidis 
Author-X-Name-First: Dimitrios 
Author-X-Name-Last: Kousenidis 
Author-Name: Christos Negakis 
Author-X-Name-First: Christos 
Author-X-Name-Last: Negakis 
Author-Name: Iordanis Floropoulos 
Author-X-Name-First: Iordanis 
Author-X-Name-Last: Floropoulos 
Title: Size and book-to-market factors in the relationship between average stock returns and average book returns: some evidence from an emerging market 
Abstract:
  The present paper examines the association between average stock returns
 and average book returns and addresses the question as to whether there
 are common size and book-to-market factors in earnings and returns. The
 results of the empirical research, conducted in the Athens Stock Exchange,
 suggest that when the sample firms are grouped into size, book-to-market
 portfolios stock returns properly reflect differences in the evolution of
 accounting profitability. Moreover, it is found that the return on
 investment (ROI) measure contains size and book-to-market factors
 analogous to the mimic risk factors inherent in stock returns, in the
 sense that they capture information missed by ROI. 
Journal: European Accounting Review 
Pages: 225-243 
Issue: 2 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180050129882 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180050129882 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:2:p:225-243




Template-Type: ReDIF-Article 1.0
Author-Name: Florence Depoers 
Author-X-Name-First: Florence 
Author-X-Name-Last: Depoers 
Title: A cost benefit study of voluntary disclosure: some empirical evidence from French listed companies 
Abstract:
  The aim of this paper is to relate the extent of disclosure in the annual
 reports of French listed companies to some economic determinants. The
 sample includes the 1995 annual reports of 102 randomly selected
 industrial and commercial firms. The extent of disclosure is measured by
 an index based on financial and non-financial discretionary information.
 The model of hypothesis explaining voluntary disclosure is defined as the
 interplay of contradictory forces: inducements deriving principally from
 agency theory and limitations imposed by information costs. The results
 reveal that voluntary disclosure is significantly related to size, foreign
 activity and to a proxy for proprietary costs. 
Journal: European Accounting Review 
Pages: 245-263 
Issue: 2 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180050129891 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180050129891 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:2:p:245-263




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Pistoni 
Author-X-Name-First: Anna 
Author-X-Name-Last: Pistoni 
Author-Name: Laura Zoni 
Author-X-Name-First: Laura 
Author-X-Name-Last: Zoni 
Title: Comparative management accounting in Europe: an undergraduate education perspective 
Abstract:
  The article reports the results of a survey conducted in 86 undergraduate
 education institutions in 16 countries in Europe. The primary goals of the
 analysis are to provide information on management accounting courses in
 Europe and to investigate whether the most innovative topics in management
 accounting are taught. The survey targeted accounting professors across
 Europe, mainly members of the European Accounting Association. Data
 evidence similarities across countries inasmuch a very similar pool of
 topics is taught in different institutions in different countries.
 However, differences outweigh similarities when comparing the relative
 importance attributed to various topics within a course. 
Journal: European Accounting Review 
Pages: 285-319 
Issue: 2 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180050129918 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180050129918 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:2:p:285-319




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 337-337 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017078 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017078 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:337-337




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Hopwood 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Hopwood 
Title: In appreciation of Dieter Ordelheide 
Abstract:
Journal: European Accounting Review 
Pages: 339-340 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/713764868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:339-340




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Power 
Author-X-Name-First: Michael 
Author-X-Name-Last: Power 
Title: Obituary: Dieter Ordelheide (1939-2000) 
Abstract:
Journal: European Accounting Review 
Pages: 341-343 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017096 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017096 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:341-343




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Leuz 
Author-X-Name-First: Christian 
Author-X-Name-Last: Leuz 
Author-Name: Dieter Pfaff 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Pfaff 
Title: Tribute to Dieter Ordelheide 
Abstract:
Journal: European Accounting Review 
Pages: 345-347 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017104 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017104 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:345-347




Template-Type: ReDIF-Article 1.0
Author-Name: Leandro Canibano 
Author-X-Name-First: Leandro 
Author-X-Name-Last: Canibano 
Author-Name: Araceli Mora 
Author-X-Name-First: Araceli 
Author-X-Name-Last: Mora 
Title: Evaluating the statistical significance of de facto accounting harmonization: a study of European global players 
Abstract:
  Two different forces are involved in the international harmonization of
 accounting: institutional endeavours to harmonize accounting
 internationally by developing common accounting rules and reporting
 standards, and spontaneous efforts by 'global players' to adopt accounting
 methods that will improve communication with users in other countries.
 These two developments are proceeding side by side, generally reinforcing
 one another but occasionally moving independently. This paper is primarily
 concerned with the process of harmonization of financial accounting within
 the European Union. The hypothesis we want to test is that, in spite of
 the obstacles to the harmonization of regulations in the European Union,
 there has been greater conformity in recent years in the accounting
 practices of companies which operate on the international stage. If so,
 the implications for the harmonization strategies of the international
 bodies are important. In this study, we first carry out a critical
 analysis of previous research on accounting harmonization, summarizing the
 methods used in empirical studies of de facto harmonization and the
 results obtained. We note that the major deficiency in the index-based
 methods of measuring harmonization is that no test of significance has
 been included in prior research. In this paper, we propose a bootstrapping
 test of the C index as a way of measuring the significance of the change
 in its value. We consider a sample of eighty-five 'global players' from
 thirteen countries and we analyse their financial statements with regard
 to four accounting issues (deferred taxation, goodwill, leasing and
 foreign currency translation), providing estimates of the significance of
 de facto accounting harmonization for the periods from 1991-2 to 1996-7. 
Journal: European Accounting Review 
Pages: 349-369 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017113 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017113 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:349-369




Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Ewert 
Author-X-Name-First: Ralf 
Author-X-Name-Last: Ewert 
Author-Name: Eberhard Feess 
Author-X-Name-First: Eberhard 
Author-X-Name-Last: Feess 
Author-Name: Martin Nell 
Author-X-Name-First: Martin 
Author-X-Name-Last: Nell 
Title: Auditor liability rules under imperfect information and costly litigation: the welfare-increasing effect of liability insurance 
Abstract:
  This paper examines auditor liability rules under imperfect information,
 costly litigation and risk-averse auditors. A negligence rule fails in
 such a setting, because in equilibrium auditors will deviate with positive
 probability from any given standard. It is shown that strict liability
 outperforms negligence with respect to risk allocation and the probability
 that a desired level of care is met by the auditor if competitive
 liability insurance markets exist. Furthermore, our model explains the
 existence of insurance contracts containing obligations a type of contract
 often observed in liability insurance markets. 
Journal: European Accounting Review 
Pages: 371-385 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017122 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017122 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:371-385




Template-Type: ReDIF-Article 1.0
Author-Name: Denis Cormier 
Author-X-Name-First: Denis 
Author-X-Name-Last: Cormier 
Author-Name: Michel Magnan 
Author-X-Name-First: Michel 
Author-X-Name-Last: Magnan 
Author-Name: Bernard Morard 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Morard 
Title: The contractual and value relevance of reported earnings in a dividend-focused environment 
Abstract:
  This study investigates the relevance of reported earnings in the context
 of an institutional environment, i.e., Switzerland, in which investors
 focus on dividends. In conjunction with a dividend focus, the financial
 reporting environment faced by Swiss firms provides their managers with
 more accounting discretion than managers of Anglo-Saxon firms typically
 have. From a contractual perspective, dividendbased earnings management is
 expected since Swiss corporate law explicitly states that dividends, which
 must be voted on by stockholders, are to be based upon a firm's reported
 earnings. From a value perspective, thin trading conditions and a
 long-term investment horizon are expected to increase the importance of
 dividend payments and to influence the informativeness of reported
 earnings. Results indicate that Swiss managers do engage in dividend-based
 earnings management, that earnings quality signals are used by managers to
 voluntarily constrain their accounting choices and that the value
 relevance of earnings is conditional upon dividend payments. 
Journal: European Accounting Review 
Pages: 387-417 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017131 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017131 
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Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:387-417




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Vanstraelen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Vanstraelen 
Title: Impact of renewable long-term audit mandates on audit quality 
Abstract:
  Anglo-American countries like the US and the UK allow companies to switch
 auditors every year. In contrast, some continental European countries
 restrict auditor switching by allowing only renewable long-term audit
 mandates. This paper aims to analyse the impact of renewable long-term
 audit mandates on audit quality. Audit quality is considered from the
 viewpoint of the external users of the financial statements. It is
 questioned whether renewable long-term audit mandates have an impact on
 the auditor's reporting behaviour and on auditor independence. This
 research is motivated by the lack of consensus in the literature on the
 impact of the length of the auditor client relationship on audit quality.
 Moreover, few empirical studies use publicly available secondary data in
 order to determine whether perceived threats to auditor independence
 actually compromise auditor independence. Therefore, our research
 methodology consists in the development of a logistic regression model in
 which the explanatory variables are measured using publicly available
 data. The results of the study suggest that long-term auditor client
 relationships significantly increase the likelihood of an unqualified
 opinion or significantly reduce the auditor's willingness to qualify audit
 reports. A significant difference was also found between the auditor's
 reporting behaviour in the first two years versus the last year of the
 audit mandate. Auditors are more willing to issue an unqualified audit
 report in the first two years of their official mandate than in the last
 year of their mandate. This could be an indication that the decision to
 renew the auditor's mandate is already taken and known to the auditor
 before he has issued his last audit report within his current mandate. The
 policy implications of these findings could be in favour of mandatory
 auditor rotation to maintain the value of an audit for the external users.
 However, given recent theoretic evidence on the adverse effects of
 mandatory auditor rotation, there is a need to develop alternative
 measures to safeguard auditors' independence. 
Journal: European Accounting Review 
Pages: 419-442 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017140 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017140 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:419-442




Template-Type: ReDIF-Article 1.0
Author-Name: Jyrki Niskanen 
Author-X-Name-First: Jyrki 
Author-X-Name-Last: Niskanen 
Author-Name: Matti Keloharju 
Author-X-Name-First: Matti 
Author-X-Name-Last: Keloharju 
Title: Earnings cosmetics in a tax-driven accounting environment: evidence from Finnish public firms 
Abstract:
  Finnish firms are known to manage earnings downwards to avoid income
 taxes. This study suggests that they simultaneously manage earnings
 upwards in a smaller scale. The idea behind this behaviour is that humans
 may perceive a profit of, say, 301 million as abnormally larger than a
 profit of 298 million. Consequently, firms tend to adjust the second
 leftmost digit of earnings to exceed nine in order to make the first digit
 of earnings larger by one. Such corporate behaviour has been previously
 documented in New Zealand and in the USA. Our study finds a similar
 phenomenon in Finland. Our results show that although the largest second
 digits (eight and nine) are fewer than expected, only sixes and sevens are
 statistically significantly managed upwards. 
Journal: European Accounting Review 
Pages: 443-452 
Issue: 3 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020017159 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017159 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:3:p:443-452




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Ahrens 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Ahrens 
Author-Name: Christopher Chapman 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Chapman 
Title: Occupational identity of management accountants in Britain and Germany 
Abstract:
  The existence of management accounting as an unproblematic occupational
 label is often taken for granted. Prompted by contemporary discussions
 concerning radical changes in management accounting practice, we sought to
 examine the extent to which practitioners' accounts of practice
 demonstrate a coherent occupational identity. Collecting sixty-four
 occupational autobiographies in seventeen German and twelve British firms
 we found that management accountants in the two countries constructed
 common occupational identities out of their diverse experiences. Echoing
 the findings of anthropological practice theory, the good practitioner
 rhetorically reconciled a wide variety of contradictory attributes in
 their occupational idiom. 
Journal: European Accounting Review 
Pages: 477-498 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024070 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024070 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:477-498




Template-Type: ReDIF-Article 1.0
Author-Name: Juha Kinnunen 
Author-X-Name-First: Juha 
Author-X-Name-Last: Kinnunen 
Author-Name: Jyrki Niskanen 
Author-X-Name-First: Jyrki 
Author-X-Name-Last: Niskanen 
Author-Name: Eero Kasanen 
Author-X-Name-First: Eero 
Author-X-Name-Last: Kasanen 
Title: To whom are IAS earnings informative? Domestic versus foreign shareholders' perspectives 
Abstract:
  Using a sample from the Helsinki Stock Exchange, this paper analyses the
 information content of dual disclosures of IAS (International Accounting
 Standards) and LAS (Local Accounting Standards) earnings. Their
 information content to foreign and domestic shareholders can be
 distinguished from each other as the unrestricted shares (available to
 foreign and domestic investors) and the restricted shares (available to
 domestic investors only) of the same set of companies were listed
 separately during 1984-92. The information content is tested with
 regressions using market-adjusted stock returns measured from the
 fifty-week period ending in the week of financial statements release. The
 overall findings suggest that restating local GAAP earnings according to
 the IAS helps to meet foreign investors' information needs, but is of
 limited use to domestic investors. 
Journal: European Accounting Review 
Pages: 499-517 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020025330 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020025330 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:499-517




Template-Type: ReDIF-Article 1.0
Author-Name: Bo-Goran Ekholm 
Author-X-Name-First: Bo-Goran 
Author-X-Name-Last: Ekholm 
Author-Name: Jan Wallin 
Author-X-Name-First: Jan 
Author-X-Name-Last: Wallin 
Title: Is the annual budget really dead? 
Abstract:
  In recent years the traditional, annual budget has been accused of being
 incapable of meeting the demands of the competitive environment in the
 information age. Seeing that some of the most ardent critics are
 management consultants, with a vested interest in trying to persuade
 companies to change their management models, part of the criticism may
 perhaps be classified as hyperbole. Be this as it may, the criticism has
 resulted in more than just talk. Some real action can also be observed -;
 especially in Sweden, where several large companies have abandoned the
 traditional budget altogether. To date, academic researchers have shown
 very little interest in this phenomenon. The present study aims to
 investigate the validity of the criticism as perceived by chief financial
 officers and other high-ranking officers in large Finnish companies. The
 results of a postal survey indicate that relatively few companies are
 planning to abandon the annual budget completely. Even so, a considerable
 number of respondents who represent companies that intend to hold on to
 the annual budget indicate strong agreement with the main elements of the
 criticism. Comments made by several respondents also indicate that
 alternative, or rather, complementary, systems, such as rolling forecasts
 and monitoring systems similar to the Balanced Scorecard already exist,
 running parallel with the annual budget. Apparently, the latter still has
 a role to play as a means of maintaining internal effectiveness and
 communicating information to shareholders and other interested parties. 
Journal: European Accounting Review 
Pages: 519-539 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024007 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:519-539




Template-Type: ReDIF-Article 1.0
Author-Name: I. Lapsley 
Author-X-Name-First: I. 
Author-X-Name-Last: Lapsley 
Author-Name: C. K. M. Pong 
Author-X-Name-First: C. K. M. 
Author-X-Name-Last: Pong 
Title: Modernization versus problematization: value-for-money audit in public services 
Abstract:
  This paper examines the practice of value-for-money (VFM) audit in
 Scotland. The concept of VFM has featured strongly in the policy guidance
 of successive governments as they have initiated changes in the structure,
 organization and delivery of public services. The expression VFM is now
 embedded in everyday language and discussion about the performance of the
 public sector. However, this study of the practices of an expert group of
 VFM auditors presents a picture of complexity: VFM, as a concept, may be
 taken for granted, but, in practice, it has been, and continues to be,
 problematic. 
Journal: European Accounting Review 
Pages: 541-567 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/713764876 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764876 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:541-567




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Maijoor 
Author-X-Name-First: Steven 
Author-X-Name-Last: Maijoor 
Author-Name: Roger Meuwissen 
Author-X-Name-First: Roger 
Author-X-Name-Last: Meuwissen 
Author-Name: Luc Quadackers 
Author-X-Name-First: Luc 
Author-X-Name-Last: Quadackers 
Title: The effects of national institutions on audit research: evidence from Europe and North America 
Abstract:
  Auditing is claimed to have become more and more a global discipline. As
 a result of the expansion of the international audit firm networks, and
 the proliferation of International Standards on Auditing, differences
 between national auditing practices seem to have diminished. Surprisingly,
 national audit research communities seem to develop rather independently,
 suggesting that national institutions still play an important role in the
 production of audit research. Therefore, the objective of this paper is to
 assess the effects of local institutions on audit research. To that end,
 evidence is provided on the production of audit research in two areas:
 Europe and North America. Europe is an area with high variation in
 auditing institutions, while North America is an area with low variation
 in auditing institutions. A content analysis is presented of the European
 and North American auditing papers published in accounting and auditing
 research journals in the period 1990-7. The findings of the output
 assessment show that, compared to North American audit research,
 descriptions of national auditing institutions and environments are a
 dominant topic of European auditing papers, and that the output in terms
 of journal articles is lower. Subsequently, the paper attempts to explain
 why the assessed European and North American auditing research differs.
 The paper argues that the substantial differences in national
 institutional environments within Europe have two effects on European
 auditing research. On the one hand, national differences in auditing
 institutions and environments are an important subject of study. On the
 other hand, these differences result in a segmentation of the European
 audit research market, which is lacking in the North American market. The
 existence of a large number of smaller national auditing research markets
 results in different incentives, output and performance measures of
 auditing researchers. The paper concludes with an assessment of the future
 of audit research as a global discipline. 
Journal: European Accounting Review 
Pages: 569-587 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020023990 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020023990 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:569-587




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Walton 
Author-X-Name-First: Peter 
Author-X-Name-Last: Walton 
Title: The future of the accounting profession in Europe 
Abstract:
Journal: European Accounting Review 
Pages: 589-591 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/713764884 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:589-591




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Harding 
Author-X-Name-First: Frank 
Author-X-Name-Last: Harding 
Title: What is the role of Europe in an increasingly harmonized world? 
Abstract:
  This article is a discussion of the influences shaping the future of the
 accounting and auditing profession in Europe and the profession's response
 to the new demands. It reviews influences on accounting, emanating from
 worldwide movements and also from particularly European sources, and then
 examines the reactions of the European profession. This has included
 development of worldwide rules for the profession, but not precluded
 action at regional level through the Federation des Experts Comptables
 Europeens. 
Journal: European Accounting Review 
Pages: 593-601 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024025 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:593-601




Template-Type: ReDIF-Article 1.0
Author-Name: Henri Olivier 
Author-X-Name-First: Henri 
Author-X-Name-Last: Olivier 
Title: Challenges facing the accountancy profession 
Abstract:
  This article considers that the two most important current influences on
 the accounting profession are the development of new information
 technology and the elaboration of an ever more complex regulatory
 framework. The article examines the evolution of business reporting on the
 Internet and its likely consequences for accounting, accountants and
 assurance services provided by auditors. It then reviews the evolving
 regulatory framework, noting that this is reaching into new areas,
 including environmental reporting, social reporting and corporate
 governance. It concludes with an examination of the paradoxes of
 globalization in the context of accounting regulation. 
Journal: European Accounting Review 
Pages: 603-624 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024052 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024052 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:603-624




Template-Type: ReDIF-Article 1.0
Author-Name: Erik Van Der Plaats 
Author-X-Name-First: Erik 
Author-X-Name-Last: Van Der Plaats 
Title: Regulating auditor independence 
Abstract:
  The article considers, from the perspective of the European Commission,
 what is the role of the regulator in seeking to intervene in the provision
 of statutory audit services. The role of the auditor is considered both
 from the perspective of the capital market and in an agency context, and
 the article assesses how this interacts with the regulator. It then goes
 on to examine a number of theoretically possible options for regulating
 audit independence and audit quality. It ends by presenting current
 Commission activity in this area. 
Journal: European Accounting Review 
Pages: 625-638 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024061 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024061 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:625-638




Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Windmoller 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Windmoller 
Title: The auditor market and auditor independence 
Abstract:
  This article reviews recent changes in the business environment and
 considers how these impact upon auditing. It presents a view of the
 drivers of quality in auditing and assesses how these may be impacted by
 changes in the rules on the independence of auditors. 
Journal: European Accounting Review 
Pages: 639-642 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:639-642




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Lopez Combarros 
Author-X-Name-First: Jose Luis Lopez 
Author-X-Name-Last: Combarros 
Title: Accounting and financial audit harmonization in the European Union 
Abstract:
  The article reviews the evolution of financial reporting in the EU and
 considers how this is likely to affect auditing in the future. The
 analysis shows how the European Commission has recently concentrated its
 harmonization focus on the consolidated accounts of listed companies and
 the use of International Accounting Standards. The move towards
 internationally harmonized reporting seems likely to require auditing to
 be harmonized throughout Europe, which seems to impact recent national
 auditing standards. It is probable that this trend will continue and in
 the short term will cause changes in the arrangements for external
 overview of the audit and in national auditor independence rules. 
Journal: European Accounting Review 
Pages: 643-654 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:643-654




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus-Peter Naumann 
Author-X-Name-First: Klaus-Peter 
Author-X-Name-Last: Naumann 
Title: Financial reporting enforcement mechanisms as an element of corporate governance in Germany and reflections on their further development 
Abstract:
  The article sets out the different elements involved in the corporate
 governance and enforcement process in Germany, including the two-tier
 board, the executive board's responsibility for preparing financial
 statements, the statutory audit, the approval of the financial statements
 by the supervisory board, and the arrangements for addressing unsuitable
 accounting. After having described the current framework, it then goes on
 to review how corporate governance and enforcement is likely to evolve,
 including improved accounting, improved audit and changes in the role of
 the supervisory board. It also examines the case for a compliance review
 mechanism. 
Journal: European Accounting Review 
Pages: 655-672 
Issue: 4 
Volume: 9 
Year: 2000 
X-DOI: 10.1080/09638180020024043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020024043 
File-Format: text/html
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Handle: RePEc:taf:euract:v:9:y:2000:i:4:p:655-672




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 1-1 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122477 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122477 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:1-1




Template-Type: ReDIF-Article 1.0
Author-Name: W. Aerts 
Author-X-Name-First: W. 
Author-X-Name-Last: Aerts 
Title: Inertia in the attributional content of annual accounting narratives 
Abstract:
  Narrative disclosures in annual reports reflect explanatory activities in
 which specific attribution patterns can be identified. Research on
 corporate attributional behaviour within the context of financial
 accounting narratives has documented this behaviour and evidenced
 significant preferences for certain kinds of explanations in particular
 circumstances. This kind of research typically relies on cross-sectional
 data. There exist few statistically validated conclusions regarding the
 character and consequences of such verbal behaviour over time. This paper
 reports on a study investigating the change in narrative explanation
 practices over time. In this longitudinal research special attention is
 given to the relative strength of consistency and inertial forces on the
 attributional behaviour in annual reports. It is argued that there are a
 variety of forces that make that the explanatory patterns in annual
 reports are likely to be very similar year after year. Reporting practices
 can be to a great extent unadaptive, in the sense that they become
 programmed through the development of habit, precedents, traditions and
 formalized procedures. This is not to say that reporting practices do not
 change, but that changes even in the way corporate outcomes and actions
 are explained, are expected to be modest. The purpose of the research was
 to determine the extent to which the attributional content and framing in
 annual narrative reports changed over a period of eight years, and whether
 these changes were related to certain organizational characteristics of
 the reporting companies conceptualized as potential sources of inertial
 forces. Overall the results confirm a significant degree of consistency in
 the attributional content of accounting narratives over time. Evidence of
 an inertial effect of company listing status and performance history was
 convincingly present as to the assertiveness aspects of attributional
 behaviour and as to the differential use of accounting language in the
 explanation of financial accounting outcomes. 
Journal: European Accounting Review 
Pages: 3-32 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122562 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:3-32




Template-Type: ReDIF-Article 1.0
Author-Name: C. J. McNair 
Author-X-Name-First: C. J. 
Author-X-Name-Last: McNair 
Author-Name: Lidija Polutnik 
Author-X-Name-First: Lidija 
Author-X-Name-Last: Polutnik 
Author-Name: Riccardo Silvi 
Author-X-Name-First: Riccardo 
Author-X-Name-Last: Silvi 
Title: Cost management and value creation: the missing link 
Abstract:
  Understanding of the relationship between the costs of the firm and the
 value the firm provides to its customers is the key to the ability of the
 firm to reach its profit potential. From this perspective the firm needs
 to have a thorough understanding of its activities, their costs and their
 relation to market prices. Advanced cost management studies and practices
 suggest a variety of different tools that help us understand the
 relationship between value and cost. However, most of these studies
 provide us with qualitative tools only. An exception is studies related to
 product cost planning, as in the case of target costing or value
 analysis/value engineering. This paper, while being a part of emerging
 literature on strategic cost management, extends the existing knowledge of
 the relationship between costs and value by introducing the value creation
 model (VCM). In particular, the VCM model defines the firms' cost
 structure in terms of value added, non-value added but required
 activities, as well as of waste. A firm's cost structure is aligned with
 value attributes embedded in products and services. The VCM model seeks to
 understand the trade-off between what the customer is willing to pay for a
 product/service bundle (value) and the cost the firm bears to provide what
 the customer desires. Based on these trade-offs, VCM defines value
 multipliers, which help the firm determine which activities the firm
 should focus on in order to develop a competitive advantage. 
Journal: European Accounting Review 
Pages: 33-50 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122848 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122848 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:33-50




Template-Type: ReDIF-Article 1.0
Author-Name: Sally Aisbitt 
Author-X-Name-First: Sally 
Author-X-Name-Last: Aisbitt 
Title: Measurement of harmony of financial reporting within and between countries: the case of the Nordic countries 
Abstract:
  This article aims to examine the usefulness of Archer et al.et's (1995)
 decomposed C-index in measuring harmony and hence harmonization. Financial
 reporting in the Nordic countries (Denmark, Finland, Norway and Sweden) at
 four dates in the period between 1981 and 1998 is used as a case study to
 demonstrate the method and to generate debate about the methodology. The
 discussion of the results of the analysis leads to the identification of a
 number of problems that arise in the interpretation of the indices. The
 difficulties have been divided into two main groups: (1) problems relating
 to causal inference; and (2) problems relating to properties of the
 indices. It is argued that the inter-play between these difficulties means
 that the use and interpretation of the indices is very complicated.
 Overcoming these obstacles would require a far more intricate model, which
 might prove less satisfactory than a qualitative analysis based on closer
 examination of the base data. 
Journal: European Accounting Review 
Pages: 51-72 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122041 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122041 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:51-72




Template-Type: ReDIF-Article 1.0
Author-Name: Josep Argiles 
Author-X-Name-First: Josep 
Author-X-Name-Last: Argiles 
Title: Accounting information and the prediction of farm non-viability 
Abstract:
  Farms make little use of accounting and until now have been largely
 excluded from the scope of accounting standards. However, the hypothesis
 of this paper is that the use of accounting-based information could
 significantly improve understanding and prediction of farm non-viability.
 Two dichotomous logit models were applied to a sample containing viable
 and non-viable farms of Catalonia, Spain. One model included
 non-accounting-based variables, while the other also considered
 accounting-based variables. It was found that accounting-based variables
 added significant information to predict farm non-viability. 
Journal: European Accounting Review 
Pages: 73-105 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764592 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764592 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:73-105




Template-Type: ReDIF-Article 1.0
Author-Name: Irena Jindrichovska 
Author-X-Name-First: Irena 
Author-X-Name-Last: Jindrichovska 
Title: The relationship between accounting numbers and returns: some empirical evidence from the emerging market of the Czech Republic 
Abstract:
  Generally, stock prices reflect future expectations of earnings, whereas
 accounting data reflect past performance. This paper attempts to discover
 the relationship between accounting data and market price returns of the
 companies listed on the Prague Stock Exchange (PSE). The Prague Stock
 Exchange was established in 1993 and provides an opportunity to make a
 comparison between a newly established market and the findings of studies
 of established markets. There has been a wealth of publications and
 accounting research studies on developed markets. Generally, accounting
 attributes are thought to be relevant because they tend to be
 contemporaneously statistically associated with stock prices. Some studies
 have suggested, and empirically tested, that stock prices lead earnings
 (e.g. Collins et al., 1987; Kothari, 1992; Kothari and Sloan, 1992;
 Kothari and Zimmerman, 1995). This study tests the existence of such a
 relationship in the Czech capital market, relying partially on the
 methodology proposed by Kothari and Sloan (1992) and Kothari (1992). This
 paper investigates whether there is a statistically significant permanent
 relationship between returns and accounting data on the Czech market. The
 study was conducted using accounting earnings and stock prices during the
 period 1993-8. The empirical evidence here suggests that a similar
 relation exists on the emerging Czech market. The relation is
 statistically significant for measurement windows of one year and longer.
 The increase in the mean response coefficient, reported later in this
 study, suggests that one-leading-year returns are as important as
 contemporaneous returns in terms of their sensitivity to annual earnings
 changes. However, one cannot infer with a degree of confidence that the
 Czech capital market views earnings changes to be largely permanent, which
 would be consistent with the time-series properties of annual earnings. 
Journal: European Accounting Review 
Pages: 107-131 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122090 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122090 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:107-131




Template-Type: ReDIF-Article 1.0
Author-Name: R. H. Parker 
Author-X-Name-First: R. H. 
Author-X-Name-Last: Parker 
Title: European languages of account 
Abstract:
  Choice of 'language of account' is not a trivial decision for many
 European companies. This exploratory paper examines this choice,
 distinguishing between official, statistically dominant and
 socio-politically dominant languages; dominant and minority languages; and
 local and foreign languages. The paper concludes with a discussion of the
 dominant foreign language of account in the early twenty-first century
 (English) in its British, American and (possibly) 'international'
 varieties; with the ways in which accounting English is disseminated; and
 resistance to its use in some countries. 
Journal: European Accounting Review 
Pages: 133-147 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122495 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122495 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:133-147




Template-Type: ReDIF-Article 1.0
Author-Name: N. King 
Author-X-Name-First: N. 
Author-X-Name-Last: King 
Author-Name: A. Beattie 
Author-X-Name-First: A. 
Author-X-Name-Last: Beattie 
Author-Name: A. -M. Cristescu 
Author-X-Name-First: A. -M. 
Author-X-Name-Last: Cristescu 
Author-Name: P. Weetman 
Author-X-Name-First: P. 
Author-X-Name-Last: Weetman 
Title: Developing accounting and audit in a transition economy: the Romanian experience 
Abstract:
  The new Romanian accounting and auditing laws took effect in 1999. This
 paper investigates and evaluates the phase of development which started in
 1996, comparing the outcome of that development with the experience of
 some other transition economies. Recognizing that the move to the market
 economy was a primary driver of change, the paper considers the economic
 and social context of Romania and the potential conflicts arising where
 the growing importance of the global market, political and international
 developments influence the shaping of strategy in matters of accounting. A
 strategy shaped in this way must also cater for the specific needs of the
 many small companies in transition economies. Key to the reform process in
 Romania has been the recognition that a controlled phasing-in of change,
 accompanied by training, is necessary to give the reform process a chance
 to succeed; however, this leads to tensions arising between professional
 associations, which wish to become self-regulatory, and governments, who
 need to retain a measure of control to ensure that all elements of the
 reform are in harmony. The paper concludes that the accounting
 developments from 1996 avoided some of the pitfalls experienced earlier in
 other transition economies and also shortened some of the development
 process by making changes in parallel rather than in sequence. 
Journal: European Accounting Review 
Pages: 149-171 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122711 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122711 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:149-171




Template-Type: ReDIF-Article 1.0
Author-Name: Dimosthenis Hevas 
Author-X-Name-First: Dimosthenis 
Author-X-Name-Last: Hevas 
Author-Name: Aphroditi Papadaki 
Author-X-Name-First: Aphroditi 
Author-X-Name-Last: Papadaki 
Title: The information content of investment tax credits 
Abstract:
  This study examines the association between stock prices and tax credits
 for new investment, which appear in the balance sheet as a tax-free
 reserve. A number of valuation models were developed for companies listed
 on the Athens Stock Exchange during the period 1990-4. The empirical
 findings reveal that retained earnings committed to new investment, i.e.
 investment tax credits for future investments, are valued differently from
 both the remaining equity and the remaining earnings. Moreover, the
 empirical evidence suggests that the investment tax credits in Greece are
 not always viewed in a positive fashion by the stock market. 
Journal: European Accounting Review 
Pages: 173-186 
Issue: 1 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180122598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180122598 
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Handle: RePEc:taf:euract:v:10:y:2001:i:1:p:173-186




Template-Type: ReDIF-Article 1.0
Author-Name: John Brierley 
Author-X-Name-First: John 
Author-X-Name-Last: Brierley 
Author-Name: Christopher Cowton 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Cowton 
Author-Name: Colin Drury 
Author-X-Name-First: Colin 
Author-X-Name-Last: Drury 
Title: Research into product costing practice: a European perspective 
Abstract:
  This paper summarizes and reviews research of product costing practice in
 Europe. The review considers research into how many accounting systems
 firms use, product cost structures, the use of blanket overhead rates in
 product costing, the bases used to calculate overhead rates, the
 application of product costs in decision making and product pricing, and
 the use of activity-based costing. Although significant progress has been
 made over the last decade in describing costing practices in Europe,
 further work remains to be done. Having identified gaps in, and questions
 arising from, previous research, the paper concludes with recommendations
 for future research. 
Journal: European Accounting Review 
Pages: 215-256 
Issue: 2 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126635 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126635 
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Handle: RePEc:taf:euract:v:10:y:2001:i:2:p:215-256




Template-Type: ReDIF-Article 1.0
Author-Name: Carla Mendoza 
Author-X-Name-First: Carla 
Author-X-Name-Last: Mendoza 
Author-Name: Pierre-Laurent Bescos 
Author-X-Name-First: Pierre-Laurent 
Author-X-Name-Last: Bescos 
Title: An explanatory model of managers' information needs: implications for management accounting 
Abstract:
  This paper focuses on managers' need for information for managerial
 purposes and examines their degree of satisfaction and perception of
 missing information. Data for this paper were collected from 120
 interviews with managers from eleven major French companies. This paper
 seeks to target the factors determining managers' needs. We consequently
 developed a model that examines how manager-based variables (function,
 career path, objectives pursued) and company-based variables (performance,
 private sector or public sector status) determine managers' needs. The
 model also takes into account managers' individual strategies in selecting
 and using information. Based on this model we suggest exploring three
 roads forward, each of which could eventually lead to an improvement in
 managers' satisfaction with the management accounting information that
 they receive. 
Journal: European Accounting Review 
Pages: 257-289 
Issue: 2 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764598 
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Handle: RePEc:taf:euract:v:10:y:2001:i:2:p:257-289




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner 
Author-X-Name-First: Begona 
Author-X-Name-Last: Giner 
Author-Name: Carmelo Reverte 
Author-X-Name-First: Carmelo 
Author-X-Name-Last: Reverte 
Title: Valuation implications of capital structure: a contextual approach 
Abstract:
  In this paper, the Ohlson (1995) valuation model is used to analyse the
 informative value of firm capital structure, decomposing the book value of
 equity in its two main components (i.e., total assets and liabilities) in
 order to test whether investors price them in a different way. We adopt a
 contextual approach and analyse the value relevance of debt taking into
 account the signalling and 'optimal' financial structure theories as well
 as the relationship between the cost of debt and return on investment. The
 sample used comprises all the non-financial Spanish firms listed in the
 Madrid Stock Exchange during the period 1991-7. Our results seem to
 support the 'optimal' capital structure theory since departures of the
 debt-to-equity ratio from its 'optimal' (or target) level are negatively
 perceived by the market. The debt valuation parameter is higher (lower)
 for those firms with a cost of debt above (below) return on investment. In
 addition, and consistent with the signalling theory, debt seems to be a
 positive signal for firms facing good prospects. This effect is strongly
 significant for those cases in which return on investment exceeds the cost
 of debt. 
Journal: European Accounting Review 
Pages: 291-314 
Issue: 2 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126637 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126637 
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Handle: RePEc:taf:euract:v:10:y:2001:i:2:p:291-314




Template-Type: ReDIF-Article 1.0
Author-Name: Michael McCrae 
Author-X-Name-First: Michael 
Author-X-Name-Last: McCrae 
Author-Name: Henrik Nilsson 
Author-X-Name-First: Henrik 
Author-X-Name-Last: Nilsson 
Title: The explanatory and predictive power of different specifications of the Ohlson (1995) valuation models 
Abstract:
  Accounting-based valuation studies of US firms tend to support Ohlson's
 proposition that residual income and book value numbers have information
 content in explaining observed market values. But European evidence also
 suggests that the conservative/liberal orientation of accounting tradition
 can produce significant national differences in associations between
 accounting performance measures and stock prices - in earnings behaviour,
 coefficient values and parameter sensitivity. We address these issues from
 an equity valuation perspective using Swedish data to assess the
 additional information content of Ohlson's information dynamics and
 analysts' forecasts in relation to market valuations in a more
 conservative accounting environment than the US. The study compares the
 explanatory and predictive power of Ohlson's (1995) residual income model
 (RIV) with a linear information dynamics version (LIM) that specifies both
 residual income and non-accounting information as autoregressive
 processes. Both versions are applied with, and without, future performance
 expectations from non-accounting sources (analysts' forecasts). As with US
 evidence, we find that the inclusion of analysts' forecasts improves both
 (i) cross-sectional correlations with current prices for both RIV and LIM
 models and (ii) the predictive power of RIV models in relation to future
 annual cross-sectional stock returns. The contribution of linear
 information dynamics is significant but varies across approaches. We also
 find significant differences between Swedish and US firms in earnings
 behaviour and associations between accounting numbers and market equity
 prices. 
Journal: European Accounting Review 
Pages: 315-341 
Issue: 2 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764600 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764600 
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Handle: RePEc:taf:euract:v:10:y:2001:i:2:p:315-341




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Daniel 
Author-X-Name-First: Peter 
Author-X-Name-Last: Daniel 
Author-Name: Zuzana Suranova 
Author-X-Name-First: Zuzana 
Author-X-Name-Last: Suranova 
Author-Name: Ignace De Beelde 
Author-X-Name-First: Ignace 
Author-X-Name-Last: De Beelde 
Title: The development of accounting in Slovakia 
Abstract:
  Like many countries in Eastern Europe, Slovakia is currently facing
 social and economic changes that are leading the country towards a market
 economy. In the future, the country might join the European Union. This
 will call for many legislative and practical changes to which Slovak
 institutions and companies will have to adapt. After an introduction
 outlining the political and economic development of the country, this
 paper focuses on the development and role of accounting and auditing.
 After 1953, both the planning system and the accounting system were
 oriented towards the Soviet model. After the political changes of 1989,
 the accounting system was adapted to meet the economic changes in the
 country. The innovations were strongly influenced by continental European
 accounting models. Since the revolution of 1989, there have also been
 developments with respect to the profession, with the establishment of the
 Slovak Union of Accountants and the Slovak Chamber of Auditors. The
 Ministry of Finance, which includes a Department of Accounting
 Methodology, continues to play a central role in the development of
 accounting practices. Although the Big Five audit firms seem to have
 strengthened their position in the country, local auditors remain dominant
 in many industries. 
Journal: European Accounting Review 
Pages: 343-359 
Issue: 2 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126639 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126639 
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Handle: RePEc:taf:euract:v:10:y:2001:i:2:p:343-359




Template-Type: ReDIF-Article 1.0
Author-Name: Josep Maria Argiles 
Author-X-Name-First: Josep Maria 
Author-X-Name-Last: Argiles 
Author-Name: Eric John Slof 
Author-X-Name-First: Eric John 
Author-X-Name-Last: Slof 
Title: New opportunities for farm accounting 
Abstract:
  This paper starts out to observe that there is a gap between the
 importance given to accounting and the low level of bookkeeping and
 accounting practice in the agricultural sector. Reasons for this gap are
 that current general accounting rules do not adapt very well to the
 particularities of farming and are difficult and expensive to implement.
 We then suggest that the Farm Accountancy Data Network (FADN) and the
 recently issued International Accounting Standard on Agriculture (IAS 41)
 could be key elements to improve the use of accounting in European farms.
 We review the main contributions of IAS 41 and conclude that it provides a
 strong conceptual framework but might need further instruments for its
 implementation in practice, given the limitations of the agricultural
 sector. We continue to explain that FADN is an experienced network that
 has elaborated very detailed farm accounting procedures, and suggest that
 these procedures could be turned into a guide for implementing IAS 41. We
 report empirical data which indicate that current FADN reports are already
 considered useful by farmers for different purposes. Finally, we analyse
 in detail the compatibility of IAS 41 and FADN, identifying changes in the
 FADN procedures that would become necessary if the FADN procedures were to
 be used for implementing IAS 41 and some aspects of FADN that might have
 been worthwhile to consider for the final version of IAS 41. 
Journal: European Accounting Review 
Pages: 361-383 
Issue: 2 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126640 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126640 
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Handle: RePEc:taf:euract:v:10:y:2001:i:2:p:361-383




Template-Type: ReDIF-Article 1.0
Author-Name: Ulf Johanson 
Author-X-Name-First: Ulf 
Author-X-Name-Last: Johanson 
Author-Name: Maria M&#xe5;rtensson 
Author-X-Name-First: Maria 
Author-X-Name-Last: M&#xe5;rtensson 
Author-Name: Matti Skoog 
Author-X-Name-First: Matti 
Author-X-Name-Last: Skoog 
Title: Measuring to understand intangible performance drivers 
Abstract:
  The present qualitative study explores what eleven Swedish organizations
 have systematically worked at to increase the understanding of the
 importance of intangibles as performance drivers. The present analysis is
 accomplished using a combination of evolutionary theory, knowledge-based
 theory and organizational learning. The results indicate that assets in an
 accounting sense seem to be of less interest than perceptions of
 activities that enable future performance. These &#x201c;enablers&#x201d;
 are often customer and employee perceptions of individual, organizational
 and relational competence. The way for the firms to ascertain a continuous
 organizational learning process with respect to the value creation chain
 is to measure intangibles as well as to maintain organizational routines
 that ensure the transformation of measurement results into action. 
Journal: European Accounting Review 
Pages: 407-437 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126791 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126791 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:407-437




Template-Type: ReDIF-Article 1.0
Author-Name: David Citron 
Author-X-Name-First: David 
Author-X-Name-Last: Citron 
Author-Name: Gikas Manalis 
Author-X-Name-First: Gikas 
Author-X-Name-Last: Manalis 
Title: The international firms as new entrants to the statutory audit market: an empirical analysis of auditor selection in Greece, 1993 to 1997 
Abstract:
  This paper investigates choice of statutory auditor in Greece in the five
 years subsequent to the 1992 liberalization of the audit market. We
 analyse auditor choices by 205 companies which, by 1997, represented
 almost 90% of companies listed on the Athens Stock Exchange. We find that
 the level of shareholdings by foreign shareholders is positively
 associated with choice of a Big Six versus any other auditor both
 immediately after liberalization in 1993 and still in 1997, indicative of
 the role of the Big Six in providing audit credibility in the eyes of
 international investors. In addition, Big Six auditors strengthened their
 position in the finance sector and, outside the finance sector, among
 larger companies over the period studied. We also find that in both 1993
 and 1997 Big Six firms were distinguished specifically from the
 second-tier international firms, consistent with the view that, in
 post-liberalization Greece, companies by their choice of auditor appear to
 be distinguishing Big Six firms from all others but not between
 second-tier international firms and local auditors. These findings shed
 light on the hitherto unresearched area of which companies Big Six
 auditors target in order to gain market share when they are new entrants
 in an environment radically changed by regulatory reform. In addition the
 research extends the auditor name brand reputation debate by its finding
 that, in post-liberalization Greece, second-tier international firms
 appear to be distinguished from the Big Six but not from the local audit
 firms. 
Journal: European Accounting Review 
Pages: 439-459 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764634 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764634 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:439-459




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Piot 
Author-X-Name-First: Charles 
Author-X-Name-Last: Piot 
Title: Agency costs and audit quality: evidence from France 
Abstract:
  This paper examines the influence of agency conflicts on the demand for
 audit quality by French listed companies. The French environment is
 characterized by constraining regulations on independence and
 informational duties of statutory auditors, a weak contribution of
 financial markets in corporate financing as compared to Common Law
 countries, and correlatively a higher ownership concentration. Two agency
 costs hypotheses are tested: ownership diffusion as a proxy for
 shareholders managers conflicts, and leverage in
 high-Investment-Opportunity-Set companies, supposing an increased
 expropriation risk for debtholders. Audit quality is proxied with a triple
 distinction of auditors: Big Six, national Majors and Local audit firms.
 Empirical results do not support the ownership hypothesis and corroborate
 the debt-IOS one. This suggests that: (1) the Anglo-American
 principal-agent model has little explanatory power in the concentrated
 ownership framework of French corporate governance; (2) audit quality
 appears as a valuable monitoring device that may improve debtholders'
 protection, enhancing the reliability of accounting numbers when the risk
 of wealth transfers at the expense of debtholders is significant.
 Elsewhere, size, complexity and international operations of audited
 clients do not represent competition barriers between Big Six and national
 Majors, supporting a significant competition between both categories of
 audit firms on the market of listed companies. 
Journal: European Accounting Review 
Pages: 461-499 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764630 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764630 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:461-499




Template-Type: ReDIF-Article 1.0
Author-Name: Irvine Lapsley 
Author-X-Name-First: Irvine 
Author-X-Name-Last: Lapsley 
Title: The changing public sector: from transition to transformation 
Abstract:
Journal: European Accounting Review 
Pages: 501-504 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126798 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126798 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:501-504




Template-Type: ReDIF-Article 1.0
Author-Name: Olov Olson 
Author-X-Name-First: Olov 
Author-X-Name-Last: Olson 
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Author-Name: James Guthrie 
Author-X-Name-First: James 
Author-X-Name-Last: Guthrie 
Title: Caught in an evaluatory trap: a dilemma for public services under NPFM 
Abstract:
  This paper presents a challenge to public sector managers, policy-makers
 and interested academics. Drawing on the findings of previous
 international comparative studies of new public financial management
 (NPFM) reforms, it concludes that public services and their providers are
 caught in an 'evaluatory trap'. The continual promotion of NPFM reforms,
 despite their evident repeated failure to meet specified achievements, is
 argued to be generating a cycle of ever-decreasing public services at
 ever-increasing costs per service unit. As the legitimacy of public
 services increasingly rests on the need to be seen as efficient and
 effective and as definitions of efficiency frequently demand adoption of
 the latest set of NPFM reforms, it follows that the future for public
 services is in question. 
Journal: European Accounting Review 
Pages: 505-522 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126799 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126799 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:505-522




Template-Type: ReDIF-Article 1.0
Author-Name: Irvine Lapsley 
Author-X-Name-First: Irvine 
Author-X-Name-Last: Lapsley 
Author-Name: Rosie Oldfield 
Author-X-Name-First: Rosie 
Author-X-Name-Last: Oldfield 
Title: Transforming the public sector: management consultants as agents of change 
Abstract:
  This paper examines the practices of a distinctive group of change agents
 in the reform of the UK public sector - management consultants. The
 involvement of management consultants in these reforms has been the
 subject of intense debate. There have been attempts to present management
 consultants as 'rational modernizers', on the one hand and attempts to
 demonize them, on the other. However, little is known about the practices
 of management consultants in the public sector. This paper seeks to shed
 light on the management consultant as change agent in the UK public
 sector. The primary source of evidence is the perceptions of management
 consultants who have advised public sector institutions. 
Journal: European Accounting Review 
Pages: 523-543 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764628 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764628 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:523-543




Template-Type: ReDIF-Article 1.0
Author-Name: Lars-Goran Aidemark 
Author-X-Name-First: Lars-Goran 
Author-X-Name-Last: Aidemark 
Title: Managed health care perspectives: a study of management accounting reforms on managing financial difficulties in a health care organization 
Abstract:
  This paper examines the effect of two accounting reforms on managing
 financial difficulties in a health care organization. At the beginning of
 the 1990s, Kronoberg County Council, a health care organization with more
 than 7,000 employees, was exposed to a strained financial situation. The
 County Council Assembly decided on a radical retrenchment policy. To make
 this policy workable, the management accounting system was subject to two
 major reforms: responsibility accounting and an internal market system. A
 longitudinal study was carried out between 1992 and 1997. To understand
 the development, four different conceptual models have been used in the
 study: the institutional theorist's perspective, a conceptual framework
 for the design of organizational control mechanisms, the importance of
 receptive contexts and the concept of 'appreciative judgement'. Each of
 these frameworks contributes a different interpretation of the reforms.
 The study gives support to Pettigrew's theory on the contextual dependency
 of strategic change. A disciplining context made it possible to balance
 income and expenditure. Budget planning and responsibility accounting were
 powerful tools when this balancing strategy was carried out. The internal
 market system was not a solution to the problem. In this context, it
 threatened to aggravate the financial problem. 
Journal: European Accounting Review 
Pages: 545-560 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764627 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764627 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:545-560




Template-Type: ReDIF-Article 1.0
Author-Name: Inger Johanne Pettersen 
Author-X-Name-First: Inger Johanne 
Author-X-Name-Last: Pettersen 
Title: Implementing management accounting reforms in the public sector: the difficult journey from intentions to effects 
Abstract:
  The aim of this paper is to gain more insight into the link between
 management accounting reforms and organizational learning and change in
 the hospital sector. In particular, the focus is put on the processes of
 defining and interpreting accounting information in this complex setting
 of public sector management. In 1997 the Norwegian government made a
 radical change in the hospitals' payment system. The hospitals'
 adjustments to these different systems of budget constraints are analysed
 by data from the county of Nordland and a case study in a university
 hospital clinic. The studies show that the hospitals adjusted to the frame
 budget system from 1991-7 by systematically creating budget deficits,
 which are identified as budget drivers during this period. The case study
 shows that the leaders at the clinical level made a different
 conceptualization of the new funding model than that of the government.
 Owing to these diverse conceptualizations and concrete experiences at
 different institutional levels, more ambiguity will occur in controlling
 hospital activity and cost under the new per-case funding system. 
Journal: European Accounting Review 
Pages: 561-581 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764632 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764632 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:561-581




Template-Type: ReDIF-Article 1.0
Author-Name: &#xc5;ge Johnsen 
Author-X-Name-First: &#xc5;ge 
Author-X-Name-Last: Johnsen 
Author-Name: Pentti Meklin 
Author-X-Name-First: Pentti 
Author-X-Name-Last: Meklin 
Author-Name: Lasse Oulasvirta 
Author-X-Name-First: Lasse 
Author-X-Name-Last: Oulasvirta 
Author-Name: Jarmo Vakkuri 
Author-X-Name-First: Jarmo 
Author-X-Name-Last: Vakkuri 
Title: Performance auditing in local government: an exploratory study of perceived efficiency of municipal value for money auditing in Finland and Norway 
Abstract:
  Performance auditing, or value for money (VFM) auditing, has been a
 long-standing component of accountability in public administration. During
 the 1980s and 1990s performance auditing has allegedly been increasingly
 adopted in the new public management. While there has been much research
 on public management and performance auditing in central government, local
 government has been relatively neglected in the literature. Municipalities
 and counties in local government have an important role in public sector
 service production in most European countries, and especially in the
 Nordic countries. It is therefore surprising that performance auditing in
 this context has received so little scholarly attention. This study is
 aimed at filling some of this gap. The purpose of this comparative study
 is, therefore, to explore how performance auditing practices, including
 performance measurement, are used to assess and verify value for money in
 local government and to enhance the accountability of municipalities and
 counties. This study analyses how informants from both auditors and
 auditees in Finland and Norway perceived the efficiency of conducting
 performance audits in local government. Despite some problems related to
 the quality of the performance audit reports, the informants perceived
 performance audit to function as a useful, rational public management
 tool. 
Journal: European Accounting Review 
Pages: 583-599 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126803 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126803 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:583-599




Template-Type: ReDIF-Article 1.0
Author-Name: Lourdes Torres 
Author-X-Name-First: Lourdes 
Author-X-Name-Last: Torres 
Author-Name: Vicente Pina 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Pina 
Title: Public-private partnership and private finance initiatives in the EU and Spanish local governments 
Abstract:
  This paper analyses the different public-private partnership initiatives
 carried out by EU and Spanish local governments in the framework of public
 sector reforms. In the first part we analyse the degree of externalization
 in the public services delivered by the most important EU cities and the
 kind of organization chosen to provide them. In the second part we study
 the different methods of PFI applied in Spain and the accounting, auditing
 and monitoring of these kinds of contracts. The results of our survey show
 that almost all EU local governments provide similar services, that there
 is a high degree of PPP initiatives in the delivery of local government
 services, and that PPP is concerned with those activities which do not
 constitute the core of public administration. This means that an important
 part of the activity controlled by the local governments, which are
 responsible, are not reflected in their individual annual accounts.
 Because of this, local governments will have to implement accountability
 and monitoring tools, such as PPP and PFI accounting standards,
 consolidation of annual accounts, regulatory bodies and value-for-money
 audits in order to assess the performance of local services delivered
 under PPP initiatives, and to prevent monopoly abuses. 
Journal: European Accounting Review 
Pages: 601-619 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764637 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764637 
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:601-619




Template-Type: ReDIF-Article 1.0
Author-Name: Henk Ter Bogt 
Author-X-Name-First: Henk Ter 
Author-X-Name-Last: Bogt 
Title: Politicians and output-oriented performance evaluation in municipalities 
Abstract:
  This paper considers the value that aldermen in Dutch municipalities, who
 are elected politicians, attach to quantitative output information. The
 paper especially focuses on the way in which aldermen evaluate the
 performances of their professional top managers. In the paper the Hopwood
 evaluation styles, which originally refer to the private sector, are
 further developed for the public sector. Exploratory field research was
 conducted in the municipalities of Groningen, Leeuwarden and The Hague.
 The research shows that the aldermen paid much attention to a manager's
 activities and the organization's operations and relatively little to
 outputs. Aldermen did not use an 'output-constrained' or an
 'outcome-conscious' evaluation style. Rather, most of the politicians
 evaluated the performances of their top managers in a style that is here
 called an 'operations-conscious style'. This evaluation style focuses on
 the activities of managers and the processes of their organization.
 Quantitative output information plays some part in this evaluation style,
 but the main question is whether a manager acts as a good 'facilitator',
 i.e. ensures that his organization is functioning well. Besides, important
 criteria are the way in which a manager deals with short-term problems and
 with the politicians' opinions and personal wishes. 
Journal: European Accounting Review 
Pages: 621-643 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/713764629 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713764629 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:621-643




Template-Type: ReDIF-Article 1.0
Author-Name: June Pallot 
Author-X-Name-First: June 
Author-X-Name-Last: Pallot 
Title: Transparency in local government: antipodean initiatives 
Abstract:
  Over the last decade, significant accounting reforms have been considered
 by a wide range of state and local governments throughout the world. Few
 countries have undertaken such extensive reform of their public sector, or
 of their public sector accounting practices as an integral part of those
 reforms, as New Zealand. While the central government accounting reforms
 are more well known, the reforms at local government have been equally
 dramatic, the most recent being the introduction in 1998 of a long-term
 financial planning regime under the Local Government Amendment (No. 3) Act
 1996. This paper examines the factors leading up to the legislation,
 describes the requirements of the new regime, identifies the accounting
 and related issues which have arisen and concludes with some lessons which
 other countries may wish to consider in their own quest for transparency
 and accountability. 
Journal: European Accounting Review 
Pages: 645-660 
Issue: 3 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180126794 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180126794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:3:p:645-660




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Francois Gajewski 
Author-X-Name-First: Jean-Francois 
Author-X-Name-Last: Gajewski 
Author-Name: Bertrand Quere 
Author-X-Name-First: Bertrand 
Author-X-Name-Last: Quere 
Title: The information content of earnings and turnover announcements in France 
Abstract:
  Annual net income is seen by shareholders as the most important figure,
 since it is, for individual accounts, the basis of appropriation of profit
 by the shareholders' general meeting. However, firms publish interim
 figures at a higher frequency to allow investors to react quickly to
 frequently updated information that gives them a more accurate view of the
 evolution of the firm. In the United States, according to regulation S-X,
 the interim quarterly reports must disclose the net income. In France,
 firms must publish their quarterly turnovers and their half-year income
 statements in addition to their annual accounts. Whereas American
 publications are practically homogeneous in nature in terms of earnings
 disclosure, the information content of French quarterly reports differs
 from that of the half-year and annual accounts. Such French irregularities
 in information content mean that interim and annual announcements do not
 have the same value for the shareholders. Because of the heterogeneous
 nature and the time frame of the disclosed information, one may wonder if
 French market reactions to the announcements of interim publications
 exhibit significantly different characteristics from those observed for
 quarterly releases in other countries. This can only be appreciated
 through a differential analysis of French market response to interim and
 annual announcements. 
Journal: European Accounting Review 
Pages: 679-704 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180127397 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180127397 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:679-704




Template-Type: ReDIF-Article 1.0
Author-Name: Norvald Monsen 
Author-X-Name-First: Norvald 
Author-X-Name-Last: Monsen 
Title: Cameral accounting and cash flow reporting: some implications for use of the direct or indirect method 
Abstract:
  The most thoroughly debated format issue in designing a cash flow
 statement for a business enterprise concerns use ofthe direct or
 indirectmethod when reporting cash from operating activities. The article
 argues that the reason why we cannot solve this dilemma of using the
 direct or indirect method is related to the fact that our discussion is
 limited to using the axiom of double-entry bookkeeping within commercial
 accounting. In this article, however, the discussion of whether to use the
 direct or indirect method is not limited to commercial double-entry
 bookkeeping; it is also based upon another accounting framework,
 specifically designed to deal with cash transactions of governmental
 organizations: single-entry cameral accounting. The article argues that
 commercial accounting could learn from cameral accounting, separating cash
 from non-cash balance sheet changes, and directly prepare a cash flow
 statement from the single-entries of the cash transactions on the cash
 account, before they are entered into the double-entry bookkeeping system,
 to provide a performance result (revenues minus expenses) and related
 balance sheet information (assets, liabilities and equity). By applying
 this procedure, the direct method of preparing a cash flow statement
 becomes the natural method to use. 
Journal: European Accounting Review 
Pages: 705-724 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180120103305 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180120103305 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:705-724




Template-Type: ReDIF-Article 1.0
Author-Name: Mary Canning 
Author-X-Name-First: Mary 
Author-X-Name-Last: Canning 
Author-Name: Brendan O'Dwyer 
Author-X-Name-First: Brendan 
Author-X-Name-Last: O'Dwyer 
Title: Professional accounting bodies' disciplinary procedures: accountable, transparent and in the public interest? 
Abstract:
  This paper critiques the public interest proclamations of accounting
 professions with particular reference to the role of disciplinary
 procedures in protecting these interests. It is argued that professions'
 widely declared concerns for the public interest, often conceptualized as
 encompassing a commitment to public accountability and transparency, are
 frequently used as a convenient mechanism for avoiding criticism and
 maintaining the power and privilege of delegated self-regulation. This
 argument is developed by examining the role played by disciplinary
 procedures, in particular the reporting of their results, in creating a
 perception that the profession acts in the public interest. The critique
 is supported with data derived from an investigation of the disciplinary
 procedures of one accounting body, the Institute of Chartered Accountants
 in Ireland (ICAI). The results of this examination indicate that the ICAI
 process appears deficient in terms of its accountability and transparency
 and further that there is little fairness or equity in terms of the
 penalties applied to members for offences committed. This tends to support
 prior research which suggests that disciplinary procedures (and the
 ethical codes they purportedly enforce) fulfil a 'profession protection'
 as opposed to a 'society protection' role aimed at insulating the
 profession from inspection and assessment from outside parties.
 Implications for the accounting profession and for future research are
 discussed. 
Journal: European Accounting Review 
Pages: 725-749 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180127398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180127398 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:725-749




Template-Type: ReDIF-Article 1.0
Author-Name: Prem Sikka 
Author-X-Name-First: Prem 
Author-X-Name-Last: Sikka 
Title: Transparency and accountability of the professional accountancy bodies: some observations on the Canning and O'Dwyer paper 
Abstract:
  The Canning and O'Dwyer study makes a valuable contribution to the
 literature on the public interest claims of the professional accountancy
 bodies. This paper critiques the study by focusing on its theory and
 evidence. It also encourages scholars to take a deeper look at the
 governance and policies of the professional bodies and communicate their
 insights to the widest possible audience so that the power of the
 profession could be subjected to greater democratic scrutiny. 
Journal: European Accounting Review 
Pages: 751-761 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180127399 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180127399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:751-761




Template-Type: ReDIF-Article 1.0
Author-Name: C. Richard Baker 
Author-X-Name-First: C. Richard 
Author-X-Name-Last: Baker 
Author-Name: Alain Mikol 
Author-X-Name-First: Alain 
Author-X-Name-Last: Mikol 
Author-Name: Reiner Quick 
Author-X-Name-First: Reiner 
Author-X-Name-Last: Quick 
Title: Regulation of the statutory auditor in the European Union: a comparative survey of the United Kingdom, France and Germany 
Abstract:
  In this paper we discuss regulation of the statutory auditor in the
 United Kingdom, France and Germany. Previous research has addressed
 regulation of statutory auditors with respect to regulatory harmonization
 and the reduction of barriers to intra-European trade in professional
 services. While these are important goals, it has also been the policy of
 the European Commission to encourage high standards of auditing, which the
 Commission anticipates will evolve within the legal and regulatory
 frameworks of the Member States of the EU. In this regard, our paper seeks
 to investigate how auditor regulation is organized in three important EU
 economies. In particular we examine several key functions of auditor
 regulation and how these are deployed in the three countries investigated.
 In addition we provide some forward-looking comments concerning regulation
 of statutory auditors in the EU. 
Journal: European Accounting Review 
Pages: 763-786 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180120069124 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180120069124 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:763-786




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Herrbach 
Author-X-Name-First: Olivier 
Author-X-Name-Last: Herrbach 
Title: Audit quality, auditor behaviour and the psychological contract 
Abstract:
  The quality of the opinion provided by audit firms is an important
 determinant of their long-term survival. However, audit quality is
 difficult to gauge, which makes it particularly sensitive to the behaviour
 of the individuals who carry on audit work. Differences of interest
 between partners and other firm members can then have adverse consequences
 on the work motivation of field auditors. In particular, audit quality
 reduction behaviours are defined as actions taken by an auditor during an
 engagement that reduce evidence-gathering effectiveness inappropriately.
 These acts can threaten audit quality or damage the reputation of the
 profession. This paper, which is based on a survey of 170 audit seniors
 working in large audit firms in France, uses a model based on
 'psychological contract' assessment and affective commitment to account
 for audit quality reduction behaviours by the respondents. The results
 show that the psychological contract elements dealing with the
 professional aspect of auditing are the most influential, and that
 affective commitment is correlated to social but not to technical quality
 reduction behaviours. The perception, by the respondents, of the quality
 of the review process is also significant. Some implications of these
 results for the future of auditing are drawn. 
Journal: European Accounting Review 
Pages: 787-802 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180127400 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180127400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:787-802




Template-Type: ReDIF-Article 1.0
Author-Name: Nieves Carrera 
Author-X-Name-First: Nieves 
Author-X-Name-Last: Carrera 
Author-Name: Isabel Gutierrez 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Gutierrez 
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: Gender, the state and the audit profession: evidence from Spain (1942-88) 
Abstract:
  Extant knowledge on gender and auditing overwhelmingly relies on evidence
 gathered from a limited group of Anglo-Saxon countries. It is widely
 admitted, however, that gender issues are affected by the institutional
 contexts of the investigation. The Anglo-Saxon settings, we contend,
 embrace a number of idiosyncratic, institutional characteristics that
 advise caution in the generalizability of results. Our study addresses the
 role of gender in Spanish audit practice during the period 1942 to 1988.
 The environment of the Spanish audit profession witnessed the peaceful
 transition from a dictatorship to a full-fledged democracy as well as the
 emergence of a free market economy from a system characterized by stiff
 economic autarchy and an overriding intervention of the state in the
 economy. We found that the dominant role of the state in Spanish society
 affected the structure of the audit profession and made impossible the
 emergence of an autonomous project. In particular, our findings reveal
 that the audit profession did not have an independent strategy about the
 role of women at work, but mimicked the attitudes deployed by the state
 during our observation period. 
Journal: European Accounting Review 
Pages: 803-815 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180120088277 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180120088277 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:803-815




Template-Type: ReDIF-Article 1.0
Author-Name: Pat Sucher 
Author-X-Name-First: Pat 
Author-X-Name-Last: Sucher 
Author-Name: Svetlana Bychkova 
Author-X-Name-First: Svetlana 
Author-X-Name-Last: Bychkova 
Title: Auditor independence in economies in transition: a study of Russia 
Abstract:
  The independence of auditors is regarded as key to their credibility as
 external verifiers of external financial statements. The requirement for
 external auditors to be independent of their clients when undertaking an
 audit is enshrined in the International Federation of Accountants' (IFAC)
 Code of Ethics and in the European Union's Eighth Directive. In the IFAC
 code this requirement is translated into various situations where
 observance of certain rules should ensure independence. As the countries
 of Central Europe and the former Soviet Union have drafted and implemented
 new laws on external audit, some of these auditor independence rules have
 been included in the new laws and codes of professional practice. Yet the
 rationale for the inclusion of these rules is not always clear,
 particularly given the different cultural and business contexts. In this
 paper, the authors have identified the auditor independence rule
 requirements that have been implemented into the laws and codes of
 practice in Russia. These requirements are then analysed against the
 economic, social and historic background in Russia, based to a large
 extent on interviews with auditors, enterprise management and users of
 financial statements, to generate questions about the efficacy of the
 auditor independence rules. This should provide relevant input to
 international and national bodies concerned with the drafting of rules
 relating to auditor independence in countries with different social and
 economic traditions. 
Journal: European Accounting Review 
Pages: 817-841 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180120069142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180120069142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:817-841




Template-Type: ReDIF-Article 1.0
Author-Name: Eva Wallerstedt 
Author-X-Name-First: Eva 
Author-X-Name-Last: Wallerstedt 
Title: The emergence of the Big Five in Sweden 
Abstract:
  The accounting profession is dominated by the Big Five, which in 1999 and
 in order of revenue size were PricewaterhouseCoopers, Ernst & Young, KPMG,
 Deloitte Touche Tohmatsu and Arthur Andersen. A specific feature of the
 profession in Sweden is that three firms dominate the market -;
 PricewaterhouseCoopers, Ernst & Young and KPMG - while Arthur Andersen and
 Deloitte & Touche are of less relative importance compared with their
 standing in other countries. The objective of this paper is to explore the
 development of the auditing profession in Sweden 1912-99, in order to find
 the growth strategies that generated today's structure. Particular
 attention will be paid to the gradual emergence of the Big Five. The Big
 Three auditing firms in Sweden in 1999 engaged 55% (1,105 authorized
 public accountants) of the total population of authorized public
 accountants. However, the proportion of 'sole practitioners', i.e. firms
 with no more than one authorized public accountant, was 81% in the same
 year. An overwhelming part of the auditing firms in Sweden are thus very
 small. It seems quite obvious that the activities within these small firms
 in many important ways differ from the activities within the medium-sized
 and big firms. A common feature of the firms that subsequently became the
 Big Three in Sweden is that they were established at a very early stage.
 There seems to have been a first-mover advantage in the auditing
 profession. The Big Three firms have adopted different growth strategies.
 They have increased in size by organic growth, by establishing or buying
 branch offices in different parts of Sweden or by merging with large
 firms. 
Journal: European Accounting Review 
Pages: 843-867 
Issue: 4 
Volume: 10 
Year: 2001 
X-DOI: 10.1080/09638180120069133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180120069133 
File-Format: text/html
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Handle: RePEc:taf:euract:v:10:y:2001:i:4:p:843-867




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 1-2 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/096368180220124680 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096368180220124680 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:1-2




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Author-Name: Anne Loft 
Author-X-Name-First: Anne 
Author-X-Name-Last: Loft 
Title: Special Issue to celebrate the twenty-fifth anniversary of the European Accounting Association: Introduction 
Abstract:
Journal: European Accounting Review 
Pages: 3-7 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124707 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124707 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:3-7




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: History matters: lessons from twenty-five years of the European Accounting Association 
Abstract:
  Drawing on a number of primary sources (e.g. the minutes of the meetings
 of the governing bodies of the Association, EAA publications and congress
 proceedings), this study outlines the undertakings of the European
 Accounting Association (EAA) from its inception to the present.
 Examination of available evidence suggests that the activity of the EAA
 may be explained by the concomitant effect of institutional,
 organizational and individual factors. It was found that the EAA made
 considerable progress in: facilitating networking among European
 accounting scholars; increasing commitment towards high-quality research;
 incorporating into its structures and activities the notion of diversity;
 increasing reputation of its annual congress; and substituting its initial
 Anglo-Saxon-northern European dominance by a more comprehensive European
 focus. The EAA, though, faces some challenges in the near future:
 consolidation in southern Europe and other peripheral countries;
 penetration in eastern Europe; eventual re-definition of its aims and
 scope in a globalized world; eventual re-definition of the size and scope
 of its annual congress; and a more prominent role of women in executive
 posts. 
Journal: European Accounting Review 
Pages: 9-32 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124716 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124716 
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Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:9-32




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Hopwood 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Hopwood 
Title: Creating a new community: the establishment and development of the European Accounting Association 
Abstract:
Journal: European Accounting Review 
Pages: 33-41 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124725 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124725 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:33-41




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Loft 
Author-X-Name-First: Anne 
Author-X-Name-Last: Loft 
Author-Name: Ann Jorissen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Jorissen 
Author-Name: Peter Walton 
Author-X-Name-First: Peter 
Author-X-Name-Last: Walton 
Title: From newsletter to academic journal: creating the European Accounting Review 
Abstract:
  This paper looks at the evolution of the European Accounting Review as
 the journal of the European Accounting Association. It provides an
 historical background to the launch of the journal in 1992, and traces how
 the European Accounting Review has developed to be a widely accepted
 academic journal in accounting. The journal tried at one and the same
 time, and managed with some success, to fulfil several different
 functions: to be an academic journal, a newsletter for the members and a
 place for debate on European accounting regulation. It seems that one of
 the main reasons that this was possible was the way EAR grew out of
 earlier initiatives by the EAA such as the Newsletter, the annual doctoral
 colloquium and the EIASM accounting workshops. The journal was thus a
 product of the development of a community of accounting researchers in
 Europe. In turn it began to play a constructive role in contributing to
 the further development of the accounting research community in Europe.
 During its first decade, the period on which our analysis concentrates,
 the European Accounting Review has acted to develop the idea of European
 accounting research in a research environment which has tended, at the
 international level, to be dominated by the Anglo-Saxon countries. EAR has
 tried to become a journal for European academics, and to be sensitive to
 European issues while being published in English. Being published in
 English, it thus directly competes for submissions and for readers in the
 global market for accountancy journals. In this way it has acted as one of
 the catalysts in the process of internationalization of the European
 academic accounting community. After the reform of 1999, the structure and
 aims of the journal are now more tightly focused on being a successful
 academic research journal, and less on playing a role as a forum for
 information and discussion. In this article we hope that we can contribute
 to celebrating the 25th anniversary of the EAA and reflect on EAR 's
 future role in a world where the focus in both research and practice in
 accounting is more and more at the 'global' level. 
Journal: European Accounting Review 
Pages: 43-75 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124734 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124734 
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Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:43-75




Template-Type: ReDIF-Article 1.0
Author-Name: David Cooper 
Author-X-Name-First: David 
Author-X-Name-Last: Cooper 
Title: The Doctoral Colloquium of the EAA and European research traditions 
Abstract:
Journal: European Accounting Review 
Pages: 77-81 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124743 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124743 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:77-81




Template-Type: ReDIF-Article 1.0
Author-Name: Gerry van Dyck 
Author-X-Name-First: Gerry 
Author-X-Name-Last: van Dyck 
Title: A true and fair view on a harmonious and well-balanced alliance: EAA and EIASM 
Abstract:
Journal: European Accounting Review 
Pages: 83-86 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124752 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124752 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:83-86




Template-Type: ReDIF-Article 1.0
Author-Name: Reino Majala 
Author-X-Name-First: Reino 
Author-X-Name-Last: Majala 
Title: EAA congresses: an overview 
Abstract:
Journal: European Accounting Review 
Pages: 87-92 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220138919 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220138919 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:87-92




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Zeff 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Zeff 
Title: The first twenty-five years of the European Accounting Association: an American view 
Abstract:
Journal: European Accounting Review 
Pages: 93-97 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220138928 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220138928 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:93-97




Template-Type: ReDIF-Article 1.0
Author-Name: Alnoor Bhimani 
Author-X-Name-First: Alnoor 
Author-X-Name-Last: Bhimani 
Title: European management accounting research: traditions in the making 
Abstract:
  A sizeable body of studies in management accounting undertaken by
 Europeans now exists. The European Accounting Review (EAR) has been a key
 outlet for the publication of such works. This paper considers whether
 European management accounting research (EMAR) published in EAR exhibits a
 diverse range of methodologies and research perspectives such as to adhere
 to the journal's initial editorial intent of providing a forum where
 researchers of all backgrounds can bring their work to a wider audience.
 The paper also assesses whether the journal has played a role in making
 possible the emergence of new European traditions of management
 accounting. The paper develops an approach to classifying management
 accounting research perspectives and categorizes EMAR published in EAR in
 this light. The analysis suggests that the journal exhibits considerable
 diversity in paradigm emphasis across areas of management accounting
 researched by Europeans. Moreover, several strands of EMAR are highlighted
 as contributing to novel avenues of enquiry within the field. 
Journal: European Accounting Review 
Pages: 99-117 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220142275 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220142275 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:99-117




Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Dumontier 
Author-X-Name-First: Pascal 
Author-X-Name-Last: Dumontier 
Author-Name: Bernard Raffournier 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Raffournier 
Title: Accounting and capital markets: a survey of the European evidence 
Abstract:
  The relationship between accounting information and capital markets has
 been the subject of numerous studies, especially in the US. The purpose of
 this article is to examine the corresponding evidence in Europe. This
 review classifies the European literature into three groups: studies of
 the market reaction to newly released accounting information; studies of
 the long-term association between stock returns and accounting numbers;
 studies devoted to the use of accounting data by investors and to the
 impact of market pressure on accounting choices. The paper reviews and
 summarizes the main results related to each of these topics. It also
 addresses some methodological issues and provides suggestions for future
 research. 
Journal: European Accounting Review 
Pages: 119-151 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124761 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124761 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:119-151




Template-Type: ReDIF-Article 1.0
Author-Name: Axel Haller 
Author-X-Name-First: Axel 
Author-X-Name-Last: Haller 
Title: Financial accounting developments in the European Union: past events and future prospects 
Abstract:
  The decision of the Commission of the European Union (EU) to oblige
 listed European companies, from 2005 onwards, to establish their
 consolidated financial statements according to IFRS (IAS) represents a
 preliminary peak in the internationalization process of financial
 accounting in Europe. The purpose of this paper is to highlight the
 landmarks of accounting developments in the EU since the Fourth and
 Seventh Directives and to reveal the obvious internationalization process
 of financial accounting in the EU, which has accelerated considerably
 during the last ten years. Owing to the considerable pressures exerted by
 market forces, a clear convergence of accounting practice as well as of
 the regulatory frameworks of the EU and its Member States with IFRS (IAS)
 is recognizable. The harmonization effects of the market forces on
 national regulators and companies appear to be much larger than those of
 the Fourth and Seventh Directives. In addition to the explanation and
 reasoning behind past developments, this paper also discusses some future
 prospects of financial reporting within the EU and identifies some of its
 major challenges. 
Journal: European Accounting Review 
Pages: 153-190 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124770 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124770 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:153-190




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: Appendix: names and places of the European Accounting Association 
Abstract:
Journal: European Accounting Review 
Pages: 191-201 
Issue: 1 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220124699 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220124699 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:1:p:191-201




Template-Type: ReDIF-Article 1.0
Author-Name: Falconer Mitchell 
Author-X-Name-First: Falconer 
Author-X-Name-Last: Mitchell 
Title: Research and practice in management accounting: improving integration and communication 
Abstract:
  This paper explores the relationship between research and practice in
 management accounting. It reviews the causes of a gap in communication
 between the researcher and practitioner constituencies and makes some
 proposals on how closure of this gap might be commenced. 
Journal: European Accounting Review 
Pages: 277-289 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180020017087 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:277-289




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Author-Name: Luca Zan 
Author-X-Name-First: Luca 
Author-X-Name-Last: Zan 
Title: Special Section: Mapping variety in the history of accounting and management practices 
Abstract:
  Research in accounting history is overwhelmingly dominated by studies
 addressing Anglo-Saxon settings of the period 1850-1940. In spite of the
 many perceptive insights arising from those investigations, such a tiny
 time-space intersection overlooks other historiographies that are equally
 important to advance understanding in accounting history. This article
 calls for mapping variety in the history of accounting and management
 practices by expanding the dimensions of time (i.e., history of the
 present but also of proto-industrial settings and ancient history) and
 space (i.e., Africa, Continental Europe, Islam, Latin-America, etc) that
 characterize present focus of accounting history research. 
Journal: European Accounting Review 
Pages: 291-304 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125526 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125526 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:291-304




Template-Type: ReDIF-Article 1.0
Author-Name: Zezhong Xiao 
Author-X-Name-First: Zezhong 
Author-X-Name-Last: Xiao 
Author-Name: Michael John Jones 
Author-X-Name-First: Michael John 
Author-X-Name-Last: Jones 
Author-Name: Andy Lymer 
Author-X-Name-First: Andy 
Author-X-Name-Last: Lymer 
Title: Immediate trends in Internet reporting 
Abstract:
  The Internet is increasingly used by companies to disseminate financial
 information. However, the extent to which the use of this new medium will
 change corporate reporting practice has received surprisingly little
 debate in the published literature. To widen the participation in the
 debate, this paper posits that the future of Internet-based financial
 reporting is contingent on technological and non-technological factors.
 This proposition is evaluated using the opinions of the immediate trends
 in online reporting obtained from seventeen UK experts in accounting
 and/or the Internet who responded to an open-ended questionnaire. These
 experts were drawn from academics, auditors, regulators, reporting
 companies and users of corporate reports. While the experts concur on some
 issues, they provide a range of different views in other areas. Some views
 are technology-driven, whereas others pay more attention to
 non-technological factors such as resistance to technological change,
 users' reluctance to read financial reports and the slow reaction of
 regulators. Some experts foresee minimum changes in financial reporting
 over the short term, while others adopt a more progressive or even radical
 perspective. This paper has synthesized these views into nine major
 categories which provide information on the role of the Internet in
 financial reporting. The results have important implications for all
 parties involved in financial reporting and also indicate avenues for
 further research. 
Journal: European Accounting Review 
Pages: 245-275 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180020017087a 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180020017087a 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:245-275




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Donoso Anes 
Author-X-Name-First: Rafael Donoso 
Author-X-Name-Last: Anes 
Title: Accounting and slavery: the accounts of the English South Sea Company, 1713-22 
Abstract:
  The Asiento was an agreement between the Crowns of England and Spain of
 tremendous economic and political consequences. In spite of its
 importance, very little is known about the accounting practices of the
 Asiento. This paper demonstrates that the developments of the Asiento were
 very much linked to the lack of accountability of the South Sea Company
 (SSC) before the Spanish Crown and describes the characteristics of the
 accounting system used by the SSC to provide information on its developed
 economic activity. It also discusses the role of accounting in the
 resolution of conflicts between the tenants of the Asiento, the SSC and
 its Spanish counterparts. 
Journal: European Accounting Review 
Pages: 441-452 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125571 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125571 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:441-452




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Berland 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Berland 
Author-Name: Trevor Boyns 
Author-X-Name-First: Trevor 
Author-X-Name-Last: Boyns 
Title: The development of budgetary control in France and Britain from the 1920s to the 1960s: a comparison 
Abstract:
  During the first sixty years or so of the twentieth century, a number of
 accounting techniques were developed for use in the management of
 business. One of those new techniques was budgetary control. This paper
 examines the dissemination and diffusion of budgetary control in France
 and Britain between the 1920s and the 1960s, outlining the similarities
 and differences in the experiences of the two countries, and examining
 some of those factors that influenced them. The paper concludes with some
 proposals for a programme for future research in (international)
 accounting change. 
Journal: European Accounting Review 
Pages: 329-356 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125544 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:329-356




Template-Type: ReDIF-Article 1.0
Author-Name: Lee Parker 
Author-X-Name-First: Lee 
Author-X-Name-Last: Parker 
Title: Twentieth-century textbook budgetary discourse: formalization, normalization and rebuttal in an Anglo-Saxon environment 
Abstract:
  The 1930s and 1940s witnessed a burgeoning in the development of the
 management and accounting textbook literature on budgeting in
 corporations. This study examines this period's text writers' efforts to
 define the dimensions and purposes of budgeting, and their expositions of
 its advantages, limitations and implementation approaches. Comparison of
 the style and scope of their articulations with those of text writers in
 the final decade of the century, reveal both unique and recurring features
 of their discourse. A Habermasian-based reflection on these historical
 observations identifies the text as a mutable but potentially active
 budgetary system steering medium that has exhibited both rebuttal and
 colonizing tendencies. 
Journal: European Accounting Review 
Pages: 305-327 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125535 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125535 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:305-327




Template-Type: ReDIF-Article 1.0
Author-Name: Jurgen Kahler 
Author-X-Name-First: Jurgen 
Author-X-Name-Last: Kahler 
Author-Name: Adrian Sargeant 
Author-X-Name-First: Adrian 
Author-X-Name-Last: Sargeant 
Title: The size effect in the administration costs of charities 
Abstract:
  There has been considerable interest of late in the issue of the
 efficiency of voluntary organizations with authors such as Wise (1997) and
 Hyndman and McKillop (1999) noting appreciable economies of scale across
 the size categories investigated. In this article we develop this
 analysis, fitting different functional forms to the relationship between
 size and the ratio of administration costs to total expenditures (ACE). We
 show that an inverse function provides a simple, plausible and adequate
 representation of this relationship. We apply the estimated inverse
 function to derive a size-adjusted benchmark for the comparison of ACE
 ratios between charities. This adjusted benchmark can replace the
 traditional practice of comparing administration cost ratios to the sector
 average when assessing managerial efficiency. 
Journal: European Accounting Review 
Pages: 215-243 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000006870 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000006870 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:215-243




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Macve 
Author-X-Name-First: Richard 
Author-X-Name-Last: Macve 
Title: Insights to be gained from the study of ancient accounting history: some reflections on the new edition of Finley's The Ancient Economy 
Abstract:
  Accounting historians have attempted to relate their knowledge of the
 variety of accounting practices at various points of time, and in various
 places, to wider questions of the role of accounting in reflecting and
 shaping not only business and management practice, but also economic and
 social organization more generally. Finley's classic The Ancient Economy,
 which analysed the embeddedness of ancient economic activity in the social
 structure, and in the status concerns of the free citizens, as
 constituting a brake on the development of profit-focused markets and
 correspondingly on technology and trade, saw the state of ancient
 accounting as itself making impossible sophisticated profit-oriented
 calculation and rational decision-making. In his monumental The Class
 Struggle in the Ancient Greek World, de Ste. Croix rejected Finley's
 analysis in terms of Weberian 'status' in favour of an explicitly Marxist
 analysis based on 'class'. But he took up essentially the same argument
 about the economic impact of ancient accounting technique. Their argument
 in turn raises further questions about the general relationship between
 accounting practice and economic and social organization in the ancient
 world. This paper comments on Finley and briefly surveys the contribution
 to answering some of the 'big' questions concerning both accounting and
 history that has been made by recent research into ancient accounting
 history (most of which has been published outside the accounting and
 accounting history journals). 
Journal: European Accounting Review 
Pages: 453-472 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:453-472




Template-Type: ReDIF-Article 1.0
Author-Name: Marcia Annisette 
Author-X-Name-First: Marcia 
Author-X-Name-Last: Annisette 
Author-Name: Marta Macias 
Author-X-Name-First: Marta 
Author-X-Name-Last: Macias 
Title: The Bank of the State and the state of the Bank: Annual Accounts of the Banco de Espana, 1872-94 
Abstract:
  This paper examines the disclosure practices in the Annual Reports of the
 Banco de Espana spanning the period 1872 to 1894. Although established as
 a privately owned bank, the Banco de Espana developed a close and
 increasingly symbiotic relationship with the Spanish State during the
 nineteenth century. This relationship was further strengthened in 1874
 when the State conferred upon the Bank the exclusive right to issue bank
 notes for use throughout the country. With this privilege, the
 relationship between the Bank and the State was sealed. The paper argues
 that it was more this relationship rather than factors associated with it
 size, nature of operations or the nature of its competitive environment
 that influenced the disclosure practices of the Bank. 
Journal: European Accounting Review 
Pages: 357-376 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:357-376




Template-Type: ReDIF-Article 1.0
Author-Name: S. McCartney 
Author-X-Name-First: S. 
Author-X-Name-Last: McCartney 
Author-Name: A. J. Arnold 
Author-X-Name-First: A. J. 
Author-X-Name-Last: Arnold 
Title: Financial reporting in the context of crisis: reconsidering the impact of the 'mania' on early railway accounting 
Abstract:
  The patterns of change in the financial reporting practices of the early
 railway companies, and their causes, are important aspects of the
 evolution of accounting practice more generally. They have accordingly
 been widely discussed in the literature, although the views expressed have
 rarely been supported by reference to any very substantial or
 systematically derived bodies of empirical evidence. One of the most
 interesting and important suggestions in this literature is the claim that
 the early UK railway companies voluntarily made both quantitative and
 qualitative changes to their published accounting statements, in response
 to a crisis in shareholder confidence in the second half of the 1840s,
 consequent upon the collapse of the railway mania of 1845-47. The
 quantitative response involved the disclosure of far more information and
 the qualitative led to changes in the conceptual basis of reporting, from
 a cash to an accruals basis, changes that met with the satisfaction of the
 shareholders concerned and were important parts of the gradual evolution
 of financial reporting. The paper undertakes a systematic analysis of the
 financial accounting practices of the major early railway companies from
 1840 until 1855. The mapping of the variety of such practices, and their
 changes over time, enable a re-examination of these important claims
 concerning the nature of the financial reporting response to one of its
 earliest crises. 
Journal: European Accounting Review 
Pages: 401-417 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220145687 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220145687 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:401-417




Template-Type: ReDIF-Article 1.0
Author-Name: Concha Alvarez-Dardet Espejo 
Author-X-Name-First: Concha Alvarez-Dardet 
Author-X-Name-Last: Espejo 
Author-Name: Juan Banos Sanchez-Matamoros 
Author-X-Name-First: Juan Banos 
Author-X-Name-Last: Sanchez-Matamoros 
Author-Name: Francisco Carrasco Fenech 
Author-X-Name-First: Francisco Carrasco 
Author-X-Name-Last: Fenech 
Title: Accounting and control in the founding of the New Settlements of Sierra Morena and Andalucia, 1767-72 
Abstract:
  Recently, a growing literature in accounting history has provided
 sociological interpretations of historical facts in which accounting was
 involved. Foucault's governmentality concept has contributed to such
 analysis, specifically in 19th and 20th century's cases. However, the
 analysis of 18th century and, specially, colonial organizations has not
 been made yet. Thus, this work is devoted to analyse how accounting is
 implicated in the control of a Spanish colonial project. The relationships
 between accounting and the enlightened discourses that improved the
 colonies are clear. Conversely, the role of the resistance in this case
 allows questioning the refereed accounting literature in governmentality. 
Journal: European Accounting Review 
Pages: 419-439 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220145678 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220145678 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:419-439




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 213-213 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/096368180220000021440 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/096368180220000021440 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:213-213




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Walker 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Walker 
Title: 'Men of small standing'? Locating accountants in English society during the mid-nineteenth century 
Abstract:
  The census enumerators' books for three counties in 1851 are utilized to
 explore the social standing of accountants in early-Victorian England. The
 objective is to illuminate sources of differential status within the
 occupation of accountancy and thereby enhance understandings of the
 problems of boundary definition and closure which confronted those who
 organized the profession in England from 1870. It is shown that
 accountants occupied various strata in local social structures, from the
 professional class to the pauper. Accountants were, however, predominantly
 positioned on the margins of the middle class and very few of their number
 exhibited styles of living which contemporaries identified as
 characteristic of professional men. The findings confirm that the term
 'accountant' encompassed a wide range of occupational experiences and
 employment statuses and its meaning appears to have been subject to
 spatial variation. 
Journal: European Accounting Review 
Pages: 377-399 
Issue: 2 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125562 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:2:p:377-399




Template-Type: ReDIF-Article 1.0
Author-Name: Trond Bj&#xf8;rnenak 
Author-X-Name-First: Trond 
Author-X-Name-Last: Bj&#xf8;rnenak 
Author-Name: Falconer Mitchell 
Author-X-Name-First: Falconer 
Author-X-Name-Last: Mitchell 
Title: The development of activity-based costing journal literature, 1987-2000 
Abstract:
  This paper contains an analysis of the activity-based costing (ABC)
 literature which has been accumulated in the UK and USA accounting
 journals over the fourteen-year period since the first articles on ABC
 emerged. This evidence is used both longitudinally and cross-sectionally
 to gain insights into how ABC started, how it has been communicated, how
 it has been researched, how it is constituted, how it has generated
 attention and how it has developed and changed. From the analysis
 conclusions are drawn on these issues and on the role of academic research
 when confronted by a new practical innovation of this type. 
Journal: European Accounting Review 
Pages: 481-508 
Issue: 3 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000001019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001019 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:3:p:481-508




Template-Type: ReDIF-Article 1.0
Author-Name: Ch. Spathis 
Author-X-Name-First: Ch. 
Author-X-Name-Last: Spathis 
Author-Name: M. Doumpos 
Author-X-Name-First: M. 
Author-X-Name-Last: Doumpos 
Author-Name: C. Zopounidis 
Author-X-Name-First: C. 
Author-X-Name-Last: Zopounidis 
Title: Detecting falsified financial statements: a comparative study using multicriteria analysis and multivariate statistical techniques 
Abstract:
  Falsifying financial statements involves the manipulation of financial
 accounts by overstating assets, sales and profit, or understating
 liabilities, expenses or losses. This paper explores the effectiveness of
 an innovative classification methodology in detecting firms that issue
 falsified financial statements (FFS) and the identification of the factors
 associated to FFS. The methodology is based on the concepts of
 multicriteria decision aid (MCDA) and the application of the UTADIS
 classification method (UTilites Additives DIScriminantes). A sample of 76
 Greek firms (38 with FFS and 38 non-FFS) described over ten financial
 ratios is used for detecting factors associated with FFS. A jackknife
 procedure approach is employed for model validation and comparison with
 multivariate statistical techniques, namely discriminant and logit
 analysis. The results indicate that the proposed MCDA methodology
 outperforms traditional statistical techniques which are widely used for
 FFS detection purposes. Furthermore, the results indicate that the
 investigation of financial information can be helpful towards the
 identification of FFS and highlight the importance of financial ratios
 such as the total debt to total assets ratio, the inventories to sales
 ratio, the net profit to sales ratio and the sales to total assets ratio. 
Journal: European Accounting Review 
Pages: 509-535 
Issue: 3 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000000966 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000000966 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:11:y:2002:i:3:p:509-535




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Riceman 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Riceman 
Author-Name: Steven Cahan 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cahan 
Author-Name: Mohan Lal 
Author-X-Name-First: Mohan 
Author-X-Name-Last: Lal 
Title: Do managers perform better under EVA bonus schemes? 
Abstract:
  Economic Value Added (EVA) is a performance measure that is being used by
 an increasing number of companies, but academic research on EVA is
 limited. In addition, all prior empirical academic studies on EVA have
 used the firm as the unit of analysis. In this study, we examine the
 effect of EVA on the performance of individual managers. Specifically, we
 examine whether managers on EVA-based bonus plans outperform managers on
 traditional accounting-based bonus plans. We are able to test this because
 we have access to an EVA-focused company that has managers on both EVA and
 traditional bonus plans. Our results suggest that managers on EVA bonus
 plans who understand the EVA concept perform better than managers on
 traditional bonus plans. However, we find some evidence that the increase
 in performance results from increased consistency or congruence in the
 manager's evaluation-reward process rather than from superiority of EVA as
 a performance measure. Also, we find that the effect of EVA bonuses and
 EVA understanding differs depending on the area of the firm in which the
 manager is employed. This suggests that EVA may not be a universally
 appropriate base for reward systems. *Mohan Lal passed away 24 July 2002.
 This paper is dedicated to him. 
Journal: European Accounting Review 
Pages: 537-572 
Issue: 3 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000000984 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000000984 
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Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Arce 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Arce 
Author-Name: Araceli Mora 
Author-X-Name-First: Araceli 
Author-X-Name-Last: Mora 
Title: Empirical evidence of the effect of European accounting differences on the stock market valuation of earnings and book value 
Abstract:
  Recently, a new dimension has been added to research in accounting
 harmonization by studying the effects of accounting practices and
 regulations on share price and return movements. Although there is an
 agreement of mutual recognition in the European stock markets of financial
 statements adapted to the directives, the differences between the European
 countries are still great. The objective of this study is to investigate
 the value relevance of alternative accounting measures (earnings and book
 value) constructed under different accounting systems in Europe. We
 investigate the differences in accounting practices through the
 relationship between earnings and book value, and the stock market value
 of the firm. The aim of the study is to answer the following three
 questions: (1) Are there systematic differences in value relevance between
 earnings and book value across the different European accounting systems?
 (2) Do book value and earnings convey different information to stock
 valuation? (3) Are accounting numbers more value relevant in those
 countries traditionally orientated to market investors? The sample
 consists of listed firms from eight European countries (Belgium, France,
 Germany, Italy, The Netherlands, Switzerland, Spain and the UK). The
 results obtained could be helpful for the decisions of institutional
 regulatory bodies since we find evidence of significant differences in the
 stock market valuation of accounting data not explained by the composition
 of the sample or macroeconomic factors, but mainly by the differences in
 reporting philosophies across Europe. 
Journal: European Accounting Review 
Pages: 573-599 
Issue: 3 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125616 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125616 
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Handle: RePEc:taf:euract:v:11:y:2002:i:3:p:573-599




Template-Type: ReDIF-Article 1.0
Author-Name: Jon Simon 
Author-X-Name-First: Jon 
Author-X-Name-Last: Simon 
Title: Interpretation of probability expressions by financial directors and auditors of UK companies 
Abstract:
  Probability expressions, such as 'remote', 'possible', 'probable' and
 'virtually certain', have been used extensively in accounting. However,
 little is known about how these expressions are interpreted. It is
 important to understand how these expressions are interpreted by preparers
 of financial statements as significant inconsistencies will reduce the
 comparability between companies' financial statements. This paper reports
 the results of a survey of financial directors of large UK listed
 companies and UK auditors concerning the interpretation and the
 communication efficiency of thirty frequently used probability
 expressions. This paper fills two gaps in the literature. First, it
 surveys attitudes to probability expressions in the UK of two important
 groups of individuals involved in the financial reporting system and,
 second, it explicitly measures the 'communication efficiency' of these
 expressions. The results show that while many probability expressions were
 seen to have similar meaning and have a high degree of communication
 efficiency, several had low communication efficiency. Policy implications
 involve a reassessment of the use of probability expressions with low
 communication efficiency, and the adoption of well-understood probability
 expressions with high communication efficiency. 
Journal: European Accounting Review 
Pages: 601-629 
Issue: 3 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125599 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125599 
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Handle: RePEc:taf:euract:v:11:y:2002:i:3:p:601-629




Template-Type: ReDIF-Article 1.0
Author-Name: Sven Modell 
Author-X-Name-First: Sven 
Author-X-Name-Last: Modell 
Title: Institutional perspectives on cost allocations: integration and extension 
Abstract:
  The debate on cost allocations in the management accounting literature
 has been dominated by a largely rationalistic perspective primarily
 informed by economic theories. However, there is growing evidence of
 institutional factors influencing cost allocation practices in
 organizations. This paper draws on neo-institutional sociology (NIS) and
 attempts to integrate prior research evidence of the institutional
 influence on cost allocation practices into an analytical framework. The
 core of our argument hinges on the observation that most cost allocations
 generate some degree of ambiguity. We argue that the implementation of
 various cost allocation techniques (in terms of their coupling to
 operating control) reflects differences in management of such ambiguity,
 but that this is conditioned by the patterns in which cost allocation
 techniques diffuse across organizations. We also address some pertinent
 criticisms of the NIS literature by discussing how certain
 intra-organizational factors and aspects of the organization's technical
 environment might interact with external institutional pressures in the
 implementation of cost allocation techniques. We advance six research
 propositions reflecting how such external institutional pressures and
 interaction effects influence the coupling of cost allocation practices to
 operating control. 
Journal: European Accounting Review 
Pages: 653-679 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000000993 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000000993 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:653-679




Template-Type: ReDIF-Article 1.0
Author-Name: Anil Arya 
Author-X-Name-First: Anil 
Author-X-Name-Last: Arya 
Author-Name: John Fellingham 
Author-X-Name-First: John 
Author-X-Name-Last: Fellingham 
Author-Name: Doug Schroeder 
Author-X-Name-First: Doug 
Author-X-Name-Last: Schroeder 
Author-Name: Jonathan Glover 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Glover 
Title: Depreciation in a model of probabilistic investment 
Abstract:
  A pervasive theme in both accounting and statistics is aggregation.
 However, in contrast to statistics, a customary standard for determining
 the best aggregation rule in accounting is unavailable or, at least, not
 explicitly defined. Also, most accounting procedures follow a
 well-specified recursive algorithm of updating a summarized history number
 (a beginning balance sheet number) by the current period's activities
 (changes). In this paper, we present a setting in which the best
 accounting aggregation rule arises naturally, resembles observed
 depreciation schedules, and proceeds recursively in a manner analogous to
 the above outlined stock-flow updating process. Our main results are (1)
 in every period, the performance of the BLU estimate based on active
 investments can be replicated by the period's depreciation amount and (2)
 in every period, the performance of the BLU estimate based on the entire
 history of investments can be replicated by a recursive procedure that
 updates the BLU estimate of the previous period with the current perioda's
 investment realization. Depreciation successfully satisfies multiple
 objectives - it serves as a periodic allocation of realized investment
 amounts and as a statistic for the unknown investment population mean.
 Depreciation schedules commonly used in practice, straight-line,
 accelerated and declining balance, are shown to be best in particular
 settings. 
Journal: European Accounting Review 
Pages: 681-697 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/09638180220125607 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180220125607 
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:681-697




Template-Type: ReDIF-Article 1.0
Author-Name: George Georgiou 
Author-X-Name-First: George 
Author-X-Name-Last: Georgiou 
Title: Corporate non-participation in the ASB standard-setting process 
Abstract:
  The standard-setting process of the UK's Accounting Standards Board (ASB)
 can be examined from different theoretical frameworks. One considers it a
 political process where interested parties choose to lobby on the basis of
 lobbying costs and benefits accrued from successful lobbying. The
 examination of the motives of various parties to lobby or not is
 considered important for understanding the process. Another framework
 assumes a non-pluralistic process, dominated by a few powerful groups to
 the detriment of the interests of other groups which are effectively
 excluded from the process. Drawing from the first framework, this study
 examines the factors which influenced the choice of a sample of UK listed
 companies not to make a submission on the ASB's discussion paper proposals
 on deferred tax. A perception that their participation would not make a
 difference to the outcome of the process and reliance on their external
 auditors to represent their position were found to be the most important
 factors for not making a submission. In contrast, no support was found for
 the suggestion that agreement with the proposals is more likely to prompt
 a non-response than disagreement with the proposals. 
Journal: European Accounting Review 
Pages: 699-722 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000001028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001028 
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:699-722




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Larrinaga 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Larrinaga 
Author-Name: Francisco Carrasco 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Carrasco 
Author-Name: Carmen Correa 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Correa 
Author-Name: Fernando Llena 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Llena 
Author-Name: Jose Moneva 
Author-X-Name-First: Jose 
Author-X-Name-Last: Moneva 
Title: Accountability and accounting regulation: the case of the Spanish environmental disclosure standard 
Abstract:
  Mandatory environmental reporting has been seen as a way of increasing
 accountability of organizations, regarding environmental issues. This
 paper is concerned with one standard, which requires all the Spanish
 companies to include environmental disclosures in their financial
 statements. From the survey of the rationale of the disclosure
 requirements we suggest that more sound environmental initiatives are
 obscured by an end-of-pipe emphasis. Additionally, from the research of
 the reporting activity of a sample of companies a low compliance level
 results, with roughly 80% of companies not providing any environmental
 information. In addition, those companies who are reporting some
 environmental information neglect those aspects of the regulation that are
 not in their interests to report. The interpretation of these findings,
 using the theoretical distinction between administrative and institutional
 reforms, leads us to conclude that the Spanish standard on environmental
 disclosure is insufficient to enable new accountability relationships and
 to empower stakeholders. 
Journal: European Accounting Review 
Pages: 723-740 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000001000 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001000 
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:723-740




Template-Type: ReDIF-Article 1.0
Author-Name: Luzi Hail 
Author-X-Name-First: Luzi 
Author-X-Name-Last: Hail 
Title: The impact of voluntary corporate disclosures on the ex-ante cost of capital for Swiss firms 
Abstract:
  The relationship between disclosure quality and cost of equity capital is
 an important topic in today's economy. In general, economic theory and
 anecdotal evidence suggest a negative association. Empirical work on this
 link, however, is confronted with major methodological drawbacks - neither
 disclosure level nor cost of capital can be observed directly - and has
 documented somewhat confounding results so far. Adopting a finite horizon
 version of the residual income model, I provide evidence on the nature of
 the above relationship and try to quantify the effect of a firm's
 voluntary disclosure policy on its implied cost of capital. Switzerland
 seems especially suited for an analysis of this kind given that Swiss
 firms have considerable reporting discretion and the mandated level of
 disclosure is low. For a cross-sectional sample of seventy-three
 non-financial companies I show a negative and highly significant
 association between the two variables. The magnitude is such that the most
 forthcoming firms enjoy about a 1.8 to 2.4% cost advantage over the least
 forthcoming firms. The findings persist even after controlling for other
 potentially influential variables, e.g. risk characteristics and firm
 size. Furthermore, adjusting for self-selection bias - a major concern in
 disclosure studies - the marginal effect remains of the same direction and
 even increases in magnitude, although at lower levels of statistical
 significance. One reason for the strong relationship might be found in
 differing institutional factors between the US and Swiss capital markets. 
Journal: European Accounting Review 
Pages: 741-773 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000001109 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001109 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Debate Forum on Zimmerman's conjectures on management accounting research 
Abstract:
Journal: European Accounting Review 
Pages: 775-775 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000047064 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000047064 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:775-775




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Hopwood 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Hopwood 
Title: 'If only there were simple solutions, but there aren't': some reflections on Zimmerman's critique of empirical management accounting research 
Abstract:
  Although having some sympathies with Zimmerman's critique of Ittner and
 Larcker's review of the empirical management accounting research
 literature, this analysis points out how Zimmerman has too easily allowed
 his own prejudices to influence both his assessment of the empirical
 management accounting literature and his recommendations for improvement.
 Particular emphasis is put on analysing Zimmerman's classification of the
 accounting research literature and his unproblematic optimism in the
 potential of economic modes of understanding. 
Journal: European Accounting Review 
Pages: 777-785 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000047073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000047073 
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:777-785




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Ittner 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Ittner 
Author-Name: David Larcker 
Author-X-Name-First: David 
Author-X-Name-Last: Larcker 
Title: Empirical managerial accounting research: are we just describing management consulting practice? 
Abstract:
  This short commentary responds to several issues raised in Zimmerman
 (2001). We address Zimmerman's criticisms that managerial accounting
 studies are purely descriptive, conducted without an underlying theory,
 and unguided by research hypotheses. We also discuss our views regarding
 the importance of practice-oriented research for understanding managerial
 accounting choices and for testing economic and non-economic theories.
 Finally, we highlight some of the new directions in the finance
 literature, and their relevance for managerial accounting research. 
Journal: European Accounting Review 
Pages: 787-794 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000047082 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000047082 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:787-794




Template-Type: ReDIF-Article 1.0
Author-Name: Joan Luft 
Author-X-Name-First: Joan 
Author-X-Name-Last: Luft 
Author-Name: Michael Shields 
Author-X-Name-First: Michael 
Author-X-Name-Last: Shields 
Title: Zimmerman's contentious conjectures: describing the present and prescribing the future of empirical management accounting research 
Abstract:
  We provide a discussion of three of Zimmerman's (2001) conjectures about,
 and prescriptions for improving, the current unsatisfactory state of
 empirical management accounting research: its focus on describing practice
 instead of testing theories; its focus on decision-making instead of
 control; and reliance on social sciences other than economics. We suggest
 that these conjectures are based on inaccurate descriptions of current
 empirical management accounting research and the prescriptions offer
 potentially misleading guidance for future research. In contrast to
 Zimmerman (2001), we believe that the current research is guided by theory
 from a variety of social sciences (primarily economics, psychology and
 sociology) and that this diversity is appropriate for the applied field of
 management accounting. We argue that while economics provides a good basis
 for much empirical research in management accounting, other social
 sciences offer more potential to explain important features of management
 accounting such as understanding people's preferences, how they think, how
 they interact with other people and the process of change. Our conclusion
 is that empirical management accounting research will be better off if it
 appeals less to disciplinary identity and instead uses a variety of
 theoretical frameworks from the social sciences to provide more complete
 explanations of management accounting practice. 
Journal: European Accounting Review 
Pages: 795-803 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000047091 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000047091 
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:795-803




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Author-Name: Jan Mouritsen 
Author-X-Name-First: Jan 
Author-X-Name-Last: Mouritsen 
Title: Homogeneity or heterogeneity of research in management accounting? 
Abstract:
  Viewing Zimmerman (2001) as propagating for an economics-based monolithic
 paradigm to be adopted in management accounting research, we examine the
 nature and implications of such Kuhnian 'normal science'. Acknowledging
 that normal science can produce cumulative knowledge efficiently, we
 examine its risks as well. Similarly as with any normal science, that
 based on economics also inherently offers a narrow window to the world,
 and creates areas of 'non-discussables'. We illustrate how such a regime
 would limit our abilities to construct and examine interesting
 propositions and develop meaningful stories about management accounting in
 its social, organizational and behavioural contexts. Accepting the rule of
 a monolithic economics-based paradigm would limit our abilities to develop
 a critical stance, and threatens the ability of management accounting
 research community for good scientific conversation and progress. Hence,
 in contrast to Zimmerman, we argue for remaining open for heterogeneity in
 management accounting research. 
Journal: European Accounting Review 
Pages: 805-811 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000047109 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000047109 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:805-811




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Walker 
Author-X-Name-First: Martin 
Author-X-Name-Last: Walker 
Title: Book reviews 
Abstract:
Journal: European Accounting Review 
Pages: 813-833 
Issue: 4 
Volume: 11 
Year: 2002 
X-DOI: 10.1080/0963818022000000975 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000000975 
File-Format: text/html
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Handle: RePEc:taf:euract:v:11:y:2002:i:4:p:813-833




Template-Type: ReDIF-Article 1.0
Author-Name: Sudhir Lodh 
Author-X-Name-First: Sudhir 
Author-X-Name-Last: Lodh 
Author-Name: Michael Gaffikin 
Author-X-Name-First: Michael 
Author-X-Name-Last: Gaffikin 
Title: Implementation of an integrated accounting and cost management system using the SAP system: a field study 
Abstract:
  Not only are in-depth (theoretically informed) longitudinal (reflexive)
 field studies few and far between, it has been argued in those studies
 that little is known about the design and implementation of accounting and
 information systems that operate in today's world-class organizations.
 Using such an approach this study seeks to illustrate and analyse the
 implementation processes of an integrated accounting and cost management
 system using the SAP system at a major steel producer in Australia. It is
 demonstrated that the technical design of the system is only a part of the
 implementation process. Keeping 'actor-networks' in line and managing
 change including behavioural implications on the implementation are also
 seen as crucial issues, which are outcomes of a continuous translation
 process. 
Journal: European Accounting Review 
Pages: 85-121 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087899 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087899 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:85-121




Template-Type: ReDIF-Article 1.0
Author-Name: Timo Hyvonen 
Author-X-Name-First: Timo 
Author-X-Name-Last: Hyvonen 
Title: MANAGEMENT ACCOUNTING AND INFORMATION SYSTEMS: ERP VERSUS BOB 
Abstract:
  The purpose of this study is to compare the use of enterprise resource
 planning (ERP) and best of breed (BoB) standalone systems in practice. The
 data for the study were collected through a postal questionnaire in 300
 large and middle-sized industrial units in Finland. The questionnaire
 addressed questions concerning IS implementation (why, how and by whom the
 IS project was introduced), management accounting function, and the use of
 advanced management accounting techniques. The results obtained indicate
 that financial departments have been more interested in traditional BoB
 systems, while other departments have concentrated more on ERP solutions.
 Further, as the articulated motives behind the IS project were strategic,
 and moreover technical in nature, the solution in most cases was ERP,
 while in the cases where motives were either strategic or technical, the
 choice was BoB. Otherwise, there were no statistically significant
 differences between the groups of BoB or ERP adopters, and the problems
 perceived in management accounting or the adoption of advanced management
 accounting techniques (e.g. ABC, ABM and BSC). 
Journal: European Accounting Review 
Pages: 155-173 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087862 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087862 
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:155-173




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Scapens 
Author-X-Name-First: Robert 
Author-X-Name-Last: Scapens 
Author-Name: Mostafa Jazayeri 
Author-X-Name-First: Mostafa 
Author-X-Name-Last: Jazayeri 
Title: ERP systems and management accounting change: opportunities or impacts? A research note 
Abstract:
  Enterprise resource planning (ERP) systems, such as SAP, have become
 widely used in recent years, especially in large companies. Although a
 considerable amount has been written about them in the professional
 accounting and computing literature, somewhat surprisingly comparatively
 little attention has been given to them in accounting research journals.
 However, the field studies which are beginning to appear suggest that ERP
 systems are having only a relatively moderate impact on the character of
 management accounting and the work of management accountants. However, it
 is argued in this paper that as such studies adopt a relatively 'static'
 approach, they do not explore the processes of management accounting
 change or study how opportunities are opened up by the implementation of
 ERP systems. The paper reports a longitudinal case study of the
 implementation of SAP in the European division of a large US
 multinational, in which management accounting change is viewed as an
 evolutionary process. In this case, although there were no fundamental
 changes in the nature of the management accounting information used
 following the implementation of SAP, there were changes in the role of
 management accountants - in particular: (i) the elimination of routine
 jobs; (ii) line managers with accounting knowledge; (iii) more
 forward-looking information; and (iv) a wider role for the management
 accountants. However, it is not claimed that SAP was the driver of these
 changes; rather it is argued that the characteristics of SAP
 (specifically, its integration, standardization, routinization and
 centralization) opened up certain opportunities and facilitated changes
 which were already taking place within the company. The paper ends with a
 call for further longitudinal case studies of the implementation of ERP
 systems to study how these characteristics facilitate and reinforce
 processes of management accounting change in other companies. 
Journal: European Accounting Review 
Pages: 201-233 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087907 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087907 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:201-233




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Trombetta 
Author-X-Name-First: Marco 
Author-X-Name-Last: Trombetta 
Title: International regulation of audit quality: full harmonization or mutual recognition? An economic approach 
Abstract:
  The market for audit services is modelled as a market with vertical
 product differentiation, rigid demand, third-party externalities and a
 liability rule. This framework is used to choose between full
 harmonization and mutual recognition as possible international regulatory
 regimes for audit quality. It is shown that if third-party externalities
 are zero, then full harmonization is at least as good as mutual
 recognition. If, however, externalities are not zero, then mutual
 recognition can yield a higher level of social welfare than full
 harmonization. These results are relevant for the debate on the
 international regulation of the provision of audit services, especially
 within the EU, and show that full harmonization is not necessarily the
 best option. 
Journal: European Accounting Review 
Pages: 3-27 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818022000001073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001073 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:3-27




Template-Type: ReDIF-Article 1.0
Author-Name: Markus Granlund 
Author-X-Name-First: Markus 
Author-X-Name-Last: Granlund 
Author-Name: Jan Mouritsen 
Author-X-Name-First: Jan 
Author-X-Name-Last: Mouritsen 
Title: Special section on management control and new information technologies 
Abstract:
Journal: European Accounting Review 
Pages: 77-83 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087925 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087925 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:77-83




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Chwolka 
Author-X-Name-First: Anne 
Author-X-Name-Last: Chwolka 
Author-Name: Dirk Simons 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Simons 
Title: Impacts of revenue sharing, profit sharing and transfer pricing on quality-improving investments 
Abstract:
  We compare revenue sharing with different profit-sharing rules and
 constant transfer prices in a buyer-seller setting, in which the
 incompleteness of contracts causes decentralization costs. Our focus is on
 a situation where a manufacturing department or a supplier of an
 intermediate product can invest in a quality improvement of the final
 product and thereby increase customer demand. We analyze the willingness
 of the supplier to invest under a revenue-sharing rule, three
 profit-sharing rules and a transfer-pricing scheme. Our analysis shows
 that the performance of sharing rules is likely to decrease when the
 sharing basis consists of fewer cost components. Remarkably, this is not
 true for the revenue-sharing rule. To the contrary, this less prominent
 scheme can be shown to maximize total profit under a variety of cost
 combinations. 
Journal: European Accounting Review 
Pages: 47-76 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818022000001136 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001136 
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:47-76




Template-Type: ReDIF-Article 1.0
Author-Name: Ervin Black 
Author-X-Name-First: Ervin 
Author-X-Name-Last: Black 
Author-Name: John White 
Author-X-Name-First: John 
Author-X-Name-Last: White 
Title: An international comparison of income statement and balance sheet information: Germany, Japan and the US 
Abstract:
  As accounting regulators develop international standards, it is helpful
 for them to understand the use of financial statements by investors in
 different countries. In this study we compare the value relevance of
 earnings relative to book value of equity in Germany, Japan and the US
 owing to the size of their capital markets and differences in accounting
 systems and institutional structures. Accounting in Germany and Japan is
 conservative, creditor-oriented and tax-based, with institutional
 structures that rely on bank financing and close relationships between
 capital providers and investee firms, while the US is used as a basis for
 comparison. This study hypothesizes that book values are more value
 relevant than earnings in Germany and Japan while earnings are more value
 relevant in the US, because capital providers in Germany and Japan are
 more concerned with balance sheet measures such as liquidity. Also,
 accounting characteristics such as conservatism and tax conformity may
 lead to greater value relevance of the balance sheet compared to the
 income statement in those countries. Our results provide evidence that
 book value of equity is more value-relevant than earnings, particularly in
 Germany, with mixed results for Japan. In the US, positive earnings are
 more value relevant than book value of equity, but not negative earnings.
 In summary, we provide evidence concerning the relative value relevance of
 summary measures of the balance sheet versus the income statement.
 Standard-setters can then look at potential causes for these differences
 and determine if proposed accounting standards will have a desired
 outcome. 
Journal: European Accounting Review 
Pages: 29-46 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818022000001127 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001127 
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:29-46




Template-Type: ReDIF-Article 1.0
Author-Name: Ariela Caglio 
Author-X-Name-First: Ariela 
Author-X-Name-Last: Caglio 
Title: Enterprise Resource Planning systems and accountants: towards hybridization? 
Abstract:
  This paper aims to examine how the adoption of a new Enterprise Resource
 Planning (ERP) system challenges the definition of the expertise and roles
 of accountants within organizations, leading to new, hybrid positions. By
 drawing on structuration theory, we propose to conceptualize the potential
 change in accountants' practices and positions as a structuration process,
 and ERP systems as modalities of structuration, providing new interpretive
 schemes, norms and co-ordination and control facilities, which influence
 the direction of hybridization between accountants and other professional
 groups. Since the results of this process are neither predictable a
 priori, nor generalizable, we are convinced that detailed interpretive
 case studies of ERP implementations are needed to understand their complex
 impacts on accountants. Hence, we provide one such study in order to
 explore the 'ambiguous' and often inconsistent consequences for
 accountants deriving from the adoption of an ERP system. 
Journal: European Accounting Review 
Pages: 123-153 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087853 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087853 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:123-153




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Nicolaou 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Nicolaou 
Title: Manufacturing strategy implementation and cost management systems effectiveness 
Abstract:
  The fit between manufacturing strategy and the use of cost management
 systems that could effectively support a firm's information needs in
 strategic and operational decision-making is prerequisite for a firm's
 ability to attain desired objectives in its value chain. The primary
 purpose of this study is to examine the relationship between the use of
 just-in-time and electronic data interchange systems, as an important
 dimension of a firm's manufacturing strategy, and the perceptions of top
 financial officers about the effectiveness of cost management systems in
 supporting strategic and operational decision needs. The results for the
 research hypothesis, which was examined using a sample of 604
 manufacturing organizations in the USA, provided some support for the
 argument that perceptions of effectiveness of a firm's CMS can be a valid
 indicator of how well is the CMS designed to support strategic and
 operational decision needs that are necessary for the implementation of a
 firm's manufacturing strategy. 
Journal: European Accounting Review 
Pages: 175-199 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087871 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087871 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:175-199




Template-Type: ReDIF-Article 1.0
Author-Name: Yves Bernheim 
Author-X-Name-First: Yves 
Author-X-Name-Last: Bernheim 
Title: Book reviews 
Abstract:
Journal: European Accounting Review 
Pages: 235-252 
Issue: 1 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818022000001037 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001037 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:1:p:235-252




Template-Type: ReDIF-Article 1.0
Author-Name: Rouba Chantiri 
Author-X-Name-First: Rouba 
Author-X-Name-Last: Chantiri 
Title: A Comparative Analysis of Regulatory Strategies in Accounting and their Impact on Corporate Compliance 
Abstract:
  Gabi Ebbers, Frankfurt am Main: Peter Lang, Europaischer Verlag der
 Wissenschaften, 2001, e45.50, 263pp. ISBN: 3-631-38245-6 
Journal: European Accounting Review 
Pages: 386-390 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000089427 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000089427 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:386-390




Template-Type: ReDIF-Article 1.0
Author-Name: Sten Jonsson 
Author-X-Name-First: Sten 
Author-X-Name-Last: Jonsson 
Title: Research Method and Methodology in Finance and Accounting (2nd edn) 
Abstract:
  Bob Ryan, Robert W. Scapens and Michael Theobald, London: Thomson, 2002,
 &#xa3;21.59, 240pp. ISBN: 186-1528-817 
Journal: European Accounting Review 
Pages: 390-393 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000089427c 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000089427c 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:390-393




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Review 
Abstract:
Journal: European Accounting Review 
Pages: 261-262 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000098274 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000098274 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:261-262




Template-Type: ReDIF-Article 1.0
Author-Name: Wim Van der Stede 
Author-X-Name-First: Wim 
Author-X-Name-Last: Van der Stede 
Title: The effect of national culture on management control and incentive system design in multi-business firms: evidence of intracorporate isomorphism 
Abstract:
  This paper examines whether variations in national culture at the
 business-unit level of multi-business firms that operate internationally
 trigger adjustments in the corporate management control and incentive
 systems (MCISs) to fit local business-unit circumstances. Although the
 results show that selected MCIS characteristics are attuned to
 business-unit national culture, further analysis of multi-level data
 reveal small business-unit effects relative to corporate effects. The
 presence of dominant corporate effects suggests that MCISs tend to be
 uniformly implemented within firms, rather than to reflect local
 business-unit conditions. 
Journal: European Accounting Review 
Pages: 263-285 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818022000009859 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000009859 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:263-285




Template-Type: ReDIF-Article 1.0
Author-Name: Alfred Wagenhofer 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Wagenhofer 
Title: Accrual-based compensation, depreciation and investment decisions 
Abstract:
  The paper studies the usefulness of accruals relative to cash flows for
 performance measurement in short-term contracts, if an agent undertakes
 activities with long-term and short-term consequences. It characterizes an
 optimal depreciation method for incentive purposes, and shows that it is
 not consistent with traditional depreciation methods. Rather, it aligns
 the performance measure with the expected long-term consequences of the
 investment, and shifts away compensation risk from the agent. The paper
 also identifies conditions under which accruals outperform cash flows as a
 performance measure even if the agent can manipulate the depreciation
 method. 
Journal: European Accounting Review 
Pages: 287-309 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087835 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087835 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:287-309




Template-Type: ReDIF-Article 1.0
Author-Name: Juha-Pekka Kallunki 
Author-X-Name-First: Juha-Pekka 
Author-X-Name-Last: Kallunki 
Author-Name: Minna Martikainen 
Author-X-Name-First: Minna 
Author-X-Name-Last: Martikainen 
Title: Earnings management as a predictor of future profitability of Finnish firms 
Abstract:
  This study investigates whether the level of current earnings management
 can be used to predict future profitability of Finnish firms. Earnings
 management is assumed to predict future profitability, because firms use
 discretional accruals to manage this year's earnings upwards/downwards, if
 they believe that the next year's earnings will be high/low. Finnish data
 are used because the extent of the earnings management can be directly
 measured from the published Finnish financial statements. The results
 indicate that the lagged earnings management is significantly related to
 the future profitability of a firm. The lagged earnings management also
 contains incremental information relative to past profitability or stock
 prices when predicting future profitability. 
Journal: European Accounting Review 
Pages: 311-325 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000089409 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000089409 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:311-325




Template-Type: ReDIF-Article 1.0
Author-Name: Bino Catasus 
Author-X-Name-First: Bino 
Author-X-Name-Last: Catasus 
Author-Name: Jan-Erik Grojer 
Author-X-Name-First: Jan-Erik 
Author-X-Name-Last: Grojer 
Title: Intangibles and credit decisions: results from an experiment 
Abstract:
  The question in this paper is whether the inclusion of intangibles is
 meaningful in a credit decision context. To examine this issue we
 conducted an experiment with forty loan officers. The loan officers were
 presented with a situation of a company that required a credit of 5
 million Swedish kronor. Half of the loan officers were given a traditional
 annual statement in which intangibles were treated as costs while the
 other half received a balance sheet in which brand, R&D and education were
 capitalized. The loan officers were asked to give their opinion regarding
 the credit decision and the importance of extra information. They were
 also confronted with four short cases where extra information about the
 company appeared. Statistical analysis revealed that none of three
 hypotheses relating to the statement that 'accounting for intangibles does
 not matter' could be falsified. Still, the acquired qualitative data that
 emerged from the study makes it possible to suggest another finding. The
 study shows that accounting for intangibles is accepted if the accounts
 were seen as reliable. The conclusion is that if it is possible to create
 reliable data about intangibles, accounting for intangibles is meaningful
 for credit decisions. 
Journal: European Accounting Review 
Pages: 327-355 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000089418 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000089418 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:327-355




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Gallizo 
Author-X-Name-First: Jose 
Author-X-Name-Last: Gallizo 
Author-Name: Fernando Jimenez 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Jimenez 
Author-Name: Manuel Salvador 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Salvador 
Title: Evaluating the effects of financial ratio adjustment in European financial statements 
Abstract:
  This paper is devoted to an analysis of financial ratio adjustment in
 European financial statements. To that end, we use an hierarchical model
 based on the partial adjustment model. This model allows us to distinguish
 between adjustments that are due to external shocks and which affect all
 countries, on the one hand, and those resulting from internal shocks which
 affect the relative position of one country with respect to the rest, on
 the other. In addition to estimating the average adjustment coefficients
 of each ratio, we locate those countries that have a behaviour which is
 significantly different from the rest. We find that, in general, the
 evolution of the ratios analysed is mainly determined by their adjustments
 to external shocks, with the ratios related to the profit and loss account
 demonstrating a greater sensitivity to all types of shocks. By contrast,
 the debt ratios show the least sensitivity. When considered on a
 country-by-country basis, the most significant differences appear in the
 results ratios, with Spain being the country that is most sensitive to
 external shocks, and Denmark and Germany being least sensitive to all
 types of shocks. 
Journal: European Accounting Review 
Pages: 357-377 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818022000001163 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001163 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:357-377




Template-Type: ReDIF-Article 1.0
Author-Name: Claude Cossu 
Author-X-Name-First: Claude 
Author-X-Name-Last: Cossu 
Title: The Beginnings of Accounting and Accounting Thought 
Abstract:
  Richard Mattessich, New York: Garland Publishing (New Works in Accounting
 History), 2000, &#xa3;43.00, xii +179pp. ISBN: 0-8153-3445-1 
Journal: European Accounting Review 
Pages: 379-386 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000089427a 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000089427a 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:379-386




Template-Type: ReDIF-Article 1.0
Author-Name: Herve Stolowy 
Author-X-Name-First: Herve 
Author-X-Name-Last: Stolowy 
Title: The Murphy-Kirk-Beresford Correspondence 1982-1996: Commentary on the Development of Financial Accounting Standards 
Abstract:
  Robert J. Bricker and Gary J. Previts (eds) (Foreword by Eugene Glem),
 Studies in the Development of Accounting Thought, Volume 5 Oxford: JAI
 (Elsevier Science), 2002, $85.00, e85.00, 223pp. ISBN: 0-7623-0834-6 
Journal: European Accounting Review 
Pages: 393-397 
Issue: 2 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000089427b 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000089427b 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:12:y:2003:i:2:p:393-397




Template-Type: ReDIF-Article 1.0
Author-Name: Eva Labro 
Author-X-Name-First: Eva 
Author-X-Name-Last: Labro 
Author-Name: Tero-Seppo Tuomela 
Author-X-Name-First: Tero-Seppo 
Author-X-Name-Last: Tuomela 
Title: On bringing more action into management accounting research: process considerations based on two constructive case studies 
Abstract:
  About a decade ago, the constructive research approach (CRA) was proposed
 by Kasanen et al. (1993) as a specific opportunity for management
 accounting researchers to engage in solving problems relevant to managers.
 While the advocates of the CRA have argued in favour of its theoretical
 contribution potential and have shown that it satisfies the requirements
 of valid applied research, only very few studies using this particular
 approach have been published in major research journals. Our objective is
 to discuss the CRA methodology, both from a descriptive and from a
 prescriptive or normative perspective. We examine the research processes
 in two very different CRA studies, Degraeve et al. (2000b) and Tuomela
 (2000a), using the seven-step model suggested by Lukka (2000). We give
 practical exemplary methodological guidance for other researchers who wish
 to try out the CRA or obtain a better understanding of this methodology.
 While so doing, we also show that the CRA can provide researchers with
 interesting results obtained in a reliable and valid manner. In this way,
 we enhance the legitimacy of the CRA. 
Journal: European Accounting Review 
Pages: 409-442 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000083559 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000083559 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:409-442




Template-Type: ReDIF-Article 1.0
Author-Name: B. Gill de Albornoz 
Author-X-Name-First: B. Gill 
Author-X-Name-Last: de Albornoz 
Author-Name: Jose Alcarria 
Author-X-Name-First: Jose 
Author-X-Name-Last: Alcarria 
Title: Analysis and diagnosis of income smoothing in Spain 
Abstract:
  This paper examines income smoothing behaviour for a sample of Spanish
 listed companies over the period 1991-97. Discretionary accruals are used
 as a measure of managers' accounting discretion. Our results strongly
 support the income smoothing hypothesis which predicts aggressive
 (conservative) accounting policies when a firm's current pre-managed
 performance undershoots (exceeds) target earnings, as proxied by median
 earnings for the firm's industry. Consistent with DeFond and Park (1997),
 we also provide some evidence supporting the anticipatory income smoothing
 hypothesis, whereby current period smoothing behaviour is partly
 conditioned on expected future performance. 
Journal: European Accounting Review 
Pages: 443-463 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818022000001154 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818022000001154 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:443-463




Template-Type: ReDIF-Article 1.0
Author-Name: Katarzyna Kosmala-MacLullich 
Author-X-Name-First: Katarzyna 
Author-X-Name-Last: Kosmala-MacLullich 
Title: The true and fair view construct in the context of the Polish transition economy: some local insights 
Abstract:
  This paper addresses issues of financial reporting within the context of
 European harmonization and accession. The construct of the True and Fair
 View (hereafter TFV) constitutes a locus of reflection for the
 establishment of a mutually intelligible foundation for financial
 reporting in the New Europe including applicant states for European Union
 (hereafter EU) membership. This paper provides insights as to the meaning
 and the local embeddedness of TFV in the context of the Polish
 transitional economy. The Audit Act 1994 and the Accounting Act 1994, as
 amended by the 2000 Acts, incorporate the provisions of European law with
 the aim of harmonizing Polish accounting and financial reporting
 regulations with the corresponding regulations in the EU. The Accounting
 Act 1994 for the first time introduced in Poland the current wording of
 the TFV construct in accordance with the requirements of the Fourth
 Directive. The question addressed in this paper is how the construct of
 TFV is understood and operationalized. This paper demonstrates the
 particular local understanding of the TFV construct in contemporary Poland
 through (1) textual analysis of the legal pronouncements (both national
 and international) and (2) narrative analysis of local debates and
 commentaries in the national press and academic journals. Given the
 difficulty of expressing judgements based upon accumulated experience,
 where much of the experience is constituted by continental influence, in
 particular the German tradition, and regulatory arrangements of a
 centrally planned economy, Polish practice perceives the TFV requirement
 primarily as a formal and legal compliance, and not yet as something with
 a substantial rationale in the observance of the rule of accounting law.
 The paper concludes that TFV is a contingent construct which resides in a
 particular socio-economic, historic and cultural context and is understood
 differently outside this context. The local Polish reception and
 understanding is articulated. 
Journal: European Accounting Review 
Pages: 465-487 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087844 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087844 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:465-487




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Klumpes 
Author-X-Name-First: Paul 
Author-X-Name-Last: Klumpes 
Title: Determinants of government underfunded public pension liabilities in the OECD 
Abstract:
  Underfunded government liabilities for public pensions constitutes a
 major expenditure in the management of social programmes in many
 countries, but to date has not attracted much attention from accountants
 as it does not easily fit within an accrual-based accounting system. This
 paper discusses major measurement problems associated with this liability
 and then examines determinants of variations in projected flow-based
 funding patterns among OECD governments. Alternative 'behavioural
 persistence' and 'regression to the mean' hypotheses about the
 determinants of underfunding practices are formulated and tested using an
 OECD data set describing the financial and socio-economic characteristics
 of government-sponsored public pension systems in these countries.
 Consistent with the behavioural persistence hypothesis, cross-sectional
 variations are found to be associated with the funding ratio and the rate
 of taxation required to keep government debt constant. Variations in
 underfunding practices across the sample are also sensitive to cultural
 differences in attitude towards public pension accountability between
 continental European and Anglo-American countries. 
Journal: European Accounting Review 
Pages: 489-513 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000083522 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000083522 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:489-513




Template-Type: ReDIF-Article 1.0
Author-Name: Tobias Scheytt 
Author-X-Name-First: Tobias 
Author-X-Name-Last: Scheytt 
Author-Name: Kim Soin 
Author-X-Name-First: Kim 
Author-X-Name-Last: Soin 
Author-Name: Thomas Metz 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Metz 
Title: Exploring notions of control across cultures: a narrative approach 
Abstract:
  It can be argued that the concept of control is one of the most important
 and yet complex notions of management accounting theory and practice.
 Despite its importance, it is not fully understood in terms of its
 significance in an international context. Using an interpretive approach
 and against the background of structuration theory, this paper explores
 and identifies differences in notions of control across European cultures.
 The empirical research is based on samples of narratives of personal
 experiences taken from respondents in four European countries: Austria,
 France, Germany and the United Kingdom. The results indicate that control
 is influenced by, and deeply embedded in, the cultural context of the
 respective countries. This has implications for the transfer of management
 accounting and control knowledge across different European countries and
 suggests that one has to be aware of the existence, meaning and
 significance of the differences and characteristics of the regional
 culture. In an era of internationalization and standardization, this paper
 responds to calls (Hopwood, 1999) for research, which emphasizes the
 importance of attempts to understand how the practices of management
 accounting and control are differentiated in relation to regional
 cultures. 
Journal: European Accounting Review 
Pages: 515-547 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000103015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000103015 
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Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:515-547




Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Author-Name: Hans Schwencke 
Author-X-Name-First: Hans 
Author-X-Name-Last: Schwencke 
Title: Accounting change in Norway 
Abstract:
  During the last twenty years, a change from a continental towards what
 can broadly be characterized as an Anglo-Saxon perspective of accounting
 has taken place in Norway. This paper discusses whether the new Norwegian
 Accounting Act of 1998 and the accounting standards issued by the
 Norwegian standard-setting body represent a further focus on the
 Anglo-Saxon perspective. Important parts of Norwegian accounting
 regulation, particularly the Norwegian Conceptual Framework, are
 highlighted and compared with the positions of European (EC Accounting
 Directives) and international (IASB) accounting. The findings indicate
 that the Anglo-Saxon perspective of accounting appears to be strengthened
 by the new Norwegian law. Even if the findings indicate that the IAS
 solutions are generally accepted under the new regulation, the flexibility
 of the regulation seems to indicate that other solutions are accepted as
 well. These 'specific Norwegian' accounting solutions may generally lead
 to balance sheets which are less prudent than the balance sheets set up
 under IAS. If one accepts that a characteristic of Anglo-Saxon accounting
 is that it is, historically, generally less prudent than continental
 European accounting, it can indeed be concluded that Norwegian financial
 reporting has become more Anglo-Saxon than Anglo-Saxon countries in
 general. One factor seems to weaken this conclusion: Norway does not allow
 the revaluation of fixed assets. 
Journal: European Accounting Review 
Pages: 549-566 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087934 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087934 
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Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:549-566




Template-Type: ReDIF-Article 1.0
Author-Name: J. Geerings 
Author-X-Name-First: J. 
Author-X-Name-Last: Geerings 
Author-Name: L. H. H. Bollen 
Author-X-Name-First: L. H. H. 
Author-X-Name-Last: Bollen 
Author-Name: H. F. D. Hassink 
Author-X-Name-First: H. F. D. 
Author-X-Name-Last: Hassink 
Title: Investor relations on the Internet: a survey of the Euronext zone 
Abstract:
  This study investigates the investor relations activities on the Internet
 of companies listed on the Euronext stock exchange. For this purpose, the
 websites of the fifty largest listed companies in each of the countries
 Belgium, France and the Netherlands were screened for investor relations
 items. Results obtained by using a three-stage model show that most
 companies in the Euronext zone are at the second stage of Internet
 investor relations, i.e. where information available through other sources
 is combined to better inform investors. In the third stage companies use
 the full interactive possibilities of the Internet for investor relations
 purposes. French and Dutch companies use the Internet for investor
 relations purposes more widely and more intensely than Belgian companies.
 The study also revealed a size effect; large companies use the Internet
 for investor relations purposes more extensively than smaller companies.
 This conclusion holds for each of the three countries. The leading
 companies in France and the Netherlands are either at the third stage of
 Internet investor relations or are ready to move to this stage. 
Journal: European Accounting Review 
Pages: 567-579 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000083531 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000083531 
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Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:567-579




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Klaassen 
Author-X-Name-First: Jan 
Author-X-Name-Last: Klaassen 
Title: Global Financial Reporting 
Abstract:
  John Flower and Gabi Ebbers, Basingstoke: Palgrave, 2002, &#xa3;35.00,
 677pp. ISBN: 0-333-79477-X 
Journal: European Accounting Review 
Pages: 581-591 
Issue: 3 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087826 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087826 
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Handle: RePEc:taf:euract:v:12:y:2003:i:3:p:581-591




Template-Type: ReDIF-Article 1.0
Author-Name: Baruch Lev 
Author-X-Name-First: Baruch 
Author-X-Name-Last: Lev 
Author-Name: Stefano Zambon 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Zambon 
Title: Intangibles and intellectual capital: an introduction to a special issue 
Abstract:
Journal: European Accounting Review 
Pages: 597-603 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000162849 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000162849 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:4:p:597-603




Template-Type: ReDIF-Article 1.0
Author-Name: Marta Ballester 
Author-X-Name-First: Marta 
Author-X-Name-Last: Ballester 
Author-Name: Manuel Garcia-Ayuso 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Garcia-Ayuso 
Author-Name: Joshua Livnat 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Livnat 
Title: The economic value of the R&D intangible asset 
Abstract:
  This study utilizes firm-specific time-series data to estimate the
 economic value of the research and development (R&D) expenditures that
 investors consider an asset to the firm. The study uses a modification of
 the Ohlson (1995) model to estimate the persistence of abnormal earnings,
 the proportion of current R&D expenditures that represents a source of
 future benefits to the firm and the amortization rate of that asset. The
 parameters are estimated from time-series data of market and book values
 of equity, earnings and R&D expenditures. The study further compares the
 firm-specific estimates with those resulting from an application of a
 cross-sectional estimation procedure based on all available companies in
 the sample and industry-specific sub-samples. Results indicate the
 existence of significant differences in some two-digit SIC code industries
 between the time-series and the cross-sectional estimates of the
 parameters and the economic value of the R&D asset. Differences in the
 capitalization parameter are associated with the growth in R&D, the
 profitability of the firm, R&D intensity and the concentration of the
 industry. Differences in the persistence of earnings are related to the
 concentration ratio. Finally, differences in the estimated economic value
 of the R&D asset are associated with the profitability of the company as
 measured by its return on assets. We further compare the associations
 between the three different estimates of the R&D asset and subsequent
 stock returns, as well as the contemporaneous difference between the
 market and book value of companies. Results indicate that the time-series
 estimates of the R&D asset show stronger associations with both variables,
 followed by the intra-industry and the cross-industry cross-sectional
 estimates. Overall, our results provide evidence that market participants
 behave as if R&D expenditures have significant future economic benefits to
 the firm, and show that the cross-sectional and time-series approaches
 followed when assessing its economic value provide significantly different
 estimates. 
Journal: European Accounting Review 
Pages: 605-633 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/09638180310001628437 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180310001628437 
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Template-Type: ReDIF-Article 1.0
Author-Name: Eli Amir 
Author-X-Name-First: Eli 
Author-X-Name-Last: Amir 
Author-Name: Baruch Lev 
Author-X-Name-First: Baruch 
Author-X-Name-Last: Lev 
Author-Name: Theodore Sougiannis 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Sougiannis 
Title: Do financial analysts get intangibles? 
Abstract:
  It is widely agreed that corporate financial reports provide deficient
 information about intangible assets. However, investors are exposed to
 substantial information beyond financial reports, such as managers' direct
 communications to capital markets and analysts' reports. We ask: To what
 extent do these non-financial report sources compensate for the
 intangibles-related deficiencies of financial statements? To address this
 question we assume that analysts' forecasts of earnings reflect, among
 other things, the beyond-financial-report information we seek, and we use
 simultaneous equations to estimate the incremental information
 contribution of earnings forecasts over the information contained in
 financial reports, thereby isolating value-relevant information not
 available in financial reports. We focus particularly on
 intangibles-related information, by comparing analysts' contribution for
 firms with and without R&D. We find that, to some extent, analysts do
 compensate for the intangibles-related information deficiencies of
 financial reports, but definitely not for all the deficiencies.
 Accordingly, we identify the 'weakest links'-industries in which analysts
 do not get intangibles. 
Journal: European Accounting Review 
Pages: 635-659 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818032000141879 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000141879 
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Handle: RePEc:taf:euract:v:12:y:2003:i:4:p:635-659




Template-Type: ReDIF-Article 1.0
Author-Name: A. Rashad Abdel-khalik 
Author-X-Name-First: A. Rashad 
Author-X-Name-Last: Abdel-khalik 
Title: Self-sorting, incentive compensation and human-capital assets 
Abstract:
  Skilled labour has gained significance as a production factor in the age
 of information technology, but accounting does not recognize human capital
 as an asset that contributes to the firm's earning power. This paper
 suggests a method to develop a latent index to proxy the managerial-skill
 component of human capital. The proposed index depends on the empirical
 validity of self-sorting theories for managerial tasks and the choice of
 the type of at-risk (i.e. outcome-contingent) compensation contract. The
 empirical analysis uses data on compensation of executive members of the
 board of directors, their personal attributes (experience, risk aversion
 and wealth), firm-specific variables (profitability growth rates,
 organizational complexity and operating risk), and type of industry. The
 extent to which equity markets value the predicted labour skills shows
 that investors in the marketplace recognize human capital even though
 accounting does not. The valuation coefficient on the variable imputed for
 human capital is significant for all years examined. This study
 contributes to the literature by showing that relative incentive
 compensation (incentive pay per dollar of fixed salary) is a viable
 surrogate for human capital defined as the skills embodied in people. 
Journal: European Accounting Review 
Pages: 661-697 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/09638180310001628428 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180310001628428 
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Handle: RePEc:taf:euract:v:12:y:2003:i:4:p:661-697




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Rosett 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Rosett 
Title: Labour leverage, equity risk and corporate policy choice 
Abstract:
  This paper investigates the role of labour utilization in assessing
 equity investment risk and corporate financial policy choices. Several
 existing models of the firm predict that labour utilization is costly to
 adjust in the short run. I argue that this leads to a relatively fixed
 obligation to pay cash to labour, in effect creating an off-balance-sheet
 intangible liability similar to a lease. The liability creates 'labour
 leverage' risk, analogous to financial leverage risk. Labour leverage is
 hypothesized to be positively correlated with equity investment risk as
 measured by characteristics of stock returns. Managers recognize this risk
 and adjust financial policies including debt financing and dividend policy
 accordingly. The main empirical results are that labour leverage is
 positively correlated with equity investment risk, and it plays the
 predicted role in regressions explaining financial structure and dividend
 policy. Proxies for labour leverage are simple measures based on existing
 disclosure. The results are consistent with the conjectures that market
 participants use labour disclosures to assess risk, and that managers take
 actions to mitigate this risk. The results are consistent across most
 sectors of the economy, and consistent over time. 
Journal: European Accounting Review 
Pages: 699-732 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/0963818031000087880 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818031000087880 
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Handle: RePEc:taf:euract:v:12:y:2003:i:4:p:699-732




Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Chaminade 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Chaminade 
Author-Name: Hanno Roberts 
Author-X-Name-First: Hanno 
Author-X-Name-Last: Roberts 
Title: What it means is what it does: a comparative analysis of implementing intellectual capital in Norway and Spain 
Abstract:
  The implementation of the intellectual capital (IC) concept at firm level
 introduces a new vocabulary to the existing language set. Firms are
 attempting to make sense of the concept and, in the process,
 operationalize it in terms of specific management tools. This paper
 provides a comparative analysis of intellectual capital trajectories in
 Norway and Spain. Although the implementation designs are different
 (selected small and medium-sized enterprises and sector in Norway and more
 non-selected in Spain), the paper finds that a dominant accounting
 perspective can lead to an excessive focus on measurement issues and
 little attention to management processes. Alternatively, introducing IC
 with a broader and less defined focus might help newcomers to experiment
 with the concept in a more open-minded way. In non-experienced firms the
 entrance point matters, as it defines the meaning for new words and
 concepts such as intellectual capital or intangibles. 
Journal: European Accounting Review 
Pages: 733-751 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/09638180310001628446 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180310001628446 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael Habersam 
Author-X-Name-First: Michael 
Author-X-Name-Last: Habersam 
Author-Name: Martin Piber 
Author-X-Name-First: Martin 
Author-X-Name-Last: Piber 
Title: Exploring intellectual capital in hospitals: two qualitative case studies in Italy and Austria 
Abstract:
  This paper explores the relevance and awareness of intellectual capital
 (IC) in hospitals. Based on two qualitative case studies, one in the
 Veneto region, Italy, and one in the Tyrol region, Austria, the empirical
 study contributes to a better understanding of IC. The analysis of
 characteristics, notion and practices against two different cultural
 backgrounds allows to complement the widespread taxonomy of IC consisting
 of human, structural and relational capital by connectivity capital as a
 linking pin. In addition, different spheres of IC transparency are
 identified: metric, literal, intuitive and black box capital. With this
 new comprehensive framework a dynamic valuing of IC becomes possible. This
 takes into account that IC is being characterized by process-driven
 collective and individual capabilities in interaction. As a consequence,
 it is argued for a co-existence of financial metrics and non-metric
 rationalities in order to achieve transparency of IC. 
Journal: European Accounting Review 
Pages: 753-779 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/09638180310001628455 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180310001628455 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:4:p:753-779




Template-Type: ReDIF-Article 1.0
Author-Name: Robin Fincham 
Author-X-Name-First: Robin 
Author-X-Name-Last: Fincham 
Author-Name: Robin Roslender 
Author-X-Name-First: Robin 
Author-X-Name-Last: Roslender 
Title: Intellectual capital accounting as management fashion: a review and critique 
Abstract:
  There is growing interest in the new techniques of intellectual capital
 accounting (ICA) as a method of measuring and reporting the range of human
 and knowledge-based factors that create sustained economic value. This
 paper suggests that viewing ICA as an aspect of expanded forms of
 management knowledge, and in particular as a 'management fashion',
 provides critical insight into the technique's occupational and
 organizational roles. The fashion perspective emphasizes the symbolic
 means of establishing the appeal of ideas to particular audiences, as well
 as the social mechanisms by which the dissemination of ideas takes place.
 The paper reviews the emerging debate on ICA, and interprets the
 professional literature as a narrative that reveals accountancy's keen
 interest in ICA as a mechanism of exploiting tacit knowledge. The
 suggestion is that the discipline's concerns with its own occupational
 situation and corporate relevance may be a reflection of the appeal of a
 development like ICA as much as any simple views of efficacy. 
Journal: European Accounting Review 
Pages: 781-795 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/09638180310001628464 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180310001628464 
File-Format: text/html
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Handle: RePEc:taf:euract:v:12:y:2003:i:4:p:781-795




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Powell 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Powell 
Title: Accounting for intangible assets: current requirements, key players and future directions 
Abstract:
  This article provides an international (cross-country) review of current
 accounting requirements for intangible assets, identifies the key trend
 setters and considers potential future directions in the area of
 accounting for intangible assets. Accounting for intangible assets is one
 of the least developed areas of accounting theory and regulation. This
 article makes up part of the special forum devoted to furthering debate on
 accounting for intangible assets. 
Journal: European Accounting Review 
Pages: 797-811 
Issue: 4 
Volume: 12 
Year: 2003 
X-DOI: 10.1080/09638180310001628473 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180310001628473 
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Handle: RePEc:taf:euract:v:12:y:2003:i:4:p:797-811




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 5-5 
Issue: 1 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000103024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000103024 
File-Format: text/html
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Handle: RePEc:taf:euract:v:13:y:2004:i:1:p:5-5




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Sk&#xe6;rb&#xe6;k 
Author-X-Name-First: Peter 
Author-X-Name-Last: Sk&#xe6;rb&#xe6;k 
Author-Name: Jens Aaris Thisted 
Author-X-Name-First: Jens Aaris 
Author-X-Name-Last: Thisted 
Title: Unit costs in central government annual reports: a critical appraisal of the practices developed 
Abstract:
  Drawing upon an examination of the annual reports of three Danish
 government agencies, we offer a critical examination of the calculation
 practices that have developed within central government. The reports
 constitute a response to the demand from the Ministry of Finance and
 National Audit Office of Denmark that government agencies calculate unit
 costs and disclose these figures to the public. In particular we question
 whether, in its enthusiasm for bringing unit costs into the public domain,
 central government risks developing calculation practices that might not
 be helpful in informing decisions and debate on public spending.
 Publishing unit costs under the pretence that they can be used for both
 decision-making and performance measurement is a questionable practice.
 Within the literature on public sector accounting it has widely been
 accepted that all the deficiencies of cost accounting that occur in the
 private sector, such as arbitrary cost allocations, are also to be
 expected in the figures emanating from the public sector. This paper
 applies a rationalistic perspective in order to identify the additional
 problems that appear in the public sector. The findings illustrate that
 the calculations are not linked to decision alternatives, thus rendering
 them inappropriate for decision-making. For purposes of performance
 measurement, the uniformity of services required does not exist. We found
 that some deficiencies are intrinsic to the very idea of unit costing in
 the public sector while other deficiencies are producer related. In
 considering all the deficiencies demonstrated, we argue that the attempt
 to integrate a financial accounting medium with management accounting
 practices has failed. Those reading the disclosed figures may be tempted
 to draw conclusions that are not fully informed. However, we must admit
 that we cannot preclude that the cost information may be used internally
 for attention-directing purposes. A large number of the previous annual
 reports totally fail to consider quality. As an MP, how do you expect me
 to utilize the information that agency X has sent 12,500 answers to
 enquiries. Hurrah, have they increased their productivity - or what?
 Imagine that the 12,500 letters simply said, 'Thanks for your enquiry.
 Your letter will be considered in our handling of the case.' If the
 enquiries of the past year really did demand intensive attention, then the
 productivity has actually decreased. Statements expressed in quantitative
 terms do not always provide information adequate for political assessments
 or in order to prioritize. (Chairman of the Public Accounts Committee,
 Peter Duetoft, MP. See Duetoft, 1998; own translation - ed.) 
Journal: European Accounting Review 
Pages: 7-38 
Issue: 1 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000102999 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000102999 
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Template-Type: ReDIF-Article 1.0
Author-Name: Juhani Vaivio 
Author-X-Name-First: Juhani 
Author-X-Name-Last: Vaivio 
Title: Mobilizing local knowledge with 'Provocative' non-financial measures 
Abstract:
  Knowledge and organizational learning are central concerns of
 contemporary organizations. Local knowledge is stored in the detailed
 operational practices, professional routines and grassroot ways of
 thinking in specific situations, which different agents employ in their
 organizational segments and niches. These sources of field insight are
 relevant in producing new competitive initiatives and in the creation of
 new strategy. This empirically grounded paper illustrates how focused
 non-financial management accounting measurement brings the controller
 closer to operational detail, stimulates horizontal debate, and leads to
 expert resistance. It suggests that non-financial measurement, as an
 intrusive and controversial management accounting technology, can be
 perceived as being 'provocative'. Organizational actors react strongly to
 this focused measurement. However, 'provocative' non-financial measurement
 assists the articulation of intriguing local knowledge in organizational
 discourse, providing new possibilities for the controller in locally
 situated processes of learning. 
Journal: European Accounting Review 
Pages: 39-71 
Issue: 1 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000102971 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000102971 
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Handle: RePEc:taf:euract:v:13:y:2004:i:1:p:39-71




Template-Type: ReDIF-Article 1.0
Author-Name: Jose J. Alcarria Jaime 
Author-X-Name-First: Jose J. Alcarria 
Author-X-Name-Last: Jaime 
Author-Name: Belen Gill de Albornoz Noguer 
Author-X-Name-First: Belen Gill de Albornoz 
Author-X-Name-Last: Noguer 
Title: Specification and power of cross-sectional abnormal working capital accruals models in the Spanish context 
Abstract:
  Following previous research (e.g. Dechow et al., 1995; Peasnell et al.,
 2000), we use a simulation procedure to evaluate the specification and
 power of different working capital abnormal accruals models in the Spanish
 context. Specifically, we assess the Jones Standard model, the Modified
 Jones model, the Kang and Sivaramakrishnan model, the Margin model, the
 Jones Cash Flow model, and the Accounting Process model. Consistent with
 previous research, our results suggest that all the models analysed are
 well specified in a random sample of firms. Regarding the models' ability
 to detect artificially induced earnings management, the Jones Cash Flow
 and the Accounting Process models produce the most powerful tests in all
 three types of manipulation studied. In line with Peasnell et al. (2000),
 we find that the Margin model is more powerful than the Jones Standard and
 the Modified Jones models at detecting non-bad debt expense manipulation,
 while these two models perform better than the Margin model for revenue
 and bad debt manipulation. Our results also support the finding by Dechow
 et al. (1995) that their modified version of the Jones model is more
 powerful than its standard version at detecting revenue-based
 manipulation. 
Journal: European Accounting Review 
Pages: 73-104 
Issue: 1 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000134912 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000134912 
File-Format: text/html
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Handle: RePEc:taf:euract:v:13:y:2004:i:1:p:73-104




Template-Type: ReDIF-Article 1.0
Author-Name: Raul Iniguez 
Author-X-Name-First: Raul 
Author-X-Name-Last: Iniguez 
Author-Name: Francisco Poveda 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Poveda 
Title: Long-run abnormal returns and income smoothing in the Spanish stock market 
Abstract:
  This study investigates the market valuation of income smoothing via a
 long-run analysis of the relationship between income smoothing and return
 and risk in the Spanish stock market. The results suggest that firms that
 smooth income appear to yield higher stock returns than firms that do not;
 they also appear to carry a lower risk associated with size and
 book-to-market factors. The study concludes that the Spanish market is not
 efficient in this question because it overvalues firms that artificially
 smooth income, and because it is possible to reduce the stock's risk by
 manipulating accounting profits. 
Journal: European Accounting Review 
Pages: 105-130 
Issue: 1 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000138224 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000138224 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:1:p:105-130




Template-Type: ReDIF-Article 1.0
Author-Name: Jozef Konings 
Author-X-Name-First: Jozef 
Author-X-Name-Last: Konings 
Author-Name: Hylke Vandenbussche 
Author-X-Name-First: Hylke 
Author-X-Name-Last: Vandenbussche 
Title: The adjustment of financial ratios in the presence of soft budget constraints: evidence from Bulgaria 
Abstract:
  This paper is the first to study the behaviour of financial ratios in an
 emerging economy of Central Europe. Using the entire population of company
 accounts in Bulgaria we find that for the financial ratios we considered,
 adjustment towards a target takes place but the speed of adjustment is
 lower than that for Western companies reported in earlier studies. Also,
 we find the adjustment of financial ratios in Bulgaria to be far slower in
 firms characterized by soft budget constraints, a widespread phenomenon in
 Central Europe. However, the speed of adjustment of most financial ratios
 shows up as significantly higher after the Bulgarian financial crisis in
 1997. Our results indicate that the partial adjustment model may not be
 the most appropriate model for an emerging economy like Bulgaria. Further
 research needs to clarify how expectations are formed and financial ratios
 move over time in transition countries such as Bulgaria. 
Journal: European Accounting Review 
Pages: 131-159 
Issue: 1 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000102980 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000102980 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:1:p:131-159




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Pong 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Pong 
Title: A descriptive analysis of audit price changes in the UK 1991-95 
Abstract:
  This paper examines changes in the audit fees of quoted public limited
 companies in the UK during the period from 1991 to 1995. After controlling
 for changes in the size, complexity and risk of auditees, it is shown
 (based on a logarithm audit fee model) that the audit market experienced a
 9.7% reduction in inflation-adjusted fees over this five-year period. The
 results also provide evidence of overall fee reductions by each of the Big
 Six. On closer examination, a mixture of fee increases, decreases and no
 changes were observed for auditees of the Big Six and for the groups of
 medium-sized and small audit firms investigated. These results, which
 pertain to a period when market concentration increased markedly (Beattie
 and Fearnley, 1994; Peel, 1997; Pong, 1999), offer some amelioration of
 the concerns of the purchasers of audit services that, in general, audit
 fees will rise in response to an increase in dominance by a few large
 firms. 
Journal: European Accounting Review 
Pages: 161-178 
Issue: 1 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000134921 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000134921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:1:p:161-178




Template-Type: ReDIF-Article 1.0
Author-Name: Jenice Prather-Kinsey 
Author-X-Name-First: Jenice 
Author-X-Name-Last: Prather-Kinsey 
Author-Name: Gary Meek 
Author-X-Name-First: Gary 
Author-X-Name-Last: Meek 
Title: The effect of revised IAS 14 on segment reporting by IAS companies 
Abstract:
  International Accounting Standard (IAS) 14 on segment reporting was
 revised in 1997. IAS 14R substantially changed segment reporting
 requirements in response to numerous criticisms of the original standard.
 The objective of this study is to determine how IAS 14R affected the
 segment disclosure practices of companies claiming to comply with IAS.
 This paper examines the following questions: (1) What items of information
 are disclosed under IAS 14 and IAS 14R? Was there a gain or a loss of
 information disclosed for business and geographic segments with the
 implementation of IAS 14R? (2) Has the number of business and geographic
 segments reported by companies changed with the implementation of IAS 14R?
 (3) Are companies disclosing the items required by IAS 14R? (4) Are
 companies' segment reporting practices related to size, country of
 domicile, industry, international listing status, and having a then-Big
 Five auditor? We find that the impact of IAS 14R is mixed. Companies are
 responding to IAS 14R, but not wholly embracing it. Our findings suggest
 that companies audited by a Big Five (now Big Four) firm and, to a lesser
 extent, companies that are larger, listed on multiple stock exchanges, and
 from Switzerland have greater compliance with IAS 14R than other companies
 in our study. 
Journal: European Accounting Review 
Pages: 213-234 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000138206 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000138206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:2:p:213-234




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Gramlich 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Gramlich 
Author-Name: Ole S&#xf8;rensen 
Author-X-Name-First: Ole 
Author-X-Name-Last: S&#xf8;rensen 
Title: Voluntary management earnings forecasts and discretionary accruals: evidence from Danish IPOs 
Abstract:
  This paper seeks to determine whether Danish managers exercise
 discretionary accruals to reach earnings forecast targets they voluntarily
 specify in conjunction with initial public offerings (IPOs). Because the
 Danish accounting and legal environment is more permissive than the US, we
 use Denmark as a natural laboratory for learning how business would occur
 without strict rules, enforcement and sanctions. Danish managers often
 volunteer pro forma financial statements for results that are expected to
 occur subsequent to the IPO. We examine a sample of 58 Danish firms that
 issue voluntary management earnings forecasts in connection with IPOs that
 occur between 1984 and 1996. The evidence we uncover strongly suggests
 that pre-managed earnings are adjusted toward these targets. In contrast
 with Kasznik's (1999) results related to voluntarily forecasting American
 firms, managers of Danish firms exercise discretionary accruals to
 mitigate earnings forecast errors regardless of whether pre-managed
 earnings are less, or greater, than the IPO forecast amount. 
Journal: European Accounting Review 
Pages: 235-259 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000203338 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000203338 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:2:p:235-259




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Manuel Garcia Lara 
Author-X-Name-First: Juan Manuel Garcia 
Author-X-Name-Last: Lara 
Author-Name: Araceli Mora 
Author-X-Name-First: Araceli 
Author-X-Name-Last: Mora 
Title: Balance sheet versus earnings conservatism in Europe 
Abstract:
  In this study we extend prior research on the international analysis of
 accounting conservatism (Joos and Lang, 1994; Ball et al., 2000; Giner and
 Rees, 2001), by examining the level of accounting conservatism across
 eight European countries (United Kingdom, Germany, France, Switzerland,
 the Netherlands, Italy, Spain and Belgium), and assessing the statistical
 significance of the differences among them. The definitions of
 conservatism that we use are, on the one hand, the Feltham and Ohlson
 (1995) definition, which implies a persistent understatement of book value
 of shareholders' equity (balance sheet conservatism). On the other hand,
 we use the one proposed by Basu (1997), that is, a timelier recognition of
 bad news in earnings relative to good news (earnings conservatism). We
 also address the possible scale problems of the models used to measure
 balance sheet conservatism. Finally, we check whether our comparative
 results could be influenced by a different sample composition in each
 country. Our results show that there are both balance sheet and earnings
 conservatism practices in all countries under study. In addition, while
 continental countries show larger balance sheet conservatism, differences
 in earnings conservative practices between countries are not that
 pronounced, although they tend to be larger in the UK. We also find that
 the existence of balance sheet conservative practices is associated with
 reduced levels of earnings conservatism, which is consistent with the
 results in Pope and Walker (2003). 
Journal: European Accounting Review 
Pages: 261-292 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000203347 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000203347 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:2:p:261-292




Template-Type: ReDIF-Article 1.0
Author-Name: Teemu Malmi 
Author-X-Name-First: Teemu 
Author-X-Name-Last: Malmi 
Author-Name: Pekka Jarvinen 
Author-X-Name-First: Pekka 
Author-X-Name-Last: Jarvinen 
Author-Name: Paul Lillrank 
Author-X-Name-First: Paul 
Author-X-Name-Last: Lillrank 
Title: A collaborative approach for managing project cost of poor quality 
Abstract:
  This paper presents a construct - a collaborative approach for managing
 project cost of poor quality. Changing project constraints makes it
 difficult or even impossible to utilize traditional cost of poor quality
 methodology in managing quality costs in project environments. The
 construct presented here modifies the root-cause analysis type of approach
 to manage the cost of poor quality by introducing the use of three
 prospective values and probabilities of occurrence in project ex-ante
 evaluations. An integral part of the construct is the way in which
 monetary values are determined through workshops. The results were
 obtained in a research project using the constructive research approach.
 The construct was created at Finnish Post, Hankkija-Maatalous and Nokia
 Networks, and the validity was further tested at Valmet Paper Machines. 
Journal: European Accounting Review 
Pages: 293-317 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000204733 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000204733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:2:p:293-317




Template-Type: ReDIF-Article 1.0
Author-Name: Gunther Gebhardt 
Author-X-Name-First: Gunther 
Author-X-Name-Last: Gebhardt 
Author-Name: Rolf Reichardt 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Reichardt 
Author-Name: Carsten Wittenbrink 
Author-X-Name-First: Carsten 
Author-X-Name-Last: Wittenbrink 
Title: Accounting for financial instruments in the banking industry: conclusions from a simulation model 
Abstract:
  The paper analyses the effects of three sets of accounting rules for
 financial instruments - Old IAS before IAS 39 became effective, Current
 IAS or US GAAP, and the Full Fair Value (FFV) model proposed by the Joint
 Working Group (JWG) - on the financial statements of banks. We develop a
 simulation model that captures the essential characteristics of a modern
 universal bank with investment banking and commercial banking activities.
 We run simulations for different strategies (fully hedged, partially
 hedged) using historical data from periods with rising and falling
 interest rates. We show that under Old IAS a fully hedged bank can portray
 its zero economic earnings in its financial statements. As Old IAS offer
 much discretion, this bank may also present income that is either positive
 or negative. We further show that because of the restrictive hedge
 accounting rules, banks cannot adequately portray their best-practice risk
 management activities under Current IAS or US GAAP. We demonstrate that -
 contrary to assertions from the banking industry - mandatory FFV
 accounting adequately reflects the economics of banking activities. Our
 detailed analysis identifies, in addition, several critical issues of the
 accounting models that have not been covered in previous literature. 
Journal: European Accounting Review 
Pages: 341-371 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000204733a 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000204733a 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:2:p:341-371




Template-Type: ReDIF-Article 1.0
Author-Name: Annalisa Prencipe 
Author-X-Name-First: Annalisa 
Author-X-Name-Last: Prencipe 
Title: Proprietary costs and determinants of voluntary segment disclosure: evidence from Italian listed companies 
Abstract:
  This paper aims to identify new determinants of the extent of voluntary
 segment disclosure by using the theoretical framework of the proprietary
 costs theory, which states that companies limit voluntary disclosure
 because of proprietary costs, such as preparation and competitive costs.
 On the basis of the existing literature on this theory and on segment
 reporting, three hypotheses are theoretically derived, each correlating
 the level of segment disclosure to a new determinant, specifically the
 correspondence between the segments and legally identifiable sub-groups of
 companies, the growth rate and the listing status age. The paper also
 provides further evidence to test the impact of some 'traditional'
 determinants, introduced in the study as control variables. The hypotheses
 formulated are empirically verified. The analysis is carried out with
 reference to Italy, because of its limited legal and professional
 provisions on the topic. For the empirical test, a sample of sixty-four
 Italian listed companies is selected and a multiple regression model is
 used. Results show that, except for the growth rate, the two other new
 determinants are significantly related to the extent of segment
 disclosure. These findings confirm that proprietary costs are particularly
 relevant and limit the incentive for companies to provide segment
 information to the market. 
Journal: European Accounting Review 
Pages: 319-340 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000204742 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000204742 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:2:p:319-340




Template-Type: ReDIF-Article 1.0
Author-Name: Margaret Woods 
Author-X-Name-First: Margaret 
Author-X-Name-Last: Woods 
Author-Name: David Marginson 
Author-X-Name-First: David 
Author-X-Name-Last: Marginson 
Title: Accounting for derivatives: An evaluation of reporting practice by UK banks 
Abstract:
  In 1998 the Accounting Standards Board (ASB) published FRS 13,
 'Derivatives and other Financial Instruments: Disclosures'. This laid down
 the requirements for disclosures of an entity's policies, objectives and
 strategies in using financial instruments, their impact on its risk,
 performance and financial condition, and details of how risks are managed.
 FRS 13 became effective in March 1999, and this paper uses the 1999 annual
 reports of UK banks to evaluate the usefulness of disclosures from a
 user's perspective. Usefulness is measured in terms of the criteria of
 materiality, relevance, reliability, comparability and understandability
 as defined in the ASB's Statement of Principles (ASB, 1999). Our findings
 suggest that the narrative disclosures are generic in nature, the
 numerical data incomplete and not always comparable, and that it is
 difficult for the user to combine both narrative and numerical information
 in order to assess the banks' risk profile. Our overall conclusion is
 therefore that current UK financial reporting practices are of limited
 help to users wishing to assess the scale of an institution's financial
 risk exposure. 
Journal: European Accounting Review 
Pages: 373-390 
Issue: 2 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818032000138215 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818032000138215 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:2:p:373-390




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 413-413 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000246700 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000246700 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:3:p:413-413




Template-Type: ReDIF-Article 1.0
Author-Name: B. Pierce 
Author-X-Name-First: B. 
Author-X-Name-Last: Pierce 
Author-Name: B. Sweeney 
Author-X-Name-First: B. 
Author-X-Name-Last: Sweeney 
Title: Cost-quality conflict in audit firms: an empirical investigation 
Abstract:
  Findings are reported from an empirical investigation of cost-quality
 conflict using a survey of audit juniors and seniors in four of the Big
 Five audit firms in Ireland. Prior findings, mainly from US studies,
 indicate the presence of a cost-quality conflict in the audit environment.
 Conventional accounting controls are only partially effective and, in
 response to such controls, auditors sometimes engage in dysfunctional
 behaviours. Evidence from this study suggests that dysfunctional
 behaviours are significantly related to time pressure (created through a
 combination of budgets and deadlines) and performance evaluation
 (incorporating both style and frequency of evaluation). The relationship
 between dysfunctional behaviours and other specified variables
 (participation and leadership style) was not statistically significant.
 There was evidence that major changes have taken place in the audit
 environment such as a flattening of organizational structures and a
 de-emphasis on budgets as a form of control. The findings are interpreted
 in the context of the changed audit environment. Implications for
 resolving the cost-quality conflict from the perspective of audit firm
 management are set out and future research opportunities are identified. 
Journal: European Accounting Review 
Pages: 415-441 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216794 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:3:p:415-441




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Antheaume 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Antheaume 
Title: Valuing external costs - from theory to practice: implications for full cost environmental accounting 
Abstract:
  This article presents an experiment in full cost accounting applied to
 the case of an industrial process. It aims at exploring the difficulties
 of putting full cost accounting into practice. Its specific contribution
 to the growing body of experiments in full cost accounting is that it
 attempts to compare exactly what impacts can be translated into financial
 information with the impacts that are being left out. Amongst other
 things, we provide a quantitative figure of what is monetized in the
 experiment, expressed as a percentage of what should be monetized if all
 negative external effects were to be taken into account. The experiment
 uses three different external cost evaluation methods. The most
 comprehensive method monetizes less than 10% of the flows of the
 industrial process studied. According to the method used and the
 assumptions made, external costs vary by a factor of more than 1 to 12,000
 per unit of product. The paper then discusses what can be learnt by
 comparing the range of results obtained with each method and suggests
 directions for future research. 
Journal: European Accounting Review 
Pages: 443-464 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216802 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216802 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:3:p:443-464




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Charitou 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Charitou 
Author-Name: Evi Neophytou 
Author-X-Name-First: Evi 
Author-X-Name-Last: Neophytou 
Author-Name: Chris Charalambous 
Author-X-Name-First: Chris 
Author-X-Name-Last: Charalambous 
Title: Predicting corporate failure: empirical evidence for the UK 
Abstract:
  The main purpose of this study is to examine the incremental information
 content of operating cash flows in predicting financial distress and thus
 develop reliable failure prediction models for UK public industrial firms.
 Neural networks and logit methodology were employed to a dataset of
 fifty-one matched pairs of failed and non-failed UK public industrial
 firms over the period 1988-97. The final models are validated using an
 out-of-sample-period ex-ante test and the Lachenbruch jackknife procedure.
 The results indicate that a parsimonious model that includes three
 financial variables, a cash flow, a profitability and a financial leverage
 variable, yielded an overall correct classification accuracy of 83% one
 year prior to the failure. In summary, our models can be used to assist
 investors, creditors, managers, auditors and regulatory agencies in the UK
 to predict the probability of business failure. 
Journal: European Accounting Review 
Pages: 465-497 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216811 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216811 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:3:p:465-497




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Loft 
Author-X-Name-First: Anne 
Author-X-Name-Last: Loft 
Author-Name: Kim Jeppesen 
Author-X-Name-First: Kim 
Author-X-Name-Last: Jeppesen 
Title: Introduction 
Abstract:
Journal: European Accounting Review 
Pages: 499-499 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000246692 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000246692 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:3:p:499-499




Template-Type: ReDIF-Article 1.0
Author-Name: Heidi Vander Bauwhede 
Author-X-Name-First: Heidi Vander 
Author-X-Name-Last: Bauwhede 
Author-Name: Marleen Willekens 
Author-X-Name-First: Marleen 
Author-X-Name-Last: Willekens 
Title: Evidence on (the lack of) audit-quality differentiation in the private client segment of the belgian audit market 
Abstract:
  This paper contributes to the empirical audit-quality literature and
 provides evidence on (the lack of) audit-quality differentiation in the
 private client segment of the Belgian audit market. Auditor size is used
 as audit-quality proxy. Prior evidence on audit-quality differentiation
 between Big Six and non-Big Six auditors in the private client segment of
 the Belgian audit market is mixed. In this paper we investigate whether
 these mixed results stem from the inability of the dichotomous Big
 Six/non-Big Six variable to capture auditor-size differences in a less
 concentrated audit market. To that end we examine whether alternative
 continuous measures of audit-firm size (i.e. auditor market share, number
 of audit-firm clients, number of partners in the audit firm, total assets
 and operating profit of the audit firm) have a constraining impact on
 earnings management in a large sample of privately held Belgian companies
 (n = 1,302). Overall, we do not find evidence that is supportive of
 quality differentiation in the private client segment of the Belgian audit
 market. 
Journal: European Accounting Review 
Pages: 501-522 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000237106 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000237106 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:3:p:501-522




Template-Type: ReDIF-Article 1.0
Author-Name: Waymond Rodgers 
Author-X-Name-First: Waymond 
Author-X-Name-Last: Rodgers 
Author-Name: Thomas Housel 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Housel 
Title: The effects of environmental risk information on auditors' decisions about prospective financial statements 
Abstract:
  This study tests a model of how auditors make decisions when presented
 with environmental risk information in the context of a task that requires
 their professional opinion on a company's forecasted information. Auditing
 provided a small-world context where declarative and procedural knowledge
 have been well documented in terms of the rules for analysing financial
 information. This research uses a conceptual modelling approach to
 determine auditors' perceptions of environmental risk information and the
 effects on their judgement and decision choices when issuing an
 examination report supporting forecasted financial statements. Auditors
 were provided with environmental risk information that they had to process
 and integrate in their decision-making. The results demonstrated that
 auditors act on unfamiliar declarative knowledge using their standard
 procedural knowledge. The results from eighty-four senior auditors
 displayed evidence that auditors' perception of environmental risk
 information is downplayed compare to the traditional accounting
 information during their judgement and decision choice phases. When
 confronted with conflicting information, auditors tend to place more
 reliance on financial rather than environmental risk information. One of
 the implications of this study is that auditors should be trained to
 handle non-traditional information, such as environmental risk. 
Journal: European Accounting Review 
Pages: 523-540 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000237160 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000237160 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:13:y:2004:i:3:p:523-540




Template-Type: ReDIF-Article 1.0
Author-Name: Lasse Niemi 
Author-X-Name-First: Lasse 
Author-X-Name-Last: Niemi 
Title: Auditor size and audit pricing: evidence from small audit firms 
Abstract:
  In a competitive market, audit prices can vary if the clients believe
 that the quality of audits varies. Previous research links auditor
 independence, a key element of audit quality, to auditor size and
 consequently suggests a positive association between audit quality and
 auditor size. Moreover, by using the dichotomy approach (Big Five/non-Big
 Five), numerous studies in many countries have found that the largest
 audit firms with international reputations earn fee premiums due to their
 perceived higher quality. Little is known, however, about pricing
 differences arising from product differentiation among small audit firms.
 This study examines the relation between auditor size and audit prices by
 using the data on hourly billing rates and the auditor characteristics
 from 103 small Finnish audit firms. This study documents, after
 controlling for the auditor's technical capability, the positive
 association between auditor size and audit pricing. The results suggest
 that both size and technical capability have a positive impact on auditor
 remuneration, implying that product differentiation also takes place among
 these small audit firms. 
Journal: European Accounting Review 
Pages: 541-560 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000237151 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000237151 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter Moizer 
Author-X-Name-First: Peter 
Author-X-Name-Last: Moizer 
Author-Name: Maria Antonia Garcia Benau 
Author-X-Name-First: Maria Antonia Garcia 
Author-X-Name-Last: Benau 
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Author-Name: Antonio Vico Martinez 
Author-X-Name-First: Antonio Vico 
Author-X-Name-Last: Martinez 
Title: The corporate image of auditors in a developing audit market within the EU: the case of Spain 
Abstract:
  This paper examines the images of audit firms in Spain. Spain offers a
 valuable research context in that it is a relatively new audit market and
 one where the top company audits are not totally dominated by the large
 multinational audit firms, allowing for a comparison of the images of such
 firms against those associated with smaller, national audit firms. The
 findings of this survey are pertinent given the current level of debate
 internationally over the role, regulation and quality of auditing services
 and concerns over the potential impact of recent corporate scandals on
 auditor reputation. Our study shows that the images of audit firms in
 Spain have differed on a number of dimensions, mostly concerned with the
 pricing of audit services and the spread of audit clients. Significantly,
 no differences were obtained in relation to the perceived competence or
 ethical standing of the large multinational and Spanish, national audit
 firms. The study also shows the areas of the audit firm's corporate image
 where the actual image of the firm differs significantly from that desired
 by the management of their clients. 
Journal: European Accounting Review 
Pages: 561-582 
Issue: 3 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000237142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000237142 
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Template-Type: ReDIF-Article 1.0
Author-Name: Emiliano Ruiz-Barbadillo 
Author-X-Name-First: Emiliano 
Author-X-Name-Last: Ruiz-Barbadillo 
Author-Name: Nieves Gomez-Aguilar 
Author-X-Name-First: Nieves 
Author-X-Name-Last: Gomez-Aguilar 
Author-Name: Cristina De Fuentes-Barbera 
Author-X-Name-First: Cristina 
Author-X-Name-Last: De Fuentes-Barbera 
Author-Name: Maria Antonia Garcia-Benau 
Author-X-Name-First: Maria Antonia 
Author-X-Name-Last: Garcia-Benau 
Title: Audit quality and the going-concern decision-making process: Spanish evidence 
Abstract:
  In this study, we attempt empirically to investigate the relationship
 between audit quality and the probability that a financially distressed
 company would receive a going-concern opinion. Auditor decision-making in
 the presence of going-concern uncertainties may be characterized as a
 two-stage process. The first stage is the identification of a potential
 going-concern problem and the second stage is to determine whether the
 particular company should receive a qualified going-concern opinion. A
 sample of 1,199 non-financial Spanish company-years has been obtained from
 the database issued by the Stock Exchange National Commission for the
 fiscal years ending between December 1991 and December 2000. The results
 indicate that audit quality (measured by the auditor's level of
 independence and knowledge) affects the probability that a financially
 distressed company would receive a going-concern opinion. This probability
 is influenced not only by the auditor's ability to detect financial
 uncertainties, but also by the auditor's decision-making as to what type
 of opinion should be finally issued. 
Journal: European Accounting Review 
Pages: 597-620 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216820 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216820 
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Template-Type: ReDIF-Article 1.0
Author-Name: Charles Elad 
Author-X-Name-First: Charles 
Author-X-Name-Last: Elad 
Title: Fair value accounting in the agricultural sector: some implications for international accounting harmonization 
Abstract:
  In a recent issue of this journal, Argiles and Slof (2001) analysed the
 main features of the European Farm Accountancy Database Network (FADN)
 against the backdrop of IAS 41, the new international accounting standard
 on agriculture, and arrived at the conclusion that FADN offers an
 excellent tool for operationalizing IAS 41 in European farms. The present
 study revisits some of the key issues in Argiles and Slof's paper in a
 wider international context and highlights their implications for the
 harmonization of farm accounting practices around the world. In
 particular, this paper contends that there are some key provisions of IAS
 41 that are incompatible with the European Union Fourth Directive which
 Argiles and Slof (2001, p. 364) apparently overlooked by focusing only on
 aspects of the directive that sanction current value measurement and
 ignoring those that relate to the treatment of associated holding gains or
 losses. Furthermore, this paper also demonstrates that Argiles and Slof's
 argument that simplicity is another improvement of IAS 41 vis-a-vis the
 French Plan Comptable General Agricole is flawed. Indeed, it is shown here
 that it would be virtually impossible to implement IAS 41 in Francophone
 countries in the absence of a fundamental revision, if not complete
 abandonment, of the plan comptable, at least in view of major conceptual
 differences between the notions of income, production and value added
 espoused by national statisticians and those enshrined in IAS 41. 
Journal: European Accounting Review 
Pages: 621-641 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216839 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216839 
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Template-Type: ReDIF-Article 1.0
Author-Name: Anil Arya 
Author-X-Name-First: Anil 
Author-X-Name-Last: Arya 
Author-Name: Jonathan Glover 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Glover 
Author-Name: Pierre Jinghong Liang 
Author-X-Name-First: Pierre Jinghong 
Author-X-Name-Last: Liang 
Title: Intertemporal aggregation and incentives 
Abstract:
  Intertemporal aggregation results in a summarization of information and a
 natural delay in the release of information. We study a principal-agent
 model and show that intertemporal aggregation can be an optimal feature of
 a performance evaluation system. We then highlight subtleties associated
 with valuing additional information as the level of aggregation of
 existing information is varied. 
Journal: European Accounting Review 
Pages: 643-657 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216857 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216857 
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Template-Type: ReDIF-Article 1.0
Author-Name: Annick Bourguignon 
Author-X-Name-First: Annick 
Author-X-Name-Last: Bourguignon 
Title: Performance management and management control: evaluated managers' point of view 
Abstract:
  On the borderline of management control (MC) and human resource
 management (HRM) systems, this article investigates the question of
 performance evaluation criteria, where both systems overlap. The
 perspective is interpretative, with a focus on the individual perceptions
 of evaluated persons. The article develops a framework for thinking and
 studying these criteria and discusses the findings of an empirical study
 showing that managers working in a highly comparable environment (i) have
 very different representations of the number and type of criteria that are
 used for evaluating their performance; (ii) perceive in different ways the
 contribution of MC-sourced criteria as an evaluation basis; and (iii)
 sometimes develop significant representations associated with
 self-presentational strategies. These findings suggest a refinement of
 typologies of organizational control and, more generally, that behavioural
 MC research could fruitfully be developed from the interpretative
 perspective. Practical applications may also be derived, such as the
 relevance of cross-functional performance management. 
Journal: European Accounting Review 
Pages: 659-687 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216875 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216875 
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Template-Type: ReDIF-Article 1.0
Author-Name: Maria Consuelo Pucheta Martinez 
Author-X-Name-First: Maria Consuelo Pucheta 
Author-X-Name-Last: Martinez 
Author-Name: Antonio Vico Martinez 
Author-X-Name-First: Antonio Vico 
Author-X-Name-Last: Martinez 
Author-Name: Maria Antonia Garcia Benau 
Author-X-Name-First: Maria Antonia Garcia 
Author-X-Name-Last: Benau 
Title: Reactions of the Spanish capital market to qualified audit reports 
Abstract:
  Since mandatory auditing of financial statements was first established in
 Spain, very few studies have been conducted to test the information
 content of audit reports in the Spanish capital market. The aim of this
 study is, then, to test empirically whether there is a relationship
 between audit qualifications and stock prices in the context of the
 Spanish market. We have used the event study methodology for this purpose.
 Our findings show that qualified audit reports do not have information
 value for investors. 
Journal: European Accounting Review 
Pages: 689-711 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216848 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216848 
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Template-Type: ReDIF-Article 1.0
Author-Name: John Christian Langli 
Author-X-Name-First: John Christian 
Author-X-Name-Last: Langli 
Author-Name: Shahrokh Saudagaran 
Author-X-Name-First: Shahrokh 
Author-X-Name-Last: Saudagaran 
Title: Taxable income differences between foreign and domestic controlled corporations in Norway 
Abstract:
  Studies mainly in the United States and United Kingdom have documented
 that foreign controlled corporations (FCCs) report significantly lower
 taxable income compared to domestic controlled corporations (DCCs). This
 taxable income differential has been partly attributed to income shifting
 by multinational corporations. Using a sample of 78,879 firm-year
 observations from 1993 to 1996, we find similar systematic differences for
 firms in the manufacturing, retail and wholesale sectors in Norway. The
 taxable income to sales ratio is approximately 2.6 percentage points lower
 for FCCs compared to DCCs after controlling for start-up costs, size,
 industry affiliation, leverage and capital intensity. The results are
 statistically significant in all years and independent of whether taxable
 income is measured as a fraction of sales, total assets or book value of
 equity. Previous research has indicated that income shifting is more
 prevalent among large firms. This study provides evidence on small and
 medium-sized firms operating in Norway. With the exception of really small
 corporations in the manufacturing industry (e.g. with sales less than 6.7
 million NOK or US$1 million), we find that the negative taxable income
 differential exists independent of the size of the corporations. 
Journal: European Accounting Review 
Pages: 713-741 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000237115 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000237115 
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Template-Type: ReDIF-Article 1.0
Author-Name: Johan Christiaens 
Author-X-Name-First: Johan 
Author-X-Name-Last: Christiaens 
Title: Capital assets in governmental accounting reforms: comparing Flemish technical issues with international standards 
Abstract:
  Although some efforts have been made over the last twenty years,
 governmental capital assets are still the subject of many unresolved
 questions. This paper first presents an overview of the current differing
 accounting standards or research efforts with respect to governmental
 capital assets and then analyses the criteria of recognition, valuation
 and disclosure of capital assets in the reform of three kinds of Flemish
 governments. Their reformed accounting system is compared with IPSAS 17
 (IFAC), which is an important internationally driven milestone in respect
 of capital assets. There appears to be a lack of a conceptual framework
 regarding capital assets and an attempt is made to structure the existing
 ideas. Another important issue in governmental accounting is drawing up
 the 'first balance sheet', which is necessary when accounting reforms are
 implemented. This study indicates that the fact that no separate
 accounting framework for capital assets with respect to the first balance
 sheet is distinguished, causes a lot of confusion in the discussion about
 accounting standards. Finally, the paper aims to provide actual cases as
 illustrations in analysing governmental accounting standards for capital
 assets. The examination of the adoption of the governmental accounting
 reforms, reveals that such reforms do not usually take the specific
 governmental characteristics of capital assets into account. 
Journal: European Accounting Review 
Pages: 743-770 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000237133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000237133 
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Handle: RePEc:taf:euract:v:13:y:2004:i:4:p:743-770




Template-Type: ReDIF-Article 1.0
Author-Name: Tom Van Caneghem 
Author-X-Name-First: Tom 
Author-X-Name-Last: Van Caneghem 
Title: The impact of audit quality on earnings rounding-up behaviour: some UK evidence 
Abstract:
  Previous studies (see, for example, Carslaw, 1988; Thomas, 1989; Niskanen
 and Keloharju, 2000; Kinnunen and Koskela, 2002; Van Caneghem, 2002)
 clearly suggest that public companies' managers tend to round up the first
 digit of reported earnings (i.e. for companies reporting profits). Based
 on a sample of listed UK companies and employing earnings rounding-up
 behaviour (henceforth ERUB) as an indication of earnings management, I
 attempt to determine the impact of differences in audit quality on
 earnings management. When I rely on the very popular brand-name proxy
 (i.e. BigFive versus non-BigFive auditors) to capture differences in audit
 quality, findings are inconsistent with BigFive auditors constraining
 earnings management practices (i.e. findings suggest ERUB for both BigFive
 and non-BigFive clients). Employing an alternative proxy (i.e. based on
 auditors' industry expertise), findings are only weakly consistent with
 specialist BigFive auditors constraining earnings management (i.e. ERUB)
 practices. 
Journal: European Accounting Review 
Pages: 771-786 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216866 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216866 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sidney Gray 
Author-X-Name-First: Sidney 
Author-X-Name-Last: Gray 
Author-Name: Kenth Skogsvik 
Author-X-Name-First: Kenth 
Author-X-Name-Last: Skogsvik 
Title: Voluntary disclosures of quoted pharmaceutical companies in Sweden and the UK: the development over the period 1984-98 
Abstract:
  The disclosure behaviour for a sample of quoted Swedish and UK
 pharmaceutical companies is investigated in the paper. The sample consists
 of three Swedish (Astra, Gambro and Pharmacia) and three UK (Glaxo,
 SmithKline Beecham and Wellcome) pharmaceutical companies, whose annual
 financial reports have been studied over the fifteen-year period 1984-98.
 The results show that the companies in both countries consistently have
 provided voluntary disclosures relevant for the assessment of competitive
 advantages, in particular with regard to research and development
 activities. Disclosures concerning business growth, dividend policy and
 earnings persistence, have been more prevalent among the Swedish
 companies, indicating a stronger concern about stock market investors.
 Voluntary segmental disclosures have been similar over time, with a
 reluctance to disclose line-of-business and geographical segment profits.
 Finally, voluntary disclosures explicitly indicating any accounting
 measurement biases have been rare. 
Journal: European Accounting Review 
Pages: 787-805 
Issue: 4 
Volume: 13 
Year: 2004 
X-DOI: 10.1080/0963818042000216884 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000216884 
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Template-Type: ReDIF-Article 1.0
Author-Name: Denis Cormier 
Author-X-Name-First: Denis 
Author-X-Name-Last: Cormier 
Author-Name: Michel Magnan 
Author-X-Name-First: Michel 
Author-X-Name-Last: Magnan 
Author-Name: Barbara Van Velthoven 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Van Velthoven 
Title: Environmental disclosure quality in large German companies: Economic incentives, public pressures or institutional conditions? 
Abstract:
  Investors and stakeholders in continental Europe are becoming
 increasingly concerned about corporate environmental policies. As a
 result, many firms are voluntarily increasing the extent of their
 environmental disclosure in their annual report. While mostly unregulated,
 corporate environmental disclosure does have potential economic
 significance considering the scarcity of alternative information sources.
 The purpose of this study is to identify determinants of corporate
 environmental disclosure using multi-theoretical lenses that rely on
 economic incentives, public pressures and institutional theory. The study
 focuses on large firms from a continental Europe country, Germany, with a
 distinct legal and regulatory context and where environmental concerns are
 especially acute. Results show that Risk, Ownership, Fixed Assets Age,
 Firm Size as well as routine determine the level of environmental
 disclosure by German firms in a given year. Moreover, consistent with
 institutional theory, results suggest that German firms' disclosure is
 converging over time. Overall, results strongly suggest that environmental
 disclosure is multidimensional and is driven by complementary forces. 
Journal: European Accounting Review 
Pages: 3-39 
Issue: 1 
Volume: 14 
Year: 2005 
Keywords: Environmental disclosure, disclosure quality, information costs, routine, public pressures, 
X-DOI: 10.1080/0963818042000339617 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000339617 
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Template-Type: ReDIF-Article 1.0
Author-Name: Lars Hassel 
Author-X-Name-First: Lars 
Author-X-Name-Last: Hassel 
Author-Name: Henrik Nilsson 
Author-X-Name-First: Henrik 
Author-X-Name-Last: Nilsson 
Author-Name: Siv Nyquist 
Author-X-Name-First: Siv 
Author-X-Name-Last: Nyquist 
Title: The value relevance of environmental performance 
Abstract:
  This paper provides insight into how environmental information is
 reflected in the market value of listed Swedish companies. Using the
 residual income valuation model, we express market value of equity as a
 function of book value of equity, accounting earnings, and environmental
 performance, where the last variable is used as a proxy for other
 value-relevant information. Our research is motivated by the
 recommendation of the Swedish Society of Financial Analysts regarding
 environmental reporting. This recommendation assumes that environmental
 information has value relevance, since it is likely to affect the expected
 future earnings of listed companies. We contribute empirical findings to
 current debate on the relationship between environmental performance and
 shareholder value. The cost-concerned school argues that environmental
 investments represent only increased costs, resulting in decreased
 earnings and lower market values. The value creation school regards
 environmental efforts as a way to increase competitive advantage and
 improve financial returns to the investors. The current research finds
 support for the cost-concerned school, because the results indicate that
 environmental performance has a negative influence on the market value of
 firms. 
Journal: European Accounting Review 
Pages: 41-61 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000279722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000279722 
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Template-Type: ReDIF-Article 1.0
Author-Name: Emma Garcia-meca 
Author-X-Name-First: Emma 
Author-X-Name-Last: Garcia-meca 
Author-Name: Isabel Parra 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Parra 
Author-Name: Manuel Larran 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Larran 
Author-Name: Isabel Martinez 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Martinez 
Title: The explanatory factors of intellectual capital disclosure to financial analysts 
Abstract:
  The objective of this paper is to assess the information dealing with
 intellectual capital that firms disclose in presentations to sell-side
 analysts and the influences on these disclosures. Analysis of a sample of
 257 reports from listed Spanish companies for 2000-2001 shows differences
 in disclosure levels by categories of intellectual capital. Companies
 usually report information regarding strategy, customers, and processes;
 information about research, development, and innovation is less often
 reported to financial analysts. Larger companies disclose higher levels of
 intellectual capital information, frequently outside presentations
 conducted after quarterly, half-year, or annual results announcements. 
Journal: European Accounting Review 
Pages: 63-94 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000279713 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000279713 
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Template-Type: ReDIF-Article 1.0
Author-Name: Begona Giner 
Author-X-Name-First: Begona 
Author-X-Name-Last: Giner 
Author-Name: William Rees 
Author-X-Name-First: William 
Author-X-Name-Last: Rees 
Title: Introduction 
Abstract:
Journal: European Accounting Review 
Pages: 95-99 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000338004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000338004 
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Template-Type: ReDIF-Article 1.0
Author-Name: Katherine Schipper 
Author-X-Name-First: Katherine 
Author-X-Name-Last: Schipper 
Title: The introduction of International Accounting Standards in Europe: Implications for international convergence 
Abstract:
  This paper describes several implementation effects associated with the
 mandated adoption of international financial reporting standards
 promulgated by the International Accounting Standards Board in the
 European Union, including a possible increased demand for detailed
 implementation guidance and for a single European securities regulator.
 The paper also discusses the mandated adoption as a research setting for
 considering the relative influences of standards versus incentives as
 determinants of financial reporting outcomes, and describes two standard
 setting challenges that may become more pronounced as a result of the
 mandated adoption. 
Journal: European Accounting Review 
Pages: 101-126 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000338013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000338013 
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Handle: RePEc:taf:euract:v:14:y:2005:i:1:p:101-126




Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Whittington 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Whittington 
Title: The adoption of International Accounting Standards in the European Union 
Abstract:
  This paper discusses the IASB's process of developing accounting
 standards for adoption by listed companies within the European Union.
 Issues addressed include the structure of the IASB, its role as a global
 standard setter and its programme. Particular attention is given to two
 topics that are both controversial and important, accounting for financial
 instruments and reporting financial performance. 
Journal: European Accounting Review 
Pages: 127-153 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000338022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000338022 
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Handle: RePEc:taf:euract:v:14:y:2005:i:1:p:127-153




Template-Type: ReDIF-Article 1.0
Author-Name: Brenda van Tendeloo 
Author-X-Name-First: Brenda 
Author-X-Name-Last: van Tendeloo 
Author-Name: Ann Vanstraelen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Vanstraelen 
Title: Earnings management under German GAAP versus IFRS 
Abstract:
  This paper addresses the question whether voluntary adoption of
 International Financial Reporting Standards (IFRS) is associated with
 lower earnings management. Ball et al. (Journal of Accounting and
 Economics, 36(1-3), pp. 235-270, 2003) argue that adopting high quality
 standards might be a necessary condition for high quality information, but
 not necessarily a sufficient one. In Germany, a code-law country with low
 investor protection rights, a relatively large number of companies have
 chosen to voluntarily adopt IFRS prior to 2005. We investigate whether
 German companies that have adopted IFRS engage significantly less in
 earnings management compared to German companies reporting under German
 generally accepted accounting principles (GAAP), while controlling for
 other differences in earnings management incentives. Our sample,
 consisting of German listed companies, contains 636 firm-year observations
 relating to the period 1999-2001. Our results suggest that IFRS-adopters
 do not present different earnings management behavior compared to
 companies reporting under German GAAP. These findings contribute to the
 current debate on whether high quality standards are sufficient and
 effective in countries with weak investor protection rights. They indicate
 that voluntary adopters of IFRS in Germany cannot be associated with lower
 earnings management. 
Journal: European Accounting Review 
Pages: 155-180 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000338988 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000338988 
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Handle: RePEc:taf:euract:v:14:y:2005:i:1:p:155-180




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Brown 
Author-X-Name-First: Philip 
Author-X-Name-Last: Brown 
Author-Name: Ann Tarca 
Author-X-Name-First: Ann 
Author-X-Name-Last: Tarca 
Title: A commentary on issues relating to the enforcement of International Financial Reporting Standards in the EU 
Abstract:
  The adoption of International Financial Reporting Standards (IFRS) is
 supported in many countries because it may improve the quality and
 international comparability of financial reporting. However, these goals
 are less likely to be achieved without regulatory oversight that promotes
 rigorous and consistent use of IFRS. Consequently the European Union (EU)
 is requiring all member states to introduce enforcement bodies by 2005,
 the date of IFRS adoption in the consolidated financial statements of all
 EU listed companies. We review ongoing activities in France, Germany, the
 Netherlands and the UK in setting up and modifying enforcement bodies
 before 2005. We test current developments against the Federation des
 Experts Comptables Europeens (FEE) (2002) recommendations and against the
 principles for effective enforcement proposed in CESR Standard No. 1 on
 Financial Information. We present the views of people involved in
 financial reporting standard setting and enforcement from these countries,
 as well as the IASB, FEE and EFRAG, about the challenges of achieving
 effective uniform enforcement. Our paper will be of interest to people
 developing or participating in enforcement bodies, and to capital market
 participants who will be subject to the various regulatory regimes. 
Journal: European Accounting Review 
Pages: 181-212 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000338997 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000338997 
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Handle: RePEc:taf:euract:v:14:y:2005:i:1:p:181-212




Template-Type: ReDIF-Article 1.0
Author-Name: Pekka Pirinen 
Author-X-Name-First: Pekka 
Author-X-Name-Last: Pirinen 
Title: Economic and normative pressures as drivers for the adoption of International Accounting Standards in Finland since 1976 
Abstract:
  This paper deals with the internationalisation of Finnish business life
 and the attempts to introduce and apply international accounting standards
 (IASs) in Finnish accounting practice before the latest developments at
 the EU level in 2002. The internationalisation of business life creating
 economic pressures for changes is illustrated. Analysis of four accounting
 issues is made in order to exemplify how IASs have affected Finnish
 accounting legislation and practice. The results of the analysis indicate
 that the effect of IASs has been notable but secondary because of the
 implementation of the EU Directives in Finnish accounting legislation in
 the 1990s. IASs have not caused any drastic changes in accounting practice
 as their requirements have been written as alternatives in legislation.
 This approach has provided a possibility to large, listed companies to
 produce financial accounting information in line with the principles of
 IASs. In the introduction of IASs there have been political aspects when
 justifications for the national model and for the international
 orientation have been presented. 
Journal: European Accounting Review 
Pages: 213-235 
Issue: 1 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000338979 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000338979 
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Handle: RePEc:taf:euract:v:14:y:2005:i:1:p:213-235




Template-Type: ReDIF-Article 1.0
Author-Name: Erik Peek 
Author-X-Name-First: Erik 
Author-X-Name-Last: Peek 
Title: The influence of accounting changes on financial analysts' forecast accuracy and forecasting superiority: Evidence from the Netherlands 
Abstract:
  This study assesses the influence of discretionary accounting changes on
 financial analysts' individual forecast errors in the Netherlands from
 1988 to 1999. It contributes to previous research by examining whether
 accounting changes (1) influence analysts' earnings forecast accuracy; and
 (2) change analysts' forecasting superiority relative to a mechanical
 earnings prediction model because of the change in the time series and
 composition of earnings. The empirical results indicate that changes in
 accounting procedures can significantly affect analysts' forecast accuracy
 and forecasting advantage, conditional on the change-year effect, prior
 disclosure and the type of change. Specifically, this study finds that in
 the year that firms adopt accounting changes with a material effect on
 earnings before extraordinary items, analysts' forecast accuracy
 significantly worsens if the changes have not been previously disclosed.
 Further, in the earliest years after the adoption of changes from current
 cost accounting to historical cost accounting and changes from expensing
 to capitalization analysts' forecast accuracy and forecast superiority
 significantly improves, whereas analysts' forecast accuracy and
 superiority significantly worsens after the adoption of other changes. 
Journal: European Accounting Review 
Pages: 261-295 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Accounting changes, financial analysts, forecast accuracy, earnings predictability, 
X-DOI: 10.1080/0963818042000339626 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000339626 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:261-295




Template-Type: ReDIF-Article 1.0
Author-Name: Jonas Gerdin 
Author-X-Name-First: Jonas 
Author-X-Name-Last: Gerdin 
Title: The Impact of departmental interdependencies and management accounting system use on subunit performance 
Abstract:
  This study examines the effect of departmental interdependencies and the
 use of management accounting information for decision-making on subunit
 performance. It is proposed that higher levels of departmental
 interdependence are associated with (i) the use of greater amounts of MAS
 information during task execution and (ii) a greater frequency of MAS
 information use, which, in turn, are associated with higher subunit
 performance. The empirical analysis based on data collected from 132
 production managers through a survey provides some support for the
 proposition of an indirect effect of interdependence on subunit
 performance, acting through a use of greater amounts of MAS information
 for decision-making, but not for the proposition of an indirect effect
 acting through a more frequent use of MAS information. Furthermore,
 additional analyses indicate that the impact of the use of greater amounts
 of MAS information on subunit performance is substantially more positive
 for departments experiencing higher levels of interdependence compared
 with those experiencing lower levels. 
Journal: European Accounting Review 
Pages: 297-327 
Issue: 2 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500043485 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500043485 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:297-327




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Hartmann 
Author-X-Name-First: Frank 
Author-X-Name-Last: Hartmann 
Title: The impact of departmental interdependencies and management accounting system use on subunit performance: A comment 
Abstract:
Journal: European Accounting Review 
Pages: 329-334 
Issue: 2 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500043527 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500043527 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jonas Gerdin 
Author-X-Name-First: Jonas 
Author-X-Name-Last: Gerdin 
Title: The impact of departmental interdependencies and management accounting system use on subunit performance: A second look 
Abstract:
Journal: European Accounting Review 
Pages: 335-340 
Issue: 2 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500043543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500043543 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:335-340




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Title: 'In the aftermath of crisis: Reflections on the principles, values and significance of academic inquiry in accounting': Introduction 
Abstract:
  Through a select number of essays from leading accounting scholars, this
 special debating forum reflects on how the international academic
 accounting profession has responded in the aftermath of Enron and other
 recent corporate scandals. The presented combination of personal
 experiences and reflections of individuals working in North America,
 Australasia and Europe offers some intriguing insights of the nature of
 different educational arenas and the particular obligations that
 accounting educators must assume and respond to in the future. This
 introduction to the special debating forum explains its remit, summarises
 each individual contribution and analyses the main messages and
 implications to emerge from the forum. 
Journal: European Accounting Review 
Pages: 341-351 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Crisis, corporate scandals, principles of academic inquiry, post-Enron, accounting education, educational reform, learning from international experience, university and professional accounting curricula, 
X-DOI: 10.1080/09638180500127585 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500127585 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:341-351




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Diamond 
Author-X-Name-First: Michael 
Author-X-Name-Last: Diamond 
Title: Accounting education, research and practice: After Enron, where do we go? 
Abstract:
  Recent accounting scandals have brought into question the efficacy of
 accounting education and research and the relationship of accounting
 educators to the profession. This paper calls for a comprehensive
 reassessment of accounting education, especially in terms of:
 undergraduate accounting programs; the development of an approach to
 accounting research and scholarship that is more closely focused on impact
 rather than purely methodological rigor; and the establishment of
 significantly more interaction between the profession and accounting
 educators. These changes, some of which could be painful and disruptive to
 the current structure of accounting departments, must begin to occur or we
 as accounting educators run the risk of being marginalized as the
 accounting profession tries to respond to the needs of society. 
Journal: European Accounting Review 
Pages: 353-362 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Accounting education, liberal arts, life-long learning, curricula reform, research relevance, societal impact, USA, international experience, 
X-DOI: 10.1080/09638180500124855 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500124855 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sue Ravenscroft 
Author-X-Name-First: Sue 
Author-X-Name-Last: Ravenscroft 
Author-Name: Paul Williams 
Author-X-Name-First: Paul 
Author-X-Name-Last: Williams 
Title: Rules, rogues, and risk assessors: Academic responses to Enron and other accounting scandals 
Abstract:
  The recent accounting scandals in the USA and the resulting regulation of
 the US profession via the Sarbanes-Oxley Act have led to the resurrection
 of an old debate: principles vs. rules. We argue that such a debate is
 jejune and serves as little more than a diversion from discussing more
 substantive issues raised by events like Enron and Andersen. Accounting is
 not confronted by a choice of principles to the exclusion of rules or vice
 versa. Principles underlie any set of rules, and any implementation of
 principles will inevitably involve adopting some rules. We take issue with
 various analyses of the accounting scandals that rely too exclusively on
 the principles of neo-classical economics. We conclude by identifying four
 major obstacles impeding meaningful academic and educational treatment of
 the maladies of which Enron is merely a symptom. 
Journal: European Accounting Review 
Pages: 363-372 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Rules versus principles, accounting education, decision-usefulness, accounting scandals, 
X-DOI: 10.1080/09638180500124889 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500124889 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:363-372




Template-Type: ReDIF-Article 1.0
Author-Name: David Cooper 
Author-X-Name-First: David 
Author-X-Name-Last: Cooper 
Author-Name: Jeff Everett 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Everett 
Author-Name: Dean Neu 
Author-X-Name-First: Dean 
Author-X-Name-Last: Neu 
Title: Financial scandals, accounting change and the role of accounting academics: A perspective from North America 
Abstract:
  This paper examines the responses of North American academics to the
 recent wave of accounting and audit scandals, pointing out that the main
 response has either been to appeal to a moralistic concept of ethics or to
 portray them as isolated incidents or indicative of problems elsewhere
 (e.g. relating to investment advice). We suggest that these responses fail
 to address the social and political context of accounting. Drawing on
 Bourdieu's framework for analysing academic work, the paper locates North
 American accounting academia, even though it is quite fragmented and
 diverse, in the Corporate University, and the allegiances of North
 American accounting academics to the accounting industry. However, recent
 scandals also provide an opportunity to intervene effectively and produce
 meaningful change. Through collective action, perhaps through the
 Association for Integrity in Accounting, we offer suggestions for
 interventions to produce substantive and worthwhile changes in teaching
 and research. 
Journal: European Accounting Review 
Pages: 373-382 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Accounting scandals, Association for Integrity in Accounting, symbolic capital, accounting ethics, accounting interventions, accounting academia, 
X-DOI: 10.1080/09638180500124905 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500124905 
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Template-Type: ReDIF-Article 1.0
Author-Name: Lee Parker 
Author-X-Name-First: Lee 
Author-X-Name-Last: Parker 
Title: Corporate governance crisis down under: Post-Enron accounting education and research inertia 
Abstract:
  Australian and New Zealand accounting academic responses to corporate
 governance and reporting failures is a story not simply told in the
 context of high profile international corporate failures such as Enron and
 WorldCom. This study notes a sequence of major Australian corporate
 failures that predate Enron and WorldCom. Through research into
 professional, business and research literature, profession and
 governmental/regulatory websites, and interviews with senior accounting
 academics across Australia and New Zealand, it also highlights a tale of
 limited response by Australian and New Zealand accounting academics and
 investigates the manifest and latent drivers of this inertia. The
 corporatisation and commercialisation of universities and related
 governance processes emerge as root causes of accounting academics'
 general failure to address recent major breakdowns in corporate governance
 and reporting in the business world. The paper closes by reviewing
 opportunities for change in an otherwise embattled environment. 
Journal: European Accounting Review 
Pages: 383-394 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Corporate failures, accounting education, corporate governance, accounting academics, teaching, curricula, 
X-DOI: 10.1080/09638180500126876 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500126876 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:383-394




Template-Type: ReDIF-Article 1.0
Author-Name: David Owen 
Author-X-Name-First: David 
Author-X-Name-Last: Owen 
Title: CSR after Enron: A Role for the academic accounting profession? 
Abstract:
  Post-Enron, there has been a particularly dramatic increase in the
 production of substantial corporate social responsibility and
 sustainability reports. Significantly, issues of reputation, risk
 management and competitive advantage, rather than the discharge of
 accountability, appear to be the driving forces behind such a phenomenon.
 This paper discusses the contribution academic accounting, within both
 research and teaching realms, can make towards addressing this perceived
 imbalance. Drawing upon a review of recent literature, attention is drawn
 to the potential for pursuing a strategy of critical engagement. In the
 research domain, this entails academics being prepared to extend their
 scholarship from a generally prevailing managerialist perspective to the
 point where less comfortable areas of real conflict lie. Equally
 important, on the teaching front, there is a pressing need to challenge
 more robustly the tenets of modern day business, and specifically
 accounting, education which have elevated the principles of property
 rights and narrow self-interest above broader values of community and
 ethics. 
Journal: European Accounting Review 
Pages: 395-404 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Corporate social responsibility (CSR), Enron, critical engagement, the 'business case' for CSR, CSR and teaching, 
X-DOI: 10.1080/09638180500126892 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500126892 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:395-404




Template-Type: ReDIF-Article 1.0
Author-Name: Herve Stolowy 
Author-X-Name-First: Herve 
Author-X-Name-Last: Stolowy 
Title: Nothing like the Enron affair could happen in France (!) 
Abstract:
  This paper reviews the reactions of the French accounting profession and
 academia following the collapse of both Enron and Andersen. It considers
 policy statements and declarations on the part of the accounting
 profession, legislative changes, the general impact on university
 accounting education programmes and specific developments in accounting
 teaching at my own institution, HEC. It considers the value of using
 corporate scandals in the teaching process and claims that more accounting
 theory and ethical issues should be introduced in accounting educational
 programmes. 
Journal: European Accounting Review 
Pages: 405-415 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Enron, accounting education, France, accounting profession, public accountant, statutory auditor, Association Francophone de Comptabilite, 
X-DOI: 10.1080/09638180500126900 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500126900 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:405-415




Template-Type: ReDIF-Article 1.0
Author-Name: Albrecht Becker 
Author-X-Name-First: Albrecht 
Author-X-Name-Last: Becker 
Author-Name: Martin Messner 
Author-X-Name-First: Martin 
Author-X-Name-Last: Messner 
Title: After the scandals: A German-speaking perspective on management accounting research and education 
Abstract:
  As a reaction to recent corporate scandals, corporate law and accounting
 regulations have recently been modified in German-speaking countries.
 Despite changing corporate contexts and agendas, accounting research in
 these countries has been comparatively silent on issues of corporate
 governance. In this paper, we discuss this limited response, focusing
 particularly on the field of management accounting. In German-speaking
 countries, management accounting is conceived of in a specific way
 (usually referred to as Controlling). The traditions of such a practice
 and the associated academic school of thought have made it difficult for
 researchers to consider issues of corporate governance and internal
 control in more empirical depth. Pointing to the importance of
 investigating the actual use of accounting systems and, thus, the social
 and institutional context of accounting, we propose a strategy for
 research and education that would allow for more comprehensive insights
 into the role that (management) accounting might play in corporate
 scandals. 
Journal: European Accounting Review 
Pages: 417-427 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Management accounting, controlling, governance, ethics, accounting education, 
X-DOI: 10.1080/09638180500126926 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500126926 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:417-427




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Gonzalo 
Author-X-Name-First: Jose 
Author-X-Name-Last: Gonzalo 
Author-Name: Anne Garvey 
Author-X-Name-First: Anne 
Author-X-Name-Last: Garvey 
Title: In the aftermath of crisis: The post-Enron implications for Spanish university accounting educators 
Abstract:
  This paper is a consideration of the role that ethics must play in
 accounting education followed by a set of implementation proposals. It is
 based on the lack of response by the profession in Spain, as in some other
 European countries, to the crisis produced by recent financial scandals,
 both at a national and international level. Three proposals are made in
 the paper to reintroduce ethics into accounting education. Firstly, a case
 is made for a more contextual learning of accounting standards. This would
 help to avoid teachers and future professionals becoming passive and blind
 adopters of accounting rules. Secondly, the paper advocates the
 introduction of ethical reasoning in all accounting courses, as the best
 way for students to understand that there is more to the preparation of
 accounts than just following accounting standards. Thirdly, the paper
 points critically to the lack of accountability by professionals who
 prepare financial statements in corporations and supports them being made
 more responsible for their actions. This set of proposals is seen to be
 consistent with the notion of an accounting profession that is ethical at
 an individual level and responsible at a social level. 
Journal: European Accounting Review 
Pages: 429-439 
Issue: 2 
Volume: 14 
Year: 2005 
Keywords: Accounting education, ethics, financial scandals, professional accountability, financial reporting standards, Spain, 
X-DOI: 10.1080/09638180500127791 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500127791 
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Handle: RePEc:taf:euract:v:14:y:2005:i:2:p:429-439




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Christensen 
Author-X-Name-First: Mark 
Author-X-Name-Last: Christensen 
Title: The 'third hand': Private sector consultants in public sector accounting change 
Abstract:
  This paper explores the role of large private sector consulting firms in
 the promotion and implementation of public sector accrual accounting. By
 focusing on an early adopter of accrual accounting for its entire public
 sector, this research presents an analysis of the activities of large
 consulting firms in the process of a significant public sector accounting
 change. The role of consultants in the change is presented by analysing
 primary data extracted from archival sources and oral histories provided
 by a number of prominent actors classified as users of information
 (politicians), producers of information (bureaucrats) or accounting
 consultants. The role and impact of the consulting firms' actions can be
 better understood by applying concepts of non-coercive isomorphism and the
 interplay between self-interest and perceived public interest. The
 consulting firms are shown to have used phantom images to promote the case
 for accounting change. This was done with a zealous belief that bringing
 public sector accounting into line with private sector accounting was an
 inherently righteous objective. 
Journal: European Accounting Review 
Pages: 447-474 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000306217 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000306217 
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:447-474




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Title: The questionable nature of 'third hand' public sector accounting solutions: A case for change? 
Abstract:
  This paper provides a commentary on Mark Christensen's (2005) analysis of
 the role of private sector management consultants in the pursuit of
 accruals-based accounting reforms in the state of New South Wales. The
 commentary gives particular consideration to the role and responsibilities
 of public sector officials in choosing to pursue accruals-based accounting
 reforms. It questions the claimed knowledge basis underpinning such an
 initiative and reviews the more general pertinence of accruals accounting
 to practical public sector financial management issues. In seeking to
 reinforce a number of the messages emanating from Christensen's work, the
 commentary makes a number of suggestions for developing accounting
 research in this area. In particular, it emphasises the need to enhance
 understanding of the operation of accrual accounting systems in practice,
 the epistemic 'communities' serving to promote them and the importance of
 challenging the privileged status so often attached to such
 reforms/technologies. 
Journal: European Accounting Review 
Pages: 475-485 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500256061 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500256061 
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:475-485




Template-Type: ReDIF-Article 1.0
Author-Name: Rick Cuijpers 
Author-X-Name-First: Rick 
Author-X-Name-Last: Cuijpers 
Author-Name: Willem Buijink 
Author-X-Name-First: Willem 
Author-X-Name-Last: Buijink 
Title: Voluntary adoption of non-local GAAP in the European Union: A study of determinants and consequences 
Abstract:
  This study examines the determinants and consequences of voluntary
 adoption of non-local accounting principles (non-local GAAP) by firms
 listed and domiciled in the European Union (EU). We restrict ourselves to
 the two predominant internationally accepted sets of accounting standards:
 International Accounting Standards (IAS) and United States generally
 accepted accounting principles (US GAAP). We have used various sources to
 identify EU firms that use non-local GAAP. We examine the 1999 annual
 reports of all these firms, because accounting standard choices in more
 recent years may be affected by the announcement of the proposal by the
 European Commission in February 2001 to mandate IAS usage from 2005 on.
 The maintained hypothesis is that firms that voluntarily adopt IAS or US
 GAAP expect to experience net benefits from adoption. The finding that 133
 non-financial firms in the EU voluntarily used non-local GAAP in 1999
 suggests that the majority of listed EU firms does not expect to benefit
 from non-local GAAP adoption. By studying the characteristics of non-local
 GAAP adopters this study provides insight into the determinants of
 non-local GAAP adoption. We find that firms voluntarily using non-local
 GAAP are more likely to be listed on a US exchange, the EASDAQ exchange in
 Brussels, and have more geographically dispersed operations. Furthermore,
 they are more likely to be domiciled in a country with lower quality
 financial reporting and where IAS is explicitly allowed as an alternative
 to local GAAP. We also study whether non-local GAAP adopters have lower
 levels of information asymmetry, a much cited benefit of using more
 transparent financial reporting, than non-adopters. We examine three
 proxies for information asymmetry: analyst following, cost of equity
 capital, and uncertainty among analysts and investors (forecast dispersion
 and stock return volatility). We document a positive effect of non-local
 GAAP adoption on analyst following, but fail to find evidence of a lower
 cost of capital for non-local GAAP adopters. Contrary to expectations,
 uncertainty among analysts and investors appears to be higher for firms
 using IAS or US GAAP than for firms using local GAAP. However, by
 comparing 'early' and 'late' adopters, we find some evidence that suggests
 that benefits take some time to fully materialise. 
Journal: European Accounting Review 
Pages: 487-524 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000337132 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000337132 
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:487-524




Template-Type: ReDIF-Article 1.0
Author-Name: Yves Gendron 
Author-X-Name-First: Yves 
Author-X-Name-Last: Gendron 
Author-Name: C. Richard Baker 
Author-X-Name-First: C. Richard 
Author-X-Name-Last: Baker 
Title: On interdisciplinary movements: The development of a network of support around Foucaultian perspectives in accounting research 
Abstract:
  This paper seeks to better understand interdisciplinary movements in the
 making. Our investigation focuses on the processes through which a network
 of support surrounding Michel Foucault's ideas originally developed in the
 sociological and organizational stream of accounting research. Drawing on
 the sociology of translation, we first examine how a network of support
 emerged around the journal Accounting, Organizations and Society (AOS),
 which is generally perceived as the main vector of dissemination of
 sociological and organizational accounting research. Our investigation
 then focuses on how Foucault's ideas, a few years after the founding of
 AOS, came to the attention of a group of accounting academics in the UK -
 a group in which the editor-in-chief of AOS was a key actor. We also
 examine how a network of support surrounding Foucault's ideas subsequently
 developed in the greater accounting research community. Our analysis
 emphasizes the role of epistemological uncertainty in the constitution of
 networks of support around journals and ideas, and the role of trials of
 strength (Latour, 1987) in fuelling or mitigating this uncertainty,
 thereby influencing actors' interests and commitments to particular
 networks. Our analysis also highlights the critical role that imitation
 and social differentiation play in the travel of ideas between scientific
 fields and the creation of scientific knowledge. 
Journal: European Accounting Review 
Pages: 525-569 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500041364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500041364 
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:525-569




Template-Type: ReDIF-Article 1.0
Author-Name: Pat Sucher 
Author-X-Name-First: Pat 
Author-X-Name-Last: Sucher 
Author-Name: Katarzyna Kosmala 
Author-X-Name-First: Katarzyna 
Author-X-Name-Last: Kosmala 
Author-Name: Svetlana Bychkova 
Author-X-Name-First: Svetlana 
Author-X-Name-Last: Bychkova 
Author-Name: Irene Jindrichovska 
Author-X-Name-First: Irene 
Author-X-Name-Last: Jindrichovska 
Title: Introduction: Transitional economies and changing notions of accounting and accountability 
Abstract:
Journal: European Accounting Review 
Pages: 571-577 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000336737 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000336737 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:571-577




Template-Type: ReDIF-Article 1.0
Author-Name: Katarzyna Kosmala 
Author-X-Name-First: Katarzyna 
Author-X-Name-Last: Kosmala 
Title: True and Fair View or rzetelny i jasny obraz ? A survey of polish practitioners 
Abstract:
  The ongoing harmonisation processes with the European market (EC
 regulation 2002 on the application of International Accounting Standards,
 hereafter IAS) drive reforms in the Polish accounting framework. In 2000,
 the Accounting Act introduced significant changes to the 1994 Accounting
 Act, its predecessor. New accounting terminology and provisions based on
 the IAS framework were introduced and a substantial number of existing
 regulations modified. This paper outlines recent developments in Polish
 accounting and discusses their implications for the realisation of the
 True and Fair View construct (hereafter TFV). Legal changes (de jure
 analysis) are confronted with the insights from an exploratory study on
 the local operationalisation of the TFV construct. The questionnaire
 survey with Polish practitioners was conducted in the years 2000 and 2001.
 Then, follow-up interviews were carried out in order to validate the
 questionnaire data categorisation. Insights from the study raise issues of
 the (un)transferability of constructs such as the TFV across languages and
 culture though there is emerging evidence indicating that the current
 regulatory framework putatively supports the TFV concept. In practice,
 there appears to be a lack of consensus in translation and grammatical
 construction of the TFV concept, revealing a general local unfamiliarity
 with the substance of this 'Western'-originated and constructed
 predominantly in the British and American context construct. The paper
 concludes that a Polish equivalent for the TFV as a multifaceted
 construct, a derivative of a hybrid experience, cannot be realised outside
 the localised Central and Eastern European reality in which it is
 situated, despite the new Europe discourse. 
Journal: European Accounting Review 
Pages: 579-602 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000336746 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000336746 
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:579-602




Template-Type: ReDIF-Article 1.0
Author-Name: Irena Solodchenko 
Author-X-Name-First: Irena 
Author-X-Name-Last: Solodchenko 
Author-Name: Pat Sucher 
Author-X-Name-First: Pat 
Author-X-Name-Last: Sucher 
Title: Accounting in Ukraine since independence: Real politik, problems and prospects 
Abstract:
  This paper is a study of the development of accounting in Ukraine since
 1990. Ukraine is one of the states created in post-Soviet space where the
 problems of economic transition have influenced the development of
 accounting. Until 1997, accounting was mainly for the purposes of
 taxation, and the tax inspectorate had a large influence over accounting
 methodology. During the period 1997-99, when accounting and taxation
 reporting were separated, there were favourable conditions for the
 creation of an accounting system appropriate to the business needs of
 Ukraine, however, this opportunity was not grasped. In 2000 Ukraine
 implemented national accounting standards based on International
 Accounting Standards (IAS). It transpired that this was premature. The
 Ukrainian government is now making attempts to return to calculating taxes
 on the basis of financial accounting. This paper investigates the
 influences on the development of accounting since 1990, suggests what
 might be an appropriate system and ends by suggesting that appropriate
 accounting reforms could commence if the accounting elite unified and
 worked with the government in the best national interest. However, this
 may be unlikely, given the political and economic context. 
Journal: European Accounting Review 
Pages: 603-633 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000336755 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000336755 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:603-633




Template-Type: ReDIF-Article 1.0
Author-Name: Irena Jindrichovska 
Author-X-Name-First: Irena 
Author-X-Name-Last: Jindrichovska 
Author-Name: Stuart Mcleay 
Author-X-Name-First: Stuart 
Author-X-Name-Last: Mcleay 
Title: Accounting for good news and accounting for bad news: Some empirical evidence from the Czech Republic 
Abstract:
  This paper is motivated by the links that continue to be forged between
 security pricing and accounting, building on recent findings that firms
 tend to be asymmetrically conservative in the timeliness of earnings
 recognition. The evidence is that firms in the European Union tend to
 recognise unrealised losses more quickly in their earnings than unrealised
 gains (Giner and Rees, 2001; Raonic et al., forthcoming), and there is
 evidence of even greater accounting conservatism in the USA (Basu, 1997;
 Ball et al., 2000; Givoly and Hayn, 2000). This paper investigates whether
 the Czech market exhibits conformity with the behaviour that has been
 documented elsewhere by examining the earnings/returns relationship,
 focusing to begin with on the impact of losses on earnings response
 coefficients and then considering the asymmetric timeliness of income
 recognition in the Czech market. The findings indicate that the Czech
 market is similar to more developed markets, at least in one respect:
 there is statistically significant evidence of different market effects of
 profits and losses, in that profits are more persistent than losses.
 However, contrary to the findings in more developed markets, there is no
 statistically significant evidence of earnings conservatism in the Czech
 market. These results are most probably due to the continuing influence of
 restrictive tax regulations that mitigate any tendency towards
 conservatism, as well as the transitional nature of the economy. A further
 reason is likely to be that the regulatory environment in the Czech
 Republic is close to the kind of stakeholder corporatism that is described
 by Ball et al. (2000), who show that conservatism tends to be less
 pronounced in such regimes where there are fewer managerial incentives to
 bias current earnings. In conclusion, if changes in market prices signal
 good news and bad news about future risky outcomes, there is no evidence
 of asymmetry in the Czech market in accounting for such risks. 
Journal: European Accounting Review 
Pages: 635-655 
Issue: 3 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/0963818042000336764 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0963818042000336764 
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Handle: RePEc:taf:euract:v:14:y:2005:i:3:p:635-655




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 675-676 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500430955 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500430955 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:4:p:675-676




Template-Type: ReDIF-Article 1.0
Author-Name: Valeri Nikolaev 
Author-X-Name-First: Valeri 
Author-X-Name-Last: Nikolaev 
Author-Name: Laurence van Lent 
Author-X-Name-First: Laurence 
Author-X-Name-Last: van Lent 
Title: The endogeneity bias in the relation between cost-of-debt capital and corporate disclosure policy 
Abstract:
  The purpose of this paper is twofold. First, we provide a discussion of
 the problems associated with endogeneity in empirical accounting research.
 We emphasize problems arising when endogeneity is caused by (1)
 unobservable firm-specific factors and (2) omitted variables, and discuss
 the merits and drawbacks of using panel data techniques to address these
 causes. Second, we investigate the magnitude of endogeneity bias in
 Ordinary Least Squares (OLS) regressions of cost-of-debt capital on firm
 disclosure policy. We document how including a set of variables which
 theory suggests to be related with both cost-of-debt capital and
 disclosure and using fixed effects estimation in a panel data-set reduces
 the endogeneity bias and produces consistent results. This analysis
 reveals that the effect of disclosure policy on cost-of-debt capital is
 200% higher than what is found in OLS estimation. Finally, we provide
 direct evidence that disclosure is impacted by unobservable firm-specific
 factors that are also correlated with cost of capital. 
Journal: European Accounting Review 
Pages: 677-724 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500204624 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500204624 
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Handle: RePEc:taf:euract:v:14:y:2005:i:4:p:677-724




Template-Type: ReDIF-Article 1.0
Author-Name: John Burns 
Author-X-Name-First: John 
Author-X-Name-Last: Burns 
Author-Name: Gudrun Baldvinsdottir 
Author-X-Name-First: Gudrun 
Author-X-Name-Last: Baldvinsdottir 
Title: An institutional perspective of accountants' new roles - the interplay of contradictions and praxis 
Abstract:
  Recent years have witnessed a flurry of commentaries, mainly in the
 professional accounting literature, on new business-oriented roles for
 management accountants. Often premised on the generalisation of survey
 data, such work undoubtedly provides useful publicity to the underlying
 trends. However, to date, empirical research into the dynamics of role(s)
 change in actual organisations is scarce. This paper describes the
 emergence of new team/process-oriented roles for so-called 'hybrid'
 accountants in the manufacturing division of a multinational
 pharmaceuticals organisation. Adopting institutional theory, the following
 provides insight into role(s) change, as processes that encompass both
 institutional embeddedness and transformational agency. We highlight
 institutional contradictions that create potential openings for change,
 and discuss the praxis that underpin when, how and why role(s) change is
 carved out. 
Journal: European Accounting Review 
Pages: 725-757 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500194171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500194171 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:4:p:725-757




Template-Type: ReDIF-Article 1.0
Author-Name: Brendan O'Dwyer 
Author-X-Name-First: Brendan 
Author-X-Name-Last: O'Dwyer 
Author-Name: Jeffrey Unerman 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Unerman 
Author-Name: Elaine Hession 
Author-X-Name-First: Elaine 
Author-X-Name-Last: Hession 
Title: User needs in sustainability reporting: Perspectives of stakeholders in Ireland 
Abstract:
  By means of a questionnaire survey, this paper ascertains and analyses
 the views of a number of Irish stakeholders regarding the adequacy and
 potential of corporate sustainability reporting to meet their information
 needs and help them hold corporations to account. The study focuses on
 ascertaining the views of a sample of Irish social and environmental
 non-governmental organisations (NGOs), who we argue constitute an
 important group of non-financial stakeholders. This emphasis on examining
 NGO perceptions represents an attempt to fill a gap in the academic
 sustainability reporting research literature whereby the views of
 non-managerial stakeholders are largely absent. The paper represents the
 second phase of a determined effort to examine the adequacy of
 sustainability reporting from the perspective of less economically
 powerful stakeholders in Ireland and responds specifically to O'Dwyer's
 (2002) call for research to examine the nature of stakeholder demand for
 sustainability reporting in Ireland in order to inform the future
 development of Irish sustainability reporting practices. The results
 present evidence of a widespread demand for mandated, externally verified
 sustainability reporting in either the annual report or a separate
 stand-alone report. This demand is primarily driven by a desire to gain
 knowledge of companies' commitment to responsible business practices but
 is also, albeit to a lesser extent, influenced by the perceived ability of
 sustainability reporting to facilitate increased NGO pressure on
 companies. Current sustainability reporting practice is viewed negatively
 with regard to its credibility and sufficiency, as well as the
 opportunities it provides for engagement with companies, particularly
 among environmental NGO respondents. While respondents tended to be
 suspicious of corporate motives for sustainability reporting, many were
 optimistic about the potential for NGO engagement with companies aimed at
 tackling social and environmental issues and improving current
 sustainability reporting practice. Drawing on the survey results, the
 paper makes some recommendations for future research aimed at improving
 sustainability reporting practices in Ireland and more broadly. 
Journal: European Accounting Review 
Pages: 759-787 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500104766 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500104766 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:4:p:759-787




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Durand 
Author-X-Name-First: Robert 
Author-X-Name-Last: Durand 
Author-Name: Ann Tarca 
Author-X-Name-First: Ann 
Author-X-Name-Last: Tarca 
Title: The impact of US GAAP reconciliation requirements on choice of foreign stock exchange for firms from common law and code law countries 
Abstract:
  The aim of this study is to investigate whether the impact of the SEC's
 Form 20-F reconciliation requirements on non-US firms' choices of foreign
 stock exchanges was different for firms from common law and code law
 countries, that is, for firms with different accounting, legal and
 financial systems. We examined attributes of 253 cross-listed firms from
 the UK, Australia, France, Germany and Japan in the 1999 financial year.
 We found the ability to raise further capital in the home market was
 relevant for firms from both groups. In addition, firms from code law
 countries listing on the NYSE or NASDAQ were more likely to have greater
 foreign revenue and lower leverage. We expected differences in accounting
 requirements to be a greater barrier to listing on the NYSE or NASDAQ for
 code law firms. However, we found firms from code law countries were more
 likely to select a Form 20-F exchange than firms from common law
 countries, providing support for suggestions that a NYSE/NASDAQ
 cross-listing has a bonding role for code law firms. 
Journal: European Accounting Review 
Pages: 789-813 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500108536 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500108536 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:4:p:789-813




Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Hinss 
Author-X-Name-First: Steffen 
Author-X-Name-Last: Hinss 
Author-Name: Alexis Kunz 
Author-X-Name-First: Alexis 
Author-X-Name-Last: Kunz 
Author-Name: Thomas Pfeiffer 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Pfeiffer 
Title: Information management with specific investments and cost-based transfer prices 
Abstract:
  We analyse information flows in a profit-centre organisation with
 internal trade between two risk-neutral divisions. Prior to production,
 the divisions make unverifiable investments in intrafirm synergies. After
 investments are made, the selling division announces a cost-based transfer
 price which includes a mark-up on variable costs. The buying division then
 decides what quantity to purchase at that unit cost. From the head
 office's perspective, the key issues are to influence both, divisional
 investments and the seller's manipulation of the mark-up. To do so, the
 head office can fund a pre-decision information system before divisional
 investments are made. The system produces forward-looking information that
 can be used to improve the divisions' investment decisions, but which
 cannot be used in evaluating their performance. Our analytical framework
 allows us to identify cost and revenue structures for which pre-decision
 information either supports or destroys intrafirm synergies by motivating
 or discouraging divisional investments, thereby resulting in an increase
 in, decrease in or in no impact whatsoever on, firm profit. Among our most
 interesting findings is the counterintuitive result that pre-decision
 information can undermine the incentives of risk-neutral agents to invest
 specifically. Our results add to earlier agency models that found
 different, albeit equally dysfunctional effects of pre-decision
 information. Contrary to these studies, our findings are not driven by
 either risk aversion or rent extraction. 
Journal: European Accounting Review 
Pages: 815-838 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500104659 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500104659 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:4:p:815-838




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Back 
Author-X-Name-First: Peter 
Author-X-Name-Last: Back 
Title: Explaining financial difficulties based on previous payment behavior, management background variables and financial ratios 
Abstract:
  This paper shows evidence that it is possible to explain financial
 difficulties in small and medium sized firms based on non-financial
 variables. The results indicate that the estimated model based on
 non-financial variables classified firms even better than the financial
 ratio model, especially when classifying bankrupt firms and firms with
 payment delays. The best overall classification was achieved using the
 model combining financial ratios and non-financial variables. The
 non-financial variables measuring the number of payment delays were
 statistically the most important. The main implication of the results is
 that non-financial variables embrace important information in attempts to
 explain financial difficulties, and this should be of interest given that
 payment behavior variables (payment delays and payment disturbances) may
 occur more frequently than the publication of intermittent financial
 statements. 
Journal: European Accounting Review 
Pages: 839-868 
Issue: 4 
Volume: 14 
Year: 2005 
X-DOI: 10.1080/09638180500141339 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500141339 
File-Format: text/html
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Handle: RePEc:taf:euract:v:14:y:2005:i:4:p:839-868




Template-Type: ReDIF-Article 1.0
Author-Name: Timo Hyvonen 
Author-X-Name-First: Timo 
Author-X-Name-Last: Hyvonen 
Author-Name: Janne Jarvinen 
Author-X-Name-First: Janne 
Author-X-Name-Last: Jarvinen 
Title: Contract-Based budgeting in health care: A study of the institutional processes of accounting change 
Abstract:
  The managed care system is a provider-purchaser model, in which the
 hospitals sell their output at a predetermined price to public sector
 purchasers. The purpose of contract-based budgeting (CBB) is to control
 the flow of resources in this system so that what is budgeted as revenue
 in the hospitals is budgeted as an expense in the municipalities. This
 study explores the process of how budgetary bias prevails in municipal and
 hospital district budgets despite the introduction of CBB. The data, which
 consists of budgetary documents and interviews, is informed by the
 framework by Burns and Scapens (Management Accounting Research, 11(1), pp.
 3-25, 2000). The results obtained indicate that the changes in budgeting
 practices were not revolutionary, but incorporated the prevailing
 institutionalised practices into new ones. It also appears that the
 municipal frame budgets, conservative revenue estimation and the strict
 requirements for budgetary balance have a great potential to resist
 demands of change originating from outside. 
Journal: European Accounting Review 
Pages: 3-36 
Issue: 1 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500453189 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500453189 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Anne Cazavan-Jeny 
Author-X-Name-First: Anne 
Author-X-Name-Last: Cazavan-Jeny 
Author-Name: Thomas Jeanjean 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Jeanjean 
Title: The negative impact of R&D capitalization: A value relevance approach 
Abstract:
  Accounting for R&D costs is an open issue. SFAS N&#xb0;2 mandates that
 all R&D costs must be immediately expensed. IAS 38 requires capitalization
 of R&D costs if they meet certain criteria. Recent research papers show
 the value relevance of capitalized R&D. We test the value relevance of R&D
 reporting in a sample of 197 French firms between 1993 and 2002. The
 French context provides an interesting field for R&D value relevance
 studies because both accounting treatments of R&D costs (expensing and
 capitalization) are allowed. Unlike previous studies, we find that
 capitalized R&D is negatively associated with stock prices and returns.
 This negative coefficient on capitalized R&D implies that investors are
 concerned with and react negatively to capitalization of R&D. We also find
 that the firms choosing to capitalize (successful) R&D are smaller, more
 highly leveraged, less profitable and have less growth opportunities.
 Taking into account these characteristics, our robustness checks confirm
 that capitalized R&D is not associated with higher prices and is related
 to lower returns. 
Journal: European Accounting Review 
Pages: 37-61 
Issue: 1 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500510384 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500510384 
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Handle: RePEc:taf:euract:v:15:y:2006:i:1:p:37-61




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Nobes 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Nobes 
Author-Name: Hans Robert Schwencke 
Author-X-Name-First: Hans Robert 
Author-X-Name-Last: Schwencke 
Title: Modelling the links between tax and financial reporting: A longitudinal examination of norway over 30 years up to IFRS adoption 
Abstract:
  The operational links between tax and financial reporting vary on a
 continuum from country to country and from period to period. We propose a
 model for how the links vary over time in developed Western countries.
 This takes account of competing purposes for accounting, and the mutual
 reactions of taxation and financial reporting authorities. We illustrate
 the model using the case of Norway over a 30-year period up to the
 adoption of IFRS. This has the incidental benefit of analysing the
 operational links for Norway, which has not been done systematically
 before, at three dates. We also put Norway into the context of four other
 countries by adopting and somewhat enhancing existing methodology. We show
 that Norway has moved from a 'continental' position to one that exceeds
 the disconnection of tax from financial reporting found in the USA or the
 UK. We raise several research questions related to the generalisability of
 our model. 
Journal: European Accounting Review 
Pages: 63-87 
Issue: 1 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500510418 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500510418 
File-Format: text/html
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Handle: RePEc:taf:euract:v:15:y:2006:i:1:p:63-87




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Ohman 
Author-X-Name-First: Peter 
Author-X-Name-Last: Ohman 
Author-Name: Einar Hackner 
Author-X-Name-First: Einar 
Author-X-Name-Last: Hackner 
Author-Name: Anna-Maria Jansson 
Author-X-Name-First: Anna-Maria 
Author-X-Name-Last: Jansson 
Author-Name: Finn Tschudi 
Author-X-Name-First: Finn 
Author-X-Name-Last: Tschudi 
Title: Swedish auditors' view of auditing: Doing things right versus doing the right things 
Abstract:
  This paper aims to describe and analyse the thought patterns of Swedish
 auditors with regard to the way in which they audit information provided
 by listed companies, and possible changes in their duties. Eighty-two
 auditors were interviewed using the repertory grid technique and
 open-ended interview questions. To check the stability in the thought
 patterns of the respondents, six retests were made and, to validate the
 findings, an expert panel and two reference groups consisting of auditors
 and other representatives of the accounting and auditing professions were
 consulted. Distinct patterns emerged in the mean grid of the thought
 patterns of all the respondents. One dimension was related to the time
 perspective, past versus future, and another to auditing practice.
 Auditors devote a relatively long time and considerable effort to objects
 that can be satisfactorily verified, but not to objects that they perceive
 as being of primary importance to investors and other stakeholders. This
 inconsistency in the thought patterns of the auditors is similar to the
 gap between auditing in practice and stakeholders' expectations of
 auditing, which is a phenomenon frequently found in previous research.
 Moreover, the auditors were very reluctant to make statements about any
 information except that elicited according to current practice. In
 addition to this traditional view, the auditors appear to be more
 concerned about their own situation than that of the parties they are
 meant to be protecting. Doing things right seems to be more important than
 doing the right things. That the auditors spend much time on objects that
 they themselves do not consider to be of primary importance for the
 investors and other stakeholders, and their unwillingness to change
 current practice is of great concern in Sweden, where there is a strong
 belief in self-regulation of the auditing profession. 
Journal: European Accounting Review 
Pages: 89-114 
Issue: 1 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500510475 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500510475 
File-Format: text/html
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Handle: RePEc:taf:euract:v:15:y:2006:i:1:p:89-114




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Pirchegger 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Pirchegger 
Title: Hedge accounting incentives for cash flow hedges of forecasted transactions 
Abstract:
  US GAAP as well as IAS (IFRS) contain specific accounting regulations for
 hedging activities. Basically the hedge accounting rules ensure that an
 offsetting gain or loss from a hedging instrument affects earnings in the
 same period as the gain or loss from the hedged item. However, due to the
 way hedge accounting rules are set up, their application turns out to be
 an option rather than an obligation for firms. Recognizing this fact, the
 paper analyses corporate incentives for hedge accounting in the presence
 of a moral hazard problem. We consider a two-period LEN-type agency model
 with a risk averse agent and a risk neutral principal. The principal
 decides upon hedging and motivates effort through an incentive contract
 based on accounting income. We find that in such a setting the principal
 strictly prefers hedging as opposed to no hedging. Whether he prefers
 hedge accounting or not depends on how the firm's overall risk exposure is
 allocated over periods. If risk exposures differ largely over periods the
 principal prefers hedge accounting. Otherwise no hedge accounting is
 preferred. 
Journal: European Accounting Review 
Pages: 115-135 
Issue: 1 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500510509 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500510509 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:1:p:115-135




Template-Type: ReDIF-Article 1.0
Author-Name: Chrystelle Richard 
Author-X-Name-First: Chrystelle 
Author-X-Name-Last: Richard 
Title: Why an auditor can't be competent and independent: A french case study 
Abstract:
  This research proposes an understanding of the role of the relationship
 between the finance director and the auditor in the audit process and its
 effect on audit quality. We adopt an interpretative and qualitative
 approach. Based on 60 interviews, this qualitative method is the object of
 an interpretative process, composed of two complementary theoretical
 fields: contractual economic theories and economic sociology. Two notions
 emerge from this process, which are considered as the interpretation
 bases: relationship dualism (professional/personal relationship) and
 hybrid trust. This interpretative conception leads to a redefinition of
 the relationship between a finance director and an auditor as a peers'
 relationship. The emergence conditions of a peers' relationship are the
 sharing of professional and cultural norms, the frequency of relationship
 and the multiplexity of relationship. A peers' relationship is
 characterised by a hybrid trust, a joint generation of knowledge and a
 role equality. This parity conception of a relationship leads to a new
 reading of the foundations of audit quality that are auditor independence
 and competence. Audit quality appears as a balance between its two
 determinants, competence and independence. 
Journal: European Accounting Review 
Pages: 153-179 
Issue: 2 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500104832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500104832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:2:p:153-179




Template-Type: ReDIF-Article 1.0
Author-Name: Marie Chavent 
Author-X-Name-First: Marie 
Author-X-Name-Last: Chavent 
Author-Name: Yuan Ding 
Author-X-Name-First: Yuan 
Author-X-Name-Last: Ding 
Author-Name: Linghui Fu 
Author-X-Name-First: Linghui 
Author-X-Name-Last: Fu 
Author-Name: Herve Stolowy 
Author-X-Name-First: Herve 
Author-X-Name-Last: Stolowy 
Author-Name: Huiwen Wang 
Author-X-Name-First: Huiwen 
Author-X-Name-Last: Wang 
Title: Disclosure and determinants studies: An extension using the Divisive Clustering Method (DIV) 
Abstract:
  Past accounting research contains an extensive range of disclosure and
 determinants studies. But these studies have one major methodological
 drawback: the disclosure analysis is often restricted to determination of
 the disclosure index, that is, the sum of disclosed items, weighted or
 unweighted. The disclosure profile (which reflects the structure of
 published information) is generally not part of the research design. The
 objective of this paper is to introduce a divisive (descendant) clustering
 method, which splits the sample into homogeneous sub-groups corresponding
 to disclosure patterns (or profiles), for clearer determination of the
 financial characteristics of each group. This methodology is illustrated
 by a study of disclosure on provisions by large French firms. The results
 show that the disclosure pattern is related to provision intensity, size,
 leverage and market expectation, but not to profit, return and industry.
 This new research method is a valuable complementary tool for expanding on
 disclosure and determinants studies, moving from disclosure levels to
 disclosure patterns. 
Journal: European Accounting Review 
Pages: 181-218 
Issue: 2 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500253092 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500253092 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:2:p:181-218




Template-Type: ReDIF-Article 1.0
Author-Name: Sven Modell 
Author-X-Name-First: Sven 
Author-X-Name-Last: Modell 
Title: Institutional and negotiated order perspectives on cost allocations: The case of the Swedish university sector 
Abstract:
  A growing number of studies of the issue of cost allocations based on
 different institutional theories have recently emerged in the management
 accounting literature. These provide an alternative to efficiency-centred
 explanations of the evolution of cost allocation practices and have
 increasingly drawn attention to the roles of competing interests, power,
 agency and politics in the more or less continuous (re-)construction of
 cost allocation rules. This paper extends this literature by combining an
 institutional perspective with insights gleaned from the negotiated order
 (NO) literature, using recent developments in the Swedish university
 sector as an empirical illustration. This draws attention to the role of
 negotiations in the political regulation of costing in a highly
 institutionalised environment. Adopting a comparative, embedded case study
 design we contrast three recent attempts to re-negotiate cost allocation
 rules with varying outcomes. It is concluded that the role of
 institutional factors as well as socio-political negotiations in framing
 the ambiguity associated with cost allocations is important in explaining
 why and how change in cost allocation rules is mobilised or diverted.
 Especially, the NO perspective enriches institutional explanations of the
 stabilising role of power in this respect by drawing attention to how
 power relationships and coalitions of interests are formed around the
 specific issues at stake. This leads to a more dynamic and less atomistic
 conceptualisation of power and agency than in much prior research on the
 institutionalisation of accounting. 
Journal: European Accounting Review 
Pages: 219-251 
Issue: 2 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500252144 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500252144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:2:p:219-251




Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Neves 
Author-X-Name-First: J. C. 
Author-X-Name-Last: Neves 
Author-Name: A. Vieira 
Author-X-Name-First: A. 
Author-X-Name-Last: Vieira 
Title: Improving bankruptcy prediction with Hidden Layer Learning Vector Quantization 
Abstract:
  A Hidden Layer Learning Vector Quantization (HLVQ), neural
 network-learning algorithm is used for correcting the outputs of
 Multilayer Perceptrons (MLP) for predicting corporate bankruptcy. We call
 this method HLVQ-C, and it is shown that it outperforms both discriminant
 analysis and traditional neural networks while significantly reducing type
 I error, which is the type of error that has the highest costs for banks.
 Moreover, our approach gives an estimation of the prediction robustness
 thus providing a useful measure of credit risk, which is of great interest
 for banks, insurance companies and creditors in general. We also show that
 unbalanced samples, containing more financially sound firms than bankrupt
 firms, place a strong bias on the classifiers thus leading to a
 deterioration of type I error accuracy. Although many studies have been
 published on bankruptcy prediction using neural networks or discriminant
 analysis, they used mainly US or UK samples of very limited size. Our
 study is based on industrial French firms, uses a data-set of 583 bankrupt
 firms over the period 1998-2000 and tests the effects of different
 proportions of non-bankrupt firms in the sample. Attention was also given
 to feature selection to reduce the dimensionality of the problem. 
Journal: European Accounting Review 
Pages: 253-271 
Issue: 2 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180600555016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180600555016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:2:p:253-271




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Owusu-Ansah 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Owusu-Ansah 
Author-Name: Stergios Leventis 
Author-X-Name-First: Stergios 
Author-X-Name-Last: Leventis 
Title: Timeliness of corporate annual financial reporting in Greece 
Abstract:
  This paper reports on the results of an empirical investigation of the
 factors that affect timely annual financial reporting practices by 95
 non-financial, group companies listed on the Athens Stock Exchange. A
 descriptive analysis indicates that 92% of the companies reported early
 (relative to the 161-day regulatory deadline), 3% reported on the 161st
 day and 5% reported late. A multivariate regression analysis suggests that
 large companies, service companies and companies audited by the former
 Big-5 audit firms have shorter final reporting lead-time. Our tests
 provide strong empirical evidence to suggest, however, that companies in
 the construction sector, companies whose audit reports were qualified and
 companies that had a greater proportion of their equity shares directly
 and indirectly held by insiders do not promptly release their audited
 financial statements. No empirical evidence was found in support of the
 monitoring cost theory. Policy implications of the results for the
 regulatory agency of the stock market are suggested. 
Journal: European Accounting Review 
Pages: 273-287 
Issue: 2 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180500252078 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180500252078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:2:p:273-287




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Christensen 
Author-X-Name-First: Mark 
Author-X-Name-Last: Christensen 
Title: On public sector accounting change: Epistemic communities, consultants, naive officials and a reply to humphrey 
Abstract:
Journal: European Accounting Review 
Pages: 289-296 
Issue: 2 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180600551544 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180600551544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:2:p:289-296




Template-Type: ReDIF-Article 1.0
Author-Name: Anil Arya 
Author-X-Name-First: Anil 
Author-X-Name-Last: Arya 
Author-Name: John Fellingham 
Author-X-Name-First: John 
Author-X-Name-Last: Fellingham 
Author-Name: Hans Frimor 
Author-X-Name-First: Hans 
Author-X-Name-Last: Frimor 
Author-Name: Brian Mittendorf 
Author-X-Name-First: Brian 
Author-X-Name-Last: Mittendorf 
Title: On the Role of Receivables in Managing Salesforce Incentives 
Abstract:
  Despite the obvious problems associated with collections, firms routinely
 sell on credit. Conventional wisdom suggests offering credit is a
 necessary evil when dealing with insistent cash-constrained customers.
 This paper provides a more positive view of trade credit. We find that
 offering credit can enhance the efficiency of incentive contracts with
 sales personnel. In effect, with a credit sale, a client gets a second
 chance to generate enough cash. The client's second chance gives the sales
 agent another opportunity to demonstrate his past diligence to the firm.
 Moreover, to limit the risk associated with the fact that even a
 high-quality client may fail to eventually come up with funds, the firm
 relies on the accrual system. In particular, the agent's (discretionary
 and early) choice of the bad debt allowance conveys his private
 information regarding client quality; the payments associated with
 subsequent collections/default keep such reporting in check. 
Journal: European Accounting Review 
Pages: 311-324 
Issue: 3 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180600916226 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180600916226 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:3:p:311-324




Template-Type: ReDIF-Article 1.0
Author-Name: Katerina Hellstrom 
Author-X-Name-First: Katerina 
Author-X-Name-Last: Hellstrom 
Title: The Value Relevance of Financial Accounting Information in a Transition Economy: The Case of the Czech Republic 
Abstract:
  The paper investigates the value relevance of accounting information in
 the Czech Republic in 1994-2001. Value relevance is understood as the
 ability of financial statement information to capture or summarise
 information that affects share values and empirically tested as a
 statistical association between market values and accounting values. The
 objective of the study is to investigate the validity of the value
 relevance methodology by finding an accounting setting where the results
 of value relevance tests might be predicted unambiguously. If the results
 of these tests confirm the predicted results, the validity of the value
 relevance methodology might be assumed. A transition economy represented
 by the Czech Republic provides such an institutional and accounting
 setting. It might be assumed that value relevance of accounting
 information is lower in a transitional economy than in a well-developed
 market economy. It can also be assumed that the value relevance increases
 over time as a result of the progress in transition. The results of the
 study confirm these predicted results and give thus supportive evidence of
 the validity of the value relevance methodology. 
Journal: European Accounting Review 
Pages: 325-349 
Issue: 3 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180600916242 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180600916242 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:3:p:325-349




Template-Type: ReDIF-Article 1.0
Author-Name: Seppo Ikaheimo 
Author-X-Name-First: Seppo 
Author-X-Name-Last: Ikaheimo 
Author-Name: Nuutti Kuosa 
Author-X-Name-First: Nuutti 
Author-X-Name-Last: Kuosa 
Author-Name: Vesa Puttonen 
Author-X-Name-First: Vesa 
Author-X-Name-Last: Puttonen 
Title: 'The True and Fair View' of Executive Stock Option Valuation 
Abstract:
  We compare the market values of executive stock option (ESO) trades with
 their Black & Scholes (1973) model values calculated following the major
 accounting standards, SFAS No. 123r and IFRS2. Our results show major
 underpricing compared to the traditional B&S method values. This should be
 considered while applying SFAS No. 123r and IFRS2 for estimating fair
 values. Especially time to expiration has a major influence on the
 undervaluation suggesting that the possibility of a change in corporate
 structure lowers the cost of ESOs to shareholders. 
Journal: European Accounting Review 
Pages: 351-366 
Issue: 3 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180600916267 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180600916267 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:3:p:351-366




Template-Type: ReDIF-Article 1.0
Author-Name: Valerio Antonelli 
Author-X-Name-First: Valerio 
Author-X-Name-Last: Antonelli 
Author-Name: Trevor Boyns 
Author-X-Name-First: Trevor 
Author-X-Name-Last: Boyns 
Author-Name: Fabrizio Cerbioni 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Cerbioni 
Title: Multiple Origins of Accounting? An Early Italian Example of the Development of Accounting for Managerial Purposes 
Abstract:
  Utilising archival materials relating to an Italian pottery manufacturer,
 Manifattura Ginori, this paper examines the development of the company's
 accounting system during the 19th century. By the early 1800s, Manifattura
 Ginori is shown to have developed a double-entry bookkeeping system and to
 have carried out cost calculations. Deficiencies in the archive
 unfortunately do not enable us to determine precisely the nature of the
 links between the cost calculations and the financial accounting system
 during the early decades of the 19th century. However, as the century wore
 on, and the business moved from being an artisanal based manufacturer of
 high quality porcelain to a large-scale, industrial producer of
 utilitarian wares, Manifattura Ginori developed its system of accounting
 to reflect organisational changes and managerial needs. The Ginori
 archives therefore not only provide us with a rare glimpse of accounting
 in an early industrial context in Italy, but also of the use of accounting
 as a mechanism for business management and control in a non-Anglo-Saxon
 context. In particular it allows us to examine the role of accountants, to
 throw light on factors causing accounting change, and the relevance of
 alternative theoretical paradigms in interpreting such changes. By placing
 the experiences of Manifattura Ginori in a context of developments
 elsewhere in Europe, especially Britain and France, some implications can
 be drawn regarding the possibility of multiple origins of accounting
 ideas. 
Journal: European Accounting Review 
Pages: 367-401 
Issue: 3 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180600916275 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180600916275 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:3:p:367-401




Template-Type: ReDIF-Article 1.0
Author-Name: Salim Chahine 
Author-X-Name-First: Salim 
Author-X-Name-Last: Chahine 
Title: Differential Interpretations, Private Information and Trading Volume Around French Firms' Good News vs. Bad News Preliminary Announcements 
Abstract:
  This study provides new evidence that both differential interpretations
 and private information production spur trading volume for a sample of 144
 preliminary earnings announcements in the French markets. After
 partitioning the sample into preliminary announcements that convey good
 news versus bad news, I find that good news stimulates more production of
 private information, whereas bad news leads to more differential
 interpretations. I further find that increased production of private
 information (but not differential interpretations) helps explain trading
 volume around good news preliminary earnings announcements. In contrast,
 differential interpretations (and not private information) help explain
 trading volume around bad news preliminary earnings announcements. 
Journal: European Accounting Review 
Pages: 403-429 
Issue: 3 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180600988811 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180600988811 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:3:p:403-429




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 443-444 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:443-444




Template-Type: ReDIF-Article 1.0
Author-Name: Shane Dikolli 
Author-X-Name-First: Shane 
Author-X-Name-Last: Dikolli 
Author-Name: Igor Vaysman 
Author-X-Name-First: Igor 
Author-X-Name-Last: Vaysman 
Title: Contracting on the Stock Price and Forward-Looking Performance Measures 
Abstract:
  We examine the use of earnings, forward-looking performance measures and
 stock prices in managerial compensation. When the firm's owner and its
 manager have identical time preferences, the stock price is not useful for
 motivating the manager, as it is a noisy aggregation of a forward-looking
 measure and future earnings. In contrast, when the owner and the manager
 have conflicting time preferences, the noisy stock price is useful for
 contracting. If the manager has no access to banking and cannot trade the
 firm's shares, the timeliness of the stock price dominates the extra risk
 imposed by its noise. At the same time, forward-looking performance
 measures (such as customer satisfaction) can induce a desirable allocation
 of management effort between the short term and long term more efficiently
 than the stock price can. Forward-looking performance measures and the
 stock price are thus not direct substitutes in rewarding farsighted
 effort. 
Journal: European Accounting Review 
Pages: 445-464 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601101992 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601101992 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:445-464




Template-Type: ReDIF-Article 1.0
Author-Name: Pascale Lapointe-Antunes 
Author-X-Name-First: Pascale 
Author-X-Name-Last: Lapointe-Antunes 
Author-Name: Denis Cormier 
Author-X-Name-First: Denis 
Author-X-Name-Last: Cormier 
Author-Name: Michel Magnan 
Author-X-Name-First: Michel 
Author-X-Name-Last: Magnan 
Author-Name: Sophie Gay-Angers 
Author-X-Name-First: Sophie 
Author-X-Name-Last: Gay-Angers 
Title: On the Relationship between Voluntary Disclosure, Earnings Smoothing and the Value-Relevance of Earnings: The Case of Switzerland 
Abstract:
  This paper examines whether voluntary disclosure by Swiss firms
 constrains the use of discretionary accruals to smooth earnings, and
 explores the effect of voluntary disclosure on the value relevance of
 earnings. We focus on Swiss firms because Switzerland's financial
 reporting system provides managers with extensive discretion in corporate
 disclosure, and there are important variations in the level of information
 provided in their annual reports. We consider that managers can choose two
 different ways to voluntarily convey information, either through the
 quality and quantity of annual report disclosure or, through compliance
 with International Accounting Standards (IAS)/International Financial
 Reporting Standards (IFRS) or US Generally Accepted Accounting Principles
 (GAAP). Relying on a simultaneous equations approach, our results suggest
 that Swiss firms use discretionary accruals to smooth earnings. However,
 this relation is reduced for firms that voluntarily disclose more
 information in their annual report or comply with IAS/IFRS or US GAAP.
 Moreover, we show that discretionary accruals of high disclosers or of
 firms voluntarily complying with IAS/IFRS or US GAAP receive a lower
 valuation weight. 
Journal: European Accounting Review 
Pages: 465-505 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102040 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:465-505




Template-Type: ReDIF-Article 1.0
Author-Name: James Ohlson 
Author-X-Name-First: James 
Author-X-Name-Last: Ohlson 
Author-Name: Laurence Van Lent 
Author-X-Name-First: Laurence 
Author-X-Name-Last: Van Lent 
Title: Introduction to the Special Section on Conservatism in Accounting 
Abstract:
Journal: European Accounting Review 
Pages: 507-509 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:507-509




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Ryan 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Ryan 
Title: Identifying Conditional Conservatism 
Abstract:
  This paper provides guidance for empiricists interested in measuring
 conditional conservatism and in interpreting associations of those
 measures with variables of interest. I begin by discussing the nature and
 importance of conditional conservatism and surveying the literature
 identifying conditional conservatism. I then describe and comment on the
 various limitations of asymmetric timeliness identified in the literature.
 Despite these limitations, I argue that asymmetric timeliness is the most
 direct implication of conditional conservatism, and that alternative
 measures that have been proposed need not capture any type of
 conservatism. Finally, I provide four specific suggestions for estimating
 asymmetric timeliness and for interpreting it as a measure of conditional
 conservatism. 
Journal: European Accounting Review 
Pages: 511-525 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102099 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102099 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:511-525




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Gassen 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Gassen 
Author-Name: Rolf Uwe Fulbier 
Author-X-Name-First: Rolf Uwe 
Author-X-Name-Last: Fulbier 
Author-Name: Thorsten Sellhorn 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Sellhorn 
Title: International Differences in Conditional Conservatism - The Role of Unconditional Conservatism and Income Smoothing 
Abstract:
  Prior research documents that conditional conservatism, measured as the
 asymmetric timeliness of earnings reflecting bad vs. good news, varies
 with cross-country differences in institutional regimes. In this paper, we
 examine the determinants of conditional conservatism and related earnings
 attributes internationally. First, using panel data, we investigate
 whether competing earnings attributes such as unconditional conservatism
 and income smoothing affect conditional conservatism and its international
 differences. We find that these attributes are predictably correlated with
 conditional conservatism. Second, we address the question whether income
 smoothing and conditional conservatism are two fundamentally different
 earnings attributes. We show theoretically that both attributes yield
 different earnings distributions and that the motivations for producing
 earnings which possess these attributes differ. To test these predictions
 empirically, we calculate firm-specific time-series measures of asymmetric
 timeliness, using a novel trigonometric measure based on the standard Basu
 (1997)-type regression. Using this cross-sectional data, we test whether
 conditional conservatism and income smoothing are different and find them
 to be only weakly correlated for a broad international sample. Also, we
 demonstrate that income smoothing explains international differences in
 conditional conservatism. Finally, we estimate simple determinant models
 of conditional conservatism and income smoothing, showing that both
 earnings attributes are driven by different explanatory firm-level
 factors: Conditional conservatism increases with the importance of debt
 financing, while income smoothing increases with the importance of
 dividends. Despite some important limitations, we believe our results to
 be meaningful because they show that cross-country differences in
 conditional conservatism are influenced by the effects of other accounting
 properties, predominantly income smoothing. Especially, legal regime
 appears to drive income smoothing while losing its explanatory power for
 conditional conservatism when firm-specific factors are controlled for. 
Journal: European Accounting Review 
Pages: 527-564 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102107 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102107 
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Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:527-564




Template-Type: ReDIF-Article 1.0
Author-Name: Kenton Yee 
Author-X-Name-First: Kenton 
Author-X-Name-Last: Yee 
Title: Capitalization of Costs and Expected Earnings Growth 
Abstract:
  This paper offers a model that shows how the capitalization of costs
 affects contemporaneous earnings and the growth path of expected earnings.
 It makes three points. First, reported earnings under successful efforts
 are more price relevant than earnings under full costing or full
 expensing. Second, whether conditional or unconditional, conservatism
 always enhances the growth rate of expected earnings. Third, independent
 of capitalization policy, the long-run expected earnings growth rate
 converges either to the long-run expected free cash flow growth rate or to
 the depreciation rate. Therefore, while capitalization policy affects the
 price relevance of earnings and short-run expected earnings growth, it
 does not affect long-run expected earnings growth. 
Journal: European Accounting Review 
Pages: 565-583 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102149 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102149 
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Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:565-583




Template-Type: ReDIF-Article 1.0
Author-Name: Avraham Beja 
Author-X-Name-First: Avraham 
Author-X-Name-Last: Beja 
Author-Name: Dan Weiss 
Author-X-Name-First: Dan 
Author-X-Name-Last: Weiss 
Title: Some Informational Aspects of Conservatism 
Abstract:
  When two value estimates are about equally likely, conservatism dictates
 reporting the less optimistic one (e.g. Lower of Cost or Market). We use
 an analytical model to investigate informational implications of this
 dictum, and identify types of environments where the conservative
 accounting treatment is more informative than a predetermined choice. The
 bias induced by the conservative choice is found to be adequately
 moderate, never excessive. It benefits users of the financial statements
 that take the reported figures at face value whenever upside errors are
 more costly (possibly only slightly more costly) than similar downside
 errors. Sophisticated users, who know how to give the reports the best
 possible interpretation, benefit from the lower variability, not from the
 bias. These latter benefits are least ambiguous when upside errors and
 downside errors are about equally costly. 
Journal: European Accounting Review 
Pages: 585-604 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102156 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102156 
File-Format: text/html
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Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:585-604




Template-Type: ReDIF-Article 1.0
Author-Name: William Brown 
Author-X-Name-First: William 
Author-X-Name-Last: Brown 
Author-Name: Haihong He 
Author-X-Name-First: Haihong 
Author-X-Name-Last: He 
Author-Name: Karen Teitel 
Author-X-Name-First: Karen 
Author-X-Name-Last: Teitel 
Title: Conditional Conservatism and the Value Relevance of Accounting Earnings: An International Study 
Abstract:
  Using a sample consisting of firms from 20 countries, we investigate
 whether conditional conservatism affects the value relevance of accounting
 earnings. We find that the association of conditional conservatism with
 the value relevance of accounting earnings depends on the country-specific
 level of accrual intensity. That is, in countries with higher accrual
 intensity, conditional conservatism is positively associated with the
 value relevance of earnings. We find that this effect is incremental to
 that of shareholder protection on the value relevance of accounting
 earnings documented in Hung (Journal of Accounting and Economics, 30, pp.
 401-420, 2001). The results are consistent with conditional conservatism
 serving as an efficient contracting role to reduce managers' opportunistic
 behavior in the use of accruals. However, our results also indicate that
 the benefits of conditional conservatism are contextual and are lost in
 countries with lower accrual intensity. 
Journal: European Accounting Review 
Pages: 605-626 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102198 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102198 
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Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:605-626




Template-Type: ReDIF-Article 1.0
Author-Name: Vincent O'connell 
Author-X-Name-First: Vincent 
Author-X-Name-Last: O'connell 
Title: The Impact of Accounting Conservatism on the Compensation Relevance of UK Earnings 
Abstract:
  It has long been established that because of accounting conservatism, the
 contemporaneous correlation between returns and earnings is lower (higher)
 for good (bad) news firm-years. Meanwhile, prior analytical agency work
 suggests that the compensation role of accounting earnings is potentially
 greater (for tasks such as noise filtering and incentive balancing) when
 the contemporaneous correlation between earnings and returns is lower.
 Hence, since accounting conservatism implies that earnings have a lower
 correlation with returns in good news firm-years, the present paper
 hypothesises that UK CEO cash compensation exhibits a stronger (weaker)
 sensitivity to accounting earnings in good (bad) news firm-years. The
 empirical findings offer substantial support for this hypothesis and are
 robust to alternative estimation methodologies. In addition, the results
 appear not to be attributable to the well-established impact of earnings
 persistence on the compensation-earnings association. Overall, the
 findings are consistent with the notion that UK compensation committees
 appear to take cognisance of the impact of accounting conservatism when
 awarding earnings-based compensation. In addition, the present work offers
 additional insights into the nature of the interaction between the
 contracting and valuation roles of accounting numbers. 
Journal: European Accounting Review 
Pages: 627-649 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102222 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102222 
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Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:627-649




Template-Type: ReDIF-Article 1.0
Author-Name: Stella Fearnley 
Author-X-Name-First: Stella 
Author-X-Name-Last: Fearnley 
Title: Book Review 
Abstract:
Journal: European Accounting Review 
Pages: 651-656 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102248 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102248 
File-Format: text/html
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Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:651-656




Template-Type: ReDIF-Article 1.0
Author-Name: Kate Greig 
Author-X-Name-First: Kate 
Author-X-Name-Last: Greig 
Title: EUROPEAN ACCOUNTING REVIEW 
Abstract:
Journal: European Accounting Review 
Pages: 665-668 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601132682 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601132682 
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Handle: RePEc:taf:euract:v:15:y:2006:i:4:p:665-668




Template-Type: ReDIF-Article 1.0
Author-Name: Kate Greig 
Author-X-Name-First: Kate 
Author-X-Name-Last: Greig 
Title: ANNOUNCEMENT 
Abstract:
Journal: European Accounting Review 
Pages: 669-670 
Issue: 4 
Volume: 15 
Year: 2006 
X-DOI: 10.1080/09638180601102263 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180601102263 
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Template-Type: ReDIF-Article 1.0
Author-Name: Lorenzo Patelli 
Author-X-Name-First: Lorenzo 
Author-X-Name-Last: Patelli 
Author-Name: Annalisa Prencipe 
Author-X-Name-First: Annalisa 
Author-X-Name-Last: Prencipe 
Title: The Relationship between Voluntary Disclosure and Independent Directors in the Presence of a Dominant Shareholder 
Abstract:
  Differently from prior studies that examine the role of stand-alone
 control systems within the relationship between owners and managers, our
 study investigates the correlation between two control mechanisms -
 voluntary disclosure and independent directors - in companies
 characterized by the presence of a dominant shareholder that is supposed
 to mitigate the classical agency problem. Based on agency theory, we
 hypothesize that the two mechanisms tend to coexist, since the presence of
 either one reduces the costs of introducing the other. Two further effects
 - the reputation and the domino effect - contribute to determine a
 positive relationship between the two mechanisms. We carried out the
 empirical analysis on 175 non-financial Italian listed companies, all
 controlled by a dominant shareholder. Voluntary disclosure is measured
 through three alternative disclosure indexes. Independent directors are
 identified not only according to a formal/legal definition, but also
 through stricter criteria. The empirical test is based on a multivariate
 analysis controlling for size, residual ownership diffusion, leverage,
 profitability and labour pressure. Results support our hypothesis and are
 robust to alternative criteria to identify dominant shareholders. Our
 study contributes to a better understanding of the relationship between
 different control mechanisms in particular agency settings. 
Journal: European Accounting Review 
Pages: 5-33 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701265820 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701265820 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:5-33




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Carrington 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Carrington 
Author-Name: Bino Catasus 
Author-X-Name-First: Bino 
Author-X-Name-Last: Catasus 
Title: Auditing Stories about Discomfort: Becoming Comfortable with Comfort Theory 
Abstract:
  The sociological strand of auditing research has pointed to some
 difficulties of the American Accounting Association's (AAA) (and
 mainstream) definition asserting that auditing is about 'objectively
 obtaining and evaluating evidence regarding assertions about economic
 actions' (AAA, The Accounting Review, Suppl., 1972, p. 18). Instead,
 auditing has been described as rituals of verification that produce
 comfort. In this paper we seek to widen the understanding of the
 production of comfort by investigating the processes that end up as an
 audit. The processes are investigated by addressing the research question:
 how do auditors perceive the production of comfort? Twenty seniors were
 interviewed on the subject of identified discomforts in the audit process.
 The interviews were designed to identify the main allies and foes in the
 processes that make up an audit. In the presentation of the interviews,
 comfort theory is employed as a device to interpret the seniors'
 statements in terms of comfort as state, comfort as relief and comfort as
 renewal. Our conclusion is that the state of comfort that is demanded to
 become comfortable with an audit changes in relation to which actors get
 involved in the comfort production. Attaining a state of comfort involves
 a decision that sufficient discomforts have been relieved. In addition, as
 the definition of what it means to attain a state of comfort changes, more
 or less comfort as relief is required, and the audit, understood as
 becoming comfortable, is renewed. Suggested by comfort theory, the paper
 in this way develops the idea of auditing as a comfort-producing activity
 by examining three dimensions of audit comfort. 
Journal: European Accounting Review 
Pages: 35-58 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701265846 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701265846 
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Template-Type: ReDIF-Article 1.0
Author-Name: Trevor Hopper 
Author-X-Name-First: Trevor 
Author-X-Name-Last: Hopper 
Author-Name: Maria Major 
Author-X-Name-First: Maria 
Author-X-Name-Last: Major 
Title: Extending Institutional Analysis through Theoretical Triangulation: Regulation and Activity-Based Costing in Portuguese Telecommunications 
Abstract:
  This paper examines why a Portuguese telecommunications company - Marconi
 - adopted activity-based costing (ABC). The focus lies in new
 institutional sociology (NIS), particularly the institutional change model
 of Dillard et al. (Accounting, Auditing and Accountability Journal, 17(4),
 pp. 506-542, 2004), supplemented by theoretical triangulation involving
 economic, labour process and actor network theories to enrich observations
 and extend theory. Why Marconi adopted ABC lay in a complex, interrelated
 chain of institutions, including the parent company, management
 consultants, national and European Union regulators, financial markets and
 consumer associations during market liberalization. ABC was a means and
 symbol of improved competitiveness and efficiency but its diffusion and
 adoption also involved mimetic, coercive and normative factors. In
 regulated environments external legitimacy and efficiency were intertwined
 and demonstrating efficiency using accounting symbols is problematic. The
 results confirm criticisms of early NIS research for dichotomizing
 economic and institutional pressures, assuming private organizations are
 exempt from institutional pressures and neglecting internal organizational
 dynamics. The Dillard et al. model accommodated many features of
 institutionalization but needed extension to incorporate the public
 interest, the role of boundary spanners across social levels and how
 intra-organizational factors and properties of the technology derived
 following translation and praxis play a part. 
Journal: European Accounting Review 
Pages: 59-97 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701265879 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701265879 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:59-97




Template-Type: ReDIF-Article 1.0
Author-Name: Marko Jarvenpaa 
Author-X-Name-First: Marko 
Author-X-Name-Last: Jarvenpaa 
Title: Making Business Partners: A Case Study on how Management Accounting Culture was Changed 
Abstract:
  There has been a lot of debate on the new business-oriented role of
 management accountants during recent years. This paper examines how a case
 company is trying to change its management accounting culture in practice.
 Furthermore, it illustrates how accounting practices are woven into the
 cultural fabric of an organization and the great diversity of practices
 constituting its business orientation. This longitudinal case study
 explores and theorizes the multiple cultural change interventions related
 to management accounting, including how the case company reorganized the
 management accounting organization, implemented new accounting systems and
 innovations, pursued a new kind of human resource management (recruitment,
 training and career planning policies) and set the official corporate
 values in order to support this change. The deepened decentralization of
 the business controller function, combined with the effective and
 increasingly centralized basic accounting systems (such as ERP and
 consolidation packages) and HRM management, were of high importance in
 establishing the new business orientation. Moreover, informal
 interventions such as the role modelling and directing of personal
 attention - carried out by the top management and top financial executives
 - and storytelling, contributed to the constitution of cultural practices.
 Thus, the potential power of these informal change interventions and
 mechanisms should not be underestimated, with further research being, in
 fact, in great need. As its major theoretical development, at the end of
 the report, this study introduces a systematic framework of the cultural
 change interventions related to management accounting. 
Journal: European Accounting Review 
Pages: 99-142 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701265903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701265903 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:99-142




Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Caker 
Author-X-Name-First: Mikael 
Author-X-Name-Last: Caker 
Title: Customer Focus - An Accountability Dilemma 
Abstract:
  Customer-related measures are today often included in management
 accounting systems. In this paper, two situations are displayed where
 these measures are problematic to the managing process. The main argument
 of the paper is that customer accountability may serve to question demands
 for hierarchical accountability, as put forward in management accounting
 systems. The paper is based on a case study, in which two groups show
 strong customer accountability which is disturbing to the managing
 process. In the first group, socializing accountability processes to the
 customers override hierarchical accountability concerning delivery
 performance. In the second group, aligned accountability to customers and
 managers for customer-related measures override hierarchical demands for
 accountability for financial performance. The argument of the paper may be
 taken as a basis to question the broadening of management accounting to
 incorporate customer-related aspects. An organization needs to be managed
 in a balanced way. However, it should not be taken for granted that all
 aspects need to be incorporated into management accounting. With strong
 customer accountability, management accounting may need to be devoted to
 classical tasks of emphasizing financial performance and formalized
 processes. 
Journal: European Accounting Review 
Pages: 143-171 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701265911 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701265911 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:143-171




Template-Type: ReDIF-Article 1.0
Author-Name: Robert H. Chenhall 
Author-X-Name-First: Robert H. 
Author-X-Name-Last: Chenhall 
Author-Name: Frank Moers 
Author-X-Name-First: Frank 
Author-X-Name-Last: Moers 
Title: The Issue of Endogeneity within Theory-Based, Quantitative Management Accounting Research 
Abstract:
  A current issue of potential concern in theory-based management
 accounting research is the extent to which endogeneity limits the validity
 of empirical testing of models. This paper aims to stimulate debate as to
 the meaning of endogeneity as it applies to (management) accounting
 research. The paper explains what endogeneity is, its causes and
 consequences, and potential ways of managing the problem. Specifically,
 the paper argues that an econometric definition of endogeneity clarifies
 its meaning in empirical research. A series of basic issues that concern
 endogeneity and theory construction are presented. These include omitted
 variables, simultaneity, equilibrium conditions and issues concerning
 choice variables. Finally, possible approaches for dealing with
 endogeneity are presented. 
Journal: European Accounting Review 
Pages: 173-196 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701265937 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701265937 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:173-196




Template-Type: ReDIF-Article 1.0
Author-Name: Laurence Van Lent 
Author-X-Name-First: Laurence 
Author-X-Name-Last: Van Lent 
Title: Endogeneity in Management Accounting Research: A Comment 
Abstract:
  Chenhall and Moers (European Accounting Review, this issue, pp. 173-195)
 provide an excellent overview of the econometrics of endogeneity. In
 response to their discussion I argue that researchers should be courageous
 enough to set aside endogeneity concerns when their research question is
 important. Theory does not admit a definite answer to the question whether
 endogeneity is present in a particular model and econometrics has few
 technical solutions to offer. Since we cannot be sure endogeneity exists,
 and if we were to be sure of its existence, there is little we can do
 about it, researchers are well advised to move on to more serious
 problems. 
Journal: European Accounting Review 
Pages: 197-205 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701269863 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701269863 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:197-205




Template-Type: ReDIF-Article 1.0
Author-Name: David F. Larcker 
Author-X-Name-First: David F. 
Author-X-Name-Last: Larcker 
Author-Name: Tjomme O. Rusticus 
Author-X-Name-First: Tjomme O. 
Author-X-Name-Last: Rusticus 
Title: Endogeneity and Empirical Accounting Research 
Abstract:
  The discussion reinforces and expands on some of the fundamental issues
 about endogeneity raised by Chenhall and Moers (European Accounting
 Review, this issue, pp. 173-195). We focus on the econometric problems
 researchers encounter when investigating the performance effects of some
 endogenous firm choice. Our points are illustrated using the classic
 research question about the relation between managerial equity ownership
 and firm value. We consider cases where ownership is treated as an
 exogenous, endogenous and 'partially' endogenous variable. We argue
 treating ownership as an exogenous variable is seriously flawed.
 Unfortunately, when ownership is at least partially endogenous, it is
 necessary for empirical researchers to identify exogenous variables that
 are the determinants of the ownership choice. This calls for better theory
 to guide the empirical work. 
Journal: European Accounting Review 
Pages: 207-215 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701269905 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701269905 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:207-215




Template-Type: ReDIF-Article 1.0
Author-Name: Robert H. Chenhall 
Author-X-Name-First: Robert H. 
Author-X-Name-Last: Chenhall 
Author-Name: Frank Moers 
Author-X-Name-First: Frank 
Author-X-Name-Last: Moers 
Title: Endogeneity: A Reply to Two Different Perspectives 
Abstract:
Journal: European Accounting Review 
Pages: 217-221 
Issue: 1 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701269913 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701269913 
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Handle: RePEc:taf:euract:v:16:y:2007:i:1:p:217-221




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Amen 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Amen 
Title: Simulation-Based Comparison of Existent IAS 19 Accounting Options 
Abstract:
  We focus on accounting for unfunded defined benefit pension plans
 according to IAS 19 and compare the option to recognise any actuarial gain
 or loss immediately outside profit or loss in a separate statement within
 equity ('equity approach') with the 'corridor approach'. The objective is
 to detect systematic differences in long-term pure accounting effects,
 which can be seen by the different cumulated net-amounts not (yet)
 recognised in profit or loss. Due to the complexity and the probabilistic
 elements, human expectations on system behaviour often fail. Therefore, we
 have performed the first Monte-Carlo-simulation study of the accounting
 options. The assumptions concerning input data are based on official
 German statistics and, therefore, are representative at least for Germany
 and similar countries. As a result, the belief of long-term offsetting of
 cumulated actuarial gains and losses is not accurate. The former
 unforeseeable consequences are the following: if we apply the equity
 approach we identify a tendency for a quasi-permanent cumulated actuarial
 net-gain (regenerating workforce) or a permanent cumulated actuarial
 net-loss (degenerating workforce) recognised outside profit or loss. If
 the corridor approach is applied, a tendency for quasi-permanent cumulated
 unrecognised net-gains is reported while amortising any corridor excess in
 the case of a regenerating workforce. 
Journal: European Accounting Review 
Pages: 243-276 
Issue: 2 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701390925 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701390925 
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Template-Type: ReDIF-Article 1.0
Author-Name: Patric Andersson 
Author-X-Name-First: Patric 
Author-X-Name-Last: Andersson 
Author-Name: Niclas Hellman 
Author-X-Name-First: Niclas 
Author-X-Name-Last: Hellman 
Title: Does Pro Forma Reporting Bias Analyst Forecasts? 
Abstract:
  Standard setters put much effort into the development of 'better'
 financial reporting standards, that is, standards that more accurately
 capture the economic substance of business activities. However, the more
 sophisticated accounting treatments caused by new standards, and the
 growing complexity of business activities as such, has made financial
 reports more difficult to understand. In response to this situation, some
 companies use pro forma reporting, which means that certain complex items
 required by financial reporting standards are excluded. This study adopts
 a user perspective and investigates how pro forma reporting affects
 analysts' judgments in an experimental setting. On the basis of
 psychological theory, our hypothesis suggests that analysts' judgments
 will be affected by differences in the way company performance is
 presented. Our results show that analysts who received both pro forma and
 Generally Accepted Accounting Principles (GAAP) information made
 significantly higher earnings per share (EPS) forecasts than those who
 received GAAP information only. It is argued that positive framing and
 higher levels of anchor explain this result, which suggests in turn that
 analysts' EPS forecasts can be manipulated by alternative ways of
 presenting company performance. Some possible implications of this finding
 for standard setters are discussed. 
Journal: European Accounting Review 
Pages: 277-298 
Issue: 2 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701390966 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701390966 
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Handle: RePEc:taf:euract:v:16:y:2007:i:2:p:277-298




Template-Type: ReDIF-Article 1.0
Author-Name: Jose L. Arquero 
Author-X-Name-First: Jose L. 
Author-X-Name-Last: Arquero 
Author-Name: Trevor Hassall 
Author-X-Name-First: Trevor 
Author-X-Name-Last: Hassall 
Author-Name: John Joyce 
Author-X-Name-First: John 
Author-X-Name-Last: Joyce 
Author-Name: Jose A. Donoso 
Author-X-Name-First: Jose A. 
Author-X-Name-Last: Donoso 
Title: Accounting Students and Communication Apprehension: A Study of Spanish and UK Students 
Abstract:
  Accounting is about measuring and communicating. Accounting bodies and
 employers have expressed opinions, which have been supported by research
 results, advocating that greater emphasis is placed on the development of
 communication skills throughout the education and training of accountants.
 Consequently, an increasing number of accounting programmes now include
 communication skills as educational objectives or learning outcomes, and
 have integrated activities into the curriculum specifically to develop
 these skills. It is important to recognise that certain factors can
 severely restrict the development of communication skills; a major factor
 is communication apprehension. Research suggests that the existence of
 high levels of communication apprehension will make efforts to improve
 communication skills ineffective. Previous research findings indicate that
 accounting students have high levels of communication apprehension. This
 paper compares and contrasts the levels and profiles of communication
 apprehension exhibited by accounting students at the (UK University) and
 those at the (ESP University). The levels of communication apprehension
 are also compared with those of students from other disciplines at the
 same institutions. The results confirm the high levels of communication
 apprehension in European accounting students. There are notable
 differences between the two countries however in certain underlying
 factors. 
Journal: European Accounting Review 
Pages: 299-322 
Issue: 2 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701391337 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701391337 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:2:p:299-322




Template-Type: ReDIF-Article 1.0
Author-Name: Joerg-Markus Hitz 
Author-X-Name-First: Joerg-Markus 
Author-X-Name-Last: Hitz 
Title: The Decision Usefulness of Fair Value Accounting - A Theoretical Perspective 
Abstract:
  Regulators such as the SEC and standard setting bodies such as the FASB
 and the IASB argue the case for the conceptual desirability of fair value
 measurement, notably on the relevance dimension. Recent standards on
 financial instruments and certain non-financial items adopt the new
 measurement paradigm. This paper takes issue with the notion of decision
 usefulness of a fair-value-based reporting system from a theoretical
 perspective. Emphasis is put on the evaluation of the theoretical
 soundness of the arguments put forward by regulators and standard setting
 bodies. The analysis is conducted as economic (a priori) analysis. Two
 approaches to decision usefulness are adopted, the measurement or
 valuation perspective and the information perspective. Findings indicate
 that the decision relevance of fair value measurement can be justified
 from both perspectives, yet the conceptual case is not strong. The
 information aggregation notion that underlies standard setters'
 endorsement of fair value measurement turns out to be theoretically
 restricted in its validity and applicability. Also, comparative analysis
 of fair value accounting vs. historical cost accounting yields mixed
 results. One immediate implication of the research - a condition for the
 further implementation of fair value accounting - is the need to clarify
 standard setters' notion of accounting income, its presumed contribution
 to decision relevance and its disaggregation. 
Journal: European Accounting Review 
Pages: 323-362 
Issue: 2 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701390974 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701390974 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:2:p:323-362




Template-Type: ReDIF-Article 1.0
Author-Name: Jari Huikku 
Author-X-Name-First: Jari 
Author-X-Name-Last: Huikku 
Title: Explaining the Non-Adoption of Post-Completion Auditing 
Abstract:
  This field study examines reasons for the non-adoption of post-completion
 auditing (PCA) of capital investments. The empirical evidence is based
 primarily on interviews conducted in the 30 largest Finnish manufacturing
 companies. PCA can be briefly described as a formal process that checks
 the outcomes of individual investment projects after the initial
 investment is completed and the project is operational. Management Control
 Systems and PCA literatures suggest that different control systems can act
 as alternatives for each other. This paper specifically analyzes and maps
 alternate capital investment controls (ACICs) that enable the achievement
 of benefits suggested for PCA and draws upon the equifinality concept to
 discuss the role of ACICs in discouraging PCA adoption. The findings
 suggest that ACICs do exist, and, therefore, PCA non-adopters do not
 necessarily jeopardize successful capital investments. The ACICs
 identified in this study included formal and informal systems and
 procedures for performance measurement (e.g. following up production key
 figures, sales and profit centers) and organizational learning (e.g.
 utilizing central expertise and experienced internal resources).
 Furthermore, the empirical evidence from this study suggests that smaller
 companies with fewer major strategic, complex and repetitive capital
 investments can perceive ACICs to be sufficient, and discourage the
 adoption of formal PCA. 
Journal: European Accounting Review 
Pages: 363-398 
Issue: 2 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701391006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701391006 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:2:p:363-398




Template-Type: ReDIF-Article 1.0
Author-Name: Musa Mangena 
Author-X-Name-First: Musa 
Author-X-Name-Last: Mangena 
Author-Name: Venancio Tauringana 
Author-X-Name-First: Venancio 
Author-X-Name-Last: Tauringana 
Title: Corporate Compliance with Non-Mandatory Statements of Best Practice: The Case of the ASB Statement on Interim Reports 
Abstract:
  This paper contributes to our understanding of compliance with
 non-mandatory statements of best practice. Specifically, we examine the
 efficacy of agency-related mechanisms on the degree of disclosure
 compliance with the ASB Statement on interim reports. Using data drawn
 from a sample of 259 UK companies listed on the London Stock Exchange, we
 show that although overall disclosure compliance is high (74.5% of the
 items of information being disclosed), companies do not fully comply with
 the ASB Statement on interim reports. We employ an ordinary least square
 (OLS) regression model to establish whether selected company-specific and
 corporate governance characteristics (proxying for agency-related
 mechanisms) are related to the degree of disclosure compliance. Our
 results indicate that multiple listing, company size, interim dividend and
 new share issuance are positively associated with the degree of
 compliance. We also find that the degree of disclosure compliance is
 positively associated with auditor involvement, audit committee
 independence and audit committee financial expertise. These results have
 important implications for policy because they suggest that whilst
 agency-related mechanisms may motivate compliance with best practice
 non-mandatory statements, full compliance may be unattainable without
 regulations. 
Journal: European Accounting Review 
Pages: 399-427 
Issue: 2 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701391014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701391014 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:2:p:399-427




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Piot 
Author-X-Name-First: Charles 
Author-X-Name-Last: Piot 
Author-Name: Remi Janin 
Author-X-Name-First: Remi 
Author-X-Name-Last: Janin 
Title: External Auditors, Audit Committees and Earnings Management in France 
Abstract:
  We investigate the effect of various audit quality dimensions (i.e.
 auditor reputation and tenure, audit committee existence and independence)
 on earnings management in France. We thus contribute to the empirical
 audit quality literature in a Continental European environment that
 markedly differs from the USA in terms of auditing and corporate
 governance. The main findings are that: (1) the presence of an audit
 committee (but not the committee's independence) curbs upward earnings
 management; and (2) the presence of a Big Five auditor makes no difference
 regarding earnings management activities. Implications of these findings
 are discussed with regard to the specificities of the French auditing and
 governance settings. In particular, although the audit committee acts as a
 device to control the more egregious (i.e. income-increasing) forms of
 earnings management, the monitoring incentive of outside directors may be
 hampered by the collective board responsibility for financial reporting
 quality. Second, the lack of differentiation among Big Five auditors in
 terms of accounting conservatism is consistent with the lower litigation
 risk offered by the French Civil Code (vs. the US Common Law system),
 which is likely to eliminate the deep pockets incentive for investors. 
Journal: European Accounting Review 
Pages: 429-454 
Issue: 2 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701391030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701391030 
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Handle: RePEc:taf:euract:v:16:y:2007:i:2:p:429-454




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Byrne 
Author-X-Name-First: Sean 
Author-X-Name-Last: Byrne 
Author-Name: Bernard Pierce 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Pierce 
Title: Towards a More Comprehensive Understanding of the Roles of Management Accountants 
Abstract:
  The study was designed to address specific gaps in the literature by
 identifying a comprehensive set of antecedents and characteristics with
 respect to the roles of management accountants (MAs) and exploring the
 consequences of how these roles are discharged. Interviews were conducted
 with 18 financial managers (FMs) and 18 operating managers (OMs) in medium
 and large manufacturing firms. Theoretical lenses of management control,
 contingency and role theory were used in the interpretation of the
 findings. A comprehensive picture of the antecedents, characteristics and
 consequences associated with the roles of MAs emerges from the data and
 the findings suggest that management and the MAs themselves play a
 critical part in the determination of the roles of MAs. In particular, the
 findings reveal contingencies and conflicts with regard to the interaction
 between MAs and OMs including the management control consequences
 associated with how MAs interact with OMs. For some MAs, the paper argues
 that role conflict, despite its negative connotations, may facilitate more
 effective management control. The adoption of a 'business partner' model
 for MAs is found here to be ambiguous, conditional and uncertain. 
Journal: European Accounting Review 
Pages: 469-498 
Issue: 3 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701507114 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701507114 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:3:p:469-498




Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Cugini 
Author-X-Name-First: Antonella 
Author-X-Name-Last: Cugini 
Author-Name: Antonella Caru 
Author-X-Name-First: Antonella 
Author-X-Name-Last: Caru 
Author-Name: Fabrizio Zerbini 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Zerbini 
Title: The Cost of Customer Satisfaction: A Framework for Strategic Cost Management in Service Industries 
Abstract:
  Customer satisfaction has long been considered a milestone in the path
 towards company profitability. Although it is widely acknowledged that
 customer satisfaction leads to higher and more stable revenues, the
 relationship between customer satisfaction levels and the costs that the
 company incurs in producing and delivering customer services has received
 far less attention, and the research results vary significantly across
 sectors. In fact, there seems to be little guidance for linking company
 costs to the key elements involved in providing customer satisfaction in
 services, thereby diminishing the ability of a company to manage its
 activities accordingly. In this paper, we propose and test a framework to
 analyse and manage the relationship between company costs and customer
 satisfaction in service industries. Based on a case study from the tourism
 industry, we show how service components can be used as a key medium to
 link customer satisfaction to the cost of service production and delivery.
 In doing so, we provide guidance for identifying specific sources of
 customer satisfaction and assessing their cost, thereby extending to
 service industries previous research on strategic cost management. 
Journal: European Accounting Review 
Pages: 499-530 
Issue: 3 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701507130 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701507130 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:3:p:499-530




Template-Type: ReDIF-Article 1.0
Author-Name: Lili-Anne Kihn 
Author-X-Name-First: Lili-Anne 
Author-X-Name-Last: Kihn 
Title: Financial Consequences in Foreign Subsidiary Manager Performance Evaluations 
Abstract:
  This explorative study contributes to the limited body of knowledge on
 the financial impacts of using multiple forms of controls in managerial
 performance evaluations. The study explores (1) how short-term
 profitability is affected by headquarters' emphasis on financial,
 nonfinancial and selected behavioral controls in the performance
 evaluation of overseas subsidiary managers, and (2) whether the effects of
 such evaluations vary with perceived environmental changes. Documentary
 and survey data for a sample of multinational companies headquartered in
 Finland propose that the emphasis of financial controls by top management
 improves short-term profitability more than an emphasis on nonfinancial or
 behavioral controls. Simultaneous emphasis of all three types of controls
 does not significantly increase short-term profitability over an emphasis
 on financial controls, because the positive effect of behavioral controls
 is mostly offset by a negative effect of nonfinancial controls. Perceived
 environmental changes appear to moderate the relationship between the
 headquarters' emphasis on nonfinancial controls and short-term
 profitability. These findings imply that in the short-term and regardless
 of the environmental contingencies analyzed, financial controls are more
 effective than nonfinancial or behavioral controls in improving
 profitability, but packages comprising financial and behavioral (action
 accountability) controls in particular can improve short-term
 profitability even more. 
Journal: European Accounting Review 
Pages: 531-554 
Issue: 3 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701507148 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701507148 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:3:p:531-554




Template-Type: ReDIF-Article 1.0
Author-Name: S. Lim 
Author-X-Name-First: S. 
Author-X-Name-Last: Lim 
Author-Name: Z. Matolcsy 
Author-X-Name-First: Z. 
Author-X-Name-Last: Matolcsy 
Author-Name: D. Chow 
Author-X-Name-First: D. 
Author-X-Name-Last: Chow 
Title: The Association between Board Composition and Different Types of Voluntary Disclosure 
Abstract:
  This study examines the association between board composition and
 voluntary disclosure in annual reports. In particular, it addresses the
 incentives within the agency theory framework for both inside and
 independent directors to disclosure additional information voluntarily.
 Further, it provides evidence on the relation between the overall total
 voluntary disclosure and the components of voluntary disclosure, such as
 forward looking, strategic, non-financial and historical financial
 disclosures and board composition. Our sample is based on 181 Australian
 companies. We have developed and hand-collected 67 items from annual
 reports to develop the total voluntary disclosure index and the
 sub-indices of voluntary disclosure. Using two-stage multivariate
 analyses, our results provide some important insights. First, we find that
 there is a positive association between board composition and the
 voluntary disclosure of information in annual reports. Second, we also
 find that independent boards provide more voluntary disclosure of forward
 looking information and strategic information. However, board structure
 has no bearing on the voluntary disclosure of non-financial and historical
 financial information. Our findings are enhanced by different empirical
 specifications and sensitivity tests. 
Journal: European Accounting Review 
Pages: 555-583 
Issue: 3 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701507155 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701507155 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:3:p:555-583




Template-Type: ReDIF-Article 1.0
Author-Name: Joanne Locke 
Author-X-Name-First: Joanne 
Author-X-Name-Last: Locke 
Author-Name: Alan Lowe 
Author-X-Name-First: Alan 
Author-X-Name-Last: Lowe 
Title: XBRL: An (Open) Source of Enlightenment or Disillusion? 
Abstract:
  Extensible Business Reporting Language (XBRL) is being adopted by
 European regulators as a data standard for the exchange of business
 information. This paper examines the approach of XBRL International (XII)
 to the meta-data standard's development and diffusion. We theorise the
 development of XBRL using concepts drawn from a model of successful open
 source projects. Comparison of the open source model to XBRL enables us to
 identify a number of interesting similarities and differences. In common
 with open source projects, the benefits and progress of XBRL have been
 overstated and 'hyped' by enthusiastic participants. While XBRL is an open
 data standard in terms of access to the equivalent of its 'source code' we
 find that the governance structure of the XBRL consortium is significantly
 different to a model open source approach. The barrier to participation
 that is created by requiring paid membership and a focus on transacting
 business at physical conferences and meetings is identified as
 particularly critical. Decisions about the technical structure of XBRL,
 the regulator-led pattern of adoption and the organisation of XII are
 discussed. Finally areas for future research are identified. 
Journal: European Accounting Review 
Pages: 585-623 
Issue: 3 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701507163 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701507163 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:3:p:585-623




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Reckers 
Author-X-Name-First: Philip 
Author-X-Name-Last: Reckers 
Author-Name: Marianne Jennings 
Author-X-Name-First: Marianne 
Author-X-Name-Last: Jennings 
Author-Name: D. Jordan Lowe 
Author-X-Name-First: D. Jordan 
Author-X-Name-Last: Lowe 
Author-Name: Kurt Pany 
Author-X-Name-First: Kurt 
Author-X-Name-Last: Pany 
Title: Judges' Attitudes toward the Public Accounting Profession 
Abstract:
  This paper presents the results of two related studies. In Study One we
 examine US judges' attitudes toward the public accounting profession and
 the extent to which those attitudes have changed over three distinct
 periods of time: (a) early in the decade of the 1990s, (b) late in the
 decade of the 1990s, but before the Enron and subsequent corporate
 debacles, and (c) three years after the Enron debacle. We anticipate that
 attitudes of judges toward the public accounting profession will be
 relatively stable over time, but nonetheless subject to change if given a
 substantial stimulus. In Study Two we compare the most current judges'
 attitudes with those of law students, MBA students and auditors. In total,
 we find that judges' attitudes are significantly (1) more negative towards
 the profession in the most recent survey, (2) equivalent to attitudes
 exhibited by law students and MBA students, and (3) divergent from
 attitudes of practicing auditors. Conclusions and future research are also
 discussed. 
Journal: European Accounting Review 
Pages: 625-645 
Issue: 3 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701507197 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701507197 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:3:p:625-645




Template-Type: ReDIF-Article 1.0
Author-Name: Naomi Soderstrom 
Author-X-Name-First: Naomi 
Author-X-Name-Last: Soderstrom 
Author-Name: Kevin Jialin Sun 
Author-X-Name-First: Kevin Jialin 
Author-X-Name-Last: Sun 
Title: IFRS Adoption and Accounting Quality: A Review 
Abstract:
  In 2002, the European Union (EU) Parliament passed a regulation that
 requires consolidated and simple accounts for all companies listed in the
 EU to use International Financial Reporting Standards (IFRS) for fiscal
 years starting after 1 January 2005. This change in accounting systems
 will have a large impact on the information environment for EU companies.
 This paper provides a review of the literature on adoption of different
 Generally Accepted Accounting Principles (GAAP). We thus provide
 background and guidance for researchers studying the change in accounting
 quality following widespread IFRS adoption in the EU. We argue that
 cross-country differences in accounting quality are likely to remain
 following IFRS adoption because accounting quality is a function of the
 firm's overall institutional setting, including the legal and political
 system of the country in which the firm resides. 
Journal: European Accounting Review 
Pages: 675-702 
Issue: 4 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701706732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701706732 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:4:p:675-702




Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Oswald 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Oswald 
Author-Name: Paul Zarowin 
Author-X-Name-First: Paul 
Author-X-Name-Last: Zarowin 
Title: Capitalization of R&D and the Informativeness of Stock Prices 
Abstract:
  This paper presents both a new approach to studying the consequences of
 accounting choice and a unique sample to examine the effects of accounting
 choice in the R&D context. We investigate the effect of firms' decision to
 capitalize R&D expenditures on the amount of information about future
 earnings reflected in current stock returns, as captured by the
 association between current-year returns and future earnings (FERC). We
 use a sample of UK firms, which includes both R&D capitalizers and
 expensers. An important feature of our tests is our use of a two-equation
 system to control for the endogeneity of the accounting choice (i.e.
 self-selection). Proponents of capitalization claim that it enables
 management to better communicate information about the success of projects
 and their probable future benefits. Consistent with this, we find that
 capitalization is associated with higher FERC than expensing. 
Journal: European Accounting Review 
Pages: 703-726 
Issue: 4 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701706815 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701706815 
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Handle: RePEc:taf:euract:v:16:y:2007:i:4:p:703-726




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Manuel Garcia Lara 
Author-X-Name-First: Juan Manuel Garcia 
Author-X-Name-Last: Lara 
Author-Name: Beatriz Garcia Osma 
Author-X-Name-First: Beatriz Garcia 
Author-X-Name-Last: Osma 
Author-Name: Fernando Penalva 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Penalva 
Title: Board of Directors' Characteristics and Conditional Accounting Conservatism: Spanish Evidence 
Abstract:
  Using a sample of Spanish listed firms for the period 1997-2002 we find
 that firms where the CEO has a low influence over the functioning of the
 board of directors show a greater degree of accounting conservatism. We
 measure the influence of the CEO over the board of directors using two
 aggregate indexes combining six (eight) characteristics of the functioning
 of the board of directors and its monitoring committees: board size,
 proportion of non-executive directors, proportion of independent
 directors, whether the chairman of the board is an executive director, the
 number of board meetings, and the existence of an audit committee, a
 nomination/remuneration committee and an executive committee. We define
 conservatism as the asymmetric recognition speed of good and bad news in
 earnings, and we measure it following Basu (Journal of Accounting and
 Economics, 24, pp. 3-37, 1997) and Ball and Shivakumar (Journal of
 Accounting and Economics, 39, pp. 83-128, 2005). Our results are robust to
 alternative specifications and specific controls for investment
 opportunities and for the endogenous nature of corporate governance and
 earnings quality. Overall, our evidence shows that firms with strong
 boards use conservative accounting numbers as a governance tool, even in
 an institutional setting with low litigation risk such as Spain. 
Journal: European Accounting Review 
Pages: 727-755 
Issue: 4 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701706922 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701706922 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:4:p:727-755




Template-Type: ReDIF-Article 1.0
Author-Name: Sinikka Moilanen 
Author-X-Name-First: Sinikka 
Author-X-Name-Last: Moilanen 
Title: Knowledge Translation in Management Accounting and Control: A Case Study of a Multinational Firm in Transitional Economies 
Abstract:
  This paper explores the knowledge transfer between a Western head office
 and its subsidiaries in the former Soviet Union with a focus on
 accounting-related knowledge. A framework of knowledge translation (Choi
 and Eriksson, Business Network Learning, pp. 69-88 (Amsterdam: Pergamon,
 2001)) is applied and refined to structure the results, which show the
 development of the management accounting and control system in the
 knowledge translation process. The role of accounting as a mediator
 changes in the different phases of the process and accounting itself also
 translates due to local discretion. At the very beginning of the
 cooperation the role of accounting is emphasised in order to ensure
 satisfactory reporting, but personal cooperation within the matrix
 structure mainly replaces accounting in the intensive knowledge
 translation. Social capital is created in the translation phase, enabling
 later on local autonomy and head office's control at a distance based on
 accounting numbers. Thus the results suggest that management control
 through accounting information alone, without active channels for personal
 contacts, may not work in the former Soviet Union because of the
 prevailing business traditions and personal networking. 
Journal: European Accounting Review 
Pages: 757-789 
Issue: 4 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701706955 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701706955 
File-Format: text/html
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Handle: RePEc:taf:euract:v:16:y:2007:i:4:p:757-789




Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Cerbioni 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Cerbioni 
Author-Name: Antonio Parbonetti 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Parbonetti 
Title: Exploring the Effects of Corporate Governance on Intellectual Capital Disclosure: An Analysis of European Biotechnology Companies 
Abstract:
  This paper examines the relationship between governance variables and
 voluntary intellectual capital disclosure in a sample of European
 biotechnology firms. We extend previous research by simultaneously
 considering governance mechanisms such as the proportion of independent
 directors, board dimension, CEO duality and board structure in
 relationship to voluntary disclosure on intellectual capital. We
 understand voluntary disclosure as a multidimensional and complex concept
 and, hence, use the semantic properties of the information disclosed, and
 on the content of information, as proxies for the quality of disclosure.
 Our results suggest that governance-related variables strongly influence
 the quantity of information disclosed, thus confirming our hypotheses. In
 regard to the quality of disclosure, our results show that (1) the
 proportion of independent directors is positively related to the
 disclosure of internal structure, (2) CEO duality is negatively linked to
 the disclosure of forward-looking information, and (3) board structure
 helps to improve the annual report's overall readability. We contribute to
 agency theory by indicating that corporate governance mechanisms and
 voluntary disclosure can be used strategically to reduce agency conflicts.
 The results of this study might be of interest to regulators, investment
 analysts and market participants. 
Journal: European Accounting Review 
Pages: 791-826 
Issue: 4 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701707011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701707011 
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Handle: RePEc:taf:euract:v:16:y:2007:i:4:p:791-826




Template-Type: ReDIF-Article 1.0
Author-Name: Johnny Jermias 
Author-X-Name-First: Johnny 
Author-X-Name-Last: Jermias 
Title: The Effects of Corporate Governance on the Relationship between Innovative Efforts and Performance 
Abstract:
  The purpose of this study is to examine the effects of managerial share
 ownership, CEO duality and board independence on the relationship between
 innovative efforts and performance. The study is motivated by the
 observation that despite the widely held belief that innovative efforts
 are crucial to firms' survival, previous studies were unable to provide
 any evidence in support of this belief. It addresses this incongruity by
 focusing on the effects of corporate governance on the relationship
 between innovative efforts and performance. Specifically, this study
 predicts and finds that managerial share ownership has a positive effect
 on this relationship while CEO duality has a negative effect. Contrary to
 the hypothesis, this study finds that board independence also has a
 negative effect on the relationship between innovative efforts and
 performance. This contradictory result is, however, consistent with the
 managerial-incentive theory, which proposes that inside directors are in a
 better position than outside directors to motivate managers to undertake
 profitable projects because they have superior access to firms' specific
 information. 
Journal: European Accounting Review 
Pages: 827-854 
Issue: 4 
Volume: 16 
Year: 2007 
X-DOI: 10.1080/09638180701707045 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701707045 
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Handle: RePEc:taf:euract:v:16:y:2007:i:4:p:827-854




Template-Type: ReDIF-Article 1.0
Author-Name: F. Asis Martinez-Jerez 
Author-X-Name-First: F. Asis 
Author-X-Name-Last: Martinez-Jerez 
Title: Governance and Merger Accounting: Evidence from Stock Price Reactions to Purchase versus Pooling 
Abstract:
  This paper examines the effect of corporate governance on investor
 reactions to accounting choice in the context of accounting for business
 combinations. Using a sample of 324 recent stock swap acquisitions I find
 that, contrary to practitioners' belief that capital markets penalize
 purchase accounting, the opposite appears to be true; there is a negative
 and significant differential market reaction of approximately 4% for
 acquiring firms that announce pooling transactions. This return
 differential declines to negative 8% for firms with ineffective corporate
 governance. These findings are consistent with capital markets
 interpreting the choice of purchase accounting as a signal of management's
 confidence in the likelihood of a successful merger. This signal is
 particularly relevant when corporate governance is considered ineffective. 
Journal: European Accounting Review 
Pages: 5-35 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701706013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701706013 
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Handle: RePEc:taf:euract:v:17:y:2008:i:1:p:5-35




Template-Type: ReDIF-Article 1.0
Author-Name: Markus Arnold 
Author-X-Name-First: Markus 
Author-X-Name-Last: Arnold 
Author-Name: Eva Ponick 
Author-X-Name-First: Eva 
Author-X-Name-Last: Ponick 
Author-Name: Heike Schenk-Mathes 
Author-X-Name-First: Heike 
Author-X-Name-Last: Schenk-Mathes 
Title: Groves Mechanism vs. Profit Sharing for Corporate Budgeting - An Experimental Analysis with Preplay Communication 
Abstract:
  This paper experimentally explores the efficiency of the Groves mechanism
 and a profit sharing scheme in a corporate budgeting context.
 Specifically, it examines the effects of anonymous communication on both
 incentive schemes. The results show that although the Groves mechanism is
 analytically superior to the profit sharing scheme, the latter turns out
 to be advantageous for headquarters in our experiment. This is essentially
 due to the effects of communication on both incentive schemes. Under the
 profit sharing scheme, communication improves coordination and reduces
 inefficient resource allocation. Under the Groves mechanism, however, it
 leads to stable collusion strategies of the participants, and thus
 increases compensation costs. 
Journal: European Accounting Review 
Pages: 37-63 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819980 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819980 
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Handle: RePEc:taf:euract:v:17:y:2008:i:1:p:37-63




Template-Type: ReDIF-Article 1.0
Author-Name: Rihab Khalifa 
Author-X-Name-First: Rihab 
Author-X-Name-Last: Khalifa 
Author-Name: Paolo Quattrone 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Quattrone 
Title: The Governance of Accounting Academia: Issues for a Debate 
Abstract:
  Philosophy and sociology of science have devoted significant attention to
 processes which define what counts as valid scientific knowledge thus
 making the producers of such knowledge legitimate academics at the expense
 of those who do not conform to the cliche. In accounting, too, a vibrant
 debate has augmented our understanding of the conditions which make
 certain kinds of accounting knowledge more acceptable than others. The
 debate included, but was not limited to, issues such as, the institutional
 arrangements of accounting academic associations and doctoral training
 regimes and how these shape journals' editorial boards and the selection
 of published articles. This introduction aims to reopen that debate on the
 two realms of institutions and practices. In terms of institutional
 arrangements, we note relevant changes in the forces which contribute to
 define the quality and relevance of accounting knowledge. We discuss the
 institutional space towards which accounting departments and scholars are
 increasingly migrating, that is, business schools. These are often
 separated from universities and operate under pressures which are
 sometimes only marginally academic in nature. In terms of practices, we
 observe changes in academic training regimes which favour the
 proliferation of opportunistic behaviours. These changes call for a debate
 on the governance of accounting academia, if academia is to be a knowledge
 and ethical, and not simply rather a business enterprise. 
Journal: European Accounting Review 
Pages: 65-86 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180801971913 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180801971913 
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Handle: RePEc:taf:euract:v:17:y:2008:i:1:p:65-86




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Hopwood 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Hopwood 
Title: Changing Pressures on the Research Process: On Trying to Research in an Age when Curiosity is not Enough 
Abstract:
  Recognizing that there are increasing concerns about the possible
 standardisation of accounting research, the paper explores the different
 pressures that are behind this development. Consideration is also given to
 possible opposition and coping strategies. 
Journal: European Accounting Review 
Pages: 87-96 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819998 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819998 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:1:p:87-96




Template-Type: ReDIF-Article 1.0
Author-Name: Yves Gendron 
Author-X-Name-First: Yves 
Author-X-Name-Last: Gendron 
Title: Constituting the Academic Performer: The Spectre of Superficiality and Stagnation in Academia 
Abstract:
  Journal rankings and performance measurement schemes tend to become
 increasingly influential within many fields of research, thereby
 consolidating the prevalence of performativity on the life and research
 endeavours of many academics. The latter are nowadays often pressured to
 publish in 'top' journals to ensure they have a displayable level of
 performance. Drawing from literature on identity, this paper introduces
 and details the construction of the academic performer - a representation
 of identity which is increasingly typical of what it means today to be an
 actor in academia, in terms of attitudes and behaviour. Fundamentally
 speaking, this paper constitutes a critique of a detrimental tendency in
 academia, that is to say the excessive spread of performance measurement
 practices and the flow of superficiality and conformity they consolidate. 
Journal: European Accounting Review 
Pages: 97-127 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701705973 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701705973 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:1:p:97-127




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Messner 
Author-X-Name-First: Martin 
Author-X-Name-Last: Messner 
Author-Name: Calbrecht Becker 
Author-X-Name-First: Calbrecht 
Author-X-Name-Last: Becker 
Author-Name: Utz Schaffer 
Author-X-Name-First: Utz 
Author-X-Name-Last: Schaffer 
Author-Name: Christoph Binder 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Binder 
Title: Legitimacy and Identity in Germanic Management Accounting Research 
Abstract:
  The notion of 'Controlling', as it is commonly used in German-speaking
 countries, may be regarded as an equivalent term for management
 accounting. At the same time, there have been considerable efforts to
 establish Controlling as a discipline on its own, rather than to regard it
 simply as the German synonym of management accounting. This is reflected
 in many writings on Controlling which have tried to identify a possible
 'core' or 'essence' of the subject. In this paper, we argue that this
 identity discourse may be interpreted as a strategy of Controlling
 researchers to achieve cognitive and sociopolitical legitimacy of their
 discipline. Drawing on interview material as well as publication and
 citation analyses, we show how various institutional pressures and
 constraints not only influenced the institutionalization of Controlling as
 an academic discipline but also impacted the form and substance of
 Controlling research. This raises some important questions for our
 understanding of academic disciplines more generally, some of which we
 address in this paper. 
Journal: European Accounting Review 
Pages: 129-159 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819808 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819808 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:1:p:129-159




Template-Type: ReDIF-Article 1.0
Author-Name: Joanne Locke 
Author-X-Name-First: Joanne 
Author-X-Name-Last: Locke 
Author-Name: Alan Lowe 
Author-X-Name-First: Alan 
Author-X-Name-Last: Lowe 
Title: Evidence and Implications of Multiple Paradigms in Accounting Knowledge Production 
Abstract:
  This paper uses evidence gathered in two perception studies of
 Australasian and British accounting academics to reflect on aspects of the
 knowledge production system within accounting academe. We provide evidence
 of the representation of multiple paradigms in many journals that are
 scored by participants as being of high quality. Indeed most of the
 journals we surveyed are perceived by accounting academics as
 incorporating research from more than one paradigm. It is argued that this
 'catholic' approach by journal editors and the willingness of many
 respondents in our surveys to score journals highly on material they
 publish from both paradigm categories reflects a balanced acceptance of
 the multi-paradigmatic state of accounting research. Our analysis is set
 within an understanding of systems of accounting knowledge production as
 socially constructed and as playing an important role in the distribution
 of power and reward in the academy. We explore the impact of our results
 on concerns emerging from the work of a number of authors who carefully
 expose localised 'elites'. The possibilities for a closer relationship
 between research emerging from a multi-paradigm discipline and policy
 setting and practice are also discussed. The analysis provides a sense of
 optimism that the broad constituency of accounting academics operates
 within an environment conducive for the exchange of ideas. That optimism
 is dampened by concerns about the impact of local 'elites' and the need
 for more research on their impact on accounting academe. 
Journal: European Accounting Review 
Pages: 161-191 
Issue: 1 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819881 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819881 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:1:p:161-191




Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Gordon 
Author-X-Name-First: Lawrence 
Author-X-Name-Last: Gordon 
Author-Name: Martin Loeb 
Author-X-Name-First: Martin 
Author-X-Name-Last: Loeb 
Author-Name: Tashfeen Sohail 
Author-X-Name-First: Tashfeen 
Author-X-Name-Last: Sohail 
Author-Name: Chih-Yang Tseng 
Author-X-Name-First: Chih-Yang 
Author-X-Name-Last: Tseng 
Author-Name: Lei Zhou 
Author-X-Name-First: Lei 
Author-X-Name-Last: Zhou 
Title: Cybersecurity, Capital Allocations and Management Control Systems 
Abstract:
  The design and use of management control systems can play a key role in
 dealing with cybersecurity issues that have arisen in tandem with the
 emergence of the Internet. Efficient management control systems will
 reduce a firm's likelihood of suffering significant losses from
 cybersecurity breaches. Drawing on and extending the extant agency-based
 capital budgeting literature, this paper demonstrates the relevance of the
 study of management accounting controls to problems arising in the
 cybersecurity setting. The main finding is that firms can use an
 information security audit (which is an integral part of a management
 control system) along with adjustments to the compensation payments to the
 agent and the investment decision rules, to mitigate a Chief Information
 Security Officer's inherent empire building preferences. The paper also
 identifies additional research areas where management accountants with
 expertise in management control systems can contribute to the academic
 literature and practice surrounding cybersecurity issues. 
Journal: European Accounting Review 
Pages: 215-241 
Issue: 2 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819972 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819972 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:2:p:215-241




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Gaeremynck 
Author-X-Name-First: Ann 
Author-X-Name-Last: Gaeremynck 
Author-Name: Sofie Van Der Meulen 
Author-X-Name-First: Sofie 
Author-X-Name-Last: Van Der Meulen 
Author-Name: Marleen Willekens 
Author-X-Name-First: Marleen 
Author-X-Name-Last: Willekens 
Title: Audit-Firm Portfolio Characteristics and Client Financial Reporting Quality 
Abstract:
  This paper contributes to the audit quality literature by defining
 continuous measures of expected future audit-firm losses and testing their
 association with proxies of financial reporting quality. In prior studies
 audit-firm size has been used as a proxy for expected future audit-firm
 losses and hence - following theoretical arguments in DeAngelo (Journal of
 Accounting and Economics, 3(3), pp. 183-199, 1981) and Dye (Journal of
 Political Economy, 101(5), pp. 887-914, 1993) - for audit quality. In
 particular, the Big 8/6/5/4 indicator variable has been tested empirically
 against various measures of client financial reporting quality. In this
 paper, we focus on testing various characteristics of an audit firm's
 client portfolio as drivers of audit quality (and therefore subsequently
 also client financial reporting quality), including measures to proxy
 size, visibility and financial health characteristics of an audit-firm
 portfolio. We test both a disclosure and earnings quality model for that
 purpose, and find for a sample of Belgian companies in financial distress,
 that audit-firm portfolio characteristics better explain variations in
 client financial reporting quality than the traditionally used Big N
 indicator variable. In particular, we find that - ceteris paribus - the
 size of an audit-firm portfolio is irrelevant in explaining the variation
 in financial reporting quality amongst companies. Next, we find that
 client visibility characteristics of an audit-firm portfolio have a
 constraining impact on earnings management, but no impact on the
 disclosure quality in the notes. Third, we find that solvency
 characteristics of an audit-firm portfolio (but not liquidity and
 profitability characteristics), are positively associated with the
 financial reporting quality. Taken together, the evidence suggests that
 not so much the size of an audit-firm portfolio (and the audit firm) but
 other portfolio and client characteristics drive audit and financial
 reporting quality. 
Journal: European Accounting Review 
Pages: 243-270 
Issue: 2 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701705932 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701705932 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:2:p:243-270




Template-Type: ReDIF-Article 1.0
Author-Name: Jo Danbolt 
Author-X-Name-First: Jo 
Author-X-Name-Last: Danbolt 
Author-Name: William Rees 
Author-X-Name-First: William 
Author-X-Name-Last: Rees 
Title: An Experiment in Fair Value Accounting: UK Investment Vehicles 
Abstract:
  We use the British real estate and investment fund industries as
 experimental settings where historic cost (HC) and fair value accounting
 (FVA) can be compared. Both industries have the majority of their assets
 marked to market and hence the difference between the two accounting
 systems is profound. However, as the valuation of real estate is arguably
 more subjective than that of investment funds, we are able to contrast
 fair value accounting in a near ideal setting with one where it remains
 important, but where valuation difficulties may permit bias. As this
 distinction is incorporated in the recently issued SFAS 157, which also
 formed the basis of the IASB's relevant discussion document, the results
 of our study may be particularly timely. As expected, we find that fair
 value income is considerably more value relevant than historic cost
 income. However, in the presence of changes in FVA balance sheet values,
 income measures become largely irrelevant. This implies that there is no
 obvious advantage from adopting FVA income accounting if FVA balance sheet
 values are available to the user. Furthermore, FVA for our real estate
 sample is considerably less value relevant than for the investment
 companies and the evidence for this sample, if not conclusive, is
 consistent with earnings management. We interpret these results as
 confirming that fair values are highly relevant and largely unbiased where
 the values are unambiguous. Where valuation is ambiguous, which will
 normally be the case, value relevance will be lower and biased accounting
 may be revealed. 
Journal: European Accounting Review 
Pages: 271-303 
Issue: 2 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819865 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819865 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:2:p:271-303




Template-Type: ReDIF-Article 1.0
Author-Name: Bradley Pomeroy 
Author-X-Name-First: Bradley 
Author-X-Name-Last: Pomeroy 
Author-Name: Daniel Thornton 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Thornton 
Title: Meta-analysis and the Accounting Literature: The Case of Audit Committee Independence and Financial Reporting Quality 
Abstract:
  We conduct a meta-analysis (MA) of the association between audit
 committee (AC) independence and financial reporting quality (FRQ).
 Although we cannot reliably aggregate results across studies in a
 statistical sense because of inconsistencies in defining FRQ and the
 absence of replication studies, quantitative review techniques yield three
 conclusions: (1) The use of different FRQ measures in the AC independence
 literature explains about half of the variation in results across studies.
 (2) Audit committees are more effective at enhancing audit quality (e.g.
 through averting going-concern reports and auditor resignations) than they
 are at fostering financial statement quality (e.g. by making high quality
 accruals and avoiding restatements). AC independence can even reduce
 apparent financial statement quality by identifying the need for
 restatements and remedial, abnormal accruals. (3) Financial statement
 quality and audit quality are complementary contributors to FRQ. The
 statistical and methodological difficulties we encounter lead us to posit
 that the dearth of MA studies in accounting and auditing stems from
 similar difficulties in applying MA to other topics. We present evidence
 consistent with publication biases and perverse researcher incentives
 being responsible for the difficulties. 
Journal: European Accounting Review 
Pages: 305-330 
Issue: 2 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819832 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:2:p:305-330




Template-Type: ReDIF-Article 1.0
Author-Name: Jere Francis 
Author-X-Name-First: Jere 
Author-X-Name-Last: Francis 
Author-Name: Inder Khurana 
Author-X-Name-First: Inder 
Author-X-Name-Last: Khurana 
Author-Name: Xiumin Martin 
Author-X-Name-First: Xiumin 
Author-X-Name-Last: Martin 
Author-Name: Raynolde Pereira 
Author-X-Name-First: Raynolde 
Author-X-Name-Last: Pereira 
Title: The Role of Firm-Specific Incentives and Country Factors in Explaining Voluntary IAS Adoptions: Evidence from Private Firms 
Abstract:
  This paper investigates voluntary adoptions of International Accounting
 Standards (IAS) by private enterprises, and builds on prior research which
 posits that higher quality financial reports through IAS adoption can
 reduce information asymmetry and facilitate contracting with external
 parties. Specifically, we pursue the following questions. First, do
 firm-specific incentives matter in the IAS adoption decision after
 controlling for country-level institutional factors? Second, does the
 relative importance of firm vs. country factors vary across institutional
 settings? Using a sample of 3,722 small and medium-sized private
 enterprises from 56 countries, we report two primary findings. First, both
 firm and country factors matter in the voluntary IAS adoption decision.
 Second, when we focus on sub-samples of countries partitioned by the level
 of economic development, we find that firm factors dominate country
 factors in more developed countries, while in less developed countries,
 country factors dominate firm factors in explaining IAS adoptions. This
 result is consistent with the argument in Doidge et al. (Journal of
 Financial Economics, 86(1), pp. 1-39, 2007) that firm incentives are more
 important in explaining governance choices (including accounting) in more
 developed countries where the benefits from better governance are more
 likely to exceed the attendant costs. Collectively, our results suggest
 that less developed countries can enhance the benefits from IAS adoptions
 by developing institutions which facilitate private contracting. 
Journal: European Accounting Review 
Pages: 331-360 
Issue: 2 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180701819899 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180701819899 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:17:y:2008:i:2:p:331-360




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Alves 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Alves 
Author-Name: F. Teixeira Dos Santos 
Author-X-Name-First: F. 
Author-X-Name-Last: Teixeira Dos Santos 
Title: Do First and Third Quarter Unaudited Financial Reports Matter? The Portuguese Case 
Abstract:
  In this paper we investigate the incremental information content of a
 sample of 1,751 quarterly financial reports, issued in Portugal between
 1994 and 2004. Specifically, we examine price and volume reactions to
 financial reports issued in: (1) the first and third quarters, which are
 unaudited; (2) the second quarter, which is subject to limited audit; and
 (3) the fourth quarter (the annual report) which is subject to a full
 audit. We conclude that unaudited first and third quarter financial
 reports that include condensed income statements and balance sheets convey
 enough new information to the market to spur significant price and trading
 reactions. This conclusion holds before and after the first and third
 quarter reports were made mandatory in 1999. We also found that the
 incremental information content of the second quarter report dropped after
 1999, presumably because part of its information content was usurped by
 the newly required first quarter reports. Finally, we found evidence that
 mandatory audited reports announcements spur more significant price
 reactions than mandatory unaudited financial reports. In contrast to
 evidence from other countries, we found that smaller firms' disclosures do
 not generate a larger reaction than large firms' disclosures. 
Journal: European Accounting Review 
Pages: 361-392 
Issue: 2 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802156399 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802156399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:17:y:2008:i:2:p:361-392




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Perez 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Perez 
Author-Name: Vicente Salas-Fumas 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Salas-Fumas 
Author-Name: Jesus Saurina 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Saurina 
Title: Earnings and Capital Management in Alternative Loan Loss Provision Regulatory Regimes 
Abstract:
  Accounting scholars and policy-makers have expressed concern about the
 quality of accounting data. Because earnings and capital management
 practices alter the information content of accounting statements, we ask
 whether a transparent smoothing device such as the statistical provision -
 a counter-cyclical bank loan loss provision that increases in economic
 upturns and decreases in downturns, and is reported separately by banks -
 may contribute to improving quality of accounting data. We find that
 Spanish banks use loan loss provisions to smooth earnings but we find no
 evidence that they practice capital management. We also find that credit
 risk variables weigh more and net operating income weighs less as
 determinants of generic and specific loan loss provisions after the
 introduction of the statistical provision than they did before this
 provision was introduced. Therefore, the quality of banks' accounting
 statements improves upon use of the new statistical provision. 
Journal: European Accounting Review 
Pages: 423-445 
Issue: 3 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802016742 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802016742 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:3:p:423-445




Template-Type: ReDIF-Article 1.0
Author-Name: Brenda Van Tendeloo 
Author-X-Name-First: Brenda 
Author-X-Name-Last: Van Tendeloo 
Author-Name: Ann Vanstraelen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Vanstraelen 
Title: Earnings Management and Audit Quality in Europe: Evidence from the Private Client Segment Market 
Abstract:
  This paper contributes to the recent literature on financial reporting
 quality in private (i.e. non-listed) companies (Ball and Shivakumar, 2005;
 Burgstahler et al., 2006) by examining whether in these types of companies
 Big 4 audit firms, as high quality auditors, provide a constraint on
 earnings management. Considering incentives of auditors to supply a high
 audit quality in private firms, we expect that Big 4 auditors have an
 incentive to constrain earnings management only in high tax alignment
 countries, where financial statements are more scrutinized by tax
 authorities and the probability that an audit failure is detected is
 higher. Using data on private firms in European countries, this study
 provides evidence consistent with this expectation. 
Journal: European Accounting Review 
Pages: 447-469 
Issue: 3 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802016684 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802016684 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:17:y:2008:i:3:p:447-469




Template-Type: ReDIF-Article 1.0
Author-Name: John Forker 
Author-X-Name-First: John 
Author-X-Name-Last: Forker 
Author-Name: Ronan Powell 
Author-X-Name-First: Ronan 
Author-X-Name-Last: Powell 
Title: A Comparison of Error Rates for EVA, Residual Income, GAAP-earnings and Other Metrics Using a Long-Window Valuation Approach 
Abstract:
  Predictability and variability are two measures commonly used in the
 empirical literature to gauge the quality of earnings and hence, decision
 usefulness to investors. We adopt both measures to investigate empirically
 the relative quality of Stern Stewart's measure of economic value added
 (EVA) compared to GAAP (generally accepted accounting principles)
 earnings, residual income, cash flows and other mandated metrics in the
 USA and UK. We proxy for accounting quality by applying a long-window
 methodology to obtain hindsight valuation errors based on the difference
 between ex ante market value and discounted ex post metrics. Decision
 usefulness, in terms of ease of forecasting, is proxied by differences in
 valuation errors between the benchmark and alternative accounting methods.
 Contrary to the Biddle et al. (Journal of Accounting and Economics, 24,
 pp. 301-336, 1997) finding that mandated earnings were superior to EVA and
 residual income, we find that EVA and other residual income metrics
 consistently give rise to lower average valuation errors and thus have
 higher predictability across a variety of windows and terminal dates.
 Further, on the basis of our second measure of accounting quality, the
 variability of valuation errors, EVA performs best in the USA and third in
 the UK. The results strongly indicate that differences between residual
 income constructs, including EVA, are generally small but that earnings
 quality will be improved by recognition of a cost of equity capital in
 measuring reported income. 
Journal: European Accounting Review 
Pages: 471-502 
Issue: 3 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802172420 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802172420 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:3:p:471-502




Template-Type: ReDIF-Article 1.0
Author-Name: Shahed Imam 
Author-X-Name-First: Shahed 
Author-X-Name-Last: Imam 
Author-Name: Richard Barker 
Author-X-Name-First: Richard 
Author-X-Name-Last: Barker 
Author-Name: Colin Clubb 
Author-X-Name-First: Colin 
Author-X-Name-Last: Clubb 
Title: The Use of Valuation Models by UK Investment Analysts 
Abstract:
  This paper examines the use of valuation models by UK investment
 analysts. The study is based on, first, semi-structured interviews with 35
 sell-side analysts from 10 leading investment banks and with 7 buy-side
 analysts from 3 asset management firms and, second, content analysis based
 on 98 equity research reports for FTSE-100 companies covered by the
 sell-side interviewees. We observe that analysts perceive the discounted
 cash flow (DCF) (and to some extent 'sophisticated' models in general) to
 have become significantly more important than prior survey evidence
 suggests, although we also find the (somewhat paradoxical) continued
 importance of 'unsophisticated' valuation multiples, notably the
 price/earnings ratio (PE). We find perceived limitations in the technical
 applicability of the DCF, which cause analysts to rely in practice upon
 valuation multiples and subjective judgement of whether the market price
 'feels right'. We also find that contextual factors, notably the analysts'
 need for their research to be credible to buy-side clients, cause the use
 of subjective, unsophisticated methods of valuation to be played down.
 Given the inherent flexibility of the DCF model, coupled with its
 ostensible credibility, it becomes the natural vehicle for conveying the
 analyst's research, even though it is very rarely relied upon to determine
 target prices and investment recommendations. We conclude that, while the
 literature has focused on the technical merits of alternative valuation
 models, analysts' actual usage of valuation models also requires an
 understanding of social and economic context and motivations. 
Journal: European Accounting Review 
Pages: 503-535 
Issue: 3 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802016650 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802016650 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:3:p:503-535




Template-Type: ReDIF-Article 1.0
Author-Name: Claus Holm 
Author-X-Name-First: Claus 
Author-X-Name-Last: Holm 
Author-Name: Pall Rikhardsson 
Author-X-Name-First: Pall 
Author-X-Name-Last: Rikhardsson 
Title: Experienced and Novice Investors: Does Environmental Information Influence Investment Allocation Decisions? 
Abstract:
  This paper examines the effect of environmental information on investment
 decisions. The results are based on an experiment in which groups of
 investors (varied by experience) were asked to make short- and long-term
 investment allocation decisions based on financial information and on
 supplementary environmental information (varied between cases). The
 results suggest that environmental information disclosure influences
 investment allocation decisions. The results also suggest that potentially
 mitigating factors such as the investment horizon and the experience level
 of investors affect investment allocation decisions, but the predicted
 main effect of positive environmental information holds across different
 investment horizons and investor types. Hence, the results are not
 attributable to interaction effects. Interestingly, compared to other
 company information, environmental information is not rated as being very
 important by participating subjects even though the results suggest that
 it influences investment decisions. 
Journal: European Accounting Review 
Pages: 537-557 
Issue: 3 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802016627 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802016627 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:3:p:537-557




Template-Type: ReDIF-Article 1.0
Author-Name: Yasuhiro Ohta 
Author-X-Name-First: Yasuhiro 
Author-X-Name-Last: Ohta 
Title: On the Conditions under which Audit Risk Increases with Information 
Abstract:
  It has been reported in the literature on strategic auditing that audit
 risk (the probability of audit failure) may increase when the auditor
 obtains information, whereas conditions for such cases have not been
 identified as yet. This paper provides simple models to analyze the
 general tendencies of exogenous parameters for such cases. The analysis
 shows that audit risk increases with more information if the auditee has a
 sufficiently strong incentive to commit fraud. If the auditee is penalized
 by auditor rejection even when he does not commit fraud, the detection
 risk increases with more information. In this case, if the auditor has a
 sufficiently strong incentive to avoid false rejection, audit risk
 increases with more information. 
Journal: European Accounting Review 
Pages: 559-585 
Issue: 3 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802109588 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802109588 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:3:p:559-585




Template-Type: ReDIF-Article 1.0
Author-Name: Christof Beuselinck 
Author-X-Name-First: Christof 
Author-X-Name-Last: Beuselinck 
Author-Name: Marc Deloof 
Author-X-Name-First: Marc 
Author-X-Name-Last: Deloof 
Author-Name: Sophie Manigart 
Author-X-Name-First: Sophie 
Author-X-Name-Last: Manigart 
Title: Private Equity Investments and Disclosure Policy 
Abstract:
  In the current study, we dynamically analyze unlisted firms' voluntary
 disclosure decisions around private equity (PE) participation. First, we
 disentangle the role of disclosure in attracting PE investments. In
 addition, we examine the extent to which a firm's disclosure policy is
 affected by the changing corporate setting and intensified corporate
 governance after having received PE. We find no evidence that firms would
 employ increased disclosure to signal their quality in the years preceding
 the PE financing. However, we document a significant switch to increased
 financial disclosure from the PE investment year onwards, consistent with
 the hypothesis that PE investor presence positively affects portfolio
 firms' disclosure decisions. Further, we show that the proportional PE
 ownership stake is positively related to increased disclosure, but only at
 very high ownership levels. We explain these results in that both internal
 and external information demands call for higher public disclosure in PE
 firms. We conclude that the changing information environment resulting
 from a PE investment stimulates increased public financial disclosure. Our
 results contribute to illustrate how an indisputable change in governance
 resulting from a PE investment affects inter-temporal corporate disclosure
 decisions in unlisted firms. 
Journal: European Accounting Review 
Pages: 607-639 
Issue: 4 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802327057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802327057 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:4:p:607-639




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Arnedo Ajona 
Author-X-Name-First: Laura Arnedo 
Author-X-Name-Last: Ajona 
Author-Name: Fermin Lizarraga Dallo 
Author-X-Name-First: Fermin Lizarraga 
Author-X-Name-Last: Dallo 
Author-Name: Santiago Sanchez Alegria 
Author-X-Name-First: Santiago Sanchez 
Author-X-Name-Last: Alegria 
Title: Discretionary Accruals and Auditor Behaviour in Code-Law Contexts: An Application to Failing Spanish Firms 
Abstract:
  This study examines the relationship between earnings management and
 auditor behaviour in the pre-bankrupt client segment of the Spanish audit
 market. As proxies for auditor behaviour, we use type of audit firm (Big
 N/non-Big N) and type of audit report. In contrast to the USA, audit
 reports in Spain often include modifications other than a going-concern
 opinion. This allows us to study the relationship in more detail than is
 possible with US data. The results of our study show that discretionary
 accruals are negatively related to going-concern opinions but are
 positively related to reports modified for reasons other than
 going-concern problems. However, unlike Butler et al. (Journal of
 Accounting and Economics, 37, pp. 139-165, 2004) the negative relationship
 is explained not by liquidity survival tactics but by auditor
 conservatism. We find this conservatism not only in the value of
 discretionary accruals but also in the qualifications that accompany a
 going concern. In these cases GAAP violations have a much greater income
 effect and a stronger relationship with the reversal of manipulation
 accumulated over the years than with the manipulation introduced during
 the last year. Finally, our results suggest that Big N differentiation in
 a code-law country is context-specific and depends on the business risk
 parameter of the 'audit risk model'. In particular, for high-risk firms,
 Big N auditors show a significantly lower level of discretionary accruals
 and a greater propensity to issue a going-concern opinion. 
Journal: European Accounting Review 
Pages: 641-666 
Issue: 4 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802172479 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802172479 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:4:p:641-666




Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Sargiacomo 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Sargiacomo 
Title: Accounting and the 'Art of Government': Margaret of Austria in Abruzzo (1539-86) 
Abstract:
  This paper analyses the accounting, accountability and disciplinary
 practices triggered by the Ordinances of 1571 in the feudal State of
 Abruzzo, whose sovereign was Margaret of Austria, daughter of Emperor
 Charles V. In a scenario stimulated by the ascent of mercantilist
 discourse and police schemes, new 'technologies of government' were forged
 to optimize the State's collection of receipts and to minimize fraud,
 rendering public officers accountable and their activities visible and
 controllable 'at a distance'. Using the 'governmentality' framework, this
 paper analyses the Ordinances that disciplined the activities of the
 primary finance/accounting and police officers in Abruzzo. The paper
 complements and extends the previous literature by illustrating the wide
 array of accounting- and non-accounting-based disciplinary techniques
 enforced by the sovereign in order to shape, align and even seduce the
 behaviour of officers/functionaries working in the State apparatus, and
 the general population. The analysis goes beyond the existing literature
 by unveiling the implementation of the hitherto undisclosed disciplinary
 double system of gratification-punishment advocated by Foucault, that also
 involved the population in the 'State control of the mechanisms of
 discipline'. In a related vein, the accounting system applied displays
 representational, translational and distributive properties, along with
 novel incentive schemes. 
Journal: European Accounting Review 
Pages: 667-695 
Issue: 4 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802324401 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802324401 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:17:y:2008:i:4:p:667-695




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Bebbington 
Author-X-Name-First: Jan 
Author-X-Name-Last: Bebbington 
Author-Name: Carlos Larrinaga-Gonzalez 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Larrinaga-Gonzalez 
Title: Carbon Trading: Accounting and Reporting Issues 
Abstract:
  The impetus for this special debating forum arises from the concern about
 the impact of anthropogenic induced global climate change (GCC) and the
 assumption that GCC raises issues of significance with respect to the
 accountability of firms to stakeholders for financial and non-financial
 performance. Governments and supra-national bodies have sought to respond
 to GCC in a variety of ways, with the creation of markets in which carbon
 may be traded being just one manifestation. Carbon markets have the effect
 of putting a price on what was until very recently free and this change is
 likely to have financial consequences for firms in the longer term. In
 order to place the accounting implications of carbon markets in context,
 the paper provides a scientific and policy introduction to GCC. As regards
 accounting issues, the paper reviews the problems that are associated with
 the valuation of pollution allowances and their identification as assets
 (and the liabilities that arise if companies pollute beyond allowed
 levels). A closer inspection of the risks and uncertainties that arise
 from GCC initiates a discussion of non-financial accounting and reporting
 about carbon. Non-financial reporting is necessary to allow conditions for
 democratic accountability in an uncertain setting. 
Journal: European Accounting Review 
Pages: 697-717 
Issue: 4 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802489162 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802489162 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:17:y:2008:i:4:p:697-717




Template-Type: ReDIF-Article 1.0
Author-Name: Ans Kolk 
Author-X-Name-First: Ans 
Author-X-Name-Last: Kolk 
Author-Name: David Levy 
Author-X-Name-First: David 
Author-X-Name-Last: Levy 
Author-Name: Jonatan Pinkse 
Author-X-Name-First: Jonatan 
Author-X-Name-Last: Pinkse 
Title: Corporate Responses in an Emerging Climate Regime: The Institutionalization and Commensuration of Carbon Disclosure 
Abstract:
  This paper examines corporate responses to climate change in relation to
 the development of reporting mechanisms for greenhouse gases, more
 specifically carbon disclosure. It first presents some background and
 context on the evolution of carbon trading and disclosure, and then
 develops a conceptual framework using theories of global governance,
 institutional theory and commensuration to understand the role of carbon
 disclosure in the emerging climate regime. Subsequently, a closer look is
 taken at carbon disclosure and reporting mechanisms, with a particular
 focus on the Carbon Disclosure Project (CDP). Our analysis of responses
 shows that CDP has been successfully using institutional investors to urge
 firms to disclose extensive information about their climate change
 activities. However, although response rates in terms of numbers of
 disclosing firms are impressive and growing, neither the level of carbon
 disclosure that CDP promotes nor the more detailed carbon accounting
 provide information that is particularly valuable for investors, NGOs or
 policy makers at this stage. As a project of commensuration, carbon
 disclosure has achieved some progress in technical terms, but much less
 with regard to the cognitive and value dimensions. 
Journal: European Accounting Review 
Pages: 719-745 
Issue: 4 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802489121 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802489121 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:4:p:719-745




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Johnston 
Author-X-Name-First: Derek 
Author-X-Name-Last: Johnston 
Author-Name: Stephan Sefcik 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Sefcik 
Author-Name: Naomi Soderstrom 
Author-X-Name-First: Naomi 
Author-X-Name-Last: Soderstrom 
Title: The Value Relevance of Greenhouse Gas Emissions Allowances: An Exploratory Study in the Related United States SO2 Market 
Abstract:
  This paper examines the valuation implications of greenhouse gas (GHG)
 emissions allowances. We posit that the value of a firm's bank of emission
 allowances has two components that are likely to be positively valued by
 the capital market: (1) an asset value component; and (2) a real option
 value component. Since the necessary data to examine this research
 hypothesis in the setting of GHG emission allowances is not yet available,
 we test our conjecture by examining the value relevance of sulfur dioxide
 (SO2) emission allowances held by US electric utilities. Empirical results
 reveal that the capital market assigns a positive price to a firm's bank
 of SO2 emission allowances, consistent with the argument that emission
 allowances have, at least, an asset value component that is assigned a
 positive price by the market. We also find weak evidence consistent with
 the market assigning a real option value to the allowance banks. 
Journal: European Accounting Review 
Pages: 747-764 
Issue: 4 
Volume: 17 
Year: 2008 
X-DOI: 10.1080/09638180802481615 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802481615 
File-Format: text/html
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Handle: RePEc:taf:euract:v:17:y:2008:i:4:p:747-764




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 1-5 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902859884 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902859884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:1-5




Template-Type: ReDIF-Article 1.0
Author-Name: Beatriz Garcia Osma 
Author-X-Name-First: Beatriz Garcia 
Author-X-Name-Last: Osma 
Author-Name: Steven Young 
Author-X-Name-First: Steven 
Author-X-Name-Last: Young 
Title: R&D Expenditure and Earnings Targets 
Abstract:
  This paper examines whether firms cut R&D spending in response to
 short-term earnings pressures and how equity markets interpret such
 behaviour. Failure to report positive earnings and earnings growth
 increases the probability of a subsequent cut in R&D spending, while
 pressure to report positive earnings and earnings growth in the current
 period leads to contemporaneous cuts in R&D investment. On average,
 investors place less weight on earnings increases accompanied by
 unexpected cuts in R&D spending. However, the magnitude of the valuation
 discount varies according to the perceived reason for the cut and the
 importance of R&D investment as a driver of firm value. 
Journal: European Accounting Review 
Pages: 7-32 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802016718 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802016718 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:7-32




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Cho 
Author-X-Name-First: Charles 
Author-X-Name-Last: Cho 
Title: Legitimation Strategies Used in Response to Environmental Disaster: A French Case Study of Total SA's Erika and AZF Incidents 
Abstract:
  This paper presents a case study examining the environmental disclosure
 decisions and practices of Total SA (hereafter, Total), one of the largest
 integrated oil and gas companies in the world. Because the company has a
 substantial international presence and operates in environmentally
 sensitive industries, management is constantly exposed to ethical and
 social issues. The company faced two major environment-related disasters:
 (1) the sinking of the Erika tanker, leading to a major oil spill along
 the Atlantic coast of Bretagne in 1999; and (2) the 2001 deadly explosion
 of the AZF chemical plant in the suburb of Toulouse, France. In this case
 study I aim at investigating the strategies employed by Total to defend
 and downplay its environmental performance and activities related to these
 incidents. The case is framed within legitimacy theory, originating from
 the notion of a 'social contract' between organizations and society.
 Findings generally indicate that Total used communication strategies to
 legitimate their actions and support the argument that social and
 environmental disclosures remain a powerful legitimacy device rather than
 an effort towards greater accountability. 
Journal: European Accounting Review 
Pages: 33-62 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802579616 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802579616 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:33-62




Template-Type: ReDIF-Article 1.0
Author-Name: Monica Espinosa 
Author-X-Name-First: Monica 
Author-X-Name-Last: Espinosa 
Author-Name: Miles Gietzmann 
Author-X-Name-First: Miles 
Author-X-Name-Last: Gietzmann 
Author-Name: Ivana Raonic 
Author-X-Name-First: Ivana 
Author-X-Name-Last: Raonic 
Title: US Institutional Investors Response to the News Flow of Intangibles Intensive European Stocks: A Study of European BioTech and Pharma Stocks 
Abstract:
  Earlier research on non-US companies has documented that listing an
 American Depositary Receipt results in an increase in US institutional
 investor holdings. It is suggested that this result arises because US
 cross listing, with the related US GAAP financial reporting reconciliation
 requirements, improves the monitoring of management in the principal agent
 relationship with US investors. However, for companies in some industries,
 greater attention to financial reporting is of limited value since market
 value is highly dependent upon intangibles. Non-financial performance
 indicators, not covered by US GAAP, are critical for valuation when
 intangibles make up a significant part of economic firm value. This
 research restricts attention to the BioTech-Pharma sector and tests to see
 whether US institutional investors accept enhanced disclosure of key
 non-financial performance indicators, as a partial substitute for
 non-adoption of US financial reporting standards. Specifically, tests are
 conducted to see whether US institutional investors are more or less
 sensitive to the non-financial disclosures of non-adopters. Results from
 the econometric analysis provide support for the hypothesis that US
 institutional investors respond more to the non-financial disclosures of
 non-adopters suggesting that US institutional investors do see enhanced
 disclosure of non-financial performance indicators in an intangibles
 intensive industry as a partial substitute for full compliance with US
 financial reporting standards. 
Journal: European Accounting Review 
Pages: 63-92 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802481581 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802481581 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:63-92




Template-Type: ReDIF-Article 1.0
Author-Name: Fabien De Geuser 
Author-X-Name-First: Fabien 
Author-X-Name-Last: De Geuser 
Author-Name: Stella Mooraj 
Author-X-Name-First: Stella 
Author-X-Name-Last: Mooraj 
Author-Name: Daniel Oyon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Oyon 
Title: Does the Balanced Scorecard Add Value? Empirical Evidence on its Effect on Performance 
Abstract:
  Since its emergence at the beginning of the 1990s, numerous companies
 have adopted the Balanced Scorecard (BSC). This paper tackles two research
 questions: (1) whether the BSC adds value to companies and (2) if so, how
 does it contribute to organisational performance. In contrast to previous
 literature that does not separate these two questions, we rely on an
 established methodology (Foster and Swenson, 1997) to separate and
 quantify both the BSC contribution to performance and the way that the
 contribution is achieved, by applying a unique cause-and-effect scheme to
 the BSC. Our empirical results are based on survey data collected from 76
 business units. They indicate first that the Balanced Scorecard has a
 positive impact on organisational performance. More specifically, the BSC
 improves the integration of the management processes and empowers people.
 Using the Strategy-Focused-Organisation (SFO) model (Kaplan and Norton,
 2001), we empirically find that the sources of performance derived from
 the BSC are primarily of three types: (1) a better translation of the
 strategy into operational terms, (2) the fact that strategising becomes a
 continuous process, and (3) the greater alignment of various processes,
 services, competencies and units of an organisation. 
Journal: European Accounting Review 
Pages: 93-122 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802481698 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802481698 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:93-122




Template-Type: ReDIF-Article 1.0
Author-Name: Khaled Al Jifri 
Author-X-Name-First: Khaled 
Author-X-Name-Last: Al Jifri 
Author-Name: David Citron 
Author-X-Name-First: David 
Author-X-Name-Last: Citron 
Title: The Value-Relevance of Financial Statement Recognition versus Note Disclosure: Evidence from Goodwill Accounting 
Abstract:
  The relative significance of financial statement recognition and note
 disclosure is an important issue for accounting regulators, preparers and
 auditors. While standard-setters prioritise financial recognition over
 disclosure, the empirical evidence on the value-relevance of note
 disclosures is mixed. This is partly due to the severe methodological
 problems inherent in comparing the two modes of presentation. This paper
 examines this issue in a new context by exploiting the UK regulatory
 environment where old pre-FRS 10 goodwill continues to be disclosed in the
 notes to the accounts at the same time as new post-FRS 10 goodwill is
 capitalised. It thus uses a within-firm research method to examine the
 relative significance of the two goodwill amounts. The analysis is based
 on a sample of 243 non-financial firms containing amounts of both
 recognised and disclosed goodwill in their 2002 financial statements. Both
 variables are significantly associated with share price. In addition, for
 firms engaging in R&D, there is no significant difference between the
 contributions of disclosed and recognised goodwill in explaining market
 value, a result consistent with the markets efficiently incorporating
 goodwill information irrespective of where it appears in the annual
 report. 
Journal: European Accounting Review 
Pages: 123-140 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802324351 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802324351 
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:123-140




Template-Type: ReDIF-Article 1.0
Author-Name: Norman Macintosh 
Author-X-Name-First: Norman 
Author-X-Name-Last: Macintosh 
Title: Accounting and the Truth of Earnings Reports: Philosophical Considerations 
Abstract:
  This paper investigates the philosophical nature of accounting reports of
 earnings. Standard setters' authoritative pronouncements (conceptual
 frameworks, GAAP, EITFs, etc.) hold to the realist philosophical view that
 true earnings reports are ex post representations of some ex ante
 out-there, preexisting, extra-linguistic real economic increase in the
 enterprise's wealth. Contra this view, in practice financial accounting
 executives, in league with investment analysts, routinely engage in
 earnings management and manipulation in order to satisfy the capital
 market's insatiable demands for earnings levels which will support and
 enhance the enterprise's stock market price. The paper considers this
 state of affairs from Harold Frankfurt's truth, lies and 'bullshit'
 treatise (2005, 2006). It sees earnings reports as 'short of lies', and so
 the accountants can only be faulted for their indifference to the truth
 and for giving the impression that they are trying to present the truth. A
 poststructuralist philosophical perspective, however, problematizes this
 conclusion on the basis that accounting language is not a transparent
 medium but rather is the material used to manufacture accounting 'truths'.
 It sees accounting 'truths' as contingent upon linguistic doctrinal
 accounting discourses currently ceded place of privilege by standard
 setters and upon the subjective considerations of accountants when they
 produce reports of earnings. The paper concludes that both Frankfurt's
 perspective and that of poststructuralist philosophers can provide
 valuable insights into this ironic state of affairs. 
Journal: European Accounting Review 
Pages: 141-175 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802327073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802327073 
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:141-175




Template-Type: ReDIF-Article 1.0
Author-Name: Hannu Schadewitz 
Author-X-Name-First: Hannu 
Author-X-Name-Last: Schadewitz 
Title: International Accounting (1st Edition) Timothy S. Doupnik and Hector B. Perera Boston: McGraw-Hill/Irwin, 2007, xvi+640 pp.+CD, $155.94, $84.51 (paperback), ISBN-13: 978-0-07-250775-1, ISBN-10: 0-07-250775-6 
Abstract:
Journal: European Accounting Review 
Pages: 177-179 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902834408 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902834408 
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:177-179




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Major 
Author-X-Name-First: Maria 
Author-X-Name-Last: Major 
Title: Management Accounting Change: Approaches and Perspectives Danture Wickramasinghe and Chandana Alawattage Routledge, Oxon, 2007, xxii + 546 pp., &#xa3;35.14, ISBN: 978-0-415-39331-7 (hbk); 978-0-415-39332-4 (pbk). 
Abstract:
Journal: European Accounting Review 
Pages: 180-183 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902834374 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902834374 
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:180-183




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Napier 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Napier 
Title: Confession and Bookkeeping: The Religious, Moral, and Rhetorical Roots of Modern Accounting, by James Aho State University of New York Press, Albany, 2005, xx + 131, US$16.95, ISBN 0-7914-6546-2 
Abstract:
Journal: European Accounting Review 
Pages: 183-186 
Issue: 1 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902834358 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902834358 
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Handle: RePEc:taf:euract:v:18:y:2009:i:1:p:183-186




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Derfuss 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Derfuss 
Title: The Relationship of Budgetary Participation and Reliance on Accounting Performance Measures with Individual-Level Consequent Variables: A Meta-Analysis 
Abstract:
  Despite its long history, extant research on the relations among
 budgetary participation, reliance on accounting performance measures
 (RAPM) and individual-level consequent variables remains marked by
 conflicting findings. To solve these conflicts, prior research has
 introduced variables that might mediate or moderate the relations. But
 many studies use small samples, and their conflicting findings might be
 due to statistical artefacts, such as sampling error. This paper
 undertakes a meta-analysis to assess whether prior findings are
 homogeneous after correcting for these artefacts and to explore the
 moderating effects of study design choices regarding construct
 measurement, random vs. non-random sampling and industry differences. Many
 relations of participative budgeting and RAPM are homogeneous; several are
 truly heterogeneous. Construct measurement emerges as the most important
 moderator: different measures of managerial performance explain the
 relation of participative budgeting to managerial performance, and
 different measures of RAPM largely clarify the relation of RAPM to
 budgetary participation. This relation also seems contingent on industry
 differences. These findings have important implications for research and
 managerial practice. 
Journal: European Accounting Review 
Pages: 203-239 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802652371 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802652371 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:203-239




Template-Type: ReDIF-Article 1.0
Author-Name: Timo Hyvonen 
Author-X-Name-First: Timo 
Author-X-Name-Last: Hyvonen 
Author-Name: Janne Jarvinen 
Author-X-Name-First: Janne 
Author-X-Name-Last: Jarvinen 
Author-Name: Jukka Pellinen 
Author-X-Name-First: Jukka 
Author-X-Name-Last: Pellinen 
Author-Name: Tapani Rahko 
Author-X-Name-First: Tapani 
Author-X-Name-Last: Rahko 
Title: Institutional Logics, ICT and Stability of Management Accounting 
Abstract:
  The purpose of this paper is to study the institutional logics of how and
 why two case units in the Finnish Defence Forces have reacted differently
 to external pressures originating from the State Audit Office to change
 their management accounting systems. The situation is made complex due to
 the fact that in military organisations, accountants' tasks have
 traditionally consisted of bookkeeping and financial reporting, while
 management accounting tasks especially (e.g. planning and control) have
 been performed predominantly by military personnel, who can be called
 hybrid accountants. The data for this study consists of project memos and
 interviews with people involved in designing and implementing
 enterprise-resource-planning (ERP)-linked cost accounting and reporting
 systems. In the case unit where management accounting and control had
 become institutionalised as a part of the uniformed officer's professional
 sphere, various resistance strategies (i.e. compromise strategy/pacifying
 tactics, avoidance strategy/buffering tactics and defiance
 strategy/dismissing tactics) were adopted. However, where this was not the
 case, the response was acquiescence. Despite the differences in responses
 to institutional pressure, the outcome for management accounting was the
 same. In the first case, demands for change were resisted, and in the
 second case, the old management accounting system was transferred into new
 information and communication technology (ICT) infrastructure without any
 significant change in content. 
Journal: European Accounting Review 
Pages: 241-275 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802681511 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802681511 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:241-275




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Davila 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Davila 
Author-Name: Daniel Oyon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Oyon 
Title: Introduction to the Special Section on Accounting, Innovation and Entrepreneurship 
Abstract:
Journal: European Accounting Review 
Pages: 277-280 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902924522 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902924522 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:277-280




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Davila 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Davila 
Author-Name: George Foster 
Author-X-Name-First: George 
Author-X-Name-Last: Foster 
Author-Name: Daniel Oyon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Oyon 
Title: Accounting and Control, Entrepreneurship and Innovation: Venturing into New Research Opportunities 
Abstract:
  The relevance of accounting and control to entrepreneurship and
 innovation has become more salient over the last few years. The
 traditional paradigm that identified accounting and control as nothing
 else but detrimental to these two aspects of management has been
 challenged both through new concepts and recent empirical evidence. This
 paper presents a review of this emerging literature. It examines the
 theoretical concepts that are shaping these fields as well as the evidence
 that is accumulating. It also presents a framework to structure the study
 of management control systems in innovative settings and future
 opportunities for research. 
Journal: European Accounting Review 
Pages: 281-311 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902731455 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902731455 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:281-311




Template-Type: ReDIF-Article 1.0
Author-Name: Gavin Cassar 
Author-X-Name-First: Gavin 
Author-X-Name-Last: Cassar 
Author-Name: Christopher Ittner 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Ittner 
Title: Initial Retention of External Accountants in Startup Ventures 
Abstract:
  This study investigates the determinants of the initial retention of
 external accountants by new US startups. We test several arguments related
 to agency and credibility needs, financial activity and complexity, and
 accounting support and advice. Consistent with financial activity and
 complexity arguments, we find that intended scale and bank account
 activity are positively associated with both the actual and intended
 retention of an accountant. Comparing the decision to retain an accountant
 with the retention of another professional service, retaining a lawyer, we
 find many of the same factors to be significant. However, we find that
 lawyers are more likely to be retained during heightened uncertainty,
 primarily given the role of lawyers with patent and intellectual property
 assistance. Overall, these results suggest that some of the determinants
 of external accountant retention contrast with the determinants of
 internal accounting resource adoption, which are primarily related to
 decision-making needs and uncertainty. 
Journal: European Accounting Review 
Pages: 313-340 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902731562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902731562 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:313-340




Template-Type: ReDIF-Article 1.0
Author-Name: Silvana Revellino 
Author-X-Name-First: Silvana 
Author-X-Name-Last: Revellino 
Author-Name: Jan Mouritsen 
Author-X-Name-First: Jan 
Author-X-Name-Last: Mouritsen 
Title: The Multiplicity of Controls and the Making of Innovation 
Abstract:
  This paper contributes to our understanding of relations between control
 and innovation by adding a process perspective where innovation and the
 use of management controls co-develop. As innovation grows, it has to pass
 various trials each of which links the innovation to obstacles which are
 mediated by unique sets of technologies of control. In this process the
 innovation changes and adapts. This thesis is drawn from the case of
 Italian Autostrade's innovation Telepass which was an automatic toll
 collection devise developed to make traffic fast, safe and fluid.
 Throughout its development it had to pass trials of technology, the
 network of cooperating firms, the user, the organisation, and in this
 process it not only developed itself, it also transformed Autostrade and
 required additional innovations. The set of controls included elements of
 budgetary planning, strategic vision, user satisfaction, productivity and
 highly pointed achievement targets. This multiplicity of controls changed
 and adapted to the innovation as the innovation unfolds. The controls were
 part of the innovation more likely than an external device to make it
 transparent. They engaged the individual trials and changed from trial to
 trial. This message adds to the literature which suggests that control
 should be structured in relation to the characteristics of the innovation.
 Rather than responding primarily to the strategic context and the
 uncertainties around the innovation, controls are involved more in trials
 around specific challenges to the development of innovation. 
Journal: European Accounting Review 
Pages: 341-369 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802681529 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802681529 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:341-369




Template-Type: ReDIF-Article 1.0
Author-Name: Josep Bisbe 
Author-X-Name-First: Josep 
Author-X-Name-Last: Bisbe 
Author-Name: Ricardo Malagueno 
Author-X-Name-First: Ricardo 
Author-X-Name-Last: Malagueno 
Title: The Choice of Interactive Control Systems under Different Innovation Management Modes 
Abstract:
  This paper contributes to the recent levers of control (LOC) literature
 on the relationships between innovation and management accounting and
 control systems (MACS) by emphasising the importance of the choice by
 which individual MACS are selected for interactive use. Using survey data
 collected from 57 medium-sized Spanish firms, we find evidence supporting
 (1) the choice of individual MACS selected for interactive use is
 associated with a firm's innovation management mode (IMM), and (2) the
 level of product innovation output is influenced by whether or not IMM and
 interactive MACS feature similar cognitive models and whether the
 sophistication of the information contents provided by the interactive
 MACS responds to the priority needs perceived in the IMM. Our findings
 further indicate that similarity in patterns between IMM and MACS does not
 lead to a beneficial impact on the level of innovation outputs, suggesting
 instead that it may induce the replication of existing dysfunctional
 trends caused by innovation momentum. 
Journal: European Accounting Review 
Pages: 371-405 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902863803 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902863803 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:371-405




Template-Type: ReDIF-Article 1.0
Author-Name: William Messier 
Author-X-Name-First: William 
Author-X-Name-Last: Messier 
Title: Auditing, Trust and Governance: Developing Regulation in Europe 
Abstract:
Journal: European Accounting Review 
Pages: 407-408 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902924548 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902924548 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:407-408




Template-Type: ReDIF-Article 1.0
Author-Name: John Roberts 
Author-X-Name-First: John 
Author-X-Name-Last: Roberts 
Title: Global Accountabilities: Participation, Pluralism and Public Ethics 
Abstract:
Journal: European Accounting Review 
Pages: 408-412 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902928036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902928036 
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:408-412




Template-Type: ReDIF-Article 1.0
Author-Name: Taran Patel 
Author-X-Name-First: Taran 
Author-X-Name-Last: Patel 
Title: Sustainability Accounting and Accountability 
Abstract:
Journal: European Accounting Review 
Pages: 413-420 
Issue: 2 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902928069 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902928069 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:2:p:413-420




Template-Type: ReDIF-Article 1.0
Author-Name: Saverio Bozzolan 
Author-X-Name-First: Saverio 
Author-X-Name-Last: Bozzolan 
Author-Name: Marco Trombetta 
Author-X-Name-First: Marco 
Author-X-Name-Last: Trombetta 
Author-Name: Sergio Beretta 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Beretta 
Title: Forward-Looking Disclosures, Financial Verifiability and Analysts' Forecasts: A Study of Cross-Listed European Firms 
Abstract:
  Forward-looking disclosures are a crucial source of information when
 valuing a company. We study the effect of forward-looking disclosures on
 analysts' forecast properties, in particular accuracy and dispersion. Our
 sample includes all the non-financial firms from Italy, Germany, France
 and Switzerland that in year 2002 were cross-listed on local stock
 exchanges and on the New York Stock Exchange. We conduct a content
 analysis on the Annual Report and the 20F form of these companies for the
 years 2002, 2003 and 2004. We differentiate between forward-looking
 information on the basis of the disclosure of expected effects on future
 financial performance and the disclosure of a measure of this impact. We
 define forward-looking information disclosed with the characteristics of
 being quantified and directed (and financial) as financially verifiable as
 it facilitates the comparison with its subsequent realisation in relation
 to expected future financial performance. Our analysis finds support for
 the theoretical prediction that verifiable disclosures are more effective
 than unverifiable disclosures at improving accuracy and reducing
 dispersion of analysts' forecasts. Our sample also allows us to explore
 the effects of the difference between the degrees of verifiability between
 forward-looking disclosures of the 20F form versus those of the domestic
 annual report. Our analysis provides empirical support for the hypotheses
 that these differences are significant and have a significant effect on
 forecast properties. 
Journal: European Accounting Review 
Pages: 435-473 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802627779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802627779 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:435-473




Template-Type: ReDIF-Article 1.0
Author-Name: Ken Bechmann 
Author-X-Name-First: Ken 
Author-X-Name-Last: Bechmann 
Author-Name: Toke Hjortsh&#xf8;j 
Author-X-Name-First: Toke 
Author-X-Name-Last: Hjortsh&#xf8;j 
Title: Disclosed Values of Option-Based Compensation - Incompetence, Deliberate Underreporting or the Use of Expected Option Life? 
Abstract:
  New accounting standards require firms to value the costs of option-based
 compensation (OBC). Earlier research has documented that firms in the US
 generally underreport the values of OBC by manipulating the model inputs
 used for valuation purposes. This paper examines the information on and
 values of OBC disclosed by Danish firms. The results show that many firms
 fail to provide the information required on OBC. However, this does not
 seem to be a deliberate attempt to hide information, but rather is the
 result of firms not paying enough attention to the information
 requirements. Similarly, when studying the disclosed values of OBC, there
 is no clear evidence of underreporting. For example, there is no evidence
 that firms use manipulated values for the Black-Scholes (Merton) model
 inputs in their valuations. Furthermore, firms determine the expected
 option life in a way that is generally consistent with the guidelines
 provided by the accounting standards. The only exception is when options
 are granted to the board of directors, as this led a few firms to
 underreport option values in a way that cannot be explained by an
 appropriate adjustment of the expected option life. These findings differ
 from those of the US, but are consistent with the more limited use of OBC
 and the lower level of attention paid to these values in Denmark.
 Furthermore, the financial press in Denmark and powerful Danish
 institutional investors seem to have a disciplinary effect on Danish firms
 such that most of the firms provide sufficient and accurate information
 even though the official consequences of not doing so are very limited. 
Journal: European Accounting Review 
Pages: 475-513 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802481672 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802481672 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:475-513




Template-Type: ReDIF-Article 1.0
Author-Name: Sandy Qu 
Author-X-Name-First: Sandy 
Author-X-Name-Last: Qu 
Author-Name: Shujun Ding 
Author-X-Name-First: Shujun 
Author-X-Name-Last: Ding 
Author-Name: Shelley Lukasewich 
Author-X-Name-First: Shelley 
Author-X-Name-Last: Lukasewich 
Title: Research the American Way: The Role of US Elites in Disseminating and Legitimizing Canadian Academic Accounting Research 
Abstract:
  This paper examines authorship distribution in a premiere Canadian-based
 research journal, Contemporary Accounting Research (CAR). It provides
 empirical evidence of a strong US elite dominance in the research agenda
 of a non-US research community. This is illustrated through a consistently
 higher proportion of authorship representation and participation of US
 elites (measured by doctoral origins) in CAR and its associated
 Conference. We also found that a small group of Canadian schools (measured
 by academic affiliations) contributes the most publications to CAR but
 their representation on the CAR editorial board and participation at the
 PhD Consortium was limited. We express our concern as to the constructive
 role of CAR as a top-tier journal in the dissemination of accounting
 research. We draw upon discussion on a European research tradition
 (represented by Accounting, Organizations and Society and The European
 Accounting Review), and its general approach to accounting research, which
 is perceived as distinct from the US elite approach (Lukka and Kasanen,
 1996). Insights gained help widen the acceptable research in top tier
 journals such as CAR to further its aim to enhance geographical and
 intellectual diversity. 
Journal: European Accounting Review 
Pages: 515-569 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902863878 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902863878 
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:515-569




Template-Type: ReDIF-Article 1.0
Author-Name: David Alexander 
Author-X-Name-First: David 
Author-X-Name-Last: Alexander 
Author-Name: Eva Eberhartinger 
Author-X-Name-First: Eva 
Author-X-Name-Last: Eberhartinger 
Title: The True and Fair View in the European Union 
Abstract:
  This paper explores the issue of the true and fair view (TFV) and the
 overriding principle within the European Union (EU), via a legally based
 analysis of the relationship between EU and national laws. We apply the
 supremacy of European law to methods of incorporating the TFV into
 national legislation, using Austria as a detailed case study, showing that
 all countries - maybe against their original intention - either have an
 override (as does Austria, contrary to the prevailing local opinion) or
 have failed to honour their EU commitments. As part of our argument, we
 explain the importance of the Roman law teleological principle in legal
 application and interpretation, as is well known in Continental countries.
 We show that the effect of the UK TFV override is in principle exactly
 analogous, only arguably even more powerful, which is not at all well
 known in Anglo-Saxon countries. We suggest reasons why the status quo ante
 in particular countries may be adhered to, and generalise the implications
 of our arguments. 
Journal: European Accounting Review 
Pages: 571-594 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902784405 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902784405 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:571-594




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: Editorial Note 
Abstract:
Journal: European Accounting Review 
Pages: 595-595 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903162288 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903162288 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:595-595




Template-Type: ReDIF-Article 1.0
Author-Name: Teemu Malmi 
Author-X-Name-First: Teemu 
Author-X-Name-Last: Malmi 
Author-Name: Markus Granlund 
Author-X-Name-First: Markus 
Author-X-Name-Last: Granlund 
Title: In Search of Management Accounting Theory 
Abstract:
  In this article we discuss the motivation for and role of theory in
 management accounting. We argue that theories in an applied field such as
 management accounting research should provide explanations that are useful
 for those we study - managers, organizations and society. We evaluate the
 nature of theories currently used and developed. Those theories that are
 considered theories by the research community are largely imported from
 other disciplines, but have hardly anything that makes them unique to
 management accounting. Those theories that are not currently regarded as
 theories by many of our colleagues attempt to explain how to apply
 management accounting to achieve superior performance. We argue that both
 forms of theories, at present, largely fail to provide valid support for
 practitioners. We contend that management accounting theory should help us
 to answer questions of what kind of management accounting systems we
 should apply, how, in what circumstances, and how to change them. We
 provide suggestions on how management accounting research could proceed to
 produce better theories in this regard. 
Journal: European Accounting Review 
Pages: 597-620 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902863779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902863779 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:597-620




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Quattrone 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Quattrone 
Title: 'We have never been Post-modern': On the Search of Management Accounting Theory 
Abstract:
Journal: European Accounting Review 
Pages: 621-630 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902863837 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902863837 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:621-630




Template-Type: ReDIF-Article 1.0
Author-Name: Teemu Malmi 
Author-X-Name-First: Teemu 
Author-X-Name-Last: Malmi 
Author-Name: Markus Granlund 
Author-X-Name-First: Markus 
Author-X-Name-Last: Granlund 
Title: Agreeing on Problems, Where are the Solutions? A Reply to Quattrone 
Abstract:
Journal: European Accounting Review 
Pages: 631-639 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902866830 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902866830 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:631-639




Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Bonacchi 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Bonacchi 
Title: Corporate Social Responsibility: Readings and Cases in a Global Context 
Abstract:
Journal: European Accounting Review 
Pages: 641-644 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903162247 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903162247 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:641-644




Template-Type: ReDIF-Article 1.0
Author-Name: Garen Markarian 
Author-X-Name-First: Garen 
Author-X-Name-Last: Markarian 
Title: The Routledge Companion to Fair Value and Financial Reporting 
Abstract:
Journal: European Accounting Review 
Pages: 645-648 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903162254 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903162254 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:645-648




Template-Type: ReDIF-Article 1.0
Author-Name: Matti Skoog 
Author-X-Name-First: Matti 
Author-X-Name-Last: Skoog 
Title: Visualising Intangibles: Measuring and Reporting in the Knowledge Economy 
Abstract:
Journal: European Accounting Review 
Pages: 648-652 
Issue: 3 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903162270 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903162270 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:3:p:648-652




Template-Type: ReDIF-Article 1.0
Author-Name: David Naranjo-Gil 
Author-X-Name-First: David 
Author-X-Name-Last: Naranjo-Gil 
Author-Name: Victor Maas 
Author-X-Name-First: Victor 
Author-X-Name-Last: Maas 
Author-Name: Frank Hartmann 
Author-X-Name-First: Frank 
Author-X-Name-Last: Hartmann 
Title: How CFOs Determine Management Accounting Innovation: An Examination of Direct and Indirect Effects 
Abstract:
  Although management accounting innovations such as Activity-Based
 Costing, the Balanced Scorecard and benchmarking have received much
 academic interest in recent years, our understanding of why some
 organizations adopt and implement such new management accounting systems
 (MAS) and others do not, is still underdeveloped. This paper contributes
 to the literature by examining the role of the CFO in MAS innovation. We
 hypothesize that individual differences between CFOs are predictive of
 organizations' use of innovative MAS. In addition, we propose that CFO
 characteristics moderate the extent to which organizations rationally
 adapt to (environmental) contingencies. To examine this second prediction
 we compare the effects of strategy and historical performance on the
 adoption of innovative MAS for organizations with different types of CFOs.
 We test our hypotheses using a combination of archival and survey data
 from the public health care sector in Spain. Our results are generally
 supportive of our hypotheses. 
Journal: European Accounting Review 
Pages: 667-695 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180802627795 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180802627795 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:667-695




Template-Type: ReDIF-Article 1.0
Author-Name: Macario Camara 
Author-X-Name-First: Macario 
Author-X-Name-Last: Camara 
Author-Name: Eva Chamorro 
Author-X-Name-First: Eva 
Author-X-Name-Last: Chamorro 
Author-Name: Alonso Moreno 
Author-X-Name-First: Alonso 
Author-X-Name-Last: Moreno 
Title: Stakeholder Reporting: The Spanish Tobacco Monopoly (1887-1986) 
Abstract:
  Stakeholder theory explains organizational responses to changing demands
 from constituents. Almost all accounting research drawing on stakeholder
 theory addresses social responsibility issues. In contrast, we examine how
 our focal firm, the Spanish tobacco monopoly, responded to stakeholders'
 demands through its annual reports over the century 1887-1986, that is,
 from the privatization of the firm's administration to the loss of
 monopolistic conditions as a consequence of Spain's entry into the
 European Economic Community. Our findings reveal how these reports
 reflected the changing importance of different categories of stakeholders
 as well as the alignment of financial reporting with organisational
 responses to stakeholders' demands. Throughout this period the firm's
 major strategic stakeholder was the state, and the dramatic changes in
 Spanish forms of government, as well as a change in the state's status
 vis-a-vis the firm (until 1945 as lessor of the monopoly, and thereafter
 also as a major shareholder) affected the amount and type of financial
 information in these reports; however, the strategy remained generally
 proactive until 1945 and accommodative thereafter. The other strategic
 stakeholder was the workers, and equally dramatic changes in Spanish
 labour activism affected the reporting of worker welfare programmes. After
 Spain's democratization, society in general became a more important
 stakeholder, and reports began to address tobacco-related health concerns. 
Journal: European Accounting Review 
Pages: 697-717 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180902863753 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902863753 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:697-717




Template-Type: ReDIF-Article 1.0
Author-Name: Irvine Lapsley 
Author-X-Name-First: Irvine 
Author-X-Name-Last: Lapsley 
Author-Name: Riccardo Mussari 
Author-X-Name-First: Riccardo 
Author-X-Name-Last: Mussari 
Author-Name: Gert Paulsson 
Author-X-Name-First: Gert 
Author-X-Name-Last: Paulsson 
Title: On the Adoption of Accrual Accounting in the Public Sector: A Self-Evident and Problematic Reform 
Abstract:
Journal: European Accounting Review 
Pages: 719-723 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903334960 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903334960 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:719-723




Template-Type: ReDIF-Article 1.0
Author-Name: Robyn Pilcher 
Author-X-Name-First: Robyn 
Author-X-Name-Last: Pilcher 
Author-Name: Graeme Dean 
Author-X-Name-First: Graeme 
Author-X-Name-Last: Dean 
Title: Consequences and Costs of Financial Reporting Compliance for Local Government 
Abstract:
  Local governments are continuously being subjected to changing
 legislation in regard to reporting requirements. Results of this research
 indicate that the amount of time allocated to complying with external
 reporting requirements was often considered excessive and not always
 relevant - detracting from the 'doing'. It was also revealed that the
 bottom line is perceived to be the most important indicator of a council's
 performance by stakeholders. From this, several implications emerge -
 including the potential for manipulation of accounting figures to achieve
 a target operating result. Another includes councils losing their original
 identity as service providers to the community. Hence, financial,
 political and social costs appear to be associated with continually
 changing financial reporting requirements imposed on local government.
 Future research proposes to take the derived questionnaire used here to
 other countries in order to determine whether data prepared using
 financial accounting standards (like the International Financial Reporting
 Standards) distort the information used by the various council decision
 makers. 
Journal: European Accounting Review 
Pages: 725-744 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903334978 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903334978 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:725-744




Template-Type: ReDIF-Article 1.0
Author-Name: Howard Mellett 
Author-X-Name-First: Howard 
Author-X-Name-Last: Mellett 
Author-Name: Neil Marriott 
Author-X-Name-First: Neil 
Author-X-Name-Last: Marriott 
Author-Name: Louise Macniven 
Author-X-Name-First: Louise 
Author-X-Name-Last: Macniven 
Title: Diffusion of an Accounting Innovation: Fixed Asset Accounting in the NHS in Wales 
Abstract:
  As part of 'New Public Management' in the UK, changes have been made to
 the accounting regime. These changes typically involve the adoption of
 private sector accounting and budgeting approaches using accruals
 accounting. The process by which new ideas are spread is known as
 diffusion; this paper deals with the aspect of diffusion relating to the
 imposition of a new idea, accruals accounting, and how it is absorbed by
 the organisation, in this case the NHS in Wales. In particular, the paper
 questions whether the lack of secondary diffusion is limiting the
 influence of the new accounting approach. To analyse the level of
 diffusion we have focused on one aspect, namely, information on capital
 assets. The paper uses a mixture of qualitative and quantitative research
 methods including in-depth interviews with senior managers at two NHS
 Trusts and a questionnaire survey with responses from senior finance staff
 in all NHS Trusts in Wales. We conclude that the diffusion of accruals
 accounting for fixed assets has been restricted to the primary level at
 the top layer of management and has not penetrated below that level. There
 is evidence of continuing managerial indifference to the accruals
 accounting consequences of owning fixed assets. 
Journal: European Accounting Review 
Pages: 745-764 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903118710 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903118710 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:745-764




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Pina 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Pina 
Author-Name: Lourdes Torres 
Author-X-Name-First: Lourdes 
Author-X-Name-Last: Torres 
Author-Name: Ana Yetano 
Author-X-Name-First: Ana 
Author-X-Name-Last: Yetano 
Title: Accrual Accounting in EU Local Governments: One Method, Several Approaches 
Abstract:
  This paper seeks to measure the degree of accrual implementation in EU
 local government accounting systems and also tries to give an answer to
 the question of why accrual accounting has overcome the resistance to
 other New Public Management (NPM) reforms in countries relatively
 suspicious of them. We carry out our analysis through the comparison of
 the accrual accounting legal requirements in force in each country, and
 the published financial statements, taking the IPSASs of the IFAC as a
 benchmark. The results show different degrees of accrual accounting
 implementation and legal compliance. The reason of accrual accounting
 dissemination lies partially in that the dual systems implemented in
 European Continental countries do not require the introduction of deep
 organizational changes and answer the democratic demands of citizens for
 higher responsiveness, transparency and accountability, while traditional
 budgetary statements are maintained for monitoring compliance with
 legality and for administrative decision-making purposes. 
Journal: European Accounting Review 
Pages: 765-807 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903118694 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903118694 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:765-807




Template-Type: ReDIF-Article 1.0
Author-Name: Michela Arnaboldi 
Author-X-Name-First: Michela 
Author-X-Name-Last: Arnaboldi 
Author-Name: Irvine Lapsley 
Author-X-Name-First: Irvine 
Author-X-Name-Last: Lapsley 
Title: On the Implementation of Accrual Accounting: A Study of Conflict and Ambiguity 
Abstract:
  There has been a major debate on the merits of accrual accounting in the
 public sector in general. This paper is an implementation study of accrual
 accounting in local government. It examines this issue from an
 implementation perspective. The implementation perspective adopted draws
 on Matland's ambiguity-conflict model (1995). This research is informed by
 a combined methods approach: the analysis of public documents and debates;
 a survey of local authority capital accountants and case study information
 on management's perceptions of this accounting information. This research
 reveals a complex outcome of reformers' initiatives which has resulted in
 these accounting changes being retained within the accounting domain and
 having limited impact on wider potential users of this information. 
Journal: European Accounting Review 
Pages: 809-836 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903136225 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903136225 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:809-836




Template-Type: ReDIF-Article 1.0
Author-Name: Trevor Boyns 
Author-X-Name-First: Trevor 
Author-X-Name-Last: Boyns 
Title: Two Hundred Years of Accounting Research 
Abstract:
Journal: European Accounting Review 
Pages: 837-840 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903335033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903335033 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:837-840




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Habersam 
Author-X-Name-First: Michael 
Author-X-Name-Last: Habersam 
Title: An Analysis of the Role of the Textbook in the Construction of Accounting Knowledge 
Abstract:
Journal: European Accounting Review 
Pages: 840-845 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903335017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903335017 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:840-845




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Norton 
Author-X-Name-First: Simon 
Author-X-Name-Last: Norton 
Title: Corporate Reporting and Company Law 
Abstract:
Journal: European Accounting Review 
Pages: 845-848 
Issue: 4 
Volume: 18 
Year: 2009 
X-DOI: 10.1080/09638180903335041 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903335041 
File-Format: text/html
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Handle: RePEc:taf:euract:v:18:y:2009:i:4:p:845-848




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: Editorial 
Abstract:
Journal: European Accounting Review 
Pages: 1-5 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638181003755203 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003755203 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:1-5




Template-Type: ReDIF-Article 1.0
Author-Name: Wouter Van Overfelt 
Author-X-Name-First: Wouter 
Author-X-Name-Last: Van Overfelt 
Author-Name: Marc Deloof 
Author-X-Name-First: Marc 
Author-X-Name-Last: Deloof 
Author-Name: Ann Vanstraelen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Vanstraelen 
Title: Determinants of Corporate Financial Disclosure in an Unregulated Environment: Evidence from the Early 20th Century 
Abstract:
  We investigate the determinants of corporate financial reporting in an
 unregulated setting. Prior to the First World War, limited liability
 companies in Belgium were obliged to publish financial statements, but
 financial reporting was virtually unregulated. Investor protection was
 generally very poor. Nevertheless, Belgian stock markets were booming.
 While the amount of information disclosed in the financial statements was
 generally low relative to the current levels of disclosure, there was
 significant variation in financial reporting across firms. Our results
 suggest that financial reporting was significantly affected by universal
 bank affiliations, bond financing and stock returns. Dividends were a
 substitute for income statement transparency. 
Journal: European Accounting Review 
Pages: 7-34 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180902731539 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902731539 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:7-34




Template-Type: ReDIF-Article 1.0
Author-Name: Efthimios Demirakos 
Author-X-Name-First: Efthimios 
Author-X-Name-Last: Demirakos 
Author-Name: Norman Strong 
Author-X-Name-First: Norman 
Author-X-Name-Last: Strong 
Author-Name: Martin Walker 
Author-X-Name-First: Martin 
Author-X-Name-Last: Walker 
Title: Does Valuation Model Choice Affect Target Price Accuracy? 
Abstract:
  We investigate whether the choice of valuation model affects the forecast
 accuracy of the target prices that investment analysts issue in their
 equity research reports, controlling for factors that influence this
 choice. We examine 490 equity research reports from international
 investment houses for 94 UK-listed firms published over the period July
 2002-June 2004. We use four measures of accuracy: (i) whether the target
 price is met during the 12-month forecast horizon (met_in); (ii) whether
 the target price is met on the last day of the 12-month forecast horizon
 (met_end); (iii) the absolute forecast error (abs_err); and (iv) the
 forecast error of target prices that are not met at the end of the
 12-month forecast horizon (miss_err). Based on met_in and abs_err,
 price-to-earnings (PE) outperform discounted cash flow (DCF) models, while
 based on met_end and miss_err the difference in valuation model
 performance is insignificant. However, after controlling for variables
 that capture the difficulty of the valuation task, the performance of DCF
 models improves in all specifications and, based on miss_err, they
 outperform PE models. These findings are robust to standard controls for
 selection bias. 
Journal: European Accounting Review 
Pages: 35-72 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180902990630 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902990630 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:35-72




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Francois Henri 
Author-X-Name-First: Jean-Francois 
Author-X-Name-Last: Henri 
Title: The Periodic Review of Performance Indicators: An Empirical Investigation of the Dynamism of Performance Measurement Systems 
Abstract:
  The aim of this study is to examine one attribute of performance
 measurement systems (PMS) that is not widely addressed in the management
 accounting literature, namely the dynamism of PMS. This attribute refers
 to the periodic review of performance indicators by organizations. Based
 on contingency theory and using survey data from a sample of manufacturing
 firms, this study examines whether the association between the dynamism of
 PMS and organizational performance is contingent on the level of external
 and internal changes. The results suggest three main conclusions. First,
 even though the current business environment is characterized by fast
 changes, manufacturing organizations do not appear to revise their PMS to
 a great extent. Second, while periodic revisions of performance indicators
 are beneficial, these revisions may not necessarily be appropriate at all
 times and in all circumstances as the need for dynamic PMS varies
 depending on the degree of external and internal change. Third, an absence
 of dynamic PMS may be more harmful in a context of higher levels of change
 than to have dynamic PMS even if they are not required. 
Journal: European Accounting Review 
Pages: 73-96 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180902863795 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902863795 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:73-96




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Riise Johansen 
Author-X-Name-First: Thomas Riise 
Author-X-Name-Last: Johansen 
Title: Employees, Non-financial Reports and Institutional Arrangements: A Study of Accounts in the Workplace 
Abstract:
  Non-financial reports, such as sustainability, social responsibility and
 ethical reports, claim to make organizations accountable to a range of
 stakeholders. Yet, it has been argued that such reports are of limited
 value in the absence of structures that enable stakeholder response to the
 information provided and accordingly influence decision-making. The aim of
 this paper is to assess the materiality of non-financial reports to
 employees in the light of enterprise-level arrangements where employees
 potentially impact decision-making. The paper draws on interviews with
 Danish employee representatives and archival material in organizations
 that claim to be accountable to a range of stakeholders, including
 employees, through the preparation of non-financial reports. Denmark is an
 interesting empirical setting for this study as arrangements such as
 European works councils, employee board representatives, works councils
 and shop stewards are widespread and regulated. This paper suggests that,
 from the perspective of employees, formal reports represent a limited
 contribution to accountability and that institutional arrangements in the
 workplace appear more important for this stakeholder group. The paper
 illustrates that these arrangements are significant vehicles for employees
 to demand, receive and develop accounts of organizational affairs and that
 non-financial reports seem insignificant as a basis for pursuing impact on
 management decision-making. 
Journal: European Accounting Review 
Pages: 97-130 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180902989392 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902989392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:97-130




Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Cano-Rodriguez 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Cano-Rodriguez 
Title: Big Auditors, Private Firms and Accounting Conservatism: Spanish Evidence 
Abstract:
  This paper analyses the relationship between Big Auditors and the
 conditional and unconditional forms of conservatism. Drawing on a sample
 of Spanish firms, the current study suggests that despite small incentives
 for maintaining independence, Big Auditors promote conditional
 conservatism, thereby increasing the contracting efficiency of their
 clients' accounting information. The results also indicate, however, that
 for high levels of litigation and reputation risk, Big Auditors tend to
 promote unconditional conservatism, which can reduce the quality of
 financial reports. On this basis, I conclude that in the absence of
 essential litigation and reputation risk, Big Auditors typically provide
 higher quality audits than non-Big Auditors do. This differentiation may
 become subtler with litigation and reputation risk, however, because Big
 Auditors become overly conservative. 
Journal: European Accounting Review 
Pages: 131-159 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180902989426 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902989426 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:131-159




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Raffournier 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Raffournier 
Author-Name: Alain Schatt 
Author-X-Name-First: Alain 
Author-X-Name-Last: Schatt 
Title: Is European Accounting Research Fairly Reflected in Academic Journals? An Investigation of Possible Non-mainstream and Language Barrier Biases 
Abstract:
  Recent research has revealed that most articles published in top US
 accounting journals come from institutions based in the USA or a small
 number of other English-speaking countries (Jones and Roberts, Journal of
 Business Finance and Accounting, 32(5/6), pp. 1107-1140, 2005). It has
 also been shown that the research paradigm favoured by US journals is
 financial economics, with the result that articles on accounting history
 or social and behavioural accounting are very scarce. European journals
 exhibit a more diverse content. Nevertheless, as shown by some studies,
 British authors are the main contributors to these journals. As a
 consequence, the assertion has been made that the published literature is
 not perfectly representative of the diversity of European accounting
 research. The aim of this study is to test the validity of this assertion
 by comparing the content of 18 major academic journals in accounting over
 five years (2000-2004) with the set of papers presented at the EAA
 congress in 2003, 2004 and 2005. The results give some support to the
 assertion that the diversity of European accounting research is
 imperfectly reflected in academic journals. They also are consistent with
 the idea that non-English-speaking scholars are at a competitive
 disadvantage in the race for publication in recognised periodicals. 
Journal: European Accounting Review 
Pages: 161-190 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180902989368 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180902989368 
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:161-190




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Messner 
Author-X-Name-First: Martin 
Author-X-Name-Last: Messner 
Title: Contemporary Issues in Accounting 
Abstract:
Journal: European Accounting Review 
Pages: 191-192 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638181003714622 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003714622 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:191-192




Template-Type: ReDIF-Article 1.0
Author-Name: Josep Bisbe 
Author-X-Name-First: Josep 
Author-X-Name-Last: Bisbe 
Title: Business Planning and Control: Integrating Accounting, Strategy and People 
Abstract:
Journal: European Accounting Review 
Pages: 193-197 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638181003714655 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003714655 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:193-197




Template-Type: ReDIF-Article 1.0
Author-Name: Mara Cameran 
Author-X-Name-First: Mara 
Author-X-Name-Last: Cameran 
Title: A history of auditing: The changing audit process in Britain from the nineteenth century to the present day 
Abstract:
Journal: European Accounting Review 
Pages: 197-199 
Issue: 1 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638181003714663 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003714663 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:1:p:197-199




Template-Type: ReDIF-Article 1.0
Author-Name: Heidi Sundin 
Author-X-Name-First: Heidi 
Author-X-Name-Last: Sundin 
Author-Name: Markus Granlund 
Author-X-Name-First: Markus 
Author-X-Name-Last: Granlund 
Author-Name: David Brown 
Author-X-Name-First: David 
Author-X-Name-Last: Brown 
Title: Balancing Multiple Competing Objectives with a Balanced Scorecard 
Abstract:
  This paper investigates how multiple and competing objectives are managed
 within an organisation, and the role that the Balanced Scorecard (BSC)
 plays in balancing organisational objectives. The issue of achieving
 multiple objectives, those which represent the interests of various
 stakeholders, has come to the forefront of the corporate agenda, as
 companies are seen increasingly as more than a source of profit for
 shareholders, but rather as 'citizens' playing a broader role in society.
 This study adopts an exploratory case study approach to understand how the
 BSC is used in management decision and control processes to assist with
 the balancing of objectives. The case organisation is a state-owned
 electricity company, and provides a unique setting where multiple and
 equally important strategic objectives exist. The results demonstrate that
 the BSC has the potential to help in making trade-offs and balancing
 objectives, but there are certain requirements for this to succeed. The
 paper provides insights into issues of balanced strategic management, as
 it discusses 'balance' in terms of both process and outcomes. 
Journal: European Accounting Review 
Pages: 203-246 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903118736 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903118736 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:203-246




Template-Type: ReDIF-Article 1.0
Author-Name: Matias Laine 
Author-X-Name-First: Matias 
Author-X-Name-Last: Laine 
Title: Towards Sustaining the Status Quo: Business Talk of Sustainability in Finnish Corporate Disclosures 1987-2005 
Abstract:
  The paper seeks to shed more light on how businesses have used the
 language of sustainability in their disclosures. The study employs
 interpretive textual analysis and takes a closer look at how the corporate
 talk of sustainability has developed in the disclosures of three major
 Finnish companies during the period 1987-2005. In-depth understanding is
 sought by limiting the analysis of disclosures from four anchor points
 only. The findings indicate major changes in the ways the case
 corporations have used sustainability-related concepts over the two
 decades. Over time sustainability seems to have transformed from a
 possibly revolutionary concept into an evolutionary one, if not to one
 merely concerned with sustaining of the status quo. Moreover, whereas in
 the early disclosures the conceptualisation of sustainability appears to
 be rather polyphonic, in more recent years the companies use fairly
 similar rhetoric drawing on the discourse of weak sustainability. As a
 longitudinal study the paper makes a contribution to the still relatively
 limited body of research deconstructing corporate social and environmental
 disclosures from an interpretive standpoint. However, the study focuses
 only on the disclosures of three case companies in one particular country,
 and thus the generalisation of the findings must be approached with
 caution. 
Journal: European Accounting Review 
Pages: 247-274 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903136258 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903136258 
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:247-274




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Hartmann 
Author-X-Name-First: Frank 
Author-X-Name-Last: Hartmann 
Author-Name: David Naranjo-Gil 
Author-X-Name-First: David 
Author-X-Name-Last: Naranjo-Gil 
Author-Name: Paolo Perego 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Perego 
Title: The Effects of Leadership Styles and Use of Performance Measures on Managerial Work-Related Attitudes 
Abstract:
  In this paper we investigate the effects of superiors' performance
 evaluation behaviors on subordinates' work-related attitudes. In response
 to critique on the multidimensional nature of the 'supervisory style'
 construct in the RAPM literature, we argue that the two dominant
 dimensions underlying this construct are leadership style and performance
 measure use. We develop and test a path model that allows us to
 disentangle the effects of leadership style (initiating structure and
 consideration) and performance measure use (objective and subjective
 measures) on managerial work-related attitudes (goal clarity and
 evaluation fairness). We test our hypotheses using survey data from 196
 middle-level managers in 11 organizations. Results show that an initiating
 structure leadership style affects subordinates' work-related attitudes
 through the use of objective performance measures. Consideration
 leadership behavior instead only has a direct impact on work-related
 attitudes. These findings have important implications for management
 accounting research on superiors' use of performance measures, and provide
 an explanation of some of the problematic findings in the literature. 
Journal: European Accounting Review 
Pages: 275-310 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903384601 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903384601 
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:275-310




Template-Type: ReDIF-Article 1.0
Author-Name: Deborah Schanz 
Author-X-Name-First: Deborah 
Author-X-Name-Last: Schanz 
Author-Name: Sebastian Schanz 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Schanz 
Title: Finding a New Corporate Tax Base after the Abolishment of the One-Book System in EU Member States 
Abstract:
  Due to the implementation of international financial reporting standards
 in the European Union, member states with uniform accounting are expected
 to replace their current one-book system with a two-book system, which
 will separate tax accounting and financial accounting. This separation
 presents the challenge of defining a new tax base. Since a tax base is not
 required to provide information that helps users in economic decision
 making, tax accounting can be simplified compared to financial accounting.
 This paper discusses possible future tax bases of German companies. We
 develop a business model simulation based on empirical data to quantify
 the change in the tax burden of different industries induced by
 alternative tax accounting regulations. We identify a simplified tax base
 that avoids major shifts in the tax burden. Thus, the paper provides
 useful information for economists and politicians who make decisions about
 the new German tax accounting regulations. Moreover, this tax base and the
 identified drivers of sector-specific tax payments form an important basis
 for the discussion in other EU member states that face a comparable
 phase-out of one-book accounting. 
Journal: European Accounting Review 
Pages: 311-341 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903384627 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903384627 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:311-341




Template-Type: ReDIF-Article 1.0
Author-Name: Annita Florou 
Author-X-Name-First: Annita 
Author-X-Name-Last: Florou 
Title: The Role of Taxes in Compensation: A Case of Shareholder Expropriation 
Abstract:
  In this paper I exploit a unique feature of the Greek institutional
 environment, whereby alternative cash compensation payments to directors
 are taxed differently from the point of view of both personal and
 corporate taxes. Board directors can receive cash compensation either in
 the form of taxable salary or in the form of tax-free profit
 distributions. Salary payments are deductible for corporate tax purposes
 whereas profit distributions are not, making a unit of profit distribution
 more costly to shareholders than a unit of salary. Ceteris paribus,
 rational directors prefer profit distribution to salary given that in the
 former case their personal taxes are paid by shareholders. Using this
 setting I document that board directors increase their net compensation by
 shifting their personal taxes to outside shareholders, who consequently
 earn lower after-tax income. Moreover, I show that profit distributions
 reduce shareholder value. Collectively, my findings are consistent with
 board compensation via profit distributions indicating shareholder
 expropriation. I also find that the degree of tax-shifting reduces as
 board ownership increases. This is particularly the case for family board
 members. Overall, the study's results have implications for both
 researchers and financial reporting regulators considering compensation
 issues. 
Journal: European Accounting Review 
Pages: 343-374 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903384700 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903384700 
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:343-374




Template-Type: ReDIF-Article 1.0
Author-Name: Deryl Northcott 
Author-X-Name-First: Deryl 
Author-X-Name-Last: Northcott 
Title: Shadowing and Other Techniques for Doing Fieldwork in Modern Societies 
Abstract:
Journal: European Accounting Review 
Pages: 375-378 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.486123 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.486123 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:375-378




Template-Type: ReDIF-Article 1.0
Author-Name: Ken McPhail 
Author-X-Name-First: Ken 
Author-X-Name-Last: McPhail 
Title: Management ethics, contemporary context 
Abstract:
Journal: European Accounting Review 
Pages: 378-385 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.486131 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.486131 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:378-385




Template-Type: ReDIF-Article 1.0
Author-Name: Ileana Steccolini 
Author-X-Name-First: Ileana 
Author-X-Name-Last: Steccolini 
Title: Financial management for local government 
Abstract:
Journal: European Accounting Review 
Pages: 385-389 
Issue: 2 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.486148 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.486148 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:2:p:385-389




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Author-Name: Kari Lukka 
Author-X-Name-First: Kari 
Author-X-Name-Last: Lukka 
Title: Anthony G. Hopwood, 1944-2010 
Abstract:
Journal: European Accounting Review 
Pages: 395-398 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.506281 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.506281 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:395-398




Template-Type: ReDIF-Article 1.0
Author-Name: Mary Barth 
Author-X-Name-First: Mary 
Author-X-Name-Last: Barth 
Author-Name: Wayne Landsman 
Author-X-Name-First: Wayne 
Author-X-Name-Last: Landsman 
Title: How did Financial Reporting Contribute to the Financial Crisis? 
Abstract:
  We scrutinize the role financial reporting for fair values, asset
 securitizations, derivatives and loan loss provisioning played in the
 Financial Crisis. Because banks were at the center of the Financial
 Crisis, we focus our discussion and analysis on the effects of financial
 reporting by banks. We conclude fair value accounting played little or no
 role in the Financial Crisis. However, transparency of information
 associated with asset securitizations and derivatives likely was
 insufficient for investors to assess properly the values and riskiness of
 bank assets and liabilities. Although the FASB and IASB have taken
 laudable steps to improve disclosures relating to asset securitizations,
 in our view, the approach for accounting for securitizations in the IASB's
 Exposure Draft that would require banks to recognize whatever assets and
 liabilities they have after the securitization is executed better reflects
 the underlying economics of the securitization transaction. Regarding
 derivatives, we recommend disclosure of more disaggregated information,
 disclosure of the sensitivity of derivatives' fair values to changes in
 market risk variables, and implementing a risk-equivalence approach to
 enable investors to understand better the leverage inherent in
 derivatives. We also conclude that because the objectives of bank
 regulation and financial reporting differ, changes in financial reporting
 needed to improve transparency of information provided to the capital
 markets likely will not be identical to changes in bank regulations needed
 to strengthen the stability of the banking sector. We discuss how loan
 loss provisioning may have contributed to the Financial Crisis through its
 effects on procyclicality and on the effectiveness of market discipline.
 Accounting standard setters and bank regulators should find some common
 ground. However, it is the responsibility of bank regulators, not
 accounting standard setters, to ensure the stability of the financial
 system. 
Journal: European Accounting Review 
Pages: 399-423 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.498619 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.498619 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:399-423




Template-Type: ReDIF-Article 1.0
Author-Name: Katherine Schipper 
Author-X-Name-First: Katherine 
Author-X-Name-Last: Schipper 
Author-Name: Marco Trombetta 
Author-X-Name-First: Marco 
Author-X-Name-Last: Trombetta 
Title: Measurement Issues in Financial Reporting 
Abstract:
Journal: European Accounting Review 
Pages: 425-428 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.506282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.506282 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:425-428




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Ciftci 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Ciftci 
Title: Accounting Choice and Earnings Quality: The Case of Software Development 
Abstract:
  In this study I explore how accounting choice affects earnings quality in
 the software development industry. SFAS No. 86, which requires
 capitalization of software development costs (SDC), is the only exception
 in the US to SFAS No. 2, which requires immediate expensing of all
 research and development (R&D) expenditures. Aboody and Lev (1998) suggest
 that capitalized SDC are value-relevant. Thus, expensing of these costs
 might introduce noise into earnings. However, it has been suggested that
 future benefits associated with SDC are highly uncertain (Software
 Publishers Association). Consequently, capitalization might introduce
 noise into earnings by capitalizing unproductive expenditures. Hence, it
 is not clear how managers' choice between capitalization and expensing
 will affect earnings quality. I first find that there is a decline in the
 quality of earnings in the software industry after the adoption of SFAS
 No. 86, whereas no such decline is observed in other high-tech industries.
 Second, I find that, within the software industry, the quality of earnings
 for expensers is greater than for capitalizers. Finally, I find that,
 among the capitalizers, those with a large increase in software capital
 have lower earnings quality than others. Overall, the results suggest that
 capitalization of software costs does not improve earnings quality. 
Journal: European Accounting Review 
Pages: 429-459 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.496551 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.496551 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:429-459




Template-Type: ReDIF-Article 1.0
Author-Name: A. Quagli 
Author-X-Name-First: A. 
Author-X-Name-Last: Quagli 
Author-Name: F. Avallone 
Author-X-Name-First: F. 
Author-X-Name-Last: Avallone 
Title: Fair Value or Cost Model? Drivers of Choice for IAS 40 in the Real Estate Industry 
Abstract:
  The IFRS mandatory adoption in European countries is an excellent context
 from which to assess the validity of accounting choice theory, which
 postulates that information asymmetry, contractual efficiency (agency
 costs) and managerial opportunism reasons could drive the choice. With
 this aim, we test the impact of these factors to explain the adoption of
 fair value for investment properties (IAS 40) in the real estate industry,
 taking into account the 'revaluation' option offered by IFRS1 and using
 historical cost without revaluations as a baseline category for comparison
 purposes. We select a sample of European real estate companies from
 Finland, France, Germany, Greece, Italy, Spain and Sweden, all first-time
 adopters of the IFRS. Using a multinomial logistic model, we show that
 information asymmetry, contractual efficiency and managerial opportunism
 could account for the fair value choice. Particularly, the most
 significant findings are that size as a proxy of political costs reduces
 the likelihood of using fair value while market-to-book ratio is
 negatively associated with the fair value choice. On the other hand,
 leverage, another typical proxy of contracting costs, seems not to
 influence the choice. This evidence confirms the current validity of
 traditional accounting choice theory even if it reveals, in such a
 context, the irrelevance of the usual relations between accounting choice
 and leverage. 
Journal: European Accounting Review 
Pages: 461-493 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.496547 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.496547 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:461-493




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Gassen 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Gassen 
Author-Name: Kristina Schwedler 
Author-X-Name-First: Kristina 
Author-X-Name-Last: Schwedler 
Title: The Decision Usefulness of Financial Accounting Measurement Concepts: Evidence from an Online Survey of Professional Investors and their Advisors 
Abstract:
  In their current framework project, the IASB and the FASB identify
 decision usefulness as the objective of financial reporting.
 Unfortunately, accounting research has neither yet come up with an
 undisputed measure of decision usefulness, nor with a satisfying method to
 rank competing measurement concepts, such as fair value or historical
 cost, with regard to their relative decision usefulness. Thus, assessing
 the decision usefulness of different accounting measurement concepts
 ultimately poses an empirical question. We provide evidence to this
 question by surveying an important user group, namely professional
 investors and their advisors, about their opinions on the decision
 usefulness of different accounting measurement concepts. We find that our
 respondents clearly differentiate between mark-to-market and mark-to-model
 fair values. While they consistently rank mark-to-market fair values as
 most decision-useful, they generally rank mark-to-model fair values as
 least decision-useful. In addition, the ranking differs across asset
 classes. 
Journal: European Accounting Review 
Pages: 495-509 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.496548 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.496548 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:495-509




Template-Type: ReDIF-Article 1.0
Author-Name: Christina Dargenidou 
Author-X-Name-First: Christina 
Author-X-Name-Last: Dargenidou 
Author-Name: Stuart McLeay 
Author-X-Name-First: Stuart 
Author-X-Name-Last: McLeay 
Title: The Impact of Introducing Estimates of the Future on International Comparability in Earnings Expectations 
Abstract:
  The objective of this paper is to assess whether the inclusion of
 improved estimates of the future in corporate annual financial statements
 has brought about greater international comparability. It is argued that
 including more relevant information in financial reporting enables users
 to estimate earnings that are more able to reflect current economic
 conditions and up-to-date expectations of the future and thus recognize
 news in a more timely manner. To reflect the underlying economics of
 integrating financial markets, earnings expectations must be not only more
 timely but also more comparable. Thus, in examining the increasingly
 widespread adoption of International Financial Reporting Standards (IFRS),
 this study considers both the timeliness and the comparability of earnings
 expectations in the European Union, before and after the mandatory IFRS
 implementation. The empirical findings support the view that users'
 earnings estimates have indeed become more timely in recognizing market
 news and significantly more comparable. 
Journal: European Accounting Review 
Pages: 511-534 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.496550 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.496550 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:511-534




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Aharony 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Aharony 
Author-Name: Ran Barniv 
Author-X-Name-First: Ran 
Author-X-Name-Last: Barniv 
Author-Name: Haim Falk 
Author-X-Name-First: Haim 
Author-X-Name-Last: Falk 
Title: The Impact of Mandatory IFRS Adoption on Equity Valuation of Accounting Numbers for Security Investors in the EU 
Abstract:
  Motivated by the European Union (EU) decision to mandate application of
 the International Financial Reporting Standards (IFRS) to the consolidated
 financial statements of all EU listed firms (Regulation (EC) 1606/2002),
 starting in December 2005, we compare the value relevance of accounting
 information in 14 European countries in the year prior to and the year of
 the mandatory adoption of the IFRS. We focus on three accounting
 information items for which measurements under IFRS are likely to differ
 considerably from measurements under domestic accounting practices across
 the EU countries prior to the introduction of the international standards:
 goodwill, research and development expenses (R&D), and asset revaluation.
 These three items, selected on an a priori basis, have been shown in
 previous research to differ in the effect of uncertainty on their future
 benefits. We use valuation models that include these three variables and
 in addition the book value of equity and earnings. Overall, our study
 suggests that the adoption of the IFRS has increased the value relevance
 of the three accounting numbers for investors in equity securities in the
 EU. Association tests support our two hypotheses: (1) in the year prior to
 the mandatory adoption of the IFRS, the incremental value relevance to
 investors of the three domestic GAAP-based accounting items was greater in
 countries where the respective domestic standards were more compatible
 with the IFRS; and (2) the higher the deviation of the three domestic
 GAAP-based accounting items from their corresponding IFRS values, the
 greater the incremental value relevance to investors from the switch to
 IFRS. These associations prevail when considering cross-country
 differences in the institutional environments, which tend to provide
 complementary effects. 
Journal: European Accounting Review 
Pages: 535-578 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.506285 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.506285 
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Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gox 
Author-X-Name-First: Robert 
Author-X-Name-Last: Gox 
Author-Name: Alfred Wagenhofer 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Wagenhofer 
Title: Optimal Precision of Accounting Information in Debt Financing 
Abstract:
  This paper studies qualitative characteristics of accounting systems that
 are used in debt financing. We consider a financially constrained firm
 that provides to lenders information on the value of assets that serve as
 collateral in a financing contract for a risky investment project. We find
 that the investor prefers an accounting system that provides biased
 signals about the value of assets. This bias adjusts the information
 content of the signals to maximize the probability of undertaking the
 project. Under fair value accounting, low book values are more precise
 measures of actual value than high book values, which is consistent with
 conditional conservatism. Next, we study accounting risk to study the
 effect of institutions that govern the financial reporting policy based on
 the optimal precision. We find that fair value measurement introduces
 greater accounting risk and is preferred by financially constrained firms
 to measurement at historical cost. 
Journal: European Accounting Review 
Pages: 579-602 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.496546 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.496546 
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Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:579-602




Template-Type: ReDIF-Article 1.0
Author-Name: Emma Garcia-Meca 
Author-X-Name-First: Emma 
Author-X-Name-Last: Garcia-Meca 
Author-Name: Juan Sanchez-Ballesta 
Author-X-Name-First: Juan 
Author-X-Name-Last: Sanchez-Ballesta 
Title: The Association of Board Independence and Ownership Concentration with Voluntary Disclosure: A Meta-analysis 
Abstract:
  In this paper we apply meta-analysis to a sample of 27 empirical studies
 to clarify the association of board independence and ownership
 concentration with voluntary disclosure. We examine whether variations in
 results are attributable to the differences in the corporate governance
 system, the investor protection rights and the measurement of the
 governance variables. The findings show that the positive association
 between board independence and voluntary disclosure only occurs in those
 countries with high investor protection rights. The findings emphasize the
 need to consider the legal and institutional setting explicitly when
 analysing the effect of corporate governance on voluntary disclosure. 
Journal: European Accounting Review 
Pages: 603-627 
Issue: 3 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.496979 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.496979 
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Template-Type: ReDIF-Article 1.0
Author-Name: Eli Amir 
Author-X-Name-First: Eli 
Author-X-Name-Last: Amir 
Author-Name: Yanling Guan 
Author-X-Name-First: Yanling 
Author-X-Name-Last: Guan 
Author-Name: Gilad Livne 
Author-X-Name-First: Gilad 
Author-X-Name-Last: Livne 
Title: Auditor Independence and the Cost of Capital Before and After Sarbanes-Oxley: The Case of Newly Issued Public Debt 
Abstract:
  An important aim of the Sarbanes-Oxley Act (SOX) was to reduce the cost
 of capital by enhancing auditor independence. However, prior literature
 has argued that SOX has been ineffective in meeting this objective. We
 contribute to this debate by first providing evidence suggesting that
 auditor independence has increased following SOX. Though we posit an
 inverse relationship between auditor independence and cost of capital, it
 is an open question whether this relationship has become stronger or
 weaker following SOX. An examination of this relationship reveals that
 auditor independence is more strongly related to bond rating and bond
 yield premium in the post-SOX period relative to the period before SOX.
 This evidence suggests greater price sensitivity of corporate debt to the
 level of auditor independence following SOX. We also show that controlling
 for the effect of auditor independence and other factors, cost of debt
 decreased following SOX. 
Journal: European Accounting Review 
Pages: 633-664 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903503986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903503986 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jean Jinghan Chen 
Author-X-Name-First: Jean Jinghan 
Author-X-Name-Last: Chen 
Author-Name: Haitao Zhang 
Author-X-Name-First: Haitao 
Author-X-Name-Last: Zhang 
Title: The Impact of Regulatory Enforcement and Audit upon IFRS Compliance - Evidence from China 
Abstract:
  This study contributes to the accounting literature by providing
 empirical evidence from China that adopting IFRS does not necessarily lead
 to IFRS-type accounting practices. We examine the impact of regulatory
 enforcement, in particular, an important Chinese government compulsory
 compliance policy implemented in 2001, and audit upon the convergence of
 Chinese accounting practices. Using a sample of 103 Chinese B-share
 companies between 1999 and 2004, we reveal that the decline in earnings
 difference between firms' financial statements under Chinese GAAP and IFRS
 is the result of the implementation of the 2001 policy and the audit
 committee which effectively control the firm's application of standards
 rather than the differences between the standards. The effect of audit
 committee leads us further to argue that the convergence of accounting
 practices may be affected by not only the lack of insufficient
 understanding of IFRS by local accounting professionals, but also the
 management opportunistic behaviour during the application of different
 standards. It implies that corporate governance may affect the convergence
 of accounting practice. However, we do not find evidence for international
 audit firms outperforming their Chinese local CPAs with regard to IFRS
 compliance. Therefore, the Chinese government should be cautious in
 promoting the participation of international audit firms in China for
 achieving IFRS compliance. 
Journal: European Accounting Review 
Pages: 665-692 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903384684 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903384684 
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Handle: RePEc:taf:euract:v:19:y:2010:i:4:p:665-692




Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Gaio 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Gaio 
Title: The Relative Importance of Firm and Country Characteristics for Earnings Quality around the World 
Abstract:
  We examine the relative importance of firm, industry and country
 characteristics in explaining earnings quality in a wide sample of firms
 in 38 countries over 1990-2003. An aggregate earnings quality measure
 based on seven earnings attributes (accruals quality, persistence,
 predictability, smoothness, value relevance, timeliness and conservatism)
 indicates firm and industry characteristics today explain much more of the
 variation in earnings quality rankings than country characteristics. The
 main results hold for different levels of a country's economic development
 and investor protection. We also find that firm and industry
 characteristics became more important in the late 1990s as accounting and
 financial globalization accelerated. Thus, firm and industry
 characteristics have incremental explanatory power beyond cross-country
 variation in determining earnings quality worldwide. 
Journal: European Accounting Review 
Pages: 693-738 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903384643 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903384643 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:4:p:693-738




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Costa Lourenco 
Author-X-Name-First: Isabel Costa 
Author-X-Name-Last: Lourenco 
Author-Name: Jose Dias Curto 
Author-X-Name-First: Jose Dias 
Author-X-Name-Last: Curto 
Title: Determinants of the Accounting Choice between Alternative Reporting Methods for Interests in Jointly Controlled Entities 
Abstract:
  This paper examines whether the type of jointly controlled entity
 influences the management choice to report interests in this kind of joint
 venture using the equity method or proportionate consolidation. We address
 this gap in the accounting choice literature by exploiting the UK setting
 where, due to the transition to IFRS, firms had to change their reporting
 method for interests in jointly controlled entities from the gross equity
 method to a similar approach (equity method) or to proportionate
 consolidation. We support our analysis on the classification of jointly
 controlled entities proposed by Hennart (1988). We hypothesize that
 venturers are more likely to change their reporting method to
 proportionate consolidation when the majority of their jointly controlled
 entities are cases of Link instead of Scale cooperation. After controlling
 for several variables, our results are consistent with the predictions and
 thus suggest that the type of jointly controlled entity plays an important
 role in the management decision to report interests in jointly controlled
 entities using the equity method or proportionate consolidation. However,
 the results also provide empirical evidence supporting the importance of
 debt covenant costs and monitoring costs in the choice between alternative
 reporting methods. 
Journal: European Accounting Review 
Pages: 739-773 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638181003687844 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003687844 
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Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Forner 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Forner 
Author-Name: Sonia Sanabria 
Author-X-Name-First: Sonia 
Author-X-Name-Last: Sanabria 
Title: Post-Earnings Announcement Drift in Spain and Behavioural Finance Models 
Abstract:
  Our study examines whether behavioural theories can explain post-earnings
 announcement drift (i.e. earnings momentum) in the Spanish market. In
 particular, we test models proposed by Barberis et al. (Journal of
 Financial Economics, 49, pp. 307-343, 1998), Daniel et al. (Journal of
 Finance, 53(6), pp. 1839-1885, 1998) and Hong and Stein (Journal of
 Finance, 54(6), pp. 2143-2184, 1999). Each of these behavioural models
 draws on two premises - cognitive biases and limits to arbitrage - that we
 assume will vary with a given country's cultural and institutional
 features. Therefore, we must exercise caution when extrapolating the
 favourable results observed in the US market to markets outside of the
 USA. Our results provide little evidence in support of the hypothesis used
 to test whether these models can indeed explain the earnings momentum
 anomaly in the Spanish market. We believe some characteristics of the
 Spanish market, such as its lower score on the Individualism Index, lower
 levels of investor protection and code-law-based legal system, may explain
 why our results differ from those obtained in the USA. 
Journal: European Accounting Review 
Pages: 775-815 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903503978 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903503978 
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Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Schondube-Pirchegger 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Schondube-Pirchegger 
Author-Name: Jens Robert Schondube 
Author-X-Name-First: Jens Robert 
Author-X-Name-Last: Schondube 
Title: On the Appropriateness of Performance-Based Compensation for Supervisory Board Members - An Agency Theoretic Approach 
Abstract:
  Central European countries such as Austria, Germany and the Netherlands
 require public firms to set up two separate boards: a management board
 (MB) that manages the firm and a supervisory board (SB) that controls the
 management. As part of the recent debate on corporate governance, the
 expansion of performance-based compensation to include members of the SB
 has been heavily discussed. In this paper we use a two-stage
 principal-agent model to investigate incentive effects arising from such
 contracting. The SB is responsible for contracting with the MB and for
 monitoring it. We allow for two types of performance measures to be
 available, a possibly biased financial report provided by the MB and the
 market price of the firm. We obtain the following results: both
 performance measures are beneficial and equally suitable for contracting
 with the MB. In contrast, the MB's report is never part of the optimal SB
 contract. Using the market price as a performance measure for the SB in
 some settings turns out to be beneficial as compared to a purely fixed
 compensation but not in others. 
Journal: European Accounting Review 
Pages: 817-835 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180903487784 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903487784 
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Template-Type: ReDIF-Article 1.0
Author-Name: Geert Van Campenhout 
Author-X-Name-First: Geert 
Author-X-Name-Last: Van Campenhout 
Author-Name: Tom Van Caneghem 
Author-X-Name-First: Tom 
Author-X-Name-Last: Van Caneghem 
Title: Article Contribution and Subsequent Citation Rates: Evidence from European Accounting Review 
Abstract:
  Recent investigations suggest that research assessments are mainly based
 on publication counts and journal level and, hence, fail at capturing the
 multifaceted nature of research performance. Instead, some commentators
 indicate that focus on the article's contribution would stimulate a more
 polycentric approach to research. In the current study we investigate the
 role of an article's contribution on its citations. In doing this, we
 gather data from European Accounting Review, an outlet that plays an
 instrumental role in the dissemination of Europe-based accounting research
 and that holds a long tradition of tolerance towards the use of diverse
 research methods and paradigms. We employ proxies to evaluate the
 objective contribution of an article as well as author reputation. Our
 findings suggest that articles are cited for their contribution rather
 than as a result of the characteristics of their authors. Our study also
 poses some suggestions to capture the multifaceted nature of research
 performance. 
Journal: European Accounting Review 
Pages: 837-855 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638181003687893 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003687893 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Zambon 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Zambon 
Author-Name: Sven Modell 
Author-X-Name-First: Sven 
Author-X-Name-Last: Modell 
Title: Intellectual Capital Reporting: Lessons from Hong Kong and Australia 
Abstract:
Journal: European Accounting Review 
Pages: 857-860 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.524375 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.524375 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:4:p:857-860




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Merchant 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Merchant 
Author-Name: Stefano Zambon 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Zambon 
Title: Malea Fashion District: A New Way to Learn Managerial Accounting 
Abstract:
Journal: European Accounting Review 
Pages: 860-862 
Issue: 4 
Volume: 19 
Year: 2010 
X-DOI: 10.1080/09638180.2010.524380 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.524380 
File-Format: text/html
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Handle: RePEc:taf:euract:v:19:y:2010:i:4:p:860-862




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Carmona 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Carmona 
Title: In Pursuance of Successful Research 
Abstract:
Journal: European Accounting Review 
Pages: 1-5 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.568092 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.568092 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: James Ohlson 
Author-X-Name-First: James 
Author-X-Name-Last: Ohlson 
Title: On Successful Research 
Abstract:
  This paper discusses what I believe a researcher ought to keep in mind
 when he/she tries to find a research topic and assesses the probability of
 success. In this context I think of success as a paper that becomes known
 over time and, generally, extensively cited. My discussion will lay out
 some useful 'pointers'. I will also try to provide something resembling a
 'proof in the pudding' by listing a number of specific research topics,
 each of which can be spelled out in a few sentences. My aim is to persuade
 the reader that research topics can rely on straightforward ideas as
 opposed to a specific set of antecedent papers. In this respect, I argue
 that the best research questions derive from an acute sense of how the
 world works as opposed to more or less stylized 'theories' originating in
 academia. 
Journal: European Accounting Review 
Pages: 7-26 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.559334 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.559334 
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Template-Type: ReDIF-Article 1.0
Author-Name: Wai Fong Chua 
Author-X-Name-First: Wai Fong 
Author-X-Name-Last: Chua 
Title: In Search of 'Successful' Accounting Research 
Abstract:
  This critical commentary on Ohlson's paper (in this issue) problematises
 the concept of 'successful' accounting research; highlighting its ex-post,
 variable nature as a socially manufactured object. Contrasting Ohlson's
 notion of a singular body of shared 'common knowledge' in accounting with
 the plurality of knowledges valued by different research communities, the
 commentary advocates a deliberate courting of heterogeneous research
 paradigms so as to stimulate insightful scholarship. The commentary also
 reflects on systemic trends underlying the growth of research measurement
 programmes, and points out that the quest for 'successful' research could
 perversely undermine the generation of memorable and innovative research.
 Finally, individual researchers are encouraged at each career stage to
 determine for themselves the intended results to which they aspire,
 conscious that there are multiple notions of 'successful' research and
 therefore multiple routes to success. 
Journal: European Accounting Review 
Pages: 27-39 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.559033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.559033 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: John Christensen 
Author-X-Name-First: John 
Author-X-Name-Last: Christensen 
Title: Good Analytical Research 
Abstract:
  The purpose of this commentary is to address the issues raised by Ohlson
 from the point of view of analytical accounting research. The aim is not
 only to provide some input to young researchers who are going to publish
 good research using analytical methods, but also to give some hints to
 help users of analytical accounting research to understand and interpret
 the findings of this type of research. Ohlson has taken on a task of
 identifying a set of critical factors which are likely to lead to
 successful research. Good research is defined as research that makes an
 impression. Thus, it is not enough to get the research published - not
 even in a premier journal. The research should have an impact, the
 community should learn something. As Ohlson notes, there is enough
 'ordinary' research. In my view this is the right attitude. Short-term
 optimization is also widespread in the research community and that is not
 what we should strive for. With the objective in place, I will continue to
 analyze the question in relation to analytical research. I start out
 discussing the aim of analytical research by providing a few examples of
 good models. The first is the Feltham-Ohlson model and the second is the
 agency model. Both are simple and elegant models dealing with difficult
 issues. The analysis proceeds to characterize good models. A good model is
 a simple model that zooms in on the problem under scrutiny. It is a
 'minimal' model that contains the problem and nothing outside the problem.
 I then proceed to characterize good research in an analytical framework.
 This is research that tackles a problem that is of interest to the users
 and the researcher. In this process I also identify current notable
 analytical research. Finally, I contrast this to the recommendations of
 Ohlson. 
Journal: European Accounting Review 
Pages: 41-51 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.559030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.559030 
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Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Czarniawska 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Czarniawska 
Title: Successful Research: In Whose Eyes? 
Abstract:
Journal: European Accounting Review 
Pages: 53-55 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.558304 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.558304 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:53-55




Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Bona-Sanchez 
Author-X-Name-First: Carolina 
Author-X-Name-Last: Bona-Sanchez 
Author-Name: Jeronimo Perez-Aleman 
Author-X-Name-First: Jeronimo 
Author-X-Name-Last: Perez-Aleman 
Author-Name: Domingo Javier Santana-Martin 
Author-X-Name-First: Domingo Javier 
Author-X-Name-Last: Santana-Martin 
Title: Ultimate Ownership and Earnings Conservatism 
Abstract:
  In this paper we analyze whether the extent of timely recognition of
 unrealized losses into earnings shown by firms with a controlling owner
 depends on (1) the ownership share of the controlling owner and (2) the
 divergence between the controlling owner's voting and cash flow rights.
 Our results document a negative relation between both aspects of the
 ultimate ownership structure and timely loss recognition. Our results are
 consistent with two possible explanations. First, as the controlling
 owner's stake in the company increases, a smaller portion of the firm's
 financing needs will be provided by minority shareholders. Minority
 shareholders do not have access to the company's private information, but
 demand timely recognition of losses into earnings to protect their claim.
 Reducing the role of minority shareholders implies also lower demand for
 timely loss recognition. Second, the results are consistent with an
 increase in the ownership stake of the controlling owner or in the
 divergence between the controlling owner's voting and cash flow rights
 leading to an increase in managerial incentives to share information with
 the controlling shareholder, reducing the demand for timely loss
 recognition for monitoring purposes. 
Journal: European Accounting Review 
Pages: 57-80 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180903384676 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903384676 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:57-80




Template-Type: ReDIF-Article 1.0
Author-Name: Beatriz Cuellar Fernandez 
Author-X-Name-First: Beatriz Cuellar 
Author-X-Name-Last: Fernandez 
Author-Name: Yolanda Fuertes Callen 
Author-X-Name-First: Yolanda Fuertes 
Author-X-Name-Last: Callen 
Author-Name: Jose Antonio Lainez Gadea 
Author-X-Name-First: Jose Antonio Lainez 
Author-X-Name-Last: Gadea 
Title: Stock Price Reaction to Non-financial News in European Technology Companies 
Abstract:
  In this paper we examine investors' valuation of non-financial corporate
 news items issued by European companies in the information and
 communications technology industry. We analyse the stock market reaction
 to the publication of press releases on a sample of 145 firms from 2003 to
 2005. Results indicate that investors react positively to information
 concerning a firm's capacity to consolidate its position, diversify and
 grow. Investors react negatively to information about new product launches
 and upgrades. We also find that investors in companies with a strong
 market position and growth prospects highly value information on takeovers
 and internationalisation. In contrast, investors in low-performing
 companies value news of disposals and distribution alliances. Our results
 enhance the general understanding of the relevance of non-financial
 information to investors, and contribute to the debate surrounding the
 usefulness of publishing non-financial information. 
Journal: European Accounting Review 
Pages: 81-111 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180903384650 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903384650 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:81-111




Template-Type: ReDIF-Article 1.0
Author-Name: Marcello Mariani 
Author-X-Name-First: Marcello 
Author-X-Name-Last: Mariani 
Author-Name: Luca Zan 
Author-X-Name-First: Luca 
Author-X-Name-Last: Zan 
Title: The Economy of Music Programs and Organizations. A Micro Analysis and Typology 
Abstract:
  The paper presents a model for understanding the inner economy of live
 music programs and organisations at a micro level, according to a
 management and accounting perspective. The complexity and variety of
 situations and solutions in organizing live music is described with
 reference to a number of real events. As a way of handling such a
 complexity and variety in organising, a typology is proposed based on
 three distinct features that can be found, to a different extent, inside
 music entities: the preparation of the Premiere; the running of
 performances after the Premiere; and the management of a portfolio of
 music programmes. The typology is a tool to understand possible
 implications on the economy of music programs arising from different
 solutions to the issue of organising and related cost behaviour. 
Journal: European Accounting Review 
Pages: 113-148 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638181003729356 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003729356 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:113-148




Template-Type: ReDIF-Article 1.0
Author-Name: Katarina &#xd8;stergren 
Author-X-Name-First: Katarina 
Author-X-Name-Last: &#xd8;stergren 
Author-Name: Inger Stensaker 
Author-X-Name-First: Inger 
Author-X-Name-Last: Stensaker 
Title: Management Control without Budgets: A Field Study of 'Beyond Budgeting' in Practice 
Abstract:
  Budgets have long been the dominant instrument for management control. In
 recent years however, alternative approaches to management control such as
 the Balanced Scorecard have been launched. It has even been suggested that
 organizations should drop the budget and move 'Beyond Budgeting' (Hope and
 Fraser, Strategic Finance, 82(4), pp. 30-35, 2000). New approaches to
 management control attempt to respond to the shortcomings of budgets, such
 as being time consuming and focused on cost reduction rather than value
 creation. While the Balanced Scorecard and Beyond Budgeting appear to be
 more closely connected to firm strategy, we know little about how such
 alternative management control systems function in practice and potential
 challenges of these new systems. This study is a first step in that
 direction. We examine 'Beyond Budgeting' in practice by focusing on how
 corporate level in a large multidivisional oil and energy company adopted
 this new approach to management control and how it was implemented in two
 business units. Specifically we investigate: (a) the rules of action that
 are developed in the absence of budgets; and (b) how the new management
 control system is expected to influence interaction patterns. Drawing on
 agency and resource dependency theory in our analysis, our findings
 indicate that the means of control that are exercised in the absence of
 budgets alter the relationship between corporate management and division
 management and new lines of dependency are created between divisions. 
Journal: European Accounting Review 
Pages: 149-181 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180903487842 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903487842 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:149-181




Template-Type: ReDIF-Article 1.0
Author-Name: Sven Modell 
Author-X-Name-First: Sven 
Author-X-Name-Last: Modell 
Title: Book review 
Abstract:
Journal: European Accounting Review 
Pages: 183-186 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2010.524372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.524372 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:183-186




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Zambon 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Zambon 
Title: Intellectual Capital Reporting: Lessons from Hong Kong and Australia 
Abstract:
Journal: European Accounting Review 
Pages: 186-189 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.566677 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.566677 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:186-189




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Merchant 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Merchant 
Title: Malea Fashion District: A New Way to Learn Managerial Accounting Antonio Davila and Daniel Oyon 
Abstract:
Journal: European Accounting Review 
Pages: 190-192 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.566678 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.566678 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:190-192




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Hoffjan 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Hoffjan 
Author-Name: Julia Kornacker 
Author-X-Name-First: Julia 
Author-X-Name-Last: Kornacker 
Title: Management Accounting Catherine Gowthorpe 
Abstract:
Journal: European Accounting Review 
Pages: 192-195 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.566681 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.566681 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:192-195




Template-Type: ReDIF-Article 1.0
Author-Name: Susan Newberry 
Author-X-Name-First: Susan 
Author-X-Name-Last: Newberry 
Title: Financial Black Holes: Accounting for Privately Financed Roads in the UK 
Abstract:
Journal: European Accounting Review 
Pages: 196-198 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.566679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.566679 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:196-198




Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Anderson-Gough 
Author-X-Name-First: Fiona 
Author-X-Name-Last: Anderson-Gough 
Title: When Professionals have to Lead: A New Model for High Performance 
Abstract:
Journal: European Accounting Review 
Pages: 198-202 
Issue: 1 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.566680 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.566680 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:1:p:198-202




Template-Type: ReDIF-Article 1.0
Author-Name: Michel Magnan 
Author-X-Name-First: Michel 
Author-X-Name-Last: Magnan 
Author-Name: Garen Markarian 
Author-X-Name-First: Garen 
Author-X-Name-Last: Markarian 
Title: Accounting, Governance and the Crisis: Is Risk the Missing Link? 
Abstract:
  The period 2007-2010 marked one of the most severe economic and financial
 crises in living memory. In this paper, we focus on two of accounting's
 key functions within organisations and markets, financial reporting and
 governance. In this respect, we find that accounting exhibited
 shortcomings in its structural foundation and in its application. Salient
 is its failure to account for uncertainty and to adequately capture,
 measure and disclose the impact of risk-taking on the financial
 statements, thus undermining their reliability and, potentially, their
 relevance as indicators of economic performance. Consequently, boards were
 provided with misleading numbers, and compensation was based on paper
 profits that did not materialise. As such, accounting carried undesirable
 elements that interacted with other malicious market characteristics such
 as excessive risk-taking by bankers, and failure in regulatory and market
 oversight, thus potentially contributing to deteriorating economic
 conditions. The paper concludes with suggestions for further research in
 this area. Guns don't kill people, but they sure help. (Exchange between
 Clive Owen and Paul Giamatti, Shoot 'Em Up, 2007) 
Journal: European Accounting Review 
Pages: 215-231 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.580943 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.580943 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:215-231




Template-Type: ReDIF-Article 1.0
Author-Name: Sylvain Durocher 
Author-X-Name-First: Sylvain 
Author-X-Name-Last: Durocher 
Author-Name: Yves Gendron 
Author-X-Name-First: Yves 
Author-X-Name-Last: Gendron 
Title: IFRS: On the Docility of Sophisticated Users in Preserving the Ideal of Comparability 
Abstract:
  This paper questions the ideal of comparability, which is often mobilized
 by standard setters when justifying new - or 'improvement' to existing -
 accounting standards. The target of our analysis is constituted by the
 thoughts of sophisticated users of financial statements when reflecting
 about International Financial Reporting Standards (IFRS) implementation in
 Europe. Drawing on the work of Mary Douglas on purity and Michel Foucault
 on docility, it is argued and shown that sophisticated users tend to
 interpret aberrations - that is to say indications of incomparability
 which confront users in the flow of their professional lives - in ways
 that allow the ideal of comparability to be preserved. Important
 consequences ensuing from the docility of users in purifying aberrations
 are discussed. 
Journal: European Accounting Review 
Pages: 233-262 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638181003687869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003687869 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:233-262




Template-Type: ReDIF-Article 1.0
Author-Name: Mattias Hamberg 
Author-X-Name-First: Mattias 
Author-X-Name-Last: Hamberg 
Author-Name: Mari Paananen 
Author-X-Name-First: Mari 
Author-X-Name-Last: Paananen 
Author-Name: Jiri Novak 
Author-X-Name-First: Jiri 
Author-X-Name-Last: Novak 
Title: The Adoption of IFRS 3: The Effects of Managerial Discretion and Stock Market Reactions 
Abstract:
  In recent years, several accounting standards, including IFRS 3, issued
 by the IASB, substitute historical cost with fair value measures and so
 provide managers with increased discretion to determine fair value without
 an actual market for the asset. Using Swedish data, we document the
 accounting consequences of the adoption of IFRS 3 and the stock market's
 reaction. After the adoption of this standard in January 2005 the amount
 of capitalized goodwill increased substantially. Goodwill impairments
 under IFRS are considerably lower than goodwill amortizations and
 impairments made under Swedish GAAP. Consequently, the adoption of IFRS 3
 increased reported earnings. An analysis of economic incentives
 influencing the impairment decision at the initial adoption of IFRS 3
 shows that tenured management is negatively associated with the impairment
 decision. However, most firms did not reclassify goodwill or make
 additional impairments. Firms with substantial amounts of goodwill yielded
 abnormally high returns despite abnormally low earnings. Investors seem
 to, correctly or incorrectly, have viewed the accrual-based increase in
 earnings stemming from IFRS 3 as an indication of higher future cash
 flows. 
Journal: European Accounting Review 
Pages: 263-288 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638181003687877 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638181003687877 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:263-288




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Hansen 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Hansen 
Title: A Theoretical Analysis of the Impact of Adopting Rolling Budgets, Activity-Based Budgeting and Beyond Budgeting 
Abstract:
  Budgeting accomplishes many goals in an organization and evaluating the
 potential impact of a change is difficult. I investigate the
 organization-wide effects of three distinct budgeting alternatives
 (rolling budgets, activity-based budgeting and beyond budgeting) using a
 model that incorporates three important budgeting functions: forecasting,
 operational planning and performance evaluation. From the perspective of
 the whole organization, each budgeting alternative improves profits. I
 then examine the department preferences for each alternative when each
 function is under the control of a different department and each
 department has its own, department-specific performance metric.
 Forecasting is judged on the variance of the base demand forecast,
 operational planning on the expected unit capacity costs and performance
 evaluation on the salesperson's expected action. In my model all
 departments always favor rolling forecasts, while only one department
 always favors beyond budgeting (or activity-based budgeting). For beyond
 budgeting and activity-based budgeting, the preferences of the two other
 departments vary depending upon the model parameters. 
Journal: European Accounting Review 
Pages: 289-319 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2010.496260 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.496260 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:289-319




Template-Type: ReDIF-Article 1.0
Author-Name: Kim Jeppesen 
Author-X-Name-First: Kim 
Author-X-Name-Last: Jeppesen 
Author-Name: Anne Loft 
Author-X-Name-First: Anne 
Author-X-Name-Last: Loft 
Title: Regulating Audit in Europe: The Case of the Implementation of the EU Eighth Directive in Denmark 1984-2006 
Abstract:
  This paper analyses the consequences, in Denmark between 1984 and 2006,
 of the implementation of the European EU Eighth Directive on the
 qualification of statutory auditors. Although the Eighth Directive
 envisaged one group of statutory auditors in each Member State, there were
 two groups of auditors in Denmark, and the implementation of the Directive
 triggered a long conflict between the two groups about the education of
 the second-tier auditors. The analysis is based on the work of Abbott
 ((1988)) on professional jurisdictional disputes and shows how the local
 implementation of the Eighth Directive on auditor qualifications disturbed
 the balance of the 'system of professions' in Denmark and gave rise to an
 intra-professional conflict over the statutory audit jurisdiction. The
 jurisdictional dispute dragged on for two decades because of the
 complexity of the Danish regulatory system, where audit regulation takes
 place in overlapping committees between the profession, the state and the
 educational institutions. It was finally settled by educational
 differentiation of the two groups, and we discuss the implications of this
 settlement for the process of audit harmonisation in Europe. 
Journal: European Accounting Review 
Pages: 321-354 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2010.493652 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.493652 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:321-354




Template-Type: ReDIF-Article 1.0
Author-Name: Ruth Mattimoe 
Author-X-Name-First: Ruth 
Author-X-Name-Last: Mattimoe 
Author-Name: Will Seal 
Author-X-Name-First: Will 
Author-X-Name-Last: Seal 
Title: Pricing in a Service Sector Context: Accounting and Marketing Logics in the Hotel Industry 
Abstract:
  The paper analyses hotel room pricing via an application of institutional
 economic theory. The institutional framework considers the impact of
 accounting and marketing templates that help hotel managers make sense of
 complex pricing decisions. From an institutional perspective, the spread
 and implementation of these templates is influenced by specific historical
 factors and may be subject to path dependency. The institutional theory is
 applied to a case study using a pragmatic constructivist methodology. The
 case site revealed that whilst long run cost structures are important in
 locating the market niche of the business and that hotels use conventional
 cost control techniques, costs play relatively little role in price
 determination with a dominant role for marketing templates that
 concentrate on revenue management. The study suggests how the synthesis
 between institutional economics and pragmatic constructivism offers a
 research framework that could be replicated in further studies. 
Journal: European Accounting Review 
Pages: 355-388 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2010.493657 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2010.493657 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:355-388




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Pedro Sanchez-Ballesta 
Author-X-Name-First: Juan Pedro 
Author-X-Name-Last: Sanchez-Ballesta 
Author-Name: Emma Garcia-Meca 
Author-X-Name-First: Emma 
Author-X-Name-Last: Garcia-Meca 
Title: Ownership Structure and the Cost of Debt 
Abstract:
  This paper examines the impact on the cost of debt by ownership
 concentration and shareholder identity; that is, whether the shareholders
 are banks, non-financial firms, the state, institutional investors or the
 board of directors. Our analysis suggests that directors who own shares
 tend to be aligned with external shareholders, that firms with government
 ownership enjoy lower cost of debt and that banks effectively monitor
 management, so reducing the agency costs of debt. 
Journal: European Accounting Review 
Pages: 389-416 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180903487834 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180903487834 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:389-416




Template-Type: ReDIF-Article 1.0
Author-Name: Teemu Malmi 
Author-X-Name-First: Teemu 
Author-X-Name-Last: Malmi 
Title: Key Concepts in Ethnography 
Abstract:
Journal: European Accounting Review 
Pages: 417-418 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.580945 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.580945 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:417-418




Template-Type: ReDIF-Article 1.0
Author-Name: Lili-Anne Kihn 
Author-X-Name-First: Lili-Anne 
Author-X-Name-Last: Kihn 
Author-Name: Lauri Lepisto 
Author-X-Name-First: Lauri 
Author-X-Name-Last: Lepisto 
Title: Management Accounting in Enterprise Resource Planning Systems 
Abstract:
Journal: European Accounting Review 
Pages: 418-422 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.580947 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.580947 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:418-422




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Larrinaga-Gonzalez 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Larrinaga-Gonzalez 
Title: Engaging Crystallization in Qualitative Research: An Introduction 
Abstract:
Journal: European Accounting Review 
Pages: 422-425 
Issue: 2 
Volume: 20 
Year: 2011 
X-DOI: 10.1080/09638180.2011.580948 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09638180.2011.580948 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:2:p:422-425




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Humphrey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Humphrey 
Author-Name: Asad Kausar 
Author-X-Name-First: Asad 
Author-X-Name-Last: Kausar 
Author-Name: Anne Loft 
Author-X-Name-First: Anne 
Author-X-Name-Last: Loft 
Author-Name: Margaret Woods 
Author-X-Name-First: Margaret 
Author-X-Name-Last: Woods 
Title: Regulating Audit beyond the Crisis: A Critical Discussion of the EU Green Paper 
Abstract:
  With the European Commission making global leadership claims in the field
 of audit regulation, the content of its 2010 Green Paper on &#x2018;Audit
 Policy: Lessons from the Crisis&#x2019; warrants careful scrutiny.
 Important issues raised in the Green Paper include regulatory oversight,
 competition in the audit market, the dangers of having very few firms with
 the capacity to audit global transnational corporations, professional
 judgement, innovative audit practices and, last but not least, social
 responsibility. This article analyses the principal perspectives and
 assumptions underpinning the construction of the Green Paper. The aims are
 threefold: to enhance understanding of the contemporary regulatory mindset
 of the European Commission, contribute to policy debate and inspire future
 research. 
Journal: European Accounting Review 
Pages: 431-457 
Issue: 3 
Volume: 20 
Year: 2011 
Month: 6 
X-DOI: 10.1080/09638180.2011.597201 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.597201 
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Handle: RePEc:taf:euract:v:20:y:2011:i:3:p:431-457




Template-Type: ReDIF-Article 1.0
Author-Name: David Ashton 
Author-X-Name-First: David 
Author-X-Name-Last: Ashton 
Author-Name: Ken Peasnell 
Author-X-Name-First: Ken 
Author-X-Name-Last: Peasnell 
Author-Name: Pengguo Wang 
Author-X-Name-First: Pengguo 
Author-X-Name-Last: Wang 
Title: Residual Income Valuation Models and Inflation 
Abstract:
  Existing empirical evidence suggests that residual income valuation
 models based on historical cost accounting considerably underestimate
 equity values. One possible explanation is the use of historical cost
 accounting under inflationary conditions. In this paper, we use a residual
 income framework to explore theoretically how historical cost accounting
 numbers need to be adjusted for inflation in forecasting and valuation. We
 demonstrate that even in a simple setting where inflation is running at a
 relatively low level, residual income models are likely to produce severe
 under-valuations if inflation is not properly taken into account. We use
 simulated data to reinforce our theoretical findings and to illustrate the
 difficulties that empirical investigators face working within the confines
 imposed by real data. 
Journal: European Accounting Review 
Pages: 459-483 
Issue: 3 
Volume: 20 
Year: 2011 
Month: 5 
X-DOI: 10.1080/09638180.2010.493661 
File-URL: http://hdl.handle.net/10.1080/09638180.2010.493661 
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Handle: RePEc:taf:euract:v:20:y:2011:i:3:p:459-483




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Gr&#xFC;ning 
Author-X-Name-First: Michael 
Author-X-Name-Last: Gr&#xFC;ning 
Title: Artificial Intelligence Measurement of Disclosure (AIMD) 
Abstract:
  Empirical research on voluntary disclosure lacks an appropriate
 measurement technique for quantifying the intensity of a firm's
 disclosure. In this paper, I introduce artificial intelligence measurement
 of disclosure (AIMD), a computerised technique for measuring disclosure
 using artificial intelligence, which derives disclosure proxies from
 English-language annual reports for 10 different information dimensions
 without human involvement. Criterion validity tests indicate that,
 controlling for a robust set of covariates and multiple statistical
 techniques, AIMD is negatively associated with information asymmetry as
 proxied by spreads and PIN. Furthermore, AIMD has construct validity when
 compared to the AIMR disclosure rating, Standard & Poor's Transparency and
 Disclosure Rating, several proprietary manual disclosure scorings and
 companies&#x2019; own assessment of their level of disclosure as indicated
 by a survey. I also demonstrate the applicability of AIMD as a
 cost-effective technique for measuring disclosure using a sample of
 127,895 firm-year observations of companies regulated by the SEC. 
Journal: European Accounting Review 
Pages: 485-519 
Issue: 3 
Volume: 20 
Year: 2011 
Month: 7 
X-DOI: 10.1080/09638180.2011.585792 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.585792 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:3:p:485-519




Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Matsui 
Title: Strategic Transfer Pricing and Social Welfare under Product Differentiation 
Abstract:
  In this paper, we investigate the social impacts of strategic transfer
 pricing by oligopoly firms, aiming to derive regulatory implications for
 transfer prices. A notable finding from our model is that the negative
 effects on social welfare of transfer prices being set above marginal cost
 are pronounced when either (1) the number of competing firms is large and
 the product is relatively highly differentiated or (2) the number of firms
 is small and the product is not very differentiated. This result indicates
 that even when the number of firms in the industry is significant and the
 market is thus apparently competitive, the authorities should not overlook
 the possibility that setting transfer prices above marginal cost might
 seriously damage social welfare if the product is highly differentiated. 
Journal: European Accounting Review 
Pages: 521-550 
Issue: 3 
Volume: 20 
Year: 2011 
Month: 9 
X-DOI: 10.1080/09638180.2010.496256 
File-URL: http://hdl.handle.net/10.1080/09638180.2010.496256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:20:y:2011:i:3:p:521-550




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrika Wiesel 
Author-X-Name-First: Fredrika 
Author-X-Name-Last: Wiesel 
Author-Name: Sven Modell 
Author-X-Name-First: Sven 
Author-X-Name-Last: Modell 
Author-Name: Jodie Moll 
Author-X-Name-First: Jodie 
Author-X-Name-Last: Moll 
Title: Customer Orientation and Management Control in the Public Sector: A Garbage Can Analysis 
Abstract:
  Recent public sector reforms have increasingly tended to re-cast citizens
 as &#x2018;customers&#x2019;. This paper explores the implications of such
 customer orientation efforts for management control based on a field study
 in a Swedish central government agency. We extend prior research on this
 topic, informed by critical and institutional theories, with insights from
 the garbage can literature and focus on a key decision-making process
 involved in making extant management control practices more
 customer-focused. Our analysis nuances the predictions of critical
 scholars, suggesting that customer orientation initiatives will commodify
 public services and narrow the interests served by public sector
 organizations. In doing so, we draw attention to how conflicting
 institutional arrangements fostered a garbage can situation hampering
 radical change in management control practices. Our garbage can analysis
 provides a bridge between critical and institutional perspectives by
 re-instating a focus on decision-making. We show how the intricacies of
 decision-making may moderate the power embedded in novel management
 control practices and foster inertia and unintended outcomes. Our analysis
 also raises important policy implications pertaining to the possibilities
 of combining customer orientation efforts with rationing of public
 services. 
Journal: European Accounting Review 
Pages: 551-581 
Issue: 3 
Volume: 20 
Year: 2011 
Month: 7 
X-DOI: 10.1080/09638180.2010.522778 
File-URL: http://hdl.handle.net/10.1080/09638180.2010.522778 
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Handle: RePEc:taf:euract:v:20:y:2011:i:3:p:551-581




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth   A. Merchant 
Author-X-Name-First: Kenneth   A. 
Author-X-Name-Last: Merchant 
Author-Name: Wim   A. Van der Stede 
Author-X-Name-First: Wim   A. 
Author-X-Name-Last: Van der Stede 
Author-Name: Thomas   W. Lin 
Author-X-Name-First: Thomas   W. 
Author-X-Name-Last: Lin 
Author-Name: Zengbiao Yu 
Author-X-Name-First: Zengbiao 
Author-X-Name-Last: Yu 
Title: Performance Measurement and Incentive Compensation: An Empirical Analysis and Comparison of Chinese and Western Firms' Practices 
Abstract:
  This paper describes the findings of a study aimed at providing a
 replication and extension in China of studies focused on incentive
 compensation practices of automobile retailers in the USA and the
 Netherlands. Rich, detailed data-sets from all three countries are
 analysed together and in comparison. As theory is not well developed at
 the level of detail of the data collected, the purpose of this study was
 primarily exploratory, to provide empirics that can lead to the
 development of theory. The findings show that Chinese firms are much more
 likely to provide incentive compensation than are Dutch firms, and they
 are even somewhat more likely to provide them than are US firms. But
 Chinese bonus plans are more likely to be subjective, rather than
 formula-based. In the situations where incentive payments are based on
 pre-set formulas, the Chinese firms' systems are more like those used in
 the Netherlands than in the USA, with bonuses based on non-financial
 performance measures and with more complex performance--reward functions.
 Like managers in the US firms, but unlike managers in the Dutch firms,
 Chinese managers who receive some form of incentive compensation are more
 satisfied with their pay. The paper concludes with tentative explanations
 of the findings and suggestions for future research. 
Journal: European Accounting Review 
Pages: 639-667 
Issue: 4 
Volume: 20 
Year: 2011 
Month: 5 
X-DOI: 10.1080/09638180.2011.593293 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.593293 
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Handle: RePEc:taf:euract:v:20:y:2011:i:4:p:639-667




Template-Type: ReDIF-Article 1.0
Author-Name: Gongmeng Chen 
Author-X-Name-First: Gongmeng 
Author-X-Name-Last: Chen 
Author-Name: Michael Firth 
Author-X-Name-First: Michael 
Author-X-Name-Last: Firth 
Author-Name: Daniel Ning Gao 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Ning Gao 
Title: The Information Content of Earnings Components: Evidence from the Chinese Stock Market 
Abstract:
  China's listed firms report substantial non-operating revenues and
 expenses. We argue that these non-core earnings should have different
 properties and different valuation implications than operating or core
 earnings. Furthermore, the different types of firm ownership may have
 differential impacts on the information content of earnings components.
 Based on data from 1996 to 2008, we find that core earnings are more
 persistent than non-core earnings. Because of this, core earnings have a
 greater association with contemporaneous stock returns. However, the stock
 market does not fully incorporate all the information in earnings; we find
 that core earnings are undervalued and non-core earnings are overvalued.
 This effect is much reduced for privately controlled listed firms. We
 develop an investment trading strategy to exploit these market
 inefficiencies. 
Journal: European Accounting Review 
Pages: 669-692 
Issue: 4 
Volume: 20 
Year: 2011 
Month: 5 
X-DOI: 10.1080/09638180.2011.599929 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.599929 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:4:p:669-692




Template-Type: ReDIF-Article 1.0
Author-Name: Taychang Wang 
Author-X-Name-First: Taychang 
Author-X-Name-Last: Wang 
Author-Name: Chiawen Liu 
Author-X-Name-First: Chiawen 
Author-X-Name-Last: Liu 
Author-Name: Chien-Heng   Jennifer Chang 
Author-X-Name-First: Chien-Heng   Jennifer 
Author-X-Name-Last: Chang 
Title: CPA-Firm Merger: An Investigation of Audit Quality 
Abstract:
  It would be interesting to know how the theories and hypotheses in
 auditing developed for a mature economy work in an emerging market. This
 paper uses the merger of Diwan, Ernst & Young and J.T. Lai & Co., CPAs in
 Taiwan in 2000 as a target to study the effects of a CPA-firm merger on
 audit quality, measured by discretionary accruals. Diwan, Ernst & Young
 and J.T. Lai & Co., CPAs belonged to Big 5 and non-Big 5 CPA firms in
 Taiwan, respectively, before they merged. The magnitudes of the increased
 size and reputation caused by the merger are different between the two
 firms. Therefore, we also analyse whether the merger has different effects
 on audit quality of these two firms. The empirical evidence shows that
 after the merger, the discretionary accruals of the two firms' clients
 significantly decrease. In addition, the magnitude of the change is
 greater for the clients of J.T. Lai & Co., CPAs than for those of Diwan,
 Ernst & Young. The results are consistent with predictions of both size
 and reputation effect hypotheses. 
Journal: European Accounting Review 
Pages: 727-761 
Issue: 4 
Volume: 20 
Year: 2011 
Month: 6 
X-DOI: 10.1080/09638180.2011.600485 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.600485 
File-Format: text/html
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Handle: RePEc:taf:euract:v:20:y:2011:i:4:p:727-761




Template-Type: ReDIF-Article 1.0
Author-Name: Ian   P. Dewing 
Author-X-Name-First: Ian   P. 
Author-X-Name-Last: Dewing 
Author-Name: Peter   O. Russell 
Author-X-Name-First: Peter   O. 
Author-X-Name-Last: Russell 
Title: Auditors as Regulatory Actors: The Role of Auditors in Banking Regulation in Switzerland 
Abstract:
  This paper investigates the long-standing Swiss dualistic approach to
 banking supervision, whereby banks' external auditors report not only to
 shareholders under company legislation but also report to, and undertake
 work for, the banking regulator under banking legislation. The dual role
 raises the issue of whether auditors are sufficiently independent of
 management to act fairly with respect to both shareholders and
 supervisors. In contrast, recent literature and policy-making on
 regulation advocates the need to close the distance between regulators and
 those regulated, and the Basel Committee on Banking Supervision has
 advocated a closer relationship between banking supervisors and banks'
 external auditors. The paper investigates the dual role by providing
 empirical evidence from interviews undertaken with Swiss audit partners,
 and analysis of documentary material from the Swiss banking regulator and
 IMF. The paper concludes inter alia that the Swiss dualistic system
 &#x2018;works&#x2019; because it is supported by a layered regulatory
 approach at audit firm, national and international levels to ensure and
 safeguard auditor independence and competence. Whether such a system would
 work elsewhere depends on national factors such as conceptions of the
 nature of corporate governance and of the state, and prevailing views on
 private actors undertaking public roles. 
Journal: European Accounting Review 
Pages: 1-28 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638180.2010.522776 
File-URL: http://hdl.handle.net/10.1080/09638180.2010.522776 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:1:p:1-28




Template-Type: ReDIF-Article 1.0
Author-Name: Sam Han 
Author-X-Name-First: Sam 
Author-X-Name-Last: Han 
Author-Name: Tony Kang 
Author-X-Name-First: Tony 
Author-X-Name-Last: Kang 
Author-Name: Yong   Keun Yoo 
Author-X-Name-First: Yong   Keun 
Author-X-Name-Last: Yoo 
Title: Governance Role of Auditors and Legal Environment: Evidence from Corporate Disclosure Transparency 
Abstract:
  In a sample of firms originating from 20 countries, we examine whether
 and how auditor size (our proxy for audit quality) associates with
 corporate disclosure transparency. While prior studies examine the
 relation between auditor size and several aspects of financial reporting
 quality (e.g. discretionary accruals, restatements, etc.), there is
 limited evidence on how auditor size relates to disclosure transparency.
 There is also mixed evidence on how auditor size relates to reporting
 quality in different legal environments. We find that auditor size is
 positively associated with disclosure transparency around the world and
 that the association is stronger in code law regimes than in common law
 regimes. The latter finding supports the view that audits play a greater
 governing role in weaker legal environments. 
Journal: European Accounting Review 
Pages: 29-50 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638180.2011.599928 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.599928 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:1:p:29-50




Template-Type: ReDIF-Article 1.0
Author-Name: Karin Jonnerg&#xE5;rd 
Author-X-Name-First: Karin 
Author-X-Name-Last: Jonnerg&#xE5;rd 
Title: Quality Control through Venetian Blinds: Regulating the Swedish Auditing Industry 
Abstract:
  In this paper I attempt to gain an understanding of the regulatory
 processes in the auditing industry by studying the development of quality
 control in Sweden between 1977 and 2004. The paper starts with the
 observation that the audit industry is multilayered and that regulatory
 processes occur on different levels: between the state and the profession
 at large and between the professional association and the individual
 auditor or auditing firm. The focus is on the interaction between the
 different levels. Through developing a framework built on regulation
 theories from political science and the field of accounting research,
 three aspects of the regulatory processes important for the interaction
 between the levels are defined: the substantive, the justifying and the
 material. These aspects are later used to analyse the case study, leading
 to a specification of the characteristics and content of the couplings
 between the different levels where regulation is occurring. 
Journal: European Accounting Review 
Pages: 51-85 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 2 
X-DOI: 10.1080/09638180.2010.522773 
File-URL: http://hdl.handle.net/10.1080/09638180.2010.522773 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:1:p:51-85




Template-Type: ReDIF-Article 1.0
Author-Name: Audrey Hsu 
Author-X-Name-First: Audrey 
Author-X-Name-Last: Hsu 
Author-Name: John O'Hanlon 
Author-X-Name-First: John 
Author-X-Name-Last: O'Hanlon 
Author-Name: Ken Peasnell 
Author-X-Name-First: Ken 
Author-X-Name-Last: Peasnell 
Title: The Basu Measure as an Indicator of Conditional Conservatism: Evidence from UK Earnings Components 
Abstract:
  Following the work of Basu in 1997, the excess of the sensitivity of
 accounting earnings to negative share return over its sensitivity to
 positive share return (the Basu coefficient) has been interpreted as an
 indicator of conditional accounting conservatism. Although this
 interpretation is supported by substantial evidence that the Basu
 coefficient is associated with likely demands for conservatism, concerns
 have arisen that it may reflect factors not directly related to
 conservatism, and that this may adversely affect its validity as an
 indicator of that phenomenon. We argue that evidence on the validity of
 the Basu coefficient as an indicator of conditional conservatism can be
 obtained by disaggregating earnings into components, classifying those
 components by whether or not they are likely to be affected by conditional
 conservatism, and examining whether the Basu coefficient arises primarily
 from components likely to be affected by conditional conservatism. We
 implement this procedure for UK firms reporting under <italic>FRS 3:
 Reporting Financial Performance</italic> from 1992 to 2004. Although a
 substantial proportion of the Basu coefficient emanates from cash flow
 from operating and investing activities (CFOI), which cannot directly
 reflect accounting conservatism, its incidence across other components of
 earnings is predominantly within those components likely to be affected by
 conditional conservatism. Also, although the bias documented by Patatoukas
 and Thomas in 2009 is present in all of our aggregate earnings measures,
 it is heavily concentrated in the CFOI component of earnings and largely
 absent from components classified as likely to be affected by conditional
 conservatism. With the important caveat that researchers should test the
 robustness of their results to the exclusion of the element of the Basu
 coefficient due to cash flows, our findings are consistent with the
 conditional conservatism interpretation of the coefficient. 
Journal: European Accounting Review 
Pages: 87-113 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638180.2011.558296 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.558296 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:1:p:87-113




Template-Type: ReDIF-Article 1.0
Author-Name: Florence Depoers 
Author-X-Name-First: Florence 
Author-X-Name-Last: Depoers 
Author-Name: Thomas Jeanjean 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Jeanjean 
Title: Determinants of Quantitative Information Withholding in Annual Reports 
Abstract:
  In recent years, the determinants of voluntary disclosure have been
 explored in an extensive body of empirical research. One major limitation
 of those studies is that none has tried to find out whether voluntary
 disclosures were occasional or continuous over time. Yet this point is
 particularly important, as the voluntary disclosure mechanism can only be
 fully effective if the manager consistently reports the same items. This
 paper examines the factors associated with the decision to stop disclosing
 an item of information previously published voluntarily (henceforth
 &#x2018;information withholding&#x2019; or IW). To measure information
 withholding, we code 178 annual reports of French firms for three
 consecutive years. Although disclosure scores are relatively stable over
 time, we find that this does not mean there is no change in voluntary
 disclosure across the years. We document that IW is a widespread practice:
 on average, one voluntary item out of seven disclosed in a given year is
 withheld the following year. We show that information withholding is
 mainly related to the firm's competition environment, ownership diffusion,
 board independence and the existence of a dual leadership structure
 (separate CEO and chairman). 
Journal: European Accounting Review 
Pages: 115-151 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638180.2010.493669 
File-URL: http://hdl.handle.net/10.1080/09638180.2010.493669 
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Handle: RePEc:taf:euract:v:21:y:2012:i:1:p:115-151




Template-Type: ReDIF-Article 1.0
Author-Name: Parmod Chand 
Author-X-Name-First: Parmod 
Author-X-Name-Last: Chand 
Author-Name: Lorne Cummings 
Author-X-Name-First: Lorne 
Author-X-Name-Last: Cummings 
Author-Name: Chris Patel 
Author-X-Name-First: Chris 
Author-X-Name-Last: Patel 
Title: The Effect of Accounting Education and National Culture on Accounting Judgments: A Comparative Study of Anglo-Celtic and Chinese Culture 
Abstract:
  Countries adopting International Financial Reporting Standards (IFRS)
 need to educate and train their professional accountants so that they are
 able to interpret and apply IFRS in a consistent manner. This study
 examines the effect of national culture and education on the judgments of
 Australian (Anglo-Celtic) and Chinese final year undergraduate accounting
 students in Australia. It seeks to understand whether culture influences
 student interpretation and application of uncertainty expressions, which
 are used as recognition and disclosure thresholds in IFRS. Results
 obtained on the cultural dimensions of Uncertainty Avoidance,
 Individualism, Power Distance, Masculinity and Long-Term Orientation
 provide evidence that Chinese students exhibit greater conservatism and
 secrecy compared to Australian students. The results of the study indicate
 that national culture has a significant effect on the judgments of
 accounting students when interpreting and applying selected IFRS
 containing uncertainty expressions. The results also imply that
 educational similarity does not moderate the effect of culture in
 influencing the judgments of accounting students. An important implication
 of the study is that regulators and standard-setters involved in the
 international convergence of accounting standards need to pay greater
 attention to cultural factors that may result in a difference in the
 interpretation and application of IFRS. 
Journal: European Accounting Review 
Pages: 153-182 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638180.2011.591524 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.591524 
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Template-Type: ReDIF-Article 1.0
Author-Name: Francesca Franco 
Author-X-Name-First: Francesca 
Author-X-Name-Last: Franco 
Title: Compensation and Organisational Performance: Theory, Research and Practice (1-super-st Edition) 
Journal: European Accounting Review 
Pages: 183-186 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638180.2012.675164 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.675164 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:1:p:183-186




Template-Type: ReDIF-Article 1.0
Author-Name: Francesca Franco 
Author-X-Name-First: Francesca 
Author-X-Name-Last: Franco 
Title: Interviews -- Learning the Craft of Qualitative Research Interviewing 
Journal: European Accounting Review 
Pages: 186-189 
Issue: 1 
Volume: 21 
Year: 2012 
Month: 5 
X-DOI: 10.1080/09638180.2012.675165 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.675165 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:1:p:186-189




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Vanstraelen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Vanstraelen 
Author-Name: Caren Schelleman 
Author-X-Name-First: Caren 
Author-X-Name-Last: Schelleman 
Author-Name: Roger Meuwissen 
Author-X-Name-First: Roger 
Author-X-Name-Last: Meuwissen 
Author-Name: Isabell Hofmann 
Author-X-Name-First: Isabell 
Author-X-Name-Last: Hofmann 
Title: The Audit Reporting Debate: Seemingly Intractable Problems and Feasible Solutions 
Abstract:
	      While the audit reporting debate has a long history, a number
 of recent regulatory initiatives and policy reviews increase the
 likelihood of change in this area. The purpose of this study is to use
 this momentum and examine whether there is consensus between audit report
 users and auditors with regard to the form and content of the audit
 report. This seems necessary because past audit reporting reforms have
 failed due to a lack of common ground. Based on interviews with users and
 auditors, we conclude that reaching a level of consensus seems feasible.
 Using these insights, we propose an alternative audit reporting model that
 may significantly reduce the information gap between users and auditors
 and improve transparency on the quality of audit practice.	     
Journal: European Accounting Review 
Pages: 193-215 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2012.687506 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.687506 
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Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:193-215




Template-Type: ReDIF-Article 1.0
Author-Name: J�rgen Ernstberger 
Author-X-Name-First: J�rgen 
Author-X-Name-Last: Ernstberger 
Author-Name: Michael Stich 
Author-X-Name-First: Michael 
Author-X-Name-Last: Stich 
Author-Name: Oliver Vogler 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Vogler 
Title: Economic Consequences of Accounting Enforcement Reforms: The Case of Germany 
Abstract:
	      This study investigates recent reforms in financial reporting
 enforcement in Germany. The objective of these reforms was to promote a
 consistent and faithful application of accounting standards. Using a
 difference-in-differences approach, we find some evidence of a decrease in
 earnings management, an increase in stock liquidity, and, to a limited
 extent, an increase in market valuation for companies that fall under the
 new enforcement regime. Our results also provide some support for the
 notion that companies characterized by an overall low level of enforcement
 through other internal and external mechanisms are particularly affected
 by these reforms. The results are largely robust in several sensitivity
 analyses, but the results must be interpreted with caution because we
 cannot completely rule out the possibility of other explanations.	    
Journal: European Accounting Review 
Pages: 217-251 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2011.628096 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.628096 
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Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:217-251




Template-Type: ReDIF-Article 1.0
Author-Name: J�rg-Markus Hitz 
Author-X-Name-First: J�rg-Markus 
Author-X-Name-Last: Hitz 
Author-Name: J�rgen Ernstberger 
Author-X-Name-First: J�rgen 
Author-X-Name-Last: Ernstberger 
Author-Name: Michael Stich 
Author-X-Name-First: Michael 
Author-X-Name-Last: Stich 
Title: Enforcement of Accounting Standards in Europe: Capital-Market-Based Evidence for the Two-Tier Mechanism in Germany 
Abstract:
	      On the background of regulatory initiatives that mandate the
 establishment of comparable enforcement systems in EU jurisdictions to
 ascertain consistent and faithful application of IFRS, this paper provides
 capital-market-based evidence on investor reactions for one specific
 institutional set-up: the two-tier enforcement system in Germany. In
 operation since 2005, the German enforcement mechanism consists of a
 private body, the DPR, which investigates compliance of published
 financial reports of firms listed on a regulated market segment and, upon
 error findings, involves the German securities regulator BaFin, which on a
 second level enforces disclosure of these findings to establish adverse
 disclosure ('name and shame'). For a sample of error findings published in
 the period 2005-2009, we investigate short- and long-term market reactions
 to error announcements. Results for abnormal returns, abnormal trading
 volumes and abnormal bid-ask spreads indicate that these announcements
 represent new, negative information and suggest that, despite an
 enforcement environment that is categorised as weak in the extant
 literature, the activities of the DPR/BaFin seem to penalise infringing
 firms and thus provide potential deterrence. Multivariate analyses yield
 weak evidence that the magnitude of the market value discount is
 positively associated with the severity of the errors, with the threat of
 subsequent litigation and with cases in which firms disagreed with the
 error findings of the DPR.	     
Journal: European Accounting Review 
Pages: 253-281 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2011.641727 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.641727 
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Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:253-281




Template-Type: ReDIF-Article 1.0
Author-Name: Roland K�nigsgruber 
Author-X-Name-First: Roland 
Author-X-Name-Last: K�nigsgruber 
Title: Capital Allocation Effects of Financial Reporting Regulation and Enforcement 
Abstract:
	      This paper analyses the effects of stricter financial
 reporting enforcement on capital allocation and reporting quality in a
 game-theoretic model and derives conclusions about optimal enforcement
 strictness. Analysis of the model shows that reporting quality strictly
 increases with tighter enforcement. However, the effect of stricter
 enforcement on capital allocation is non-monotonic. Intermediate
 enforcement strictness results in overdeterrence of viable projects even
 without costs of compliance. This effect can be alleviated by means of
 either less or more stringent enforcement.	     
Journal: European Accounting Review 
Pages: 283-296 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2011.558294 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.558294 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:283-296




Template-Type: ReDIF-Article 1.0
Author-Name: Helena Isidro 
Author-X-Name-First: Helena 
Author-X-Name-Last: Isidro 
Author-Name: David Grilo 
Author-X-Name-First: David 
Author-X-Name-Last: Grilo 
Title: Value-Driving Activities in Euro-Zone Banks 
Abstract:
	      We develop and test accounting-based valuation models for
 commercial banks. We extend Begley <italic>et al.</italic>'s framework
 (2006) and propose a valuation model where goodwill is generated by
 virtually all commercial and investment banking activities. Key features
 of our model are: the development of a relation between future cash flows
 from fee income and the bank value that depends on lending, borrowing and
 off-balance sheet business; and the inclusion of proprietary investment
 and trading as value-driving activities. Empirical tests on a sample of
 Euro-zone banks from 1998 to 2006 provide the following evidence.
 Unrealised expected cash flows from fee income are the most important
 source of unrecorded goodwill. This is consistent with the increasing
 importance of revenue from the sale of financial services to banks'
 income. The contribution of fee income to goodwill is higher for banks
 with large deposits and new loans. Equity securities are a source of
 unrecorded goodwill, but the introduction of fair value accounting, with
 the adoption of the International Financial Reporting Standards (IFRS),
 reduces their valuation role. Yet equity securities remain positively
 associated with unrecorded goodwill after IFRS adoption, suggesting that
 the fair value standards do not fully capture market expectations about
 future cash flows of investment assets.	  
Journal: European Accounting Review 
Pages: 297-341 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2011.585790 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.585790 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:297-341




Template-Type: ReDIF-Article 1.0
Author-Name: Erlend Kvaal 
Author-X-Name-First: Erlend 
Author-X-Name-Last: Kvaal 
Author-Name: Christopher Nobes 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Nobes 
Title: IFRS Policy Changes and the Continuation of National Patterns of IFRS Practice 
Abstract:
	      International Financial Reporting Standards (IFRS) contain
 several policy options. This paper examines the choices made in 2008/9
 IFRS financial statements by large listed companies from five countries on
 all the options that are observable. We compare these choices with those
 that had been made by the same companies in 2005/6, which (except for the
 German companies) was the year of transition to IFRS. For Australian and
 UK companies, we find - as expected - that there were few policy changes.
 However, despite the constraints on policy change within IFRS, we find
 that French and Spanish companies not only made more changes than the
 other companies but that they also made more changes after transition than
 at transition. Further investigation reveals that these findings are
 largely driven by a small number of topics. One possible explanation for
 the pattern of these changes is a 'learning' process, which is supported
 by finding that nearly all the post-transition changes made by the French
 and Spanish companies were away from previous national requirements.
 However, we consider other possible explanations. We also present the
 profiles of IFRS practices for 2008/9. Despite the changes in policy from
 2005/6, we find clear evidence that national patterns of IFRS practice
 continue through the period, so that international comparability remains
 in doubt.	    
Journal: European Accounting Review 
Pages: 343-371 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2011.611236 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.611236 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:343-371




Template-Type: ReDIF-Article 1.0
Author-Name: A. William Richardson 
Author-X-Name-First: A. William 
Author-X-Name-Last: Richardson 
Author-Name: Raafat R. Roubi 
Author-X-Name-First: Raafat R. 
Author-X-Name-Last: Roubi 
Author-Name: Kazbi Soonawalla 
Author-X-Name-First: Kazbi 
Author-X-Name-Last: Soonawalla 
Title: Decline in Financial Reporting for Joint Ventures? Canadian Evidence on Removal of Financial Reporting Choice 
Abstract:
	      In 1995, the Canadian Institute of Chartered Accountants
 (CICA) changed its Generally Accepted Accounting Principles on accounting
 for joint ventures from permitting a choice between the equity method (EM)
 and proportionate consolidation (PC) to requiring only PC. More recently,
 the International Accounting Standards Board (IASB) has decided to issue a
 new standard that will eliminate choice between EM and PC and require only
 EM; but as of October 2010 a new standard was still to be issued. The past
 Canadian and proposed IASB changes are similar in that choice between the
 same two reporting methods is removed but differ in the required
 alternative, PC for Canada and EM for the IASB. In this paper we use a
 sample of Canadian companies over the period 1985-2003 to study financial
 reporting for joint ventures. To our knowledge, our Canadian sample is the
 only one reflecting a reduction of choice in financial reporting methods
 for joint ventures. Therefore, our results have particular relevance for
 evaluating the IASB's proposed change. Specifically, we investigate
 whether firms that use EM between 1985 and 1994 experience a decline in
 value relevance of key balance sheet amounts such as total assets and
 liabilities when forced to use PC from 1995 onwards. Since 1995 firms are
 also required to provide footnote disclosures on their share of joint
 venture assets and liabilities in addition to revenues, expenses and cash
 flows. Using these disclosures, we investigate whether disaggregate joint
 venture assets and liabilities are incrementally and overall value
 relevant. We find that firms that are forced to switch from EM to PC
 experience a decline in value relevance of reported assets and
 liabilities. The firms that use PC for the entire sample period experience
 no such decline. We also find that joint venture assets and liabilities
 are incrementally and overall value relevant when disclosures are
 mandatory from 1995 onwards. Our results show that the removal of choice
 of financial reporting method does have value-relevance implications,
 something that is of importance to users. We also find that the
 requirement of additional disclosure of joint venture assets and
 liabilities is value relevant, which may offset, to some extent, the costs
 of the reduction in choice. Our inferences may have implications for a
 number of jurisdictions across Europe and beyond that are affected by a
 similar reduction of accounting choice proposed by the IASB.	       
Journal: European Accounting Review 
Pages: 373-393 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2011.558298 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.558298 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:373-393




Template-Type: ReDIF-Article 1.0
Author-Name: Mika Ylinen 
Author-X-Name-First: Mika 
Author-X-Name-Last: Ylinen 
Author-Name: Benita Gullkvist 
Author-X-Name-First: Benita 
Author-X-Name-Last: Gullkvist 
Title: The Effects of Tolerance for Ambiguity and Task Uncertainty on the Balanced and Combined Use of Project Controls 
Abstract:
	      This study contributes to the literature by examining
 antecedents to different combinations of management control systems. These
 combinations include combined use, focusing on the absolute magnitude of
 the project manager's organic and mechanistic control activities, and the
 balanced use, that is their relative magnitude. It is proposed that
 project managers' perceived task uncertainty and tolerance for ambiguity
 have direct and interaction effects on their balanced and combined use of
 different combinations of project control. Consistent with the hypotheses,
 the results show negative relationships between high tolerance for
 ambiguity and balanced and combined use of organic and mechanistic
 controls. Further, task uncertainty appears to have a direct, significant
 negative effect on balanced use, but not on combined use. Furthermore, as
 proposed, a negative significant interaction effect was found. The results
 were controlled for project size, project type and level of
 innovativeness.	  
Journal: European Accounting Review 
Pages: 395-415 
Issue: 2 
Volume: 21 
Year: 2012 
Month: 8 
X-DOI: 10.1080/09638180.2011.631733 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.631733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:2:p:395-415




Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Ditillo 
Author-X-Name-First: Angelo 
Author-X-Name-Last: Ditillo 
Title: Designing Management Control Systems to Foster Knowledge Transfer in Knowledge-Intensive Firms: A Network-Based Approach 
Abstract:
  Research on management control has emphasised the relevance of controls
 for knowledge integration on a project-by-project basis. This work
 contributes to this field by proposing a framework to explain how
 management control systems foster knowledge transfer between
 organisational units in knowledge-intensive firms. By combining network
 theory and knowledge network research, this study suggests that the design
 of management control systems should consider various forms of
 relationships between individuals (strong/weak, direct/indirect) that
 these systems activate and that are necessary to transfer various forms of
 knowledge (process, outcome, technology or opportunities) characterised by
 different levels of causal ambiguity and relatedness. An in-depth
 empirical analysis of a software firm and three of its projects shows that
 management controls may act as important mechanisms of knowledge
 circulation and that some principles reinforce this function. In
 particular, to achieve organisational knowledge transfer, enforceability
 of manuals and procedures, scalability of reviews and decisions, mobility
 induction of individuals, and multiplicity of roles and accountabilities
 are indicated as desirable design properties of control systems in
 knowledge-intensive firms. 
Journal: European Accounting Review 
Pages: 425-450 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638180.2012.661939 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.661939 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:425-450




Template-Type: ReDIF-Article 1.0
Author-Name: Henk   J. ter Bogt 
Author-X-Name-First: Henk   J. 
Author-X-Name-Last: ter Bogt 
Author-Name: Robert   W. Scapens 
Author-X-Name-First: Robert   W. 
Author-X-Name-Last: Scapens 
Title: Performance Management in Universities: Effects of the Transition to More Quantitative Measurement Systems 
Abstract:
  The measurement of research and teaching performance is increasingly
 common within universities, driven probably by the rise of New Public
 Management (NPM). Although changing over time and varying from country to
 country, NPM involves the use of private sector methods in the public
 sector. Traditionally, performance measurement in universities has had a
 developmental role -- helping individuals to improve their (future)
 performance. However, the new systems seem more judgemental -- i.e.
 seeking to quantitatively evaluate (past) performance. We study
 performance measurement in two Accounting and Finance groups -- one in the
 Netherlands and one in the UK. In both we see an increasing use of
 judgemental forms of performance evaluation and, in particular, the use of
 more quantitative performance measures. The use of these more judgemental
 quantitative systems is seen to have various effects. Although these
 systems emphasise objective quantitative measures, they relocate
 subjectivities (usually at a greater distance from the subject), rather
 than remove them. This creates uncertainty and anxiety about how the
 systems are used. There is a danger that the new systems could inhibit
 creativity in teaching and limit contributions to the world outside the
 university. Furthermore, they could damage creativity and innovation in
 accounting research -- as researchers play safe in getting the
 publications they need. As we are both researchers and practitioners in
 this area, we should be challenging these trends and pointing to the
 dangers for research (and teaching) in our field. 
Journal: European Accounting Review 
Pages: 451-497 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 2 
X-DOI: 10.1080/09638180.2012.668323 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.668323 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:451-497




Template-Type: ReDIF-Article 1.0
Author-Name: Sylvia   H. Hsu 
Author-X-Name-First: Sylvia   H. 
Author-X-Name-Last: Hsu 
Author-Name: Sandy   Q. Qu 
Author-X-Name-First: Sandy   Q. 
Author-X-Name-Last: Qu 
Title: Strategic Cost Management and Institutional Changes in Hospitals 
Abstract:
  Accounting research raises the concern that firms in the health care and
 defence contracting industries, when facing a dual payment system with
 both cost-based and fixed-rate payments, have an incentive to reallocate
 overhead costs through increasing inputs used in cost-based operations.
 However, prior literature reports contradictory empirical evidence
 regarding such real activity manipulation. Drawing on the institutional
 perspective, we hypothesise that firms' market power and
 interorganisational dependence affect their cost-management strategies and
 choice of overhead allocation in response to dual payment systems.
 Analysing the data of California hospitals from 1980 to 1991, we find that
 when facing a dual payment system, dominant (strong market position)
 hospitals adopt a cost-revenue-enhancing strategy, increasing direct costs
 for cost-based services without containing costs in fixed-rate services.
 In contrast, nondominant hospitals choose a cost-reduction strategy and
 improve operation efficiency on fixed-rate services. We also find that
 nondominant hospitals shift more overhead costs away from fixed-rate
 services to cost-based services by reclassifying the allocation bases
 across services; combining this cost shifting with the cost-reduction
 strategy, nondominant hospitals demonstrate the compliance with the
 regulation expectation of cost containment. 
Journal: European Accounting Review 
Pages: 499-531 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 11 
X-DOI: 10.1080/09638180.2012.658152 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.658152 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:499-531




Template-Type: ReDIF-Article 1.0
Author-Name: Leen Paape 
Author-X-Name-First: Leen 
Author-X-Name-Last: Paape 
Author-Name: Roland   F. Spekl� 
Author-X-Name-First: Roland   F. 
Author-X-Name-Last: Spekl� 
Title: The Adoption and Design of Enterprise Risk Management Practices: An Empirical Study 
Abstract:
  We examine (1) the extent of enterprise risk management (ERM)
 implementation and the factors that are associated with cross-sectional
 differences in the level of ERM adoption, and (2) specific risk management
 design choices and their effect on perceived risk management
 effectiveness. Broadly consistent with previous work in this area, we find
 that the extent of ERM implementation is influenced by the regulatory
 environment, internal factors, ownership structure, and firm and
 industry-related characteristics. In addition, we find that perceived risk
 management effectiveness is associated with the frequency of risk
 assessment and reporting, and with the use of quantitative risk assessment
 techniques. However, our results raise some concerns as to the COSO
 (Committee of Sponsoring Organizations) framework. Particularly, we find
 no evidence that application of the COSO framework improves risk
 management effectiveness. Neither do we find support for the mechanistic
 view on risk management that is implied by COSO's recommendations on risk
 appetite and tolerance. 
Journal: European Accounting Review 
Pages: 533-564 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 1 
X-DOI: 10.1080/09638180.2012.661937 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.661937 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:533-564




Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Lambert 
Author-X-Name-First: Caroline 
Author-X-Name-Last: Lambert 
Author-Name: Samuel Sponem 
Author-X-Name-First: Samuel 
Author-X-Name-Last: Sponem 
Title: Roles, Authority and Involvement of the Management Accounting Function: A Multiple Case-study Perspective 
Abstract:
  Recent techniques and shifts in the environment are often viewed as
 leading management accountants to adopt a business orientation. However,
 empirical evidence pointing to clear shifts in the role played by
 management accountants remains relatively scarce. From in-depth
 qualitative research based on 73 interviews in ten multinational
 companies, we identify four distinct styles of management accounting
 function: discrete, safeguarding, partner, and omnipotent. We show that
 each style can be associated with one main role: discrete control of
 managerial behaviour, socialisation of managers, facilitation of
 decision-making, and centralisation of power. From this in-depth analysis
 of management accountants' styles and roles we move on to discuss the
 authority they hold and the independence/involvement dilemma they face. 
Journal: European Accounting Review 
Pages: 565-589 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638180.2011.629415 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.629415 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:565-589




Template-Type: ReDIF-Article 1.0
Author-Name: Jennifer Kunz 
Author-X-Name-First: Jennifer 
Author-X-Name-Last: Kunz 
Author-Name: Stefan Linder 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Linder 
Title: Organizational Control and Work Effort -- Another Look at the Interplay of Rewards and Motivation 
Abstract:
  Providing rewards is a central element of organizational control systems.
 However, the literature is hardly helpful from a practitioner's
 perspective: it typically focuses on monetary rewards at the expense of
 non-monetary, affiliative rewards, and yet researchers disagree over the
 usefulness of the prior ones. Some scholars claim that monetary rewards
 merely replace task-related (&#x2018;intrinsic&#x2019;) motivation by
 reward-induced external pressure (&#x2018;extrinsic&#x2019; motivation).
 Empirical findings are mixed, partially given the different
 conceptualizations of intrinsic motivation. We shed more light on the
 impact of both monetary and non-monetary, affiliative rewards on the
 willingness to exert work effort and a potential detrimental interaction
 with different forms of intrinsic motivation. Our experimental results
 suggest that monetary and affiliative rewards have different effects:
 affiliative rewards clearly have beneficial effects, whereas the picture
 for monetary rewards is more nuanced than typically assumed in literature. 
Journal: European Accounting Review 
Pages: 591-621 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 3 
X-DOI: 10.1080/09638180.2012.684498 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.684498 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:591-621




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Keusch 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Keusch 
Author-Name: Laury   H.H. Bollen 
Author-X-Name-First: Laury   H.H. 
Author-X-Name-Last: Bollen 
Author-Name: Harold   F.D. Hassink 
Author-X-Name-First: Harold   F.D. 
Author-X-Name-Last: Hassink 
Title: Self-serving Bias in Annual Report Narratives: An Empirical Analysis of the Impact of Economic Crises 
Abstract:
  Consistently, management's explanations of corporate performance in
 accounting narratives have been found to suffer from self-serving bias.
 Yet there is no unequivocal evidence as to whether this bias is the
 product of conscious efforts to manage the impressions of the audience or
 the result of unintentional cognitive biases. The present study
 contributes to this discussion by comparing the narratives of the letters
 addressed to shareholders of Europe's most highly-capitalized companies in
 crisis and non-crisis settings. We find that a crisis situation leads to
 more extensive use of self-serving bias as adverse external economic
 conditions are used by managers to present themselves in the best possible
 light. Given that the letters to shareholders are widely used for capital
 allocation decisions and considering the evidence that intentional
 self-serving behavior can be successful, our results imply that investors
 need to be alert to misleading explanations of performance, particularly
 during external crises. The International Accounting Standards Board
 (IASB) has formulated a practice statement proposing non-mandatory
 guidance on the management commentary that accompanies financial
 statements. Our results suggest that the quality of narrative information
 in annual reports is unlikely to be augmented by guidelines that encourage
 the discussion of corporate performance through the eyes of management. 
Journal: European Accounting Review 
Pages: 623-648 
Issue: 3 
Volume: 21 
Year: 2012 
Month: 11 
X-DOI: 10.1080/09638180.2011.641729 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.641729 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:3:p:623-648




Template-Type: ReDIF-Article 1.0
Author-Name: Bego&#xF1;a Giner 
Author-X-Name-First: Bego&#xF1;a 
Author-X-Name-Last: Giner 
Author-Name: Miguel Arce 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Arce 
Title: Lobbying on Accounting Standards: Evidence from IFRS 2 on Share-Based Payments 
Abstract:
  Lobbying is an essential part of the International Accounting Standards
 Board (IASB) standard-setting process. There is still much to learn,
 however, about key aspects of the roles played and arguments employed by
 various constituents when lobbying practices do occur. This paper focuses
 on the regulation of share-based payments. As these transactions were
 under-regulated before International Financial Reporting Standard (IFRS)
 2, we expect that the strong debate that occurred during the 1990s
 resulted in conflicting opinions when this standard was under discussion.
 To analyse lobbying behaviour and assess its influence on the IASB's
 decision-making, we conducted a content analysis of 539 letters addressing
 the documents issued by the G4+1 and the IASB preceding IFRS 2. Consistent
 with the rational-choice model, our analysis of lobbying activity shows
 that preparers constituted the most active group, particularly when the
 IASB started the project, whereas participation of standard-setters
 increased at the end, which is more consistent with institutional theory.
 A common strategy was to provide arguments merely on points of
 disagreement. Preparers and consultants constituted the only groups using
 economic-consequences arguments to disagree, but later enlisted conceptual
 arguments as well. The IASB considered only conceptual arguments, and no
 interested party had a dominant influence. 
Journal: European Accounting Review 
Pages: 655-691 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638180.2012.701796 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.701796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:4:p:655-691




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Jorissen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Jorissen 
Author-Name: Nadine Lybaert 
Author-X-Name-First: Nadine 
Author-X-Name-Last: Lybaert 
Author-Name: Raf Orens 
Author-X-Name-First: Raf 
Author-X-Name-Last: Orens 
Author-Name: Leo Van Der Tas 
Author-X-Name-First: Leo 
Author-X-Name-Last: Van Der Tas 
Title: Formal Participation in the IASB's Due Process of Standard Setting: A Multi-issue/Multi-period Analysis 
Abstract:
  This paper sets out to enquire about the nature of constituents'
 participation in the IASB's due process in terms of representation
 (constituents' diversity and characteristics) and drivers to participate.
 We choose to adopt a multi-issue/multi-period approach to investigate
 constituents' formal participation. An analysis of comment letters sent
 directly to the IASB over the period 2002--2006, reveals that preparers
 sent most letters followed by the accounting profession and standard
 setters. With regard to timing, we find that preparers concentrate their
 participation efforts at a later stage in the process compared to the
 other constituents, who react earlier. Formal indirect participation in
 the IASB's due process by submitting comment letters to EFRAG is
 infrequently used by European constituents. In those cases where
 constituents exert influence to both IASB and EFRAG, they often use
 exactly the same comment letter. Concentrating on the drivers to
 participate, the data reveal that preparers, accountants and standard
 setters react significantly more when proposals have a major impact on the
 accounting numbers of a company. Users, stock exchanges and their
 supervisory authorities write significantly more comment letters when
 disclosure issues are at stake. Finally, participating preparers in the
 IASB's due process are larger and more profitable than non-participating
 preparers. 
Journal: European Accounting Review 
Pages: 693-729 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638180.2010.522775 
File-URL: http://hdl.handle.net/10.1080/09638180.2010.522775 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:21:y:2012:i:4:p:693-729




Template-Type: ReDIF-Article 1.0
Author-Name: Mikko Zerni 
Author-X-Name-First: Mikko 
Author-X-Name-Last: Zerni 
Author-Name: Elina Haapam&#xE4;ki 
Author-X-Name-First: Elina 
Author-X-Name-Last: Haapam&#xE4;ki 
Author-Name: Tuukka J&#xE4;rvinen 
Author-X-Name-First: Tuukka 
Author-X-Name-Last: J&#xE4;rvinen 
Author-Name: Lasse Niemi 
Author-X-Name-First: Lasse 
Author-X-Name-Last: Niemi 
Title: Do Joint Audits Improve Audit Quality? Evidence from Voluntary Joint Audits 
Abstract:
  This study examines whether the decision to voluntarily (i.e. without a
 statutory obligation) employ two audit firms to conduct a joint audit is
 related to audit quality. We use separate samples and empirical designs
 for public and privately held companies in Sweden, where a sufficient
 number of companies have a joint audit on a voluntary basis. Our empirical
 findings suggest that companies opting to employ joint audits have a
 higher degree of earnings conservatism, lower abnormal accruals, better
 credit ratings and lower perceived risk of becoming insolvent within the
 next year than other firms. These findings are robust to the use of a
 propensity score matching technique to control for the differences in
 client characteristics between firms that employ joint audits and those
 that use single Big 4 auditors (i.e. auditor self-selection). We also find
 evidence that the choice of a joint audit is associated with substantial
 increases in the fees paid by the client firm, suggesting a higher
 perceived level of quality. Collectively, our analyses support the view
 that voluntary joint audits are positively associated with audit quality
 in a relatively low litigious setting both for public and private firms. 
Journal: European Accounting Review 
Pages: 731-765 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638180.2012.678599 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.678599 
File-Format: text/html
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Handle: RePEc:taf:euract:v:21:y:2012:i:4:p:731-765




Template-Type: ReDIF-Article 1.0
Author-Name: Lasse Niemi 
Author-X-Name-First: Lasse 
Author-X-Name-Last: Niemi 
Author-Name: Stefan Sundgren 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Sundgren 
Title: Are Modified Audit Opinions Related to the Availability of Credit? Evidence from Finnish SMEs 
Abstract:
  We study the association between credit availability and modified audit
 opinions using a sample of more than 50,000 observations for small- and
 medium-sized companies. Studies in finance suggest that companies use
 trade-credit as a source of financing when institutional debt is not
 available (e.g. Petersen and Rajan, 1994; Danielsson and Scott, 2004).
 Building on these studies, we study whether modified audit opinions are
 associated with an increased use of trade credit relative to bank debt. We
 find no association between modified audit opinions and our measure of
 credit rationing. Our archival evidence focusing on SMEs is contrary to
 much of the earlier research finding that modified audit opinions provide
 incremental information for lenders. Our study adds to the scarce
 literature on the role of audit reports as a source of information in SME
 finance. 
Journal: European Accounting Review 
Pages: 767-796 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638180.2012.671465 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.671465 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Koch 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Koch 
Author-Name: Martin Weber 
Author-X-Name-First: Martin 
Author-X-Name-Last: Weber 
Author-Name: Jens W&#xFC;stemann 
Author-X-Name-First: Jens 
Author-X-Name-Last: W&#xFC;stemann 
Title: Can Auditors be Independent? Experimental Evidence on the Effects of Client Type 
Abstract:
  Recent regulatory initiatives stress that an independent oversight board,
 rather than the management board, should assume the role of auditors'
 client. In an experiment, we test whether the type of client affects
 auditors' independence. Unique features of the German institutional
 setting enable us to realistically vary the type of auditors' client as
 our treatment variable: we portray the client either as the management
 preferring aggressive accounting or the oversight board preferring
 conservative accounting. We measure auditors' perceived client retention
 incentives and accountability pressure in a post-experiment questionnaire
 to capture potential threats to independence. We find that the type of
 auditors' client affects auditors' behaviour contingent on the degree of
 the perceived threats to independence. Our findings imply that both client
 retention incentives and accountability pressure represent distinctive
 threats to auditors' independence and that the effectiveness of an
 oversight board in enhancing auditors' independence depends on the
 underlying threat. 
Journal: European Accounting Review 
Pages: 797-823 
Issue: 4 
Volume: 21 
Year: 2012 
Month: 12 
X-DOI: 10.1080/09638180.2011.629416 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.629416 
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Handle: RePEc:taf:euract:v:21:y:2012:i:4:p:797-823




Template-Type: ReDIF-Article 1.0
Author-Name: Ulf Br&?ggemann 
Author-X-Name-First: Ulf 
Author-X-Name-Last: Br?ggemann 
Author-Name: J?rg-Markus Hitz 
Author-X-Name-First: J?rg-Markus 
Author-X-Name-Last: Hitz 
Author-Name: Thorsten Sellhorn 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Sellhorn 
Title: Intended and Unintended Consequences of Mandatory IFRS Adoption: A Review of Extant Evidence and Suggestions for Future Research 
Abstract:
  This paper discusses empirical evidence on the economic consequences of
 mandatory International Financial Reporting Standards (IFRS) adoption in
 the European Union (EU), and provides suggestions on how future research
 can add to our understanding of these effects. Based on the stated
 objectives of the EU's so-called &#x2018;IAS Regulation&#x2019;, we
 distinguish between intended and unintended consequences of mandatory IFRS
 adoption. Empirical research on the intended consequences generally fails
 to document an increase in the comparability or transparency of financial
 statements. In contrast, there is rich and almost unanimous evidence of
 positive effects on capital markets and at the macroeconomic level. We
 argue that certain research design issues are likely to contribute to this
 apparent mismatch in findings. The literature investigating unintended
 consequences of mandatory IFRS adoption is still in its infancy. However,
 extant empirical evidence and insights from non-IFRS settings suggest that
 mandatory IFRS adoption has the potential to materially affect contractual
 outcomes. We conclude that both the intended and the unintended
 consequences deserve further scrutiny to assess the costs and benefits of
 mandatory IFRS adoption, and we provide specific guidance for future
 research. 
Journal: European Accounting Review 
Pages: 1-37 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 5 
X-DOI: 10.1080/09638180.2012.718487 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.718487 
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Handle: RePEc:taf:euract:v:22:y:2013:i:1:p:1-37




Template-Type: ReDIF-Article 1.0
Author-Name: Arnt Verriest 
Author-X-Name-First: Arnt 
Author-X-Name-Last: Verriest 
Author-Name: Ann Gaeremynck 
Author-X-Name-First: Ann 
Author-X-Name-Last: Gaeremynck 
Author-Name: Daniel   B. Thornton 
Author-X-Name-First: Daniel   B. 
Author-X-Name-Last: Thornton 
Title: The Impact of Corporate Governance on IFRS Adoption Choices 
Abstract:
  We investigate the association between corporate governance strength and
 EU listed firms' choices with respect to International Financial Reporting
 Standards (IFRS) adoption in 2005. We measure governance strength by
 aggregating variables such as board independence, board functioning and
 audit committee effectiveness. The firms exhibit heterogeneity in both
 compliance and disclosure quality; some firms do not even meet the minimum
 disclosure requirements. Regression results show that stronger governance
 firms disclose more information, comply more fully and use IAS 39's
 carve-out provision less opportunistically. These findings are germane to
 accountants, managers and regulators in countries soon to adopt IFRS. 
Journal: European Accounting Review 
Pages: 39-77 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 5 
X-DOI: 10.1080/09638180.2011.644699 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.644699 
File-Format: text/html
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Handle: RePEc:taf:euract:v:22:y:2013:i:1:p:39-77




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Glaum 
Author-X-Name-First: Martin 
Author-X-Name-Last: Glaum 
Author-Name: J&#xF6;rg Baetge 
Author-X-Name-First: J&#xF6;rg 
Author-X-Name-Last: Baetge 
Author-Name: Alexander Grothe 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Grothe 
Author-Name: Tatjana Oberd&#xF6;rster 
Author-X-Name-First: Tatjana 
Author-X-Name-Last: Oberd&#xF6;rster 
Title: Introduction of International Accounting Standards, Disclosure Quality and Accuracy of Analysts' Earnings Forecasts 
Abstract:
  We examine whether the introduction of international accounting standards
 by German companies has improved the accuracy of analysts' forecasts, and
 what role changes in the quality of disclosures have played in this
 process. We develop a structural equation model that allows us to separate
 the effects of changes in disclosure quality from other effects of the
 introduction of international accounting standards on forecast errors. Our
 sample comprises 1,908 firm-years covering the period from 1997 to 2005.
 We measure disclosure quality with data from a yearly annual-report
 competition. We find that the introduction of international accounting
 standards has been associated with a significant improvement in forecast
 accuracy. Increases in the quality of companies' disclosures appear to
 have contributed to this improvement. However, the disclosure effect,
 while significant, explains only a small portion of the overall
 improvement in forecast accuracy. Further analyses show that differences
 in disclosure quality are more relevant for German GAAP companies than for
 IFRS/US GAAP companies. Moreover, only the quality of notes to companies'
 financial statements appears to matter to analysts; the quality of
 management reports appears to make no difference. Our results are robust
 to a variety of tests concerning the sample composition, the
 operationalisation of variables and the estimation procedure. 
Journal: European Accounting Review 
Pages: 79-116 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 5 
X-DOI: 10.1080/09638180.2011.558301 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.558301 
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Handle: RePEc:taf:euract:v:22:y:2013:i:1:p:79-116




Template-Type: ReDIF-Article 1.0
Author-Name: Urska Kosi 
Author-X-Name-First: Urska 
Author-X-Name-Last: Kosi 
Author-Name: Aljosa Valentincic 
Author-X-Name-First: Aljosa 
Author-X-Name-Last: Valentincic 
Title: Write-offs and Profitability in Private Firms: Disentangling the Impact of Tax-Minimisation Incentives 
Abstract:
  Private firms are likely to use the financial reporting process more for
 other objectives, such as tax savings, than for communicating performance.
 However, observing firms choosing accounting policies for tax-minimisation
 purposes is not straightforward due to (i) tax and non-tax costs of
 reporting lower income (ii) accounting policies that result in lower
 reported income and no tax savings but generate non-tax benefits (iii)
 preparers' multiple incentives and (iv) econometric issues. We observe a
 large sample of 20,505 private firms writing off assets in two separate
 regimes, one that generates tax savings and one that does not. Firms
 significantly decrease, but continue to use, write-offs after the adverse
 change in tax treatment of write-offs. The exogenous tax change should not
 affect other reporting incentives. This allows us to disentangle the
 tax-minimisation incentive from other (un-observable) incentives,
 including debt contracting, dividends and employee relations that
 contribute to the observed anomalous positive relationship between
 write-offs and profitability. We show that for private firms (i) obtaining
 tax savings is important overall (ii) non-tax costs and benefits are
 probably also important and (iii) earnings informativeness for future cash
 flows increases after the adverse tax legislation change. 
Journal: European Accounting Review 
Pages: 117-150 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 5 
X-DOI: 10.1080/09638180.2012.661938 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.661938 
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Handle: RePEc:taf:euract:v:22:y:2013:i:1:p:117-150




Template-Type: ReDIF-Article 1.0
Author-Name: Moritz Bassemir 
Author-X-Name-First: Moritz 
Author-X-Name-Last: Bassemir 
Author-Name: Zoltan Novotny-Farkas 
Author-X-Name-First: Zoltan 
Author-X-Name-Last: Novotny-Farkas 
Author-Name: Julian Pachta 
Author-X-Name-First: Julian 
Author-X-Name-Last: Pachta 
Title: The Effect of Conference Calls on Analysts' Forecasts -- German Evidence 
Abstract:
  This study examines whether conference calls provide additional
 information to analysts. For a large sample of conference calls, hosted by
 German firms between 2004 and 2007, our results show that conference calls
 improve analysts' ability to forecast future earnings accurately. This
 suggests that additional information is released during conference calls.
 The reduction in forecast error is economically significant and larger in
 magnitude when compared to results for the US (Bowen <italic>et
 al</italic>., 2002). These findings are consistent with the notion that
 committing to additional disclosures is likely to yield greater effects in
 a less stringent disclosure system (Verrecchia, 2001). Since the majority
 of our sample firms conduct conference calls as closed calls, the evidence
 of this paper suggests that conference calls may contribute to an
 information gap between call participants and non-invited parties. Our
 findings should be of substantial interest to European regulators seeking
 to level the informational playing field for all investors. 
Journal: European Accounting Review 
Pages: 151-183 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 5 
X-DOI: 10.1080/09638180.2011.640454 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.640454 
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Handle: RePEc:taf:euract:v:22:y:2013:i:1:p:151-183




Template-Type: ReDIF-Article 1.0
Author-Name: Markus   C. Arnold 
Author-X-Name-First: Markus   C. 
Author-X-Name-Last: Arnold 
Author-Name: Dominik Schreiber 
Author-X-Name-First: Dominik 
Author-X-Name-Last: Schreiber 
Title: Audits, Reputation, and Repeated Interaction in a Capital Budgeting Setting 
Abstract:
  This experimental study investigates the use of audits as a control
 instrument in capital budgeting processes and factors that contribute to
 audit efficiency (or inefficiency) in a repeated relationship. We
 disentangle reputational aspects of superiors and subordinates from an
 increased social content in repeated relationships. In settings where
 subjects face new counterparts every round, we find that reputational
 aspects strongly affect the superiors' and subordinates' behavior. This
 leads to a decrease in slack and an increase in the superior payoff.
 However, in a repeated relationship with an increased level of social
 content, these benefits are no longer present. In fact, the subordinates'
 ability to retaliate against their superior for prior punishments in the
 repeated setting by reporting more slack in later rounds has negative
 effects on the use of audits and decreases audit efficiency. These
 findings imply that, in repeated relationships, social factors play an
 important role and might impair the disciplining effects of audits. 
Journal: European Accounting Review 
Pages: 185-213 
Issue: 1 
Volume: 22 
Year: 2013 
Month: 5 
X-DOI: 10.1080/09638180.2011.631734 
File-URL: http://hdl.handle.net/10.1080/09638180.2011.631734 
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Handle: RePEc:taf:euract:v:22:y:2013:i:1:p:185-213




Template-Type: ReDIF-Article 1.0
Author-Name: Sudipta Basu 
Author-X-Name-First: Sudipta 
Author-X-Name-Last: Basu 
Author-Name: Truong Xuan Duong 
Author-X-Name-First: Truong Xuan 
Author-X-Name-Last: Duong 
Author-Name: Stanimir Markov 
Author-X-Name-First: Stanimir 
Author-X-Name-Last: Markov 
Author-Name: Eng-Joo Tan 
Author-X-Name-First: Eng-Joo 
Author-X-Name-Last: Tan 
Title: How Important are Earnings Announcements as an Information Source? 
Abstract:
	      In a competitive information market, a single information
 source can only dominate other sources individually, not collectively. We
 explore whether earnings announcements constitute such a dominant source
 using Ball and Shivakumar's (2008) [How much new information is there in
 earnings?, <italic>Journal of Accounting Research</italic>, 2008, 46(5),
 pp. 975--1016] <italic>R</italic>		  -super-2 metric: the
 proportion of the variation in annual returns explained by the four
 quarterly earnings announcement returns. We find that the earnings
 announcement days' <italic>R</italic>		      -super-2 is 11% --
 higher than the corresponding <italic>R</italic>		 -super-2
 of days with dividend announcements, management forecasts,
 preannouncements, and 10-K and 10-Q filings and their amendments, and
 comparable to that of the four days with the largest realised absolute
 returns in a year. Additional analysis reveals that earnings announcements
 convey extreme bad news as often as management forecasts and
 preannouncements; for any other type of news, earnings announcements are
 much more frequent. We conclude that earnings announcements are an
 important source of new information in the equity market.	    
Journal: European Accounting Review 
Pages: 221-256 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638180.2013.782820 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.782820 
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter O. Christensen 
Author-X-Name-First: Peter O. 
Author-X-Name-Last: Christensen 
Author-Name: Hans Frimor 
Author-X-Name-First: Hans 
Author-X-Name-Last: Frimor 
Author-Name: Florin Sabac 
Author-X-Name-First: Florin 
Author-X-Name-Last: Sabac 
Title: The Stewardship Role of Analyst Forecasts, and Discretionary Versus Non-discretionary Accruals 
Abstract:
	      We examine the interaction between discretionary and
 non-discretionary accruals in a stewardship setting. Contracting includes
 multiple rounds of renegotiation based on contractible accounting
 information and non-contractible but more timely non-accounting
 information. We show that accounting regulation aimed at increasing
 earnings quality from a valuation perspective (earnings persistence) may
 have a significant impact on how firms rationally respond in terms of
 allowing accrual discretion in order to alleviate the impact on the
 stewardship role of earnings. Increasing the precision of more timely
 non-accounting information (analyst earnings forecasts) increases the
 <italic>ex ante</italic> value of the firm and reduces costly earnings
 management. There is an optimal level of reversible non-discretionary
 accrual noise introduced through revenue recognition policies. Tight
 rules-based accounting regulation, as opposed to leaving firms more choice
 over non-discretionary accrual policies, may lead firms to rationally
 respond by inducing costly earnings management. More generally, regulating
 both earnings persistence and the tightness of admissible auditing
 policies may not result in less equilibrium earnings management.	   
Journal: European Accounting Review 
Pages: 257-296 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638180.2012.686590 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.686590 
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Handle: RePEc:taf:euract:v:22:y:2013:i:2:p:257-296




Template-Type: ReDIF-Article 1.0
Author-Name: F&#xe1;bio Frezatti  
Author-X-Name-First: F&#xe1;bio Frezatti 
Author-X-Name-Last:  
Author-Name: Di&#xf3;genes de Souza Bido 
Author-X-Name-First: Di&#xf3;genes 
Author-X-Name-Last: de Souza Bido 
Author-Name: Ana Paula Capuano Da Cruz 
Author-X-Name-First: Ana Paula Capuano 
Author-X-Name-Last: Da Cruz 
Author-Name: Marcelo Francini Gir&#xe3;o Barroso 
Author-X-Name-First: Marcelo Francini Gir&#xe3;o 
Author-X-Name-Last: Barroso 
Author-Name: Maria Jos&#xe9; de Camargo Machado 
Author-X-Name-First: Maria Jos&#xe9;
Author-X-Name-Last: de Camargo Machado 
Title: Investment Decisions on Long-term Assets: Integrating Strategic and Financial Perspectives 
Abstract:
	      This paper aimed to verify how companies formalise the
 decisions and control on long-term investments. In particular, an analysis
 of the published literature reveals a relevant gap between the strategic
 and financial perspectives in addressing this issue, and Agency Theory was
 proposed as a linking construct to bridge this gap. A survey was conducted
 among 82 companies, and the data were treated using the structural
 equation modelling technique. The results of this survey indicate that
 firms with intensive external funding use sophisticated capital budgeting
 methods more frequently when evaluating the profitability of their
 long-term investment proposals. As these methods require detailed
 information, these firms use additional appraisal mechanisms to conduct
 their investment analysis more frequently. Additional mechanisms are also
 used if the long-term investment is funded by external sources and
 perceived as a riskier investment. These deeply analysed long-term
 investment proposals often appear and are decided as a part of the
 strategic planning process instead of being strongly associated with the
 budgeting process. Finally, these long-term investments, which are funded
 externally, analysed using sophisticated methods and mechanisms and
 decided as a part of the strategic planning cycle, are more tightly
 controlled than other investments. These findings help to reduce the
 heuristics within the related literature.	    
Journal: European Accounting Review 
Pages: 297-336 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638180.2012.718672 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.718672 
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Handle: RePEc:taf:euract:v:22:y:2013:i:2:p:297-336




Template-Type: ReDIF-Article 1.0
Author-Name: Tobias Svanstr�m 
Author-X-Name-First: Tobias 
Author-X-Name-Last: Svanstr�m 
Title: Non-audit Services and Audit Quality: Evidence from Private Firms 
Abstract:
	      The purpose of this study is to examine the relationship
 between audit quality in private firms and the provision of non-audit
 services (NAS) -- an issue that has rarely been considered in prior
 research. The threats to auditor independence are different in private
 firms compared to public firms. The same is true of the opportunities to
 use the same knowledge for audit and for NAS. Therefore, the effect of the
 provision of NAS on audit quality is also likely to be different. In this
 study, audit quality is measured by discretionary accruals, as well as by
 managers' perceptions of the extent to which the audit improves accounting
 quality. The regression analysis is based on 420 surveyed private firms in
 Sweden and suggests that audit quality is positively associated with NAS
 in general and accounting services in particular. The findings indicate
 that the joint provision of audit and NAS do not necessarily result in
 impaired auditor independence, but rather support the existence of
 knowledge spillover between the services.	    
Journal: European Accounting Review 
Pages: 337-366 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638180.2012.706398 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.706398 
File-Format: text/html
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Handle: RePEc:taf:euract:v:22:y:2013:i:2:p:337-366




Template-Type: ReDIF-Article 1.0
Author-Name: Rainer Niemann 
Author-X-Name-First: Rainer 
Author-X-Name-Last: Niemann 
Author-Name: Caren Sureth 
Author-X-Name-First: Caren 
Author-X-Name-Last: Sureth 
Title: Sooner or Later? -- Paradoxical Investment Effects of Capital Gains Taxation under Simultaneous Investment and Abandonment Flexibility 
Abstract:
	      This paper analyzes the impact of capital gains taxation on
 investment timing decisions for risky investment projects with entry and
 exit flexibility under differential tax rates for ordinary income and
 capital gains. We investigate whether capital gains taxation influences
 immediate and delayed investments asymmetrically, given the optimal
 abandonment decision. If capital gains taxation induces a lock-in effect,
 this effect is anticipated in the investment timing decision. In contrast
 to prior research, our numerical simulations show that this lock-in effect
 of capital gains taxation can induce normal as well as paradoxical effects
 on investment timing under simultaneous entry and exit flexibility. A
 paradoxical timing effect, i.e., investment accelerated by capital gains
 taxation, especially emerges for high liquidation proceeds or, more
 conservative tax accounting, low interest rates, and low volatilities. In
 these cases, capital gains taxation reduces the value of the option to
 invest and hereby increases the propensity to invest immediately. As a
 second paradoxical tax effect, capital gains taxation may favor delayed
 real investment over financial investment. Facing these results, tax
 legislators should not use capital gains taxation as a short-term tax
 policy instrument to influence investors' timing decisions.	      
Journal: European Accounting Review 
Pages: 367-390 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638180.2012.682781 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.682781 
File-Format: text/html
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Handle: RePEc:taf:euract:v:22:y:2013:i:2:p:367-390




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Du 
Author-X-Name-First: Yan 
Author-X-Name-Last: Du 
Author-Name: Marc Deloof 
Author-X-Name-First: Marc 
Author-X-Name-Last: Deloof 
Author-Name: Ann Jorissen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Jorissen 
Title: Headquarters&#x2212;Subsidiary Interdependencies and the Design of Performance Evaluation and Reward Systems in Multinational Enterprises 
Abstract:
	      This study investigates the impact of
 headquarters--subsidiary interdependencies on performance evaluation and
 reward systems in multinational enterprises. Headquarters--subsidiary
 interdependencies refer to the extent to which headquarters and
 subsidiaries depend on each other to accomplish their tasks. When
 headquarters--subsidiary interdependencies are present, it becomes more
 difficult to reward the performance of subsidiary managers because these
 interdependencies induce noise on subsidiary-level accounting performance
 measures, while at the same time high levels of goal alignment between
 headquarters and subsidiary managers are required. Based on survey data
 from 82 foreign subsidiaries operating in Belgium with headquarters in 14
 different countries, our partial least squares path modelling results show
 that as headquarters--subsidiary interdependencies increase, headquarters
 use more participative performance evaluation and consider more the
 effects of uncontrollable factors on subsidiaries' performance when
 rewarding subsidiary managers. More importantly, while prior research
 suggests that interdependencies induce noise on unit-level accounting
 performance measures, our results indicate that participative performance
 evaluation may mitigate the noise so that headquarters still rely on
 subsidiary formula-based compensation using accounting measures to reward
 subsidiary managers.	       
Journal: European Accounting Review 
Pages: 391-424 
Issue: 2 
Volume: 22 
Year: 2013 
Month: 6 
X-DOI: 10.1080/09638180.2012.739824 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.739824 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:22:y:2013:i:2:p:391-424




Template-Type: ReDIF-Article 1.0
Author-Name: David Veenman 
Author-X-Name-First: David 
Author-X-Name-Last: Veenman 
Title: Do Managers Trade on Public or Private Information? Evidence from Fundamental Valuations 
Abstract:
	      Using accounting-based (residual income) valuations, this
 study examines the extent to which abnormal returns after insider share
 trades are explained by private information versus mispricing of public
 information. For a sample of insider trades in the Netherlands
 (1999-2008), I find that managers' share purchase decisions are associated
 with positive future abnormal returns as well as equity undervaluation.
 Even though undervaluation results in predictable price increases,
 positive abnormal returns following purchases persist after controlling
 for fundamental valuations. Thus, this study provides evidence on the
 sources of managers' personal trading gains and suggests that positive
 abnormal returns after insider share purchases reflect both private
 information and managers' responses to market mispricing of public
 information.	       
Journal: European Accounting Review 
Pages: 427-465 
Issue: 3 
Volume: 22 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638180.2012.683664 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.683664 
File-Format: text/html
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Handle: RePEc:taf:euract:v:22:y:2012:i:3:p:427-465




Template-Type: ReDIF-Article 1.0
Author-Name: Soenke Sievers 
Author-X-Name-First: Soenke 
Author-X-Name-Last: Sievers 
Author-Name: Christopher F. Mokwa 
Author-X-Name-First: Christopher F. 
Author-X-Name-Last: Mokwa 
Author-Name: Georg Keienburg 
Author-X-Name-First: Georg 
Author-X-Name-Last: Keienburg 
Title: The Relevance of Financial versus Non-Financial Information for the Valuation of Venture Capital-Backed Firms 
Abstract:
	      This study examines the relevance of financial and
 non-financial information for the valuation of venture capital (VC)
 investments. Based on a hand-collected data set on venture-backed
 start-ups in Germany, we investigate the internal due diligence documents
 of over 200 investment rounds. We document that balance sheet and income
 statement items capture as much economic content as verifiable
 non-financial information (e.g. team experience or the number of patents)
 while controlling for several deal characteristics (e.g. industry,
 investment round, or yearly VC fund inflows). In addition, we show that
 valuations based on accounting and non-accounting information yield a
 level of valuation accuracy that is comparable to that of publicly traded
 firms. Further analyses show that the industry-specific total asset
 multiples outperform the popular revenue multiples but lead to
 significantly less accurate results than those obtained from the more
 comprehensive valuation models. Overall, our findings might inform
 researchers and standard-setters of the usefulness of accounting
 information for investment companies and provide additional evidence to
 gauge the overall valuation accuracy in VC settings.	       
Journal: European Accounting Review 
Pages: 467-511 
Issue: 3 
Volume: 22 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638180.2012.741051 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.741051 
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Template-Type: ReDIF-Article 1.0
Author-Name: Radhika Lunawat 
Author-X-Name-First: Radhika 
Author-X-Name-Last: Lunawat 
Title: The Role of Information in Building Reputation in an Investment/Trust Game 
Abstract:
	      This article analyses the role of information in building
 reputation in an investment/trust game. The model allows for information
 asymmetry in a finitely repeated sender-receiver game and solves for
 sequential equilibrium to show that if there are some trustworthy managers
 who always disclose their private information and choose to return a fair
 proportion of the firm's income as dividend to the investor, then a
 rational manager will mimic such behaviour in an attempt to earn a
 reputation for being trustworthy. The rational manager will mimic with
 probability 1 in the early periods of the game. The investor, too, will
 invest with probability 1 in these periods. However, in the later periods,
 the rational manager will mimic with a certain probability strictly less
 than 1. The probability will be such that it will make the investor
 indifferent between investing and not investing, and he, in turn, will
 invest with a probability (strictly less than 1) that will make the
 rational manager indifferent between mimicking and not mimicking; that is,
 the game will begin with pure-strategy play but will switch to
 mixed-strategy play. There is one exception, though: when the investor's
 ex ante beliefs about the manager's trustworthiness are exceptionally
 high, the game will continue in a pure strategy, and the switch to
 mixed-strategy play will never occur. Identical results obtain if the
 manager's choice of whether to share his private information with the
 investor is replaced by exogenously imposed information sharing.	   
Journal: European Accounting Review 
Pages: 513-532 
Issue: 3 
Volume: 22 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638180.2012.748256 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.748256 
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Handle: RePEc:taf:euract:v:22:y:2012:i:3:p:513-532




Template-Type: ReDIF-Article 1.0
Author-Name: Erik Peek 
Author-X-Name-First: Erik 
Author-X-Name-Last: Peek 
Author-Name: Roger Meuwissen 
Author-X-Name-First: Roger 
Author-X-Name-Last: Meuwissen 
Author-Name: Frank Moers 
Author-X-Name-First: Frank 
Author-X-Name-Last: Moers 
Author-Name: Ann Vanstraelen 
Author-X-Name-First: Ann 
Author-X-Name-Last: Vanstraelen 
Title: Comparing Abnormal Accruals Estimates across Samples: An International Test 
Abstract:
	      This study examines whether accruals models' performance, in
 terms of predictive accuracy and power to detect earnings management,
 varies across strongly heterogeneous samples, such as different countries.
 We analyse the performance of two accruals estimation models, that is, the
 Modified Jones model and the Dechow-Dichev model. Using accounting data
 from nine countries for the period 1989-2009, we find that the models
 exhibit considerable cross-country performance variation and, more
 importantly, that this variation is systematic. We empirically establish
 that the international variation in sales growth persistence, accounting
 practices, and sample size explains a significant proportion of the
 cross-country performance variation, highlighting a potential inference
 problem in across-sample comparisons.		
Journal: European Accounting Review 
Pages: 533-572 
Issue: 3 
Volume: 22 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638180.2012.746518 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.746518 
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Template-Type: ReDIF-Article 1.0
Author-Name: Monika Causholli 
Author-X-Name-First: Monika 
Author-X-Name-Last: Causholli 
Author-Name: W. Robert Knechel 
Author-X-Name-First: W. Robert 
Author-X-Name-Last: Knechel 
Author-Name: Haijin Lin 
Author-X-Name-First: Haijin 
Author-X-Name-Last: Lin 
Author-Name: David E. M. Sappington 
Author-X-Name-First: David E. M. 
Author-X-Name-Last: Sappington 
Title: Competitive Procurement of Auditing Services with Limited Information 
Abstract:
	      We analyse the auditing procurement process when the client
 is initially uncertain about her/her auditing needs and when she/he cannot
 discern the level of assurance provided by the auditor. The client's
 limited information can lead to under-auditing and substantial rent for
 auditors, despite the presence of <italic>ex ante</italic> competition
 among auditors. The information asymmetry can also make it difficult for
 new auditors with superior auditing technologies to displace incumbent
 auditors. In addition, the asymmetry can limit the incentives of auditors
 to improve their technologies. 	 
Journal: European Accounting Review 
Pages: 573-605 
Issue: 3 
Volume: 22 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638180.2012.739408 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.739408 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mai Dao 
Author-X-Name-First: Mai 
Author-X-Name-Last: Dao 
Author-Name: Hua-Wei Huang 
Author-X-Name-First: Hua-Wei 
Author-X-Name-Last: Huang 
Author-Name: Jishan Zhu 
Author-X-Name-First: Jishan 
Author-X-Name-Last: Zhu 
Title: The Effects of Audit Committee Members' Age and Additional Directorships on the Cost of Equity Capital in the USA 
Abstract:
	      In this paper, we examine the associations between the cost
 of equity capital and two audit committee (AC) characteristics: (1)
 average AC members' age and (2) average number of AC members' other
 directorships. This study is motivated by the recent emphasis on the
 important role of ACs in overseeing financial reporting and audit
 processes, as well as the recognition of the critical role of capital
 costs in firms' operational efficiency and profitability. The empirical
 results show that the cost of equity capital is lower in US firms with
 higher average AC members' age. We do not find any evidence that the
 average number of AC members' other directorships is associated with the
 cost of equity capital. We also find that age could be another proxy for
 AC members' experience. Our findings provide evidence that supports the
 call of the US Securities and Exchange Commission for greater board
 diversity (including age). Our study not only demonstrates the important
 role of ACs in corporate governance, but also enriches the literature by
 examining the two AC characteristics that are rarely mentioned in prior
 studies.	   
Journal: European Accounting Review 
Pages: 607-643 
Issue: 3 
Volume: 22 
Year: 2012 
Month: 9 
X-DOI: 10.1080/09638180.2012.739823 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.739823 
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Template-Type: ReDIF-Article 1.0
Author-Name: Eddy Cardinaels 
Author-X-Name-First: Eddy 
Author-X-Name-Last: Cardinaels 
Author-Name: Naomi Soderstrom 
Author-X-Name-First: Naomi 
Author-X-Name-Last: Soderstrom 
Title: Managing in a Complex World: Accounting and Governance Choices in Hospitals 
Abstract:
 <title>Abstract</title>The healthcare sector has experienced significant
 challenges stemming from market demands, competition, and regulation,
 which pressures hospitals to change their operations and decision-making.
 In contrast to mainstream business enterprises, decisions to change
 accounting systems or to improve hospital governance occur in a complex
 institutional environment with multiple stakeholders. The hospital setting
 thus provides both opportunities and challenges for researchers. This
 overview paper uses recent studies in the field to illustrate how hospital
 choices are driven by the institutional environment in which hospitals
 operate. Incorporating the richness of this institutional environment into
 research may help researchers to make better predictions about: 1) why
 certain accounting systems or types of governance models are implemented
 or maintained; and 2) why certain intended outcomes are not always
 realised. The paper also sets out a research agenda that further
 capitalises on the impact of multiple institutional stakeholders within
 hospital decision-making structures. This area of research is relevant to
 academics, policy-makers, and the healthcare profession at large. It can
 offer valuable insights on the types of governance structures and
 accounting systems that are likely to be more effective and can help shape
 healthcare policy.
Journal: European Accounting Review 
Pages: 647-684 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638180.2013.842493 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.842493 
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Handle: RePEc:taf:euract:v:22:y:2013:i:4:p:647-684




Template-Type: ReDIF-Article 1.0
Author-Name: Eli Amir 
Author-X-Name-First: Eli 
Author-X-Name-Last: Amir 
Author-Name: Eti Einhorn 
Author-X-Name-First: Eti 
Author-X-Name-Last: Einhorn 
Author-Name: Itay Kama 
Author-X-Name-First: Itay 
Author-X-Name-Last: Kama 
Title: Extracting Sustainable Earnings from Profit Margins 
Abstract:
 Revenues and expenses are fundamentally proportional to one another, but
 are likely to be disproportionally affected by transitory items or
 economic shocks. We build on this observation and propose a new measure of
 sustainable earnings based on deviations from normal profit margins. While
 some other sustainable earnings metrics attempt to identify transitory
 components on a line-by-line basis, our measure, referred to as the
 intensity of core earnings (ICE), uses ratio analysis to extract the
 transitory portion of earnings from all line items. We find that the ICE,
 as measured here, is positively associated with earnings persistence,
 better earnings predictability, and stronger market reaction to unexpected
 earnings. We also find that our measure is positively associated with
 post-earnings announcement excess stock returns. Comparing our measure
 with an accrual-based measure of earnings quality, we find that, in
 general, the two metrics provide distinct incremental information relative
 to one another and in some instances our measure is better than an
 accrual-based measure in assessing earnings quality.
Journal: European Accounting Review 
Pages: 685-718 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638180.2012.749067 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.749067 
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Handle: RePEc:taf:euract:v:22:y:2013:i:4:p:685-718




Template-Type: ReDIF-Article 1.0
Author-Name: Ling Chu 
Author-X-Name-First: Ling 
Author-X-Name-Last: Chu 
Author-Name: Robert Mathieu 
Author-X-Name-First: Robert 
Author-X-Name-Last: Mathieu 
Author-Name: Chima Mbagwu 
Author-X-Name-First: Chima 
Author-X-Name-Last: Mbagwu 
Title: Audit Quality and Banks' Assessment of Disclosed Accounting Information 
Abstract:
 The objective of this paper is to investigate whether banks view the
 information on the off-balance sheet liabilities (specifically, operating
 leases) disclosed in the notes to the financial statements as more
 reliable when it is audited by brand name auditors (i.e. a Big 4 audit
 firm). To the extent that banks assess a higher likelihood that the
 financial statements could have material misstatements if it is not
 audited by a Big 4 audit firm, they should charge a higher interest rate
 on private loans. Our findings suggest that the impact of operating leases
 on the interest rate is higher if the firm is audited by non-Big 4 audit
 firms.
Journal: European Accounting Review 
Pages: 719-738 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638180.2013.799740 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.799740 
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Template-Type: ReDIF-Article 1.0
Author-Name: Alnoor Bhimani 
Author-X-Name-First: Alnoor 
Author-X-Name-Last: Bhimani 
Author-Name: Mohamed Azzim Gulamhussen 
Author-X-Name-First: Mohamed Azzim 
Author-X-Name-Last: Gulamhussen 
Author-Name: Samuel da Rocha Lopes 
Author-X-Name-First: Samuel da Rocha 
Author-X-Name-Last: Lopes 
Title: The Role of Financial, Macroeconomic, and Non-financial Information in Bank Loan Default Timing Prediction 
Abstract:
 We assess the use of bank loan information in predicting the timing to
 default. We use unique data on defaults in small and medium enterprises
 maintained by the Central Bank of Portugal which includes financial
 accounting and macroeconomic indicators, as well as non-financial
 information. The findings are indicative of the incremental predictive
 ability of non-financial information over and above macroeconomic and
 financial accounting information in the baseline, industry, and in- and
 out-of-sample models. Specifically, total credit secured by firms is, as
 expected, negatively and significantly related to default. Gross domestic
 product is negatively and significantly related to default, and benchmark
 market rate is positively and significantly associated with default. The
 findings also reveal that firms which are operated by partners, which have
 stronger financial support from partners, and which possess operational
 assets exhibit lower hazards of default. The study indicates that
 non-financial information and macroeconomic indicators assessed alongside
 financial accounting data can significantly improve the forecasting
 performance of default models.
Journal: European Accounting Review 
Pages: 739-763 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638180.2013.770967 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.770967 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Tiina Henttu-Aho 
Author-X-Name-First: Tiina 
Author-X-Name-Last: Henttu-Aho 
Author-Name: Janne J�rvinen 
Author-X-Name-First: Janne 
Author-X-Name-Last: J�rvinen 
Title: A Field Study of the Emerging Practice of Beyond Budgeting in Industrial Companies: An Institutional Perspective 
Abstract:
 The accounting literature differentiates between key functions of
 budgeting, such as planning, control, and evaluation, and mostly assumes
 that firms carry out an annual budgeting exercise. The purpose of this
 paper is to explore how an institutionalised practice, such as budgeting,
 changes and to examine the implications of such change for the functions
 of budgeting. We conduct a field study of five industrial companies that
 recently either abandoned their annual budgeting system or radically
 simplified it. Our findings suggest that although new management
 accounting tools replace the budgeting system, the planning, control, and
 evaluation functions remain. We observe two approaches for the emerging
 practice of Beyond Budgeting. In the first approach, firms differentiate
 between target setting and forecasting. This differentiation appears to be
 a driver for budget abandonment. In the second approach, target setting
 and forecasting remain interlinked and many characteristics of traditional
 annual budgeting remain, albeit in a simplified form.
Journal: European Accounting Review 
Pages: 765-785 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638180.2012.758596 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.758596 
File-Format: text/html
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Handle: RePEc:taf:euract:v:22:y:2013:i:4:p:765-785




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Wielenberg 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Wielenberg 
Title: Investment and Liquidation Incentives under Solvency Tests and Legal Capital 
Abstract:
 The European Union (EU) has been debating for several years whether to
 change from the legal capital regime as regulated under the Second Company
 Law Directive to a solvency test regime as applied in the USA, for
 example. Based on an analysis of direct compliance costs and capital
 maintenance systems in non-EU countries, the EU decided not to change the
 regulatory regime in the short term. This paper focuses on the indirect
 costs of these two regimes. The paper develops a model in which payouts
 are restricted by one of the two regimes and the equity holders have the
 choice between extending and liquidating the existing investments. I find
 that both regimes will create first-best incentives if their respective
 design parameters are properly balanced. Under a legal capital regime,
 however, first-best will be a random event, because accounting standards
 typically do not allow for the necessary interdepencies between the
 accounting for liabilities and investments. The advantage of a solvency
 test with respect to the implementation of first-best incentives
 diminishes if equity holders can misreport future prospects. Under the
 legal capital regime, misreporting incentives can be excluded by
 sufficiently conservative depreciation. A solvency test designed to
 achieve efficient decisions will always create incentives to overstate
 future cash flows.
Journal: European Accounting Review 
Pages: 787-808 
Issue: 4 
Volume: 22 
Year: 2013 
Month: 12 
X-DOI: 10.1080/09638180.2012.749622 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.749622 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Elisabeth Dedman 
Author-X-Name-First: Elisabeth 
Author-X-Name-Last: Dedman 
Author-Name: Asad Kausar 
Author-X-Name-First: Asad 
Author-X-Name-Last: Kausar 
Author-Name: Clive Lennox 
Author-X-Name-First: Clive 
Author-X-Name-Last: Lennox 
Title: The Demand for Audit in Private Firms: Recent Large-Sample Evidence from the UK 
Abstract:
 Although theory suggests that companies would
 rationally select into audit even if it were not a legal requirement, many
 countries impose mandatory audits. This is arguably due to an audit having
 elements of a public good, which may result in not enough audits being
 purchased without regulatory intervention. The mandatory nature of public
 company audit has created problems for researchers wishing to investigate
 the demand for voluntary audit. Recent events in the UK, however, have
 provided such an environment. In the UK, private companies must publicly
 file financial statements and, until recently, they had also to be
 audited. However, this requirement has now been relaxed for many private
 companies. We are therefore able to examine the determinants of voluntary
 audit in a large sample of companies for which we have financial statement
 data. We analyse a sample of 6274 recently exempt companies, following
 them for three years post-exemption. We use agency theory and prior
 evidence to generate our hypotheses and examine them using a more
 comprehensive set of explanatory variables than has previously been
 available in the literature. Our results indicate that companies are more
 likely to purchase voluntary audits if they have greater agency costs, are
 riskier, wish to raise capital, purchase non-audit services from their
 auditor, and exhibited greater demand for audit assurance in the mandatory
 audit regime. We also document a trend away from audit over time. Overall,
 our results strongly support the idea that companies choose to be audited
 when it is in their interests to do so.
Journal: European Accounting Review 
Pages: 1-23 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 5 
X-DOI: 10.1080/09638180.2013.776298 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.776298 
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Template-Type: ReDIF-Article 1.0
Author-Name: Igor Goncharov 
Author-X-Name-First: Igor 
Author-X-Name-Last: Goncharov 
Author-Name: David Veenman 
Author-X-Name-First: David 
Author-X-Name-Last: Veenman 
Title: Stale and Scale Effects in Markets-Based Accounting Research: Evidence from the Valuation of Dividends 
Abstract:
 This study revisits prior research on the valuation
 of dividends in an accounting-based valuation framework. Using a battery
 of tests, we show that market value deflation is essential in market-based
 tests of dividend displacement and signalling because it controls for
 'stale' information in addition to scale (size) differences across firms.
 For US firms, we show that after controlling for 'stale' information, the
 empirical association between dividends and market values switches from
 positive to negative. This switch is not explained by scale differences
 across firms. Further, we show that after controlling for staleness, the
 valuation of dividends remains positive for European firms. This result is
 explained by the relatively stronger association of dividends with future
 earnings in these settings (i.e. signalling). Lastly, our country-specific
 estimates of dividend valuation provide a potentially valuable index for
 studies aimed at examining the effects of accounting and securities
 regulation on information asymmetries in an international context.
Journal: European Accounting Review 
Pages: 25-55 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 5 
X-DOI: 10.1080/09638180.2013.795870 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.795870 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Miles B. Gietzmann 
Author-X-Name-First: Miles B. 
Author-X-Name-Last: Gietzmann 
Author-Name: Angela K. Pettinicchio 
Author-X-Name-First: Angela K. 
Author-X-Name-Last: Pettinicchio 
Title: External Auditor Reassessment of Client Business Risk Following the Issuance of a Comment Letter by the SEC 
Abstract:
 Following Arthur Andersen's conviction for
 obstructing justice, auditors faced a one-time significant change in their
 regulatory environment because it was clear that (i) major audit
 partnerships could be closed and (ii) post Sarbanes-Oxley Act (SOX),
 regulators would take a far more attentive (aggressive) role. In response
 auditors considered whether the pricing of audits should be revised to
 take account of the increased risk of regulatory intervention and
 litigation. Obviously such re-pricing would need to be targeted at those
 firms for which the risks were greatest. One early warning signal of such
 events occurring is the issuance by the Security Exchange Commission (SEC)
 of a Comment Letter (CL). We investigate whether there is any evidence
 that if a client receives a CL this is used to re-price audit services.
 Specifically, we investigate whether issuance resulted in upward pressure
 on audit fees, and whether this effect was simply transient around the
 issuance period or alternatively persisted some years into the future.
 This research finds that after a client receives a CL, auditors adjust
 audit fees upwards in the period in which the CL is received. In addition
 it is shown that for subsequent periods in which the auditor does not
 spend time assisting the client respond to a specific CL, an initial rise
 in audit fee persists. This is consistent with the hypothesis that
 auditors reassess the reputation and litigation risk of the client on the
 basis of the SEC issuance of a Comment Letter.
Journal: European Accounting Review 
Pages: 57-85 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 5 
X-DOI: 10.1080/09638180.2013.774703 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.774703 
File-Format: text/html
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Handle: RePEc:taf:euract:v:23:y:2014:i:1:p:57-85




Template-Type: ReDIF-Article 1.0
Author-Name: Delfina Gomes 
Author-X-Name-First: Delfina 
Author-X-Name-Last: Gomes 
Author-Name: Garry D. Carnegie 
Author-X-Name-First: Garry D. 
Author-X-Name-Last: Carnegie 
Author-Name: L&uacute;cia Lima Rodrigues 
Author-X-Name-First: L&uacute;cia Lima 
Author-X-Name-Last: Rodrigues 
Title: Accounting as a Technology of Government in the Portuguese Empire: The Development, Application and Enforcement of Accounting Rules During the Pombaline Era (1761-1777) 
Abstract:
 This study of the interrelations of accounting and
 the State portrays accounting as a technology of government to effectively
 enact 'practical action' [Snook, S. A. (2000) <italic>Friendly Fire: The
 Accidental Shootdown of U.S. Black Hawks over Northern Iraq</italic>
 (Princeton, NJ: Princeton University Press)] at a distance in the
 Portuguese Empire. The study examines the development, application and
 enforcement of accounting rules under Portuguese imperialism in the
 'Pombaline Era' during the period 1761-1777. These rules, comprising the
 '1761 Law' and the later applicable accounting 'Instructions', were issued
 by the Royal Treasury, established in 1761, for application throughout the
 Portuguese Empire. Using the combination of Foucault's concept of
 governmentality and Snook's theory of 'practical drift', the study
 elucidates how the implementation and evaluation of accounting control
 systems permitted the Portuguese government to exercise control at a
 distance, thereby mobilising individuals to pursue its goals for the
 Empire. The measures taken to enforce conformity with the accounting rules
 are shown to have been targeted at deterring the phenomenon of practical
 drift and, therefore, were concerned with avoiding malfunctioning and
 potential chaos in colonial administration.
Journal: European Accounting Review 
Pages: 87-115 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 5 
X-DOI: 10.1080/09638180.2013.788981 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.788981 
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Handle: RePEc:taf:euract:v:23:y:2014:i:1:p:87-115




Template-Type: ReDIF-Article 1.0
Author-Name: Jens M�ller 
Author-X-Name-First: Jens 
Author-X-Name-Last: M�ller 
Title: The Challenge of Assessing the Market Value of Private Companies Using a Standardised Combination Method for Tax Purposes - Lessons to be Learnt from Past Experience 
Abstract:
 When taxes on capital or wealth are levied, in most
 countries companies have to be assessed in terms of their market value
 (MV). Estimating the MV of private companies for tax purposes is a
 challenging task for tax authorities as MVs are not available. In this
 study, I empirically analyse to what extent an accounting-based tax
 valuation method for private companies, a simplified residual income
 model, succeeds in matching the MV. I refer to the mandatory Standardised
 Combination Model that is a special case of methods commonly used in
 several countries. In the absence of market prices for private companies,
 I use a sample of small German public companies as a proxy. I validate
 this approach using a sensitivity analysis that involves matching the
 sample of public companies with that of private companies. The results
 imply that the mandatory Standardised Combination Model leads to a severe
 unequal treatment not only between public and private companies but also
 among private companies across and within industries. Furthermore, I
 simulate the effects of variation in the key parameters and highlight
 their impact on the approximation quality of the Standardised Combination
 Method. The findings are relevant to tax reform discussions as well as to
 tax policy-makers and practitioners in many countries.
Journal: European Accounting Review 
Pages: 117-141 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 5 
X-DOI: 10.1080/09638180.2012.746528 
File-URL: http://hdl.handle.net/10.1080/09638180.2012.746528 
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Handle: RePEc:taf:euract:v:23:y:2014:i:1:p:117-141




Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Bartlett 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Bartlett 
Author-Name: Eric Johnson 
Author-X-Name-First: Eric 
Author-X-Name-Last: Johnson 
Author-Name: Philip Reckers 
Author-X-Name-First: Philip 
Author-X-Name-Last: Reckers 
Title: Accountability and Role Effects in Balanced Scorecard Performance Evaluations When Strategy Timeline Is Specified 
Abstract:
 This study experimentally examines if fixation on
 lagging financial measures (relative to leading non-financial measures) as
 reported in prior balanced scorecard literature is mitigated when
 evaluators are provided with a strategy implementation timeline (a
 non-manipulated variable). The experiment manipulates whether or not
 evaluators are subject to process accountability as well as the role to
 which evaluators are assigned (i.e. supervisor or subordinate). We predict
 and find that, in general, the provision of an implementation timeline
 results in evaluators placing more weight on strategically linked, leading
 non-financial measures within a subordinate's time span of control
 compared to strategically linked, lagged financial measures beyond the
 subordinate's controllable time horizon. However, we also find that
 evaluators in the role of a supervisor differentiate less between
 strategically linked non-financial measures that fall within the
 subordinate's control and strategically linked financial measures beyond
 the subordinate's control when held accountable compared to supervisors
 not held accountable. On the other hand, participants in the role of a
 subordinate were able to differentiate appropriately between these
 measures when held accountable. Our results extend prior research by
 considering how linking a timeline to strategy implementation may assist
 evaluators when assessing performance in the presence of both leading and
 lagging strategic measures. Further, reference to an implementation
 timeline may influence role and accountability effects. Implications for
 future research in multidimensional strategic performance evaluation are
 discussed.
Journal: European Accounting Review 
Pages: 143-165 
Issue: 1 
Volume: 23 
Year: 2014 
Month: 5 
X-DOI: 10.1080/09638180.2013.809977 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.809977 
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Template-Type: ReDIF-Article 1.0
Author-Name: Juan Manuel Garc&#xed;a Lara 
Author-X-Name-First: Juan Manuel 
Author-X-Name-Last: Garc&#xed;a Lara 
Author-Name: Beatriz Garc&#xed;a Osma 
Author-X-Name-First: Beatriz 
Author-X-Name-Last: Garc&#xed;a Osma 
Author-Name: Fernando Penalva 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Penalva 
Title: Information Consequences of Accounting Conservatism 
Abstract:
 We study the information consequences of
 conservatism in accounting. Prior research shows that information
 asymmetries in capital markets lead to firm-level increases in
 conservatism. In this paper, we further argue that increases in
 conservatism improve the firm information environment and lead to
 subsequent decreases in information asymmetries between firm insiders and
 outsiders. We predict and test if this decrease in information asymmetries
 manifests itself through: (a) a decrease in the bid-ask spread and in
 stock-returns volatility, and (b) an improved information environment for
 financial analysts, leading to more precise and less dispersed forecasts,
 and to more analysts following the firm. Using a large US sample for the
 period 1977-2007 and several proxies for conservatism we find robust
 evidence consistent with our expectations. Our results are in line with
 conservatism being useful not only for debt-holders, but also for
 equity-holders.
Journal: European Accounting Review 
Pages: 173-198 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638180.2014.882263 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.882263 
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Handle: RePEc:taf:euract:v:23:y:2014:i:2:p:173-198




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Ciftci 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Ciftci 
Author-Name: Masako Darrough 
Author-X-Name-First: Masako 
Author-X-Name-Last: Darrough 
Author-Name: Raj Mashruwala 
Author-X-Name-First: Raj 
Author-X-Name-Last: Mashruwala 
Title: Value Relevance of Accounting Information for Intangible-Intensive Industries and the Impact of Scale: The US Evidence 
Abstract:
 The structural shift in the USA from a tangible- to
 an intangible-intensive economy raises a concern that reporting based on
 generally accepted accounting principles (GAAP) might have lost its
 usefulness to investors. Amir and Lev [(1996) Value relevance of
 nonfinancial information: the wireless communications industry,
 <italic>Journal of Accounting and Economics</italic>, 22(1-3), pp. 3-30]
 argue that accounting information is not useful for intangible-intensive
 firms. In contrast, Collins <italic>et al</italic>. [(1997) Changes in the
 value relevance of earnings and book values over the past forty years,
 <italic>Journal of Accounting and Economics</italic>, 24(1), pp. 39-67]
 find that the value relevance (measured by <italic>R</italic>-squared) of
 accounting information has increased over time and that value relevance
 for intangible-intensive industries is as high as that for
 tangible-intensive industries. In this article, we attempt to resolve the
 above discrepancy by examining the impact of scale on
 <italic>R</italic>-squared (Brown, S., Lo, K. and Lys, T. (1999) Use of
 <italic>R</italic>-super-2 in accounting research: measuring changes in
 value relevance over the last four decades, <italic>Journal of Accounting
 and Economics</italic>, 28(2), pp. 83-115). We find that, after
 controlling for scale, <italic>R</italic>-squared is lower for
 intangible-intensive industries than for non-intangible-intensive
 industries and has declined over time for intangible-intensive industries
 but remained stable for non-intangible-intensive industries.
 Interestingly, the declining trend ended with the demise of the 'New
 Economy' period (NEP) (Core, J. E., Guay, W. R. and Van Buskirk, A. (2003)
 Market valuations in the New Economy: an investigation of what has
 changed, <italic>Journal of Accounting and Economics</italic>, 34(2-3),
 pp. 43-67), and value relevance for both industry groups appears to be
 restored in the post-NEP to the pre-NEP level. We also find that R&D
 capitalisation increases value relevance for intangible-intensive
 industries, but does not completely eliminate the gap between the two
 groups.
Journal: European Accounting Review 
Pages: 199-226 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638180.2013.815124 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.815124 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Suijs 
Author-X-Name-First: Jeroen 
Author-X-Name-Last: Suijs 
Author-Name: Jacco L. Wielhouwer 
Author-X-Name-First: Jacco L. 
Author-X-Name-Last: Wielhouwer 
Title: Disclosure Regulation in Duopoly Markets: Proprietary Costs and Social Welfare 
Abstract:
 The argument of proprietary costs is commonly used
 by firms to object against proposed disclosure regulations. The goal of
 this paper is to improve our understanding of the welfare consequences of
 disclosure in duopoly markets and to identify market settings where
 proprietary costs are a viable argument for firms to remain silent. We,
 therefore, solve the optimal disclosure strategies and distinguish two
 different potentially costly effects of disclosing private information:
 the strategic information effect and the market information effect. We
 identify the market settings for which a regulator prefers to impose
 disclosure regulation so as to maximise consumer surplus or total surplus.
 Regulation may be necessary because (i) the increase in welfare outweighs
 proprietary costs to the firms, or (ii) firms are trapped in a prisoners'
 dilemma. The first primarily applies to Bertrand competition with demand
 uncertainty and, to a lesser extent, to Cournot competition. The second
 applies primarily to Cournot competition and Bertrand competition with
 cost uncertainty.
Journal: European Accounting Review 
Pages: 227-255 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638180.2013.835245 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.835245 
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Handle: RePEc:taf:euract:v:23:y:2014:i:2:p:227-255




Template-Type: ReDIF-Article 1.0
Author-Name: Miles Gietzmann 
Author-X-Name-First: Miles 
Author-X-Name-Last: Gietzmann 
Author-Name: Ivana Raonic 
Author-X-Name-First: Ivana 
Author-X-Name-Last: Raonic 
Title: Thinly Traded Growth Stocks: A Joint Examination of Transparency in Communication and the Trading Platform 
Abstract:
 When thinly traded growth stocks (TTGS) listed on a
 secondary exchange experience difficulty in gaining investors' attention,
 one possible solution is to increase the intensity of disclosure. However,
 if the stock is traded on a quote-driven system, market makers can collude
 to maintain wide bid-ask spreads that discourage firms from disclosing. As
 a result, TTGS traded on a quote-driven system can face a liquidity trap
 that can prevent them from harvesting the benefits of increased disclosure
 activities. In this paper, we argue that the well-documented negative
 relation between disclosure and the bid-ask spread is likely to be
 moderated by the type of protocol chosen by exchanges to handle the
 trading of TTGS. To test our theory we use a unique setting created by the
 introduction of a hybrid order-driven protocol for TTGS in the UK.
 Following an increase in the disclosure activity by a TTGS, we find that
 the magnitudes of the predicted reductions in the bid-ask spreads are
 dependent on whether the TTGS switch their trading protocols.
Journal: European Accounting Review 
Pages: 257-289 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638180.2013.768802 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.768802 
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Handle: RePEc:taf:euract:v:23:y:2014:i:2:p:257-289




Template-Type: ReDIF-Article 1.0
Author-Name: Jani Taipaleenm�ki 
Author-X-Name-First: Jani 
Author-X-Name-Last: Taipaleenm�ki 
Title: Absence and Variant Modes of Presence of Management Accounting in New Product Development - Theoretical Refinement and Some Empirical Evidence 
Abstract:
 The purpose of this explorative multi-organisation
 study is to describe and explain absence and variant modes of presence of
 management accounting (MA) in new product development (NPD), and to
 problematise further the equivocal results and paradigm shift regarding
 the role and relevance of management control system (MCS) packages in
 innovative and uncertain environments, in particular, why there are
 environments without formal management controls such as MA. The study
 refines, and in certain respects develops the theory of MA absence by
 combining it with the theory base of MA change and stability. The
 theoretical analysis suggests that a wide variety of factors may explain
 the absence or the mode of presence of MA in NPD. These identified
 explanatory factors are analysed further within the developed theoretical
 framework. The strongest empirical evidence for MA absence arises from
 technical, economic and functional factors. Furthermore, lack of
 reasons-for-adoption of MA systems and other forms of control associated
 with engineering-oriented culture lead to MA absence in NPD. The empirical
 findings also reveal a number of variant modes of MA presence with only
 the 'accounting thinking' and concepts adopted in NPD. The contribution of
 the study extends from the refinement of the theory of MA absence towards
 increasing the understanding of the evolution, change, stability and
 relationship of various elements of MA systems, and the dynamics of MCS in
 general.
Journal: European Accounting Review 
Pages: 291-334 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638180.2013.811065 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.811065 
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Handle: RePEc:taf:euract:v:23:y:2014:i:2:p:291-334




Template-Type: ReDIF-Article 1.0
Author-Name: Anna-Maija Lantto 
Author-X-Name-First: Anna-Maija 
Author-X-Name-Last: Lantto 
Title: Business Involvement in Accounting: A Case Study of International Financial Reporting Standards Adoption and the Work of Accountants  
Abstract:
 Although Byrne and Pierce [(2007) Towards more
 comprehensive understanding of the roles of management accountants,
 <italic>European Accounting Review</italic>, 16(3), pp. 469-498] found
 that an increasing regulatory burden may decrease accountants' chances of
 getting involved in business, little is known about corporate reporting
 practice and whether, and if yes how, regulation impacts on accountants'
 work. In order to fill this gap, the paper provides a case study analysis
 of International Financial Reporting Standards (IFRS) adoption and its
 impact on and implications for an accountant's role, positions, practices
 and work in a continental European context. This study describes how IFRS
 expect information preparers to take more responsibility for reporting
 than domestic accounting standards. Thus, the present study contributes to
 the literature by arguing that it depends on the set of accounting
 standards how they impact on accountants' work. The study shows why and
 how especially IFRS' requirement of 'business involvement' in accounting
 revolutionises accountants' work and how it has implications on their
 roles, practices and positions in the case firm. Finally, the paper
 explains how learning and knowledge creation required by IFRS adoption was
 made possible through communities of practice and hence how it was
 possible to clarify the responsibilities of divisional and group
 accountants in the case firm. Thus, the present study enhances our
 understanding of reporting activity by describing actual practices of and
 mechanisms used in corporate reporting.
Journal: European Accounting Review 
Pages: 335-356 
Issue: 2 
Volume: 23 
Year: 2014 
Month: 6 
X-DOI: 10.1080/09638180.2013.833411 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.833411 
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Template-Type: ReDIF-Article 1.0
Author-Name: Annalisa Prencipe 
Author-X-Name-First: Annalisa 
Author-X-Name-Last: Prencipe 
Author-Name: Sasson Bar-Yosef 
Author-X-Name-First: Sasson 
Author-X-Name-Last: Bar-Yosef 
Author-Name: Henri C. Dekker 
Author-X-Name-First: Henri C. 
Author-X-Name-Last: Dekker 
Title: Accounting Research in Family Firms: Theoretical and Empirical Challenges 
Abstract:
				 Family firms play a significant role in
 the global economy. Consistently, over the last two decades academia has
 turned its attention to the family dimension as a determinant of business
 phenomena, and this interest has increased over time. While family
 business research has reached an age of 'adolescence' as a field of study,
 accounting research to date seems to have been rather slow to pick up on
 the distinctive characteristics of family firms, and their implications
 for accounting and reporting practices. In an attempt to accelerate and
 support research in the field, in this article we highlight theoretical
 and empirical challenges that accounting scholars need to consider when
 addressing issues related to accounting and reporting in family firms.
 These challenges include the selection and potential mixing of appropriate
 theoretical frameworks, and complications in defining operationally what
 family firms are. We also provide a 'state of the art' of studies in
 financial accounting, management accounting and auditing, identifying
 which issues in relation to family firms have been addressed in the
 research, and which theories, research methods and types of data have been
 used in these studies. We conclude by providing directions for future
 research that can advance our understanding of accounting and reporting in
 family firms.			 
Journal: European Accounting Review 
Pages: 361-385 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638180.2014.895621 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.895621 
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Handle: RePEc:taf:euract:v:23:y:2014:i:3:p:361-385




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gomez-Mejia 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gomez-Mejia 
Author-Name: Cristina Cruz 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Cruz 
Author-Name: Claudia Imperatore 
Author-X-Name-First: Claudia 
Author-X-Name-Last: Imperatore 
Title: Financial Reporting and the Protection of Socioemotional Wealth in Family-Controlled Firms 
Abstract:
				 We develop an integrated framework to
 financial reporting decisions in family-controlling firms. Our model
 contends that in these firms, financial reporting decisions (i.e. earnings
 management and voluntary disclosure) are driven by a diverse set of family
 owners' motives that can be synthesised in the preservation of the
 different aspects of the family socioemotional wealth (SEW). The proposed
 model suggests the criticality of recognising the existence of different
 family owners' reference points, given the gambling nature of accounting
 choices. By focusing on two dimensions of SEW ('Family Control and
 Influence' and 'Family Identification'), we explore how the prioritisation
 of one dimension or the other will imply a different family owners'
 evaluation of benefits and costs of accounting strategies and, hence, a
 diverse resolution of the accounting gamble.		       
Journal: European Accounting Review 
Pages: 387-402 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638180.2014.944420 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.944420 
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Handle: RePEc:taf:euract:v:23:y:2014:i:3:p:387-402




Template-Type: ReDIF-Article 1.0
Author-Name: Shuping Chen 
Author-X-Name-First: Shuping 
Author-X-Name-Last: Chen 
Author-Name: Xia Chen 
Author-X-Name-First: Xia 
Author-X-Name-Last: Chen 
Author-Name: Qiang Cheng 
Author-X-Name-First: Qiang 
Author-X-Name-Last: Cheng 
Title: Conservatism and Equity Ownership of the Founding Family 
Abstract:
				 We investigate the impact of founding
 family ownership on accounting conservatism. Family ownership is
 characterised by large, under-diversified equity stake and long investment
 horizon. These features give family owners both the incentives and the
 ability to implement conservative financial reporting to reduce legal
 liability and mitigate agency conflicts with other stakeholders. Since
 CEOs can have different incentives towards conservatism, we focus on
 ownership of non-CEO founding family members in our investigation. We find
 that conservatism increases with non-CEO family ownership, supporting our
 prediction. This relationship becomes insignificant in family firms with
 founders serving as CEOs, either due to founder CEOs' incentives to
 implement more conservative financial reporting or their power to thwart
 non-CEO family owners' demand for conservatism. Overall, our paper adds to
 the literature on the impact of founding family ownership on firms'
 financial reporting policy. Our findings are consistent with the recent
 evidence in the family-firm literature that founding families exhibit
 substantial incentives to reduce agency and litigation costs and to
 maximise firm value.			  
Journal: European Accounting Review 
Pages: 403-430 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638180.2013.814978 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.814978 
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Handle: RePEc:taf:euract:v:23:y:2014:i:3:p:403-430




Template-Type: ReDIF-Article 1.0
Author-Name: Ann-Kristin Achleitner 
Author-X-Name-First: Ann-Kristin 
Author-X-Name-Last: Achleitner 
Author-Name: Nina G�nther 
Author-X-Name-First: Nina 
Author-X-Name-Last: G�nther 
Author-Name: Christoph Kaserer 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Kaserer 
Author-Name: Gianfranco Siciliano 
Author-X-Name-First: Gianfranco 
Author-X-Name-Last: Siciliano 
Title: Real Earnings Management and Accrual-based Earnings Management in Family Firms 
Abstract:
				 We examine the effects of family firms on
 real earnings management (REM) and accrual-based earnings management
 (ABEM). Using socioemotional wealth as a theoretical framework and
 considering the different implications of REM and ABEM on family firms'
 transgenerational sustainability, we hypothesise and find for a sample of
 402 German listed family firms during 1998-2008 that family firms engage
 less in REM and exhibit more earnings-decreasing ABEM policies as compared
 to a sample of 436 non-family firms. We further provide evidence that
 family firms as compared to non-family firms treat REM and ABEM as
 substitute rather than complementary tools for earnings management.
 Overall, our findings suggest that family firms use earnings management
 activities strategically, avoiding those that inhibit the firm's long-term
 value (i.e. REM) and engaging in those that help families retain
 transgenerational control (i.e. ABEM). 			
Journal: European Accounting Review 
Pages: 431-461 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638180.2014.895620 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.895620 
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Handle: RePEc:taf:euract:v:23:y:2014:i:3:p:431-461




Template-Type: ReDIF-Article 1.0
Author-Name: Dan Weiss 
Author-X-Name-First: Dan 
Author-X-Name-Last: Weiss 
Title: Internal Controls in Family-Owned Firms 
Abstract:
				 This study investigates the relationship
 between family ownership and material weaknesses in internal controls over
 financial reporting. Recent Sarbanes-Oxley (SOX) regulation and mandatory
 disclosure of family relations among block shareholders and directors in
 Israel offer an ultimate setting for exploring this relationship. The
 findings reveal that (i) family ownership is significantly associated with
 less material weaknesses in internal controls, (ii) material weaknesses in
 internal controls are associated with lower earnings quality in
 family-owned firms than in non-family-owned firms, and (iii) investors
 find weaknesses in internal controls to be more serious in their potential
 to lessen future performance in family-owned firms than in
 non-family-owned firms. The contribution of the study is threefold. First,
 the findings expand our understanding of how ownership structure
 influences financial reporting procedures. Second, they suggest that
 family-owned firms use internal controls as a mechanism to enhance
 earnings quality. Third, they extend the literature on the implications of
 the SOX legislation by highlighting the joint effect of family ownership
 and effective internal controls in achieving high-quality financial
 reports.		     
Journal: European Accounting Review 
Pages: 463-482 
Issue: 3 
Volume: 23 
Year: 2014 
Month: 9 
X-DOI: 10.1080/09638180.2013.821814 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.821814 
File-Format: text/html
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Handle: RePEc:taf:euract:v:23:y:2014:i:3:p:463-482




Template-Type: ReDIF-Article 1.0
Author-Name: George Batta 
Author-X-Name-First: George 
Author-X-Name-Last: Batta 
Author-Name: Ricardo Sucre Heredia 
Author-X-Name-First: Ricardo 
Author-X-Name-Last: Sucre Heredia 
Author-Name: Marc Weidenmier 
Author-X-Name-First: Marc 
Author-X-Name-Last: Weidenmier 
Title: Political Connections and Accounting Quality under High Expropriation Risk 
Abstract:
 We examine the impact of political connections and accounting quality
 among Venezuelan industrial firms, which face one of the highest levels of
 expropriation risk worldwide. Based on prior literature, we expect a
 negative relationship between expropriation risk and accounting quality as
 firms manage earnings to avoid 'benign' state intervention. We find that
 politically connected firms have higher accounting quality than
 non-connected firms, which is consistent with connected firms' lower risk
 of expropriation due to connections with high-level government officials
 or ruling party members. The relationship between accounting quality and
 political connections appears to be strongly moderated by institutional
 features like expropriation risk.
Journal: European Accounting Review 
Pages: 485-517 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2014.906316 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.906316 
File-Format: text/html
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Handle: RePEc:taf:euract:v:23:y:2014:i:4:p:485-517




Template-Type: ReDIF-Article 1.0
Author-Name: Tomasz Piotr Wisniewski 
Author-X-Name-First: Tomasz Piotr 
Author-X-Name-Last: Wisniewski 
Author-Name: Andrea Moro 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Moro 
Title: When EU Leaders Speak, the Markets Listen<xref ref-type="fn" rid="FN0008"/> 
Abstract:
 We use content analysis software to examine certain characteristics of
 communications arising from European Council meetings. These
 characteristics appear to explain a large proportion of variation in stock
 returns around the meeting dates. More specifically, stock market
 investors react favourably when the conclusions and declarations issued by
 heads of states convey a positive sentiment and demonstrate a stance of
 moral rectitude. On the other hand, the returns tend to be negative when
 the communications are obfuscated by an excessive use of abstract words
 and fixated on regional rather than global issues.
Journal: European Accounting Review 
Pages: 519-551 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2014.884931 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.884931 
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Handle: RePEc:taf:euract:v:23:y:2014:i:4:p:519-551




Template-Type: ReDIF-Article 1.0
Author-Name: Sohyung Kim 
Author-X-Name-First: Sohyung 
Author-X-Name-Last: Kim 
Author-Name: Cheol Lee 
Author-X-Name-First: Cheol 
Author-X-Name-Last: Lee 
Title: Implementability of Trading Strategies Based on Accounting Information: Piotroski (2000) Revisited 
Abstract:
 The return accumulation approach used in studies on accounting-related
 anomalies cannot be replicated in a practical context because the number
 and identity of individual observations within a portfolio are assigned
 within a research context before the accounting information of all firms
 in the portfolio would actually be available in real time. We explore this
 issue by re-examining the results in Piotroski (2000) [Value investing:
 the use of historical financial statement information to separate winners
 from losers, <italic>Journal of Accounting Research</italic>,
 <italic>38</italic>(supplement), 1 - 44]. We find that the relationship
 between Piotroski's fundamental signals and subsequent returns is partly
 driven by the choice of return accumulation periods. Because the method
 used in Piotroski is typical of those often employed in the accounting
 literature, this study suggests that evidence of profitable trading
 strategies and market inefficiency in the literature is likely to be
 overstated.
Journal: European Accounting Review 
Pages: 553-558 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2014.921217 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.921217 
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Template-Type: ReDIF-Article 1.0
Author-Name: Henry Lahr 
Author-X-Name-First: Henry 
Author-X-Name-Last: Lahr 
Title: An Improved Test for Earnings Management Using Kernel Density Estimation<xref ref-type="fn" rid="FN0015"/> 
Abstract:
 This paper describes improvements on methods developed by Burgstahler and
 Dichev (1997, Earnings management to avoid earnings decreases and losses,
 <italic>Journal of Accounting and Economics</italic>, 24(1), pp. 99-126)
 and Bollen and Pool (2009, Do hedge fund managers misreport returns?
 Evidence from the pooled distribution, <italic>Journal of
 Finance</italic>, 64(5), pp. 2257-2288) to test for earnings management by
 identifying discontinuities in distributions of scaled earnings or
 earnings forecast errors. While existing methods use preselected
 bandwidths for kernel density estimation and histogram construction, the
 proposed test procedure addresses the key problem of bandwidth selection
 by using a bootstrap test to endogenise the selection step. The main
 advantage offered by the bootstrap procedure over prior methods is that it
 provides a reference distribution that cannot be globally distinguished
 from the empirical distribution rather than assuming a correct reference
 distribution. This procedure limits the researcher's degrees of freedom
 and offers a simple procedure to find and test a local discontinuity. I
 apply the bootstrap density estimation to earnings, earnings changes, and
 earnings forecast errors in US firms over the period 1976-2010.
 Significance levels found in earlier studies are greatly reduced, often to
 insignificant values. Discontinuities cannot be detected in analysts'
 forecast errors, while such findings of discontinuities in earlier
 research can be explained by a simple rounding mechanism. Earnings data
 show a large drop in loss aversion after 2003 that cannot be detected in
 changes of earnings.
Journal: European Accounting Review 
Pages: 559-591 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2013.860044 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.860044 
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Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian D. Becker 
Author-X-Name-First: Sebastian D. 
Author-X-Name-Last: Becker 
Title: When Organisations Deinstitutionalise Control Practices: A Multiple-Case Study of Budget Abandonment 
Abstract:
 Drawing on a framework of deinstitutionalisation, this study explores the
 abandonment of budgeting through a multiple-case study of four companies.
 The findings illustrate how a number of antecedents to
 deinstitutionalisation acted in each setting and show that abandonment was
 only achieved through skilful agency by dominant insiders to construct the
 need and manage for change. In addition, a finding of the study is that
 two of the four companies reversed the deinstitutionalisation and
 reintroduced traditional budgeting. This is explained by highlighting the
 role of remnants of formerly institutionalised practices and by
 demonstrating the importance of administrative and cultural controls which
 can support the abandonment of a central accounting control practice in
 the first place. Overall, this research extends previous studies of
 deinstitutionalisation by analysing a taken-for-granted practice at the
 micro-level and by giving a more agentic account of its processes.
Journal: European Accounting Review 
Pages: 593-623 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2014.899918 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.899918 
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Handle: RePEc:taf:euract:v:23:y:2014:i:4:p:593-623




Template-Type: ReDIF-Article 1.0
Author-Name: Robert M. Gillenkirch 
Author-X-Name-First: Robert M. 
Author-X-Name-Last: Gillenkirch 
Author-Name: Achim Hendriks 
Author-X-Name-First: Achim 
Author-X-Name-Last: Hendriks 
Author-Name: Susanne A. Welker 
Author-X-Name-First: Susanne A. 
Author-X-Name-Last: Welker 
Title: Effects of Executive Compensation Complexity on Investor Behaviour in an Experimental Stock Market<xref ref-type="fn" rid="FN0013"/> 
Abstract:
 This study experimentally investigates whether shareholders correctly
 anticipate the incentive effects of increasingly complex compensation
 packages given to managers, and whether potential biases in individual
 shareholder beliefs carry over to price and volume effects in a stock
 market. In the experiment, a manager makes a decision about the stochastic
 dividend process generating the firm's fundamental value, and shareholders
 make estimations about fundamental value and trade shares in a stock
 market. The manager's action is either known or hidden and, nested in the
 hidden-action condition, compensation is either simple or complex. We
 hypothesise that hidden action gives rise to perceived behavioural
 uncertainty, and that this uncertainty has valuation relevance in that it
 affects both individual estimations of fundamental firm value and stock
 prices. Furthermore, we hypothesise that perceived behavioural uncertainty
 increases with the complexity of compensation, and that compensation
 complexity also affects trading volume. We find supporting evidence for
 our conjectures. Both estimations and market prices are biased when the
 manager's action is hidden, and biases are stronger when compensation is
 complex. We further find that trading volume decreases when compensation
 is complex, even though the heterogeneity of investors' individual beliefs
 increases.
Journal: European Accounting Review 
Pages: 625-645 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2013.847380 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.847380 
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Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Fran�ois Henri 
Author-X-Name-First: Jean-Fran�ois 
Author-X-Name-Last: Henri 
Author-Name: Olivier Boiral 
Author-X-Name-First: Olivier 
Author-X-Name-Last: Boiral 
Author-Name: Marie-Jos�e Roy 
Author-X-Name-First: Marie-Jos�e 
Author-X-Name-Last: Roy 
Title: The Tracking of Environmental Costs: Motivations and Impacts 
Abstract:
 Most accounting systems separately capture and accumulate one portion of
 the overall environmental costs of firms, while the remainder is embedded
 in other cost pools, such as general overhead costs or administrative
 costs. Little empirical evidence has been provided to explain the impacts
 of cost accounting systems that make a larger portion of firms' total
 environmental costs visible. The aim of this study is to conceptually and
 empirically examine the relationships among the tracking of environmental
 costs (TEC) by firms, their environmental motivations, and the impacts in
 terms of environmental and economic performance. Using survey data from a
 large sample of manufacturing firms, the results suggest two main
 conclusions. First, the TEC has an indirect influence on economic
 performance through environmental performance. Second, this indirect
 effect is influenced by the environmental motivations of the firm. More
 specifically, this indirect effect is greater (lesser) for firms whose
 motivations are predominately business-oriented (sustainability-oriented).
Journal: European Accounting Review 
Pages: 647-669 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2013.837400 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.837400 
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Template-Type: ReDIF-Article 1.0
Author-Name: Keke Hiller 
Author-X-Name-First: Keke 
Author-X-Name-Last: Hiller 
Author-Name: Matthias D. Mahlendorf 
Author-X-Name-First: Matthias D. 
Author-X-Name-Last: Mahlendorf 
Author-Name: J�rgen Weber 
Author-X-Name-First: J�rgen 
Author-X-Name-Last: Weber 
Title: Management Accountants' Occupational Prestige Within the Company: A Social Identity Theory Perspective 
Abstract:
 Professional associations and researchers in management accounting have
 attempted to increase the prestige of management accountants. Although
 studies have suggested that occupational prestige is important, the
 prestige of management accountants within the employing organisation and
 its consequences are still not fully understood. Building on social
 identity theory, we investigate the effect of occupational prestige, as
 perceived by management accountants, on organisational-professional
 conflict. We suggest that prestige can mitigate conflict because
 management accountants with high prestige will identify more strongly with
 their organisation, as they see it as a source of self-esteem and might
 believe that they are taken more seriously by managers. At the same time,
 we hypothesise that prestige exerts an indirect conflict-increasing effect
 via professional identification. This is based on the idea that prestige
 may cause proud management accountants to start to identify more strongly
 with their profession and become hard-liners, unwilling to compromise the
 values associated with their profession in the interest of the firm.
 Results from a series of three surveys support the indirect
 conflict-increasing effect. Moreover, the results suggest a direct
 conflict-reducing effect of perceived prestige. The implications for
 research and practice are discussed.
Journal: European Accounting Review 
Pages: 671-691 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2013.849204 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.849204 
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Handle: RePEc:taf:euract:v:23:y:2014:i:4:p:671-691




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Jinghong Liang 
Author-X-Name-First: Pierre Jinghong 
Author-X-Name-Last: Liang 
Author-Name: Lin Nan 
Author-X-Name-First: Lin 
Author-X-Name-Last: Nan 
Title: Endogenous Precision of Performance Measures and Limited Managerial Attention<xref ref-type="fn" rid="FN0031"/> 
Abstract:
 In this paper, we model two drivers that underlie the economic trade-off
 that shareholders face in designing incentives for optimal effort
 allocation by managers. The first driver is the presence of a
 performance-reporting task, by which we mean managers may exert effort to
 improve the precision of their performance measures. The second is limited
 managerial attention, where performing one task may have an adverse effect
 on the cost efficiency of performing another. We show that the subtle
 interactions of the two drivers may alter the characteristics of incentive
 provision. First, the interaction may lead to a positive relation between
 the strength of the incentive and the variance of the performance
 measures. Second, the interaction may cause an informative performance
 signal to not be used in equilibrium incentive contracts. In particular,
 it is possible that the principal will not use a signal whose precision
 can be improved by the manager in order to discourage the manager from
 diverting attention to the performance-reporting task. Finally, we apply
 the model to a project-selection setting and show that, in order to induce
 the agent to choose higher risk, higher return projects, the principal may
 need to raise the bonus rate when the choice of project is unobservable.
Journal: European Accounting Review 
Pages: 693-727 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2013.864568 
File-URL: http://hdl.handle.net/10.1080/09638180.2013.864568 
File-Format: text/html
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Handle: RePEc:taf:euract:v:23:y:2014:i:4:p:693-727




Template-Type: ReDIF-Article 1.0
Author-Name: Georgios A. Papanastasopoulos 
Author-X-Name-First: Georgios A. 
Author-X-Name-Last: Papanastasopoulos 
Title: Accounting Accruals and Stock Returns: Evidence from European Equity Markets 
Abstract:
 In this paper, I show a generalisation of the negative relation of
 traditional accruals and percent accruals with future returns in 11 of 16
 European countries. Positive abnormal returns from hedge portfolios on
 both accrual measures summarise the economic significance of this
 generalisation. The magnitude of returns obtained from traditional
 accruals is higher than that obtained from percent accruals, contrary to
 existing evidence from the U.S. capital market. The magnitude of the
 accrual effect on stock returns based on both accrual measures is stronger
 in countries with higher individualism, lower uncertainty avoidance,
 higher equity-market development, higher equity-market liquidity, lower
 transaction costs, higher analyst coverage, lower analyst optimism, and
 lower ownership concentration. In markets where minorities have legal
 protection against expropriation by corporate insiders and where accrual
 accounting is permitted, the accrual effect based only on percent accruals
 is positive. Earnings opacity does not appear to exhibit a significant
 influence. Overall, the evidence suggests that cross-country differences
 in culture, equity-market setting, analysts' research output, investor
 protection, and ownership structure play an important role in explaining
 variation on the magnitude of the accrual anomaly in Europe.
Journal: European Accounting Review 
Pages: 729-768 
Issue: 4 
Volume: 23 
Year: 2014 
Month: 12 
X-DOI: 10.1080/09638180.2014.882264 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.882264 
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Handle: RePEc:taf:euract:v:23:y:2014:i:4:p:729-768




Template-Type: ReDIF-Article 1.0
Author-Name: John E. Core 
Author-X-Name-First: John E. 
Author-X-Name-Last: Core 
Author-Name: Luzi Hail 
Author-X-Name-First: Luzi 
Author-X-Name-Last: Hail 
Author-Name: Rodrigo S. Verdi 
Author-X-Name-First: Rodrigo S. 
Author-X-Name-Last: Verdi 
Title: Mandatory Disclosure Quality, Inside Ownership, and Cost of Capital 
Abstract:
 This paper examines whether and how inside ownership mediates the relation
 between disclosure quality and the cost of capital. Both ownership and
 more transparent reporting have the potential to align incentives between
 managers and investors thereby reducing systematic risk. Employing a large
 global sample across 35 countries over the 1990-2004 period, we show that
 country-level disclosure regulation is negatively related to (i) inside
 ownership, and (ii) firms' implied cost of capital and realised returns.
 We then introduce ownership into the cost of capital model, and also find
 a negative relation. These relations extend to the systematic component of
 the cost of capital, estimated from Fama-French portfolio sorts on
 ownership and disclosure regulation. Thus, while the direct effect of
 disclosure on cost of capital is negative, the indirect effect via
 ownership is positive, consistent with disclosure quality and ownership
 acting as substitutes. Using path analysis to assess the relative
 magnitude, our estimates suggest that the direct effect of disclosure
 quality outweighs the indirect effect by a ratio of about five to one.
Journal: European Accounting Review 
Pages: 1-29 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 5 
X-DOI: 10.1080/09638180.2014.985691 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.985691 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Hans B. Christensen 
Author-X-Name-First: Hans B. 
Author-X-Name-Last: Christensen 
Author-Name: Edward Lee 
Author-X-Name-First: Edward 
Author-X-Name-Last: Lee 
Author-Name: Martin Walker 
Author-X-Name-First: Martin 
Author-X-Name-Last: Walker 
Author-Name: Cheng Zeng 
Author-X-Name-First: Cheng 
Author-X-Name-Last: Zeng 
Title: Incentives or Standards: What Determines Accounting Quality Changes around IFRS Adoption? 
Abstract:
 We examine the impact of managerial financial reporting incentives on
 accounting quality changes around International Financial Reporting
 Standards (IFRS) adoption. A novel feature of our single-country setting
 based on Germany is that voluntary IFRS adoption was allowed and common
 before IFRS became mandatory. We exploit the revealed preferences in the
 choice to (not) adopt IFRS voluntarily to determine whether the management
 of individual firms had incentives to adopt IFRS. For comparability with
 previous studies, we assess accounting quality through multiple constructs
 such as earnings management, timely loss recognition, and value relevance.
 While most existing literature documents accounting quality improvements
 following IFRS adoption, we find that improvements are confined to firms
 with incentives to adopt, that is, voluntary adopters. We also find that
 firms that resist IFRS adoption have closer connections with banks and
 inside shareholders, consistent with lower incentives for more
 comprehensive accounting standards. The overall results indicate that
 reporting incentives dominate accounting standards in determining
 accounting quality. We conclude that it is unwarranted to infer from
 evidence on accounting quality changes around voluntary adoption that IFRS
 per se improves accounting quality.
Journal: European Accounting Review 
Pages: 31-61 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 5 
X-DOI: 10.1080/09638180.2015.1009144 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1009144 
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Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Voulgaris 
Author-X-Name-First: Georgios 
Author-X-Name-Last: Voulgaris 
Author-Name: Konstantinos Stathopoulos 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Stathopoulos 
Author-Name: Martin Walker 
Author-X-Name-First: Martin 
Author-X-Name-Last: Walker 
Title: CEO Pay Contracts and IFRS Reconciliations 
Abstract:
 We examine whether UK managers exploit the discretion provided in the UK
 GAAP to IFRS reconciliation process to manage earnings and whether this
 earnings management is associated with the structure of the managers'
 compensation contracts. We use a comprehensive data set of mainly
 hand-collected information from the firms' annual reports to provide
 evidence that, given the existence of an accounting-related vesting target
 in their pay schemes, CEOs use UK GAAP to IFRS reconciliations as an
 earnings management tool. We test our hypotheses under a number of
 different specifications, including a propensity score matching analysis.
 Our study contributes to the literature on the relation between earnings
 management and contractual incentives by focusing on a major structural
 change in accounting policies.
Journal: European Accounting Review 
Pages: 63-93 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 5 
X-DOI: 10.1080/09638180.2014.894927 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.894927 
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Handle: RePEc:taf:euract:v:24:y:2015:i:1:p:63-93




Template-Type: ReDIF-Article 1.0
Author-Name: Helena Isidro 
Author-X-Name-First: Helena 
Author-X-Name-Last: Isidro 
Author-Name: Ana Marques 
Author-X-Name-First: Ana 
Author-X-Name-Last: Marques 
Title: The Role of Institutional and Economic Factors in the Strategic Use of Non-GAAP Disclosures to Beat Earnings Benchmarks 
Abstract:
 We use hand-collected data for a sample of large European firms to
 investigate the influence of countries' institutional and economic factors
 on managers' non-generally accepted accounting principles (GAAP)
 disclosures. We find that managers are more likely to use non-GAAP
 measures to meet or beat earnings benchmarks that GAAP earnings would miss
 in countries with efficient law and enforcement, strong investor
 protection, developed financial markets, and good communication and
 dissemination of information. We also find that managers in countries with
 developed institutional and economic conditions are more likely to adjust
 non-GAAP earnings for recurring expenses such as R&D, depreciation, and
 stock-based compensation expenses. Our findings suggest that in
 environments in which there is more pressure to achieve earnings
 benchmarks and less opportunity to manipulate GAAP earnings, managers use
 more non-GAAP earnings disclosures to meet the benchmarks.
Journal: European Accounting Review 
Pages: 95-128 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 5 
X-DOI: 10.1080/09638180.2014.894928 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.894928 
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Handle: RePEc:taf:euract:v:24:y:2015:i:1:p:95-128




Template-Type: ReDIF-Article 1.0
Author-Name: Tanja Klettke 
Author-X-Name-First: Tanja 
Author-X-Name-Last: Klettke 
Author-Name: Carsten Homburg 
Author-X-Name-First: Carsten 
Author-X-Name-Last: Homburg 
Author-Name: Sebastian Gell 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Gell 
Title: How to Measure Analyst Forecast Effort<xref ref-type="fn" rid="FN0000"/> 
Abstract:
 We introduce a new way to measure the forecast effort that analysts devote
 to their earnings forecasts by measuring the analyst's general effort for
 <italic>all</italic> covered firms. While the commonly applied effort
 measure is based on analyst behaviour for one firm, our measure considers
 analyst behaviour for all covered firms. Our general effort measure
 captures additional information about analyst effort and thus can identify
 accurate forecasts. We emphasise the importance of investigating analyst
 behaviour in a larger context and argue that analysts who
 <italic>generally</italic> devote substantial forecast effort are also
 likely to devote substantial effort to a specific firm, even if this
 effort might not be captured by a firm-specific measure. Empirical results
 reveal that analysts who devote higher general forecast effort issue more
 accurate forecasts. Additional investigations show that analysts' career
 prospects improve with higher general forecast effort. Our measure
 improves on existing methods as it has higher explanatory power regarding
 differences in forecast accuracy than the commonly applied effort measure.
 Additionally, it can address research questions that cannot be examined
 with a firm-specific measure. It provides a simple but comprehensive way
 to identify accurate analysts.
Journal: European Accounting Review 
Pages: 129-146 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 5 
X-DOI: 10.1080/09638180.2014.909291 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.909291 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: John Shon 
Author-X-Name-First: John 
Author-X-Name-Last: Shon 
Author-Name: Meng Yan 
Author-X-Name-First: Meng 
Author-X-Name-Last: Yan 
Title: R&D Cuts and Subsequent Reversals: Meeting or Beating Quarterly Analyst Forecasts 
Abstract:
 Among firms that meet or beat earnings expectations, we find that cuts to
 R&D spending are more prevalent in Q4 relative to other interim quarters.
 This is consistent with the relative costs of real-activities management
 (accruals-based earnings management) decreasing (increasing) in Q4 due to
 the annual audit. More importantly, we find that the subsequent reversal
 of such R&D cuts is more prevalent and economically more significant
 following Q4 cuts relative to the reversals that follow cuts in other
 interim quarters. Our findings suggest that examination at the quarterly
 level (rather than annual level) lends new insights into the current
 debate regarding the prevalence of potentially value-destroying R&D cuts
 that managers make. Indeed, our findings suggest that some cuts may merely
 be temporary deferrals of R&D outlays.
Journal: European Accounting Review 
Pages: 147-166 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 5 
X-DOI: 10.1080/09638180.2014.899919 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.899919 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:24:y:2015:i:1:p:147-166




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Coronella 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Coronella 
Author-Name: Massimo Sargiacomo 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Sargiacomo 
Author-Name: Stephen P. Walker 
Author-X-Name-First: Stephen P. 
Author-X-Name-Last: Walker 
Title: Unification and Dual Closure in the Italian Accountancy Profession, 1861-1906 
Abstract:
 Drawing on Parkin's [<italic>Marxism and class theory: A bourgeois
 critique</italic>. London: Tavistock Publications] concept of dual
 closure, this paper examines the attempt to secure the regulation of the
 accountancy profession in post-unification Italy. The state's
 establishment of a class of 'expert accountants' in 1865 represented an
 imperfect closure of the profession. In consequence, a chain of closure
 attempts ensued. These ventures involved shifting constructions of
 dominant and subordinate occupational groups and the deployment of diverse
 strategies to achieve usurpationary and exclusionary forms of closure. The
 study reveals that the achievement of state regulation of the profession
 in 1906 reflected the successful pursuit of usurpationary closure by a
 subordinated group within the accountancy field. However, it also points
 to the failure of the profession's efforts to make incursions into the
 jurisdictions of higher status occupations, especially lawyers, who
 wielded considerable sociopolitical power in newly unified Italy.
 Consistent with the findings of previous studies, the paper confirms the
 complexity and uncertain outcomes of closure projects in the accountancy
 profession.
Journal: European Accounting Review 
Pages: 167-197 
Issue: 1 
Volume: 24 
Year: 2015 
Month: 5 
X-DOI: 10.1080/09638180.2014.964279 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.964279 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:1:p:167-197




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Davila 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Davila 
Author-Name: George Foster 
Author-X-Name-First: George 
Author-X-Name-Last: Foster 
Author-Name: Ning Jia 
Author-X-Name-First: Ning 
Author-X-Name-Last: Jia 
Title: The Valuation of Management Control Systems in Start-Up Companies: International Field-Based Evidence 
Abstract:
 The question of whether management control systems (MCSs) adopted by
 start-up companies are valuable is examined. We investigate an
 international sample of start-ups, including their detailed MCS adoptions
 and financing histories. We find that higher MCS intensity, which is
 measured as the number of systems adopted at year-end immediately prior to
 the financing round, has a positive impact on company value. We also find
 that equity financiers value MCS more than do debt financiers. The
 valuation implication is more pronounced for start-up companies operating
 in highly competitive environments and with higher growth. We also
 document a positive relation between change in MCS intensity and change in
 firm value. Additional analyses show that higher company valuation is
 found for companies that align their MCS choices with their strategic
 positioning. In particular, systems that implement strategy are perceived
 to be more important and valuable than others. Overall, our paper provides
 new evidence for the debate concerning the merits of formal control in
 start-up companies.
Journal: European Accounting Review 
Pages: 207-239 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638180.2014.965720 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.965720 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:2:p:207-239




Template-Type: ReDIF-Article 1.0
Author-Name: Ivar Friis 
Author-X-Name-First: Ivar 
Author-X-Name-Last: Friis 
Author-Name: Allan Hansen 
Author-X-Name-First: Allan 
Author-X-Name-Last: Hansen 
Author-Name: Tam�s V�mosi 
Author-X-Name-First: Tam�s 
Author-X-Name-Last: V�mosi 
Title: On the Effectiveness of Incentive Pay: Exploring Complementarities and Substitution between Management Control System Elements in a Manufacturing Firm 
Abstract:
 Extant research already emphasises that complementarities and substitution
 involving incentive pay and other elements of an organisation's management
 control system play an important role in terms of explaining the
 effectiveness of incentive systems. Despite this awareness calls continue
 for more research addressing the need to better understand how
 interdependencies arise among management control system elements and how
 they affect organisational effectiveness. Based on an in-depth case study
 on the implementation of a new incentive system in a manufacturing firm,
 we seek to provide more research and insight into how incentive pay
 features in complementary and substitutional relationships in an
 individual organisational setting. Greater insight can help illustrate how
 complementary and substitutional relationships unfold in even more complex
 ways than current research indicates, as well as how the effectiveness of
 the incentive system in the individual organisational setting is
 determined by these relationships.
Journal: European Accounting Review 
Pages: 241-276 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638180.2014.976055 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.976055 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:2:p:241-276




Template-Type: ReDIF-Article 1.0
Author-Name: Hans Englund 
Author-X-Name-First: Hans 
Author-X-Name-Last: Englund 
Author-Name: Jonas Gerdin 
Author-X-Name-First: Jonas 
Author-X-Name-Last: Gerdin 
Title: Developing Enabling Performance Measurement Systems: On the Interplay Between Numbers and Operational Knowledge 
Abstract:
 Performance measurement systems (PMSs) are generally regarded to serve the
 needs of top managers. However, a growing literature has started to
 explore what it takes for these systems to be(come) enabling also for
 those whose performance is being measured. In this paper, we build on and
 add to this literature by providing ethnographic insights into how and why
 a group of middle-managers transformed a set of performance measures,
 initially developed as monitoring devices for top management, into a
 so-called enabling PMS. Regarding how this came about, we elaborate on how
 actors mobilised two different forms of mental models of the operations
 (specific and generalised), and a set of number-to-number tactics, as
 important means in their development work. Regarding the why-question, we
 identify a high evaluation pressure from top management, in combination
 with recurrent reconstructions of the existing mental models of
 operations, as important conditions that worked to initiate, fuel, and,
 eventually, cease the process.
Journal: European Accounting Review 
Pages: 277-303 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638180.2014.918517 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.918517 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:24:y:2015:i:2:p:277-303




Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid Jeacle 
Author-X-Name-First: Ingrid 
Author-X-Name-Last: Jeacle 
Title: Fast Fashion: Calculative Technologies and the Governance of Everyday Dress 
Abstract:
 The speed at which contemporary fashion changes is such that the life of a
 garment can now be measured in a matter of weeks rather than months. The
 organisational consequences of operating in this environment are that
 fashion retailers have been prompted to adopt a range of quick response
 (QR) initiatives. QR involves responding promptly to the information
 contained within emerging sales trends while simultaneously accelerating
 the movement of product from factory to shop shelf. Drawing on the case of
 a UK fashion chain, this paper explores accounting's role in enacting QR.
 In addition, by deploying the theoretical framework of governmentality
 [Miller, P., & Rose, N. (1990). Governing economic life. <italic>Economy
 and Society</italic>, <italic>19</italic>(1), 1-31; Rose, N., & Miller, P.
 (1992). Political power beyond the state: Problematics of government.
 <italic>British Journal of Sociology</italic>, <italic>43</italic>(2),
 173-205], the paper highlights the role of calculative technologies in the
 creation and sustenance of fast fashion and hence the governance of
 everyday dress.
Journal: European Accounting Review 
Pages: 305-328 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638180.2014.921573 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.921573 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:24:y:2015:i:2:p:305-328




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaotao (Kelvin) Liu 
Author-X-Name-First: Xiaotao (Kelvin) 
Author-X-Name-Last: Liu 
Author-Name: Yue (May) Zhang 
Author-X-Name-First: Yue (May) 
Author-X-Name-Last: Zhang 
Title: Effects of Target Timing and Contract Frame on Individual Performance 
Abstract:
 This study experimentally examines the effects of target timing and
 contract frame on individual performance. We study four target-based
 incentive contracts, categorised by when participants learn the
 performance target (<italic>ex ante</italic>, or before production starts,
 vs. <italic>ex post</italic>, or after production ends) and how the
 incentive contract is framed (bonus vs. penalty). The performance target
 in this study is determined by a peer group's average productivity. We
 find that performance is significantly higher for bonus-framed contracts
 when the performance target is revealed <italic>ex post</italic>, as
 opposed to <italic>ex ante</italic>. In contrast, revealing the peer-based
 performance target <italic>ex ante</italic> or <italic>ex post</italic>
 has no impact on performance for penalty-framed contracts. We also find
 that the <italic>ex post</italic>, bonus-framed contract significantly
 outperforms the other three contracts. This finding supports
 practitioners' claim that employers should reward (as opposed to punish)
 individuals based on their performance, relative to that of their peers,
 <italic>ex post</italic>.
Journal: European Accounting Review 
Pages: 329-345 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638180.2014.942337 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.942337 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:2:p:329-345




Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Audousset-Coulier 
Author-X-Name-First: Sophie 
Author-X-Name-Last: Audousset-Coulier 
Title: Audit Fees in a Joint Audit Setting 
Abstract:
 This paper uses the uniqueness of the French audit environment to conduct
 an in-depth study of audit pricing issues associated with the requirement
 to hire two independent auditors (joint audit). I use a model derived from
 Simunic's [(1980). The pricing of audit services: Theory and evidence.
 <italic>Journal of Accounting Research</italic>, <italic>18</italic>(1),
 161-190] seminal work to examine to what extent audit fees are influenced
 by the number of Big 4 joint auditors (zero, one, or two). After
 controlling for well-known drivers of audit fees that are specific to
 audit client firms (size, complexity, and risk), for governance
 characteristics and for auditor selection, the paper shows that the
 decision to hire two Big 4 auditors as joint auditors does not require the
 payment of a higher Big 4 premium compared to the choice of one Big 4
 auditor paired with a smaller auditor, other things being equal. The
 choice of two Big 4 auditors thus appears to be a rational economic choice
 for large and international firms.
Journal: European Accounting Review 
Pages: 347-377 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638180.2014.892787 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.892787 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:2:p:347-377




Template-Type: ReDIF-Article 1.0
Author-Name: Marta Silva Guerreiro 
Author-X-Name-First: Marta Silva 
Author-X-Name-Last: Guerreiro 
Author-Name: L&uacute;cia Lima Rodrigues 
Author-X-Name-First: L&uacute;cia Lima 
Author-X-Name-Last: Rodrigues 
Author-Name: Russell Craig 
Author-X-Name-First: Russell 
Author-X-Name-Last: Craig 
Title: Institutional Change of Accounting Systems: The Adoption of a Regime of Adapted International Financial Reporting Standards 
Abstract:
 This study combines Dillard et al.'s [(2004). The making and remaking of
 organization context: Duality and the institutionalization process.
 <italic>Accounting, Auditing & Accountability Journal</italic>,
 <italic>17</italic>(4), 506-542] institutional change model with
 institutional entrepreneurship theory. The aim is to enhance understanding
 of institutional change processes when a country adopts international
 accounting standards. For empirical support, we focus on the changes in
 social structures and accounting practices that arose in 2010 when
 Portugal replaced its national accounting system for unlisted companies,
 with a new system of accounting based on International Financial Reporting
 Standards. We reveal how an evolving socio-economic and political context,
 and the embedding of central actors in multiple fields, facilitated
 entrepreneurial action by actors who took political opportunity, mobilised
 important allies, and accommodated the interests of major protagonists. We
 draw attention to the possibility of an earlier inversion of the cascading
 institutionalisation process than is envisaged by Dillard et al. (2004).
 At the organisational field level, we highlight how national professional
 accounting associations and business associations can shape criteria
 established at the political and economic level, thereby counteracting the
 institutionalisation process. At the organisational level, we focus on the
 accounting standard for small and medium-sized entities. We provide
 insights to why some accountants maintained structures of meaning
 associated with the previous accounting system.
Journal: European Accounting Review 
Pages: 379-409 
Issue: 2 
Volume: 24 
Year: 2015 
Month: 6 
X-DOI: 10.1080/09638180.2014.887477 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.887477 
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Handle: RePEc:taf:euract:v:24:y:2015:i:2:p:379-409




Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Kang Chen 
Author-X-Name-First: Tsung-Kang 
Author-X-Name-Last: Chen 
Author-Name: Yijie Tseng 
Author-X-Name-First: Yijie 
Author-X-Name-Last: Tseng 
Author-Name: Yu-Ting Hsieh 
Author-X-Name-First: Yu-Ting 
Author-X-Name-Last: Hsieh 
Title: Real Earnings Management Uncertainty and Corporate Credit Risk 
Abstract:
 This study examines the accounting information uncertainty effects on
 corporate credit risk from the perspective of real earnings management
 (RM) activities by investigating 9565 American bond observations from year
 2001 to 2008. The main results show that the volatilities of RM activities
 significantly and positively affect corporate bond yield spreads when
 well-known bond spread determinant variables are controlled. In addition,
 the results are robust to alternative model specifications, including the
 suspect firm analyses, another less ambiguous measure of abnormal cash
 flows from operations, and abnormal production cost analyses in
 manufacturing industry or with control of the input price variation. This
 research also finds that the positive effects of RM volatilities become
 weaker if a firm has a lower credit rating. Finally, our results remain
 hold with considering endogeneity issues and analyst characteristic
 variables and for another estimation period of RM volatilities.
Journal: European Accounting Review 
Pages: 413-440 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2014.918518 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.918518 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:413-440




Template-Type: ReDIF-Article 1.0
Author-Name: Tanya Y.H. Tang 
Author-X-Name-First: Tanya Y.H. 
Author-X-Name-Last: Tang 
Title: Does Book-Tax Conformity Deter Opportunistic Book and Tax Reporting? An International Analysis 
Abstract:
 This paper examines whether book-tax conformity (i.e. reducing the gap
 between financial and taxable incomes) can restrain managers from
 opportunistically reporting financial profits and taxable income.
 Empirical work on this relation so far is limited and provides
 contradictory results. Using publicly available financial statements from
 1994 to 2007 for 16,739 firms across 32 countries, I construct a new proxy
 for mandatory conformity and document that high book-tax conformity is
 associated with lower levels of earnings management and tax avoidance.
 These results persist even after controlling for firm characteristics and
 institutional factors, such as legal enforcement, investor protection,
 legal systems, capital market development, and the adoption of
 International Financial Reporting Standards (IFRS). Additional tests
 reveal that the deterrent effect of conformity on earnings management is
 more pronounced in code-law countries but does not differ between IFRS and
 non-IFRS adopters, and between developed and developing capital markets.
Journal: European Accounting Review 
Pages: 441-469 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2014.932297 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.932297 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:441-469




Template-Type: ReDIF-Article 1.0
Author-Name: Jacqueline Wenjie Wang 
Author-X-Name-First: Jacqueline Wenjie 
Author-X-Name-Last: Wang 
Author-Name: Wayne W. Yu 
Author-X-Name-First: Wayne W. 
Author-X-Name-Last: Yu 
Title: The Information Content of Stock Prices, Legal Environments, and Accounting Standards: International Evidence 
Abstract:
 In this paper, we investigate the impact of accounting standards on the
 information content of stock prices using a sample of 44 countries from
 around the world. We find that the adoption of International Financial
 Reporting Standards or US Generally Accepted Accounting Principles per se
 does not make stock prices more informative, but that better accounting
 standards are helpful only in countries having effective legal
 environments. In particular, we find a significantly negative relationship
 between stock price synchronicity and the quality of accounting standards
 in countries with a common-law legal origin and generally better
 shareholder protection. Our findings are consistent with the theoretical
 prediction in Zhang [(2013). Accounting standards, cost of capital,
 resource allocation, and welfare in a large economy. <italic>The
 Accounting Review</italic>, <italic>88</italic>(4), 1459-1488] that
 improving accounting standards effectively would increase social welfare
 in general.
Journal: European Accounting Review 
Pages: 471-493 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2014.977802 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.977802 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:471-493




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Bricker 
Author-X-Name-First: Robert 
Author-X-Name-Last: Bricker 
Author-Name: Garen Markarian 
Author-X-Name-First: Garen 
Author-X-Name-Last: Markarian 
Title: Institutional Investors and Insider Trading Profitability 
Abstract:
 This study examines the relationship between institutional ownership and
 the profitability of insider trading. A priori the relationship is not
 clear. On the one hand, institutions possess superior information that
 erodes insider advantages and are also active in monitoring. On the other
 hand, institutions could treat insider trading as an incentivizing
 mechanism to induce manager effort, leading to improved aggregate
 shareholder welfare. The results indicate that, on average, institutional
 ownership is negatively related to the profitability of insider trading,
 and this relationship derives from both direct monitoring and
 trading/pricing. Further analysis indicates that this relationship is
 concentrated for insider sales. In contrast, the findings reveal a
 positive relationship between institutions and the profitability of
 insider purchases, indicating an incentivizing role.
Journal: European Accounting Review 
Pages: 495-518 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2015.1040045 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1040045 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:495-518




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Beccalli 
Author-X-Name-First: Elena 
Author-X-Name-Last: Beccalli 
Author-Name: Peter Miller 
Author-X-Name-First: Peter 
Author-X-Name-Last: Miller 
Author-Name: Ted O'leary 
Author-X-Name-First: Ted 
Author-X-Name-Last: O'leary 
Title: How Analysts Process Information: Technical and Financial Disclosures in the Microprocessor Industry 
Abstract:
 Following Bradshaw ('Analyst information processing, financial regulation,
 and academic research' [2009], and <italic>Analysts' forecasts: What do we
 know after decades of work?</italic> [2011]), this paper examines
 <italic>how</italic> analysts process information, particularly in an
 information environment characterised by multiple and potentially
 complementary information sources. The setting is the microprocessor
 industry, one in which technical information is particularly significant
 and complex to digest. Based on 3837 analyst earnings-forecast revisions,
 issued by 134 analysts, we examine quantitatively the speed, magnitude,
 and information content of the reactions of individual analysts and
 subgroups of analysts to both periodic and timely technical disclosures,
 and as a complement to periodic financial disclosure. We find that
 analysts are much slower to react to timely technical disclosures than
 they are to periodic financial disclosures. We find also that technical
 and financial disclosures complement each other. Furthermore, we find that
 there is a 'hierarchy' of analysts in this particular industry, as
 evidenced through the strength of reaction to timely technical
 disclosures. Finally, we find that lower speed in reacting to timely
 technical disclosures and a higher intensity in the use of timely
 technical disclosure (in conjunction with periodic financial disclosure)
 result in greater accuracy, and that more experienced analysts tend to be
 less accurate. We suggest that the findings may have implications for
 other industries such as Bio-Tech Pharma.
Journal: European Accounting Review 
Pages: 519-549 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2014.969526 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.969526 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:519-549




Template-Type: ReDIF-Article 1.0
Author-Name: Peter M. Clarkson 
Author-X-Name-First: Peter M. 
Author-X-Name-Last: Clarkson 
Author-Name: Yue Li 
Author-X-Name-First: Yue 
Author-X-Name-Last: Li 
Author-Name: Matthew Pinnuck 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Pinnuck 
Author-Name: Gordon D. Richardson 
Author-X-Name-First: Gordon D. 
Author-X-Name-Last: Richardson 
Title: The Valuation Relevance of Greenhouse Gas Emissions under the European Union Carbon Emissions Trading Scheme 
Abstract:
 This study examines the valuation relevance of greenhouse gas emissions
 under the European Union Carbon Emissions Trading Scheme. We posit that
 carbon emissions affect firm valuation only to the extent that a firm's
 emissions exceed its carbon allowances under a cap-and-trade system and
 the extent of its inability to pass on carbon-related compliance costs to
 consumers and end-users. We measure a firm's ability to pass on the future
 costs by its market power and its carbon performance relative to its
 industry peers. The results show that firms' carbon allowances are not
 associated with firm valuation but the allocation shortfalls are
 negatively associated. We also find that the negative association between
 firm values and carbon emission shortfalls is mitigated for firms with
 better carbon performance relative to their industry peers and for firms
 in less competitive industry sectors. These findings, which suggest that
 the valuation impact of carbon emissions is unlikely to be homogenous
 across firms or industrial sectors, have important implications for future
 research design and for the disclosure and recognition of a firm's
 greenhouse gas liabilities.
Journal: European Accounting Review 
Pages: 551-580 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2014.927782 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.927782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:551-580




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Bigus 
Author-X-Name-First: Jochen 
Author-X-Name-Last: Bigus 
Title: Loss Aversion, Audit Risk Judgments, and Auditor Liability 
Abstract:
 I investigate how different legal regimes affect auditor's effort and
 investors' investment decisions when the auditor is subject to probability
 weighting and loss aversion, which are two important characteristics of
 Prospect Theory. Probability weighting encourages an auditor to overrate
 the audit risk and the likelihood of damages leading to inflated audit
 fees which could help to explain the BigN audit-fee premium. With loss
 aversion, an auditor is sensitive to the risk of damage compensation and,
 thus, tends to exert excessive caution which also generates excessive
 audit fees. Consequently, investors may choose not to hire an auditor and,
 as a result, may forego an otherwise profitable investment. These effects
 are more intense with a strict liability regime than with a negligence
 rule because with the latter, the auditor is not held liable when due care
 has been exerted. This removes the risk of incurring losses. The paper
 highlights the robustness of the negligence regime when preferences are
 unobservable.
Journal: European Accounting Review 
Pages: 581-606 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2014.899920 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.899920 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:581-606




Template-Type: ReDIF-Article 1.0
Author-Name: Kim Ittonen 
Author-X-Name-First: Kim 
Author-X-Name-Last: Ittonen 
Author-Name: Karla Johnstone 
Author-X-Name-First: Karla 
Author-X-Name-Last: Johnstone 
Author-Name: Emma-Riikka Myllym�ki 
Author-X-Name-First: Emma-Riikka 
Author-X-Name-Last: Myllym�ki 
Title: Audit Partner Public-Client Specialisation and Client Abnormal Accruals 
Abstract:
 We examine the association of Big 4 audit partners' public-client
 specialisation with client companies' audit quality. Using a sample of
 NASDAQ OMX companies in Finland, we identify the audit partner assigned to
 each public-client engagement. We expect that partners with greater
 public-client specialisation provide higher quality auditing, since they
 have likely developed deep domain-specific knowledge and a keen sense of
 the litigation and reputational risks posed by public clients. In
 addition, the willingness to resist client pressure likely increases with
 the number of public clients in the partner's portfolio because dependence
 on any one client diminishes, which should help to ensure audit quality.
 The results show that public-client specialisation is negatively
 associated with abnormal accruals, and this result is attributable to
 audit partners with three to six public clients. The results of
 supplemental tests imply that public-client specialisation is more
 important when general auditing experience is lower. Further, the results
 reveal that in our setting of high-tax and high alignment between
 financial reporting and tax reporting, greater public-client
 specialisation is particularly associated with smaller income-decreasing
 abnormal accruals, suggesting that auditors with greater public-client
 specialisation likely recognise the downside reputational implications and
 achieve audit quality by discouraging tax avoidance.
Journal: European Accounting Review 
Pages: 607-633 
Issue: 3 
Volume: 24 
Year: 2015 
Month: 9 
X-DOI: 10.1080/09638180.2014.906315 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.906315 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:3:p:607-633




Template-Type: ReDIF-Article 1.0
Author-Name: Ana M. Albuquerque 
Author-X-Name-First: Ana M. 
Author-X-Name-Last: Albuquerque 
Author-Name: Mary Ellen Carter 
Author-X-Name-First: Mary Ellen 
Author-X-Name-Last: Carter 
Author-Name: Luann J. Lynch 
Author-X-Name-First: Luann J. 
Author-X-Name-Last: Lynch 
Title: Court Intervention as a Governance Mechanism over CEO Pay: Evidence from the Citigroup Derivative Lawsuit 
Abstract:
 We use an unanticipated court ruling in a lawsuit against Citigroup
 claiming corporate waste related to CEO pay to analyse court intervention
 as an alternative governance mechanism in cases of excess pay. We find a
 negative relation between announcement returns and excess pay, consistent
 with shareholders of these firms perceiving court intervention as net
 costly. However, we find a positive relation between announcement returns
 and excess pay accompanied by poor performance, suggesting that
 intervention is welcome when pay is more egregious. Finally, we find that
 firms with excess pay and whose shareholders welcome intervention reduce
 future pay relative to other firms, suggesting that the threat of court
 intervention is a potential mechanism to control excess pay.
Journal: European Accounting Review 
Pages: 637-658 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638180.2014.937348 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.937348 
File-Format: text/html
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Handle: RePEc:taf:euract:v:24:y:2015:i:4:p:637-658




Template-Type: ReDIF-Article 1.0
Author-Name: J�rg-Markus Hitz 
Author-X-Name-First: J�rg-Markus 
Author-X-Name-Last: Hitz 
Author-Name: Stephanie M�ller-Bloch 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: M�ller-Bloch 
Title: Market Reactions to the Regulation of Executive Compensation 
Abstract:
 This paper investigates equity market reactions to the regulation of
 executive compensation. We exploit a natural experimental setting in
 Germany, where recent legislation introduces restrictions on the amount
 and on the components of board executive compensation packages, and
 invokes liability for the supervisory board in case of inappropriate
 remuneration arrangements. We use this exogenous shock to the contracting
 environment to infer market perceptions of the usefulness of the
 regulation. Using event study methodology, we investigate market reactions
 for the first-time announcement of regulatory intent and for a pooled
 sample of seven events leading to the adoption of the law act. We find
 weak evidence of an average negative market reaction to the proposed
 regulation. Multivariate analyses reveal that firms which were
 particularly affected by the regulation because board members received
 high abnormal remuneration experienced larger stock price discounts on
 average. Consistent with this, we find a positive relation between
 pay-performance sensitivity and the equity market reaction. Taken
 together, these findings indicate that the regulation was not considered
 beneficial from a shareholder perspective. This result is consistent with
 the market perceiving the regulation of executive compensation to impose
 potentially inefficient contractual arrangements for some firms.
Journal: European Accounting Review 
Pages: 659-684 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638180.2015.1012222 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1012222 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Sauset 
Author-X-Name-First: Johannes 
Author-X-Name-Last: Sauset 
Author-Name: Phillip Waller 
Author-X-Name-First: Phillip 
Author-X-Name-Last: Waller 
Author-Name: Michael Wolff 
Author-X-Name-First: Michael 
Author-X-Name-Last: Wolff 
Title: CEO Contract Design Regulation and Risk-Taking 
Abstract:
 Since 2009, the European Commission (EC) requires firms to incorporate an
 array of new elements into CEO compensation contracts, such as bonus caps,
 claw back provisions, bonus deferral, performance-vesting, and minimum
 shareholding guidelines. This paper examines whether CEO contract design
 in line with the EC principles reduces risk-taking and its economic
 consequences. Using hand-collected contract design data of 763 firm-years
 from European listed non-financial firms, we construct an index that
 reflects a firm's contract fit with the EC principles. Complemented by
 hand-collected data of national regulatory changes consistent to the EC
 principles, we employ the regime shift as quasi-experiment. We find that
 CEOs rewarded under contracts more in line with the principles choose
 lower risk profiles with respect to their country peers by divergent
 reductions of idiosyncratic and systematic risk-taking. Moreover,
 intensity of change of the regulatory environment negatively affects
 systematic risk-taking. Furthermore, we find CEOs compensated under
 contracts more adhering to the principles lead to increased subsequent
 risk-adjusted performance.
Journal: European Accounting Review 
Pages: 685-725 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638180.2015.1071275 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1071275 
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Template-Type: ReDIF-Article 1.0
Author-Name: Walid Alissa 
Author-X-Name-First: Walid 
Author-X-Name-Last: Alissa 
Title: Boards' Response to Shareholders' Dissatisfaction: The Case of Shareholders' Say on Pay in the UK 
Abstract:
 In 2002, the UK adopted a regulation allowing shareholders to cast
 non-binding (advisory) votes on their firm's Directors' Remuneration
 Report during annual general meetings (the 'Say-on-Pay' rule). This study
 evaluates a decade of this regulation and examines how it affected the
 behavior of shareholders and boards in a sample of Financial Times Stock
 Exchange 350 firms during the period 2002-2012. I find evidence that
 shareholder dissatisfaction increases with excess Chief Executive Officer
 (CEO) compensation. This relationship does not exist for the expected
 level of compensation, suggesting that shareholders take a sophisticated
 approach when casting their vote. Boards do not appear to respond to
 shareholder dissatisfaction systematically; however, they do respond
 selectively by reducing the excessiveness of CEO compensation when
 performance is poor. Boards also seem to respond swiftly to shareholder
 dissatisfaction. There is evidence that the probability of CEO turnover
 increases with shareholder dissatisfaction. Overall, the evidence suggests
 that 'Say-on-Pay' regulation addressed regulatory concerns about
 transparency, accountability, and performance linkage.
Journal: European Accounting Review 
Pages: 727-752 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638180.2015.1058719 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1058719 
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Template-Type: ReDIF-Article 1.0
Author-Name: Reggy Hooghiemstra 
Author-X-Name-First: Reggy 
Author-X-Name-Last: Hooghiemstra 
Author-Name: Yu Flora Kuang 
Author-X-Name-First: Yu Flora 
Author-X-Name-Last: Kuang 
Author-Name: Bo Qin 
Author-X-Name-First: Bo 
Author-X-Name-Last: Qin 
Title: Say-on-Pay Votes: The Role of the Media 
Abstract:
 We investigate the association between the media coverage of firms' CEO
 pay packages and subsequent shareholder voting on say-on-pay resolutions,
 and find that negative media coverage is able to predict shareholder
 discontent over say on pay. When we divide media coverage into coverage in
 the financial and business press versus coverage in the general press, we
 find that shareholder voting on say-on-pay resolutions is mainly
 associated with the articles from the financial and business press. This
 suggests that the media cannot be considered a homogeneous information
 source that is equally able to predict shareholders' voting behaviors. As
 such, our findings have important implications for studies on the role of
 the media in corporate governance.
Journal: European Accounting Review 
Pages: 753-778 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638180.2015.1034152 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1034152 
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Template-Type: ReDIF-Article 1.0
Author-Name: Brian Cadman 
Author-X-Name-First: Brian 
Author-X-Name-Last: Cadman 
Author-Name: Linda Vincent 
Author-X-Name-First: Linda 
Author-X-Name-Last: Vincent 
Title: The Role of Defined Benefit Pension Plans in Executive Compensation 
Abstract:
 Although defined benefit (DB) pension plans constitute a significant
 portion of both annual compensation and firm-related wealth for many CEOs,
 prior studies of CEO compensation contracts generally exclude these plans
 from their analyses due to lack of data. Taking advantage of recently
 increased disclosure requirements, we analyse the role of DB pension plans
 in these contracts. We find that firms with CEO DB pension plans grant the
 CEO annual compensation that is larger than predicted by economic
 determinants. We also find that more powerful CEOs, identified by their
 extraordinary pension benefits, receive higher total pay in addition to
 the pension benefits. We find no evidence that CEO pension benefits
 contribute to the pay-for-performance sensitivity of the annual pay.
Journal: European Accounting Review 
Pages: 779-800 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638180.2014.959979 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.959979 
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Template-Type: ReDIF-Article 1.0
Author-Name: Shai Levi 
Author-X-Name-First: Shai 
Author-X-Name-Last: Levi 
Author-Name: Benjamin Segal 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Segal 
Title: The Impact of Debt-Equity Reporting Classifications on the Firm's Decision to Issue Hybrid Securities 
Abstract:
 We test the influence of classification of securities into liabilities and
 equity on firms' financing choices, using as our setting the change in
 reporting classification of hybrid securities following SFAS 150. We find
 that this change affected the decision of firms to issue mandatorily
 redeemable preferred shares (MRPS). Following the requirement that firms
 classify the debt-like hybrid security MRPS as a liability, the share of
 MRPS issuances in firms' new financing declined. Characteristics of firms
 issuing MRPS also changed. While prior to SFAS 150 firms with higher
 levels of debt and lower coverage ratios chose to issue MRPS and not debt,
 after its adoption, the decision to issue MRPS is no longer related to
 firms' pre-existing debt and coverage levels. Furthermore, our results
 indicate that before SFAS 150 managers were willing to bear the higher
 issuance fees of MRPS and chose to issue these debt-like hybrid securities
 over cheaper debt. The requirement to classify debt-like hybrids as a
 liability took away the reporting incentives for issuance and made these
 securities a less popular financing vehicle.
Journal: European Accounting Review 
Pages: 801-822 
Issue: 4 
Volume: 24 
Year: 2015 
Month: 12 
X-DOI: 10.1080/09638180.2014.909290 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.909290 
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Template-Type: ReDIF-Article 1.0
Author-Name: Herv&#xe9; Stolowy 
Author-X-Name-First: Herv&#xe9; 
Author-X-Name-Last: Stolowy 
Title: Letter from the Incoming Editor of the <italic>European Accounting Review</italic> 
Journal: European Accounting Review 
Pages: 1-5 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2016.1162466 
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1162466 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kris Hardies 
Author-X-Name-First: Kris 
Author-X-Name-Last: Hardies 
Author-Name: Diane Breesch 
Author-X-Name-First: Diane 
Author-X-Name-Last: Breesch 
Author-Name: Jo&#xeb;l Branson 
Author-X-Name-First: Jo&#xeb;l 
Author-X-Name-Last: Branson 
Title: Do (Fe)Male Auditors Impair Audit Quality? Evidence from Going-Concern Opinions 
Abstract:
 Recent research indicates that there may be a relationship between the
 characteristics of the audit engagement partner and audit quality. In this
 paper, we examine the relationship between audit quality and the presence
 of a female or male audit engagement partner. We use the likelihood that
 an auditor issues a going-concern opinion (GCO), conditional on the
 client's financial situation, as an indicator of audit quality. Using a
 sample of 7105 financially distressed, private Belgian companies, we find
 that female auditors are, ceteris paribus, more likely to issue GCOs than
 male auditors. Our results also show that this effect is stronger when
 clients are either important (i.e. represent a material portion of the
 auditor's revenues) or high-risk (i.e. associated with increased
 uncertainties and risks). Collectively, these results indicate higher
 audit quality by female auditors.
Journal: European Accounting Review 
Pages: 7-34 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2014.921445 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.921445 
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Template-Type: ReDIF-Article 1.0
Author-Name: Mara Cameran 
Author-X-Name-First: Mara 
Author-X-Name-Last: Cameran 
Author-Name: Annalisa Prencipe 
Author-X-Name-First: Annalisa 
Author-X-Name-Last: Prencipe 
Author-Name: Marco Trombetta 
Author-X-Name-First: Marco 
Author-X-Name-Last: Trombetta 
Title: Mandatory Audit Firm Rotation and Audit Quality 
Abstract:
 In a setting where mandatory audit firm rotation has been effective for
 more than 20 years (i.e. Italy), we analyse changes in audit quality
 during the auditor engagement period. In our research setting, auditors
 are appointed for a three-year period and their term can be renewed twice
 up to a maximum of nine years. Since the auditor has incentives to be
 re-appointed at the end of the first and the second three-year periods, we
 expect audit quality to be lower in the first two three-year periods
 compared to the third (i.e. the last) term. Assuming that a better audit
 quality is associated with a higher level of accounting conservatism, and
 using abnormal working capital accruals as a proxy for the latter, we find
 that the auditor becomes more conservative in the last three-year period,
 i.e. the one preceding the mandatory rotation. These results are confirmed
 using Basu's [1997. The conservatism principle and the asymmetric
 timeliness of earnings. <italic>Journal of Accounting and
 Economics</italic>, <italic>24</italic>(1), 3--37] timely loss recognition
 model. In an additional analysis, we use earnings response coefficients as
 a proxy for investor perception of audit quality, and we observe results
 consistent with an increase in audit quality perception in the last
 engagement period.
Journal: European Accounting Review 
Pages: 35-58 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2014.921446 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.921446 
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Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Ruhnke 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Ruhnke 
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: Changing the Institutional Framework of Statutory Audit: Internal Stakeholders' Perceptions of the Associated Benefit and Costs 
Abstract:
 This paper analyses the expected benefits and costs associated with
 changes to the institutional framework of statutory audits. We focus on
 five changes: Mandatory external audit firm rotation, auditor appointment
 by an independent regulator, a general ban on providing non-audit
 services, a ban on providing non-audit services to audit clients, and
 mandatory joint audits. We survey supervisory board members and management
 representatives from German companies to analyse how these changes affect
 the following beneficial attributes: Client-specific expertise and
 knowledge, general professional competence and expertise, independence and
 professional scepticism, and reputation. Our results show that none of the
 proposed changes is expected to increase the benefit of audits. A ban on
 non-audit services to audit clients is perceived to have the least
 disadvantageous effect, followed by a general ban on non-audit services,
 mandatory external audit firm rotation, appointment by an independent
 regulator, and mandatory joint audits. Although all changes are expected
 to increase auditor independence and professional scepticism, this
 increase is offset by a decrease in other beneficial attributes,
 particularly client-specific expertise and knowledge. Compared to
 supervisory board members, management representatives anticipate
 significantly larger decreases in the benefit of audits and significantly
 larger increases in costs.
Journal: European Accounting Review 
Pages: 59-79 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2014.939683 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.939683 
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Matsui 
Title: Disclosure Policy in a Mixed Market 
Abstract:
 This paper investigates the optimal disclosure strategy for private
 information in a mixed duopoly market, where a state-owned enterprise
 (SOE) and a joint-stock company compete to supply products. I construct a
 model where the two firms compete in either quantity or price, and
 uncertainty is associated with either marginal cost or market demand. The
 model identifies the optimal disclosure strategies that constitute a
 perfect Bayesian equilibrium by type of competition and uncertainty. In
 Cournot competition, both firms disclose information under cost
 uncertainty, while only the SOE or neither firm discloses information
 under demand uncertainty. Alternatively, in Bertrand competition, only the
 joint-stock company discloses information under cost uncertainty or demand
 uncertainty. Recently, developed countries have required the same level of
 disclosure standards for SOEs as for ordinary joint-stock companies. The
 findings described in this paper warn that such mandatory disclosure by
 SOEs can trigger a reaction by joint-stock companies, putting the economy
 at risk of a reduction in welfare.
Journal: European Accounting Review 
Pages: 81-107 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2014.977801 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.977801 
File-Format: text/html
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Template-Type: ReDIF-Article 1.0
Author-Name: Elena Giovannoni 
Author-X-Name-First: Elena 
Author-X-Name-Last: Giovannoni 
Author-Name: Sonia Quarchioni 
Author-X-Name-First: Sonia 
Author-X-Name-Last: Quarchioni 
Author-Name: Angelo Riccaboni 
Author-X-Name-First: Angelo 
Author-X-Name-Last: Riccaboni 
Title: The Role of <italic>Roles</italic> in Risk Management Change: The Case of an Italian Bank 
Abstract:
 This paper explores the role of <italic>roles</italic> (i.e. groups of
 actors characterised by the same functional tasks within an organisation),
 and of their interactions, within processes of change in risk management
 (RM). By combining insights from the literature on RM and from
 institutional studies, this paper suggests that change in RM can be
 interpreted as a process that involves both enabling and precipitating
 dynamics [Greenwood, R., & Hinings, C. R. (1996). Understanding radical
 organizational change: Bringing together the old and the new
 institutionalism. <italic>The Academy of Management Review, 21</italic>,
 1022--1054. doi:<ext-link xmlns:xlink="http://www.w3.org/1999/xlink"
 ext-link-type="uri"
 xlink:href="http://dx.doi.org/10.5465/AMR.1996.9704071862">10.5465/AMR.199
 6.9704071862</ext-link>] between different roles. Aiming to address these
 dynamics empirically, we rely on a longitudinal case study of an Italian
 bank. The study shows that the interactions between roles were dependent
 on their respective specific interests, the different institutional
 templates they supported, and the shifts in power for control over
 relevant information. These dynamics both affected and were affected by
 the change in the template-in-use within the bank and allowed a sort of RM
 <italic>ideal</italic> (i.e. the search for <italic>more</italic> RM) to
 persist over evolving templates.
Journal: European Accounting Review 
Pages: 109-129 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2014.990475 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.990475 
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Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Simons 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Simons 
Author-Name: Nicole Zein 
Author-X-Name-First: Nicole 
Author-X-Name-Last: Zein 
Title: Audit Market Segmentation -- The Impact of Mid-tier Firms on Competition 
Abstract:
 This analysis&#x2019; goal is to characterise the impact of mid-tier
 auditors on competition and average supplied audit quality. The major
 result of our analysis is the following: Auditors&#x2019; flexibilities
 with respect to clients&#x2019; complexity determine the offered audit
 quality levels and thus the average supplied audit quality. Defining a
 model-endogenous quality measure, we show that for some instances the
 mid-tier auditor improves average audit quality, but for other instances
 fails to do so. The result could be of special interest for standard
 setters, for example, the European Commission, which is currently revising
 EU audit regulation. Further, the analysis may serve as an instrument to
 analyse economic consequences of future changes of regulation.
Journal: European Accounting Review 
Pages: 131-154 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2014.990476 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.990476 
File-Format: text/html
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Handle: RePEc:taf:euract:v:25:y:2016:i:1:p:131-154




Template-Type: ReDIF-Article 1.0
Author-Name: Beng Wee Goh 
Author-X-Name-First: Beng Wee 
Author-X-Name-Last: Goh 
Author-Name: Jimmy Lee 
Author-X-Name-First: Jimmy 
Author-X-Name-Last: Lee 
Author-Name: Jeffrey Ng 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Ng 
Author-Name: Kevin Ow Yong 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Ow Yong 
Title: The Effect of Board Independence on Information Asymmetry 
Abstract:
 Boards have an important role in ensuring that investors&#x2019; interests
 are protected. Our paper first examines whether the independence of a
 firm's board affects information asymmetry among investors. We provide
 evidence that greater board independence leads to lower information
 asymmetry. Next, we provide evidence that more voluntary disclosure and
 greater analyst coverage are two underlying mechanisms via which greater
 board independence reduces information asymmetry. Of the two mechanisms,
 we find that analyst coverage is more significant in influencing how board
 independence affects information asymmetry. Overall, our paper contributes
 to a better understanding of the effect of board independence on
 information asymmetry.
Journal: European Accounting Review 
Pages: 155-182 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2014.990477 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.990477 
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Template-Type: ReDIF-Article 1.0
Author-Name: Eddy Cardinaels 
Author-X-Name-First: Eddy 
Author-X-Name-Last: Cardinaels 
Author-Name: Yuping Jia 
Author-X-Name-First: Yuping 
Author-X-Name-Last: Jia 
Title: How Audits Moderate the Effects of Incentives and Peer Behavior on Misreporting 
Abstract:
 Classical agency theory argues that economic incentives can have a strong
 impact on opportunistic reporting behavior. On the other hand, behavioral
 literature suggests that agents also adhere to descriptive norms
 established by peers. Most studies examine these effects in isolation,
 ignoring the role of mechanisms that firms use to detect misreporting.
 This research examines if the effects of incentives and descriptive peer
 norms depend on whether the firm uses an audit system to detect
 misreporting. In an experiment, we vary the material payoffs for lying
 (low vs. high compensation rate), the behavior of peers (low vs. high
 honesty), and the use of audits to detect misreporting (audited vs. not
 audited). Results indicate that the effect of peer behavior depends on the
 use of audits. When reporting decisions are audited, descriptive peer
 norms have a strong effect on the level of truthful reporting. We do not
 find evidence indicating that the effect of incentives depends on audits.
 Our findings have important implications for practice. Firms may need to
 consider the use of audits if they want to promote honesty through
 positive peer-established social norms.
Journal: European Accounting Review 
Pages: 183-204 
Issue: 1 
Volume: 25 
Year: 2016 
Month: 5 
X-DOI: 10.1080/09638180.2015.1042889 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1042889 
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Handle: RePEc:taf:euract:v:25:y:2016:i:1:p:183-204




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Carlsson-Wall 
Author-X-Name-First: Martin 
Author-X-Name-Last: Carlsson-Wall 
Author-Name: Kalle Kraus 
Author-X-Name-First: Kalle 
Author-X-Name-Last: Kraus 
Author-Name: Malin Lund 
Author-X-Name-First: Malin 
Author-X-Name-Last: Lund 
Author-Name: Ebba Sj&#xf6;gren 
Author-X-Name-First: Ebba 
Author-X-Name-Last: Sj&#xf6;gren 
Title: &#x2018;Accounting Talk&#x2019; Through Metaphorical Representations: Change Agents and Organisational Change in Home-Based Elderly Care 
Abstract:
 This paper has analysed a change process within an organisation providing
 home-based elderly care. Using a theoretical framework from metaphor
 theory and insights from the literature on &#x2018;accounting
 talk&#x2019;, we followed how metaphorical representations of accounting
 were introduced and developed by the change agent. New core values and
 practices emerged within the home help unit that were in line with the
 ideas and inferences made by these accounting metaphors. The metaphorical
 representations of accounting concepts linked the unfamiliar domain of
 accounting to a more familiar domain, and provided rationales for
 organisational change. Our findings highlight the importance of change
 agents and &#x2018;accounting talk&#x2019; for determining the trajectory
 of organisational change processes. The findings also suggest that
 metaphors are a potentially powerful tool for both changing organisational
 members&#x2019; general understanding of financial issues, and forging
 specific links between accounting concepts and work practices.
Journal: European Accounting Review 
Pages: 215-243 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2014.992921 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.992921 
File-Format: text/html
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Handle: RePEc:taf:euract:v:25:y:2016:i:2:p:215-243




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Andr&#xe9; 
Author-X-Name-First: Paul 
Author-X-Name-Last: Andr&#xe9; 
Author-Name: G&#xe9;Raldine Broye 
Author-X-Name-First: G&#xe9;Raldine 
Author-X-Name-Last: Broye 
Author-Name: Christopher Pong 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Pong 
Author-Name: Alain Schatt 
Author-X-Name-First: Alain 
Author-X-Name-Last: Schatt 
Title: Are Joint Audits Associated with Higher Audit Fees? 
Abstract:
 In its October 2010 Green Paper on audit policy, the European Commission
 suggested that joint audits might be a way of improving the audit market
 in Europe. However, some parties consider that a joint audit system is not
 an efficient solution because the perceived improvements in audit quality,
 if any, are not commensurate with the significant increase in audit fees.
 We compare audit fees paid during the years 2007--2011 by listed companies
 in France, where joint audits are mandatory, with those paid by British
 and Italian companies. Theory suggests that audit fees in countries with
 high investor protection, such as the UK, are likely to be greater than
 those in countries with lower investor protection, such as France and
 Italy, ceteris paribus. However, we find significantly higher audit fees
 in France after controlling for well-documented auditor, client, and
 engagement attributes, which vary across countries. Furthermore, since we
 do not find statistically significant differences in the magnitude of
 abnormal accruals, the higher audit fees observed in France do not appear
 to be associated with higher audit quality.
Journal: European Accounting Review 
Pages: 245-274 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2014.998016 
File-URL: http://hdl.handle.net/10.1080/09638180.2014.998016 
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Template-Type: ReDIF-Article 1.0
Author-Name: Carlo Alberto Magni 
Author-X-Name-First: Carlo Alberto 
Author-X-Name-Last: Magni 
Title: An Average-Based Accounting Approach to Capital Asset Investments: The Case of Project Finance 
Abstract:
 Literature and textbooks on capital budgeting endorse net present value
 (NPV) and generally treat accounting rates of return as not being reliable
 tools. This paper shows that accounting numbers can be reconciled with NPV
 and fruitfully employed in real-life applications. Focusing on project
 finance transactions, an <italic>average return on investment</italic>
 (AROI) is drawn from the pro forma financial statements, obtained as the
 ratio of aggregate income to aggregate book value. We show that such a
 metric correctly captures a project's economic profitability, as long as
 it is compared with a <italic>comprehensive weighted average cost of
 capital</italic> (WACC) that includes a correction factor that takes
 account of the capital foregone by the investors. In contrast to the
 internal rate of return, AROI is unique, and we provide an explicit
 functional relation that links it to the NPV. The approach holds for
 levered and unlevered projects, constant and non-constant leverage ratios,
 and constant and non-constant WACCs.
Journal: European Accounting Review 
Pages: 275-286 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2015.1009143 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1009143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:2:p:275-286




Template-Type: ReDIF-Article 1.0
Author-Name: Fang Gao 
Author-X-Name-First: Fang 
Author-X-Name-Last: Gao 
Author-Name: Yi Dong 
Author-X-Name-First: Yi 
Author-X-Name-Last: Dong 
Author-Name: Chenkai Ni 
Author-X-Name-First: Chenkai 
Author-X-Name-Last: Ni 
Author-Name: Renhui Fu 
Author-X-Name-First: Renhui 
Author-X-Name-Last: Fu 
Title: Determinants and Economic Consequences of Non-financial Disclosure Quality 
Abstract:
 This paper examines the determinants and economic consequences of
 non-financial disclosure quality, which is measured according to the
 ratings of corporate social responsibility (CSR) disclosure provided by
 the Ministry of Economic Affairs in the Netherlands. We find that firms
 with better CSR performance, greater external financing needs, and
 stronger corporate governance tend to provide higher quality CSR
 disclosures. In return, these firms gain greater analyst coverage, higher
 levels of institutional ownership, greater stock liquidity, higher
 valuations in SEOs, and lower yields to maturity in bond issuances. These
 benefits apply largely to firms with strong CSR performance. Collectively,
 our findings suggest that higher quality CSR disclosures deliver economic
 benefits.
Journal: European Accounting Review 
Pages: 287-317 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2015.1013049 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1013049 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:2:p:287-317




Template-Type: ReDIF-Article 1.0
Author-Name: Marika Arena 
Author-X-Name-First: Marika 
Author-X-Name-Last: Arena 
Author-Name: Kim Klarskov Jeppesen 
Author-X-Name-First: Kim Klarskov 
Author-X-Name-Last: Jeppesen 
Title: Practice Variation in Public Sector Internal Auditing: An Institutional Analysis 
Abstract:
 This article aims to analyze the rise of practice variations in public
 sector internal auditing (IA), giving special attention to the role of
 agents&#x2019; embeddedness in multiple institutional arrangements. IA's
 trends of development and the characteristics of the public sector
 context, in fact, make IA inherently subject to multiple institutional
 forces that interact with the system of values and beliefs of individual
 internal auditors. The empirical analysis, which relies on case study
 methodology, highlights the inherent tensions associated with the changing
 role of IA and shows how different types of IA developed in three case
 settings, shaped by the agents&#x2019; embeddedness in different
 institutional fields. This article provides a more comprehensive approach
 to the study of IA adoption and development in public sector organizations
 than previous literature, and it highlights the relevance of the interplay
 between actors&#x2019; contemporary embeddedness in professional systems
 and the focal social system as a relevant source of practice variation. In
 this respect, the case of IA can contribute to previous studies of
 practice variation in the field of management accounting, shedding some
 light on the types of tensions that emerge when persons with mixed
 professional identities are involved in a field.
Journal: European Accounting Review 
Pages: 319-345 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2015.1018917 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1018917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:2:p:319-345




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Ng 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Ng 
Author-Name: Florin P. Vasvari 
Author-X-Name-First: Florin P. 
Author-X-Name-Last: Vasvari 
Author-Name: Regina Wittenberg-Moerman 
Author-X-Name-First: Regina 
Author-X-Name-Last: Wittenberg-Moerman 
Title: Media Coverage and the Stock Market Valuation of TARP Participating Banks<xref ref-type="fn" rid="FN0000"/> 
Abstract:
 We examine the impact of media coverage of the Capital Purchase Program
 (CPP) under the Troubled Assets Relief Program on the equity market
 valuation of participating bank holding companies (CPP banks). We document
 substantial negative coverage of the CPP and its participants over the
 five quarters following the program's initiation. We find that the extent
 of negative media coverage about the CPP exerted substantial downward
 pressure on the stock returns of CPP banks, decreasing their valuation
 relative to bank holding companies not participating in the program. We
 show that our findings cannot be explained by differences in the
 banks&#x2019; financial viability at the CPP's initiation, new information
 about their performance being released to the market after the CPP's
 initiation or preceding stock returns causing the negative media coverage.
 Our findings highlight the importance of investor sentiment, as reflected
 by the tone of media coverage, in banks&#x2019; valuation during a period
 of high uncertainty in financial markets.
Journal: European Accounting Review 
Pages: 347-371 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2015.1029505 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1029505 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:2:p:347-371




Template-Type: ReDIF-Article 1.0
Author-Name: Tami Dinh 
Author-X-Name-First: Tami 
Author-X-Name-Last: Dinh 
Author-Name: Helen Kang 
Author-X-Name-First: Helen 
Author-X-Name-Last: Kang 
Author-Name: Wolfgang Schultze 
Author-X-Name-First: Wolfgang 
Author-X-Name-Last: Schultze 
Title: Capitalizing Research & Development: Signaling or Earnings Management? 
Abstract:
 This paper analyzes the capitalization of Research & Development (R&D)
 expenditures under International Financial Reporting Standards (IFRS).
 Discretionary R&D capitalization can be exercised by managers to signal
 private information on future economic benefits to the market. It can,
 however, also serve as opportunistic earnings management. We analyze a
 unique, hand-collected sample of highly R&D intensive German IFRS firms
 during 1998--2012. We find that market values are not associated with
 capitalized R&D for the overall sample, indicating that earnings
 management may be a concern. We identify firm-years for which R&D
 capitalization is possibly used for pushing their earnings above a
 specific threshold (e.g. analysts' forecasted earnings, prior year's
 earnings). Our results show that both the decision to capitalize and how
 much to capitalize are strongly associated with benchmark beating.
 Consistently, we find that market values are negatively associated with
 capitalized R&D for firms who are likely to use capitalization for
 benchmark beating (about one third of the overall sample). On the other
 hand, the market values R&D capitalization positively for well-performing
 firms, for which capitalizing does not matter to beat an earnings
 benchmark (about half of the overall sample). This finding is robust to
 controls for endogeneity, various deflators, and different measures for
 earnings management.
Journal: European Accounting Review 
Pages: 373-401 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2015.1031149 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1031149 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:2:p:373-401




Template-Type: ReDIF-Article 1.0
Author-Name: Bino Catas&#xfa;s 
Author-X-Name-First: Bino 
Author-X-Name-Last: Catas&#xfa;s 
Author-Name: Paolo Ferri 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Ferri 
Author-Name: Sofi von Laskowski 
Author-X-Name-First: Sofi 
Author-X-Name-Last: von Laskowski 
Title: Accounting and the Hope of Action 
Abstract:
 The paper discusses the role of hope in the construction of an accounting
 technology to realize a program, by looking at a process of choosing
 non-financial indicators in an effort to achieve healthier workplaces. By
 exploring the literature dealing with the concept of hope and by drawing
 on the debate on the relationship between accounting and action, we
 highlight the features of three hope-related concepts (hopelessness,
 na&#xef;ve hope, and reflective hope). We also highlight how these
 concepts relate to different areas of uncertainty (validity, accuracy, and
 relevance) in the development of accounting technologies. Evidence
 collected through particiapant observation of a team involved in the
 construction of indicators offers empirical material to investigate the
 interplay between hopelessness, na&#xef;ve hope, and reflective hope in
 relation to uncertainties concerning the link between accounting and
 action. Beyond analyzing how team members move from a na&#xef;ve to a
 reflective hope in making the accounting--action link, the paper shows
 that among practitioners it is accepted that unintended consequences
 constitute the rule rather than the exception in the accounting--action
 link.
Journal: European Accounting Review 
Pages: 403-419 
Issue: 2 
Volume: 25 
Year: 2016 
Month: 6 
X-DOI: 10.1080/09638180.2016.1147369 
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1147369 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:2:p:403-419




Template-Type: ReDIF-Article 1.0
Author-Name: Thorsten Knauer 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Knauer 
Author-Name: Arnt W&#xf6;hrmann 
Author-X-Name-First: Arnt 
Author-X-Name-Last: W&#xf6;hrmann 
Title: Market Reaction to Goodwill Impairments 
Abstract:
 This paper examines the information content of goodwill write-downs under
 International Accounting Standard (IAS) 36 (Impairment of Assets) and
 Statement of Financial Accounting Standards (SFAS) No. 142. We investigate
 whether the informational value depends on the reliability of the news.
 Using a sample of 564 goodwill write-down announcements issued from 2005
 to 2009, we find a negative capital market reaction to announcements of
 unexpected goodwill write-offs. Our results indicate that investors react
 more negatively when a country's level of legal protection is low and
 allows more management discretion. We further report that market reaction
 is associated with managers explaining the write-down decision and depends
 on the verifiability of these explanations. Investors react more
 negatively when an unverifiable internal explanation is given and less
 negatively when a verifiable external explanation is provided. We do not
 find significant differences between write-down announcements under SFAS
 142 and IAS 36.
Journal: European Accounting Review 
Pages: 421-449 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638180.2015.1042888 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1042888 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:3:p:421-449




Template-Type: ReDIF-Article 1.0
Author-Name: Carlo D'Augusta 
Author-X-Name-First: Carlo 
Author-X-Name-Last: D'Augusta 
Author-Name: Sasson Bar-Yosef 
Author-X-Name-First: Sasson 
Author-X-Name-Last: Bar-Yosef 
Author-Name: Annalisa Prencipe 
Author-X-Name-First: Annalisa 
Author-X-Name-Last: Prencipe 
Title: The Effects of Conservative Reporting on Investor Disagreement 
Abstract:
 We examine whether the level of a firm's conditional conservatism affects
 investor disagreement around earnings announcement dates. Investor
 disagreement is relevant for its repercussions on stock market efficiency.
 However, the literature related to the effect of firms&#x2019; reporting
 policies on disagreement is scant. Prior research suggests that
 conservatism, by requiring higher verifiability of profits, constrains
 earnings overstatements and encourages more complete revelations of
 losses, thus improving the information environment. In this paper, we
 further hypothesize that these effects of conservatism enhance news
 credibility and decrease information asymmetry, particularly for bad news
 announcements. This results in a lower disagreement and improved
 interpretation of earnings news. We consistently find that conservatism
 measures are negatively associated with proxies of announcement-time
 investor disagreement and that this effect is stronger when the firm is
 reporting bad news. Additional analyses indicate that the impact of
 conservatism is stronger when market surprise to the announcement is
 greater, while it is weaker in the presence of frequent and precise
 voluntary disclosure that preempts the earnings announcement. Finally, we
 show that a higher percentage of institutional investors&#x2019; ownership
 and a higher level of commitment to conservatism reinforce the impact of
 the latter.
Journal: European Accounting Review 
Pages: 451-485 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638180.2015.1042890 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1042890 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:3:p:451-485




Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Ewert 
Author-X-Name-First: Ralf 
Author-X-Name-Last: Ewert 
Author-Name: Alfred Wagenhofer 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Wagenhofer 
Title: Why More Forward-Looking Accounting Standards Can Reduce Financial Reporting Quality 
Abstract:
 A premise of standard setters and of much empirical research is that
 improving the quality of accounting standards and their implementation
 increases information in capital markets. This paper challenges this
 premise and shows that there are situations in which
 &#x2018;better&#x2019;, that is, more forward-looking, accounting
 standards reduce the information content of financial reports. The reason
 is that a forward-looking accounting standard affects the smoothness of
 reported earnings, which can conflict with the manager's smoothing
 incentive and her willingness to incorporate private information in the
 financial report. Although the manager could eliminate the effect by
 earnings management, it is too costly to do so. As a consequence, the
 capital market's ability to infer the financial and nonfinancial
 information in reported earnings declines. This finding should increase
 the awareness that an &#x2018;improvement&#x2019; in accounting standards,
 without considering incentives and other information residing in firms,
 can adversely affect the quality of financial reporting.
Journal: European Accounting Review 
Pages: 487-513 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638180.2015.1043927 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1043927 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:3:p:487-513




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Bigus 
Author-X-Name-First: Jochen 
Author-X-Name-Last: Bigus 
Author-Name: Nadine Georgiou 
Author-X-Name-First: Nadine 
Author-X-Name-Last: Georgiou 
Author-Name: Philipp Schorn 
Author-X-Name-First: Philipp 
Author-X-Name-Last: Schorn 
Title: Legal Form and Earnings Properties 
Abstract:
 We investigate whether the financial accounting choices made by German
 private firms depend on legal form. Legal form determines dividend rights,
 liability status and the owners' obligations to run the business and,
 thus, influences agency problems of debt and equity. Consequently, we find
 that earnings properties depend on legal form. We expect, and find, that
 corporations exhibit higher levels of income smoothing and conservatism
 than partnerships and one-person businesses. Corporations are also more
 likely to disclose small profits. However, generally, there are no
 significant differences in earnings properties between one-person
 businesses and partnerships. The results are robust to different
 econometric specifications including endogeneity concerns (e.g. propensity
 score matching). Earnings properties of private firms seem to be driven to
 a considerable extent by agency problems of debt.
Journal: European Accounting Review 
Pages: 515-548 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638180.2015.1051566 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1051566 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:3:p:515-548




Template-Type: ReDIF-Article 1.0
Author-Name: Yves Gendron 
Author-X-Name-First: Yves 
Author-X-Name-Last: Gendron 
Author-Name: Marion Brivot 
Author-X-Name-First: Marion 
Author-X-Name-Last: Brivot 
Author-Name: Henri Gu&#xe9;nin-Paracini 
Author-X-Name-First: Henri 
Author-X-Name-Last: Gu&#xe9;nin-Paracini 
Title: The Construction of Risk Management Credibility Within Corporate Boardrooms 
Abstract:
 Despite various corporate collapses over the last decades, risk management
 is increasingly influential across organizations worldwide, as if the
 apparatus&#x2019; credibility was impermeable to scandals that, from
 critical angles, cast doubt on its efficacy. Relying on a cultural
 perspective of analysis highlighting the range of social processes that
 protect prevailing institutions&#x2019; legitimacy from aberrations, we
 examined the sense-making approaches employed by corporate boardroom
 actors to maintain their confidence in the credibility of the risk
 management apparatus despite being exposed to a continuous flow of
 corporate failures pointing to risk management efficacy limitations.
 Specifically, we conducted 35 interviews with corporate board
 stakeholders, mostly board members and corporate consultants. Our analysis
 indicates that actors involved in risk management processes tend to
 interpret aberration cases through perspectives that put the blame on some
 implementation deficiency, thereby ensuring that risk management's core
 assumptions are not questioned. These perspectives point to a defensive
 system of thought grounded in the director and consultancy communities,
 whose main referents are subject to intense work and re-conceptualization
 in the aftermath of aberrations, thereby providing community members with
 the means to make sense of the frictions of organizational life in ways
 that maintain the legitimacy of the risk management apparatus.
Journal: European Accounting Review 
Pages: 549-578 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638180.2015.1064008 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1064008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:3:p:549-578




Template-Type: ReDIF-Article 1.0
Author-Name: Steven F. Cahan 
Author-X-Name-First: Steven F. 
Author-X-Name-Last: Cahan 
Author-Name: Charl De Villiers 
Author-X-Name-First: Charl 
Author-X-Name-Last: De Villiers 
Author-Name: Debra C. Jeter 
Author-X-Name-First: Debra C. 
Author-X-Name-Last: Jeter 
Author-Name: Vic Naiker 
Author-X-Name-First: Vic 
Author-X-Name-Last: Naiker 
Author-Name: Chris J. Van Staden 
Author-X-Name-First: Chris J. 
Author-X-Name-Last: Van Staden 
Title: Are CSR Disclosures Value Relevant? Cross-Country Evidence 
Abstract:
 Using proprietary data that rate corporate social responsibility (CSR)
 disclosures of firms in 21 countries, this study examines how the strength
 of nation-level institutions affects the extent of CSR disclosures. We
 then examine the valuation implications of CSR disclosures and consider
 how the relation between CSR disclosures and firm value varies across
 countries. In contrast to prior studies, we separate CSR disclosures into
 an expected and unexpected portion where the unexpected portion is a proxy
 for the incremental information contained in CSR disclosures. We observe a
 positive relation between unexpected CSR disclosure and firm value
 measured by Tobin's <italic>Q</italic>. We also find that, while countries
 with strong nation-level institutions promote more CSR disclosures, the
 valuation of a unit increase in unexpected CSR disclosures is higher when
 nation-level institutions are weak.
Journal: European Accounting Review 
Pages: 579-611 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638180.2015.1064009 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1064009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:3:p:579-611




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Endenich 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Endenich 
Author-Name: Rouven Trapp 
Author-X-Name-First: Rouven 
Author-X-Name-Last: Trapp 
Title: Cooperation for Publication? An Analysis of Co-authorship Patterns in Leading Accounting Journals 
Abstract:
 This paper examines patterns, antecedents, and effects of (international)
 cooperation in accounting academia based on 7105 papers published in 15
 leading accounting journals. In particular, we investigate the
 dissemination of different forms of cooperation, identify author
 characteristics that are related to the propensity of cooperation and
 analyze whether cooperation is associated with research performance (in
 terms of research impact and output). We find that scholars from Asian
 countries tend to be more heavily involved in international cooperation
 than researchers from most European countries and the USA. A Ph.D. from a
 leading school, a scholar's previous publication experience and a past
 appointment as editor or editorial board member are positively associated
 with the propensity for cooperation, while a researcher's current
 affiliation has only limited impact. Surprisingly, our findings show that
 cooperation is not related to a greater research impact as measured by
 citation numbers per paper. Finally, we find a significant negative
 relationship between a scholar's share of co-authored papers and his or
 her research output in leading accounting journals as measured by the
 weighted numbers of papers per author.
Journal: European Accounting Review 
Pages: 613-633 
Issue: 3 
Volume: 25 
Year: 2016 
Month: 9 
X-DOI: 10.1080/09638180.2015.1085886 
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1085886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:euract:v:25:y:2016:i:3:p:613-633




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Hartmann
Author-X-Name-First: Frank
Author-X-Name-Last: Hartmann
Author-Name: Philipp Schreck
Author-X-Name-First: Philipp
Author-X-Name-Last: Schreck
Title: Rankings, Performance, and Sabotage: The Moderating Effects of Target Setting
Abstract: 
 Competitive performance rankings are widely used in organizations. Such incentive systems enable agents to improve their performance ranking not only by increasing their own performance, but also by undermining their competitors’ performance. While previous accounting studies have stressed the positive effect of ranking systems on managerial effort, the present paper investigates when such ranking systems may induce sabotage, and how this unintended effect can be mitigated. Our study is based on a laboratory experiment designed to investigate (a) whether competitive performance feedback increases an agent’s inclination to disrupt the efforts of competitors, in a case where ranking has no effect on compensation and (b) whether the presence of a self-set absolute performance target moderates these effects. Our results show that ranking increases both performance and sabotage. Adding an absolute performance standard appeared to reduce sabotage. However, when there is an absolute target, performance is higher in the absence of ranking. Overall, our results thus suggest that performance benefits from the use of either a relative or an absolute performance target, but not from their simultaneous use.
Journal: European Accounting Review
Pages: 363-382
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2016.1244015
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1244015
File-Format: text/html
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Handle: RePEc:taf:euract:v:27:y:2018:i:2:p:363-382




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel A. Bens
Author-X-Name-First: Daniel A.
Author-X-Name-Last: Bens
Author-Name: Steven J. Monahan
Author-X-Name-First: Steven J.
Author-X-Name-Last: Monahan
Author-Name: Logan B. Steele
Author-X-Name-First: Logan B.
Author-X-Name-Last: Steele
Title: The Effect of Aggregation of Accounting Information via Segment Reporting on Accounting Conservatism
Abstract: 
 In a sample of U.S. multiple-segment firms, we document a negative association between aggregation via segment reporting and timely loss recognition. A higher level of aggregation, as reflected in a firm’s reported organizational structure (the definition and characteristics of its segments), causes a multiple-segment firm to exhibit less cross-segment variation in profitability than a matched control portfolio of single-segment firms. We find that firms that engage in more aggregation report accounting numbers that provide less timely information about economic losses. We also observe that firms that provide more disaggregated segment data subsequent to adopting SFAS 131 experienced an increase in timely loss recognition. This result implies that higher quality segment reporting leads to an increase in timely loss recognition, which, per extant research, is associated with better governance. Our results complement results in Berger and Hann [2003. The impact of SFAS No. 131 on information and monitoring. Journal of Accounting Research, 41, 163–223] that show a decline in inefficient internal-capital-market transfers subsequent to the adoption of SFAS 131. Overall, we provide evidence supporting Beyer, Cohen, Lys, and Walther’s [2010. The financial reporting environment: Review of the recent literature. Journal of Accounting and Economics, 50, 296–343] contention that accounting conservatism is, in part, a function of managers’ aggregation choices.
Journal: European Accounting Review
Pages: 237-262
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2016.1260488
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1260488
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:euract:v:27:y:2018:i:2:p:237-262




Template-Type: ReDIF-Article 1.0
Author-Name: David Abad
Author-X-Name-First: David
Author-X-Name-Last: Abad
Author-Name: M. Fuensanta Cutillas-Gomariz
Author-X-Name-First: M. Fuensanta
Author-X-Name-Last: Cutillas-Gomariz
Author-Name: Juan Pedro Sánchez-Ballesta
Author-X-Name-First: Juan Pedro
Author-X-Name-Last: Sánchez-Ballesta
Author-Name: José Yagüe
Author-X-Name-First: José
Author-X-Name-Last: Yagüe
Title: Real Earnings Management and Information Asymmetry in the Equity Market
Abstract: 
 The literature suggests that real earnings management (REM) activities can increase adverse selection risk in capital markets. Due to their opacity and the difficulties in understanding their implications, REM strategies may increase the level of information asymmetry among investors. This paper examines the association between earnings management through real activities manipulation and information asymmetry in the equity market. To estimate the level of adverse selection risk we use a comprehensive index of information asymmetry measures proposed by the market microstructure literature. For a sample of Spanish listed firms, we find that firms’ strategies of increasing earnings through REM are associated with higher information asymmetry in those firms that meet last year’s earnings. Our findings are consistent with the hypothesis that earnings management through real activities manipulation garbles the market, enhances private information production, and exacerbates information asymmetry in the stock market.
Journal: European Accounting Review
Pages: 209-235
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2016.1261720
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1261720
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Handle: RePEc:taf:euract:v:27:y:2018:i:2:p:209-235




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Hall
Author-X-Name-First: Matthew
Author-X-Name-Last: Hall
Author-Name: Yuval Millo
Author-X-Name-First: Yuval
Author-X-Name-Last: Millo
Title: Choosing an Accounting Method to Explain Public Policy: Social Return on Investment and UK Non-profit Sector Policy
Abstract: 
 We examine why certain accounting methods are chosen by government policy-makers to explain and rationalize their policy actions. We focus on the case of social return on investment (SROI), an accounting methodology that aims to capture and quantify the value created by social purpose organizations, and employs techniques of monetization and the expression of value as a ratio of benefits for investments [see REDF. (2000). SROI methodology: Analyzing the value of social purpose enterprise within a social return on investment framework. San Francisco: REDF; New Economics Foundation (NEF). (2007). Measuring real value: A DIY guide to social return on investment]. In particular, we examine how and why SROI was chosen for explaining and rationalizing the UK Government's policy of greater involvement of non-profit sector organizations in public service delivery. Our central contribution is to propose two important factors, which we identify as the capturability and communicability of accounting methods, that help to explain why a particular accounting method would be chosen by policy actors to explain and rationalize their public policy choices. The research helps further our understanding of the intersection between accounting and public policy by focusing explicitly on accounting's important role in explaining and rationalizing public policy.
Journal: European Accounting Review
Pages: 339-361
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2016.1261721
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1261721
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Handle: RePEc:taf:euract:v:27:y:2018:i:2:p:339-361




Template-Type: ReDIF-Article 1.0
Author-Name: Yunhao Dai
Author-X-Name-First: Yunhao
Author-X-Name-Last: Dai
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Shasha Liu
Author-X-Name-First: Shasha
Author-X-Name-Last: Liu
Title: Returnee Talent and Corporate Investment: Evidence from China
Abstract: 
 We manually collected a dataset comprising the overseas experiences of management teams of listed Chinese firms and investigated the effects of returnee talent on firm investment efficiency (InvEff). The results show that (1) returnees improve InvEff significantly, especially for firms that experience overinvestment; (2) the central-government-controlled state-owned enterprises benefit the most from overseas returnees; and (3) foreign experience in countries with effective governance and low corruption levels have significantly marginal effects on the improvement in InvEff. This study highlights a new channel of international knowledge spillover and practically guides the introduction of talent policy in emerging markets.
Journal: European Accounting Review
Pages: 313-337
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2016.1264306
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1264306
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Template-Type: ReDIF-Article 1.0
Author-Name: Kees Camfferman
Author-X-Name-First: Kees
Author-X-Name-Last: Camfferman
Author-Name: Stephen A. Zeff
Author-X-Name-First: Stephen A.
Author-X-Name-Last: Zeff
Title: The Challenge of Setting Standards for a Worldwide Constituency: Research Implications from the IASB’s Early History
Abstract: 
 Based on Camfferman and Zeff [(2015). Aiming for global accounting standards: The International Accounting Standards Board, 2001–2011. Oxford: Oxford University Press] we reflect on possibilities for academic research on the International Accounting Standards Board (IASB) and its International Financial Reporting Standards (IFRSs). We argue that a research agenda may be formed around the notion that the IASB differs from national standard setters because its constituent base includes jurisdictions as well as the more traditional preparer, user and auditor constituency groups. We show that taking a jurisdictional angle draws attention to the variety among the IASB’s jurisdictional constituents, identifying numerous research possibilities related to their decisions to adopt, or not to adopt, IFRSs, and to the mechanisms they have developed to form their own IFRS policies and to interact with the IASB. We illustrate how the IASB’s structure, governance, processes and standards are influenced by the challenge of reconciling the needs and values of jurisdictional constituents with the objective of setting global accounting standards. We call for research on the ramifications of the diversity of jurisdictional constituents, as well as changing perceptions of standard setting within jurisdictions, for all aspects of the functioning of the IASB. Such research should make greater use of the variety of sources available to researchers today.
Journal: European Accounting Review
Pages: 289-312
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2017.1296780
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1296780
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Handle: RePEc:taf:euract:v:27:y:2018:i:2:p:289-312




Template-Type: ReDIF-Article 1.0
Author-Name: Marcel van Rinsum
Author-X-Name-First: Marcel
Author-X-Name-Last: van Rinsum
Author-Name: Victor S. Maas
Author-X-Name-First: Victor S.
Author-X-Name-Last: Maas
Author-Name: David Stolker
Author-X-Name-First: David
Author-X-Name-Last: Stolker
Title: Disclosure Checklists and Auditors’ Judgments of Aggressive Accounting
Abstract: 
 This study investigates if auditors who feel accountable to management (as opposed to the audit committee) are more susceptible to pro-client bias after using a disclosure checklist. We theorize that the use of a disclosure checklist, even though it is uninformative about the aggressiveness of the accounting methods used, can influence auditors’ judgments of the acceptability of aggressive reporting by inducing a less critical state of mind. We propose that this less critical state of mind is reflected in higher levels of pro-client bias, particularly when management is the appointing party. Our experimental data for two cases, obtained from experienced auditors working at a Big Four audit firm, support this prediction. Our findings imply that threats to auditor independence are more subtle than has often been assumed.
Journal: European Accounting Review
Pages: 383-399
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2017.1304228
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1304228
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Handle: RePEc:taf:euract:v:27:y:2018:i:2:p:383-399




Template-Type: ReDIF-Article 1.0
Author-Name: Ariela Caglio
Author-X-Name-First: Ariela
Author-X-Name-Last: Caglio
Title: To Disclose or Not to Disclose? An Investigation of the Antecedents and Effects of Open Book Accounting
Abstract: 
 Open book accounting (OBA) is the regular disclosure of management accounting information beyond corporate borders. Prior contributions have mainly concentrated on identifying its antecedents in individual or small numbers of organizations with exploratory cases. My paper responds to the call to investigate OBA on a wider empirical basis and focuses simultaneously on the explanatory variables of OBA and its influence on both financial and non-financial performance. I thus also explore the mediating role of OBA in linking key antecedents and performance within a unified theoretical framework. I empirically test my model using survey data from a sample of European companies, which are then analyzed through structural equation modeling. My findings indicate that the extent of OBA use is explained by a firm’s willingness to work together with its counterparts in the long run, that is, a relational factor, and the presence of sophisticated cost accounting systems, that is, a technical prerequisite. My evidence also suggests a positive association between OBA and firm performance. Additionally, I find that OBA is a partial mediator that explains how a firm’s long-term commitment to its external partners and the sophistication of its cost accounting system may become associated with performance.
Journal: European Accounting Review
Pages: 263-287
Issue: 2
Volume: 27
Year: 2018
Month: 3
X-DOI: 10.1080/09638180.2017.1315313
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1315313
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Handle: RePEc:taf:euract:v:27:y:2018:i:2:p:263-287




Template-Type: ReDIF-Article 1.0
Author-Name: Rochester H. Cahan
Author-X-Name-First: Rochester H.
Author-X-Name-Last: Cahan
Author-Name: Steven F. Cahan
Author-X-Name-First: Steven F.
Author-X-Name-Last: Cahan
Author-Name: Tan (Charlene) Lee
Author-X-Name-First: Tan (Charlene)
Author-X-Name-Last: Lee
Author-Name: Nhut H. Nguyen
Author-X-Name-First: Nhut H.
Author-X-Name-Last: Nguyen
Title: Media Content, Accounting Quality, and Liquidity Volatility
Abstract: 
 We examine how the linguistic content of news items affects the volatility of a firm's liquidity, and we consider whether accounting quality moderates the media content-liquidity volatility relation. Regarding the unconditional relation between media content and liquidity volatility, one view is media content could reduce liquidity volatility by providing additional information about fundamental values; another view is it could increase liquidity volatility by increasing investor uncertainty, particularly for negative news. Using data from Thomson Reuters News Analytics, we find evidence supporting the view that media content, positive and negative, has incremental information. Regarding the moderating role of accounting quality, pre-existing accounting information of higher quality could enhance investors' reactions to media content by providing a more precise baseline, or it could reduce investors' reactions to the news if investors anchor on higher quality financial statements. Our findings are consistent with more credible accounting information serving an anchor role, and suggest that investors condition their reaction to media content based on the quality of a firm's pre-existing accounting information.
Journal: European Accounting Review
Pages: 1-25
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638180.2015.1087866
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1087866
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Template-Type: ReDIF-Article 1.0
Author-Name: Liangbo Ma
Author-X-Name-First: Liangbo
Author-X-Name-Last: Ma
Author-Name: Shiguang Ma
Author-X-Name-First: Shiguang
Author-X-Name-Last: Ma
Author-Name: Gary Tian
Author-X-Name-First: Gary
Author-X-Name-Last: Tian
Title: Corporate Opacity and Cost of Debt for Family Firms
Abstract: 
 This paper uses a sample of Chinese firms to examine the impact of corporate opacity on the relationship between family control and firms’ cost of debt. We find that family control is associated with a lower cost of debt on average, and a negative impact exists mainly in firms with relatively low corporate opacity. We further provide evidence that the moderating effect of corporate opacity becomes more pronounced when investors’ perception of controlling families’ moral hazard of expropriation is higher. Our results are robust to alternative opacity proxies and controlling for endogeneity of family control using the instrumental variable method. Our study highlights that controlling families are heterogeneous in their impact on the shareholder–debtholder relationship in family firms, and debtholders view corporate opacity as an important reference in assessing the extent of potential agency conflicts in China.
Journal: European Accounting Review
Pages: 27-59
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638180.2015.1087868
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1087868
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Template-Type: ReDIF-Article 1.0
Author-Name: Ku He
Author-X-Name-First: Ku
Author-X-Name-Last: He
Author-Name: Xiaofei Pan
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Pan
Author-Name: Gary Tian
Author-X-Name-First: Gary
Author-X-Name-Last: Tian
Title: Legal Liability, Government Intervention, and Auditor Behavior: Evidence from Structural Reform of Audit Firms in China
Abstract: 
 This paper investigates how legal liability influences audit quality and audit fees, particularly in the presence of government intervention. Since 2010, all Chinese audit firms were required to transform from a structure of limited liability company (LLC) to limited liability partnership (LLP), which removes the cap on the liability exposure of negligent auditors. By adopting this natural experiment, we document the following findings: first, after audit firms reorganize as LLPs, auditors are more likely to (1) issue modified audit opinions and going-concern opinions, (2) constrain clients’ earnings management, and (3) charge a premium in audit fees, which suggest that exerting unlimited legal liability on negligent auditors improves both audit quality and audit fees. Second, the effect of the LLP adoption is more pronounced when auditors are from local audit firms, and clients are controlled by local governments. Further analyses suggest that the stock prices of clients positively react to the reform event, which indicates that LLP adoption improves the overall value of audits. In summary, our empirical findings are consistent with the argument that legal liability is able to effectively shape auditor behavior in emerging markets where the other institutional mechanisms are relatively weaker and government intervention is heavy.
Journal: European Accounting Review
Pages: 61-95
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638180.2015.1100547
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1100547
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Template-Type: ReDIF-Article 1.0
Author-Name: Petya Platikanova
Author-X-Name-First: Petya
Author-X-Name-Last: Platikanova
Title: Debt Maturity and Tax Avoidance
Abstract: 
 This study proposes and empirically tests the argument that creditors are likely to extend debt with a shorter maturity to tax-avoiding firms so that they can frequently re-evaluate tax-related risk in debt contracting. Using effective tax rates and uncertain tax benefits as a proxy for tax avoidance, I find that tax-avoiding firms have a larger proportion of short-maturity debt compared to other firms. The empirical findings further show that firms with unsustainable tax positions and with subsidiaries in tax-haven countries are more likely to employ short-maturity debt. Collectively, the empirical findings suggest that frequent debt renegotiations increase the exposure of tax-avoiding firms to credit supply shocks, contributing to their higher demand for cash.
Journal: European Accounting Review
Pages: 97-124
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638180.2015.1106329
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1106329
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Handle: RePEc:taf:euract:v:26:y:2017:i:1:p:97-124




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Chen
Author-X-Name-First: Jun
Author-X-Name-Last: Chen
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Author-Name: Wang Dong
Author-X-Name-First: Wang
Author-X-Name-Last: Dong
Author-Name: Feida (Frank) Zhang
Author-X-Name-First: Feida (Frank)
Author-X-Name-Last: Zhang
Title: Internal Control and Stock Price Crash Risk: Evidence from China
Abstract: 
 This paper examines the role played by internal control and its five components (i.e. control environment, risk assessment, control activities, information and communication, and monitoring) in alleviating future stock price crash risk. Using a unique dataset from China, we find evidence that internal control is negatively associated with future stock price crash risk. Specifically, control environment, information and communication, and monitoring are significantly and negatively associated with future stock price crash risk. Moreover, the negative association between internal control and crash risk is significantly more pronounced in firms with weak internal and external governance (i.e. audited by non-Big 4 auditors, located in provinces with low market development, and less conservative in accounting) and with poor ability to mitigate impacts of extreme negative events (i.e. non-state-owned enterprises). Our study highlights the delicate role of internal control as a mechanism in preventing crash of stock price.
Journal: European Accounting Review
Pages: 125-152
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638180.2015.1117008
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1117008
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Handle: RePEc:taf:euract:v:26:y:2017:i:1:p:125-152




Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Hilary
Author-X-Name-First: Gilles
Author-X-Name-Last: Hilary
Author-Name: Sterling Huang
Author-X-Name-First: Sterling
Author-X-Name-Last: Huang
Author-Name: Yanping Xu
Author-X-Name-First: Yanping
Author-X-Name-Last: Xu
Title: Marital Status and Earnings Management
Abstract: 
 In this note, we examine the effect of CEO marital status on the riskiness of financial reporting. Using multiple proxies, we find that firms headed by a single CEO display a higher degree of earnings management than those headed by a married CEO. The effect is economically significant. Our results persist in an instrumental variable regression, suggesting that our results are not driven by innate heterogeneity in preferences.
Journal: European Accounting Review
Pages: 153-158
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638180.2016.1266958
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1266958
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Handle: RePEc:taf:euract:v:26:y:2017:i:1:p:153-158




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Thank you to Associate Editors, Editorial Board Members, Ad hoc Associate Editors, Guest Editors and Reviewers 2016
Journal: European Accounting Review
Pages: 159-164
Issue: 1
Volume: 26
Year: 2017
Month: 1
X-DOI: 10.1080/09638180.2017.1295584
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1295584
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Handle: RePEc:taf:euract:v:26:y:2017:i:1:p:159-164




Template-Type: ReDIF-Article 1.0
Author-Name: Gloria Vollmers
Author-X-Name-First: Gloria
Author-X-Name-Last: Vollmers
Author-Name: Valerio Antonelli
Author-X-Name-First: Valerio
Author-X-Name-Last: Antonelli
Author-Name: Raffaele D'Alessio
Author-X-Name-First: Raffaele
Author-X-Name-Last: D'Alessio
Author-Name: Roberto Rossi
Author-X-Name-First: Roberto
Author-X-Name-Last: Rossi
Title: Cost Accounting for War: Contracting Procedures and Cost-plus Pricing in WWI Industrial Mobilization in Italy
Abstract: 
 The aim of this paper is to explore the role played by cost accounting in Italy's Industrial Mobilization system and in the largest firm manufacturing weaponry, Ansaldo of Genoa, during WWI. While in other countries such as the UK and the USA, efficiency in buying and managing war material was an important part of military strategy, in Italy, various factors impeded it. This paper focuses on contracting procedures adopted by the Ministry of War and Ministry of Munitions and looks at the cost accounting practices in Ansaldo to see how costs were determined and how prices were set. We found a paradox. On the one hand, despite knowledge of costing, the government did not impose cost controls on the producers of war material, nor on their profit rates. On the other hand, examining Ansaldo's cost sheets we discover they underestimated their production costs leading the firm to losses despite its favorable political position. This paper contributes to the theoretical debate about the relationships between accounting and war in the Italian context where lobbying, collusion, bribery and private interests dominated the administrative behavior of public and private actors instead of efficiency, accountability and honesty.
Journal: European Accounting Review
Pages: 735-769
Issue: 4
Volume: 25
Year: 2016
Month: 10
X-DOI: 10.1080/09638180.2015.1085887
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1085887
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Handle: RePEc:taf:euract:v:25:y:2016:i:4:p:735-769




Template-Type: ReDIF-Article 1.0
Author-Name: Kay Blaufus
Author-X-Name-First: Kay
Author-X-Name-Last: Blaufus
Author-Name: Jonathan Bob
Author-X-Name-First: Jonathan
Author-X-Name-Last: Bob
Author-Name: Daniela Lorenz
Author-X-Name-First: Daniela
Author-X-Name-Last: Lorenz
Author-Name: Matthias Trinks
Author-X-Name-First: Matthias
Author-X-Name-Last: Trinks
Title: How Will the Court Decide? – Tax Experts’ versus Laymen's Predictions
Abstract: 
 We conduct a survey of German tax professionals (tax advisors and revenue agents) and laymen to examine whether tax experts more accurately forecast the outcomes of five real cases from the German Federal Fiscal Court. With an average of 2.39 correct predictions among experts and an average of 2.49 correct predictions among laymen, our results reveal no significant difference in forecasting accuracy between the two groups. Additionally, neither general nor task-specific tax expertise increases the experts’ forecasting accuracy. This unpredictability of tax court decisions indicates that accounting rules and taxpayer penalties that rely on accurate predictions of tax court decisions may need to be re-evaluated. Moreover, our results indicate the existence of two types of ‘advisor bias’. First, tax advisors exhibit a significantly higher level of overconfidence in comparison to other experts (i.e. revenue agents) and laymen. In particular, they believe that they correctly predict, on average, 1.52 more cases than they actually do. Second, we find some evidence indicating that tax advisors acting as client advocates form stronger appeal recommendations than revenue agents.
Journal: European Accounting Review
Pages: 771-792
Issue: 4
Volume: 25
Year: 2016
Month: 10
X-DOI: 10.1080/09638180.2015.1114423
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1114423
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Handle: RePEc:taf:euract:v:25:y:2016:i:4:p:771-792




Template-Type: ReDIF-Article 1.0
Author-Name: John Ziyang Zhang
Author-X-Name-First: John Ziyang
Author-X-Name-Last: Zhang
Author-Name: Yangxin Yu
Author-X-Name-First: Yangxin
Author-X-Name-Last: Yu
Title: Does Board Independence Affect Audit Fees? Evidence from Recent Regulatory Reforms
Abstract: 
 To enhance board oversight, since 2002, US legislation has required listed companies to have a majority independent board. This paper uses this legislative change to examine the relation between board independence and audit fees. To provide a clean estimate of this relation, we adopt a difference-in-difference approach using a sample matched on client firm characteristics. We find that greater board independence is insignificantly associated with a change in audit fees when client firms operate in a weak information environment. When the information environment is strong, greater board independence is associated with an increase in audit fees. Our results are consistent with the nascent theory emphasizing information asymmetry and provide insight into the effectiveness of the mandated board independence in relation to audit quality.
Journal: European Accounting Review
Pages: 793-814
Issue: 4
Volume: 25
Year: 2016
Month: 10
X-DOI: 10.1080/09638180.2015.1117007
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1117007
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Handle: RePEc:taf:euract:v:25:y:2016:i:4:p:793-814




Template-Type: ReDIF-Article 1.0
Author-Name: Cécile Martin
Author-X-Name-First: Cécile
Author-X-Name-Last: Martin
Author-Name: Tiphaine Jérôme
Author-X-Name-First: Tiphaine
Author-X-Name-Last: Jérôme
Title: Cost (In)Efficiency and Institutional Pressures in Nursing Home Chains
Abstract: 
 Over the past 10 years, merger activities in the private for-profit nursing home industry have been increasing in Europe. In this paper, we investigate chain affiliation’s influence on the performance of lucrative nursing homes. We measure performance using a cost frontier estimated by stochastic analysis on a sample of 370 French for-profit nursing homes. We find that cost efficiency decreases with the number of facilities in a chain. We also identify different external actor types in nursing homes’ institutional environment and test their influence. We show that nursing home chains’ cost efficiency improves when local governments and shareholders exert pressure. Our results are robust to alternative model specifications and another definition of costs. Overall, our findings inform researchers, as well as standards setters, of the relevance of chain affiliation and of the role of institutional pressures regarding cost containment at the nursing home level.
Journal: European Accounting Review
Pages: 687-718
Issue: 4
Volume: 25
Year: 2016
Month: 10
X-DOI: 10.1080/09638180.2016.1169937
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1169937
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Handle: RePEc:taf:euract:v:25:y:2016:i:4:p:687-718




Template-Type: ReDIF-Article 1.0
Author-Name: Florian Gebreiter
Author-X-Name-First: Florian
Author-X-Name-Last: Gebreiter
Author-Name: Laurence Ferry
Author-X-Name-First: Laurence
Author-X-Name-Last: Ferry
Title: Accounting and the ‘Insoluble’ Problem of Health-Care Costs
Abstract: 
 Health service accounting reforms are frequently promoted, explained or justified with reference to aging populations, expensive medical technologies and their purported implications for the cost of health care. Drawing on Foucault’s genealogical method, we examine the emergence of concerns regarding health expenditure in the wake of the creation of the British National Health Service in 1948, and their relationship with health service accounting practices. We argue that concerns regarding the cost of health care are historically contingent rather than inescapable consequences of demographic and technological change, and that health service accounting practices are both constitutive and reflective of such concerns. We conclude by relating our analysis to current attempts to control costs and increase efficiency in the health services.
Journal: European Accounting Review
Pages: 719-733
Issue: 4
Volume: 25
Year: 2016
Month: 10
X-DOI: 10.1080/09638180.2016.1187073
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1187073
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Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Szczesny
Author-X-Name-First: Andrea
Author-X-Name-Last: Szczesny
Author-Name: Christian Ernst
Author-X-Name-First: Christian
Author-X-Name-Last: Ernst
Title: The Role of Performance Reporting System Characteristics for the Coordination of High-Cost Areas in Hospitals
Abstract: 
 This paper explores the role of a performance reporting regime’s characteristics for two non-financial performance measures that are commonly used in the management of operating theaters (OTs) in German hospitals. The performance measures are the on-time first case of the day starts and the percentage of deviations from the short-term OT plan. The characteristics studied are reporting detail, reporting method and reporting frequency. We find that the degree of detail that the reporting system provides on the causes of negative performance exerts a significant positive effect on both performance measures. The reporting method and frequency do not affect performance. We also study the effect of existing processual, organizational and governance-related problems on performance. We find that these problems exert a significant negative effect on performance but that performance can be improved by detailed reporting.
Journal: European Accounting Review
Pages: 635-660
Issue: 4
Volume: 25
Year: 2016
Month: 10
X-DOI: 10.1080/09638180.2016.1210525
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1210525
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Handle: RePEc:taf:euract:v:25:y:2016:i:4:p:635-660




Template-Type: ReDIF-Article 1.0
Author-Name: Maik Lachmann
Author-X-Name-First: Maik
Author-X-Name-Last: Lachmann
Author-Name: Rouven Trapp
Author-X-Name-First: Rouven
Author-X-Name-Last: Trapp
Author-Name: Felix Wenger
Author-X-Name-First: Felix
Author-X-Name-Last: Wenger
Title: Performance Measurement and Compensation Practices in Hospitals: An Empirical Analysis in Consideration of Ownership Types
Abstract: 
 Against the background of regulatory initiatives that put hospitals under increasing financial pressure, we explore performance measurement and compensation practices in hospitals through a multiple case study. We extend previous research by comparing practices among different ownership types (i.e. public, non-profit, and private) and by providing initial evidence on compensation schemes for the clinical staff. Our empirical investigation is embedded in the ‘stewardship–agency axis’ that allows the development of theoretical arguments about the interdependencies between ownership and performance measurement systems (PMS). We distinguish two primary levels of analysis – the types of measures implemented and their linkage with compensation and decision-making. Our findings suggest that the types of measures are primarily affected by regulatory pressures, while powerful internal actors considerably influence the linkage between these measures and compensation. Consistent with our theorised patterns, cross-case analyses indicate differences between ownership types concerning the performance dimensions that are prioritised and the linkage of performance measures with compensation of the clinical staff. Together, these findings provide evidence on the interdependent effects of the regulatory environment, the type of ownership and internal actors on a hospital's PMS. We also provide some tentative explanations for these findings based on insights from institutional and behavioural theory.
Journal: European Accounting Review
Pages: 661-686
Issue: 4
Volume: 25
Year: 2016
Month: 10
X-DOI: 10.1080/09638180.2014.994541
File-URL: http://hdl.handle.net/10.1080/09638180.2014.994541
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Handle: RePEc:taf:euract:v:25:y:2016:i:4:p:661-686




Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Goretzki
Author-X-Name-First: Lukas
Author-X-Name-Last: Goretzki
Author-Name: Simone Mack
Author-X-Name-First: Simone
Author-X-Name-Last: Mack
Author-Name: Martin Messner
Author-X-Name-First: Martin
Author-X-Name-Last: Messner
Author-Name: Jürgen Weber
Author-X-Name-First: Jürgen
Author-X-Name-Last: Weber
Title: Exploring the Persuasiveness of Accounting Numbers in the Framing of ‘Performance’ – A Micro-Level Analysis of Performance Review Meetings
Abstract: 
 Based on a micro-level analysis of performance review meetings and drawing on an interactional framing perspective, this paper analyses the role of accounting numbers as ‘framing devices’ in discussions about performance. Analyzing interactions between superiors and subordinates, we examine how and why these two groups of actors mobilize different accounting numbers to make claims about performance and try to persuade the other party. Our interest is with the choice of accounting numbers and how they come to be seen as persuasive. The main theoretical argument developed in this paper is that whether a specific accounting number or indicator comes to be seen as persuasive or not in a particular situation is both a matter of how legitimate the underlying indicator is to the actors involved as well as whether they regard the signal it provides, i.e. the actual outcome on this particular indicator, as salient when compared to the actual outcomes on alternative indicators. Taken together, our findings suggest that persuasiveness is not an ‘objective’ quality of accounting numbers, but a situated achievement that results from interactive alignments between different actors with potentially competing interests.
Journal: European Accounting Review
Pages: 495-525
Issue: 3
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638180.2016.1262273
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1262273
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Handle: RePEc:taf:euract:v:27:y:2018:i:3:p:495-525




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Reimsbach
Author-X-Name-First: Daniel
Author-X-Name-Last: Reimsbach
Author-Name: Rüdiger Hahn
Author-X-Name-First: Rüdiger
Author-X-Name-Last: Hahn
Author-Name: Anil Gürtürk
Author-X-Name-First: Anil
Author-X-Name-Last: Gürtürk
Title: Integrated Reporting and Assurance of Sustainability Information: An Experimental Study on Professional Investors’ Information Processing
Abstract: 
 Sustainability-related non-financial information is increasingly deemed value relevant. Against this background, two recent trends in non-financial reporting are frequently discussed: integrated reporting and assurance of sustainability information. Using an established framework of information acquisition, evaluation, and weighting, this experimental study investigated how the choice of reporting format interacts with the voluntary assurance of sustainability information. The results from a sample of professional investors underline the important role of assurance in the context of voluntary disclosure and illustrate the relevant interaction with the reporting format. Assurance of sustainability information positively affected professional investors’ evaluation of a firm’s sustainability performance, resulted in a higher weighting of this information, and led to higher investment-related judgments. However, this assurance effect was weaker in the case of integrated reporting compared to separate reporting. We attribute this effect to a cognitive bias in decision-making when assured financial performance and non-assured sustainability performance are presented in the same report.
Journal: European Accounting Review
Pages: 559-581
Issue: 3
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638180.2016.1273787
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1273787
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Handle: RePEc:taf:euract:v:27:y:2018:i:3:p:559-581




Template-Type: ReDIF-Article 1.0
Author-Name: Shimin Chen
Author-X-Name-First: Shimin
Author-X-Name-Last: Chen
Author-Name: Serene Xu Ni
Author-X-Name-First: Serene Xu
Author-X-Name-Last: Ni
Author-Name: Feida Zhang
Author-X-Name-First: Feida
Author-X-Name-Last: Zhang
Title: CEO Retirement, Corporate Governance and Conditional Accounting Conservatism
Abstract: 
 Based on 16,604 observations between 1994 and 2006, this study revisits the ‘horizon problem’ by examining how CEO retirement affects conditional accounting conservatism. We hypothesize and find that firms become less conservative in their financial reporting before the retirement of their CEOs, and that strong corporate governance mitigates the effect of CEO retirement. The literature concerning the horizon problem has suggested that CEOs manipulate earnings to boost short-term performance before they leave their companies (Dechow, P. M., &amp; Sloan, R. G. (1991). Executive incentives and the horizon problem: An empirical investigation. Journal of Accounting and Economics, 14(1), 51–89; Smith, C. W., &amp; Watts, R. L. (1982). Incentive and tax effects of executive compensation plans. Australian Journal of Management, 7(2), 139–157), but the evidence is mixed. By examining conditional conservatism, we avoid some of the methodological difficulties that confront researchers when examining either real or accrual earnings management. Ours is the first study to provide evidence on how the horizon problem shapes conditional accounting conservatism.
Journal: European Accounting Review
Pages: 437-465
Issue: 3
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638180.2017.1279065
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1279065
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Handle: RePEc:taf:euract:v:27:y:2018:i:3:p:437-465




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet C. Kurt
Author-X-Name-First: Ahmet C.
Author-X-Name-Last: Kurt
Title: How Do Financial Constraints Relate to Financial Reporting Quality? Evidence from Seasoned Equity Offerings
Abstract: 
 This paper examines how constraints on firms’ financing capacity relate to managers’ discretionary accounting choices. Three hypotheses of earnings management – the opportunism hypothesis, the rational expectations hypothesis, and the signaling hypothesis – predict that constrained firms engage in greater upward earnings management than unconstrained firms when selling equity. Using a sample of seasoned equity offerings (SEOs) announced between 1983 and 2014, I find support for this prediction. The relation between financial constraints and earnings management is robust to including controls such as offer size, growth opportunities, analyst following, and chief executive officer equity holdings, as well as to using the instrumental variable approach. Investors’ reaction around and following the SEO announcement supports the rational expectations hypothesis. I find that aggressive earnings management by constrained issuers is associated with lower SEO announcement returns but is not followed by negative abnormal returns in the long run. The evidence suggests that constrained issuers’ aggressive use of income-increasing accruals is an outcome of managerial myopia caused by capital market pressure, not managerial opportunism intended to mislead investors.
Journal: European Accounting Review
Pages: 527-557
Issue: 3
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638180.2017.1279556
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1279556
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Handle: RePEc:taf:euract:v:27:y:2018:i:3:p:527-557




Template-Type: ReDIF-Article 1.0
Author-Name: Minyue Dong
Author-X-Name-First: Minyue
Author-X-Name-Last: Dong
Author-Name: Xiao-Jun Zhang
Author-X-Name-First: Xiao-Jun
Author-X-Name-Last: Zhang
Title: Selective Trading of Available-for-Sale Securities: Evidence from U.S. Commercial Banks
Abstract: 
 This paper examines the selective trading of available-for-sale (AFS) securities by U.S. banks after the implementation of fair value accounting under Statement of Financial Accounting Standards No. 115, Accounting Standards Codification Topic 320. Our findings suggest firms still engage in earnings management through selective selling of AFS securities despite the mandatory disclosure of unrealized security holding gains and losses in their financial statements. Such activities do not appear to be driven by the lack of reliability of the fair value measure. Instead, the degree of earnings management varies significantly with the reporting format of unrealized AFS security holding gains and losses. We find evidence of earnings management among banks that choose to report unrealized holding gains and losses in the statement of shareholders’ equity. By contrast, we find no such evidence among banks disclosing unrealized holding gains and losses in the income statement.
Journal: European Accounting Review
Pages: 467-493
Issue: 3
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638180.2017.1304227
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1304227
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Handle: RePEc:taf:euract:v:27:y:2018:i:3:p:467-493




Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Brocard
Author-X-Name-First: Marcus
Author-X-Name-Last: Brocard
Author-Name: Benedikt Franke
Author-X-Name-First: Benedikt
Author-X-Name-Last: Franke
Author-Name: Dennis Voeller
Author-X-Name-First: Dennis
Author-X-Name-Last: Voeller
Title: Enforcement Actions and Auditor Changes
Abstract: 
 In this paper, we examine whether the uncovering of erroneous financial statements by German enforcement agencies is related to subsequent auditor changes. We argue that enforcement actions are likely to reveal information about the client or its auditor, which might affect auditor choice by initiating an update of mutual expectations. Our empirical findings indicate that firms with erroneous financial statements indeed have an increased probability of subsequent auditor changes. Firms also tend to change from a non-Big4 auditor to a Big4 auditor in this situation, suggesting that clients increasingly seek the reputation and services of Big4 auditors. Big4 auditors in turn do not appear to refrain from taking over error-firms as new clients in the German setting, which is characterized by limited auditor liability. Additionally, auditor changes are more likely to occur before the public announcement of an error, indicating that firms take action as soon as the uncovering of an accounting error becomes sufficiently certain.
Journal: European Accounting Review
Pages: 407-436
Issue: 3
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638180.2017.1307130
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1307130
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Handle: RePEc:taf:euract:v:27:y:2018:i:3:p:407-436




Template-Type: ReDIF-Article 1.0
Author-Name: Rong Yang
Author-X-Name-First: Rong
Author-X-Name-Last: Yang
Author-Name: Yang Yu
Author-X-Name-First: Yang
Author-X-Name-Last: Yu
Author-Name: Manlu Liu
Author-X-Name-First: Manlu
Author-X-Name-Last: Liu
Author-Name: Kean Wu
Author-X-Name-First: Kean
Author-X-Name-Last: Wu
Title: Corporate Risk Disclosure and Audit Fee: A Text Mining Approach
Abstract: 
 The aim of this study is to introduce an innovative text mining approach to assess firms' risks using unstructured textual disclosure from annual reports. Specifically, we use Natural Language Processing techniques to extract firms' self-identified risks including financial, strategic, operational, and hazard risks based on an enterprise risk management framework. We examine the association between these four risk measures derived from the risk factor section in 10-K filings and audit fees. The results show that audit fees are significantly and positively related to firm-specific financial, strategic, and operational risks, indicating the informativeness of corporate textual risk disclosures. This study provides direct support for the recent US reporting regulatory requirement of adding a new section on risk factors in corporate annual reports.
Journal: European Accounting Review
Pages: 583-594
Issue: 3
Volume: 27
Year: 2018
Month: 5
X-DOI: 10.1080/09638180.2017.1329660
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1329660
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Handle: RePEc:taf:euract:v:27:y:2018:i:3:p:583-594




Template-Type: ReDIF-Article 1.0
Author-Name: Benedikt Franke
Author-X-Name-First: Benedikt
Author-X-Name-Last: Franke
Author-Name: Sonja Müller
Author-X-Name-First: Sonja
Author-X-Name-Last: Müller
Title: Private Debt and Timely Loss Recognition
Abstract: 
 In this study, we investigate whether private debt contracting provides incentives for borrowers to recognize economic losses earlier in accounting earnings. Focusing on the window around firms' issuances of private loans, we document that timely loss recognition significantly increases following an issuance. This effect is significantly stronger for debt contracts that include performance covenants acting as trip-wires when firm performance deteriorates. We also find that timely loss recognition is particularly used when writing debt contracts is hampered by uncertainty about a firm's future development. These findings are consistent with timely loss recognition being used to increase contract efficiency by facilitating state-contingent control allocation based on a borrower's performance over the loan term.
Journal: European Accounting Review
Pages: 423-450
Issue: 3
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638180.2018.1476168
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1476168
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Handle: RePEc:taf:euract:v:28:y:2019:i:3:p:423-450




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Firk
Author-X-Name-First: Sebastian
Author-X-Name-Last: Firk
Author-Name: Franz Maybuechen
Author-X-Name-First: Franz
Author-X-Name-Last: Maybuechen
Author-Name: Jana Oehmichen
Author-X-Name-First: Jana
Author-X-Name-Last: Oehmichen
Author-Name: Michael Wolff
Author-X-Name-First: Michael
Author-X-Name-Last: Wolff
Title: Value-based Management and Merger & Acquisition Returns: A Multi-level Contingency Model
Abstract: 
 Whereas the performance effects of value-based management (VBM) have been intensively addressed in previous research, little is known regarding whether—and which—specific managerial decisions are improved by VBM. In this study, we take advantage of merger and acquisition (M&A) decisions that allow us to analyze a specific managerial decision with a direct assessment by the capital market. Moreover, to better grasp the underlying mechanisms of VBM, we consider potential contingency factors that may affect the relationship between VBM and M&As. Specifically, we examine the risk of managerial self-interest in M&A decisions that may be influenced by a firm's internal, industry- and country-specific contexts. We gather VBM data of firms from the Standard & Poor's 500 Index and the MSCI Europe Index between 2005 and 2011, and combine the data with deal data resulting in a sample of 2787 deals. Our empirical results do not indicate a positive direct effect from VBM on M&A returns. However, we find that VBM leads to superior M&A returns in the presence of contingency factors that increase the risk for self-interested managerial decisions.
Journal: European Accounting Review
Pages: 451-482
Issue: 3
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638180.2018.1492947
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1492947
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Handle: RePEc:taf:euract:v:28:y:2019:i:3:p:451-482




Template-Type: ReDIF-Article 1.0
Author-Name: Walid Ben Amar
Author-X-Name-First: Walid
Author-X-Name-Last: Ben Amar
Author-Name: Luo He
Author-X-Name-First: Luo
Author-X-Name-Last: He
Author-Name: Tiemei Li
Author-X-Name-First: Tiemei
Author-X-Name-Last: Li
Author-Name: Michel Magnan
Author-X-Name-First: Michel
Author-X-Name-Last: Magnan
Title: The Corrosive Effect of Offshore Financial Centers on Multinational Firms’ Disclosure Strategy
Abstract: 
 This study investigates whether U.S. multinational firms with subsidiaries located in offshore financial centers (OFCs) (i.e. offshore firms) are more likely to be opaque in their voluntary disclosure relative to U.S. multinationals without such subsidiaries (non-offshore firms). We use management earnings forecasts to capture corporate voluntary disclosure. Consistent with the opportunism view, but inconsistent with the efficiency argument, our results (including robustness checks) show that offshore firms are less likely to issue earnings forecasts, disclose forecasts less frequently, exhibit a stronger tendency to withhold bad news forecasts, and release less precise forecasts than non-offshore firms. Moreover, of the three distinct dimensions of OFCs’ institutional environment, namely, low taxation, lax regulation, and secrecy policy, each plays a role in negatively shaping firms’ disclosure strategy. Thus, OFCs’ institutional features exacerbate the opacity that plagues firms seeking to avoid taxes via their OFC subsidiaries. Our results are consistent with the notion that, beyond the scope of taxes, multinational firms’ use of OFCs has a corrosive effect on market information dynamics. Hence, OFCs have a much wider impact on the U.S. economy as well as other major economies than just tax avoidance or evasion.
Journal: European Accounting Review
Pages: 483-512
Issue: 3
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638180.2018.1497520
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1497520
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Handle: RePEc:taf:euract:v:28:y:2019:i:3:p:483-512




Template-Type: ReDIF-Article 1.0
Author-Name: Hongkang Xu
Author-X-Name-First: Hongkang
Author-X-Name-Last: Xu
Author-Name: Mai Dao
Author-X-Name-First: Mai
Author-X-Name-Last: Dao
Author-Name: Alex Petkevich
Author-X-Name-First: Alex
Author-X-Name-Last: Petkevich
Title: Political Corruption and Auditor Behavior: Evidence from US Firms
Abstract: 
 This paper investigates the impact of political corruption on auditor behavior in the United States. We find that US firms headquartered in more corrupt regions pay higher audit fees, have longer audit report lags, and are more likely to receive a going concern audit opinion. Political corruption is a manifestation of a weak institutional environment and, as such, weakens the rule of law. In addition, political corruption erodes the public’s belief in a political system and reduces interpersonal trust. Our results suggest that auditors assess the risk and trustworthiness of their clients based on where firms are headquartered. The results are robust to using a 2SLS regression analysis and a propensity-score-matched sample. This study extends the prior research on political corruption and the client risk management strategies used by external auditors. Moreover, the current study will be helpful to regulators considering the more explicit role of external auditors in corruption risk assessment.
Journal: European Accounting Review
Pages: 513-540
Issue: 3
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638180.2018.1499547
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1499547
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Handle: RePEc:taf:euract:v:28:y:2019:i:3:p:513-540




Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Ching Chang
Author-X-Name-First: Wen-Ching
Author-X-Name-Last: Chang
Author-Name: Hiu Lam Choy
Author-X-Name-First: Hiu Lam
Author-X-Name-Last: Choy
Author-Name: Huey-Yeh Lin
Author-X-Name-First: Huey-Yeh
Author-X-Name-Last: Lin
Author-Name: Meihua Koo
Author-X-Name-First: Meihua
Author-X-Name-Last: Koo
Title: The Determinants and Effects of Clients Following Audit Partners Who Switch Audit Firms
Abstract: 
 We examine the determinants of clients’ decision to follow departing partners to new audit firms and the effect of this decision on the likelihood of financial restatements. Using Taiwanese audit partner turnover data from 1984 to 2010, we find that clients are more likely to follow departing partners when the partners have more clients, longer tenure, and when both lead and concurring partners leave simultaneously. By contrast, clients are more likely to stay with their incumbent audit firms when the firms are one of the Big Four or when only the concurring partners leave. The extended partner tenure due to clients following departing partners, however, does not enhance audit quality. In fact, clients that stay at the incumbent firm experience a significant decrease in the probability of financial restatements in the first year after the audit partners leave, but clients that follow do not.
Journal: European Accounting Review
Pages: 541-571
Issue: 3
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638180.2018.1509014
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1509014
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Handle: RePEc:taf:euract:v:28:y:2019:i:3:p:541-571




Template-Type: ReDIF-Article 1.0
Author-Name: Thorsten Sellhorn
Author-X-Name-First: Thorsten
Author-X-Name-Last: Sellhorn
Author-Name: Christian Stier
Author-X-Name-First: Christian
Author-X-Name-Last: Stier
Title: Fair Value Measurement for Long-Lived Operating Assets: Research Evidence
Abstract: 
 This paper reviews research evidence on the usefulness of fair value measurement of long-lived operating assets for financial reporting. Although economically material, these assets have been sidelined in the current fair value debate that largely centers on financial assets, from which operating assets differ in important respects. Our review provides several insights. First, fair value measurement is pervasive for investment property, while nearly non-existent for PP&E and intangible assets. Second, external fair value appraisers help enhance the decision usefulness of fair values. Third, the determinants of fair-value-related reporting choices vary by context and are not yet well-understood. Fourth, fair value measurement is largely useful when it comes to the valuation role of financial reporting, but this usefulness varies across recognized and disclosed fair values. Fifth, the contracting implications of fair value measurement for long-lived operating assets are severely under-researched. Overall, whereas extant research provides relevant insights, it is derived from diverse settings employing different measures and research designs, and does not yet provide an accumulation of evidence sufficient for final clarity about the determinants and consequences of fair value measurement for long-lived operating assets. Based on this conclusion, we develop several suggestions for future research in this area.
Journal: European Accounting Review
Pages: 573-603
Issue: 3
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638180.2018.1511816
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1511816
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Handle: RePEc:taf:euract:v:28:y:2019:i:3:p:573-603




Template-Type: ReDIF-Article 1.0
Author-Name: Ben R. Marshall
Author-X-Name-First: Ben R.
Author-X-Name-Last: Marshall
Author-Name: Nick Nguyen
Author-X-Name-First: Nick
Author-X-Name-Last: Nguyen
Author-Name: Nuttawat Visaltanachoti
Author-X-Name-First: Nuttawat
Author-X-Name-Last: Visaltanachoti
Title: A Note on Intraday Event Studies
Abstract: 
 We investigate the specification and power of intraday event study test statistics. Mean, market, and matched firm models generate well-specified return results for a range of intervals up to 60 min around the event. These models detect return shocks equivalent to one spread in one-minute interval data and three spreads in longer intervals. Researchers using intraday return event studies can, therefore, be confident in their robustness. Some volume event study approaches have reasonable power but they are not generally well specified, while a matched-firm approach gives the best combination of specification and power for spread event studies.
Journal: European Accounting Review
Pages: 605-619
Issue: 3
Volume: 28
Year: 2019
Month: 5
X-DOI: 10.1080/09638180.2018.1530606
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1530606
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Handle: RePEc:taf:euract:v:28:y:2019:i:3:p:605-619




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bauer
Author-X-Name-First: Thomas
Author-X-Name-Last: Bauer
Author-Name: Thomas Kourouxous
Author-X-Name-First: Thomas
Author-X-Name-Last: Kourouxous
Title: Capital Charge Rates, Investment Incentives and Taxation
Abstract: 
 This paper studies the impact of personal and corporate income taxation on capital charge rates in a delegation setting with a risk-averse manager. If the investment level influences the riskiness of the investment project, the capital charge rate deviates from the firm's cost of capital and depends crucially on the manager's personal income tax rate. Contradicting conventional wisdom, we find that a higher personal income tax rate induces higher investment expenditures and, surprisingly, increases the capital charge rate. The countervailing effect that a higher capital charge rate induces higher and not lower investment expenditures persists for pre-tax and after-tax performance measures as well as when the tax deductibility of managerial compensation is limited. Corporate income tax causes a similar effect only in the case of limited tax deductibility of compensation. Our insights remain valid regardless of the financing structure and the risk attitude of the investors.
Journal: European Accounting Review
Pages: 419-440
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1169938
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1169938
File-Format: text/html
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Handle: RePEc:taf:euract:v:26:y:2017:i:3:p:419-440




Template-Type: ReDIF-Article 1.0
Author-Name: Markus Diller
Author-X-Name-First: Markus
Author-X-Name-Last: Diller
Author-Name: Pia Kortebusch
Author-X-Name-First: Pia
Author-X-Name-Last: Kortebusch
Author-Name: Georg Schneider
Author-X-Name-First: Georg
Author-X-Name-Last: Schneider
Author-Name: Caren Sureth-Sloane
Author-X-Name-First: Caren
Author-X-Name-Last: Sureth-Sloane
Title: Boon or Bane? Advance Tax Rulings as a Measure to Mitigate Tax Uncertainty and Foster Investment
Abstract: 
 Politicians and tax practitioners often claim that tax uncertainty negatively affects investment. In many countries, firms can request fee-based advance tax rulings (ATRs) to mitigate tax uncertainty. We analyse theoretically the circumstances under which investors request ATRs, how tax authorities should price them and how they can affect investment. We assume that tax authorities integrate investors’ reasoning into their decisions. We find that in special cases the optimal fee tax authorities should charge is prohibitively high, thus firms will refrain from requesting ATRs. However, we find that revenue-maximising tax authorities offer ATRs if the ruling enables them either to significantly reduce their tax audit costs or to increase the probability of detecting ambiguous tax issues. Under certain circumstances, ATRs may effectively foster investment and potentially benefit both the tax authorities and taxpayers. Our results provide new explanations for why taxpayers that face high levels of tax uncertainty often do not request ATRs, even when the fee is rather low. Our results also hold when the tax authority maximises social wealth instead of its revenues. Regulatory changes in ATR requirements might serve as a natural quasi-experiment for an empirical study of our predictions regarding investment decisions.
Journal: European Accounting Review
Pages: 441-468
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1169939
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1169939
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Template-Type: ReDIF-Article 1.0
Author-Name: Mostafa Monzur Hasan
Author-X-Name-First: Mostafa Monzur
Author-X-Name-Last: Hasan
Author-Name: Ahmed Al-Hadi
Author-X-Name-First: Ahmed
Author-X-Name-Last: Al-Hadi
Author-Name: Grantley Taylor
Author-X-Name-First: Grantley
Author-X-Name-Last: Taylor
Author-Name: Grant Richardson
Author-X-Name-First: Grant
Author-X-Name-Last: Richardson
Title: Does a Firm’s Life Cycle Explain Its Propensity to Engage in Corporate Tax Avoidance?
Abstract: 
 This study examines whether a firm’s life cycle explains its propensity to engage in corporate tax avoidance. Based on the Dickinson (2011) model of firm life cycle stages and a large dataset of US publicly listed firms over the 1987–2013 period, we find that tax avoidance is significantly positively associated with the introduction and decline stages and significantly negatively associated with the growth and mature stages using the shake-out stage as a benchmark. We observe a U-shaped pattern in tax avoidance outcomes across the various life cycle stages in line with the predictions of dynamic resource-based theory. Our findings are consistent using several robustness checks. Overall, our results show that a firm’s life cycle stage is a significant determinant of tax avoidance.
Journal: European Accounting Review
Pages: 469-501
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1194220
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1194220
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Handle: RePEc:taf:euract:v:26:y:2017:i:3:p:469-501




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Krenn
Author-X-Name-First: Peter
Author-X-Name-Last: Krenn
Title: The Impact of Taxes on Competition for CEOs
Abstract: 
 This paper contributes to the question of how taxation of corporate profits and wages affects competition among firms for highly skilled human resources such as CEOs. Use of a theoretical model shows that wage taxes can have a substantial impact on the outcome of such a competition if marginal tax rates are different as in an international labor market. Further, the paper shows that increasing the wage tax rate unilaterally can have an ambiguous effect on observed gross compensation levels. However, in a local labor market for CEOs, observed gross fixed salaries should decline in the wage tax rate. Tax effects in a market for CEOs is a particularly interesting topic because recent developments with respect to compensation practices of top-level managers have opened a public debate about the use of instruments for regulating compensation of those managers. Furthermore, many countries around the world use tax incentives in order to facilitate immigration of highly skilled human resources. The investigation follows an analytical economics-based approach by extending an LEN model with elements of competition for scarce human resources and income taxation. It investigates the impact of differential taxation on the competition between two firms for the exclusive service of a unique, highly skilled CEO.
Journal: European Accounting Review
Pages: 503-530
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1200477
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1200477
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Template-Type: ReDIF-Article 1.0
Author-Name: Kathleen Andries
Author-X-Name-First: Kathleen
Author-X-Name-Last: Andries
Author-Name: Martine Cools
Author-X-Name-First: Martine
Author-X-Name-Last: Cools
Author-Name: Steve Van Uytbergen
Author-X-Name-First: Steve
Author-X-Name-Last: Van Uytbergen
Title: To Shift or Not To Shift? Intertemporal Income Shifting as a Response to the Risk Capital Allowance Introduction in Belgium
Abstract: 
 This study examines how firms shift profits from one period to another in response to the introduction of an allowance for corporate equity. We focus on the introduction of the risk capital allowance in Belgium by the law of 22 June 2005. We predict and find that firms with relatively low (but positive) earnings in 2006 have incentives to defer profits in 2005 and that this effect is stronger for firms with higher equity ratios. Conversely, we predict that firms that are highly profitable in 2006 and have large net operating loss carryforwards in 2005 have incentives to accelerate profits. We find that only subsets of firms react to the latter incentive, in particular firms with higher equity ratios. Our findings show that tax-related benefits motivate firms to engage in conforming tax avoidance and provide evidence of cross-sectional variations in their reaction to these incentives. These insights contribute to the literature outlining the costs and benefits of changes in tax regimes and documenting earnings management in response to tax incentives in a high book-tax-conform environment.
Journal: European Accounting Review
Pages: 531-559
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1202854
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1202854
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Handle: RePEc:taf:euract:v:26:y:2017:i:3:p:531-559




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: European Accounting Review
Pages: vii-vii
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1238081
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1238081
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Handle: RePEc:taf:euract:v:26:y:2017:i:3:p:vii-vii




Template-Type: ReDIF-Article 1.0
Author-Name: Kay Blaufus
Author-X-Name-First: Kay
Author-X-Name-Last: Blaufus
Author-Name: Jonathan Bob
Author-X-Name-First: Jonathan
Author-X-Name-Last: Bob
Author-Name: Philipp E. Otto
Author-X-Name-First: Philipp E.
Author-X-Name-Last: Otto
Author-Name: Nadja Wolf
Author-X-Name-First: Nadja
Author-X-Name-Last: Wolf
Title: The Effect of Tax Privacy on Tax Compliance – An Experimental Investigation
Abstract: 
 In this paper, we use a tax compliance game with a public good to investigate the impact of public disclosure on tax evasion behavior experimentally. Three different types of tax privacy are tested, ranging from complete privacy to full disclosure. We expect two different effects: first, a contagion effect, arising when an individual observes non-compliance of other individuals and therefore reduces her own tax compliance; second, a shame effect of increased tax compliance due to the anticipated shame of being declared a tax evader. Both these effects are supported by the experimental results. However, the shame effect reduces tax evasion only in the short run. The influence of shame diminishes over the course of the experiment with subjects observing the non-compliance of other participants. Thus, our results indicate that when the contagion and the shame effect are present the latter is not strong enough to override the former in the long run. Furthermore, disclosing tax information anonymously increases tax evasion compared to providing no information on tax evasion behavior. These observations are of particular importance for tax policy because public disclosure may lead to more evasion instead of less when supporting a crowding-out of the tax morale.
Journal: European Accounting Review
Pages: 561-580
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1258319
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1258319
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Template-Type: ReDIF-Article 1.0
Author-Name: Sören M. Bergner
Author-X-Name-First: Sören M.
Author-X-Name-Last: Bergner
Author-Name: Jost H. Heckemeyer
Author-X-Name-First: Jost H.
Author-X-Name-Last: Heckemeyer
Title: Simplified Tax Accounting and the Choice of Legal Form
Abstract: 
 This study investigates whether the ability to choose simplified methods of tax accounting is an important consideration in legal form decisions. Most European countries provide simplified, cash-based rules of tax accounting for small firms that considerably deviate from their general accrual tax accounting rules. The small business sector is thereby sought to be protected from disproportionally high compliance burdens. Simplified tax accounting, however, is only available for non-corporate businesses. If simplified tax accounting is indeed associated with a net benefit, its (un-)availability can change the relative gain to incorporation. We test this conjecture using data on corporate shares of business in 27 European countries over the period 2004–2010. Exploiting variation in eligibility thresholds for simplified tax accounting over time, the results suggest that small businesses indeed consider the option to choose simplified tax accounting in their choice of legal form.
Journal: European Accounting Review
Pages: 581-601
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2016.1264881
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1264881
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Template-Type: ReDIF-Article 1.0
Author-Name: Jacco L. Wielhouwer
Author-X-Name-First: Jacco L.
Author-X-Name-Last: Wielhouwer
Author-Name: Eelke Wiersma
Author-X-Name-First: Eelke
Author-X-Name-Last: Wiersma
Title: Investment Decisions and Depreciation Choices under a Discretionary Tax Depreciation Rule
Abstract: 
 Prior studies have shown limited impact of the US bonus depreciation rules on firm investments during economic downturns. In this article we study the effects of a set of more flexible rules – discretionary tax depreciation (DTD) – introduced in the Netherlands during the 2009–2011 economic crisis. Our simulation results show DTD, which allows firms to accelerate and also to postpone depreciation, to be much more effective than bonus depreciation in reducing the expected value of tax payments, especially in crisis periods. Using a sample of 325 clients of a single office of a Dutch accounting firm, we show that DTD has led to higher investments in assets qualifying for discretionary depreciation for firms that faced the highest marginal tax rate. For other firms, the additional investments crowd out investments in assets that do not qualify for DTD. Our analysis on the actual depreciation choices reveals that firms postpone depreciation when facing losses or loss carry forwards, or to smooth taxable income under the progressive tax system. Our results suggest that a fiscal policy that permits firms to postpone depreciation, as well as to accelerate, may stimulate investment.
Journal: European Accounting Review
Pages: 603-627
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2017.1286250
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1286250
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Handle: RePEc:taf:euract:v:26:y:2017:i:3:p:603-627




Template-Type: ReDIF-Article 1.0
Author-Name: Hervé Stolowy
Author-X-Name-First: Hervé
Author-X-Name-Last: Stolowy
Title: Letter from the Editor: Why Are Papers Desk Rejected at ?
Abstract: 
 The aim of this note is to present desk rejections made by EAR in 2016 and also to provide some suggestions to authors in order to avoid these desk rejections.
Journal: European Accounting Review
Pages: 411-418
Issue: 3
Volume: 26
Year: 2017
Month: 7
X-DOI: 10.1080/09638180.2017.1347360
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1347360
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Template-Type: ReDIF-Article 1.0
Author-Name: Antti Rautiainen
Author-X-Name-First: Antti
Author-X-Name-Last: Rautiainen
Author-Name: Elena Urquía-Grande
Author-X-Name-First: Elena
Author-X-Name-Last: Urquía-Grande
Author-Name: Clara Muñoz-Colomina
Author-X-Name-First: Clara
Author-X-Name-Last: Muñoz-Colomina
Title: Institutional Logics in Police Performance Indicator Development: A Comparative Case Study of Spain and Finland
Abstract: 
 Police performance is not easily measurable and the organization and circumstances of police work vary among European countries. Further, police work is surrounded by multiple pressures to make it both economical and effective. Consequently, there are multiple institutional logics in decision-making which may affect the selection and the use of police key performance indicators (KPIs). The KPI selection and use processes reflect the institutional logics, though KPI use may also sometimes influence the institutional logics of police work. In this study, we analyze the KPIs and institutional logics in police work in Finland and Spain. A comparative case research approach is used in order to highlight the differences in institutional logic emphases and in circumstances. Data from semi-structured interviews, internet reports, project work, and discussions are used. Both similarities and differences in the KPIs and in the institutional logic emphasis are found between the Finnish and Spanish police. Understanding the partly general and partly locally constructed nature of institutional logics may facilitate the development of police work performance measurement. We also suggest ways of coping with multiple institutional logics. For example, risk analyses and selecting KPIs against the current institutional logic may facilitate organizational developments.
Journal: European Accounting Review
Pages: 165-191
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2015.1120412
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1120412
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Template-Type: ReDIF-Article 1.0
Author-Name: Choong-Yuel Yoo
Author-X-Name-First: Choong-Yuel
Author-X-Name-Last: Yoo
Author-Name: Jinhan Pae
Author-X-Name-First: Jinhan
Author-X-Name-Last: Pae
Title: Do Analysts Strategically Employ Cash Flow Forecast Revisions to Offset Negative Earnings Forecast Revisions?
Abstract: 
 We investigate whether analysts use cash flow forecasts to reduce the impact of earnings forecast revisions (EFRs) on market participants. In particular, we focus on conflict between an analyst's concurrent cash flow and earnings forecast revisions. We hypothesize and find that analysts are more likely to issue a positive cash flow forecast revision when they issue a negative earnings forecast revision concurrently, but not the opposite, particularly for Fortune 500 firms. Furthermore, our supplementary analyses suggest that (1) some analysts optimistically bias cash flow forecasts when they issue negative earnings forecast revisions; (2) the market pays less attention to the historical accuracy of analyst cash flow forecasts, so analysts have some latitude to present their cash flow forecasts in an optimistic way; and (3) the market reacts mainly to the direction, not the magnitude, of cash flow forecast revisions. Overall, these findings suggest that analysts may strategically use cash flow forecasts in conjunction with earnings forecasts to maintain good management relationships.
Journal: European Accounting Review
Pages: 193-214
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2015.1123102
File-URL: http://hdl.handle.net/10.1080/09638180.2015.1123102
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Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Wen Chang
Author-X-Name-First: Chia-Wen
Author-X-Name-Last: Chang
Author-Name: Ming-Chin Chen
Author-X-Name-First: Ming-Chin
Author-X-Name-Last: Chen
Author-Name: Vincent Y.S. Chen
Author-X-Name-First: Vincent Y.S.
Author-X-Name-Last: Chen
Title: Are Corporate Tax Reductions Real Benefits under Imputation Systems?
Abstract: 
 Imputation systems integrate corporate and shareholder personal income taxes to alleviate double taxation of dividend income. In this study, we empirically examine whether a corporate tax rate reduction under an imputation tax system benefits shareholders. Using Taiwan as a setting, our analyses indicate that decreasing the corporate tax rate is associated with an increase in dividend payout ratio and foreign investment. Moreover, the increase in dividend payout ratio is even greater for firms that have a higher increase in foreign ownership. Additionally, the market reacts positively to an announcement of a tax rate reduction; specifically, positive stock price reactions are stronger for firms that experienced a greater increase in foreign ownership in response to the tax rate reduction, for firms with greater liquidity constraints and more growth opportunities before the tax rate reduction, and for firms with a bigger decrease in effective tax rates after the tax rate reduction. Overall, we provide evidence that a tax rate reduction is associated with economic impacts and that foreign shareholders appear to be the main beneficiaries of a tax rate reduction under an imputation tax system.
Journal: European Accounting Review
Pages: 215-237
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2016.1145067
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1145067
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Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Feng (Jeffrey) Yu
Author-X-Name-First: Chia-Feng (Jeffrey)
Author-X-Name-Last: Yu
Title: Interactive Reporting Bias Surrounding CEO Turnover
Abstract: 
 This paper analyzes how CEO turnover affects successive CEOs' financial reporting decisions and the capital market price. I show that when an outgoing CEO (O) in period 1 is succeeded by an incoming CEO (N) in period 2, strategic interaction between O and N leads to interlinked earnings reports. Specifically, when the level of earnings reported by O is lower, N's reporting strategy is more likely to feature a downward reporting bias. Furthermore, by a comparison of the two-CEO setting with a setting with no CEO turnover, I show that with CEO turnover, (i) the period 2 earnings report is more sensitive to the private information of the CEO in control and less sensitive to the period 1 earnings report; (ii) the period 1 earnings report is more sensitive to the private information of the CEO in control; and (iii) the equilibrium stock price has the same sensitivities toward the associated risks, but is less sensitive to the periods 1 and 2 earnings reports. These results provide a novel explanation for managerial under-reporting bias based on strategic interaction between successive CEOs and shed light on the role of CEO turnover in earnings management behavior and capital market responses.
Journal: European Accounting Review
Pages: 239-282
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2016.1145068
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1145068
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Handle: RePEc:taf:euract:v:26:y:2017:i:2:p:239-282




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandros Sikalidis
Author-X-Name-First: Alexandros
Author-X-Name-Last: Sikalidis
Author-Name: Stergios Leventis
Author-X-Name-First: Stergios
Author-X-Name-Last: Leventis
Title: The Impact of Unrealized Fair Value Adjustments on Dividend Policy
Abstract: 
 We examine the impact of unrealized fair value adjustments on dividend policy. Dividend payouts should include only persistent income [Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings and taxes. American Economic Review, 46(2), 97–113]. In our institutional setting, however, regulators recommend the non-distribution of any income from fair value adjustments, which suggests that they interpret them as transitory. We empirically demonstrate that fair value adjustments on investment property are persistent, while those on financial securities are transitory. We further show that only fair value adjustments from investment properties are distributed. We argue that managers perceive the persistence of the two fair value components correctly, and by doing so, they distribute income consistent with the Lintner framework rather than on regulatory recommendations. Finally, by focusing on managerial optimism, debt contracting, and insider ownership, we demonstrate the conditions under which firms choose to deviate from regulator recommendations and to distribute fair value profits.
Journal: European Accounting Review
Pages: 283-310
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2016.1146153
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1146153
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Template-Type: ReDIF-Article 1.0
Author-Name: Cédric Lesage
Author-X-Name-First: Cédric
Author-X-Name-Last: Lesage
Author-Name: Nicole V. S. Ratzinger-Sakel
Author-X-Name-First: Nicole V. S.
Author-X-Name-Last: Ratzinger-Sakel
Author-Name: Jaana Kettunen
Author-X-Name-First: Jaana
Author-X-Name-Last: Kettunen
Title: Consequences of the Abandonment of Mandatory Joint Audit: An Empirical Study of Audit Costs and Audit Quality Effects
Abstract: 
 This paper focuses on the unique Danish setting in examining the consequences of abandoning a mandatory joint audit regime. We study the effects on audit costs (measured by audit fees) and audit quality (measured by abnormal accruals) of the abandonment of the mandatory joint audit in Denmark in 2005. We perform our analysis on non-financial listed Danish companies for the 2002–2010 period. Our results show that a joint audit is associated with higher fees, but that the association between joint audit and abnormal accruals is insignificant. This suggests that the higher audit fees cannot be explained by higher audit quality. Our results are robust to alternative measurements of fees and audit quality. Additional analyses show that the fee premium related to a joint audit decreases over time and that the Big 4 concentration in our sample has increased since the switch from mandatory to voluntary joint audit. Our results are consistent with the motivations driving the regulatory change in Denmark and are of interest to regulators and actors in the audit market.
Journal: European Accounting Review
Pages: 311-339
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2016.1152558
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1152558
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephen P. Baginski
Author-X-Name-First: Stephen P.
Author-X-Name-Last: Baginski
Author-Name: Saverio Bozzolan
Author-X-Name-First: Saverio
Author-X-Name-Last: Bozzolan
Author-Name: Antonio Marra
Author-X-Name-First: Antonio
Author-X-Name-Last: Marra
Author-Name: Pietro Mazzola
Author-X-Name-First: Pietro
Author-X-Name-Last: Mazzola
Title: Strategy, Valuation, and Forecast Accuracy: Evidence from Italian Strategic Plan Disclosures
Abstract: 
 Using a sample of 264 strategic plan presentations by Milan Stock Exchange firms during 2001–2012, we present evidence of both a security price reaction and an increase in the accuracy of analysts’ earnings forecasts pursuant to plan disclosure. In the cross-section, the information content of the plan disclosures and the accuracy increase are incrementally associated with the extent of forward-looking narrative disclosures in the plan, after controlling for other disclosures within and outside the plan presentation and the fact that the firm has self-selected into the sample. Both quantitative and qualitative narrative disclosures are informative to investors and analysts. The results are driven by narrative disclosures about company strategy and action plans rather than about the business environment in which the company operates. Our study informs the current debate on the use of voluntary comprehensive, integrated, long-run-oriented strategic plan disclosure as a potential complement for disclosures such as quarterly earnings forecasts that have been described as an example of ‘short-termism’.
Journal: European Accounting Review
Pages: 341-378
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2016.1152905
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1152905
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Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Bigus
Author-X-Name-First: Jochen
Author-X-Name-Last: Bigus
Author-Name: Christa Hillebrand
Author-X-Name-First: Christa
Author-X-Name-Last: Hillebrand
Title: Bank Relationships and Private Firms’ Financial Reporting Quality
Abstract: 
 Private firms with relatively high (proprietary) costs of disclosure may benefit from a close relationship with a bank. Relationship lending is based on intertemporal contracting that assumes that the bank is able to acquire private information about the firm and, moreover, to keep this information private. For both reasons, we expect and find that private firms with fewer bank relationships exhibit lower levels of financial reporting quality. Controlling for many other factors, firms with a single bank relationship disclose their financial reports about 14 days later. The size of such firms’ financial reports is also smaller, containing approximately 8% fewer words than the median report. Firms with a single bank relationship also exhibit more earnings management, exceeding the median value of the three-year sum of absolute discretionary accruals by about 20%. The results are robust to different econometric specifications, including endogeneity concerns. They indicate that private firms choose to be opaque in the presence of fewer lending relationships.
Journal: European Accounting Review
Pages: 379-409
Issue: 2
Volume: 26
Year: 2017
Month: 4
X-DOI: 10.1080/09638180.2016.1152906
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1152906
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Handle: RePEc:taf:euract:v:26:y:2017:i:2:p:379-409




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Jacob
Author-X-Name-First: Martin
Author-X-Name-Last: Jacob
Title: Tax Regimes and Capital Gains Realizations
Abstract: 
 This paper contrasts the individual capital gains realization behavior between progressive and proportional tax regimes. Using a longitudinal panel of over 288,000 individuals in Sweden, I exploit the 1991 tax reform in Sweden that changed progressive capital gains tax rates ranging from 12% to 80% to a proportional tax rate of 30%. Using the proportional tax system to control for non-tax reasons to realize capital gains, I show that individuals are highly responsive to capital gains tax incentives created by temporary income changes under a progressive capital gains tax. More specifically, I find that individuals with temporary negative (positive) income changes sell (hold) shares that they would hold (sell) in the absence of temporary tax incentives. Further, I show that high-income individuals are more tax sensitive than low-income individuals. This result indicates that low-income individuals facing temporary negative income changes could trade predominantly for non-tax reasons.
Journal: European Accounting Review
Pages: 1-21
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1203811
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1203811
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Handle: RePEc:taf:euract:v:27:y:2018:i:1:p:1-21




Template-Type: ReDIF-Article 1.0
Author-Name: Konrad Lang
Author-X-Name-First: Konrad
Author-X-Name-Last: Lang
Title: Voluntary Disclosure and Analyst Forecast
Abstract: 
 Empiricists document that firms more often voluntarily disclose bad news than good news and link this pessimism to managers’ increased incentives not to fall short of earnings expectations. This paper analyzes the voluntary disclosure of a manager’s private information by explicitly considering her incentives to meet or beat an analyst’s earnings forecast. The model predicts that managers who face strong incentives to meet or beat these forecasts more frequently disclose bad news than good news in order to guide analysts’ expectations about future earnings downward. This pessimism is higher in markets with less informed managers and may hold even if the manager has strong incentives for high stock prices and meet-or-beat incentives are comparably low.
Journal: European Accounting Review
Pages: 23-36
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1217783
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1217783
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael J. Peel
Author-X-Name-First: Michael J.
Author-X-Name-Last: Peel
Title: Addressing Unobserved Selection Bias in Accounting Studies: The Bias Minimization Method
Abstract: 
 This note explains the minimum-biased estimator (MBE), which accounting researchers can use to analyze the robustness of regression or propensity score-matched treatment estimates to unobserved selection (endogeneity) bias. Based on the principles of the Heckman treatment model, the MBE entails estimating matched treatment effects within a range of propensity scores that minimizes unobserved selection bias. A major advantage of the MBE is that an instrumental variable is not required. The potential utility of the MBE in accounting studies is highlighted, and a familiar empirical illustration is provided.
Journal: European Accounting Review
Pages: 173-183
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1220322
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1220322
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Handle: RePEc:taf:euract:v:27:y:2018:i:1:p:173-183




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Bigus
Author-X-Name-First: Jochen
Author-X-Name-Last: Bigus
Author-Name: Stefanie Häfele
Author-X-Name-First: Stefanie
Author-X-Name-Last: Häfele
Title: Shareholder Loans and Earnings Smoothing – Empirical Findings from German Private Firms
Abstract: 
 This paper analyzes the interplay between shareholder loans and earnings smoothing in German private corporations. Shareholders who grant loans have a dual stakeholder role, being both equity holders and creditors. Those loans could be lost, because bankruptcy law requires their subordination in the event of bankruptcy. We therefore expect shareholder loans to mitigate agency problems of debt. This reduces the need for debt covenants and earnings smoothing. Moreover, the interest payments from shareholder loans tend to lower payout volatility which also reduces the need for dividend and earnings smoothing. We expect and find that private firms with shareholder loans exhibit significantly lower levels of earnings smoothing than other private firms. We find that with a 10 percentage-point increase in the shareholder loans to total assets ratio, earnings smoothing decreases by about 10% of the mean value. We also find that this substitution effect usually occurs in case of managerial ownership and tends to be slightly weaker in the event of dispersed ownership. The results are robust for different econometric specifications, including different measures of key variables and propensity score matching. The paper suggests that financial reporting by private firms responds to the dual stakeholder role of shareholder loans.
Journal: European Accounting Review
Pages: 37-74
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1229206
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1229206
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Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Balsmeier
Author-X-Name-First: Benjamin
Author-X-Name-Last: Balsmeier
Author-Name: Steven Vanhaverbeke
Author-X-Name-First: Steven
Author-X-Name-Last: Vanhaverbeke
Title: International Financial Reporting Standards and Private Firms’ Access to Bank Loans
Abstract: 
 Prior research has focused on publicly listed firms when examining the economic consequences of adopting International Financial Reporting Standards (IFRS). This study extends the literature by examining the ability of private firms to attract bank loans through the use of IFRS. Based on firm-level data from 25 countries, we show that private firms that voluntarily use IFRS are associated with a higher propensity to attract debt from foreign banks. We find no such association when examining their relationships with domestic banks. Supplementary analyses show that the results are mainly driven by private firms operating in countries with strong regulatory enforcement. The findings suggest that, conditional on adequate enforcement, the use of IFRS provides useful information for foreign non-relationship banks.
Journal: European Accounting Review
Pages: 75-104
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1229207
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1229207
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Handle: RePEc:taf:euract:v:27:y:2018:i:1:p:75-104




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan A. Milian
Author-X-Name-First: Jonathan A.
Author-X-Name-Last: Milian
Title: The Information Content of Guidance and Earnings
Abstract: 
 I compare the information content of quarterly earnings guidance and quarterly earnings by examining their associations with current and future stock returns when the two signals are bundled at earnings announcements. At the bundled announcement, I find a significantly stronger association between announcement returns and guidance news. From the day after the bundled announcement through the next earnings announcement, both signals generate abnormal return drifts of about 200 basis points. However, the timing of the post-announcement returns differs considerably. For guidance, about 50% of the post-announcement drift occurs at the next earnings announcement. In contrast, for earnings, about 20% of the preceding drift reverses at the next earnings announcement. Investor ignorance of the drift following guidance news coupled with a fixation on post-earnings announcement drift potentially explains this surprising difference in the timing of the post-announcement returns. Overall, this study indicates that bundled quarterly earnings guidance contains more information than quarterly earnings and that investors incorrectly overweight the earnings news and underweight the guidance news during the post-announcement period until the next earnings announcement.
Journal: European Accounting Review
Pages: 105-128
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1231074
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1231074
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Template-Type: ReDIF-Article 1.0
Author-Name: Narisa Tianjing Dai
Author-X-Name-First: Narisa Tianjing
Author-X-Name-Last: Dai
Author-Name: Xi (Jason) Kuang
Author-X-Name-First: Xi (Jason)
Author-X-Name-Last: Kuang
Author-Name: Guliang Tang
Author-X-Name-First: Guliang
Author-X-Name-Last: Tang
Title: Differential Weighting of Objective Versus Subjective Measures in Performance Evaluation: Experimental Evidence
Abstract: 
 In this paper, we conduct two experiments to investigate how managers’ differential weighting of objective versus subjective measures affects their performance-evaluation decisions. Drawing on psychological theory, we predict that managers heuristically perceive objective measures to be more scientific than subjective measures. As a result, their performance-evaluation decisions are influenced more by objective measures than by subjective measures. Experimental results are consistent with our prediction. Supplemental analyses further support our theory by showing that participants do not perceive objective measures to be more important for performance evaluation nor do they perceive subjective measurement to be inappropriate. The implications of our findings for management accounting research and practice are discussed.
Journal: European Accounting Review
Pages: 129-148
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1234402
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1234402
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Handle: RePEc:taf:euract:v:27:y:2018:i:1:p:129-148




Template-Type: ReDIF-Article 1.0
Author-Name: Raúl Barroso
Author-X-Name-First: Raúl
Author-X-Name-Last: Barroso
Author-Name: Chiraz Ben Ali
Author-X-Name-First: Chiraz
Author-X-Name-Last: Ben Ali
Author-Name: Cédric Lesage
Author-X-Name-First: Cédric
Author-X-Name-Last: Lesage
Title: Blockholders’ Ownership and Audit Fees: The Impact of the Corporate Governance Model
Abstract: 
 This paper examines how two prominent corporate governance models, namely the shareholder and stakeholder models, have different effects on the relation between agency conflicts and the supply, and demand of audit services. Shareholder (stakeholder) countries rely heavily on public (private) information to reduce information asymmetry for outside investors in the context of high (low) litigation risk. We expect audit fees to reflect the level of agency conflicts in shareholder countries as well as the needs for information of the major blockholders in stakeholder countries. Using a sample of 7982 firm-year observations from 19 countries, we find a U-shaped relation between controlling shareholding and audit fees for shareholder countries and an inverted U-shaped relation between controlling shareholding and audit fees for stakeholder countries. These results are consistent across different firm-level governance arrangements.
Journal: European Accounting Review
Pages: 149-172
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1243483
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1243483
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Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Shan Chang
Author-X-Name-First: Yu-Shan
Author-X-Name-Last: Chang
Author-Name: Yu-Jr Lin
Author-X-Name-First: Yu-Jr
Author-X-Name-Last: Lin
Author-Name: Li-Lin (Sunny) Liu
Author-X-Name-First: Li-Lin (Sunny)
Author-X-Name-Last: Liu
Author-Name: Min-Jeng Shiue
Author-X-Name-First: Min-Jeng
Author-X-Name-Last: Shiue
Author-Name: Clark M. Wheatley
Author-X-Name-First: Clark M.
Author-X-Name-Last: Wheatley
Title: The Use of Hierarchical Linear Modeling to Address Lack-of-Independence in Empirical Auditing Research
Abstract: 
 Prior empirical auditing research has typically used linear regression analysis to analyze auditor relationships. However, because audit firms, audit partners, and audit clients are nested and clustered, data on them lacks independence, and violates the assumptions necessary for valid tests using simple linear regressions. This deficiency can be overcome by employing the hierarchical linear modeling (HLM) technique to conduct empirical tests. We illustrate this by employing HLM to explain the relationship between audit quality and audit firm, and audit partner tenure. We show that employing HLM yields different results than those found using ordinary least squares.
Journal: European Accounting Review
Pages: 185-196
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2016.1248459
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1248459
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Handle: RePEc:taf:euract:v:27:y:2018:i:1:p:185-196




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Thank you to Associate Editors, Editorial Board Members, Ad hoc Associate Editors, Guest Editors and Reviewers 2017
Journal: European Accounting Review
Pages: 197-207
Issue: 1
Volume: 27
Year: 2018
Month: 1
X-DOI: 10.1080/09638180.2018.1431001
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1431001
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Handle: RePEc:taf:euract:v:27:y:2018:i:1:p:197-207




Template-Type: ReDIF-Article 1.0
Author-Name: Claudine Mangen
Author-X-Name-First: Claudine
Author-X-Name-Last: Mangen
Title: Implications of Economic Shocks for CEO Performance Evaluation
Abstract: 
 I study the implications of economic shocks for objective and subjective CEO performance evaluation. A shock perturbs pay-setting parties' information about the firm and the CEO. I argue that pay-setting parties then lack information they need for evaluating the CEO objectively, and de-emphasize objective CEO performance evaluation in favor of subjective CEO performance evaluation; over time, pay-setting parties become better informed about the firm as well as the CEO, and increasingly use again objective CEO performance evaluation. My evidence, which uses data on objective and subjective CEO performance evaluation in US executive pay between 1992 and 2013, is consistent with my argument.
Journal: European Accounting Review
Pages: 629-650
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2016.1175363
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1175363
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Template-Type: ReDIF-Article 1.0
Author-Name: Bobae Choi
Author-X-Name-First: Bobae
Author-X-Name-Last: Choi
Author-Name: Jae B. Kim
Author-X-Name-First: Jae B.
Author-X-Name-Last: Kim
Title: The Effect of CEO Stock-Based Compensation on the Pricing of Future Earnings
Abstract: 
 This paper examines whether CEO stock-based compensation has an effect on the market’s ability to predict future earnings. When stock-based compensation motivates managers to share their private information with shareholders, it will expedite the pricing of future earnings in current stock prices. In contrast, when equity-compensated managers attempt to temporarily manipulate the stock price to maximize their own benefit rather than that of shareholders, the market may not fully anticipate future performance. We find that a CEO’s stock-based compensation strengthens the association between current returns and future earnings, indicating that more information about future earnings is reflected in current stock prices. In addition, we find that the positive effect is weaker for firms that have a high level of signed discretionary accruals or a low management forecast frequency. Overall, our study suggests that on average, equity-based compensation improves the informativeness of stock prices about future earnings, while opportunistic discretionary accruals or lowered earnings guidance hamper this improvement.
Journal: European Accounting Review
Pages: 651-679
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2016.1175364
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1175364
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Handle: RePEc:taf:euract:v:26:y:2017:i:4:p:651-679




Template-Type: ReDIF-Article 1.0
Author-Name: Thorsten Knauer
Author-X-Name-First: Thorsten
Author-X-Name-Last: Knauer
Author-Name: Friedrich Sommer
Author-X-Name-First: Friedrich
Author-X-Name-Last: Sommer
Author-Name: Arnt Wöhrmann
Author-X-Name-First: Arnt
Author-X-Name-Last: Wöhrmann
Title: Tournament Winner Proportion and its Effect on Effort: An Investigation of the Underlying Psychological Mechanisms
Abstract: 
 This study investigates the effects of the psychological mechanisms activated by different proportions of tournament winners on effort. Using a real-effort experiment that allows the evolution of social comparison, which is central to our theory, we show that firms can increase employee effort (and performance) by increasing the proportion of winners. Based on a causal model, we generate evidence for our theory that this effect is driven by relative performance concerns and bonus concerns, both of which depend on the proportion of tournament winners. In addition, we find that, over time, the change in effort is more negative the lower the proportion of winners. This effect is driven by the different behaviors of winners and losers in a previous tournament.
Journal: European Accounting Review
Pages: 681-702
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2016.1175957
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1175957
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Handle: RePEc:taf:euract:v:26:y:2017:i:4:p:681-702




Template-Type: ReDIF-Article 1.0
Author-Name: Marion Brivot
Author-X-Name-First: Marion
Author-X-Name-Last: Brivot
Author-Name: Darlene Himick
Author-X-Name-First: Darlene
Author-X-Name-Last: Himick
Author-Name: Daniel Martinez
Author-X-Name-First: Daniel
Author-X-Name-Last: Martinez
Title: Constructing, Contesting, and Overloading: A Study of Risk Management Framing
Abstract: 
 In this study, we examine the ways in which actuarial consultants attempt to motivate their clients to see pension-related accounting regulations and market volatility as ‘risks’ that need to be managed through particular risk-mitigating technologies. This study is predicated on 23 interviews conducted with actuarial consultants and their clients and consulting agencies’ publically available documents. Taking framing theory and the sociological literature on risk as conceptual starting points, we find that consultants engage in specific framing strategies to persuade clients by rhetorically weaving a series of financial risk objects, financial de-risking strategies, and calls for action. We also find that current and prospective clients sometimes contest consultants’ prescriptions, despite the pervasiveness of risk management as the ultima ratio of organizational governance. This contestation occurs, ironically, because adopting de-risking solutions in one area is perceived by some clients as triggering new risks in areas unforeseen by consultants. This research increases our knowledge of how new risk objects and de-risking solutions come into existence and why some risk management practices fail to be diffused within organizations despite the staggering success of the risk management rationality. We explain the latter through the concepts of frame diffraction and overload.
Journal: European Accounting Review
Pages: 703-728
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2016.1180254
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1180254
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Handle: RePEc:taf:euract:v:26:y:2017:i:4:p:703-728




Template-Type: ReDIF-Article 1.0
Author-Name: Louise Yi Lu
Author-X-Name-First: Louise Yi
Author-X-Name-Last: Lu
Author-Name: Greg Shailer
Author-X-Name-First: Greg
Author-X-Name-Last: Shailer
Author-Name: Yangxin Yu
Author-X-Name-First: Yangxin
Author-X-Name-Last: Yu
Title: Corporate Social Responsibility Disclosure and the Value of Cash Holdings
Abstract: 
 This study investigates whether corporate social responsibility (CSR) reports mitigate the value destruction associated with increases in cash holdings. We find that the issuance of a standalone CSR report increases the marginal value of cash holdings and this effect is more pronounced for firms in a less transparent information environment and for firms with weaker external monitoring. Our results suggest that information in CSR reports can facilitate monitoring and thus induce more efficient use of cash holdings.
Journal: European Accounting Review
Pages: 729-753
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2016.1187074
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1187074
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Handle: RePEc:taf:euract:v:26:y:2017:i:4:p:729-753




Template-Type: ReDIF-Article 1.0
Author-Name: Ning Jia
Author-X-Name-First: Ning
Author-X-Name-Last: Jia
Title: Should Directors Have Term Limits? – Evidence from Corporate Innovation
Abstract: 
 This paper examines the effect that directors with extended tenure have on corporate innovation based on a sample of US firms from 1996 to 2006. Using the propensity-score matched-pair research design, I find that firms with a higher portion of outside directors enjoying extended tenure produce significantly fewer patents and that these patents receive fewer subsequent citations. These firms also have lower research and development (R&amp;D) productivity and exploration intensity than their matched control firms, although I found no significant difference in their R&amp;D investment intensity. Difference-in-differences tests based on director deaths and regulatory changes in the early 2000s suggest that the adverse effect of long director tenure on innovation performance is causal. I also find that the effect is mitigated when long-tenured directors have more years of overlap in service with CEOs, and when long-tenured directors are executives at other firms. Finally, I find that boards with extended tenure attenuate the contributions of innovation outputs to future firm value and performance. These findings shed new light on the debate over length of board tenure and provide another justification for imposing term limits on directors.
Journal: European Accounting Review
Pages: 755-785
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2016.1199321
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1199321
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Handle: RePEc:taf:euract:v:26:y:2017:i:4:p:755-785




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Sundgren
Author-X-Name-First: Stefan
Author-X-Name-Last: Sundgren
Author-Name: Tobias Svanström
Author-X-Name-First: Tobias
Author-X-Name-Last: Svanström
Title: Is the Public Oversight of Auditors Effective? The Impact of Sanctions on Loss of Clients, Salary and Audit Reporting
Abstract: 
 This study examines the consequences of sanctions against individual Swedish auditors issued by the Supervisory Board of Public Accountants (SBPA). The results provide no support for individual auditor client loss after receiving a sanction. However, we find that Big 4 auditors have a lower salary after the sanction than before. Finally, we do not find that auditors become more conservative in their reporting after being sanctioned. Collectively, our results support that public oversight sanctions have relatively limited consequences for auditors of private companies.
Journal: European Accounting Review
Pages: 787-818
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2016.1203345
File-URL: http://hdl.handle.net/10.1080/09638180.2016.1203345
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Handle: RePEc:taf:euract:v:26:y:2017:i:4:p:787-818




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: European Accounting Review
Pages: 819-819
Issue: 4
Volume: 26
Year: 2017
Month: 10
X-DOI: 10.1080/09638180.2017.1376934
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1376934
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Template-Type: ReDIF-Article 1.0
Author-Name: Jeff P. Boone
Author-X-Name-First: Jeff P.
Author-X-Name-Last: Boone
Author-Name: Inder K. Khurana
Author-X-Name-First: Inder K.
Author-X-Name-Last: Khurana
Author-Name: K. K. Raman
Author-X-Name-First: K. K.
Author-X-Name-Last: Raman
Title: Audit Market Response to PCAOB Censures of US Big 4 Firms
Abstract: 
 Subsequent to the first-ever Public Company Accounting Oversight Board (PCAOB) censure of a US Big 4 firm (Deloitte) in December 2007, there were two other PCAOB US Big 4 firm censures as of 2016 year-end. We examine whether these two post-2007 PCAOB censures of US Big 4 firms conveyed new information to the audit market. For both censures, we find little or no evidence of any change in the factual audit quality of the censured firm over a three-year window surrounding the censure. Our findings suggest that the quality control deficiencies (identified during inspection of specific audit engagements) that triggered the PCAOB censure were isolated occurrences rather than systemic to the firm at large, i.e., the censures do not imply an impairment in the US Big 4 firm's overall factual audit quality. We also find that the negative response of investors and audit committees documented in prior research for the 2007 Deloitte censure disappeared for the later US Big 4 firm censures. Given that the PCAOB inspects (and can censure) non-US auditors who audit US-listed foreign companies, our findings are of potential interest to regulators, investors and audit committees outside the US.
Journal: European Accounting Review
Pages: 621-658
Issue: 4
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638180.2018.1504687
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1504687
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Template-Type: ReDIF-Article 1.0
Author-Name: Steven Dellaportas
Author-X-Name-First: Steven
Author-X-Name-Last: Dellaportas
Author-Name: Luckmika Perera
Author-X-Name-First: Luckmika
Author-X-Name-Last: Perera
Author-Name: Sandeep Gopalan
Author-X-Name-First: Sandeep
Author-X-Name-Last: Gopalan
Author-Name: Ben Richardson
Author-X-Name-First: Ben
Author-X-Name-Last: Richardson
Title: Implications of a Fragile Professional Identity on Role Behavior: An Exploratory Case of an Accountant Fraudster
Abstract: 
 This study explores identity-related issues ensuing from the behavioral choices of a professional accountant who was convicted for defrauding clients of money entrusted to him. It is grounded in data collected from semi-structured interviews with the offender and his companion (partner in life), supplemented with transcripts derived from court hearings. Our findings suggest that the offender was an accidental fraudster whose crime was committed because of his personal traits and because he abandoned an apparently fragile professional identity for a dominant alternative identity. This led the offender to violate professional norms and self-rationalise illegal activity as both temporary and beneficial to his client. Our data illustrate the perils of the professional accountant identity not being firmly established, maintained or regarded as dominant; it enables behavior inconsistent with the professional ‘accountant’ identity, including criminal activity. This study extends understanding of fraudulent accounting practice by illustrating the role of professional identity in preventing illegal practice in the context of a qualitative forensic case study. It highlights the centrality of professional identity formation, maintenance and reinforcement, particularly in the context of identity conflicts.
Journal: European Accounting Review
Pages: 659-679
Issue: 4
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638180.2018.1523018
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1523018
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Handle: RePEc:taf:euract:v:28:y:2019:i:4:p:659-679




Template-Type: ReDIF-Article 1.0
Author-Name: Bing Guo
Author-X-Name-First: Bing
Author-X-Name-Last: Guo
Author-Name: Evita Paraskevopoulou
Author-X-Name-First: Evita
Author-X-Name-Last: Paraskevopoulou
Author-Name: Luis Santamaría Sánchez
Author-X-Name-First: Luis
Author-X-Name-Last: Santamaría Sánchez
Title: Disentangling the Role of Management Control Systems for Product and Process Innovation in Different Contexts
Abstract: 
 This paper studies the relationship between the use of management control systems and different types of innovation (product and process), taking into account innovation contexts (high-tech versus low-tech sectors). We develop and test our hypotheses based on a large sample of Spanish manufacturing firms and find that input controls have a positive association only with process innovation in both innovation contexts. Behavior controls have similar effects on both types of innovation outcomes for high-tech firms, while they have stronger positive associations with process than with product innovation for low-tech firms. Output controls are equally relevant for product and process innovation in both contexts.
Journal: European Accounting Review
Pages: 681-712
Issue: 4
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638180.2018.1528168
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1528168
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Handle: RePEc:taf:euract:v:28:y:2019:i:4:p:681-712




Template-Type: ReDIF-Article 1.0
Author-Name: Baruch Lev
Author-X-Name-First: Baruch
Author-X-Name-Last: Lev
Title: Ending the Accounting-for-Intangibles Status Quo
Abstract: 
 The surge of corporate intangible investments is the hallmark of developed economies, radically transforming the business models, strategies, and performance of business enterprises. Accounting standard-setters, however, by and large, are oblivious to this world-wide development. I establish in this study that this accounting resistance to change seriously harms investors and the economy-at-large, and accordingly I propose feasible remedial changes to the accounting system to adapt it to economic reality. I discuss implementation issues of the proposed change, and the reasons for the three-decade resistance of accounting standard-setters to change the accounting of intangibles. Finally, in order to facilitate the accounting change, I outline a wide-ranging, policy-oriented research agenda on intangibles and related issues.
Journal: European Accounting Review
Pages: 713-736
Issue: 4
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638180.2018.1521614
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1521614
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Template-Type: ReDIF-Article 1.0
Author-Name: Claire-France Picard
Author-X-Name-First: Claire-France
Author-X-Name-Last: Picard
Author-Name: Sylvain Durocher
Author-X-Name-First: Sylvain
Author-X-Name-Last: Durocher
Author-Name: Yves Gendron
Author-X-Name-First: Yves
Author-X-Name-Last: Gendron
Title: Desingularization and Dequalification: A Foray Into Ranking Production and Utilization Processes
Abstract: 
 Although some authors highlight the benefits of journal rankings, previous research is often highly critical of them, insinuating that they can lead to desingularization of academic journals (i.e. their impoverishment and standardization) and dequalification of researchers (i.e. a weakening of researchers’ ability to evaluate academic research). However, as very few authors have empirically assessed these presumptions, we aim to address this gap in the literature. Based on Lucien Karpik’s notions of singularities, judgment devices, forms of involvement, and emulation and rivalry, we assess whether the processes surrounding the production and use of journal rankings might lead to desingularization and dequalification. Our findings support previous research by highlighting that processes where passivity and heteronomy (i.e. lack of autonomy) prevail are conducive to desingularization, rivalry and dequalification. Our findings, however, introduce some nuances into the debate by underscoring instances where emulation logic is employed instead of mere rivalry logic, and where substantial judgment devices and active involvement are mobilized in the production and use of rankings, thereby somewhat alleviating the spread of desingularization and dequalification. Ultimately, our study raises questions that point to a need for serious collective reflection within the academic community on the processes by which published research is evaluated.
Journal: European Accounting Review
Pages: 737-765
Issue: 4
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638180.2018.1535323
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1535323
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Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Saavedra
Author-X-Name-First: Daniel
Author-X-Name-Last: Saavedra
Title: Is Tax Volatility Priced by Lenders in the Syndicated Loan Market?
Abstract: 
 In this study, I consider the effects of tax risk from tax volatility on the pricing of syndicated debt. Tax volatility is an interesting feature in that managers have some discretion over the risks they take with their tax strategies, which, however, are often harder to monitor for outsiders than risks related to other business activities. Framing my predictions based on the theoretical model developed by Merton [1974], I hypothesize and find that tax volatility is incrementally informative to other priced risks suggesting that tax risks per se are relevant to lenders. Moreover, I find that the results are stronger when the loan contract does not include performance pricing provisions or other restrictions, such as capital expenditure covenants, that protect lenders. This evidence adds to knowledge about the real effects of tax risk.
Journal: European Accounting Review
Pages: 767-789
Issue: 4
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638180.2018.1520641
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1520641
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Handle: RePEc:taf:euract:v:28:y:2019:i:4:p:767-789




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Schiemann
Author-X-Name-First: Frank
Author-X-Name-Last: Schiemann
Author-Name: Alice Sakhel
Author-X-Name-First: Alice
Author-X-Name-Last: Sakhel
Title: Carbon Disclosure, Contextual Factors, and Information Asymmetry: The Case of Physical Risk Reporting
Abstract: 
 The paper focusses on the reporting of climate change-related physical risks. Drawing on data from the CDP questionnaire for 717 European companies over three years (2011–2013) we find that information asymmetry is generally smaller when firms report about their physical risks. Furthermore, we find that reporting of a higher exposure to physical risks is associated with lower information asymmetry for firms falling under the regulation of the EU Emissions Trading Scheme, whereas for other firms the direction of the relationship reverses. We can rule out that our results are driven by other climate change-related risk disclosures and by disclosures about opportunities arising from climate change. This study is not only relevant because it attests the materiality of climate change-related physical risks. Moreover, we show how a contextual factor – in this study: whether a company falls under climate change-related regulation – moderates the direction of the relationship between reported information and information asymmetry.
Journal: European Accounting Review
Pages: 791-818
Issue: 4
Volume: 28
Year: 2019
Month: 8
X-DOI: 10.1080/09638180.2018.1534600
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1534600
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Handle: RePEc:taf:euract:v:28:y:2019:i:4:p:791-818




Template-Type: ReDIF-Article 1.0
Author-Name: Joerg-Markus Hitz
Author-X-Name-First: Joerg-Markus
Author-X-Name-Last: Hitz
Author-Name: Nico Lehmann
Author-X-Name-First: Nico
Author-X-Name-Last: Lehmann
Title: Empirical Evidence on the Role of Proxy Advisors in European Capital Markets
Abstract: 
 Responding to regulators’ requests and filling a void in the academic literature, this paper provides comprehensive empirical evidence on the role of proxy advisors in 14 European countries. Exploiting coverage data and using content analysis of proxy voting reports by Institutional Shareholder Services and Glass Lewis, we provide descriptive analyses of proxy advisors’ firm coverage, the variation and determinants of voting recommendations, the relation between voting recommendations and shareholder voting at annual general meetings, and market reactions to the release of voting recommendations. Overall, our findings suggest an economically important role of proxy advisors in European markets. Throughout our analyses, we document that this role varies with governance- and ownership-related firm characteristics and with country-level measures of institutional strength.
Journal: European Accounting Review
Pages: 713-745
Issue: 4
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638180.2017.1305282
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1305282
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Template-Type: ReDIF-Article 1.0
Author-Name: Mara Cameran
Author-X-Name-First: Mara
Author-X-Name-Last: Cameran
Author-Name: Angelo Ditillo
Author-X-Name-First: Angelo
Author-X-Name-Last: Ditillo
Author-Name: Angela Pettinicchio
Author-X-Name-First: Angela
Author-X-Name-Last: Pettinicchio
Title: Audit Team Attributes Matter: How Diversity Affects Audit Quality
Abstract: 
 How audit teams are structured and function plays a crucial role in determining the level of audit service quality. Despite this claim, little empirical research has been conducted on this effect. Using private data from two of the Big 4 audit firms, we fill this gap and document how diversity of audit teams influences audit quality. By combining the existing work in psychology and sociology with that in auditing, we develop our model by arguing that teams are composed not simply of single auditors but of sub-teams of individuals whose various combinations affect team performance. Starting from this premise, we study how the diversity of audit teams in terms of the different mix of work assigned to staff, seniors, managers, and partners influences audit quality and how this effect varies depending upon years of tenure. We also show that the proportion of leading auditors characterized by a common educational background and the percentage of female leading auditors affect audit quality. As an additional analysis, we examine how team diversity affects audit efficiency. The same elements found relevant for audit quality also affect audit efficiency.
Journal: European Accounting Review
Pages: 595-621
Issue: 4
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638180.2017.1307131
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1307131
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Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Evans
Author-X-Name-First: Lisa
Author-X-Name-Last: Evans
Title: Shifting Strategies: the Pursuit of Closure and the ‘Association of German Auditors’
Abstract: 
 Drawing on Weber’s [(1972). Wirtschaft und Gesellschaft: Grundriss der verstehenden Soziologie [Economy and society. An outline of interpretive sociology]. (5th ed.). Tübingen: Mohr Siebeck] theories of social stratification and closure, and on Parkin’s [(1979). Marxism and class theory. London: Tavistock] development thereof, this paper contributes a case study of Germany to the literature on closure processes (rather than outcomes), and outcomes falling short of professionalization. It explores the early history of the first German association of auditors, the Verband Deutscher Bücherrevisoren (VDB), founded in 1896. The paper traces how closure was pursued, at various times, by different means and to different degrees, depending on the changing social, economic and political contexts and on changing perception of what would best serve the association’s interest. By thus focusing on the shifting aims and strategies of the VDB, the paper contributes new insights into the dynamics within professions and between professions and their environments, and the dynamics and conditions underlying failed professionalization projects. The paper shows that, while the VDB had a degree of success in creating many of the structure and processes of a modern professional body, its ambition to achieve market and professional closure was not fulfilled.
Journal: European Accounting Review
Pages: 683-712
Issue: 4
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638180.2017.1329658
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1329658
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Handle: RePEc:taf:euract:v:27:y:2018:i:4:p:683-712




Template-Type: ReDIF-Article 1.0
Author-Name: Ronny Prabowo
Author-X-Name-First: Ronny
Author-X-Name-Last: Prabowo
Author-Name: Reggy Hooghiemstra
Author-X-Name-First: Reggy
Author-X-Name-Last: Hooghiemstra
Author-Name: Paula Van Veen-Dirks
Author-X-Name-First: Paula
Author-X-Name-Last: Van Veen-Dirks
Title: State Ownership, Socio-political Factors, and Labor Cost Stickiness
Abstract: 
 This article examines the effect of state ownership on the labor cost stickiness of firms in 22 European countries. States are more likely to interfere in the decision-making processes of state-owned enterprises (SOEs) and demand firm activities that are desirable from a socio-political perspective. For example, to win political support, politicians may instruct SOEs to avoid layoffs to minimize unemployment rates. The varied objectives of SOEs also make it more difficult to control managers' behavior, leaving more room for managerial discretion and the pursuit of self-interests through empire-building behavior. Both state intervention and managerial self-interest restrain managers from laying off employees or reducing employee wages when sales decrease, which may lead to greater labor cost stickiness. Data from 1993 to 2012 reveal that SOEs exhibit greater labor cost stickiness than private firms, and their labor cost stickiness also varies predictably with socio-political variables such as election years and left-wing governments.
Journal: European Accounting Review
Pages: 771-796
Issue: 4
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638180.2017.1329659
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1329659
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Handle: RePEc:taf:euract:v:27:y:2018:i:4:p:771-796




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Eichfelder
Author-X-Name-First: Sebastian
Author-X-Name-Last: Eichfelder
Author-Name: Frank Hechtner
Author-X-Name-First: Frank
Author-X-Name-Last: Hechtner
Author-Name: Jochen Hundsdoerfer
Author-X-Name-First: Jochen
Author-X-Name-Last: Hundsdoerfer
Title: Formula Apportionment: Factor Allocation and Tax Avoidance
Abstract: 
 This paper addresses the question of how firms react to tax incentives in a formula apportionment (FA) tax regime. Under FA, the profits of all consolidated entities of a business group are summed and then allocated according to a formula based on FA factors. We hypothesize that firms may change the allocation of real production factors and/or manipulate the FA factor through tax avoidance strategies. Analyzing FA tax effects of the German local business tax with payroll expense as the exclusive FA factor, we find empirical evidence consistent with both hypotheses. Regarding the allocation of production factors, we observe significant tax effects on labor input at the intensive margin but not on labor input at the extensive margin. In addition, we find evidence of an indirect FA spillover effect on capital investment. Our findings on tax avoidance proxies are consistent with tax-induced manipulations of payroll expense as an FA factor to save tax payments.
Journal: European Accounting Review
Pages: 649-681
Issue: 4
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638180.2017.1364165
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1364165
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Handle: RePEc:taf:euract:v:27:y:2018:i:4:p:649-681




Template-Type: ReDIF-Article 1.0
Author-Name: Tiphaine Compernolle
Author-X-Name-First: Tiphaine
Author-X-Name-Last: Compernolle
Author-Name: Chrystelle Richard
Author-X-Name-First: Chrystelle
Author-X-Name-Last: Richard
Title: The Audit Committee as an Interactive Process: Insights on the AC Chairperson’s Power
Abstract: 
 The audit committee (AC) chairperson is considered a key actor in the AC process, yet little is known about the role of AC chairpersons and how they exert power in a constraining institutional environment. Considering the AC as an inhabited institution – an institution actively inhabited by agentic and creative actors, this paper provides insights into the dynamics of the AC process with respect to the contribution, power and influence of the AC chairperson. The analysis draws on 53 interviews with experienced AC members, chief financial officers and auditors of 23 publicly listed companies. The results show that AC chairpersons are neither totally constrained by the institutional environment nor fully strategic actors, but carve out individual corridors of action and exert power within the AC process. In particular, our findings bring out three styles of leadership: managing ongoing trust relationships to act as marginal-secant able to play with the various local ecologies of knowledge and power, using in-depth knowledge of the institutional rules to manage them purposefully, serving as an expert in a timely and targeted manner. The analysis points to the ways AC chairpersons inhabit their role, deal with institutional scripts and give meaning to their oversight duties.
Journal: European Accounting Review
Pages: 623-647
Issue: 4
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638180.2017.1367315
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1367315
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Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Hoozée
Author-X-Name-First: Sophie
Author-X-Name-Last: Hoozée
Author-Name: Quang-Huy Ngo
Author-X-Name-First: Quang-Huy
Author-X-Name-Last: Ngo
Title: The Impact of Managers’ Participation in Costing System Design on Their Perceived Contributions to Process Improvement
Abstract: 
 The aim of this paper is to investigate the impact of managers’ participation in costing system design on their perceived contributions to process improvement. Drawing on the literature on business process management, participative decision-making and self-determination theory, we propose that participation in costing system design fosters managers’ perceived contributions to process improvement through their autonomous motivation for cost management and their perceived usefulness of cost information. Questionnaire data obtained from 170 Belgian managers were used to test the proposed model. The results suggest that participation in costing system design increases managers’ autonomous motivation for cost management and enhances their perceived usefulness of cost information. Managers’ perceived usefulness of cost information is, in turn, positively associated with their perceived contributions to process improvement. The effect of managers’ autonomous motivation for cost management on their perceived contributions to process improvement is, however, not significant. Taken together, our findings imply that contributions to process improvement mainly emerge through informational mechanisms rather than motivational mechanisms triggered by the participation process.
Journal: European Accounting Review
Pages: 747-770
Issue: 4
Volume: 27
Year: 2018
Month: 8
X-DOI: 10.1080/09638180.2017.1375417
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1375417
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Template-Type: ReDIF-Article 1.0
Author-Name: Romain Boulland
Author-X-Name-First: Romain
Author-X-Name-Last: Boulland
Author-Name: Gerald J. Lobo
Author-X-Name-First: Gerald J.
Author-X-Name-Last: Lobo
Author-Name: Luc Paugam
Author-X-Name-First: Luc
Author-X-Name-Last: Paugam
Title: Do Investors Pay Sufficient Attention to Banks’ Unrealized Gains and Losses on Available-for-sale Securities?
Abstract: 
 Unrealized gains and losses on available-for-sale securities (AFSGL) are included in Other Comprehensive Income (OCI) and directly affect shareholders’ equity but are not included in earnings. We investigate whether unrealized AFSGL help predict future earnings and whether analysts and investors incorporate the information conveyed by unrealized AFSGL in a timely manner. We conduct our investigation on a sample of banks because unrealized AFSGL are material in the banking industry. First, we show that unrealized AFSGL are material and help in predicting next period realized AFSGL and future earnings change. Second, we document that financial analysts are slow to react to unrealized AFSGL and update their forecasts after AFSGL are realized in earnings. Third, we find that investors are also slow to react to unrealized AFSGL and do so only after AFSGL are included (realized) in earnings and after financial analysts update their forecasts. We document an annual difference of 5% in future abnormal returns between banks in the top and bottom quintiles of past unrealized AFSGL. A zero-cost trading strategy that relies on public information about unrealized AFSGL generates a sizeable monthly alpha that ranges between 1.8% and 1.9%.
Journal: European Accounting Review
Pages: 819-848
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2018.1562950
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1562950
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Template-Type: ReDIF-Article 1.0
Author-Name: Ariela Caglio
Author-X-Name-First: Ariela
Author-X-Name-Last: Caglio
Author-Name: Mara Cameran
Author-X-Name-First: Mara
Author-X-Name-Last: Cameran
Author-Name: Jane Klobas
Author-X-Name-First: Jane
Author-X-Name-Last: Klobas
Title: What is an Accountant? An Investigation of Images
Abstract: 
 The purpose of our paper is to identify different images of accountants held by different groups of people and to understand how the different images come about. In doing so, we focus on how accountants are perceived by others as well as how they perceive themselves. Through analysis of 1,794 usable questionnaire responses by university students, newly appointed accountants, and practicing accountants, we find an image close to the beancounter stereotype, and that of a modern professional, with the highest score for success but also for honesty. We also uncover a third image including nuances that are neither favorable nor unfavorable (the plain vanilla accountant), which suggests that the extremes found in cultural representations do not always reflect the real world. In addition, we find that the greater the distance from the profession, the less attractive the image of accountants is and that different sources of influence affect perceptions of accountants. In particular, the public perception of an accountant is less favorable when constructed from media sources. Finally, we add to the existing literature by showing that the self-image of accountants may change over time as experienced practitioners, compared to new hires, exhibit a sort of disillusionment about their professionalism.
Journal: European Accounting Review
Pages: 849-871
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2018.1550000
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1550000
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Template-Type: ReDIF-Article 1.0
Author-Name: Hui Dong
Author-X-Name-First: Hui
Author-X-Name-Last: Dong
Author-Name: Huai Zhang
Author-X-Name-First: Huai
Author-X-Name-Last: Zhang
Title: Litigation Risk and Corporate Voluntary Disclosure: Evidence from Two Quasi-Natural Experiments
Abstract: 
 We examine the effect of litigation risk on corporate voluntary disclosure using two quasi-natural experiments, which have substantial and opposing impacts on the litigation risk of firms headquartered in the Ninth Circuit. We find that firms in the Ninth Circuit decrease (increase) the quantity and quality of their voluntary disclosure, relative to control firms, when their litigation risk is lowered (elevated). The pre-treatment test shows an indistinguishable trend between treatment and control firms. A battery of robustness checks indicates that our results are not driven by alternative explanations. We hypothesize and find that the impact of litigation risk is more pronounced when firms have bad news and that firms are more likely to preempt bad news through voluntary disclosures when litigation risk is elevated. Overall, results from both experiments suggest that litigation risk causally increases corporate voluntary disclosure.
Journal: European Accounting Review
Pages: 873-900
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2018.1559071
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1559071
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Handle: RePEc:taf:euract:v:28:y:2019:i:5:p:873-900




Template-Type: ReDIF-Article 1.0
Author-Name: Berend van der Kolk
Author-X-Name-First: Berend
Author-X-Name-Last: van der Kolk
Author-Name: Paula M.G. van Veen-Dirks
Author-X-Name-First: Paula M.G.
Author-X-Name-Last: van Veen-Dirks
Author-Name: Henk J. ter Bogt
Author-X-Name-First: Henk J.
Author-X-Name-Last: ter Bogt
Title: The Impact of Management Control on Employee Motivation and Performance in the Public Sector
Abstract: 
 This study examines the relations among various types of management control, intrinsic and extrinsic motivation, and performance in the public sector. We draw on motivation crowding theory and self-determination theory to argue that four different types of management control (i.e. personnel, cultural, action, and results control) are likely to have an influence on intrinsic motivation and/or extrinsic motivation. We test a structural equation model using survey data from 105 similar departments in the public sector. Our findings indicate that the use of personnel and cultural controls is positively associated with employees’ intrinsic motivation, and that the use of results controls is positively associated with employees’ extrinsic motivation. Moreover, both intrinsic motivation and extrinsic motivation are positively associated with performance. Taken together, these findings support the idea advocated by New Public Management proponents that results control can enhance employee motivation and performance in the public sector. However, the findings also highlight an essential nuance; in addition to results control, personnel and cultural controls are also important, as they enhance intrinsic motivation and performance. This implies that a sole focus on results control is too narrow and can lead to suboptimal levels of employee motivation and performance in the public sector.
Journal: European Accounting Review
Pages: 901-928
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2018.1553728
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1553728
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Template-Type: ReDIF-Article 1.0
Author-Name: Silke Rünger
Author-X-Name-First: Silke
Author-X-Name-Last: Rünger
Title: The Effect of Cross-Border Group Taxation on Ownership Chains
Abstract: 
 This study investigates the influence of taxation on ownership chains and specifically on the location decision for intermediate holding companies. By examining the effect of the introduction of a cross-border group taxation regime in Austria in 2005 on ownership chains of European multinational firms, I find evidence that foreign parent companies already invested in Austria restructured their ownership chains in order to meet the requirements of the group taxation regime. This effect is larger for foreign parent companies with loss-generating subsidiaries. Collectively, the empirical findings suggest that, when evaluating the effect of cross-border group taxation regimes, companies follow a detailed tax planning strategy that takes tax-base effects into account.
Journal: European Accounting Review
Pages: 929-946
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2018.1564689
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1564689
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Template-Type: ReDIF-Article 1.0
Author-Name: Nigar Sultana
Author-X-Name-First: Nigar
Author-X-Name-Last: Sultana
Author-Name: Harjinder Singh
Author-X-Name-First: Harjinder
Author-X-Name-Last: Singh
Author-Name: Asheq Rahman
Author-X-Name-First: Asheq
Author-X-Name-Last: Rahman
Title: Experience of Audit Committee Members and Audit Quality
Abstract: 
 We investigate whether the experience of audit committee members is associated with audit quality. In order to comprehensively analyse the experience of audit committee members, we include audit committee member tenure, age and multiple-directorships in our analysis. Using observations from 2001 to 2012, we undertake analysis on 13,155 firm-year observations and find that all our proxies of audit committee member experience are positively associated with audit fees. A range of additional tests, including using discretionary accruals as an alternative measure of audit quality and differences-in-differences analysis, support our main findings and our results consequently make a number of contributions to both the literature and policy making. One possible policy contribution is that regulators may wish to consider audit committee characteristics representing experience when framing recommendations to improve audit quality and thereby, financial reporting by firms.
Journal: European Accounting Review
Pages: 947-975
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2019.1569543
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1569543
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Template-Type: ReDIF-Article 1.0
Author-Name: Matthäus Tekathen
Author-X-Name-First: Matthäus
Author-X-Name-Last: Tekathen
Title: Unpacking the Fluidity of Management Accounting Concepts: An Ethnographic Social Site Analysis of Enterprise Risk Management
Abstract: 
 This study offers new insights into what renders management accounting concepts (MACs) fluid. Extant literature depicts how fluidity is an effect of heterogeneous associations among actors, which translate and mobilize them in situated and variegated forms. This focus on heterogeneous arrangements, however, tends to neglect the role of practices and how these practices render MACs fluid. Hence, the study investigates how practices, together with arrangements, which Schatzki (2002. The site of the social: A philosophical account of the constitution of social life and change. University Park, PA: Pennsylvania State University Press) refers to as ‘site’ (i.e. a mesh-work of practice-arrangement bundles), are implicated in MACs’ fluidity. To do so, an ethnography of the MAC ‘Enterprise Risk Management’ (ERM) at the largest division of a multi-national manufacturer was conducted. By analyzing attended risk meetings, the paper shows the ways in which the ERM site prefigures multitudinous paths for carrying on and carrying out risk management activities, which in turn, render the ERM site into a fluid space of intelligibility. These findings indicate that MACs’ fluidity is associated with multidimensional prefigurements that the site produces. With these insights, the paper contributes to understanding how the situated functionality of management accounting comes about, and reveals nuances and multiplicities amid the enabling and constraining space for actions that practiced MACs as mesh-work engender.
Journal: European Accounting Review
Pages: 977-1010
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2019.1575759
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1575759
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Template-Type: ReDIF-Article 1.0
Author-Name: Kazunori Miwa
Author-X-Name-First: Kazunori
Author-X-Name-Last: Miwa
Title: Welfare Effects of Endogenous Information Acquisition and Disclosure in Duopoly Markets
Abstract: 
 This paper investigates the interaction between firms' information acquisition decisions and disclosure of internally acquired information in a Cournot duopoly market under demand uncertainty. The main results are as follows. When the correlation between firms' demands is positive and sufficiently high, disclosure of information on demand uncertainty can enhance social welfare, given that the quality of firms' private information is constant. However, in the setting where firms' private information is endogenously determined, mandatory disclosure is not always desirable. This is because, when disclosure is mandated, firms acquire less precise information compared with the case where the acquired information is not disclosed; hence, their internal information environments are deteriorated. This can lead to unintended consequences such that disclosure regulation decreases social welfare.
Journal: European Accounting Review
Pages: 1011-1026
Issue: 5
Volume: 28
Year: 2019
Month: 10
X-DOI: 10.1080/09638180.2019.1615969
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1615969
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Template-Type: ReDIF-Article 1.0
Author-Name: Ionela Andreicovici
Author-X-Name-First: Ionela
Author-X-Name-Last: Andreicovici
Author-Name: Anne Jeny
Author-X-Name-First: Anne
Author-X-Name-Last: Jeny
Author-Name: Daphne Lui
Author-X-Name-First: Daphne
Author-X-Name-Last: Lui
Title: Disclosure Transparency and Disagreement Among Economic Agents: The Case of Goodwill Impairment
Abstract: 
 We examine whether more transparent disclosure about goodwill impairment tests conveys useful information to sell-side analysts about the parameters used in the complex and often opaque impairment testing process. Drawing on a sample of European companies from 2006 to 2014, we construct a unique dataset on the transparency of goodwill impairment disclosure and develop two analyst disagreement measures by extracting analysts’ opinions about firms’ impairment decisions in brokers’ reports. We show that the level of disclosure transparency is negatively associated with both disagreement among analysts, a proxy for information uncertainty, and disagreement between analysts and managers, a proxy for information asymmetry. Further, we find that discount-rate-related disclosure transparency is associated with both types of analyst disagreement, while cash-flow-related disclosure transparency is associated with disagreement between analysts and managers only. Our paper speaks to the usefulness of goodwill impairment test disclosures to analysts, while also highlighting that opportunistic and boilerplate disclosure by some firms hampers the ability to resolve information asymmetry and information uncertainty.
Journal: European Accounting Review
Pages: 1-26
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2019.1677259
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1677259
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Template-Type: ReDIF-Article 1.0
Author-Name: Vasiliki Athanasakou
Author-X-Name-First: Vasiliki
Author-X-Name-Last: Athanasakou
Author-Name: Florian Eugster
Author-X-Name-First: Florian
Author-X-Name-Last: Eugster
Author-Name: Thomas Schleicher
Author-X-Name-First: Thomas
Author-X-Name-Last: Schleicher
Author-Name: Martin Walker
Author-X-Name-First: Martin
Author-X-Name-Last: Walker
Title: Annual Report Narratives and the Cost of Equity Capital: U.K. Evidence of a U-shaped Relation
Abstract: 
 We hypothesize and test for a U-shaped relation between the cost of equity capital and the level of disclosure in annual report narratives. Using a computer-generated word-count-based index of the level of disclosure in U.K. annual report narratives, we document a negative relation with the cost of equity capital at low levels of disclosure, and a positive relation at higher levels of disclosure, together implying the presence of an optimal level of disclosure. We interpret the positive relation at higher levels of disclosure as evidence of uninformative clutter increasing the cost of equity capital. Additional analyses indicate the presence of both firm-level learning and regulatory corporate reporting initiatives as factors shaping adjustments towards optimum levels of disclosure.
Journal: European Accounting Review
Pages: 27-54
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2019.1707102
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1707102
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Template-Type: ReDIF-Article 1.0
Author-Name: Ariela Caglio
Author-X-Name-First: Ariela
Author-X-Name-Last: Caglio
Author-Name: Gaia Melloni
Author-X-Name-First: Gaia
Author-X-Name-Last: Melloni
Author-Name: Paolo Perego
Author-X-Name-First: Paolo
Author-X-Name-Last: Perego
Title: Informational Content and Assurance of Textual Disclosures: Evidence on Integrated Reporting
Abstract: 
 This paper examines the economic benefits associated with textual attributes and the external assurance of integrated reporting (IR), an innovative form of corporate disclosure that connects financial and environmental, social and governance (ESG) information in a single report. We investigate the setting of South Africa, where IR has been mandatory since 2010 for listed companies. We find that IR readability is associated with a higher market valuation, conciseness with higher stock liquidity and tone bias with less dispersed analysts’ estimates. Results suggest that market participants appreciate IRs that are readable, short and focused, as well as hint at tone management strategies targeting analysts. We also show that assurance on IR moderates the negative effects of poor textual attributes: if firms publish IRs that are difficult to read but assure them, this compensates for the negative influence of reading difficulty on a market value; if long IRs are assured, this dampens the negative effect of verbosity on liquidity; if firms assure IRs, analysts’ forecast dispersion is lower, therefore suggesting that assurance acts as a credibility-enhancing mechanism for external users. Finally, we show that textual attributes and assurance matter for broader audiences interested in the ESG dimensions of a firm’s performance.
Journal: European Accounting Review
Pages: 55-83
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2019.1677486
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1677486
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Template-Type: ReDIF-Article 1.0
Author-Name: James N. Cannon
Author-X-Name-First: James N.
Author-X-Name-Last: Cannon
Author-Name: Zhejia Ling
Author-X-Name-First: Zhejia
Author-X-Name-Last: Ling
Author-Name: Qian Wang
Author-X-Name-First: Qian
Author-X-Name-Last: Wang
Author-Name: Olena V. Watanabe
Author-X-Name-First: Olena V.
Author-X-Name-Last: Watanabe
Title: 10-K Disclosure of Corporate Social Responsibility and Firms’ Competitive Advantages
Abstract: 
 In this paper, we offer evidence that disclosure of corporate social responsibility (CSR) in the 10-K provides information about firms’ competitive advantages. We create a textual measure of CSR disclosure that aggregates CSR keywords found in 10-Ks. We measure firms’ competitive advantages by using levels of and persistence of industry-adjusted gross margin; selling, general, and administrative (SG&A) margin; and operating margin. We first show that 10-K CSR disclosure intensity is associated with lower levels of gross margin but higher SG&A margin. We then observe that firms with more CSR keywords in their 10-Ks maintain more persistent above-industry-median gross and operating margins. Upon sorting our full set of 10-K CSR keywords into three subcategories (philanthropy, business practice, and product), we find that the intensities of disclosure in these CSR subcategories have associations with varying competitive advantages.
Journal: European Accounting Review
Pages: 85-113
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2019.1670223
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1670223
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Handle: RePEc:taf:euract:v:29:y:2020:i:1:p:85-113




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Firk
Author-X-Name-First: Sebastian
Author-X-Name-Last: Firk
Author-Name: Jan C. Hennig
Author-X-Name-First: Jan C.
Author-X-Name-Last: Hennig
Author-Name: Michael Wolff
Author-X-Name-First: Michael
Author-X-Name-Last: Wolff
Title: Can the Balanced Scorecard Help in Designing Conference Calls? The Effect of Balanced Information Composition on the Cost of Capital
Abstract: 
 Most recent studies on conference calls focus on the costs for firms that can arise from the calls’ open nature. We study the benefits of conference calls and hypothesize that firms could use the balanced scorecard concept as a framework for presenting the information (i.e. balanced information composition) in conference calls to lower the cost of capital. Our results show a negative association between a more balanced information composition in conference calls and a firm’s cost of capital. Additional tests substantiate that the effect of such a balanced information composition on the cost of capital is driven by a reduction in information asymmetry. Overall, the findings suggest that firms can benefit from the balanced scorecard concept by using it as a framework for preparing their conference calls.
Journal: European Accounting Review
Pages: 115-146
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2019.1709523
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1709523
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Handle: RePEc:taf:euract:v:29:y:2020:i:1:p:115-146




Template-Type: ReDIF-Article 1.0
Author-Name: Mostafa Monzur Hasan
Author-X-Name-First: Mostafa Monzur
Author-X-Name-Last: Hasan
Title: Readability of Narrative Disclosures in 10-K Reports: Does Managerial Ability Matter?
Abstract: 
 This study examines the association between managerial ability and the readability of narrative disclosures in 10-K reports. Using a large US sample from 1994 to 2015, we find that managerial ability is significantly positively associated with the readability of narrative disclosures in 10-K reports. We also find that this association is more pronounced for firms with high levels of profitability. In addition, firms’ financial performance mediates the association between managerial ability and the readability of 10-K reports. Further analysis shows that the association was more pronounced before the implementation of the plain English disclosure rules. These results are robust to alternative specifications of managerial ability, 10-K report readability, and the endogeneity concern. Overall, findings from this study suggest that managerial ability matters for improving the readability of corporate disclosures.
Journal: European Accounting Review
Pages: 147-168
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2018.1528169
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1528169
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Template-Type: ReDIF-Article 1.0
Author-Name: Elaine Henry
Author-X-Name-First: Elaine
Author-X-Name-Last: Henry
Author-Name: Nan Hu
Author-X-Name-First: Nan
Author-X-Name-Last: Hu
Author-Name: Xi Jiang
Author-X-Name-First: Xi
Author-X-Name-Last: Jiang
Title: Relative Emphasis on Non-GAAP Earnings in Conference Calls: Determinants and Market Reaction
Abstract: 
 We use textual analysis to examine whether non-GAAP earnings receive greater emphasis than GAAP earnings in the conference calls that accompany earnings announcements. We measure relative emphasis, i.e. prominence, based on the first appearance or frequency of GAAP and non-GAAP earnings per share (EPS) dollar amounts in the transcripts of conference calls. To complement our analysis of relative emphasis on non-GAAP earnings, we measure general non-GAAP content using frequency counts of keywords. We find that firms place greater relative emphasis on non-GAAP earnings and include more general non-GAAP content when the non-GAAP results exceed the GAAP results, when the non-GAAP results achieve a benchmark that the GAAP results missed, and when the firm’s GAAP earnings are less value-relevant. We find somewhat weak evidence that impression-management motivation is the dominant explanation for greater relative emphasis on non-GAAP earnings but not for general non-GAAP content. Overall, the construct and measurement of relative emphasis on non-GAAP earnings and general non-GAAP content differ, but results indicate they are complements in explaining the market response to earnings conference calls.
Journal: European Accounting Review
Pages: 169-197
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2019.1664312
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1664312
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: European Accounting Review 2020 Annual Conference
Journal: European Accounting Review
Pages: 199-199
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2020.1718404
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1718404
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Handle: RePEc:taf:euract:v:29:y:2020:i:1:p:199-199




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: List of Reviewers
Journal: European Accounting Review
Pages: e1-e12
Issue: 1
Volume: 29
Year: 2020
Month: 1
X-DOI: 10.1080/09638180.2020.1718406
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1718406
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Handle: RePEc:taf:euract:v:29:y:2020:i:1:p:e1-e12




Template-Type: ReDIF-Article 1.0
Author-Name: Loïc Belze
Author-X-Name-First: Loïc
Author-X-Name-Last: Belze
Author-Name: François Larmande
Author-X-Name-First: François
Author-X-Name-Last: Larmande
Author-Name: Lorenz Schneider
Author-X-Name-First: Lorenz
Author-X-Name-Last: Schneider
Title: Transaction Costs, Option Prices, and Model Risk in Fair Value Accounting
Abstract: 
 This paper examines the reliability of option fair value estimates in the presence of transaction costs. The Black Scholes Merton (BSM) framework assumes zero transaction costs and thus might not provide a reasonable approximation in this context. We investigate the model adjustments companies make to their BSM models to deal with these transaction costs. We specifically examine Employee Stock Option (ESO) plans listed on the French stock exchange, as detailed disclosure on modeling is available for these ESOs. Our analysis questions the reliability of these model adjustments, especially their bias and the extent to which they provide a faithful representation of option fair values. Holding parameter values constant, we find that the model adjustments lead to a median understatement of 52% compared to the BSM model price, higher than the discount we observe for the opportunistic determination of model parameters (below 20%). The paper contributes to the fair value literature by highlighting model risk in the fair valuation of options. This model risk stems from assumptions made about the size of transaction costs and complements the notion of parameter risk analyzed in previous literature. As a result, the model itself might be a possible channel for fair value management.
Journal: European Accounting Review
Pages: 201-232
Issue: 2
Volume: 29
Year: 2020
Month: 3
X-DOI: 10.1080/09638180.2019.1627891
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1627891
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Handle: RePEc:taf:euract:v:29:y:2020:i:2:p:201-232




Template-Type: ReDIF-Article 1.0
Author-Name: David Castillo-Merino
Author-X-Name-First: David
Author-X-Name-Last: Castillo-Merino
Author-Name: Josep Garcia-Blandon
Author-X-Name-First: Josep
Author-X-Name-Last: Garcia-Blandon
Author-Name: Monica Martinez-Blasco
Author-X-Name-First: Monica
Author-X-Name-Last: Martinez-Blasco
Title: Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
Abstract: 
 European Union adopted the Regulation (EU) No 537/2014, which in practice prohibits the joint provision of audit and most types of non-audit services (NAS). Regulators presume that NAS fees weaken auditor independence and, as a result, impair audit quality. As the evidence at the European level does not support this view, the question of whether the new regulation will enhance auditor independence remains open. We examine the association between future NAS fees and audit quality by distinguishing among tax, audit-related and other services. We base the analysis on a sample of Spanish listed companies for the period between 2005 and 2016, finding a consistent negative association between future other NAS fees and audit quality. This suggests that the expectation of future purchases of this type of NAS may impair auditor independence. Conversely, for tax and audit-related services results are not significant. Taken together, results suggest that European regulators should seek for further evidence before banning NAS, as some of them may in fact enhance audit quality.
Journal: European Accounting Review
Pages: 233-262
Issue: 2
Volume: 29
Year: 2020
Month: 3
X-DOI: 10.1080/09638180.2019.1577151
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1577151
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Handle: RePEc:taf:euract:v:29:y:2020:i:2:p:233-262




Template-Type: ReDIF-Article 1.0
Author-Name: Shimin Chen
Author-X-Name-First: Shimin
Author-X-Name-Last: Chen
Author-Name: Bingbing Hu
Author-X-Name-First: Bingbing
Author-X-Name-Last: Hu
Author-Name: Donghui Wu
Author-X-Name-First: Donghui
Author-X-Name-Last: Wu
Author-Name: Ziye Zhao
Author-X-Name-First: Ziye
Author-X-Name-Last: Zhao
Title: When Auditors Say ‘No,’ Does the Market Listen?
Abstract: 
 Previous research on whether the market responds to auditors’ opinions has provided mixed results. We revisit this issue in China, where individual investors who are more likely to neglect value-relevant information dominate the stock market. In addition to going concern opinions (GCOs), China permits modified audit opinions (MAOs) on violations of accounting standards or disclosure rules (GAAP/DISC MAOs), providing an opportunity not available in the literature to enrich the study of audit-opinion pricing. We find that, ceteris paribus, MAO recipients underperform in the future and have a higher incidence of adverse outcomes such as misreporting and stock delisting, and the market reacts negatively to MAOs during the short window around MAO disclosure. Importantly, MAO disclosure is not followed by negative long-term stock returns, suggesting stock price adjustments to MAOs are speedy and unbiased. These findings hold for both GCOs and GAAP/DISC MAOs. Together, our findings support the informativeness of audit opinions and cast doubt on the argument that investors inefficiently price audit opinions due to information-processing bias.
Journal: European Accounting Review
Pages: 263-305
Issue: 2
Volume: 29
Year: 2020
Month: 3
X-DOI: 10.1080/09638180.2019.1597746
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1597746
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Handle: RePEc:taf:euract:v:29:y:2020:i:2:p:263-305




Template-Type: ReDIF-Article 1.0
Author-Name: Igor Filatotchev
Author-X-Name-First: Igor
Author-X-Name-Last: Filatotchev
Author-Name: Jonathan Jona
Author-X-Name-First: Jonathan
Author-X-Name-Last: Jona
Author-Name: Gilad Livne
Author-X-Name-First: Gilad
Author-X-Name-Last: Livne
Title: Earnings Management in Domestic and Foreign IPOs in the United States: Do Home Country Institutions Matter?
Abstract: 
 Using a large sample of domestic and foreign IPOs in the US, we investigate how threats of enforcement by the Securities and Exchange Commission (SEC) and private litigation influence earnings management in IPO prospectuses. We propose that perceptions of foreign institutions may influence SEC enforcement action and private litigation. We provide evidence that enforcement and litigation threats are negatively related to the strength of legal institutions in the foreign IPO’s country of origin. We find earnings management is more pronounced in foreign IPOs from countries with strong legal institutions. We further explore whether earnings management is priced in the IPO market and find no relation between IPO proceeds and earnings management. Our results are consistent with upward earnings management as in Stein (1989), the magnitude of which is reduced when the anticipated cost of enforcement and litigation is higher. Collectively, our results cast doubt on the validity of the bonding hypothesis.
Journal: European Accounting Review
Pages: 307-335
Issue: 2
Volume: 29
Year: 2020
Month: 3
X-DOI: 10.1080/09638180.2019.1620113
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1620113
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Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Jordan
Author-X-Name-First: Silvia
Author-X-Name-Last: Jordan
Author-Name: Martin Messner
Author-X-Name-First: Martin
Author-X-Name-Last: Messner
Title: The Use of Forecast Accuracy Indicators to Improve Planning Quality: Insights from a Case Study
Abstract: 
 Accounting studies have analyzed rolling forecasts and similar dynamic approaches to planning as a way to improve the quality of planning. We complement this research by investigating an alternative (complementary) way to improve planning quality, i.e. the use of forecast accuracy indicators as a results control mechanism. Our study particularly explores the practical challenges that might emerge when firms use a performance measure for forecast accuracy. We examine such challenges by means of an in-depth case study of a manufacturing firm that started to monitor sales forecast accuracy. Drawing from interviews, meeting observations and written documentation, we highlight two possible concerns with the use of forecast accuracy: concerns related to the limited degree of controllability of the performance measure and concerns with its goal congruence. We illustrate how organizational actors experienced these challenges and how they adapted their approach to forecast accuracy in response to them. Our empirical observations do not only shed light on the possibilities and challenges pertaining to the use of forecast accuracy as a performance measure; they also improve our understanding of how specific qualities of performance measures apply to ‘truth-inducing’ indicators, and how the particular organizational and market context can shape the quality of performance measures more generally.
Journal: European Accounting Review
Pages: 337-359
Issue: 2
Volume: 29
Year: 2020
Month: 3
X-DOI: 10.1080/09638180.2019.1577150
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1577150
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Handle: RePEc:taf:euract:v:29:y:2020:i:2:p:337-359




Template-Type: ReDIF-Article 1.0
Author-Name: Itay Kama
Author-X-Name-First: Itay
Author-X-Name-Last: Kama
Author-Name: Nahum Melumad
Author-X-Name-First: Nahum
Author-X-Name-Last: Melumad
Title: Camouflaged Indicators of Earnings Management
Abstract: 
 We argue that, in response to increased scrutiny and greater attention to accruals versus sales, firms become more likely to engage in accrual conversion (AC) cash management aimed at aligning cash and accruals with earnings and sales (e.g. by factoring of receivables). In doing so, they reduce the statistical power of standard indicators of accrual-based earnings management – in effect, camouflaging their earnings management activity. This proposition is of interest because many influential papers on earnings management have utilized accrual-based indicators to reach their conclusions. Our results indicate that firms indeed became more likely to engage in AC cash management after the passage of the Sarbanes-Oxley Act (SOX), and that this tendency was particularly pronounced among firms with strong incentives (or enhanced ability) to perform and hide earnings management. In particular, our findings suggest that the post-SOX decrease in standard measurements of accrual-based earnings management, identified in prior research, is partially attributable to firms’ increased engagement in AC cash management activity.
Journal: European Accounting Review
Pages: 361-382
Issue: 2
Volume: 29
Year: 2020
Month: 3
X-DOI: 10.1080/09638180.2019.1595693
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1595693
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Handle: RePEc:taf:euract:v:29:y:2020:i:2:p:361-382




Template-Type: ReDIF-Article 1.0
Author-Name: Lijun Ma
Author-X-Name-First: Lijun
Author-X-Name-Last: Ma
Author-Name: Min Zhang
Author-X-Name-First: Min
Author-X-Name-Last: Zhang
Author-Name: Jingyu Gao
Author-X-Name-First: Jingyu
Author-X-Name-Last: Gao
Author-Name: Tingting Ye
Author-X-Name-First: Tingting
Author-X-Name-Last: Ye
Title: The Effect of Religion on Accounting Conservatism
Abstract: 
 This paper investigates whether religiosity, a key informal institutional factor, strongly influences a firm’s adoption of accounting conservatism. Using a sample from the U.S. stock market, we find that firms located in geographic areas with higher levels of religiosity tend to exhibit greater accounting conservatism. Further tests show that this effect is through the channel of engaging managers in activities that emphasize firms’ long-term growth, concern stakeholder interests, and avoid the risk of litigation. Moreover, we demonstrate that it is the religious environment in an area rather than the personal religious belief of a CEO that drives our baseline results. Finally, a supplementary test suggests that religiosity increases not only the conditional (ex post) conservatism of firms but their unconditional (ex ante) conservatism as well.
Journal: European Accounting Review
Pages: 383-407
Issue: 2
Volume: 29
Year: 2020
Month: 3
X-DOI: 10.1080/09638180.2019.1600421
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1600421
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Handle: RePEc:taf:euract:v:29:y:2020:i:2:p:383-407




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Jacob
Author-X-Name-First: Martin
Author-X-Name-Last: Jacob
Author-Name: Harm H. Schütt
Author-X-Name-First: Harm H.
Author-X-Name-Last: Schütt
Title: Firm Valuation and the Uncertainty of Future Tax Avoidance
Abstract: 
 Using a valuation framework, we show that two dimensions of tax avoidance, uncertainty and the level of expected future tax rates, are jointly related to firm value and need to be expressed as a ratio. We confirm the importance of a composite measure of tax avoidance adjusted for tax uncertainty in our empirical tests based on a sample of U.S. firms. Our findings indicate that shareholders jointly consider the level and uncertainty of future tax avoidance when valuing firms.
Journal: European Accounting Review
Pages: 409-435
Issue: 3
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638180.2019.1642775
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1642775
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Handle: RePEc:taf:euract:v:29:y:2020:i:3:p:409-435




Template-Type: ReDIF-Article 1.0
Author-Name: Cynthia Courtois
Author-X-Name-First: Cynthia
Author-X-Name-Last: Courtois
Author-Name: Yves Gendron
Author-X-Name-First: Yves
Author-X-Name-Last: Gendron
Title: The Show Must go on! Legitimization Processes Surrounding Certified Fraud Examiners’ Claim to Expertise
Abstract: 
 This article investigates how the Association of Certified Fraud Examiners (ACFE) sought to gain legitimacy among its members as a group possessing expertise in the prevention and detection of fraud. Using theoretical concepts devised by Goffman [1959. The presentation of self in everyday life. Garden City, NY: Doubleday] about performance and impression management, the ACFE’s performance is studied from the perspective of the show put on by the association’s leaders, and through our analysis of the response to this show from its members. Thanks to sophisticated data collection (ethnographic endeavor, interviews with CFEs, and document analysis), we found that the ACFE’s promotional machinery comprises pragmatic, moral, and epistemic claims. Our analysis indicates that pragmatic legitimacy plays a central role in enrolling members as ambassadors of the CFE designation – in spite of the skepticism that they tend to have regarding the association’s moral and epistemic claims. We are therefore confronted with a spread of claims to expertise taking place despite a degree of internal discordance – as if member discomfort with certain aspects of their association’s discourse is immaterial to the construction of the association’s external legitimacy. Ultimately, our findings lead us to reflect on the social value associated with the spread of credentialism in today’s society.
Journal: European Accounting Review
Pages: 437-465
Issue: 3
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638180.2019.1643753
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1643753
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Template-Type: ReDIF-Article 1.0
Author-Name: Leonidas Doukakis
Author-X-Name-First: Leonidas
Author-X-Name-Last: Doukakis
Author-Name: Dimitrios C. Ghicas
Author-X-Name-First: Dimitrios C.
Author-X-Name-Last: Ghicas
Author-Name: Georgia Siougle
Author-X-Name-First: Georgia
Author-X-Name-Last: Siougle
Author-Name: Theodore Sougiannis
Author-X-Name-First: Theodore
Author-X-Name-Last: Sougiannis
Title: The Informativeness of Micro and Macro Information During Economic Crisis and Non-Crisis Periods: Evidence from Europe
Abstract: 
 We investigate whether and how the information content of reported profitability and macroeconomic expectations changes when the state of the economy changes from non-crisis to crisis conditions. For this, we analyze data from 16 European countries over the period 2005–2015. We find macroeconomic expectations to be useful in predicting future profitability only during non-crisis periods and mainly for firms facing elastic demand for their products and services and firms without sequential losses. Current profitability as well as its cash flow and accruals components are much more informative predictors of future profitability than macroeconomic expectations in both non-crisis and crisis periods. Market pricing tests suggest that macroeconomic expectations are not informative and thus not priced by market participants during crisis periods and support efficient pricing of current profitability under both non-crisis and crisis periods. However, it is the cash flow component of profitability that is efficiently priced under both economic conditions, while the accrual component of profitability is mispriced during crisis periods. Overall, we provide evidence that reported accounting information is much more useful to stock market investors than macroeconomic expectations in both non-crisis and crisis economic periods.
Journal: European Accounting Review
Pages: 467-492
Issue: 3
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638180.2019.1642221
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1642221
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Handle: RePEc:taf:euract:v:29:y:2020:i:3:p:467-492




Template-Type: ReDIF-Article 1.0
Author-Name: Tomas Hjelström
Author-X-Name-First: Tomas
Author-X-Name-Last: Hjelström
Author-Name: Juha-Pekka Kallunki
Author-X-Name-First: Juha-Pekka
Author-X-Name-Last: Kallunki
Author-Name: Henrik Nilsson
Author-X-Name-First: Henrik
Author-X-Name-Last: Nilsson
Author-Name: Milda Tylaite
Author-X-Name-First: Milda
Author-X-Name-Last: Tylaite
Title: Executives’ Personal Tax Behavior and Corporate Tax Avoidance Consistency
Abstract: 
 We analyze executives’ (CEOs, CFOs, and Board Chairpersons) personal tax returns to investigate whether and how their personal tax behavior is associated with the tax avoidance of their firms. We develop various measures of executives’ personal tax behavior that are related to their personal risk propensity, ethics, financial incentives, and awareness of tax planning opportunities and risks. Our empirical results show that CEOs’ and CFOs’ personal tax behavior is related both to nonconforming and conforming corporate tax avoidance. We find no such results for Board Chairpersons.
Journal: European Accounting Review
Pages: 493-520
Issue: 3
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638180.2019.1642222
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1642222
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Handle: RePEc:taf:euract:v:29:y:2020:i:3:p:493-520




Template-Type: ReDIF-Article 1.0
Author-Name: Marie-Laure Vandenhaute
Author-X-Name-First: Marie-Laure
Author-X-Name-Last: Vandenhaute
Author-Name: Kris Hardies
Author-X-Name-First: Kris
Author-X-Name-Last: Hardies
Author-Name: Diane Breesch
Author-X-Name-First: Diane
Author-X-Name-Last: Breesch
Title: Professional and Commercial Incentives in Audit Firms: Evidence on Partner Compensation
Abstract: 
 Audit firms can shape and foster the desired behavior of their partners in accordance with the firm’s strategy and objectives through compensation schemes. Understanding financial incentives is therefore of great importance, especially to ensure that auditors actually deliver high quality work. This study analyzes the elements associated with the compensation of audit partners in Belgium, and specifically contributes to the literature by investigating how compensation schemes vary across firms of different sizes (Big 4, second-tier, and small audit firms). Our results indicate that the mixture of equal sharing and performance based compensation elements varies across firms of different sizes. Partner compensation in larger (Big 4 and second-tier) firms is more heavily based on performance based elements than in smaller audit firms. Furthermore, in firms of all sizes compensation appears to be strongly associated with commercially oriented elements while professionally oriented elements only play a minor role. Professionally oriented elements are, however, slightly more important in larger (Big 4 and second-tier) firms than in smaller firms.
Journal: European Accounting Review
Pages: 521-554
Issue: 3
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638180.2019.1642223
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1642223
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Handle: RePEc:taf:euract:v:29:y:2020:i:3:p:521-554




Template-Type: ReDIF-Article 1.0
Author-Name: Menachem (Meni) Abudy
Author-X-Name-First: Menachem (Meni)
Author-X-Name-Last: Abudy
Author-Name: Efrat Shust
Author-X-Name-First: Efrat
Author-X-Name-Last: Shust
Title: What Happens to Trading Volume When the Regulator Bans Voluntary Disclosure?
Abstract: 
 This paper exploits a unique natural experiment in which a regulator limited voluntary disclosure of oil and gas firms. We examine the implications of this disclosure rule on unexplained trading volume and market liquidity. Relying on the theoretical framework of Kim and Verrecchia ([1994]. Market liquidity and volume around earnings announcements. Journal of Accounting and Economics, 17(1–2), 41–67), the analysis assumes that the rule is an exogenous shock that increased the precision of disclosed information. Based on a sample of current filings, we find indications that on average, after the new regulation came into effect, filings of oil and gas firms generated less unexplained trading volume than they had prior to the regulation. A possible interpretation of these findings is a decline in investor disagreement following the rule. We also find that liquidity around current filings of oil and gas firms increased following the disclosure rule. Moreover, some results indicate that differences in unexplained trading volume associated with the characteristics of the filing firm or of the filing itself prior to the rule were moderated after it came into effect.
Journal: European Accounting Review
Pages: 555-580
Issue: 3
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638180.2019.1649164
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1649164
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Handle: RePEc:taf:euract:v:29:y:2020:i:3:p:555-580




Template-Type: ReDIF-Article 1.0
Author-Name: Xaver Heinicke
Author-X-Name-First: Xaver
Author-X-Name-Last: Heinicke
Author-Name: Thomas W. Guenther
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Guenther
Title: The Role of Management Controls in the Higher Education Sector: An Investigation of Different Perceptions
Abstract: 
 A variety of empirical studies have investigated the relationship between management controls (MCs) and the financial and nonfinancial performance of for-profit firms, but there is a dearth of research on MCs in the higher education (HE) sector. Our study contributes to MC research by investigating the mediating role of MCs in the relationship between structural autonomy and both research and teaching performance in HE institutions and by comparing the perceptions of two major actors: heads of administration and academic deans. We use survey data of two paired subgroups with 104 heads of administration and 104 academic deans and perform a multigroup analysis with structural equation modeling. We find significant differences between heads of administration and academic deans concerning the relationship between structural autonomy and MCs and between MCs and teaching and research performance for the diagnostic and interactive use of controls. For heads of administration, we find that only strategic boundaries and strategic beliefs are significantly associated with teaching performance, whereas for academic deans, more autonomy is associated with more emphasis on most MCs. Furthermore, for academic deans, more emphasis on diagnostic use, but less on interactive use, is associated with higher research performance.
Journal: European Accounting Review
Pages: 581-630
Issue: 3
Volume: 29
Year: 2020
Month: 5
X-DOI: 10.1080/09638180.2019.1619603
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1619603
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Template-Type: ReDIF-Article 1.0
Author-Name: Carolin Mauch
Author-X-Name-First: Carolin
Author-X-Name-Last: Mauch
Author-Name: Jens Robert Schöndube
Author-X-Name-First: Jens
Author-X-Name-Last: Robert Schöndube
Title: Controlling Scarce Working Time in a Multi-task Incentive Problem
Abstract: 
 Even though working time is one of the firm's scarcest resources, there are very few insights into how to optimally control it. In this paper we analyze the optimal allocation of scarce working time to two tasks in a contracting problem. Since each hour devoted to one specific task is not available for the other task, and vice versa, the agent accounts for opportunity cost when allocating his time to the tasks. We analyze this trade-off assuming that the agent's contribution is not contractible, such that a contract must be written based on an alternative measure. Time scarcity restricts total output. At the same time, however, it changes the agent's focus of attention towards the task with the higher performance sensitivity. Thus, by increasing the incentive coefficient the principal induces the agent to shift time from the less sensitive to the more sensitive task. The main contribution of our paper is that we show that time scarcity can improve the congruence of the agent's behavior with the principal's objectives. Under certain conditions an improved alignment of effort under time scarcity offsets the reduction of output and increases the agency's surplus.
Journal: European Accounting Review
Pages: 151-175
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2017.1408478
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1408478
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:151-175




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Steinmeier
Author-X-Name-First: Maria
Author-X-Name-Last: Steinmeier
Author-Name: Michael Stich
Author-X-Name-First: Michael
Author-X-Name-Last: Stich
Title: Does Sustainability Assurance Improve Managerial Investment Decisions?
Abstract: 
 This study analyzes the effect of sustainability assurance (SA) on managerial investment decisions in terms of sustainability investment (SI) efficiency. We hypothesize that SA improves the set of information available for managerial decision making, resulting in higher SI efficiency. Further, we argue that SA reduces information asymmetry between managers and investors, which enables investors to more effectively monitor a firm’s management, thus again leading to higher SI efficiency. Empirical findings for an international sample support these links. Moreover, we find weak evidence that SA provided by an auditor is associated with a stronger effect on SI efficiency. In additional analyses, we find weak evidence that the association of SA and SI efficiency is more pronounced if the SA is provided on a higher scope, on a higher level, and if other governance mechanisms are weak.
Journal: European Accounting Review
Pages: 177-209
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2017.1412337
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1412337
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:177-209




Template-Type: ReDIF-Article 1.0
Author-Name: Markus Brunner
Author-X-Name-First: Markus
Author-X-Name-Last: Brunner
Author-Name: Andreas Ostermaier
Author-X-Name-First: Andreas
Author-X-Name-Last: Ostermaier
Title: Sabotage in Capital Budgeting: The Effects of Control and Honesty on Investment Decisions
Abstract: 
 This study investigates the sabotage of investments in response to hurdle contracts as a means of formal control in capital budgeting. We conduct a laboratory experiment to examine factors that drive or inhibit sabotage. Sabotage occurs when the manager provides false information to prevent the firm from realizing a profitable investment, which is costly both for the manager and the firm. Our results show that managers sabotage investments to reciprocate for distrustful formal control. Conversely, budget communication that requires factual assertions and thus activates managers' preference for honesty inhibits sabotage. Moreover, honesty suppresses negative reciprocity and thus reduces sabotage not only directly but also indirectly. Our findings warn firms to consider the sabotage of investments as a hidden cost of control in budgeting. They show that honesty has a spill-over effect, as it absorbs negative reciprocity.
Journal: European Accounting Review
Pages: 71-100
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2017.1412338
File-URL: http://hdl.handle.net/10.1080/09638180.2017.1412338
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:71-100




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Bertomeu
Author-X-Name-First: Jeremy
Author-X-Name-Last: Bertomeu
Author-Name: Robert P. Magee
Author-X-Name-First: Robert P.
Author-X-Name-Last: Magee
Author-Name: Georg Schneider
Author-X-Name-First: Georg
Author-X-Name-Last: Schneider
Title: Voting over Disclosure Standards
Abstract: 
 This article examines the nature of disclosure standards, under the assumption that (i) standards preferred by more firms are collectively chosen and (ii) privately informed firms prefer standards that increase market perceptions about the value of their assets. A standard is stable if it is preferred by a large enough super-majority of firms over any other standards. Absent any restriction on possible standards, only unanimity would make a standard stable. By contrast, when requiring standards that classify news from best to worst, there is at most a single stable standard, and it must be full disclosure. For a large class of distributions over valuations, the required super-majority is about two-thirds, close to the majority required in many standard-setting boards. Value distributions with heavy tails, such as news that contains extreme risks, require higher super-majorities to be stable. These insights are robust to settings in which the information is used in decision-making.
Journal: European Accounting Review
Pages: 45-70
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2018.1444500
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1444500
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:45-70




Template-Type: ReDIF-Article 1.0
Author-Name: Sterling Huang
Author-X-Name-First: Sterling
Author-X-Name-Last: Huang
Author-Name: Chee Yeow Lim
Author-X-Name-First: Chee Yeow
Author-X-Name-Last: Lim
Author-Name: Jeffrey Ng
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Ng
Title: Not Clawing the Hand that Feeds You: The Case of Co-opted Boards and Clawbacks
Abstract: 
 We examine how board co-option, defined as the fraction of the board comprising directors appointed after the CEO assumed office, is related to clawback adoption. We find that co-opted boards have a lower probability of adopting clawback provisions. Further, the negative association between board co-option and clawback adoption is more pronounced when at least one co-opted member is on the compensation committee and when there is a higher likelihood that a clawback provision will be triggered. Finally, we find that board co-option is an important mechanism through which longer tenured CEOs reduce the likelihood of clawback adoption.
Journal: European Accounting Review
Pages: 101-127
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2018.1446036
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1446036
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:101-127




Template-Type: ReDIF-Article 1.0
Author-Name: Jaywon Lee
Author-X-Name-First: Jaywon
Author-X-Name-Last: Lee
Author-Name: Jongwon Park
Author-X-Name-First: Jongwon
Author-X-Name-Last: Park
Title: The Impact of Audit Committee Financial Expertise on Management Discussion and Analysis (MD&A) Tone
Abstract: 
 This study examines whether financial expertise of audit committees affects the quality of textual information conveyed through the management discussion and analysis (MD&A) section of corporate annual reports. Our empirical results reveal that audit committee financial expertise, particularly that which is directly connected to accounting, curtails managerial opportunism in the form of upward management of MD&A tone. In addition, we find that the effect of financial expertise is more pronounced when the audit committee is more powerful or when audit committee members face higher litigation risks. Overall, this study highlights the importance of audit committee financial expertise in improving the quality of qualitative disclosures.
Journal: European Accounting Review
Pages: 129-150
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2018.1447387
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1447387
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:129-150




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Barthelme
Author-X-Name-First: Christian
Author-X-Name-Last: Barthelme
Author-Name: Paraskevi Vicky Kiosse
Author-X-Name-First: Paraskevi Vicky
Author-X-Name-Last: Kiosse
Author-Name: Thorsten Sellhorn
Author-X-Name-First: Thorsten
Author-X-Name-Last: Sellhorn
Title: The Impact of Accounting Standards on Pension Investment Decisions
Abstract: 
 This study analyzes the ‘real’ effects of accounting standards in the context of defined benefit pension plans. Specifically, we examine the impact of IAS 19R, which increases expected pension-induced equity volatility by eliminating the so-called ‘corridor method’, a smoothing device for actuarial gains and losses. Supported by interview evidence, we show that IAS 19R leads firms to reconsider their pension investment decisions. Using matched samples of treatment and control firms, results from multivariate difference-in-differences tests indicate that firms affected by the adoption of IAS 19R significantly shift their pension assets from equities into bonds, relative to control firms. This effect is attenuated for firms with larger and better-funded pension plans. Supplementary analyses suggest that this shift in pension investment is mainly due to IAS 19R’s changes in the accounting for actuarial gains and losses (the ‘OCI method’). These results are robust to several sensitivity tests, although endogeneity concerns cannot be fully ruled out. Our study informs accounting standard setters and other stakeholders of potential shifts in firms’ real economic activities due to concerns about pension-induced equity volatility.
Journal: European Accounting Review
Pages: 1-33
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2018.1461670
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1461670
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Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Cascino
Author-X-Name-First: Stefano
Author-X-Name-Last: Cascino
Title: Bridging Financial Reporting Research and Policy: A Discussion of ‘The Impact of Accounting Standards on Pension Investment Decisions’
Abstract: 
 Barthelme, Kiosse, and Sellhorn (2018. The impact of accounting standards on pension investment decisions. European Accounting Review. doi:10.1080/09638180.2018.1461670) examine the real effects of pension accounting regulation and provide evidence consistent with the claim that recent changes in financial reporting rules affect pension asset allocation decisions. Their study offers an interesting opportunity to highlight the importance of evidence-based policymaking in the field of financial reporting. I discuss some empirical challenges that the authors face to causally identify the effects they examine to show how a closer cooperation between academia and regulators can enable researchers to overcome identification challenges and help produce even more policy-relevant research.
Journal: European Accounting Review
Pages: 35-43
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2018.1522130
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1522130
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:35-43




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Thank you to Associate Editors, Editorial Board Members, Ad-hoc Associate Editors, Guest Editors and Reviewers 2018
Journal: European Accounting Review
Pages: 211-222
Issue: 1
Volume: 28
Year: 2019
Month: 1
X-DOI: 10.1080/09638180.2019.1573598
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1573598
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Handle: RePEc:taf:euract:v:28:y:2019:i:1:p:211-222




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Gomaa
Author-X-Name-First: Mohamed
Author-X-Name-Last: Gomaa
Author-Name: Kiridaran Kanagaretnam
Author-X-Name-First: Kiridaran
Author-X-Name-Last: Kanagaretnam
Author-Name: Stuart Mestelman
Author-X-Name-First: Stuart
Author-X-Name-Last: Mestelman
Author-Name: Mohamed Shehata
Author-X-Name-First: Mohamed
Author-X-Name-Last: Shehata
Title: Testing the Efficacy of Replacing the Incurred Credit Loss Model with the Expected Credit Loss Model
Abstract: 
 We use a controlled laboratory environment to provide evidence on the potential efficacy of the replacement of the Incurred Credit Loss (ICL) Model of International Accounting Standard (IAS 39) by the Expected Credit Loss (ECL) model of IFRS 9 to account for credit impairment losses. We focus on the simplified version of the ECL model using an uncertain production environment as the context. We induce incentives consistent with the existing rigid rule-based ICL model and the proposed forward-looking principle-based ECL model. Our primary finding is that the combined effects of eliminating the minimum ‘probable’ threshold condition together with allowing managers to incorporate forward-looking information increase both the amount and adequacy of periodic reserve decisions. In addition, we analyze the effects of increased flexibility under the new credit-loss model on earnings management using three different compensation schemes. We find that while the replacement of the ICL model with the ECL model facilitates higher reserves, the resulting increased earnings management varies across compensation schemes, is less than predicted, and does not offset the potential of the ECL model’s positive effects. The results provide ex ante evidence on the likely intended and unintended consequences of implementing the ECL model.
Journal: European Accounting Review
Pages: 309-334
Issue: 2
Volume: 28
Year: 2019
Month: 3
X-DOI: 10.1080/09638180.2018.1449660
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1449660
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Handle: RePEc:taf:euract:v:28:y:2019:i:2:p:309-334




Template-Type: ReDIF-Article 1.0
Author-Name: Vincent K. Chong
Author-X-Name-First: Vincent K.
Author-X-Name-Last: Chong
Author-Name: Isabel Z. Wang
Author-X-Name-First: Isabel Z.
Author-X-Name-Last: Wang
Title: Delegation of Decision Rights and Misreporting: The Roles of Incentive-based Compensation Schemes and Responsibility Rationalization
Abstract: 
 Our paper examines when and how the delegation of decision rights and incentive-based compensation schemes (two organizational-design choices) and responsibility rationalization affect managers’ misreporting behavior. One hundred and twenty-nine managers from manufacturing firms in the US completed an online survey. Our results suggest that managers’ responsibility rationalization moderates the relationships between the delegation of decision rights and misreporting, and incentive-based compensation schemes and misreporting. Despite our results providing no evidence of a simple mediating role of incentive-based compensation schemes on the relationship between the delegation of decision rights and misreporting, we find support for a moderated-mediation effect. Specifically, our results demonstrate that the indirect effect of the delegation of decision rights on misreporting via incentive-based compensation schemes is conditional on managers’ responsibility rationalization. The theoretical and practical implications of our findings are discussed.
Journal: European Accounting Review
Pages: 275-307
Issue: 2
Volume: 28
Year: 2019
Month: 3
X-DOI: 10.1080/09638180.2018.1452771
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1452771
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Handle: RePEc:taf:euract:v:28:y:2019:i:2:p:275-307




Template-Type: ReDIF-Article 1.0
Author-Name: Eli Amir
Author-X-Name-First: Eli
Author-X-Name-Last: Amir
Author-Name: Shai Levi
Author-X-Name-First: Shai
Author-X-Name-Last: Levi
Title: Estimating the Precision of Information on Earnings and Non-earnings Announcement Days, and Its Relation with the Cost of Equity
Abstract: 
 Using daily stock returns, we estimate the precision of information during earnings and non-earnings announcement days, and find that although the precision of information in daily stock returns increases during earnings announcement days, it explains less of the variation in expected returns than the precision of information on non-earnings announcement days. Our findings suggest that the precision of earnings disclosures has a small effect on the cost of equity relative to the precision of information on other days of the year.
Journal: European Accounting Review
Pages: 223-248
Issue: 2
Volume: 28
Year: 2019
Month: 3
X-DOI: 10.1080/09638180.2018.1461119
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1461119
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Template-Type: ReDIF-Article 1.0
Author-Name: Uday Chandra
Author-X-Name-First: Uday
Author-X-Name-Last: Chandra
Author-Name: Richard Schneible
Author-X-Name-First: Richard
Author-X-Name-Last: Schneible
Title: An Investigation of Stock Price Declines Following Corporate Financing Events: Further Evidence
Abstract: 
 Prior research documents a large downward drift in stock prices following issuances of debt and equity by US firms. We conduct tests based on both stock price and trading volume to provide evidence on the reasons for this apparent market anomaly. We document evidence of earnings management through accruals prior to external financing and lower operating performance afterward that is associated with the amount of capital raised. The earnings management that precedes external financing and the amount of capital raised are associated with both the post-financing decline in stock price and trading volume around earnings announcements that follow for a period of three years. This evidence is consistent with the proposition that firms raise external capital prior to predictable declines in their operating performance and they release upward biased earnings before these events to manage investor expectations. The failure of many investors to incorporate this information into their trading decisions in a timely manner consistent with limited attention and over-confidence appears to drive stock mispricing. Our evidence does not support the conjecture that the financing anomaly is primarily a statistical artifact or that it is a manifestation of the accrual anomaly.
Journal: European Accounting Review
Pages: 249-274
Issue: 2
Volume: 28
Year: 2019
Month: 3
X-DOI: 10.1080/09638180.2018.1464398
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1464398
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Handle: RePEc:taf:euract:v:28:y:2019:i:2:p:249-274




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanna Michelon
Author-X-Name-First: Giovanna
Author-X-Name-Last: Michelon
Author-Name: Dennis M. Patten
Author-X-Name-First: Dennis M.
Author-X-Name-Last: Patten
Author-Name: Andrea M. Romi
Author-X-Name-First: Andrea M.
Author-X-Name-Last: Romi
Title: Creating Legitimacy for Sustainability Assurance Practices: Evidence from Sustainability Restatements
Abstract: 
 This study examines sustainability reporting assurance (SRA) provider use of sustainability restatements as a means to create legitimacy in the developing SRA market. In comparison to financial data, mistakes in sustainability reporting are more likely to be made and less likely to be discovered prior to reporting. A lack of clear reporting standards and ambiguous SRA guidelines create a setting where providers can use restatements in an attempt to demonstrate both a problem in sustainability reporting and assurance as the solution to that issue. Based on a sample of US firms from 2010 to 2014, we find that SRA is associated with an increased likelihood of sustainability restatements, that the association is stronger for error restatements than for restatements due to methodological updates, and that SRA is significantly associated with the disclosure of quantitatively non-material restatements. We also document differences in these relations across provider type, with only consultant assurance significantly associated with methodological restatements and restatements of a non-material amount. Our findings support differences between sustainability report restatements and financial restatements, and provide evidence in support of our argument that assurance providers may be using restatements in an attempt to expand market share in a new professional space.
Journal: European Accounting Review
Pages: 395-422
Issue: 2
Volume: 28
Year: 2019
Month: 3
X-DOI: 10.1080/09638180.2018.1469424
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1469424
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Handle: RePEc:taf:euract:v:28:y:2019:i:2:p:395-422




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Humphrey
Author-X-Name-First: Christopher
Author-X-Name-Last: Humphrey
Author-Name: Oxana Kiseleva
Author-X-Name-First: Oxana
Author-X-Name-Last: Kiseleva
Author-Name: Thomas Schleicher
Author-X-Name-First: Thomas
Author-X-Name-Last: Schleicher
Title: A Time-Series Analysis of the Scale of Coercive Journal Self-Citation and its Effect on Impact Factors and Journal Rankings
Abstract: 
 The growing institutional significance of impact factors and journal rankings currently stands alongside serious concerns about the scale and distorting effects of the practice of coercive journal self-citation. Survey-based studies have highlighted journals suspected of such coercion but there has been very little empirical analysis of actual citation practice and the respective impact on journal quality rankings. This paper collects information on actual self-citation trends over the period 2000–2012 for all business and management journals indexed in Journal Citation Reports and finds evidence of sudden and sharp increases in self-citation relative to outside citation. This paper also finds that two leading hybrid journal ranking systems, the UK’s 2010 Association of Business Schools (ABS) and the 2013 Australian Business Deans Council (ABDC) rankings, do not discriminate between legitimate and coercive self-citation. Collectively, these findings have implications regarding the institutional reliance placed on citation counts as quantitative measures of accountability. However, the deterrent potential of our analysis, especially given the ease with which coercive self-citation behavior can be empirically detected from publicly available data, could provide an important limit on the spread of performativity.
Journal: European Accounting Review
Pages: 335-369
Issue: 2
Volume: 28
Year: 2019
Month: 3
X-DOI: 10.1080/09638180.2018.1470019
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1470019
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Handle: RePEc:taf:euract:v:28:y:2019:i:2:p:335-369




Template-Type: ReDIF-Article 1.0
Author-Name: Hyung Tae Kim
Author-X-Name-First: Hyung Tae
Author-X-Name-Last: Kim
Author-Name: Byungjin Kwak
Author-X-Name-First: Byungjin
Author-X-Name-Last: Kwak
Author-Name: Jaywon Lee
Author-X-Name-First: Jaywon
Author-X-Name-Last: Lee
Author-Name: Inho Suk
Author-X-Name-First: Inho
Author-X-Name-Last: Suk
Title: CEO and Outside Director Equity Compensation: Substitutes or Complements for Management Earnings Forecasts?
Abstract: 
 This study examines how the equity compensation of chief executive officers (CEO) and that of outside directors affect management earnings forecasts (MFs) and the relationship between these two positions in terms of compensation. Our evidence reveals that CEO (director) equity compensation is positively associated with MF likelihood, frequency, and accuracy when director (CEO) equity compensation is not high. However, an increase in director (CEO) equity compensation is not effective in improving disclosure quality when the level of CEO (director) equity compensation is already high. These results suggest that the two incentive mechanisms act as substitutes when both are intensively used in the context of MF disclosure.
Journal: European Accounting Review
Pages: 371-393
Issue: 2
Volume: 28
Year: 2019
Month: 3
X-DOI: 10.1080/09638180.2018.1473159
File-URL: http://hdl.handle.net/10.1080/09638180.2018.1473159
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Handle: RePEc:taf:euract:v:28:y:2019:i:2:p:371-393




Template-Type: ReDIF-Article 1.0
Author-Name: Ruizhe Wang
Author-X-Name-First: Ruizhe
Author-X-Name-Last: Wang
Author-Name: Shan Zhou
Author-X-Name-First: Shan
Author-X-Name-Last: Zhou
Author-Name: Timothy Wang
Author-X-Name-First: Timothy
Author-X-Name-Last: Wang
Title: Corporate Governance, Integrated Reporting and the Use of Credibility-enhancing Mechanisms on Integrated Reports
Abstract: 
 The International Integrated Reporting Council (IIRC) and the South African King III Report on Governance emphasize the role of corporate governance in preparing a high-quality integrated report and establishing an appropriate credibility-enhancing process. This paper examines the significance of corporate governance mechanisms in explaining variations in the quality of integrated reports and the extent and quality of credibility-enhancing mechanisms (CEMs) for integrated reports. Using a sample of integrated reports published between 2012 and 2015 by listed companies on the Johannesburg Stock Exchange, this study finds that traditional governance mechanisms such as the board and the audit committee are positively related to the reporting quality of <IR> and use of CEMs. In addition, sustainability-oriented corporate governance mechanisms (i.e. sustainability committee and the use of non-financial performance measures in executives’ compensation contracts) have an incremental positive effect on both the quality of <IR> and the extent and quality of CEMs on integrated reports. Additional analyses attribute the positive effect of these corporate governance mechanisms on <IR> quality and the use of CEMs mainly to the diligence and expertise of the board of directors and audit committee and the independence and expertise of a sustainability committee.
Journal: European Accounting Review
Pages: 631-663
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1668281
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1668281
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:631-663




Template-Type: ReDIF-Article 1.0
Author-Name: Gus De Franco
Author-X-Name-First: Gus
Author-X-Name-Last: De Franco
Author-Name: Florin P. Vasvari
Author-X-Name-First: Florin P.
Author-X-Name-Last: Vasvari
Author-Name: Dushyantkumar Vyas
Author-X-Name-First: Dushyantkumar
Author-X-Name-Last: Vyas
Author-Name: Regina Wittenberg-Moerman
Author-X-Name-First: Regina
Author-X-Name-Last: Wittenberg-Moerman
Title: Similarity in the Restrictiveness of Bond Covenants
Abstract: 
 We examine the economic determinants and consequences associated with the inclusion of covenants with similar levels of restrictiveness in bond contracts. Using a unique Moody’s bond covenant dataset, we develop measures that capture similarity in the restrictiveness of bond covenants relative to previously issued peer bonds. We document that the demand for similarity by issuers, their advisors and bond investors follows the predictions of sociological and economic theories. Further, consistent with similarity in covenants reducing bond investors’ information acquisition and processing costs, we show that bonds with more similar covenant restrictiveness receive lower yields at issuance. These bonds are also more likely to be held by long-term bond investors, such as insurance companies, and are characterized by greater liquidity in the secondary market, providing a partial explanation for the lower bond yields. Our results highlight the benefits of covenant similarity and suggest that the use of covenants with similar restrictiveness levels brings information acquisition and processing cost savings that may be larger than the monitoring benefits provided by covenants with more tailored features.
Journal: European Accounting Review
Pages: 665-691
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1664311
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1664311
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:665-691




Template-Type: ReDIF-Article 1.0
Author-Name: Pietro A. Bianchi
Author-X-Name-First: Pietro A.
Author-X-Name-Last: Bianchi
Author-Name: Nieves Carrera
Author-X-Name-First: Nieves
Author-X-Name-Last: Carrera
Author-Name: Marco Trombetta
Author-X-Name-First: Marco
Author-X-Name-Last: Trombetta
Title: The Effects of Auditor Social and Human Capital on Auditor Compensation: Evidence from the Italian Small Audit Firm Market
Abstract: 
 This study examines whether social and human capital influence the compensation of individual auditors in the small audit firm market. We employ a sample of Italian auditors and use measures from the network and auditing literatures to capture their professional connections, representing social capital, and their industry expertise, representing human capital. Our findings show a positive and economically meaningful association between these individual attributes and auditor compensation. We run several tests to address potential endogeneity issues in our research design. Our results suggest that, in the small audit market, clients perceive as valuable those auditors with higher social and human capital, and as a result, are willing to pay a premium for these specific auditor attributes.
Journal: European Accounting Review
Pages: 693-721
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1647258
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1647258
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:693-721




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Coyne
Author-X-Name-First: Joshua
Author-X-Name-Last: Coyne
Author-Name: Kevin H. Kim
Author-X-Name-First: Kevin H.
Author-X-Name-Last: Kim
Author-Name: Sangwan Kim
Author-X-Name-First: Sangwan
Author-X-Name-Last: Kim
Title: The Role of the Business Press in Creating and Disseminating Information around Earnings Announcements
Abstract: 
 This paper investigates the role of the business press in creating and disseminating information around earnings announcements by examining different motivations of trading volume. We find that press coverage is positively associated with trading activity motivated by differential interpretation and by differential belief revision, consistent with the press playing both an information creation and information dissemination role around earnings announcements. When we divide press coverage into full articles with additional editorial content and news flashes merely repeating verbatim of firm-disclosed press releases, we find that trading volume motivated by both differential interpretation and differential belief revision increases as coverage by full articles increases, and trading volume motivated by differential belief revision increases as coverage by news flashes increases. We also report that the differential interpretation effect of full articles is more pronounced when information users’ sophistication is high. Overall, we provide new evidence to the literature by showing that each type of press coverage plays an informational role in different motivations of trading activity.
Journal: European Accounting Review
Pages: 723-751
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1670224
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1670224
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:723-751




Template-Type: ReDIF-Article 1.0
Author-Name: Derek W. Dalton
Author-X-Name-First: Derek W.
Author-X-Name-Last: Dalton
Author-Name: Jeremy M. Vinson
Author-X-Name-First: Jeremy M.
Author-X-Name-Last: Vinson
Author-Name: Sally K. Widener
Author-X-Name-First: Sally K.
Author-X-Name-Last: Widener
Title: Is Prestige Only Beneficial? A Cost of Perceived External Prestige Among Accounting Employees
Abstract: 
 Perceived external prestige (PEP), which is an employee’s belief of how outsiders view his or her organization, has a positive effect on multiple employee job outcomes. However, we posit that PEP also carries costs that arise due to increases in the perception of coworker competitiveness that negatively affects some job outcomes. Prior research has not yet examined negative outcomes of PEP. Using structural equation modeling with survey data from a sample of 477 accounting professionals employed in public accounting firms, we find that PEP is negatively related to job satisfaction and positively related to turnover intentions through its relationship with perceptions of the competitiveness of coworker environment, thus documenting a cost of PEP. Overall, though, we find that the net effect of PEP on job outcomes remains positive. Additionally, we find these relationships hold with 383 accounting professionals in industry. Implications for research and practice are discussed.
Journal: European Accounting Review
Pages: 753-780
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1682021
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1682021
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:753-780




Template-Type: ReDIF-Article 1.0
Author-Name: Mouna Hazgui
Author-X-Name-First: Mouna
Author-X-Name-Last: Hazgui
Author-Name: Bertrand Malsch
Author-X-Name-First: Bertrand
Author-X-Name-Last: Malsch
Title: Navigating Through the Spatial and Institutional Contradictions of Public Audit Oversight
Abstract: 
 This study revisits the actions of the French audit regulator (H3C) and the French profession over the 2003–2013 period in response to the regulatory transformations that occurred both in the national and transnational space. Our analysis highlights how these actors have navigated through the spatial and institutional contradictions that characterize public audit oversight in order to manage variable and opposing interests from one space to another. In particular, we show how conflicting national and transnational conceptions of professionalism and commercialism have developed to support different regulatory agendas. Our analysis of the spatial dynamics of public audit oversight allows us to propose a much less confrontational representation of the relationships between public audit regulators and the audit profession. We maintain that more attention should be paid to the spatial variants of commercialism and professionalism to better understand the development of audit regulation.
Journal: European Accounting Review
Pages: 781-802
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1683461
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1683461
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:781-802




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Kopel
Author-X-Name-First: Michael
Author-X-Name-Last: Kopel
Author-Name: Christian Riegler
Author-X-Name-First: Christian
Author-X-Name-Last: Riegler
Author-Name: Georg Schneider
Author-X-Name-First: Georg
Author-X-Name-Last: Schneider
Title: Providing Managerial Accounting Information in the Presence of a Supplier
Abstract: 
 This paper identifies a novel effect which is crucial for the design of a management accounting information system. In contrast to prior literature, we explicitly model the firm's relationship to a supplier. We show that in addition to the previously identified trade-off – benefits of more information versus indirect or direct (agency) costs of information acquisition – another effect occurs: the input price effect. This effect influences the optimal design of the management accounting information system and changes the regimes where information acquisition is optimal for the principal. Also, in case of endogenous input prices we demonstrate that – perhaps surprisingly – paying an information rent to the agent can be beneficial because it works as a commitment towards an over-charging supplier to exploit the input price effect.
Journal: European Accounting Review
Pages: 803-823
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1694955
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1694955
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:803-823




Template-Type: ReDIF-Article 1.0
Author-Name: Tsahi Versano
Author-X-Name-First: Tsahi
Author-X-Name-Last: Versano
Title: Enforcement of Optimal Disclosure Rules in the Presence of Moral Hazard
Abstract: 
 This paper analyzes the role of disclosure enforcement mechanisms (such as SEC enforcement teams and corporate governance systems) in directing the disclosure practices of managers when the information is used by shareholders to monitor the manager. The paper establishes a role for a disclosure enforcement system by showing that in its absence it is impossible to simultaneously induce a manager to adopt the desirable disclosure strategy and use the disclosure efficiently to monitor him. The paper shows how the effectiveness of the disclosure enforcement system and the cost of disclosure influence (i) the economic viability of the disclosure enforcement system, (ii) the disclosure policy of the manager, and (iii) the value of including stock options in the manager's compensation package.
Journal: European Accounting Review
Pages: 825-849
Issue: 4
Volume: 29
Year: 2020
Month: 7
X-DOI: 10.1080/09638180.2019.1696216
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1696216
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Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:825-849




Template-Type: ReDIF-Article 1.0
Author-Name: Conor Clune
Author-X-Name-First: Conor
Author-X-Name-Last: Clune
Author-Name: Brendan O’Dwyer
Author-X-Name-First: Brendan
Author-X-Name-Last: O’Dwyer
Title: Framing Engagement that Resonates: Organizing Advocacy for Corporate Social and Environmental Accountability
Abstract: 
 This paper examines how advocacy organizations organize engagements to advance corporate social and environmental accountability. We present an in-depth case study examining how an influential Dutch advocacy organization enacted its engagement with companies to promote the adoption of corporate social responsibility (CSR) reporting and management practices. Drawing on the construct of strategic framing, we unpack the characteristics that supported the development of a resonant engagement frame that set the boundaries and expectations around the organization’s engagement with companies. We unveil how several internal organizational deficiencies impeded the quality of these engagements, thereby threatening this frame resonance. The paper extends our understanding of the nature and role of strategic framing in the construction of CSR reporting and advances our limited knowledge of how CSR advocacy organizations’ internal operations impact on their engagement efforts. This allows us to better comprehend how these organizations can set engagement agendas and mobilize support for collaborative CSR change initiatives.
Journal: European Accounting Review
Pages: 851-875
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2020.1746374
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1746374
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Handle: RePEc:taf:euract:v:29:y:2020:i:5:p:851-875




Template-Type: ReDIF-Article 1.0
Author-Name: Wen He
Author-X-Name-First: Wen
Author-X-Name-Last: He
Author-Name: Andrew B. Jackson
Author-X-Name-First: Andrew B.
Author-X-Name-Last: Jackson
Author-Name: Chao Kevin Li
Author-X-Name-First: Chao Kevin
Author-X-Name-Last: Li
Title: Hierarchy and Performance of Analyst Teams
Abstract: 
 We examine the effect of hierarchy on analyst teams’ performance using a large sample of financial analysts from China. Hierarchy, defined as the disparity in power or status within a group, which we operationalize as the difference in experience between the senior and junior analyst in a team, is an important aspect of team structure that could affect team performance. We find that analyst teams with a hierarchy outperform flat teams (teams without a clear hierarchy). Specifically, hierarchical teams issue forecasts with higher accuracy, less optimism bias, less co-movement with the consensus, and stronger investor reactions. The results remain robust after we control for a number of firm and analyst characteristics and fixed effects. Further analysis shows that working in a hierarchical team helps junior analysts improve their individual forecasts for other firms, and senior analysts also benefit from working with junior analysts in hierarchical teams. Our results provide important insights into understanding the effect of team structure on the performance of analyst teams who issue majority of earnings forecasts.
Journal: European Accounting Review
Pages: 877-900
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2020.1714460
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1714460
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Handle: RePEc:taf:euract:v:29:y:2020:i:5:p:877-900




Template-Type: ReDIF-Article 1.0
Author-Name: Antti Fredriksson
Author-X-Name-First: Antti
Author-X-Name-Last: Fredriksson
Author-Name: Anila Kiran
Author-X-Name-First: Anila
Author-X-Name-Last: Kiran
Author-Name: Lasse Niemi
Author-X-Name-First: Lasse
Author-X-Name-Last: Niemi
Title: Reputation Capital of Directorships and Demand for Audit Quality
Abstract: 
 This study examines whether boards of directors use external auditing to protect their reputation capital. We hypothesize and find that audit quality increases with the level of directors’ reputation capital. More specifically, using ten-year panel data on Finnish listed companies, we find that our measures of reputation capital based on the number of directorships that directors possess and their compensation are positively associated with various proxies for audit quality. We also find that the observed reputation effect on audit fees is stronger in companies with an audit committee, and that reputation capital matters in auditor choice in those companies in particular. In combination, our results add to the literature on the reputation capital of those in charge of corporate governance.
Journal: European Accounting Review
Pages: 901-926
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2020.1724550
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1724550
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Handle: RePEc:taf:euract:v:29:y:2020:i:5:p:901-926




Template-Type: ReDIF-Article 1.0
Author-Name: Corinna Ewelt-Knauer
Author-X-Name-First: Corinna
Author-X-Name-Last: Ewelt-Knauer
Author-Name: Thorsten Knauer
Author-X-Name-First: Thorsten
Author-X-Name-Last: Knauer
Author-Name: David Sharp
Author-X-Name-First: David
Author-X-Name-Last: Sharp
Title: The Effect of Relative Performance Information, Peers’ Rule-breaking, and Controls on Employees’ own Rule-breaking
Abstract: 
 This study investigates how relative performance information (RPI) and peers’ rule-breaking affect an employee’s own rule-breaking in both the absence and presence of weak formal controls. We vary the presence of RPI (absent vs. present), the level of peers’ rule-breaking (low vs. high), and the presence of weak formal controls (absent vs. present). We find that in the absence of formal controls, RPI provision increases an employee’s rule-breaking when he/she perceives that his/her peers’ rule-breaking is high but not when his/her peers’ rule-breaking is low. We attribute this finding to the increased importance of the behavior of others when RPI is present. Further, we provide evidence that the presence of weak formal controls increases rule-breaking relative to no controls. We argue that such controls alter employees’ perception of the context and induce a more calculative focus on the economic benefits than the costs, while ethical motivations are crowded out. Finally, we show that ethical considerations triggered by RPI in situations of low levels of peers’ rule-breaking become less important when weak controls are present. Overall, this study informs accountants about the effects of RPI, a crucial performance evaluation system, on the critical aspect of rule-breaking.
Journal: European Accounting Review
Pages: 927-948
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2020.1745658
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1745658
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Handle: RePEc:taf:euract:v:29:y:2020:i:5:p:927-948




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Ma
Author-X-Name-First: Chen
Author-X-Name-Last: Ma
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Gerald J. Lobo
Author-X-Name-First: Gerald J.
Author-X-Name-Last: Lobo
Title: Are Geographical Dispersion and Institutional Dispersion Related to Accounting Misstatements?
Abstract: 
 We examine the relation between geographical and institutional dispersion and accounting misstatements in China. We hypothesize that geographical dispersion is positively associated with the likelihood of accounting misstatements in subsidiary firms because of increasing monitoring cost and find evidence consistent with this prediction. We also focus on institutional dispersion because institutional duality may affect an organization’s behavior, but do not find that institutional dispersion is associated with accounting misstatements in subsidiary firms. Next, we find that geographical dispersion and institutional dispersion are negatively associated with misstatements in parent firms’ financial statements, consistent with the investor recognition argument. Lastly, we find that the negative (positive) relation between dispersion and parent-level (subsidiary-level) misstatements is more pronounced for state-owned firms and for firms with a wider (narrower) control-ownership wedge.
Journal: European Accounting Review
Pages: 949-974
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2020.1719857
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1719857
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Handle: RePEc:taf:euract:v:29:y:2020:i:5:p:949-974




Template-Type: ReDIF-Article 1.0
Author-Name: Arnt O. Hopland
Author-X-Name-First: Arnt O.
Author-X-Name-Last: Hopland
Author-Name: Robert Ullmann
Author-X-Name-First: Robert
Author-X-Name-Last: Ullmann
Title: Pushing the Wrong Buttons: VAT Evasion by Misclassification of Meal Consumption Type
Abstract: 
 We use rich, micro-level tax return data for the entire population of small and medium-sized German restaurants and find empirical evidence that these firms employ the misclassification of meal consumption type as a VAT evasion strategy. Using difference-in-differences as well as triple-difference-in-differences specifications, we find that a ceteris paribus increase in the standard VAT rate significantly increases the declared sales volume of take-away consumption (reduced rate) relative to on-site consumption (standard rate), even though gross prices are customarily identical for both consumption types.
Journal: European Accounting Review
Pages: 975-997
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2019.1696690
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1696690
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Template-Type: ReDIF-Article 1.0
Author-Name: Marko Čular
Author-X-Name-First: Marko
Author-X-Name-Last: Čular
Author-Name: Sergeja Slapničar
Author-X-Name-First: Sergeja
Author-X-Name-Last: Slapničar
Author-Name: Tina Vuko
Author-X-Name-First: Tina
Author-X-Name-Last: Vuko
Title: The Effect of Internal Auditors’ Engagement in Risk Management Consulting on External Auditors’ Reliance Decision
Abstract: 
 We examine external auditors’ decisions to use the evidence or direct assistance of internal auditors when those auditors engage in consulting on enterprise risk management. Although such consulting provides value to an organization, it can also put the objectivity and independence of internal auditors at risk. We hypothesize that external auditors’ reliance on the internal audit function depends on the effectiveness of the audit committee monitoring the internal auditors’ activities. We also hypothesize that external auditors’ perception of the objectivity and independence of internal auditors mediates the reliance decision. We analyze these hypotheses using a 2 × 2 between-subjects design with 92 certified external auditors. Confirming the hypotheses, we find that external auditors’ reliance on the internal audit function is highest when the latter provides risk management consulting under the supervision of a strong audit committee. It is lower if the internal audit function provides only assurance (under either a weak or strong audit committee) and lowest if it provides consulting under a weak audit committee. The mediation analysis shows that the effect of audit committee effectiveness on the reliance decision is mediated by external auditors’ perception of internal auditors’ objectivity.
Journal: European Accounting Review
Pages: 999-1020
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2020.1723667
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1723667
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Chen
Author-X-Name-First: Jun
Author-X-Name-Last: Chen
Author-Name: Wang Dong
Author-X-Name-First: Wang
Author-X-Name-Last: Dong
Author-Name: Hongling Han
Author-X-Name-First: Hongling
Author-X-Name-Last: Han
Author-Name: Nan Zhou
Author-X-Name-First: Nan
Author-X-Name-Last: Zhou
Title: Does Audit Partner Workload Compression Affect Audit Quality?
Abstract: 
 The effect of workload compression on the behavior of individual auditors has received extensive attention from regulators and scholars. We study this effect by utilizing two unique institutional features of the Chinese capital market: (1) the auditor signature requirement that reveals audit partner identities and (2) the uniform December 31 fiscal year-end that intensifies workload compression for audit partners. Calculated based on audit fees, our new measure of audit partner workload compression (APWC) is negatively related to accruals quality and the probability of modified audit opinions, while positively associated with the propensity to report small profits and the prospect of audit report delays. Nevertheless, accounting firms and client firms with audit partners facing workload compression are not more likely to receive government sanctions. These findings imply that APWC impairs audit quality but not to the extent that it would lead to egregious outcomes. Our evidence supports the PCAOB call to monitor workloads for individual auditors.
Journal: European Accounting Review
Pages: 1021-1053
Issue: 5
Volume: 29
Year: 2020
Month: 10
X-DOI: 10.1080/09638180.2020.1726196
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1726196
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Handle: RePEc:taf:euract:v:29:y:2020:i:5:p:1021-1053




Template-Type: ReDIF-Article 1.0
Author-Name: Joanne Horton
Author-X-Name-First: Joanne
Author-X-Name-Last: Horton
Author-Name: Gilad Livne
Author-X-Name-First: Gilad
Author-X-Name-Last: Livne
Author-Name: Angela Pettinicchio
Author-X-Name-First: Angela
Author-X-Name-Last: Pettinicchio
Title: Empirical Evidence on Audit Quality under a Dual Mandatory Auditor Rotation Rule
Abstract: 
 Regulators in the US ruled against introducing mandatory firm rotations in addition to the existing rule for periodic partner rotations. In contrast, European regulators ruled in favor of a dual mandatory rotation rule in which both audit firm and audit partner rotations are required. Employing a unique setting where a dual regime of audit and firm rotations are required, we assess the net benefit (cost), of audit firm rotation incrementally to partner rotation. Specifically, we analyze several earnings-based measures of audit quality along with the market perception of audit quality. Controlling for partner rotation, we do not find that firm rotations have a positive incremental effect. In contrast, we find audit partner rotation under the dual regime appears to improve both the earnings-based measures of audit quality, and market perceptions of earnings. Our evidence suggests that any benefit arising from dual rotation is likely to be driven by the change in partner. However, whether the audit firm rotation should still be required is unclear, given that the observed benefits arising from the audit partner rotation could potentially be preconditioned on audit firm rotation.
Journal: European Accounting Review
Pages: 1-29
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638180.2020.1747513
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1747513
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Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Gómez-Carrasco
Author-X-Name-First: Pablo
Author-X-Name-Last: Gómez-Carrasco
Author-Name: Encarna Guillamón-Saorín
Author-X-Name-First: Encarna
Author-X-Name-Last: Guillamón-Saorín
Author-Name: Beatriz García Osma
Author-X-Name-First: Beatriz
Author-X-Name-Last: García Osma
Title: Stakeholders versus Firm Communication in Social Media: The Case of Twitter and Corporate Social Responsibility Information
Abstract: 
 Building on legitimacy theory and prior work on stakeholder management, we study firm Corporate Social Responsibility (CSR) communication in social media. In particular, we analyze the content of over a million microblogs on Twitter relating to CSR in the banking industry. We focus on key issues considered by banks in their CSR reports, which we classify into Core or Supplementary depending on their connection with core business activities. We find that the use of Twitter to communicate CSR information in social media suggests that significant differences exist between the information interests of companies and stakeholders. Outside stakeholders focus on Core CSR issues, whilst firm insiders are relatively more likely to communicate Supplementary CSR issues. Firm insiders’ information dissemination appears biased towards favorable information, and consistent with a legitimacy-based use of social media. Event studies conducted on dates with significant exogenous CSR news confirm the findings of ‘parallel’ talking, and no resemblance in the CSR issues communicated by firms and stakeholders in social media.
Journal: European Accounting Review
Pages: 31-62
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2019.1708428
File-URL: http://hdl.handle.net/10.1080/09638180.2019.1708428
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Template-Type: ReDIF-Article 1.0
Author-Name: Robyn Moroney
Author-X-Name-First: Robyn
Author-X-Name-Last: Moroney
Author-Name: Soon-Yeow Phang
Author-X-Name-First: Soon-Yeow
Author-X-Name-Last: Phang
Author-Name: Xinning Xiao
Author-X-Name-First: Xinning
Author-X-Name-Last: Xiao
Title: When Do Investors Value Key Audit Matters?
Abstract: 
 While prior studies have considered the effect of the enhanced auditor’s report (EAR) on a range of auditor, management and investors’ judgments, we consider whether the inclusion of key audit matters (KAMs) in the EAR affects investor perceptions of the value of the audit as well as the credibility of the auditor. These are important issues linked to the rationale for the introduction of the EAR. As prior studies have demonstrated that audit firm size affects investor perceptions across a range of measures, we predict that the link between KAMs (absent versus present) and investor perceptions around value and credibility is affected by audit firm size. We find that the inclusion of KAMs improves perceived value and credibility only when a Non-Big 4 firm conducts the audit. When a Big 4 firm conducts the audit, perceived value and credibility are high whether KAMs are included or not. We also find that perceived credibility mediates the joint effect of KAMs and audit firm size on the perceived value of the audit. In additional analysis, we find that the inclusion of KAMs draws investors’ attention to new and expanded messages, taking their attention away from messages considered core to the audit report.
Journal: European Accounting Review
Pages: 63-82
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2020.1733040
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1733040
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Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Kang Chen
Author-X-Name-First: Tsung-Kang
Author-X-Name-Last: Chen
Author-Name: Yijie Tseng
Author-X-Name-First: Yijie
Author-X-Name-Last: Tseng
Title: Readability of Notes to Consolidated Financial Statements and Corporate Bond Yield Spread
Abstract: 
 We examine the association between the readability of ‘Notes to consolidated financial statements’ (Notes) in annual reports and corporate bond yield spread. We find that less readable narrative disclosure of Notes is significantly associated with greater bond yield spread. In addition, the association becomes stronger for firms in high-tech sectors or those with higher equity volatility, whereas it becomes weaker for firms with higher profitability or those with the reporting location of Notes being outside of the 10-K format file. We also provide evidence that Notes readability is helpful in explaining the puzzle of a positive yield spread always appearing when the bond approaches its maturity in practice. Overall, our results suggest that the Notes readability has a substantial association with bond yield spread and its term structure.
Journal: European Accounting Review
Pages: 83-113
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2020.1740099
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1740099
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Handle: RePEc:taf:euract:v:30:y:2021:i:1:p:83-113




Template-Type: ReDIF-Article 1.0
Author-Name: Slobodan Kacanski
Author-X-Name-First: Slobodan
Author-X-Name-Last: Kacanski
Author-Name: Dean Lusher
Author-X-Name-First: Dean
Author-X-Name-Last: Lusher
Author-Name: Peng Wang
Author-X-Name-First: Peng
Author-X-Name-Last: Wang
Title: Auditor Selection Process: An Interplay of Demand Mechanisms – A Multilevel Network Approach
Abstract: 
 Studies on demand side mechanisms related to experience goods argue that demand is driven by recommendation and reputation. In an auditing context, research showed that both of these mechanisms play an important role in determining partner selection, however, only when the mechanisms are observed in isolation. On this basis, this study raises a concern about whether the mechanisms are mutually exclusive, and if not, how does recommendation and reputation in auditor selection context create an interplay in the process of auditor selection. We test our hypotheses on network data of Danish public companies. Findings from the social network study indicate that auditor selection is a sensitive and complex task for boards of directors, as it is not only driven by either of the mechanisms. Rather, partner selection is driven by the combination of both recommendation and reputation, which creates the interplay and, thus, indicates that the demand mechanisms are not mutually exclusive and should not be observed in isolation of one another.
Journal: European Accounting Review
Pages: 115-142
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2020.1740755
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1740755
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Handle: RePEc:taf:euract:v:30:y:2021:i:1:p:115-142




Template-Type: ReDIF-Article 1.0
Author-Name: Yifei Xia
Author-X-Name-First: Yifei
Author-X-Name-Last: Xia
Author-Name: Jun Han
Author-X-Name-First: Jun
Author-X-Name-Last: Han
Title: The Effects of Table Versus Formula Presentation Formats on Investors’ Judgment about Executive Compensation
Abstract: 
 We investigate how the data presentation format of executive compensation disclosures affects investors’ compensation- and investment-related judgment and decisions. We examine the effects of these formats and their underlying mechanisms via laboratory experiments. We compare bonus schemes presented in the table and formula formats and find an interaction effect between data presentation format and compensation favorability. When a manager receives unfavorable compensation due to missed performance targets, the table format is easier to understand than the formula format, whereas the latter appears more scientific than the former. These two effects work in opposite directions and therefore, result in an insignificant difference in approval ratings when the table, versus the formula, format is used. However, when the manager receives favorable compensation for beating performance targets, investors do not pay much attention to the disclosure’s understandability but still favor the formula format, as it has a scientific appearance. Therefore, we find that investors’ approval ratings are higher when using the formula format than the table format. We contribute to several research areas such as information understandability, the halo effect, compensation disclosures, and shareholder voting. Our findings also have practical implications for both managers and investors.
Journal: European Accounting Review
Pages: 143-173
Issue: 1
Volume: 30
Year: 2021
Month: 01
X-DOI: 10.1080/09638180.2020.1741419
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1741419
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Template-Type: ReDIF-Article 1.0
Author-Name: Hien Hoang
Author-X-Name-First: Hien
Author-X-Name-Last: Hoang
Author-Name: Soon-Yeow Phang
Author-X-Name-First: Soon-Yeow
Author-X-Name-Last: Phang
Title: How Does Combined Assurance Affect the Reliability of Integrated Reports and Investors’ Judgments?
Abstract: 
 As integrated reports evolve to meet the needs of stakeholders, it is increasingly important to establish reliable information. We examine the effect of a new technique to enhance the reporting reliability, referred to as ‘combined assurance’ (through which the audit committee coordinates the assurance roles of management, internal assurance and external assurance providers and concludes on the effectiveness of risk management, internal controls and reporting quality), on restoring investors’ willingness to invest when there are significant reporting reliability risks. We conduct a series of experiments with different operationalizations of reporting reliability risks. We find that the communication of combined assurance can restore investors’ perceived reliability of reported information and willingness to invest when there is bad news (Experiment 1); when there is a non-financial key audit matter (KAM) indicating estimation uncertainty in the non-financial information (Experiment 2); and when there is a financial KAM indicating risks of manipulated financial reporting (Experiment 3). Our study has implications for practitioners, standard setters, and regulators who are exploring possible mechanisms to enhance the reliability of financial and non-financial information in the integrated reports.
Journal: European Accounting Review
Pages: 175-195
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2020.1745659
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1745659
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Template-Type: ReDIF-Article 1.0
Author-Name: Kai Chen
Author-X-Name-First: Kai
Author-X-Name-Last: Chen
Title: Press Release Management around Accelerated Share Repurchases
Abstract: 
 Accelerated share repurchases (ASRs) have gained popularity in recent years. At the inception of an ASR, a firm receives most of the shares that would be repurchased at the current stock price. At the completion of the ASR, the repurchase price is adjusted to the average stock price during the ASR contract period. I find that managers increase the media coverage of negative press releases before the inception date but not during the contract period. While prior research has documented that managers deflate stock prices before open market repurchase announcements to reduce subsequent repurchase prices, this paper suggests that, in ASRs, managers rank accelerating share delivery higher than reducing the repurchase price.
Journal: European Accounting Review
Pages: 197-222
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2020.1756885
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1756885
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Handle: RePEc:taf:euract:v:30:y:2021:i:1:p:197-222




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Thank you to Associate Editors, Editorial Board Members, Ad hoc Associate Editors, Guest Editors, and Reviewers 2020
Journal: European Accounting Review
Pages: 222-235
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2021.1880631
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1880631
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Handle: RePEc:taf:euract:v:30:y:2021:i:1:p:222-235




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Thank you to Associate Editors, Editorial Board Members, Ad hoc Associate Editors, Guest Editors, and Reviewers 2020
Journal: European Accounting Review
Pages: 225-238
Issue: 1
Volume: 30
Year: 2021
Month: 1
X-DOI: 10.1080/09638180.2021.1880631
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1880631
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Template-Type: ReDIF-Article 1.0
Author-Name: Pepa Kraft
Author-X-Name-First: Pepa
Author-X-Name-Last: Kraft
Author-Name: Wayne R. Landsman
Author-X-Name-First: Wayne R.
Author-X-Name-Last: Landsman
Author-Name: Zilu Shan
Author-X-Name-First: Zilu
Author-X-Name-Last: Shan
Title: Effect of Mandatory IFRS Adoption on Accounting-Based Prediction Models for CDS Spreads
Abstract: 
 In this study, we examine the effects of mandatory IFRS adoption on accounting-based prediction models of CDS spreads for a sample of 292 firms in 16 countries. In our examination, we estimate the models for both financial and nonfinancial firms before and after mandatory IFRS adoption. We find that mean and median absolute percentage prediction errors are larger for both financial and non-financial firms after mandatory IFRS adoption. We also estimate accounting-based prediction models of CDS spreads separately for financial and non-financial US firms as a benchmark. Although US firms also show an increase in the mean and median absolute percentages of prediction errors over the same period, our findings from regressions that use a difference-in-difference design indicate that the increase is significantly greater for firms in countries that adopted IFRS mandatorily. We also find that in the post-adoption period, prediction errors are larger for firms in countries with weaker institutions such as low levels of property rights and more restrictive access to credit.
Journal: European Accounting Review
Pages: 223-250
Issue: 2
Volume: 30
Year: 2021
Month: 3
X-DOI: 10.1080/09638180.2020.1760116
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1760116
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Template-Type: ReDIF-Article 1.0
Author-Name: Martin Carlsson-Wall
Author-X-Name-First: Martin
Author-X-Name-Last: Carlsson-Wall
Author-Name: Lukas Goretzki
Author-X-Name-First: Lukas
Author-X-Name-Last: Goretzki
Author-Name: Kalle Kraus
Author-X-Name-First: Kalle
Author-X-Name-Last: Kraus
Author-Name: Johnny Lind
Author-X-Name-First: Johnny
Author-X-Name-Last: Lind
Title: Exploring the Role of Management Control Anchor Practices in new Product Development
Abstract: 
 This paper shows how certain management controls become more guiding than others in the management of new product development (NPD). We detail how the opportunity space within which managers maneuver NPD can be underpinned by a hierarchically arranged management control infrastructure governed by management control anchor practices that enable ‘anchored prioritizations’ through which some concerns become ‘more important’ than others. As the anchor practice in our case was an integrative liaison device, we also contribute to research that emphasizes the use of social controls in NPD settings. As management control anchor practice, integrative liaison devices can go beyond the ‘pure’ sharing and integration of knowledge and play a crucial role in framing accountability-induced conflicts and negotiations. We also contribute to the notion of management control anchor practices by considering the dynamics between a constitutive rule and the strategies used to enact it. Management control anchor practices play a crucial role in the light of ‘conservative dynamism’ where strategies through which a constitutive rule is enacted are constantly adjusted. A key role of a management control anchor practice hereby is to avoid the emergence of a state of excessive proliferation where strategies are formed merely based on opportunism or short-term contingencies.
Journal: European Accounting Review
Pages: 251-276
Issue: 2
Volume: 30
Year: 2021
Month: 03
X-DOI: 10.1080/09638180.2020.1763187
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1763187
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Template-Type: ReDIF-Article 1.0
Author-Name: Lili Dai
Author-X-Name-First: Lili
Author-X-Name-Last: Dai
Author-Name: Phong Ngo
Author-X-Name-First: Phong
Author-X-Name-Last: Ngo
Title: Political Uncertainty and Accounting Conservatism
Abstract: 
 Political uncertainty leads to greater information asymmetry among contracting parties to the firm, resulting in an increased demand for accounting conservatism. Exploiting the exogenous variation in political uncertainty induced by the U.S. gubernatorial election cycle over the period 1963–2016, we find that the asymmetric timeliness of news recognition increases with political uncertainty. Our political uncertainty hypothesis operates through the contracting demand channel. Accordingly, we find that the political uncertainty effect is more pronounced for firms in states with lower electoral participation, for firms with greater industry exposures to contracting needs, for firms with higher leverage and lower managerial ownership, and for firms with stronger internal corporate governance mechanisms.
Journal: European Accounting Review
Pages: 277-307
Issue: 2
Volume: 30
Year: 2021
Month: 03
X-DOI: 10.1080/09638180.2020.1760117
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1760117
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Handle: RePEc:taf:euract:v:30:y:2021:i:2:p:277-307




Template-Type: ReDIF-Article 1.0
Author-Name: Stéphanie Mittelbach-Hörmanseder
Author-X-Name-First: Stéphanie
Author-X-Name-Last: Mittelbach-Hörmanseder
Author-Name: Katrin Hummel
Author-X-Name-First: Katrin
Author-X-Name-Last: Hummel
Author-Name: Margarethe Rammerstorfer
Author-X-Name-First: Margarethe
Author-X-Name-Last: Rammerstorfer
Title: The information content of corporate social responsibility disclosure in Europe: an institutional perspective
Abstract: 
 This study examines how firm value (measured via stock prices) is related to corporate social responsibility (CSR) disclosure and how the institutional environment influences this relationship. To test our hypotheses, we apply textual analysis to our data on firms listed in the STOXX Europe 600 for the period 2008–2016. Our investigation of topic-specific CSR disclosure indicates that when firms shifted from voluntary to mandatory reporting, following the announcement of Directive 2014/95/EU, the association between their share price and CSR disclosure became significantly negative. For the period before the announcement, this relationship is either positive or statistically insignificant. We also show that the institutional environment can impact this relationship in four distinct ways: the level of CSR awareness, the level of employee protection, the degree of enforcement and the strength of the legal environment. We find that the first two have a negative impact on the incremental value relevance of specific CSR disclosure, whereas the last two have a positive impact. Lastly, our results also indicate that the magnitude of (a) the relationship between a firm’s CSR disclosure and its value and (b) the impact that the firm’s institutional environment has on this relationship depends on the specific CSR topics.
Journal: European Accounting Review
Pages: 309-348
Issue: 2
Volume: 30
Year: 2021
Month: 3
X-DOI: 10.1080/09638180.2020.1763818
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1763818
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Handle: RePEc:taf:euract:v:30:y:2021:i:2:p:309-348




Template-Type: ReDIF-Article 1.0
Author-Name: Michael J. Jones
Author-X-Name-First: Michael J.
Author-X-Name-Last: Jones
Author-Name: Andrea Melis
Author-X-Name-First: Andrea
Author-X-Name-Last: Melis
Title: The Continuity of the Board of Statutory Auditors Across Social, Economic and Political Institutional Changes
Abstract: 
 This study examines how and why the board of statutory auditors, an important accounting institution, has continued to operate from its establishment in 1882 until today, with little change in its nature and role. This is despite the fundamental changes that have occurred in the Italian social, economic and political environment. This study reveals that even though Italy’s societal institutions have substantially changed, the board of statutory auditors has continued to exist, with no material change in its nature, across different historical blocs, such as monarchy, fascism, post-war socio-democratic republic, neoliberal republic, and major changes in Italian politics and economy. This long-lived accounting institution has also faced a series of potentially significant sources of change, which appeared dramatic at first sight, but had no significant far-reaching historical impact, as hegemony was unaffected. In Italian society, the board of statutory auditors has provided a reassurance role, in principle this is to monitor company directors, a role which is perceived to benefit all society. However, in practice, this institution has provided a legitimating, rather than a substantive monitoring mechanism. It helped to exercise the ruling class’ hegemonic control, whose power was diffused across society through civil institutions during various historical blocs.
Journal: European Accounting Review
Pages: 349-380
Issue: 2
Volume: 30
Year: 2021
Month: 3
X-DOI: 10.1080/09638180.2020.1761850
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1761850
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Handle: RePEc:taf:euract:v:30:y:2021:i:2:p:349-380




Template-Type: ReDIF-Article 1.0
Author-Name: Zhenhua Chen
Author-X-Name-First: Zhenhua
Author-X-Name-Last: Chen
Author-Name: Deen Kemsley
Author-X-Name-First: Deen
Author-X-Name-Last: Kemsley
Author-Name: Padmakumar Sivadasan
Author-X-Name-First: Padmakumar
Author-X-Name-Last: Sivadasan
Title: The Comprehensive Tax Gain from Leverage
Abstract: 
 We expand the traditional specification of the tax gain from leverage by accounting for the choice between issuing debt and utilizing internal retained earnings equity. Standard analyses focus solely on the choice between debt and external equity. This results in the traditional tax gain from leverage, which equals the corporate tax benefit from debt minus the partially offsetting personal tax disadvantage. Expanding the debt analysis to include internal equity introduces a third tax component to the gain from leverage: a supplemental personal tax disadvantage. This supplemental disadvantage reflects the personal tax cost of distributing internally-generated equity to investors and using replacement debt. It reduces the overall or comprehensive tax gain from leverage and frequently converts it into a tax loss. Therefore, using debt often is costlier than generally assumed. We provide conceptual support for the comprehensive tax gain, plus some initial empirical support.
Journal: European Accounting Review
Pages: 381-403
Issue: 2
Volume: 30
Year: 2021
Month: 3
X-DOI: 10.1080/09638180.2020.1761851
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1761851
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Handle: RePEc:taf:euract:v:30:y:2021:i:2:p:381-403




Template-Type: ReDIF-Article 1.0
Author-Name: MD Al Mamun
Author-X-Name-First: MD
Author-X-Name-Last: Al Mamun
Author-Name: Balasingham Balachandran
Author-X-Name-First: Balasingham
Author-X-Name-Last: Balachandran
Author-Name: Huu Nhan Duong
Author-X-Name-First: Huu Nhan
Author-X-Name-Last: Duong
Author-Name: Ferdinand A Gul
Author-X-Name-First: Ferdinand A
Author-X-Name-Last: Gul
Title: Are Corporate General Counsels in Top Management Effective Monitors? Evidence from Stock Price Crash Risk
Abstract: 
 We find that firms with a top management counsel (TMC) have lower stock price crash risk than other firms. We further show that firms with a TMC issue more negative relative to positive earnings guidance and use more negative relative to positive words in their annual report filings, compared to firms without a TMC. TMCs are more effective in mitigating crash risk when they serve on the board. Our findings support the monitoring role of TMCs in mitigating bad news hoarding, which, in turn, contributes to the reduction in crash risk.
Journal: European Accounting Review
Pages: 405-437
Issue: 2
Volume: 30
Year: 2021
Month: 3
X-DOI: 10.1080/09638180.2020.1763819
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1763819
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Template-Type: ReDIF-Article 1.0
Author-Name: Georg Loscher
Author-X-Name-First: Georg
Author-X-Name-Last: Loscher
Author-Name: Lukas Löhlein
Author-X-Name-First: Lukas
Author-X-Name-Last: Löhlein
Author-Name: Hansrudi Lenz
Author-X-Name-First: Hansrudi
Author-X-Name-Last: Lenz
Title: Dual Roles and Blurred Identities: A Framing Contest between Professional Associations in a Local Strategic Action Field
Abstract: 
 This paper examines professional associations’ local responses to global demands of accounting standardisation. Our longitudinal study from 1998 to 2018 analyses how professional associations of the German audit profession engaged in an intense framing contest over the adoption of external quality controls. Drawing on the concept of strategic action field and the literature on framing, we unpack how the gap between large audit firms and small audit firms increasingly undermined the capacity of the professional associations to fulfil their dual role of governance and representation. We unveil how their failed attempt to maintain the image of an unified profession ultimately led to the creation of a new professional association representing the ‘small auditor’ professional, which successfully, albeit temporarily, took control over the field of German auditing. Our findings suggest that the passivity of small audit firms in the process of translating global regulatory regimes should not be presumed. Rather, we provide insight into how small audit firms can rebuild their own identity by actively responding to waves of global regulation. Doing so, and contrary to prior research, our case highlights that governance units within strategic action fields are not necessarily aligned with the interests of the most powerful field actors.
Journal: European Accounting Review
Pages: 503-529
Issue: 3
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638180.2021.1882319
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1882319
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Template-Type: ReDIF-Article 1.0
Author-Name: George Salijeni
Author-X-Name-First: George
Author-X-Name-Last: Salijeni
Author-Name: Anna Samsonova-Taddei
Author-X-Name-First: Anna
Author-X-Name-Last: Samsonova-Taddei
Author-Name: Stuart Turley
Author-X-Name-First: Stuart
Author-X-Name-Last: Turley
Title: Understanding How Big Data Technologies Reconfigure the Nature and Organization of Financial Statement Audits: A Sociomaterial Analysis
Abstract: 
 This study focuses on the recent development in audit technologies, i.e., the rise of Big Data and Analytics (BDA) tools, and how auditors make use of them in audits. While prior audit studies have acknowledged that audit technologies shape and re-construct the market for audit services, they have not devoted much attention to the performative nature of such technologies and how their properties may shape the dynamics of technological change. Drawing on sociomateriality literature as well as observations, documentary materials and 25 semi-structured interviews with individuals directly engaging with BDA, this study explores how BDA users interact with particular properties of the technology in the course of an audit. We then consider how these interactions reconfigure aspects of the audit process and change the relational dynamics within audit firms. In particular, our findings suggest that properties of BDA such as scripts have afforded large-scale automation of audit routines, generating opportunities for expanding the evidential scope and depth of audit work. Further, we also show how the visualization dashboards have contributed to auditors’ ability to communicate and justify their claims and judgements. Finally, we demonstrate that BDA has reshaped the nature of work relationships and flows between audit firms’ different functions and service lines.
Journal: European Accounting Review
Pages: 531-555
Issue: 3
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638180.2021.1882320
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1882320
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Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Humphrey
Author-X-Name-First: Christopher
Author-X-Name-Last: Humphrey
Author-Name: Amanda Sonnerfeldt
Author-X-Name-First: Amanda
Author-X-Name-Last: Sonnerfeldt
Author-Name: Naoko Komori
Author-X-Name-First: Naoko
Author-X-Name-Last: Komori
Author-Name: Emer Curtis
Author-X-Name-First: Emer
Author-X-Name-Last: Curtis
Title: Audit and the Pursuit of Dynamic Repair
Abstract: 
 Is audit capable of evolving into something that is more consistently valued and socially purposeful? We address this fundamental question, utilizing Sennett’s (2008). The Craftsman. New Haven: Yale University Press) notion of ‘dynamic repair’ to present four key ways of thinking differently about the statutory financial audit and its core conceptual foundations. First, we highlight the capacity for audit to be regarded as a first-order function of value in its own right rather than a second-order function inherently dependent on corporate financial statements. Second, we call for a change in the assumed relationship between audit and assurance, arguing that assurance should be treated as a sub-set of audit rather than the other way round. Third, we consider the scope for audit standard setting to provide a space for ‘product’ innovation. Finally, we advocate moving beyond presumptions that the current statutory financial audit serves ‘the public interest’ to asking deeper questions about the type of society we want to inhabit and whether audit has a more direct and valued contribution to make. Collectively, such re-conceptualizations offer a broader canvas for audit innovation and can help to sustain the promise of current audit reform initiatives proposed by the Brydon Report and others.
Journal: European Accounting Review
Pages: 445-471
Issue: 3
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638180.2021.1919539
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1919539
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Handle: RePEc:taf:euract:v:30:y:2021:i:3:p:445-471




Template-Type: ReDIF-Article 1.0
Author-Name: Dominic Detzen
Author-X-Name-First: Dominic
Author-X-Name-Last: Detzen
Author-Name: Marlies De Vries
Author-X-Name-First: Marlies
Author-X-Name-Last: De Vries
Author-Name: Annie Wong
Author-X-Name-First: Annie
Author-X-Name-Last: Wong
Title: Young Professionals and the Institute: Giving a Voice to the Next Generation of Accountants?
Abstract: 
 This paper offers insights into the accounting profession’s recent trend of establishing young-professionals boards. Our study uses rich fieldwork data to provide an in-depth analysis of how a committee of young accountants (the Young Profs), embedded in the Dutch professional institute, attempts to achieve relevance in professional debates. Taking two distinct perspectives, we first study how the committee’s position in the professional institute affects the development of agency, following which we assay the committee’s complex deliberation processes. We illustrate how the relationship between the professional institute and our focal committee is lopsided, in that, despite the Young Profs’ formal embeddedness and eagerness to partake in professional debates, the group is unable to use its social position as a platform for agency. We further show how the committee struggles to create shared intentionality among its diverse set of members, which likewise limits the group’s effectiveness. The study extends our understanding of the relations between early-career accountants and professional institutes; it also sheds light on the complex deliberations a committee undertakes when aspiring to attain significance in professional debates.
Journal: European Accounting Review
Pages: 557-582
Issue: 3
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638180.2021.1878921
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1878921
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Template-Type: ReDIF-Article 1.0
Author-Name: Merridee L Bujaki
Author-X-Name-First: Merridee L
Author-X-Name-Last: Bujaki
Author-Name: Sylvain Durocher
Author-X-Name-First: Sylvain
Author-X-Name-Last: Durocher
Author-Name: François Brouard
Author-X-Name-First: François
Author-X-Name-Last: Brouard
Author-Name: Leighann C. Neilson
Author-X-Name-First: Leighann C.
Author-X-Name-Last: Neilson
Title: Conflicting Accounts of Inclusiveness in Accounting Firm Recruitment Website Photographs
Abstract: 
 In response to this special issue’s focus on new directions in auditing research, specifically its call for more analysis on the ‘real’ impact of inclusion discourses within the accounting profession, this paper critically interprets representations of gender and ethnic diversity in accounting firms’ recruitment photographs using a critical visual methodology. We analyze photographs from the recruitment websites of public accounting firms for depictions of gender and ethnic inclusiveness using a Barthesian approach. We analyze and interpret the denotative and connotative content of 1493 photographs and connotatively interpret the text and photographs in two particularly salient recruitment documents using critical semiotics. We find women (non-white individuals) make up approximately half (one quarter) of the people depicted, roughly matching trends in the population. However, women and non-white individuals are frequently depicted in subordinate roles. While they are denotatively ‘present’ in recruitment photographs, they are constructed connotatively as ‘other’ in public accounting, consistent with hegemony. Women and non-white individuals are generally constructed as outsiders, despite their numerical presence in the photographs. Accounting firms should be aware of various possible connotative interpretations of their photographs, as these interpretations may conflict with the accounts with respect to diversity and inclusion conveyed in photographs’ denotative content.
Journal: European Accounting Review
Pages: 473-501
Issue: 3
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638180.2020.1786420
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1786420
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Handle: RePEc:taf:euract:v:30:y:2021:i:3:p:473-501




Template-Type: ReDIF-Article 1.0
Author-Name: Bertrand Malsch
Author-X-Name-First: Bertrand
Author-X-Name-Last: Malsch
Author-Name: Brendan O’Dwyer
Author-X-Name-First: Brendan
Author-X-Name-Last: O’Dwyer
Title: New Directions in Auditing Research: Conceptual Repair, Technological Disruption(s), Local Professional Governance and the Battle for Inclusivity
Journal: European Accounting Review
Pages: 439-444
Issue: 3
Volume: 30
Year: 2021
Month: 05
X-DOI: 10.1080/09638180.2021.1924813
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1924813
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Handle: RePEc:taf:euract:v:30:y:2021:i:3:p:439-444




Template-Type: ReDIF-Article 1.0
Author-Name: Victoria A. Obeng
Author-X-Name-First: Victoria A.
Author-X-Name-Last: Obeng
Author-Name: Kamran Ahmed
Author-X-Name-First: Kamran
Author-X-Name-Last: Ahmed
Author-Name: Steven F. Cahan
Author-X-Name-First: Steven F.
Author-X-Name-Last: Cahan
Title: Integrated Reporting and Agency Costs: International Evidence from Voluntary Adopters
Abstract: 
 We examine whether the practice of integrated reporting (IR) can reduce agency problems between managers and investors, resulting in lower agency costs. We construct a sample of firms that voluntarily use IR in practice, drawn from 35 countries, and find that firms that apply IR practice more extensively (high IR firms) are associated with lower levels of agency costs and more negative year-to-year changes in agency costs compared to other IR firms (low IR firms). We also find that the relation between the level of IR practice and agency costs is more negative in countries with a stakeholder orientation than in countries with a shareholder orientation. Additionally, the effectiveness of IR is more pronounced in diversified firms that face greater agency problems. Our results are robust in a series of additional tests that address endogeneity. Overall, our evidence is consistent with IR having a disciplining role for managers.
Journal: European Accounting Review
Pages: 645-674
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1805342
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1805342
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Handle: RePEc:taf:euract:v:30:y:2021:i:4:p:645-674




Template-Type: ReDIF-Article 1.0
Author-Name: David A. Maber
Author-X-Name-First: David A.
Author-X-Name-Last: Maber
Author-Name: Boris Groysberg
Author-X-Name-First: Boris
Author-X-Name-Last: Groysberg
Author-Name: Paul M. Healy
Author-X-Name-First: Paul M.
Author-X-Name-Last: Healy
Title: An Empirical Examination of Sell-Side Brokerage Analysts’ Published Research, Concierge Services, and High-Touch Services
Abstract: 
 This paper uses a proprietary panel dataset to categorize and quantify the activities that sell-side brokerage analysts use to build and sustain their network of buy-side client relations. We then examine the marginal impact of these activities on key analyst outcome metrics identified by prior literature. Our findings highlight the importance of two previously unstudied client-service activities – high-touch phone calls and non-deal road shows – and suggest that analysts may face a tradeoff between producing accurate earnings research and increasing the values of key performance measures that gauge the strength of their network of client relations.
Journal: European Accounting Review
Pages: 827-853
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1792322
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1792322
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Template-Type: ReDIF-Article 1.0
Author-Name: David Windisch
Author-X-Name-First: David
Author-X-Name-Last: Windisch
Title: Enforcement, Managerial Discretion, and the Informativeness of Accruals
Abstract: 
 I examine the effect of strengthening the enforcement of financial reporting on managers’ accrual decisions and the consequences for the informativeness of accruals. Using a sample of publicly listed German firms subject to a substantive enforcement change in 2005, I find that, consistent with the prior literature, the extent of managerial discretion in accruals declined after the introduction of the stricter enforcement regime. However, the findings on the predictive ability of accruals with respect to future cash flows and future earnings and the contemporaneous association between stock returns and accruals suggest that the informativeness of accruals also declined after the introduction of the stricter enforcement regime. This adverse effect is particularly strong when compared with a control group of publicly listed firms in Austria and Switzerland that operated in a similar institutional and economic environment but faced no substantive enforcement change. Overall, the findings suggest that stricter enforcement can have adverse consequences in the form of lower accrual informativeness.
Journal: European Accounting Review
Pages: 705-732
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1771393
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1771393
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Handle: RePEc:taf:euract:v:30:y:2021:i:4:p:705-732




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Simons
Author-X-Name-First: Robert
Author-X-Name-Last: Simons
Author-Name: Antonio Dávila
Author-X-Name-First: Antonio
Author-X-Name-Last: Dávila
Title: How Top Managers Use the Entrepreneurial Gap to Drive Strategic Change
Abstract: 
 Prior research provides strong evidence for the association between business strategy and the design and use of management control systems. We complement this research by examining the role of management control systems in situations of strategic change. We report the results of an in-depth longitudinal field study of Henkel, a German multinational company, from 2008 through 2013. During this period, the company declared a new strategy. To implement this strategy, senior management purposefully misaligned span of control and span of accountability – labeled the entrepreneurial gap – to stimulate individual initiative and higher levels of performance. Our description of how top managers enacted change suggests a strong relationship between management control systems, organizational structure, and cultural norms that together support desired outcomes. In addition, we provide evidence on the timing and sequencing of actions by top management. By the end of our study period, Henkel was a top performer in its various markets and was leading the German blue-chip index in stock returns.
Journal: European Accounting Review
Pages: 583-609
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1792959
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1792959
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Handle: RePEc:taf:euract:v:30:y:2021:i:4:p:583-609




Template-Type: ReDIF-Article 1.0
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Author-Name: Yining Chen
Author-X-Name-First: Yining
Author-X-Name-Last: Chen
Author-Name: Baohua Liu
Author-X-Name-First: Baohua
Author-X-Name-Last: Liu
Title: The Linear and Non-Linear Effects of Internal Control and Its Five Components on Corporate Innovation: Evidence from Chinese Firms Using the COSO Framework
Abstract: 
 This study examines the impact of internal control and its five components on corporate innovation using the Committee of Sponsoring Organizations (COSO) framework with a sample of Chinese firms. The impact of the internal control system as a whole, as well as the impact of the five components of internal control individually (i.e. control environment, risk assessment, control activities, information & communication, and monitoring), are analyzed. Our results suggest that internal control, as an integrated system, has significant positive impact on firm innovation, as measured by patent applications. We document that the magnitude of impact on innovation varies across different subcategories (components) of internal control, with control environment, control activities, and information & communication components exhibiting stronger impacts on innovation than those of risk assessment and monitoring components. In addition, we find that a high level of control environment, control activities, and information & communication (risk assessment and monitoring) components have a stronger (weaker) impact on innovation compared to a low level.
Journal: European Accounting Review
Pages: 733-765
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1776626
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1776626
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Template-Type: ReDIF-Article 1.0
Author-Name: Hongwen Han
Author-X-Name-First: Hongwen
Author-X-Name-Last: Han
Author-Name: Jiali Jenna Tang
Author-X-Name-First: Jiali Jenna
Author-X-Name-Last: Tang
Author-Name: Qingquan Tang
Author-X-Name-First: Qingquan
Author-X-Name-Last: Tang
Title: Goodwill Impairment, Securities Analysts, and Information Transparency
Abstract: 
 The transition from amortization to the impairment-only approach in IFRS 3 and CAS 8 (China's accounting standards) increased managerial discretion when estimating goodwill impairment write-offs, leading to potential earnings management. We assess whether and how managers manipulate goodwill impairment under the influence of analyst coverage in China. Securities analysts serve as external monitors, deterring managers from avoiding goodwill impairment recognition, but analysts might also pressure managers, resulting in understated goodwill impairment and inflated earnings. Using a unique sample of listed firms in China, we find that analyst coverage associates negatively with goodwill impairment, consistent with pressuring from securities analysts. Additionally, the pressure is driven by optimistic forecasts and is more likely to encourage impairment manipulation than real earnings management. We further find that the relationship is weakened in more transparent information environments, measured by firm size, audit quality, and disclosure ratings. Findings are consistent after controlling for potential endogeneity.
Journal: European Accounting Review
Pages: 767-799
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1791725
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1791725
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Handle: RePEc:taf:euract:v:30:y:2021:i:4:p:767-799




Template-Type: ReDIF-Article 1.0
Author-Name: Jaeyoon Yu
Author-X-Name-First: Jaeyoon
Author-X-Name-Last: Yu
Author-Name: Byungjin Kwak
Author-X-Name-First: Byungjin
Author-X-Name-Last: Kwak
Author-Name: Myung Seok Park
Author-X-Name-First: Myung Seok
Author-X-Name-Last: Park
Author-Name: Yoonseok Zang
Author-X-Name-First: Yoonseok
Author-X-Name-Last: Zang
Title: The Impact of CEO/CFO Outside Directorships on Auditor Selection and Audit Quality
Abstract: 
 We examine whether outside directorships of chief executive officer/chief financial officer (CEO/CFO) and resulting network ties to auditors affect auditor selection decisions and subsequent audit quality. The network ties arise when the CEO/CFO of a firm (home firm) serves as an outside director of another firm that hires an auditor (connected auditor). Using a sample of firms that switch auditors in the post-Sarbanes-Oxley Act period, we find that home firms are more likely to appoint connected auditors. We also find that home firms hiring connected auditors experience a significant decline in subsequent audit quality, compared to those hiring non-connected auditors. Specifically, the increases in the likelihood of misstatements, the magnitude of absolute discretionary accruals, and the propensity to meet or beat earnings benchmarks after home firms appoint connected auditors are significantly greater, compared to those for other firms switching to non-connected auditors. We further find that the decline in audit quality is more pronounced when the network is established at the local office level.
Journal: European Accounting Review
Pages: 611-643
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1807381
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1807381
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Template-Type: ReDIF-Article 1.0
Author-Name: Emily Barman
Author-X-Name-First: Emily
Author-X-Name-Last: Barman
Author-Name: Matthew Hall
Author-X-Name-First: Matthew
Author-X-Name-Last: Hall
Author-Name: Yuval Millo
Author-X-Name-First: Yuval
Author-X-Name-Last: Millo
Title: Demonstrating Value: How Entrepreneurs Design New Accounting Methods to Justify Innovations
Abstract: 
 An important activity of entrepreneurs is to justify the value of an innovation to gain support from stakeholders. We examine how entrepreneurs can develop an accounting methodology to demonstrate the value of a proposed innovation, focusing on the case of a charitable foundation’s promotion of social enterprise and its efforts to develop the accounting methodology of Social Return on Investment (SROI). We show how the process for designing new accounting methods that helps in demonstrating the value of innovations involves entrepreneurs (1) imagining the expectations of their stakeholders (2) putting in place the necessary infrastructure through which numbers can be generated and (3) iteratively reconfiguring the accounting methodology and the espoused value the innovation is expected to generate. Our study furthers understanding of the role of accounting numbers in the entrepreneurial process, particularly in situations where entrepreneurs seek to generate new accounting methodologies to develop persuasive stories about the benefits of their innovations.
Journal: European Accounting Review
Pages: 675-704
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1770113
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1770113
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Template-Type: ReDIF-Article 1.0
Author-Name: Fani Kalogirou
Author-X-Name-First: Fani
Author-X-Name-Last: Kalogirou
Author-Name: Paraskevi Vicky Kiosse
Author-X-Name-First: Paraskevi Vicky
Author-X-Name-Last: Kiosse
Author-Name: Peter F. Pope
Author-X-Name-First: Peter F.
Author-X-Name-Last: Pope
Title: Pension Deficits and Corporate Financial Policy: Does Accounting Transparency Matter?
Abstract: 
 We study changes in financial policies following a regulatory shock to the accounting transparency of defined benefit pension plans. We estimate the hidden pension deficits of French companies subject to mandatory IAS 19 adoption in 2005 using disclosures of early adopters of IAS 19. We find that financially risky companies reporting unexpectedly high pension deficits on first-time IAS 19 adoption subsequently reduce leverage and incur higher cost of debt. Our results suggest that in the absence of transparency the credit market anticipates off-balance sheet pension deficits. However, the introduction of the more transparent IAS 19 regime allows the credit market to correct estimation errors. Our study is one of the first to show that the greater transparency offered by IFRS has negative economic consequences for some companies.
Journal: European Accounting Review
Pages: 801-825
Issue: 4
Volume: 30
Year: 2021
Month: 08
X-DOI: 10.1080/09638180.2020.1792321
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1792321
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Handle: RePEc:taf:euract:v:30:y:2021:i:4:p:801-825




Template-Type: ReDIF-Article 1.0
Author-Name: Clemens Löffler
Author-X-Name-First: Clemens
Author-X-Name-Last: Löffler
Title: Information Sharing in Procurement Contracting with Multiple Suppliers and Input Interdependencies
Abstract: 
 This paper analyzes a procurement situation where a manufacturer decides on sharing proprietary information with suppliers of complementary components when these components are commonly used for several products. I find that the interdependencies have profound impact on the manufacturer's information sharing strategy. The manufacturer may engage in selective information sharing, making demand or cost information accessible to one supplier but concurrently withholding the same information from a second, complementary input supplier. Information sharing to the second supplier is intermediate whereas concealment is two-tailed. Selective information sharing arises because in light of component interdependencies the disclosure strategy causes two competing forces – lowering one component's costs versus increasing the other's costs.
Journal: European Accounting Review
Pages: 939-958
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2021.1969668
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1969668
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Template-Type: ReDIF-Article 1.0
Author-Name: Romain Oberson
Author-X-Name-First: Romain
Author-X-Name-Last: Oberson
Title: The Credit-Risk Relevance of Loan Impairments Under IFRS 9 for CDS Pricing: Early Evidence
Abstract: 
 Since 2018, banks have implemented the expected credit loss (ECL) model under International Financial Reporting Standard (IFRS) 9 to estimate loan losses, which replaces the incurred loss model under International Accounting Standard (IAS) 39. The key novelty of the ECL model is the incorporation of forward-looking information for recognizing accounting loan loss provisions (LLPs), which provides ample room for managerial discretion. Over the period 2014–2019, I first show that the shift to the ECL model improves the timeliness of loan loss recognition. However, under the IFRS 9 regime managers also use their accounting discretion more aggressively over LLP estimates to smooth earnings. I then investigate whether IFRS 9 improves the relevance of LLPs for credit default swap (CDS) pricing. I report that LLPs under IFRS 9 are incrementally more relevant than under IAS 39 for CDS pricing but mostly concentrated amongst banks with weaker pre-IFRS 9 information environments. I further show that under the IFRS 9 regime, LLPs are relevant for CDS pricing only when LLPs consistently reflect future expected losses while earnings smoothing via LLP generally impair the credit-risk relevance of LLPs. Finally, I find that strong governance is imperative for providing useful LLP estimates for CDS pricing.
Journal: European Accounting Review
Pages: 959-987
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2021.1956985
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1956985
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Template-Type: ReDIF-Article 1.0
Author-Name: Kathrin Oberwallner
Author-X-Name-First: Kathrin
Author-X-Name-Last: Oberwallner
Author-Name: Christoph Pelger
Author-X-Name-First: Christoph
Author-X-Name-Last: Pelger
Author-Name: Thorsten Sellhorn
Author-X-Name-First: Thorsten
Author-X-Name-Last: Sellhorn
Title: Preparers’ Construction of Users’ Information Needs in Corporate Reporting: A Case Study
Abstract: 
 This paper studies how preparers assess users’ information needs and preferences, and how these constructions relate to preparers’ reporting decisions. Drawing on interviews as well as other internal and external data, our qualitative case study focuses on a prominent annual report restructuring at the large industrial firm Siemens. Employing the theoretical framework of institutional logics allows us to trace how Siemens’ changing context influenced the ways in which actors dynamically reconsidered the meaning and purpose of the annual report. We document how the previously coexisting compliance and stakeholder logics gave way to a dominant capital market logic, which required Siemens actors – similar to standard setters – to construct the notion of ‘usefulness’ for capital providers. Constructing users as vulnerable to disclosure overload and interested in the annual report only as a confirmatory tool, Siemens transformed the annual report into a concise compliance document. We conclude that changes in corporate reporting reflect dynamic shifts and reinterpretations of institutional logics shaped by firm-specific contextual factors.
Journal: European Accounting Review
Pages: 855-886
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2021.1961596
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1961596
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Template-Type: ReDIF-Article 1.0
Author-Name: Niklas Kreilkamp
Author-X-Name-First: Niklas
Author-X-Name-Last: Kreilkamp
Author-Name: Sophie Teichmann
Author-X-Name-First: Sophie
Author-X-Name-Last: Teichmann
Author-Name: Arnt Wöhrmann
Author-X-Name-First: Arnt
Author-X-Name-Last: Wöhrmann
Title: The Effect of Cost Stickiness on Peer-Based Valuation Models
Abstract: 
 We investigate how asymmetric cost behavior (also termed cost stickiness) affects peer-based valuation models. Using a sample of U.S. firms for the period 2000–2016, we provide evidence that the higher the degree of a target firm`s level of cost stickiness vis-à-vis its peer group, the greater is the peer-based underestimation of the firm’s market value (downward peer-based valuation bias). Furthermore, we show that the underestimation of firm value is weaker for firms exhibiting potential for agency issues. Overall, our findings suggest the following: First, using information on cost management strategies reduces the downward peer-based valuation bias. Second, investors partially understand and incorporate available information about cost stickiness into their evaluation of firm value, c.p. leading to deviations from the value estimates of the peer-based models. These models generally do not recognize information on cost stickiness as an input factor. Ultimately, the findings support the assumption that investors assess the likelihood that cost stickiness is either driven by economic or non-economic reasons and adapt their value estimate accordingly.
Journal: European Accounting Review
Pages: 913-938
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2021.1976662
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1976662
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaochi Ge
Author-X-Name-First: Xiaochi
Author-X-Name-Last: Ge
Author-Name: Pawel Bilinski
Author-X-Name-First: Pawel
Author-X-Name-Last: Bilinski
Author-Name: Arthur Kraft
Author-X-Name-First: Arthur
Author-X-Name-Last: Kraft
Title: Institutional Blockholders and Voluntary Disclosure
Abstract: 
 We study how institutional blockholdings affect firm voluntary disclosure. We document that concentrated institutional ownership reduces firms’ voluntary disclosure measured by the propensity to issue management forecasts, comprehensiveness of guidance, propensity to engage in conference calls, and the number of 8-K filings. We identify two channels through which institutional blockholders affect firms’ voluntary disclosure. First, blockholders have easier access to managers and substitute private for public information acquisition. Second, a higher proportion of non-monitoring blockholders with low demand for voluntary disclosure, such as passive blockholders, reduces the firm’s incentive to provide voluntary disclosure. The results are robust to endogeneity and reverse causality concerns. Our study identifies an important effect that concentrated ownership has on firm corporate disclosure.
Journal: European Accounting Review
Pages: 1013-1042
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2021.1979418
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1979418
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Template-Type: ReDIF-Article 1.0
Author-Name: Justin Jin
Author-X-Name-First: Justin
Author-X-Name-Last: Jin
Author-Name: Kiridaran Kanagaretnam
Author-X-Name-First: Kiridaran
Author-X-Name-Last: Kanagaretnam
Author-Name: Y. I. Liu
Author-X-Name-First: Y. I.
Author-X-Name-Last: Liu
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Title: Does Citizens’ Financial Literacy Relate to Bank Financial Reporting Transparency?
Abstract: 
 In this study, we examine the relationship between financial literacy and bank financial reporting transparency for a sample of banks from the U.S. Following prior literature, we employ discretionary loan loss provisions (DLLP) as our primary measure of bank reporting transparency. We argue that the financial literacy of their customers can influence bank managers’ behaviors with respect to both the mechanics of the loan loss provisioning and their opportunistic actions. Financially literate customers represent more stable sources of funding and have more predictable loan loss provisioning that contributes to more persistent earnings. Financial literacy could also enhance customers’ ability to indirectly follow and monitor bank performance and risk-taking. Therefore, bank managers will be less likely to engage in opportunistic earnings manipulation. Following these arguments, we predict that citizens’ financial literacy is positively associated with bank financial reporting transparency. Consistent with our prediction, we find that the magnitude of bank DLLP is negatively related to state-level financial literacy. Moreover, the association between financial literacy and DLLP is higher for banks with more retail deposits and larger consumer loans, the two channels through which financial literacy could influence bank transparency.
Journal: European Accounting Review
Pages: 887-912
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2021.1965897
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1965897
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Template-Type: ReDIF-Article 1.0
Author-Name: Rui Huang
Author-X-Name-First: Rui
Author-X-Name-Last: Huang
Author-Name: Leye Li
Author-X-Name-First: Leye
Author-X-Name-Last: Li
Author-Name: Louise Yi Lu
Author-X-Name-First: Louise Yi
Author-X-Name-Last: Lu
Author-Name: Hai Wu
Author-X-Name-First: Hai
Author-X-Name-Last: Wu
Title: The Impact of the Leahy-Smith America Invents Act on Firms’ R&D Disclosure
Abstract: 
 The Leahy-Smith America Invents Act of 2011 (AIA) fundamentally changed the U.S. public patent system. This study examines whether and how the enactment of the AIA affects innovation-intensive firms’ narrative R&D disclosure. Adopting a difference-in-difference design, we find that the enactment of the AIA is associated with a greater decline in narrative R&D disclosure of innovation-intensive firms relative to non-innovation-intensive firms. This effect is more pronounced for firms that are more concerned about the proprietary costs of disclosure and firms with lower financial constraints. Moreover, we show that the enactment of the AIA dampens analysts’ information environment and aggravates information asymmetry. Overall, our results suggest that the AIA has a negative impact on corporate disclosure and information asymmetry. The documented unintended effect of the AIA could potentially work against lawmakers’ efforts to bolster innovation and the dissemination of knowledge.
Journal: European Accounting Review
Pages: 1067-1104
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2020.1806896
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1806896
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Template-Type: ReDIF-Article 1.0
Author-Name: Justin Hung Nguyen
Author-X-Name-First: Justin Hung
Author-X-Name-Last: Nguyen
Title: Tax Avoidance and Financial Statement Readability
Abstract: 
 This paper examines whether managers of firms that engage in high levels of tax avoidance (TA) strategically reduce their financial statement readability (FSR) to mitigate the risk of exposing their TA strategies. On average, results are inconclusive, but mainly hold in the sample of firms with low effective tax rates (i.e., high TA levels). Specifically, focused on firms with above-industry-median TA, the panel regression results show a negative relation between TA and FSR, and the difference-in-differences analysis, based on the ‘Check-the-Box’ regulation in 1997 that exogenously increases tax planning opportunities, suggests the negative impact of TA on FSR is likely causal. The relationship is stronger for firms faced with a greater likelihood of tax audit ex ante, firms in industries with a higher tax risk, and firms with a larger institutional ownership. The evidence adds to our understanding of the influence of corporate TA on financial disclosures.
Journal: European Accounting Review
Pages: 1043-1066
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2020.1811745
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1811745
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Template-Type: ReDIF-Article 1.0
Author-Name: Corinna Ewelt-Knauer
Author-X-Name-First: Corinna
Author-X-Name-Last: Ewelt-Knauer
Author-Name: Anja Schwering
Author-X-Name-First: Anja
Author-X-Name-Last: Schwering
Author-Name: Sandra Winkelmann
Author-X-Name-First: Sandra
Author-X-Name-Last: Winkelmann
Title: Probabilistic Audits and Misreporting – the Influence of Audit Process Design on Employee Behavior
Abstract: 
 We investigate how the design of audit processes influences employees’ reporting decisions. We focus specifically on detective employee audits for which several employees are randomly selected after a defined period to audit their ex-post behavior. We investigate two design features of the audit process, namely, employee anonymity and process transparency, and analyze their impact on misreporting. Overall, we find that both components influence the extent of individuals’ misreporting. A nonanonymous audit decreases performance misreporting more than an audit in which the employee remains anonymous. Furthermore, the high incidence of performance misreporting in the case of anonymous audits can be decreased when the process transparency is low. Thus, our study informs accountants about how the two design features of employee anonymity and transparency of the audit process can be used to constrain performance misreporting to increase the efficiency of audits.
Journal: European Accounting Review
Pages: 989-1012
Issue: 5
Volume: 30
Year: 2021
Month: 10
X-DOI: 10.1080/09638180.2021.1899014
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1899014
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Template-Type: ReDIF-Article 1.0
Author-Name: Kay Blaufus
Author-X-Name-First: Kay
Author-X-Name-Last: Blaufus
Author-Name: Malte Chirvi
Author-X-Name-First: Malte
Author-X-Name-Last: Chirvi
Author-Name: Hans-Peter Huber
Author-X-Name-First: Hans-Peter
Author-X-Name-Last: Huber
Author-Name: Ralf Maiterth
Author-X-Name-First: Ralf
Author-X-Name-Last: Maiterth
Author-Name: Caren Sureth-Sloane
Author-X-Name-First: Caren
Author-X-Name-Last: Sureth-Sloane
Title: Tax Misperception and its Effects on Decision Making – Literature Review and Behavioral Taxpayer Response Model
Abstract: 
 Previous accounting research shows that taxes affect decision making by individuals and firms. Most studies assume that agents have an accurate perception regarding their tax burden. However, there is a growing body of literature analyzing whether taxes are indeed perceived correctly. We review 128 studies on the measurement of tax misperception and its behavioral implications. The review reveals that many taxpayers have substantial tax misperceptions that lead to biased decision making. We develop a Behavioral Taxpayer Response Model on the impact of provided tax information on tax perception. Besides individual traits, characteristics of the tax information and the decision environment determine the extent of tax misperception. We discuss opportunities for future research and methodological limitations. While there is much evidence on tax misperception at the individual level, we hardly find any research at the firm level. Little is known about the real effects of managers’ tax misperception and on how tax information is strategically managed to impact stakeholders. This research gap is surprising as a large part of the accounting literature analyzes decision making and disclosure of firms. We recommend a mixed-method approach combining experiments, surveys, and archival data analyses to improve the knowledge on tax misperception and its consequences.
Journal: European Accounting Review
Pages: 111-144
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2020.1852095
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1852095
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter Kajüter
Author-X-Name-First: Peter
Author-X-Name-Last: Kajüter
Author-Name: Arne Lessenich
Author-X-Name-First: Arne
Author-X-Name-Last: Lessenich
Author-Name: Martin Nienhaus
Author-X-Name-First: Martin
Author-X-Name-Last: Nienhaus
Author-Name: Florian van Gemmern
Author-X-Name-First: Florian
Author-X-Name-Last: van Gemmern
Title: Consequences of Interim Reporting: A Literature Review and Future Research Directions
Abstract: 
 This study provides the first comprehensive literature review on interim reporting based on 112 papers published between 1961 and 2020. The review focuses on both the firm-specific consequences (capital market-based and real effects) and externalities of interim reporting. We analyze three primary interim reporting characteristics: (1) frequency, (2) contents, and (3) assurance. The review allows us to summarize the existing literature, reconcile different findings, identify trends in the literature, and present avenues for future research. We observe that investors perceive interim reports to be useful. However, no clear evidence exists for strong capital market-based benefits of higher reporting frequency, such as increases in liquidity. Higher reporting frequency seems to imply stricter monitoring, especially in the absence of other effective monitoring mechanisms. Nonetheless, it can also induce myopic decision-making. More comprehensive reports convey more information at the costs of increases in reporting lags and processing time. Surprisingly, the current literature does not find that interim assurance leads to higher interim report quality.
Journal: European Accounting Review
Pages: 209-239
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2021.1872398
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1872398
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Template-Type: ReDIF-Article 1.0
Author-Name: Sanaz Aghazadeh
Author-X-Name-First: Sanaz
Author-X-Name-Last: Aghazadeh
Author-Name: J. Owen Brown
Author-X-Name-First: J. Owen
Author-X-Name-Last: Brown
Author-Name: Laura Guichard
Author-X-Name-First: Laura
Author-X-Name-Last: Guichard
Author-Name: Kris Hoang
Author-X-Name-First: Kris
Author-X-Name-Last: Hoang
Title: Persuasion in Auditing: A Review Through the Lens of the Communication-Persuasion Matrix
Abstract: 
 We provide a comprehensive review and synthesis of behavioral experimental literature that examines persuasion in auditing. We organize our review by applying the five Components of Persuasive Communication from the Communication-Persuasion Matrix. Our synthesis identifies two primary contexts in which persuasion attempts occur in the auditing setting: (1) auditors and clients engaging in or coping with others’ persuasive communications; (2) auditors coping with subordinates’ persuasion attempts in working papers. From our analysis, we identify a concentration of prior persuasion research on source, message, and receiver variables, and we develop 26 questions for future research to consider based on gaps we identify in the literature. Our literature review specifies and organizes key features of persuasion in auditing, enhances our understanding of how auditors and clients initiate and respond to persuasive communications, and discusses significant implications for both audit quality and financial reporting outcomes.
Journal: European Accounting Review
Pages: 145-172
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2020.1863243
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1863243
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Thank you to Associate Editors, Editorial Board Members, Ad-hoc Associate Editors, Guest Editors and Reviewers 2021
Journal: European Accounting Review
Pages: 297-309
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2022.2047251
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2047251
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Template-Type: ReDIF-Article 1.0
Author-Name: Ann K. Tank
Author-X-Name-First: Ann K.
Author-X-Name-Last: Tank
Author-Name: Anne M. Farrell
Author-X-Name-First: Anne M.
Author-X-Name-Last: Farrell
Title: Is Neuroaccounting Taking a Place on the Stage? A Review of the Influence of Neuroscience on Accounting Research
Abstract: 
 Insights and technologies from neuroscience research can help accounting scholars more deeply understand how decision-makers physically and cognitively process and react to accounting information and controls. We conduct a systematic review of accounting literature to evaluate whether and how accounting scholars are incorporating neuroscience research into their work and building a field of ‘neuroaccounting.’ To do so, we identify literature that relates accounting research questions to neuroscience research, addresses accounting questions or tasks but has implications for neuroscience or neuroaccounting research, or investigates accounting questions using neuroscience technologies. We then classify that literature into two broad topic areas analogous to the decision-facilitating (how individuals process information) and decision-influencing (how individuals respond to controls) roles of accounting, and map relationships within each topic over time. We observe that literature in accounting is coalescing into a new field, neuroaccounting, in ways that mirror the pattern of development of a similar field, neuroeconomics – indicating that neuroaccounting is indeed taking a place on the stage of behavioral accounting research. Our review provides a framework for future research at the nexus of neuroscience and accounting that provides unique insights into the ‘black box’ of cognitive processing in accounting contexts.
Journal: European Accounting Review
Pages: 173-207
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2020.1866634
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1866634
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Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Thomas Alberti
Author-X-Name-First: Cristina Thomas
Author-X-Name-Last: Alberti
Author-Name: Jean C. Bedard
Author-X-Name-First: Jean C.
Author-X-Name-Last: Bedard
Author-Name: Olof Bik
Author-X-Name-First: Olof
Author-X-Name-Last: Bik
Author-Name: Ann Vanstraelen
Author-X-Name-First: Ann
Author-X-Name-Last: Vanstraelen
Title: Audit Firm Culture: Recent Developments and Trends in the Literature
Abstract: 
 This paper synthesizes research on audit firm culture (AFC) over the past decade, reviewing recent developments in research on factors instilling culture in audit firms, and how culture influences audit quality and auditors’ work attitudes. We develop and apply a three-phase model based on prior research and professional guidance (IAASB, 2014), which maps cultural embedding mechanisms (EMs, visible manifestations and organizational conditions to establish culture), perceptions of existing culture, and consequences of culture. Our synthesis shows that the culture of an audit firm is most oriented toward quality if leadership emphasizes professionalism over commercialism, promotes ethical judgments, and facilitates learning through systems, integration of specialists, and interpersonal interactions among auditors. The research cited shows strong influence on AFC of tone at the top set by leadership, as well as incentives in performance/reward systems. Studies we review generally imply continued concern for the influence of commercialism on AFC, but future research should investigate whether recent forces (i.e. pressure from regulators and efforts by the firms) have caused a cultural shift toward professionalism. We close by suggesting opportunities for future research that can strengthen understanding how AFC can be better managed by firms.
Journal: European Accounting Review
Pages: 59-109
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2020.1846574
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1846574
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Template-Type: ReDIF-Article 1.0
Author-Name: Martin Jacob
Author-X-Name-First: Martin
Author-X-Name-Last: Jacob
Title: Real Effects of Corporate Taxation: A Review
Abstract: 
 In this study, I review the empirical literature on the real effects of corporate taxation. I define real effects broadly as firms' investment responses, corporate risk taking, capital structure choices, and aggregate outcomes such as GDP growth. I base my analysis on 79 empirical studies on the investment effects of corporate taxation and contrast these results to theoretical predictions. Consistent with theory, there seems to be a consensus that higher corporate tax rates reduce corporate investment, foreign direct investment (FDI), aggregate growth, and innovation. Similarly, many papers examine bonus depreciation, which consistently increases investment. At the same time, there is little evidence on the employment effects of corporate taxes and on the role of several tax base elements in shaping investments. Importantly, the role of tax avoidance (opportunities) in the tax effect on investment has received very little attention from the empirical literature over the past two decades. I also derive several other potential avenues for future research.
Journal: European Accounting Review
Pages: 269-296
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2021.1934055
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1934055
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Template-Type: ReDIF-Article 1.0
Author-Name: Nathalie Repenning
Author-X-Name-First: Nathalie
Author-X-Name-Last: Repenning
Author-Name: Lukas Löhlein
Author-X-Name-First: Lukas
Author-X-Name-Last: Löhlein
Author-Name: Utz Schäffer
Author-X-Name-First: Utz
Author-X-Name-Last: Schäffer
Title: Emotions in Accounting: A Review to Bridge the Paradigmatic Divide
Abstract: 
 This review analyzes the role of emotions in accounting research. Drawing on an analytical framework that differentiates between joy-, fear-, anger- and sadness-based emotions, we disentangle the bidirectional dynamics between emotions and accounting, and show how accounting both conditions and is conditioned by emotions. In this way, we demonstrate how an emotional turn in accounting scholarship challenges and expands our understanding of financial accounting, management accounting, and auditing. In addition, we raise awareness about the performative role of ontological and epistemological positions in accounting research on emotions. We find that scholars from different paradigmatic traditions mostly acknowledge each other's work, but often miss the opportunity to fully embrace it. By illustrating the productive insights that emerge from a stronger inter-paradigmatic engagement, we draw attention to the necessity (and excitement) of crossing the great divide. We conclude by outlining avenues of future research on emotions in accounting.
Journal: European Accounting Review
Pages: 241-267
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2021.1908906
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1908906
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Template-Type: ReDIF-Article 1.0
Author-Name: Sven Modell
Author-X-Name-First: Sven
Author-X-Name-Last: Modell
Title: Accounting for Institutional Work: A Critical Review
Abstract: 
 This paper offers a review of a rapidly growing body of accounting research, using the concept of institutional work, with an eye to whether and how it has addressed key criticisms levied at this strand of institutional theory. Four sets of criticism of the institutional work perspective, pivoting on its emphasis on such work as an institutionally embedded multi-level phenomenon, the intentions behind institutional work, the relationship between habitual and reflexive agency and its conception of power, are identified. Insofar as accounting research using the concept of institutional work has addressed such criticisms, it has mainly been confined to those emerging within institutional theory whilst much less attention has been paid to criticisms raised by critical management scholars who are less sympathetic to institutional theory. Drawing on recent advances in critical sociology, I advance a framework that addresses these criticisms. In doing so, I discuss the possibilities of imbuing research on institutional work with innate concerns with radical social critique and emancipation. This contributes to a refined understanding of institutional work as a source of change and stability and provides a platform for turning institutional accounting research into a politically engaged research program underpinned by critical intent.
Journal: European Accounting Review
Pages: 33-58
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2020.1820354
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1820354
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Template-Type: ReDIF-Article 1.0
Author-Name: Haiyan Jiang
Author-X-Name-First: Haiyan
Author-X-Name-Last: Jiang
Author-Name: Ahsan Habib
Author-X-Name-First: Ahsan
Author-X-Name-Last: Habib
Author-Name: Mostafa Monzur Hasan
Author-X-Name-First: Mostafa Monzur
Author-X-Name-Last: Hasan
Title: Short Selling: A Review of the Literature and Implications for Future Research
Abstract: 
 This systematic literature review critically analyzes studies on the determinants of short selling and the implications for information distribution, real economic decisions, financial reporting, and external auditing. We select and review studies within a research framework, identifying two of the most important areas in the literature: short sellers as important information intermediaries and short sellers’ influence on accounting, auditing, and other corporate decisions as the ‘spillover effect’ of the information distribution. Of the two, the former has a strong emphasis on financial markets, whereas the latter extends this traditional topic in finance to financial economics, corporate governance, and accounting. Our review highlights that, although short sellers use both private information and public information in selecting stocks for shorting, we know little about how they use private and non-financial information to influence managerial economic decisions and firms’ financial reporting decisions. In discussing potential future research, we emphasize that penetrating the information ‘black box’ and positioning research regarding the information that short sellers use and how they use it are necessary to advance the short-selling literature.
Journal: European Accounting Review
Pages: 1-31
Issue: 1
Volume: 31
Year: 2022
Month: 01
X-DOI: 10.1080/09638180.2020.1788406
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1788406
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Template-Type: ReDIF-Article 1.0
Author-Name: Apostolos Ballas
Author-X-Name-First: Apostolos
Author-X-Name-Last: Ballas
Author-Name: Vasilios-Christos Naoum
Author-X-Name-First: Vasilios-Christos
Author-X-Name-Last: Naoum
Author-Name: Orestes Vlismas
Author-X-Name-First: Orestes
Author-X-Name-Last: Vlismas
Title: The Effect of Strategy on the Asymmetric Cost Behavior of SG&A Expenses
Abstract: 
 Asymmetric cost behavior has been attributed to deliberate managerial resource commitment decisions and a firm’s strategic choices is a significant determinant of these decisions. This study investigates the effect of strategy on the intensity and direction of the asymmetric cost behavior of selling, general, and administrative (SG&A) expenses. Employing a sample of US-listed firms for the period 1991–2014, we provide empirical evidence that a firm’s strategic orientation determines the direction and intensity of cost asymmetry. Firms classified as prospectors exhibit SG&A cost stickiness whereas firms classified as defenders exhibit SG&A cost anti-stickiness. Sensitivity and causality tests indicate that a firm’s strategic positioning and its portfolio of intangible re-sources independently affect the resource allocation decisions that are responsible for the direction of cost asymmetry for the SG&A expenses.
Journal: European Accounting Review
Pages: 409-447
Issue: 2
Volume: 31
Year: 2022
Month: 3
X-DOI: 10.1080/09638180.2020.1813601
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1813601
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Handle: RePEc:taf:euract:v:31:y:2022:i:2:p:409-447



Template-Type: ReDIF-Article 1.0
Author-Name: Kun Tracy Wang
Author-X-Name-First: Kun Tracy
Author-X-Name-Last: Wang
Author-Name: Yanjun Liu
Author-X-Name-First: Yanjun
Author-X-Name-Last: Liu
Author-Name: Wanbin Walter Wang
Author-X-Name-First: Wanbin Walter
Author-X-Name-Last: Wang
Title: Government Control, Regulatory Enforcement Actions, and the Cost of Equity
Abstract: 
 Using a comprehensive manually collected dataset of regulatory enforcement actions against fraud in the Chinese capital market and a difference-in-differences (DID) research design, we examine the impact of such actions on the implied cost of equity and the role of the government as the controlling shareholder in moderating this relationship. We find that regulatory enforcement actions increase firms’ cost of equity, and that government controlling shareholders can mitigate the effect of these actions. Our results are robust to various sensitivity tests, including alternative measures of the cost of equity, alternative samples, additional control variables, and an alternative DID design. Additional analysis provides supporting evidence that the effect of enforcement actions on the cost of equity arises from investors’ perception of higher long-run information risk in the case of fraud firms. Further, government controlling shareholders can mitigate the impact of such actions on the cost of equity by lowering investors’ perceived information risk.
Journal: European Accounting Review
Pages: 449-493
Issue: 2
Volume: 31
Year: 2022
Month: 3
X-DOI: 10.1080/09638180.2020.1822196
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1822196
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Handle: RePEc:taf:euract:v:31:y:2022:i:2:p:449-493



Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Maussen
Author-X-Name-First: Sophie
Author-X-Name-Last: Maussen
Author-Name: Sophie Hoozée
Author-X-Name-First: Sophie
Author-X-Name-Last: Hoozée
Title: On the Influence of Task Interruption and Interactive Time Estimation on Estimation Error in Time-Based Costing Systems
Abstract: 
 Time estimates are an important part of many costing systems. As they may be subject to estimation error and hence result in measurement error in product and service costs, it is important to understand the sources of this estimation error as well as mechanisms to mitigate them. We performed a computer-based lab experiment to test the joint impact of task interruption and interactive time estimation on the accuracy of time estimates. As predicted, we find that the negative impact of task interruption on time estimation accuracy is mitigated when participants are allowed to interactively discuss their time estimates before making a final time estimate alone. We explain our findings through the underlying effects of cognitive load and confidence. Hence, managers may improve the accuracy of their time-based costing systems by enabling an interactive time estimation process to offset the detrimental effect of task interruption.
Journal: European Accounting Review
Pages: 519-541
Issue: 2
Volume: 31
Year: 2022
Month: 3
X-DOI: 10.1080/09638180.2020.1826339
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1826339
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Template-Type: ReDIF-Article 1.0
Author-Name: Ann Vanstraelen
Author-X-Name-First: Ann
Author-X-Name-Last: Vanstraelen
Author-Name: Lei Zou
Author-X-Name-First: Lei
Author-X-Name-Last: Zou
Title: PCAOB Inspections and Audit Fees: An Analysis of Inspection Rounds of Small Audit Firms
Abstract: 
 This study investigates the impact on audit pricing of PCAOB inspection outcomes on the quality control systems of small audit firms. Quality control deficiencies (QCDs) provide a strong signal about audit quality, which is expected to lead to price changing. We first document that audit fees in the pre-inspection period were higher for small audit firms without QCDs, implying that quality differences were already partially known and priced in the market. Next, we find evidence that in the post-inspection period audit fees further increase for firms without QCDs, while there is limited evidence for fee increases for firms with remediated QCDs, suggesting changes in audit firm reputation. Interestingly, we do not find support for fee changes for audit firms with disclosed quality control deficiencies. Finally, the magnitude of change in audit fees decreases over time. Collectively, these findings contribute to our understanding of audit quality differences amongst small audit firms and the functioning of the small audit firm market.
Journal: European Accounting Review
Pages: 345-376
Issue: 2
Volume: 31
Year: 2022
Month: 3
X-DOI: 10.1080/09638180.2020.1828121
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1828121
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Handle: RePEc:taf:euract:v:31:y:2022:i:2:p:345-376



Template-Type: ReDIF-Article 1.0
Author-Name: Vanessa Flagmeier
Author-X-Name-First: Vanessa
Author-X-Name-Last: Flagmeier
Title: The Information Content of Deferred Taxes Under IFRS
Abstract: 
 As prior evidence on deferred taxes under IFRS is scarce and inconclusive, this study examines whether deferred taxes reported in a German conservative accounting environment have information content. To improve informativeness, I propose a new split into four deferred tax categories. Applying this split, I replicate prior literature’s value relevance tests. Next, I examine whether the (lack of) value relevance can be explained by predictive ability. My findings indicate that aggregate deferred taxes are value relevant and that the new split informs about the drivers of this value relevance. It further helps to disentangle value relevance and predictive ability which do not always go hand in hand. Taken together, my results suggest that applying the new categorization improves the information content of deferred taxes.
Journal: European Accounting Review
Pages: 495-518
Issue: 2
Volume: 31
Year: 2022
Month: 3
X-DOI: 10.1080/09638180.2020.1826338
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1826338
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Handle: RePEc:taf:euract:v:31:y:2022:i:2:p:495-518



Template-Type: ReDIF-Article 1.0
Author-Name: Scott D. Dyreng
Author-X-Name-First: Scott D.
Author-X-Name-Last: Dyreng
Author-Name: Stephen A. Hillegeist
Author-X-Name-First: Stephen A.
Author-X-Name-Last: Hillegeist
Author-Name: Fernando Penalva
Author-X-Name-First: Fernando
Author-X-Name-Last: Penalva
Title: Earnings Management to Avoid Debt Covenant Violations and Future Performance
Abstract: 
 In this study, we examine the trade-offs between earnings management (both accruals and real) and covenant violations by examining how they are associated with future accounting and stock market performance. We analyze a matched-pair sample of covenant violation firms with non-violation firms that have a similar risk of a covenant violation. We have three main findings. First, our evidence indicates that covenant violations are costly events for shareholders as lenders appear to use their control rights in ways that increase the likelihood of loan repayment but impose costs for shareholders. Second, there is limited evidence indicating covenant-related accrual-earnings management activities impose significant costs on shareholders, but we find shareholders are worse off following unsuccessful real earnings management. Third, our evidence indicates that, on average, shareholders at high violation risk firms are better off when their firms successfully engage in accruals earnings management to avoid a violation compared to shareholders at firms that violate a covenant but do not manage earnings. Thus, covenant-related earnings management may be in the best interests of shareholders and is not necessarily evidence of shareholder-manager agency conflicts.
Journal: European Accounting Review
Pages: 311-343
Issue: 2
Volume: 31
Year: 2022
Month: 3
X-DOI: 10.1080/09638180.2020.1826337
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1826337
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Handle: RePEc:taf:euract:v:31:y:2022:i:2:p:311-343



Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Toldbod
Author-X-Name-First: Thomas
Author-X-Name-Last: Toldbod
Author-Name: Berend van der Kolk
Author-X-Name-First: Berend
Author-X-Name-Last: van der Kolk
Title: Cascading Control Changes, Incoherence, and Dialogue: Insights from a Longitudinal Case Study
Abstract: 
 Environmental shifts regularly urge organizations to adapt, which may entail management control (MC) changes. Changes to an MC element such as a performance measurement system, however, may in turn create incoherence with other, non-changed elements, generating a need for more changes, and thus trigger a cascade effect. To date, however, we know little about how this sequential process unfolds and what managers can do to deal with incoherence. This paper contributes by enhancing the understanding of sequential changes, drawing on the organizational ecology literature, and we empirically inform our research with a five-year longitudinal case study. Our data illustrates in detail how initial MC changes, intended to cope with an environmental shift, trigger a cascade effect. This sequential process results in an extensive change period, during which various incoherent MC elements coexist. Our study acknowledges that incoherence among MC elements can decrease control effectiveness by creating intra-organizational frictions, yet we highlight the role of managers in mitigating such negative effects. Specifically, we show how managers can alleviate the unfavorable effects of incoherence by changing their use of performance measures in order to better facilitate organizational dialogue, learning and problem solving.
Journal: European Accounting Review
Pages: 377-407
Issue: 2
Volume: 31
Year: 2022
Month: 3
X-DOI: 10.1080/09638180.2020.1813185
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1813185
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Handle: RePEc:taf:euract:v:31:y:2022:i:2:p:377-407

Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy M. Vinson
Author-X-Name-First: Jeremy M.
Author-X-Name-Last: Vinson
Author-Name: Jesse C. Robertson
Author-X-Name-First: Jesse C.
Author-X-Name-Last: Robertson
Author-Name: Mary B. Curtis
Author-X-Name-First: Mary B.
Author-X-Name-Last: Curtis
Title: How Auditors’ Approach to Client Inquiry May Affect Skeptical Judgment: A Mixed-method Examination of Client Inquiry and Note Taking
Abstract: 
 Client inquiry is a foundational financial statement audit procedure. However, the literature offers little evidence regarding how auditors perform client inquiry and how note taking during client inquiry is associated with audit quality. We conduct a mixed-methods study to examine these issues. First, we conduct interviews with seven highly-experienced auditors and five staff auditors to understand current practices regarding client inquiries, as well as evaluating and documenting evidence gathered from client inquiries. These interviews provide a thorough description of inquiry, highlighting that auditors routinely take notes during inquiry but can have difficulty with the interrelated, complex cognitive tasks of asking questions, processing client answers, and taking notes during inquiry. Second, we conduct two experiments to examine the impact of note taking during inquiry on skeptical judgments. Results from both experiments indicate that auditors taking note of more ideas during the inquiry is positively associated with memory accuracy. However, this does not improve skeptical judgments, and may lead to less skeptical judgments. Our second experiment indicates a prompt to develop expectations prior to the inquiry improves identification of inconsistencies in the inquiry, leading to more skeptical judgments. We offer contributions to the academic literature and practice, and suggestions for future research.
Journal: European Accounting Review
Pages: 543-573
Issue: 3
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638180.2020.1835515
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1835515
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Template-Type: ReDIF-Article 1.0
Author-Name: Yves Habran
Author-X-Name-First: Yves
Author-X-Name-Last: Habran
Author-Name: Jan Mouritsen
Author-X-Name-First: Jan
Author-X-Name-Last: Mouritsen
Title: Making Intensity of Efforts the Same: Commensuration Work in Target-setting Practices
Abstract: 
 Extant literature on target-setting indicates that responding to achievability-related criticisms towards ex ante targets through repair actions are of significance in restoring fairness and maintaining the legitimacy of performance systems. By drawing on empirical materials on responses to unfairness criticisms raised against target-setting practices in a bank, the study shows that such legitimation work also requires responding to equity-related criticisms. Equity implies that, when situations differ, targets must be differentiated to make the intensity of efforts the same. This study shows that legitimately differentiating targets requires an original and highly complex commensuration work. This work is original because compared to prior commensuration studies it concerns the commensuration of efforts and not of entities. This work is complex because it is difficult to account for all differences during target-setting and because such differentiation can be made mechanically and discretionally, each form of differentiation bringing its own source of illegitimacy. Moreover, it is also complex because it is a distributed work, involving numerous actors with multiple concerns. Such commensuration work then appears to be continuous and dynamic. This complements prior studies in target-setting, which have focussed mainly on dyadic relations between a superior and a subordinate and on single-period adjustments to targets.
Journal: European Accounting Review
Pages: 603-627
Issue: 3
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638180.2020.1832901
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1832901
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Handle: RePEc:taf:euract:v:31:y:2022:i:3:p:603-627



Template-Type: ReDIF-Article 1.0
Author-Name: Pierangelo Rosati
Author-X-Name-First: Pierangelo
Author-X-Name-Last: Rosati
Author-Name: Fabian Gogolin
Author-X-Name-First: Fabian
Author-X-Name-Last: Gogolin
Author-Name: Theo Lynn
Author-X-Name-First: Theo
Author-X-Name-Last: Lynn
Title: Cyber-Security Incidents and Audit Quality
Abstract: 
 As signals of internal control weaknesses, cyber security incidents can represent significant risk factors to the quality of financial reporting. We empirically assess the audit quality implications of data breaches for a large sample of US firms. Using a difference-in-difference approach based on a matched sample of breached and non-breached firms, we find no evidence that cyber-security incidents result in a decline in audit quality. Instead, we observe positive shifts in four widely-used proxies for audit quality. We document that breached firms (i) experience a decrease in abnormal accruals, (ii) are less likely to report small profits or small earnings increases, (iii) are more likely to be issued a going concern report, and (iv) are less likely to restate their financial statements in the two years following a breach. Our results indicate that auditors effectively offset increases in audit risk through additional substantive testing and audit effort. Our evidence supports the view that auditors have increased their audit risk awareness and put in place adequate procedures to deal with the consequences of cyber-security incidents.
Journal: European Accounting Review
Pages: 701-728
Issue: 3
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638180.2020.1856162
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1856162
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Handle: RePEc:taf:euract:v:31:y:2022:i:3:p:701-728



Template-Type: ReDIF-Article 1.0
Author-Name: Justin Yiqiang Jin
Author-X-Name-First: Justin Yiqiang
Author-X-Name-Last: Jin
Author-Name: Yi Liu
Author-X-Name-First: Yi
Author-X-Name-Last: Liu
Author-Name: S. M. Khalid Nainar
Author-X-Name-First: S. M. Khalid
Author-X-Name-Last: Nainar
Title: Organizational Memory and Bank Accounting Conservatism
Abstract: 
 This paper is the first to investigate the impact of banks’ organizational memory of past history on the conservatism of accounting policy. Specifically, we investigate two types of bad time history: banks’ undercapitalization and the failures of other banks during financial crises. Using a large sample of U.S. banks over the period 1997–2013, we find that both types of bad times are positively related to timelier recognition of earnings decreases versus earnings increases in accounting income. We also find that following bad times, banks increase their allowance for loan losses. The results of path analysis and survey research indicate that bad time memory of banks impacts bank accounting conservatism through CEO tenure and board of directors’ tenure. Collectively, our results suggest that banks’ organizational memory of bad times and macro-level banking crises lead to greater accounting conservatism in banks.
Journal: European Accounting Review
Pages: 663-700
Issue: 3
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638180.2020.1854808
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1854808
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Handle: RePEc:taf:euract:v:31:y:2022:i:3:p:663-700



Template-Type: ReDIF-Article 1.0
Author-Name: Anastasios Elemes
Author-X-Name-First: Anastasios
Author-X-Name-Last: Elemes
Author-Name: Jeff Zeyun Chen
Author-X-Name-First: Jeff Zeyun
Author-X-Name-Last: Chen
Title: Big 4 Office Political Connections and Client Restatements
Abstract: 
 Extant literature suggests that audit firms establish political connections at the national level to lobby regulators and legislators. In this paper we construct a novel dataset of Big 4 auditors’ political connections at the audit office level and examine the implications of auditors’ political connections for their audit quality. We find that client firms of politically connected audit offices are less likely to restate their earnings. However, this relation is weaker for politically connected clients. Further analyses reveal that, during the years that are subsequently restated, connected clients of connected offices were able to contract for less audit effort and pay less audit fees relative to their non-connected counterparts. Our results, robust to alternative audit quality measures and endogeneity controls, suggest that, while connected auditors have incentives to deliver high audit quality, they are likely to compromise their independence for politically connected clients.
Journal: European Accounting Review
Pages: 729-760
Issue: 3
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638180.2020.1856163
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1856163
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Handle: RePEc:taf:euract:v:31:y:2022:i:3:p:729-760



Template-Type: ReDIF-Article 1.0
Author-Name: Silver Chung
Author-X-Name-First: Silver
Author-X-Name-Last: Chung
Title: The Effect of Institutional Ownership on the Timing of Earnings Announcements: Evidence from the Russell Index Inclusion
Abstract: 
 Using the annual Russell 1000/2000 index reconstitution as an exogenous shock to institutional ownership (IO), I examine the effect of IO on firms’ decisions regarding the time of day to announce earnings. I argue that firms with high IO strategically choose to announce earnings after hours to facilitate post-announcement price discovery and reduce volatility because the after-hours period is largely dominated by sophisticated institutional investors. I find that firms with greater IO are more likely to announce earnings during after-market sessions (i.e., after hours after the market closes), but not during premarket sessions (i.e., after hours before the market opens). My analysis further shows that transient IO has a stronger influence on the likelihood of after-market announcements relative to quasi-indexer or dedicated institutional holdings and that firms with high IO are even more likely to announce during after-market sessions when firms have bad earnings news or when earnings include large transitory items. Lastly, I find that announcing earnings during after-market sessions indeed facilitates post-announcement price discovery and reduces volatility for firms with high IO. Collectively, my findings suggest that IO is a significant factor in firms’ disclosure timing decisions and that the timing of disclosures affects price discovery and volatility.
Journal: European Accounting Review
Pages: 629-661
Issue: 3
Volume: 31
Year: 2022
Month: 5
X-DOI: 10.1080/09638180.2020.1838310
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1838310
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Template-Type: ReDIF-Article 1.0
Author-Name: Paul Pronobis
Author-X-Name-First: Paul
Author-X-Name-Last: Pronobis
Author-Name: Jonas Schaeuble
Author-X-Name-First: Jonas
Author-X-Name-Last: Schaeuble
Title: Foreign Ownership and Audit Fees in European Listed Firms
Abstract: 
 This paper investigates whether foreign ownership affects audit fees by analyzing shareholdings of listed firms from Western European countries. The results show that foreign ownership is an important factor that drives the demand for audit services. However, the willingness to pay higher audit fees is mainly driven by the quality of governance and investor protection of the foreign investor's home country. This is consistent with the notion that foreign investors encourage the firms that they invest in to implement the same corporate governance practices in terms of auditing that they themselves are subject to in their home country. Finally, we document that the influence of the foreign investor on audit fees is increasing in the percentage of ownership held.
Journal: European Accounting Review
Pages: 575-602
Issue: 3
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638180.2020.1830819
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1830819
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Handle: RePEc:taf:euract:v:31:y:2022:i:3:p:575-602



Template-Type: ReDIF-Article 1.0
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Ni Qin
Author-X-Name-First: Ni
Author-X-Name-Last: Qin
Author-Name: Wei Yang
Author-X-Name-First: Wei
Author-X-Name-Last: Yang
Author-Name: Jian Zhang
Author-X-Name-First: Jian
Author-X-Name-Last: Zhang
Title: Employee Cash Profit-Sharing and Earnings Management
Abstract: 
 This paper examines how a firm’s employment policy, particularly employee cash profit-sharing plans, affects its financial reporting. We find that firms with employee cash profit-sharing programs are more likely to engage in downward earnings management to reduce labor costs, especially with decreasing performance. This effect is more evident in firms with higher labor costs and human-capital reliant firms. Our findings are robust to a variety of model specifications and endogeneity problems.
Journal: European Accounting Review
Pages: 761-785
Issue: 3
Volume: 31
Year: 2022
Month: 05
X-DOI: 10.1080/09638180.2020.1858914
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1858914
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Handle: RePEc:taf:euract:v:31:y:2022:i:3:p:761-785

Template-Type: ReDIF-Article 1.0
# input file: REAR_A_1890630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Svetlana Katolnik
Author-X-Name-First: Svetlana
Author-X-Name-Last: Katolnik
Author-Name: Sandra K. Kronenberger
Author-X-Name-First: Sandra K.
Author-X-Name-Last: Kronenberger
Author-Name: Jens Robert Schöndube
Author-X-Name-First: Jens Robert
Author-X-Name-Last: Schöndube
Title: Board Monitoring and Advising in Dynamic Agency
Abstract: 
 Intuition suggests that shareholders benefit from active boards. We present a model to show that if contract renegotiation is possible, then an active board might not always be desirable from the shareholders' perspective. This happens because low board activity may partially offset the distortion in the manager's incentives caused by the renegotiation option. While the value of low board activity stems from the board's weak monitoring, a strong measurement effect of the board's advising in the manager's performance measures is necessary to implement it. In this case, a sufficiently independent board motivates a low level of board activity.
Journal: European Accounting Review
Pages: 973-1002
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2021.1890630
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1890630
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Handle: RePEc:taf:euract:v:31:y:2022:i:4:p:973-1002



Template-Type: ReDIF-Article 1.0
# input file: REAR_A_1890631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Esther Gal-Or
Author-X-Name-First: Esther
Author-X-Name-Last: Gal-Or
Author-Name: Ronen Gal-Or
Author-X-Name-First: Ronen
Author-X-Name-Last: Gal-Or
Title: A Theory of ‘Why and How’ Audit Firms Choose to Specialize
Abstract: 
 We examine analytically the strategic path auditors take towards becoming industry specialists in terms of their investments in the acquisition of industry specific knowledge and their pricing behavior. We identify characteristics of the competitive environment that provide incentives to improve audit quality as accounting firms strive to achieve industry specialization. These characteristics include the extent of uniqueness of the accounting knowledge relevant to the industry and the extent to which it is difficult for auditors to differentiate themselves from competitors by using mechanisms other than industry specialization. We argue that both the initial investments in improving quality and the experience gained by attracting a bigger group of clients play a role in achieving specialization. Serving more clients fosters learning and cultivates enhanced industry expertise. In order to cultivate such learning, our model predicts that the auditor lowers his fees in early stages of his journey to achieving specialization in order to attract a larger group of new clients. In contrast to prior studies, our analysis examines factors influencing the supply of rather than the demand for industry specialization.
Journal: European Accounting Review
Pages: 819-842
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2021.1890631
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1890631
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# input file: REAR_A_1858915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Ryoonhee Kim
Author-X-Name-First: Ryoonhee
Author-X-Name-Last: Kim
Author-Name: Weiqing Luo
Author-X-Name-First: Weiqing
Author-X-Name-Last: Luo
Title: Customer Concentration and Earnings Management: Evidence from the Sarbanes–Oxley Act
Abstract: 
 This paper investigates whether the level of customer concentration can moderate the effect of the Sarbanes–Oxley Act of 2002 (SOX) on the earnings management of U.S. corporations. Large customers can act as a mechanism for reducing agency problems by pressuring supplier firms to be more efficient. Large customers may act as certifying agents for a supplier, and they may reduce information asymmetries about the supplier. These two channels suggest that customer concentration may affect corporate earnings management and hence generate heterogeneity in the effects of SOX. This paper documents that SOX has led firms with low customer concentration to reduce accrual-based earnings management more than those with high customer concentration have. The effect of customer concentration is especially pronounced when firms are involved in higher relationship-specific investments. The results are robust to accounting for endogeneity and alternative measures of discretionary accruals and customer concentration.
Journal: European Accounting Review
Pages: 905-936
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2020.1858915
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1858915
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# input file: REAR_A_1862684_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: David S. Bedford
Author-X-Name-First: David S.
Author-X-Name-Last: Bedford
Author-Name: Angelo Ditillo
Author-X-Name-First: Angelo
Author-X-Name-Last: Ditillo
Title: From Governing to Managing: Exploring Modes of Control in Private Equity Relationships
Abstract: 
 Despite the economic significance of private equity (PE) firms, there has been limited investigation into the control mechanisms they implement to manage relationships with their portfolio companies. Through a comparative field study, we describe the role and characteristics of controls implemented by PE firms and the contextual factors associated with the relative importance of different control mechanisms. Evidence shows that control mechanisms play an important role in directing the actions of portfolio companies and that there is significant variation between PE firms in terms of the combination of formal contracting, results, behavior, and social controls that are relied upon. We find that the primary factors associated with the choice of control combination are the equity arrangement and the perceived cognitive style of top management in the portfolio company. From our analysis, we derive a framework of four control combinations that are aligned to variations in these two factors. Our analysis also points to the potential interdependencies that arise between control mechanisms within each control combination.
Journal: European Accounting Review
Pages: 843-875
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2020.1862684
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1862684
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# input file: REAR_A_1866633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Jenny Chu
Author-X-Name-First: Jenny
Author-X-Name-Last: Chu
Author-Name: Annita Florou
Author-X-Name-First: Annita
Author-X-Name-Last: Florou
Author-Name: Peter F. Pope
Author-X-Name-First: Peter F.
Author-X-Name-Last: Pope
Title: Auditor University Education: Does it Matter?
Abstract: 
 We examine the implications of auditor education for audit quality and audit pricing. We exploit a novel institutional setting in the UK, where auditors major in many different degrees at university and signing auditors are identifiable. Using hand-collected data for a large sample of signing auditors, we establish two main findings. First, auditors whose degrees have a quantitative orientation are associated with higher accruals quality and higher audit fees than those with more qualitative degrees. Second, auditors with degrees directly relevant to accounting are also associated with higher accruals quality and increased audit fees relative to auditors with unrelated university degrees in qualitative subjects. Overall, our study provides evidence that heterogeneity in auditor education is associated with divergent audit outcomes.
Journal: European Accounting Review
Pages: 787-818
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2020.1866633
File-URL: http://hdl.handle.net/10.1080/09638180.2020.1866633
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# input file: REAR_A_1896370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Xi (Jason) Kuang
Author-X-Name-First: Xi (Jason)
Author-X-Name-Last: Kuang
Author-Name: Ziyang Li
Author-X-Name-First: Ziyang
Author-X-Name-Last: Li
Author-Name: Di Yang
Author-X-Name-First: Di
Author-X-Name-Last: Yang
Title: The Effects of Transparency and Voice on Managerial Decisions and Employee Effort in Hierarchical Organizations
Abstract: 
 Organizations often promote procedural justice by increasing the transparency of managerial decisions and encouraging employees’ voice in the decision process. We experimentally investigate how implementing these control policies in hierarchical organizations (owners vs. managers vs. employees) affects managers’ resource-allocation decision and employee effort. We predict and find that managers allocate more resources to employees, lowering owners’ return, when the allocation decision is transparent than when it is not transparent, despite being incentivized to increase owners’ return. Further, managers allocate more resources to employees when employees can voice their desired outcome than when employees’ voice is not allowed, but only if the allocation decision is transparent. Managers’ intention to exchange gifts with employees mediates these effects. We also find that, when employees have a voice, their effort is influenced by whether the allocation reaches their desired level. The implications of our findings for management control theory and practice are discussed.
Journal: European Accounting Review
Pages: 1003-1027
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2021.1896370
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1896370
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# input file: REAR_A_1897025_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Sinclear R. Ndemewah
Author-X-Name-First: Sinclear R.
Author-X-Name-Last: Ndemewah
Author-Name: Martin R. W. Hiebl
Author-X-Name-First: Martin R. W.
Author-X-Name-Last: Hiebl
Title: Management Accounting Research on Africa
Abstract: 
 This paper presents a systematic literature review of 109 empirical articles published between 1977 and 2017 in English and French on management accounting (MA) in Africa. Our main results are synthesized into seven larger themes and an evidence-based explanatory framework regarding MA in Africa. This framework suggests that MA in Africa is subject to various antecedents, some of which are specific to African countries and contexts. In addition, we find that current MA practices and systems may have mainly hampered, rather than fostered, performance and development in many African countries and enterprises. However, our review also shows overall that such critical views on MA in Africa are rather found in internationally ranked English-language journals, than in less esteemed English-language and Francophone journals. According to our analyses, the more critical findings can largely be explained by the overriding paradigm of neopatrimonialism, while the less critical and more positivist findings rather adhere to contingency thinking. Finally, the present review highlights a need for more research about MA in the informal African economy, the connection between MA and development-related sustainability issues, such as civil wars and environmental management, and the impact of the increased presence of China on MA in Africa.
Journal: European Accounting Review
Pages: 1029-1057
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2021.1897025
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1897025
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# input file: REAR_A_1890173_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Tantawy Moussa
Author-X-Name-First: Tantawy
Author-X-Name-Last: Moussa
Author-Name: Amr Kotb
Author-X-Name-First: Amr
Author-X-Name-Last: Kotb
Author-Name: Akrum Helfaya
Author-X-Name-First: Akrum
Author-X-Name-Last: Helfaya
Title: An Empirical Investigation of U.K. Environmental Targets Disclosure: The Role of Environmental Governance and Performance
Abstract: 
 Although an increasing number of companies have publicly declared environmental targets (ETs), scant research has been conducted in this area. This study, therefore, investigates the extent of corporate environmental targets disclosure (ETD) and empirically examines whether environmental governance and performance influence the ETD of companies in the U.K. during the 2005–2013 period. We find that firms show a large degree of variability and inconsistency in their reporting of ETs. The results indicate that U.K. firms, particularly those with high environmental sensitivity, tend to disclose symbolic soft or semi-hard ETs to manage stakeholder perceptions and legitimize their existence. Moreover, Global Reporting Initiative (GRI) guidelines, sustainability committees, and sustainability assurance show positive relationships with ETD. We also find that U.K. firms that perform well environmentally are likely to set and disclose hard ETs. These results support stakeholder, legitimacy, and impression management theories. We suggest that there is a need for regulations that will not only enhance the usefulness of ETD but also encourage companies to take serious proactive action to reduce negative environmental impacts, possibly creating ‘win-win’ solutions. Our findings have important implications for policy-makers and various stakeholder groups.
Journal: European Accounting Review
Pages: 937-971
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2021.1890173
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1890173
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# input file: REAR_A_1882318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Lukas Goretzki
Author-X-Name-First: Lukas
Author-X-Name-Last: Goretzki
Author-Name: Lukas Löhlein
Author-X-Name-First: Lukas
Author-X-Name-Last: Löhlein
Author-Name: Utz Schäffer
Author-X-Name-First: Utz
Author-X-Name-Last: Schäffer
Author-Name: Alexander Schmidt
Author-X-Name-First: Alexander
Author-X-Name-Last: Schmidt
Author-Name: Erik Strauss
Author-X-Name-First: Erik
Author-X-Name-Last: Strauss
Title: Exploring the Role of Metaphors in Social-Identity Construction: The Case of the German Controller
Abstract: 
 This study explores the rhetorical strategies underlying the discursive construction of the German controller social-identity in the mid-1970s. Previous research has shown how management accounting professionals struggle with different role models for the management accountant. This study complements this work by using the case of the German controller to investigate how broader ideas about the management accounting professional are discursively constructed. Based on qualitative interviews with contemporary witnesses as well as an in-depth analysis of articles published in the first practitioner controlling journal, we illustrate how metaphors enabled an interpretive viability and a process of professional inclusion. This, we argue, linked the emerging social-identity of the controller to both the macro-level discourse as well as to the situated experiences of individuals at the organizational level. In this way, we show how the social-identities of management accounting professionals can be constructed without traditional elements of codification regimes. Specifically, we uncover how metaphorical representations of a professional mission can foster the creation of an imagined community among a set of heterogeneous individuals, ideas, and concepts, which helps establish a sense of belonging, and ultimately, institutionalized legitimacy.
Journal: European Accounting Review
Pages: 877-903
Issue: 4
Volume: 31
Year: 2022
Month: 08
X-DOI: 10.1080/09638180.2021.1882318
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1882318
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# input file: REAR_A_2071960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jannis Bischof
Author-X-Name-First: Jannis
Author-X-Name-Last: Bischof
Author-Name: Nicolas Rudolf
Author-X-Name-First: Nicolas
Author-X-Name-Last: Rudolf
Author-Name: Wilhelm Schmundt
Author-X-Name-First: Wilhelm
Author-X-Name-Last: Schmundt
Title: How Do Non-Performing Loans Evolve Along the Economic Cycle? The Role of Macroeconomic Conditions and Legal Efficiency
Abstract: 
 We investigate the development of non-performing loans (NPL) held by European banks along the economic cycle. During the global financial crisis and the subsequent sovereign debt crisis, banks from all European countries experienced a substantial increase in NPLs. We find that these increases are mainly associated with macroeconomic determinants and characteristics of banks’ business models. Substantial differences across countries exist in the duration and efficiency of the NPL resolution after the crisis. We exploit cross-country and time-variant differences in insolvency and contract enforcement procedures to document that the outcome of NPL resolution is associated with the duration and the costs of insolvency and contract enforcement during the economic recovery phase. Our findings suggest that the design of a country’s legal regime can ensure a swift NPL resolution during the recovery phase while the build-up of NPLs during a crisis is mainly attributable to economic conditions.
Journal: European Accounting Review
Pages: 1149-1174
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2022.2071960
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2071960
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# input file: REAR_A_2046120_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Weixiao Wang
Author-X-Name-First: Weixiao
Author-X-Name-Last: Wang
Author-Name: Lijuan Zhang
Author-X-Name-First: Lijuan
Author-X-Name-Last: Zhang
Author-Name: Mark Wilson
Author-X-Name-First: Mark
Author-X-Name-Last: Wilson
Author-Name: Tejshree Kala
Author-X-Name-First: Tejshree
Author-X-Name-Last: Kala
Title: SEC Compensation-related Comment Letters and Excess CEO Compensation
Abstract: 
 We examine the impact of compensation-related comment letters (hereafter CCLs) issued by the U.S. Securities and Exchange Commission (the SEC) on excess chief executive officers’ (CEO) compensation. We find that changes in compensation in the two-year window surrounding the release of CCLs are negatively associated with the number of disclosure defects identified in CCLs, and that this association is driven by defects that relate directly to pay or the method by which it was determined, rather than broader governance- or readability-related defects. Cross-sectional analyses suggest that the negative impact of a CCL on excess CEO compensation is concentrated in firms with overpaid CEOs and less powerful CEOs. We further show that total disclosure defects, pay-related defects and governance-related defects are positively associated with the likelihood that the subject firm experiences low shareholder support in subsequent ‘say-on-pay’ votes, suggesting that enhanced visibility of excess pay and resulting shareholder activism may be one channel through which pressure is brought to bear on firms to reduce excess compensation.
Journal: European Accounting Review
Pages: 1089-1118
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2022.2046120
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2046120
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# input file: REAR_A_2085758_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Niclas Hellman
Author-X-Name-First: Niclas
Author-X-Name-Last: Hellman
Author-Name: Henrik Nilsson
Author-X-Name-First: Henrik
Author-X-Name-Last: Nilsson
Author-Name: Milda Tylaite
Author-X-Name-First: Milda
Author-X-Name-Last: Tylaite
Author-Name: Derya Vural
Author-X-Name-First: Derya
Author-X-Name-Last: Vural
Title: The Impact of an IFRS for SMEs-Based Standard on Financial Reporting Properties and Cost of Debt Financing: Evidence from Swedish Private Firms
Abstract: 
 In 2014, all larger Swedish private firms were required, at short notice, to adopt a new reporting standard (K3) based on IFRS for SMEs (2009 version). Using this shock to the reporting environment, we study the effects of the new reporting standard on groups’ financial reporting properties and cost of debt financing. We find that, following the introduction of K3, private groups exhibit reporting changes consistent with improved accounting quality; their financial statement comparability increases; and their cost of debt declines. Our results suggest that the cost-of-debt decline is related to changes in accounting numbers that are imputed to lending models. Our findings add to the literature on factors shaping private firms’ financial reporting and inform the ongoing discussion on accounting regulation for private firms.
Journal: European Accounting Review
Pages: 1175-1205
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2022.2085758
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2085758
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# input file: REAR_A_2118146_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Claudio Columbano
Author-X-Name-First: Claudio
Author-X-Name-Last: Columbano
Author-Name: Marco Trombetta
Author-X-Name-First: Marco
Author-X-Name-Last: Trombetta
Title: When do Governments ‘Go Dark'? Evidence on Governments’ Disclosure Choices in Periods of Uncertainty
Abstract: 
 We examine the effect of uncertainty shocks on the level of fiscal guidance – the guidance issued by governments on the expected evolution of the fiscal and economic outlook. Because uncertainty makes governments’ expectations less precise but potentially more valuable to users, we hypothesize that a disclosure dilemma leads governments to balance a higher demand for guidance with a higher probability of issuing inaccurate forecasts. Using natural disasters to randomize uncertainty shocks in our sample, we find that on average, governments issue less guidance in periods of uncertainty. The effect is driven by a reduction in the number of forecasts on the future evolution of balance sheet items, but only when governments have low refinancing needs and face a relatively quiet bond market. Instead, governments that maintain a stable level of guidance in periods of uncertainty appear to cater to coercive isomorphic pressures stemming from creditors. We further document that the relative ‘transparency’ of governments in periods of uncertainty is negatively related to indicators of fiscal reporting quality. Collectively, the evidence indicates that in the public sector, uncertainty leads to a trade-off between disclosure quantity and quality.
Journal: European Accounting Review
Pages: 1119-1148
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2022.2118146
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2118146
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# input file: REAR_A_1918564_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jeong-Bon Kim
Author-X-Name-First: Jeong-Bon
Author-X-Name-Last: Kim
Author-Name: Yi Si
Author-X-Name-First: Yi
Author-X-Name-Last: Si
Author-Name: Chongwu Xia
Author-X-Name-First: Chongwu
Author-X-Name-Last: Xia
Author-Name: Lei Zhang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhang
Title: Corporate Derivatives Usage, Information Environment, and Stock Price Crash Risk
Abstract: 
 This study investigates the effect of corporate derivatives usage on stock price crash risk. We test two competing hypotheses. Under the transparency hypothesis, derivatives usage reduces information opacity and lowers crash risk. Under the speculation hypothesis, derivatives usage exacerbates managerial short-termism and increases crash risk. We find evidence supporting the transparency hypothesis. This result is robust to sensitivity checks including a two-stage treatment model, difference-in-differences test, and subsample analysis. We further show that curbing bad news hoarding, curtailing overinvestment, and increasing breadth of ownership are potential channels through which derivatives usage mitigates crash risk. Additional tests on the effect of derivatives usage on likelihood of securities class-action litigation provide consistent results.
Journal: European Accounting Review
Pages: 1263-1297
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2021.1918564
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1918564
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# input file: REAR_A_2103013_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Benedikt Downar
Author-X-Name-First: Benedikt
Author-X-Name-Last: Downar
Author-Name: Jürgen Ernstberger
Author-X-Name-First: Jürgen
Author-X-Name-Last: Ernstberger
Author-Name: Christopher Koch
Author-X-Name-First: Christopher
Author-X-Name-Last: Koch
Author-Name: Martin Prott
Author-X-Name-First: Martin
Author-X-Name-Last: Prott
Title: Does Practitioner Research Help Auditors to Provide Higher Audit Quality and Improve their Reputation?
Abstract: 
 This paper investigates why auditors engage in practitioner research and whether these auditors subsequently provide higher audit quality and increase their reputation. Based on the theory of domain learning as well as insights from interviews, we argue that engaging in practitioner research could help auditors to acquire expertise relevant for performing the audit. Further, we draw on signaling theory and argue that this engagement might also contribute to the development of auditors’ reputation. We use the German setting for our study, where many auditors write professional articles, books, and book chapters. We observe that various motivational and support factors are important determinants for writing publications. We find that having prior publications is associated with higher audit quality, i.e. lower absolute discretionary accruals and a lower likelihood of restatements. Finally, we provide indications that having prior publications helps auditors to develop their reputation, i.e. achieving growth in their client portfolio.
Journal: European Accounting Review
Pages: 1059-1088
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2022.2103013
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2103013
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# input file: REAR_A_1916979_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rong He
Author-X-Name-First: Rong
Author-X-Name-Last: He
Author-Name: Le Luo
Author-X-Name-First: Le
Author-X-Name-Last: Luo
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Author-Name: Qingliang Tang
Author-X-Name-First: Qingliang
Author-X-Name-Last: Tang
Title: The Value Relevance of Corporate Investment in Carbon Abatement: The Influence of National Climate Policy
Abstract: 
 Although the literature on carbon accounting is growing, studies on the valuation impact of firms’ carbon abatement investment (CAI) are scarce, and the influence of country-specific climate policies is largely underexplored. Drawing on both the benefit and cost perspectives of the resource-based view, we predict that investors’ perceptions of the net benefits of CAI are contingent on national climate policies. Based on a comparative analysis of data from the US, the UK, and Australia, we find that CAI is viewed as value-destroying by investors in countries that do not have a stringent climate change policy. In contrast, CAI enhances firm value in jurisdictions that implement such policies. Additional analyses show that investors also consider the characteristics of CAI (i.e., the size and payback period) and the act and extensiveness of voluntary CAI disclosure when evaluating firm value. Our findings fill important gaps in the literature and have critical implications for policymakers, investors, managers, and other stakeholders who are responsible for the transition to a carbon-neutral economy.
Journal: European Accounting Review
Pages: 1233-1261
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2021.1916979
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1916979
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# input file: REAR_A_1919169_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Conny Overland
Author-X-Name-First: Conny
Author-X-Name-Last: Overland
Author-Name: Niuosha Samani
Author-X-Name-First: Niuosha
Author-X-Name-Last: Samani
Title: The Sheep Watching the Shepherd: Employee Representation on the Board and Earnings Quality
Abstract: 
 We investigate to what degree employee representatives contribute to the board’s monitoring of earnings quality. We argue that employee representatives have incentives to prevent earnings manipulations motivated by negotiation considerations. Furthermore, they seek risk reducing policies, have a long-term interest in their firm and possess firm-specific knowledge, which in turn can result in improved earnings quality. Employee representation also increases the diversity on the board, which can enhance the board of directors’ internal communication and monitoring. Using a sample of firms listed on the Stockholm Stock Exchange (2006–2014), we find lower abnormal accruals as well as less excessive R&D cuts in firms with employee representation, controlling for alternative model specifications and potential sample selection bias. Moreover, we find less income-decreasing abnormal accruals in firms with employee representatives during the 2010-2011 collective bargaining period. This study also reveals that earnings quality varies with the characteristics of employee representatives. Our findings contribute to the literature on boards’ monitoring and financial reporting quality, as it examines a less noticed aspect of board diversity, i.e. employee representation.
Journal: European Accounting Review
Pages: 1299-1336
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2021.1919169
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1919169
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# input file: REAR_A_2087706_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Vlad-Andrei Porumb
Author-X-Name-First: Vlad-Andrei
Author-X-Name-Last: Porumb
Author-Name: Yasemin Zengin-Karaibrahimoglu
Author-X-Name-First: Yasemin
Author-X-Name-Last: Zengin-Karaibrahimoglu
Author-Name: Shuo Wang
Author-X-Name-First: Shuo
Author-X-Name-Last: Wang
Author-Name: Gerald J. Lobo
Author-X-Name-First: Gerald J.
Author-X-Name-Last: Lobo
Title: Save Money to Lose Money? Implications of Opting Out of a Voluntary Audit Review for a Firm’s Cost of Debt*
Abstract: 
 An audit review (AR) is a mechanism used by boards to assess the quality of interim financial reports on a timely basis. In Canada, the AR is voluntary, with listed firms mandated to disclose when they choose to not purchase additional audit verification. Given the relatively low cost of an AR, opting out of it can be regarded as a negative signal, especially in the context of lenders’ sensitivity to downside risk. Using a sample of 7,585 firm-year observations from 1,616 public firms in Canada over the period 2004-2015, we document that firms without a voluntary AR have a higher cost of debt than firms with an AR. Furthermore, after firms opt out of the AR, the increase in the cost of debt is accompanied by a rise in discretionary abnormal accruals and managers’ stock-based compensation. Moreover, no-AR firms are more likely to reduce post-switch private borrowing and have lower equity analyst following. Our study is the first to document that although listed borrowers that opt out of an AR have a higher cost of debt financing, they are concurrently able to engage in more earnings management and grant their managers higher stock-based compensation because of lower external monitoring.
Journal: European Accounting Review
Pages: 1207-1232
Issue: 5
Volume: 31
Year: 2022
Month: 10
X-DOI: 10.1080/09638180.2022.2087706
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2087706
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# input file: REAR_A_1944890_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Charl De Villiers
Author-X-Name-First: Charl
Author-X-Name-Last: De Villiers
Author-Name: Charles H. Cho
Author-X-Name-First: Charles H.
Author-X-Name-Last: Cho
Author-Name: Michael J. Turner
Author-X-Name-First: Michael J.
Author-X-Name-Last: Turner
Author-Name: Riccardo Scarpa
Author-X-Name-First: Riccardo
Author-X-Name-Last: Scarpa
Title: Are Shareholders Willing to Pay for Financial, Social and Environmental Disclosure? A Choice-based Experiment
Abstract: 
 This study investigates whether shareholders are willing to pay for higher levels of corporate financial, social, and environmental disclosure. We conduct a choice-based conjoint experiment wherein 65 shareholders are asked to make 12 choices, choosing each time between two predetermined randomized combinations of different levels of investment returns, financial disclosure, environmental disclosure, and social disclosure. Results indicate that whereas shareholders are willing to pay for financial disclosure and environmental disclosure, they are unwilling to pay for social disclosure. Hence, the latter finding does not provide conclusive evidence on the overall question. However, the result that investors are willing to pay for non-financial disclosures – such as environmental information – constitutes our main contribution as prior research has not been able to provide strong evidence that investors are willing to forfeit investment returns in order to gain access to more corporate disclosures. The use of a choice-based conjoint experiment to examine these matters is novel and potentially opens avenues for future research. We believe our theoretical and practical contributions to be of interest to various stakeholders, including firms in making decisions about disclosure levels and regulators in assessing the need for disclosure regulation.
Journal: European Accounting Review
Pages: 1-28
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1944890
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1944890
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# input file: REAR_A_1942945_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Johan Graaf
Author-X-Name-First: Johan
Author-X-Name-Last: Graaf
Title: Can Sell-side Analysts Compete Using Public Information? Analysts as Frame-makers Revisited
Abstract: 
 This paper extends qualitative research on sell-side analysts by investigating how analysts compete against each other in the market for investment advice. The paper challenges the assumption that analysts must utilize private information in such competition, and investigates the role of a public setting – the quarterly earnings presentation – for analysts’ analytical work and client communication. The paper draws on an in-depth field study, comprising observations and interviews, and theorizes analysts as frame-makers when analyzing the materials. The study reveals how accounting reports place assumptions within the valuation practices of the share into question and risk ‘overflowing’ established calculative frames. The analysts utilized such uncertainty to enhance their dialogues with both clients and managers. Reacting to public information, therefore, served a central role for analysts’ competition, whereas proactively developing investment cases and acquiring private information were of less importance. These findings are discussed against recent developments of the sell-side industry’s remuneration models, and it is argued that experience has become an increasingly valuable quality. The paper also contributes to the perspective of analysts as frame-makers by shifting attention to overflows and how calculative frames develop through so-called ‘cold’ negotiations.
Journal: European Accounting Review
Pages: 141-167
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1942945
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1942945
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# input file: REAR_A_1936587_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hsihui Chang
Author-X-Name-First: Hsihui
Author-X-Name-Last: Chang
Author-Name: Erica E. Harris
Author-X-Name-First: Erica E.
Author-X-Name-Last: Harris
Author-Name: Shushu Jiang
Author-X-Name-First: Shushu
Author-X-Name-Last: Jiang
Author-Name: Zhiming Ma
Author-X-Name-First: Zhiming
Author-X-Name-Last: Ma
Title: Are Foreign Donors Good Monitors?
Abstract: 
 This paper examines whether and how foreign institutional donors play a monitoring role in the nonprofit sector. By analyzing 2567 Chinese nonprofit foundations from 2005 to 2014, we find that foundations with foreign institutional donors are associated with higher quality reporting. The effect is more pronounced for nonprofit foundations without established monitors in the form of large domestic donors, sophisticated donors, or national government oversight. These findings suggest that foreign institutional donors are indeed good monitors. Our results are robust to a myriad of alternative specifications and make important first steps in understanding the impact of foreign institutional donors in international giving, especially in developing countries.
Journal: European Accounting Review
Pages: 29-54
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1936587
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1936587
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# input file: REAR_A_1938622_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nishant Agarwal
Author-X-Name-First: Nishant
Author-X-Name-Last: Agarwal
Author-Name: Arkaja Chakraverty
Author-X-Name-First: Arkaja
Author-X-Name-Last: Chakraverty
Title: Growth Opportunities, Information Asymmetry, and Dividend Payout: Evidence from Mandatory IFRS Adoption
Abstract: 
 We study how the relationship between a firm’s growth opportunities and its dividend policies shifts in response to a reduction in information asymmetry between investors and firms. Existing literature suggests a negative relationship between growth opportunities and dividend payouts in the presence of information asymmetry. Using the mandatory adoption of IFRS (International Financial Reporting Standards) as an exogenous shock to the information environment of a firm, we document that the negative relationship between growth opportunities and dividend payout strengthens. This suggests IFRS adoption improves capital allocation by shifting dividend demand towards low-growth firms and reducing dividend demand from high-growth firms.
Journal: European Accounting Review
Pages: 113-139
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1938622
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1938622
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# input file: REAR_A_1945939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Michele Fabrizi
Author-X-Name-First: Michele
Author-X-Name-Last: Fabrizi
Author-Name: Elisabetta Ipino
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Ipino
Author-Name: Michel Magnan
Author-X-Name-First: Michel
Author-X-Name-Last: Magnan
Author-Name: Antonio Parbonetti
Author-X-Name-First: Antonio
Author-X-Name-Last: Parbonetti
Title: Do Foreign Cash Holdings Generate Uncertainty for Analysts?
Abstract: 
 This study examines whether foreign cash holdings increase the complexity of analysts’ forecasting tasks, thereby affecting their earnings forecasts’ properties. In forecasting future earnings, analysts face uncertainty in understanding the firm’s economic situation, especially if cash is held by foreign subsidiaries – given that it may be subject to investment inefficiencies. The lack of disclosure about foreign cash makes it difficult for analysts to anticipate and fully incorporate in their estimates the negative performance consequences of foreign cash holdings. Using a sample of U.S. multinational corporations and estimating their foreign cash holdings, we show that a firm with an average level of estimated foreign cash to total assets has a 12.5% higher forecast error and a 13.7% higher forecast dispersion (relative to firms without foreign cash). Moreover, we document that estimated foreign cash is negatively associated with future performance and that, in the presence of large amounts of foreign cash, financial analysts issue more optimistic forecasts. Cross-section analyses show that estimated foreign cash holdings affect analysts’ forecasts to a larger extent in the absence of disclosure, consistent with the idea that the lack of disclosure restricts financial analysts’ ability to fully incorporate in their estimates the effect of foreign cash.
Journal: European Accounting Review
Pages: 169-196
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1945939
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1945939
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# input file: REAR_A_1924812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Malte M. Max
Author-X-Name-First: Malte M.
Author-X-Name-Last: Max
Author-Name: Jacco L. Wielhouwer
Author-X-Name-First: Jacco L.
Author-X-Name-Last: Wielhouwer
Author-Name: Eelke Wiersma
Author-X-Name-First: Eelke
Author-X-Name-Last: Wiersma
Title: Estimating and Imputing Missing Tax Loss Carryforward Data to Reduce Measurement Error
Abstract: 
 The ability to reduce current and future taxable income with prior years' taxable losses is highly relevant for explaining firms' effective tax rates. Compustat data on the tax loss carryforward (TLCF) are, however, often missing. We propose a method to estimate values for the missing TLCF data instead of the common practice in the literature of imputing zero values. In order to assess the accuracy of our method, we compare our estimated TLCFs with both a random selection of 10-K data and Compustat data for firm-years where Compustat data is available. The results show that our estimated values align very closely with the reported data. We re-analyze two existing studies using these estimated values. With the first, we show that imputing our estimated values instead of zeros leads to a large decrease in measurement error. This reduces the risk that firms with missing data and low effective tax rates are incorrectly classified as tax aggressive. The second re-analysis shows that using our estimated TLCFs leads to economically and statistically different conclusions compared to imputing zeros. Using our estimated values thus increases the probability of correct inferences in studies that use Compustat TLCF data. The estimated values are available from https://doi.org/10.34894/N9J1WE.
Journal: European Accounting Review
Pages: 55-84
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1924812
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1924812
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# input file: REAR_A_1926301_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hyun A. Hong
Author-X-Name-First: Hyun A.
Author-X-Name-Last: Hong
Author-Name: Ji Woo Ryou
Author-X-Name-First: Ji Woo
Author-X-Name-Last: Ryou
Author-Name: Anup Srivastava
Author-X-Name-First: Anup
Author-X-Name-Last: Srivastava
Title: Financial Statement Comparability and Corporate Tax Strategy
Abstract: 
 We investigate whether a firm’s financial statement comparability is associated with the firm’s tax strategy. We hypothesize that external observers (e.g. press, shareholders, analysts, and tax authorities) can better detect a firm’s atypical tax strategy when the firm has high financial statement comparability with its industry peers. Detection and its consequent penalties should restrain firm managers from choosing tax strategies that deviate significantly from those of industry peers. Using firms’ uncertain tax benefits (UTBs) as a proxy for tax avoidance, we find that the UTBs of firms with high financial statement comparability move toward their industry peers in subsequent periods. Results suggest that comparability reduces tax aggressiveness for high tax-avoidance firms and enhances tax aggressiveness for low tax-avoidance firms, in comparison with those of industry peers. Overall, these findings indicate a strong within-industry harmonization in tax avoidance for firms with high financial statement comparability.
Journal: European Accounting Review
Pages: 85-112
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1926301
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1926301
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# input file: REAR_A_1947337_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Le Zhao
Author-X-Name-First: Le
Author-X-Name-Last: Zhao
Title: The Effect of Tax Authority Enforcement on Earnings Informativeness
Abstract: 
 This paper examines the impact of tax authority monitoring and enforcement on earnings informativeness. Using a staggered difference-in-differences design, I exploit the introduction of a new tax administration information system as a proxy for increased tax enforcement. The results imply that the informativeness of earnings improves with an increase in tax authority enforcement. Furthermore, I find that these results are concentrated in firms that are tax noncompliant, firms that are profitable and firms that have more severe income diversion and downward earnings manipulation. Additional tests show that tax expenses are more informative when tax enforcement increases. Overall, this study suggests that tax authority oversight engenders a positive effect on earnings informativeness by reducing the noise in earnings signals.
Journal: European Accounting Review
Pages: 197-216
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1947337
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1947337
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# input file: REAR_A_1950022_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sarini Azizan
Author-X-Name-First: Sarini
Author-X-Name-Last: Azizan
Author-Name: Greg Shailer
Author-X-Name-First: Greg
Author-X-Name-Last: Shailer
Title: Does Corporate Citizenship Influence Auditors’ Perceptions of the Credibility of Management in Relation to Financial Reports?
Abstract: 
 This paper examines whether the distributional fairness dimensions of corporate citizenship influence auditors’ assessments of source credibility in relation to financial reporting, as reflected in audit fees. Grounded in the traditional view of corporate citizenship as social contributions that reflect distributional fairness, the analysis uses three measures that are not widely considered in the corporate social responsibility literature: tax fairness, wage fairness and philanthropy. We obtain robust evidence that tax fairness and philanthropy, and some evidence that wage fairness, are negatively related to audit fees. It appears that the philanthropy effect may be dominated by domestic philanthropy. Overall, the results are consistent with the proposition that auditors attach more credibility (or less risk of misstatement) to management assertions when a corporation demonstrates a higher level of corporate citizenship in terms of distributional fairness.
Journal: European Accounting Review
Pages: 217-238
Issue: 1
Volume: 32
Year: 2023
Month: 1
X-DOI: 10.1080/09638180.2021.1950022
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1950022
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# input file: REAR_A_297359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: The Editors
Title: Book Reviews
Journal: European Accounting Review
Pages: 193-202
Issue: 1
Volume: 17
Year: 2008
Month: 5
X-DOI: 10.1080/09638180801971939
File-URL: http://hdl.handle.net/10.1080/09638180801971939
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# input file: REAR_A_297365_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: The Editors
Title: CALL FOR PAPERS
Journal: European Accounting Review
Pages: 207-208
Issue: 1
Volume: 17
Year: 2008
Month: 5
X-DOI: 10.1080/09638180801971996
File-URL: http://hdl.handle.net/10.1080/09638180801971996
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# input file: REAR_A_297370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: The Editors
Title: CALL FOR PAPERS
Journal: European Accounting Review
Pages: 203-205
Issue: 1
Volume: 17
Year: 2008
Month: 5
X-DOI: 10.1080/09638180801972044
File-URL: http://hdl.handle.net/10.1080/09638180801972044
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# input file: REAR_A_302938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: The Editors
Title: Editorial
Journal: European Accounting Review
Pages: 1-4
Issue: 1
Volume: 17
Year: 2008
Month: 5
X-DOI: 10.1080/09638180802027707
File-URL: http://hdl.handle.net/10.1080/09638180802027707
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# input file: REAR_A_311860_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: The Editors
Title: IPA 2009 announcement
Journal: European Accounting Review
Pages: 209-209
Issue: 1
Volume: 17
Year: 2008
Month: 5
X-DOI: 10.1080/09638180802116948
File-URL: http://hdl.handle.net/10.1080/09638180802116948
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# input file: REAR_A_1963795_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Elaine Henry
Author-X-Name-First: Elaine
Author-X-Name-Last: Henry
Author-Name: James Thewissen
Author-X-Name-First: James
Author-X-Name-Last: Thewissen
Author-Name: Wouter Torsin
Author-X-Name-First: Wouter
Author-X-Name-Last: Torsin
Title: International Earnings Announcements: Tone, Forward-looking Statements, and Informativeness
Abstract: 
 This paper examines two attributes of earnings press releases issued by firms cross-listed on U.S. stock exchanges: the tone and frequency of forward-looking statements. A more conservative tone and a greater proportion of forward-looking statements are often viewed as contributing to more credible disclosures. Our analysis indicates that culturally and institutionally more distant firms are generally less positive in their disclosures and include more forward-looking statements than U.S. firms. Further, we find that the tone and frequency of forward-looking statements of cross-listed firms’ earnings announcements are more informative than those of U.S. firms in predicting future firm performance, and this informativeness generally increases with the cultural and institutional distance of the home country from the U.S. In explaining market reaction to earnings announcements, tone informativeness in particular increases with the cultural distance of the home country from the U.S. Overall, in the context of home bias theory, we interpret our findings as suggesting that a cautious disclosure tone and more forward-looking information serve to mitigate potential home bias-related credibility and asymmetric information concerns arising from cultural and institutional distance.
Journal: European Accounting Review
Pages: 275-309
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1963795
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1963795
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# input file: REAR_A_1972325_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Carmen Aranda
Author-X-Name-First: Carmen
Author-X-Name-Last: Aranda
Author-Name: Javier Arellano
Author-X-Name-First: Javier
Author-X-Name-Last: Arellano
Author-Name: Antonio Dávila
Author-X-Name-First: Antonio
Author-X-Name-Last: Dávila
Title: Budgeting in Public Organizations: The Influence of Managerial and Political Aspects
Abstract: 
 We study the use of budgets in public organizations with governance shaped by democratic structures. In particular, we examine political variables – electoral cycle, majority government, and ideology – and managerial variables – past performance and peer performance – in the context of city governments. Using data from 170 municipalities over a period of seven years (two electoral cycles), the study documents the simultaneous effect of these two types of variables. We find evidence that budget increases are more pronounced right before and right after elections (political). Furthermore, our findings suggest that ideology affects not only resource allocation decisions but also how municipalities manage the budgeting process; indicating the potential role of ideology in management practices (political). We also find evidence for ratcheting (managerial): the deviation between last period’s actual and budgeted performance is associated with upcoming budgets. However, this effect is symmetric, in contrast to the more common asymmetric structure previously documented in for-profit organizations. Relative target setting (managerial) is also present in public organizations and varies with the relative debt level of the city. The findings of this study are also informative to for-profit organizations as they open up their governance to more democratic structures and begin to experience the competing managerial and political logics in interacting with stakeholders.
Journal: European Accounting Review
Pages: 345-377
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1972325
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1972325
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# input file: REAR_A_1983447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ting-Chiao Huang
Author-X-Name-First: Ting-Chiao
Author-X-Name-Last: Huang
Author-Name: Stephanie Hairston
Author-X-Name-First: Stephanie
Author-X-Name-Last: Hairston
Title: Analyst Revenue Forecasts and Firm Revenue Misstatements
Abstract: 
 Earnings and revenue are ranked as the two most important performance measures reported to outsiders. However, prior literature primarily focuses on management’s incentives and willingness to manipulate earnings to meet earnings benchmarks. Increasingly, analysts are releasing forecasts of financial items in addition to aggregate earnings, with revenue forecasts being the most common. We posit that management may be under similar pressure to meet revenue forecasts given their impact on firm value. As such, we examine whether analyst revenue forecasts aggravate revenue misstatements. We find that revenue misstatements are positively associated with revenue forecasts and the association is more pronounced when beating revenue forecasts is more important. We also show that several characteristics of revenue forecasts aggravate management pressure and thus the likelihood of revenue misstatements. Further analyses suggest that firms use accruals management rather than real earnings management to inflate reported revenue. Our findings may be useful to academics, investors, and regulators in examining the relationship between analyst revenue forecasts and firms’ financial reporting behavior.
Journal: European Accounting Review
Pages: 379-414
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1983447
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1983447
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# input file: REAR_A_1986091_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sven Hartlieb
Author-X-Name-First: Sven
Author-X-Name-Last: Hartlieb
Title: Consumer Sentiment, Managerial Expectations and Resource Adjustment Decisions
Abstract: 
 This study presents evidence on the relationship between consumer sentiment and resource adjustment decisions. Consumer sentiment is an important piece of economic information, accepted as a reliable predictor of future economic activity, which is why it should influence managerial expectations underlying future-oriented resource adjustment decisions. In line with these considerations, I find that managers are more likely to retain slack resources following a decrease in sales when consumer sentiment about future business prospects is improving. Managers seem to adopt consumers’ optimism about future economic prospects by deciding to stall resource adjustments until sales recover to avoid current and future adjustment costs, thus increasing firms’ level of sticky cost behavior. Together with various additional analyses, this study provides new insights into managers’ resource adjustment decision-making process and enhances our understanding of the information upon which managers form their expectations.
Journal: European Accounting Review
Pages: 481-511
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1986091
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1986091
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# input file: REAR_A_1986090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jeff Zeyun Chen
Author-X-Name-First: Jeff Zeyun
Author-X-Name-Last: Chen
Author-Name: Anastasios Elemes
Author-X-Name-First: Anastasios
Author-X-Name-Last: Elemes
Author-Name: Gerald J. Lobo
Author-X-Name-First: Gerald J.
Author-X-Name-Last: Lobo
Title: David versus Goliath: The Relation between Auditor Size and Audit Quality for U.K. Private Firms
Abstract: 
 We examine the relation between auditor size and audit quality for a sample of U.K. private firms. Private firms prioritize tax considerations over reducing information asymmetry in their financial reporting. We find that Big 4’s private clients exhibit higher levels of discretionary accruals and lower precision of accrual estimates than non-Big 4’s private clients. Although Big 4 auditors are less tolerant of income-increasing earnings management, they leave more room for downward earnings management and their private clients are able to engage in greater tax avoidance. These results are stronger for standalone firms than for business groups as the latter’s greater demand for stakeholder communication motivates Big 4 auditors to increase audit quality. Collectively, our evidence suggests that Big 4 auditors adjust audit quality in a more competitive segment of the audit market where client firms generally perceive the benefit from tax minimization to outweigh the cost of reduced earnings informativeness.
Journal: European Accounting Review
Pages: 447-480
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1986090
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1986090
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# input file: REAR_A_1951316_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thomas Hoppe
Author-X-Name-First: Thomas
Author-X-Name-Last: Hoppe
Author-Name: Deborah Schanz
Author-X-Name-First: Deborah
Author-X-Name-Last: Schanz
Author-Name: Susann Sturm
Author-X-Name-First: Susann
Author-X-Name-Last: Sturm
Author-Name: Caren Sureth-Sloane
Author-X-Name-First: Caren
Author-X-Name-Last: Sureth-Sloane
Title: The Tax Complexity Index – A Survey-Based Country Measure of Tax Code and Framework Complexity
Abstract: 
 This paper introduces the Tax Complexity Index (TCI). The TCI comprehensively measures the complexity of countries’ corporate income tax systems faced by multinational corporations. It builds on surveys of highly experienced tax consultants of the largest international tax services networks. The TCI is composed of a tax code subindex covering tax regulations and a tax framework subindex covering tax processes and features. For a sample of 100 countries, we find that tax complexity varies considerably across countries, and tax code and framework complexity also vary within countries. Among others, tax complexity is strongly driven by the complexity of transfer pricing regulations in the tax code and tax audits in the tax framework. When analyzing the associations with other country characteristics, we identify different patterns. For example, we find a positive association of GDP with tax code complexity and a negative association with tax framework complexity, suggesting that highly economically developed countries tend to have more complex tax codes and less complex frameworks. Overall, the tax complexity measures can serve as valuable proxies in future research and supportive tools for a variety of firm decisions and national and international tax policy discussions.
Journal: European Accounting Review
Pages: 239-273
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1951316
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1951316
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# input file: REAR_A_1983854_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Amir Amel-Zadeh
Author-X-Name-First: Amir
Author-X-Name-Last: Amel-Zadeh
Author-Name: Martin Glaum
Author-X-Name-First: Martin
Author-X-Name-Last: Glaum
Author-Name: Thorsten Sellhorn
Author-X-Name-First: Thorsten
Author-X-Name-Last: Sellhorn
Title: Empirical Goodwill Research: Insights, Issues, and Implications for Standard Setting and Future Research
Abstract: 
 This paper reviews the empirical literature on the determinants and decision usefulness of goodwill reporting. We structure our discussion around five guiding questions that reflect longstanding policy issues: recognition, initial and subsequent measurement, disclosure, and the role of governance and monitoring. In addition to summarizing the findings, we assess the validity of the evidence. Our review indicates that goodwill amounts, on average, are associated with the underlying economics of the combining firms but are also shaped by managerial incentives and institutional context. Empirical research does not allow us to conclude whether current goodwill accounting rules provide for an optimal degree of discretion. Nonetheless, our analysis yields a number of policy implications and research suggestions. In addition to pointing out new research questions that could be addressed by further archival research, we advocate reproduction studies to test the generalizability of existing findings across contexts, and we encourage standard setters to initiate quasi-experiments to generate causal evidence and to render policymaking more accountable. We further suggest that researchers make more use of behavioral theories and non-archival methods to elucidate the motives and interactions of decision-makers in goodwill accounting.
Journal: European Accounting Review
Pages: 415-446
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1983854
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1983854
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# input file: REAR_A_1989317_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Matthias Regier
Author-X-Name-First: Matthias
Author-X-Name-Last: Regier
Title: Does Longer Duration of Executive Compensation Foster Investment Efficiency?
Abstract: 
 In this paper, I examine whether longer duration of executive compensation influences investment decisions. I exploit a regulation designed to foster long-term orientation in executive compensation as an exogenous trigger to lengthen executives' incentive duration. I find that treated firms reduce their abnormal investment relative to control firms, implying an increase in investment efficiency. These results are robust to different measures of investment, several models of expected investment, and different plausible control groups. The treatment effect is economically significant, as the reduction in abnormal investment amounts to about 10% of mean investment. It appears that a mandated longer duration has the greatest effect on investment efficiency in firms that had a low degree of compensation committee independence before the shock. Further, it seems that the lower abnormal investment stems to a greater extent from reductions in over-investment.
Journal: European Accounting Review
Pages: 513-546
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1989317
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1989317
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# input file: REAR_A_1969260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yu-Tzu Chang
Author-X-Name-First: Yu-Tzu
Author-X-Name-Last: Chang
Author-Name: Dan N. Stone
Author-X-Name-First: Dan N.
Author-X-Name-Last: Stone
Title: Impression Management in Public Sector Audit Proposals: Language and Fees
Abstract: 
 We adapt impression management theory to investigate: (1) whether governmental audit proposals include the values of ‘professionalism’ (i.e. independence and competence) and ‘commercialism’ (i.e. client cooperation, auditor trustworthiness, client satisfaction, commercial interests), and, (2) the relations of audit proposal language and contextual influences on proposed audit fees and proposal success. The results suggest that proposals accord with audit firms’ market strategies. Compared to other firms, proposals from small, non-specialist firms use more commercial language, while proposals from governmental specialist firms use more competence language. The results also suggest that the market for US public sector audits includes many low cost, low quality firms; specifically, the modal proposal (41.2%) includes high use of commercialism language and low proposed audit fees. We also find that audit firms propose higher audit fees in US states with a weak governmental internal auditing office, and, that greater use of commercial language correlates with higher rates of proposal success, but only in US states with weak governmental internal auditing functions. The finding of inter-relations between proposal language, the strength of governmental internal audit functions, and proposed fees suggests the value of considering multiple influences on the quality of the public sector financial controls.Acronyms : American Institute of Certified Public Accountants (AICPA) ; Certified Public Accountant (CPA) ; Corporate social responsibility (CSR) ; European Court of Auditors (ECA) ; European Union (EU) ; fixed effects (FE) ; General Accountability Office (GAO) ; Governmental Financial Officers Association (GFOA) ; Independent Regulatory Board for Auditors (IRBA) ; Institute of Internal Auditors (IIA) ; International Accounting Education Standards Board (IAESB) ; International Federation of Accountants (IFAC) ; International Organization of Supreme Audit Institutions (INTOSAI) ; National Association of State Auditors ; Comptrollers and Treasurers (NASACT) ; not-for-profit (NFP) entities ; natural language processing (NLP) ; Office of Management and Budget (OMB) ; Request for proposal (RFP) ; Two-stage least squares (2SLS) ; United Kingdom (UK) ; United States (US)
Journal: European Accounting Review
Pages: 311-343
Issue: 2
Volume: 32
Year: 2023
Month: 03
X-DOI: 10.1080/09638180.2021.1969260
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1969260
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# input file: REAR_A_2137221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mikko Ranta
Author-X-Name-First: Mikko
Author-X-Name-Last: Ranta
Author-Name: Mika Ylinen
Author-X-Name-First: Mika
Author-X-Name-Last: Ylinen
Author-Name: Marko Järvenpää
Author-X-Name-First: Marko
Author-X-Name-Last: Järvenpää
Title: Machine Learning in Management Accounting Research: Literature Review and Pathways for the Future
Abstract: 
 This paper explores the possibilities of employing machine learning (ML) methods and new data sources in management accounting (MA) research. A review of current accounting and related research reveals that ML methods in MA are still in their infancy. However, a review of recently published ML research from related fields reveals several new opportunities to utilize ML in MA research. We suggest that the most promising areas to employ ML methods in MA research lie in (1) the exploitation of the rich potential of various textual data sources; (2) the quantification of qualitative and unstructured data to create new measures; (3) the creation of better estimates and predictions; and (4) the use of explainable AI to interpret ML models in detail. ML methods can play a crucial role in MA research by creating, developing, and refining theories through induction and abduction, as well as by providing tools for interventionist studies.
Journal: European Accounting Review
Pages: 607-636
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2022.2137221
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2137221
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# input file: REAR_A_2060845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Margaret Abernethy
Author-X-Name-First: Margaret
Author-X-Name-Last: Abernethy
Author-Name: Kevin Chin
Author-X-Name-First: Kevin
Author-X-Name-Last: Chin
Author-Name: Sujay Nair
Author-X-Name-First: Sujay
Author-X-Name-Last: Nair
Author-Name: Naomi Soderstrom
Author-X-Name-First: Naomi
Author-X-Name-Last: Soderstrom
Title: Can Technology-Enabled Advanced Monitoring Systems Influence Individual Performance and Team Dynamics?
Abstract: 
 Recent advancements in technology have resulted in more sophisticated employee monitoring systems. We study the impact of a technology-enabled advanced monitoring system deployed by the National Basketball Association and explore whether it serves a decision-facilitating role and/or a decision-influencing role at the individual-level. We find that the system impacts players’ playing strategy (i.e. a decision-facilitating role), but not their effort (i.e. a decision-influencing role). The impact on playing strategy increases average individual performance across the entire sample. We also find that the effect is somewhat greater for lower ability individuals in the first year of implementation. At the team-level, we find that system adoption is associated with a smaller dispersion of effort and a greater degree of specialization among individuals in a team. Our study has implications for the use of technology-enabled advanced monitoring systems in a range of industries.
Journal: European Accounting Review
Pages: 577-605
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2022.2060845
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2060845
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# input file: REAR_A_1993949_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pengguo Wang
Author-X-Name-First: Pengguo
Author-X-Name-Last: Wang
Title: A Modified Ohlson (1995) Model and Its Applications
Abstract: 
 In this paper, I explore a modified Ohlson (1995) model, which incorporates future positive net present value (NPV) investments. I first utilize an approach to simultaneously estimate the parameters in the linear information dynamic alongside the cost of equity capital, then evaluate the model’s performance in equity valuation and return prediction. Contrary to the systematic undervaluation of the Ohlson (1995) model reported in prior literature, I find that there is no systematic undervaluation of stock prices by using the modified Ohlson (1995) model. The out-of-sample median valuation bias estimated with this new approach is only 3.3% compared with 34.8% achieved when carrying out the estimation using existing methods. I also find that using a time-varying cost of equity capital reduces valuation bias and improves valuation accuracy. Furthermore, the expected return estimates developed from the model generate a monotonic decile ranking of future realized stock returns.
Journal: European Accounting Review
Pages: 663-691
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2021.1993949
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1993949
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# input file: REAR_A_2213258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Matthias D. Mahlendorf
Author-X-Name-First: Matthias D.
Author-X-Name-Last: Mahlendorf
Author-Name: Melissa A. Martin
Author-X-Name-First: Melissa A.
Author-X-Name-Last: Martin
Author-Name: David Smith
Author-X-Name-First: David
Author-X-Name-Last: Smith
Title: Innovative Data – Use-cases in Management Accounting Research and Practice
Abstract: 
 This editorial provides an overview of innovative data and use-cases for management accounting research and practice. We cover data such as natural language, crowd-sourced ratings on online platforms, videos, geolocation, and satellite data. Moreover, we develop a matrix of new data sources and management accounting research topics and highlight combinations of data and topics that represent promising starting points for future research. Our goal is to inspire future research by showing the rich field of innovative data and the diversity of applications that are related to managerial decision-making and management control.
Journal: European Accounting Review
Pages: 547-576
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2023.2213258
File-URL: http://hdl.handle.net/10.1080/09638180.2023.2213258
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# input file: REAR_A_2000458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anna Young-Ferris
Author-X-Name-First: Anna
Author-X-Name-Last: Young-Ferris
Author-Name: John Roberts
Author-X-Name-First: John
Author-X-Name-Last: Roberts
Title: ‘Looking for Something that Isn’t There’: A Case Study of an Early Attempt at ESG Integration in Investment Decision Making
Abstract: 
 The focus of this paper is on the challenges and potentials of ESG integration which are explored through a case study of the use of ESG data in investment analysis and decision making by an equity investment team. Whilst current regulatory efforts place faith in the development of common ESG disclosure standards to resolve ‘impediments’ to ESG integration, our case points to more fundamental discontinuities between financial and ESG accounting inscriptions that question both its feasibility and adequacy. In relation to feasibility, the case points to the ambiguity of ESG issues in terms of their possible value relevance, to how ESG data quantification and aggregation readily occludes its significance, and to the difficulty of attaching a monetary value to ESG data in either an aggregated or disaggregated form. Consideration of ESG issues is then further constrained by the spatial boundary of the ‘entity’ that financial accounting performs, and the short temporal ‘horizon’ of the financial projections of the entity’s future performance that it enables. We conclude that, whilst increasingly attractive to investors, the UNPRI’s limiting of ESG ‘risks’ to those that are potentially ‘financially material’, may itself be creating a false sense of security both for investors and their clients.
Journal: European Accounting Review
Pages: 717-744
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2021.2000458
File-URL: http://hdl.handle.net/10.1080/09638180.2021.2000458
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# input file: REAR_A_2138934_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dennis D. Fehrenbacher
Author-X-Name-First: Dennis D.
Author-X-Name-Last: Fehrenbacher
Author-Name: Alessandro Ghio
Author-X-Name-First: Alessandro
Author-X-Name-Last: Ghio
Author-Name: Martin Weisner
Author-X-Name-First: Martin
Author-X-Name-Last: Weisner
Title: Advice Utilization From Predictive Analytics Tools: The Trend is Your Friend
Abstract: 
 Management decision-making is increasingly supported by new data types and advanced predictive analytics tools. Prior research suggests that the inclusion of new data types – such as social media data – in forecasting models can improve forecasting. We explore whether managers’ operational decisions differ depending on the data type used by a predictive analytics tool and the consistency of the trend with prior developments. Experimental results show that the extent to which managers use predictions from analytics tools is a joint function of the data type utilized and trend consistency. If a trend predicted by an analytics tool reveals a downward break from prior positive developments (i.e., an unexpected negative trend), managers utilize predictions less if they are mainly based on social media data rather than on traditional accounting data. If a trend predicted by an analytics tool continues a prior positive trend, we do not find such a difference. In supplemental analyses, we explore managers’ comfort level and related attitude concerning the data types and find that only in the trend-breaking condition mediation effects are observed. Together, our findings have important implications for the management accounting function that needs to embed knowledge about managers’ information utilization to facilitate decision-making.
Journal: European Accounting Review
Pages: 637-662
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2022.2138934
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2138934
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# input file: REAR_A_2000459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nan-Ting Kuo
Author-X-Name-First: Nan-Ting
Author-X-Name-Last: Kuo
Author-Name: Cheng-Few Lee
Author-X-Name-First: Cheng-Few
Author-X-Name-Last: Lee
Title: Political Institutions and Cost Stickiness: International Evidence
Abstract: 
 This study explores the association between political institutions and cost stickiness. Prior literature suggests that cost stickiness is driven by the economic implication that pursues firm profits and the agency implication that pursues managers’ benefits. We argue that political institutions affect cost stickiness by constraining government expropriation, which in turn affects the relative importance between these two implications on managerial resource decisions. Using an international sample, we find that strong political institutions are associated with higher cost stickiness. Furthermore, cost stickiness is more likely driven by the economic implication when political institutions are strong and by the agency implication when political institutions are weak, implying that cost stickiness is more likely value-enhancing when political institutions are strong. Mediation analysis reveals that political institutions affect cost stickiness through contract enforcement and corruption control. Our study contributes to the cost behavior literature and the literature about how political institutions affect corporate investment.
Journal: European Accounting Review
Pages: 745-778
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2021.2000459
File-URL: http://hdl.handle.net/10.1080/09638180.2021.2000459
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# input file: REAR_A_1997780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juhani Vaivio
Author-X-Name-First: Juhani
Author-X-Name-Last: Vaivio
Author-Name: Marko Järvenpää
Author-X-Name-First: Marko
Author-X-Name-Last: Järvenpää
Author-Name: Antti Rautiainen
Author-X-Name-First: Antti
Author-X-Name-Last: Rautiainen
Title: Accounting in Identity Regulation: Producing the Appropriate Worker
Abstract: 
 It is acknowledged that identity regulation in organizations relies on discursive resources. This study moves beyond discourse – illustrating how discourse and accounting measurements are mobilized together in revising identity. Measurement produces persistence, clarity, transparency and comparability, as well as direction: Accounting’s quantitative knowledge ‘amplifies’ discourse. We explain the Great Alliance between words and numbers in a case study addressing events in an organization’s transformation. This extends our understanding of what takes place on the interface between identity and accounting.
Journal: European Accounting Review
Pages: 693-716
Issue: 3
Volume: 32
Year: 2023
Month: 05
X-DOI: 10.1080/09638180.2021.1997780
File-URL: http://hdl.handle.net/10.1080/09638180.2021.1997780
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# input file: REAR_A_2043761_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shams Pathan
Author-X-Name-First: Shams
Author-X-Name-Last: Pathan
Author-Name: Mamiza Haq
Author-X-Name-First: Mamiza
Author-X-Name-Last: Haq
Author-Name: Jacob Morgan
Author-X-Name-First: Jacob
Author-X-Name-Last: Morgan
Title: CEO Pay Gaps and Bank Risk-Taking
Abstract: 
 Bank executives’ substantial compensation is seen as one of the factors that contributed to the risk-taking that led to the 2008–2009 financial crisis. We test whether and how pay disparities between CEO and non-CEO executives—the so-called CEO pay gap—influences risk-taking at publicly traded commercial banks in the U.S. We find strong evidence that larger CEO pay gaps are associated with lower risk levels, improved financial performance, and greater information transparency. Our findings are unique to banks and are consistent with the CEO power proposition. We corroborate this proposition by linking larger pay gaps to increased CEO power and low CEO turnover-performance sensitivity. Our results imply that placing absolute limits on bank CEO pay would likely result in increased bank risk-taking.
Journal: European Accounting Review
Pages: 935-964
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2043761
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2043761
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# input file: REAR_A_2026238_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anh Viet Pham
Author-X-Name-First: Anh Viet
Author-X-Name-Last: Pham
Author-Name: Mia Hang Pham
Author-X-Name-First: Mia Hang
Author-X-Name-Last: Pham
Author-Name: Cameron Truong
Author-X-Name-First: Cameron
Author-X-Name-Last: Truong
Title: Audit Quality: An Analysis of Audit Partner Cultural Proximity to Client Executives
Abstract: 
 We find that cultural proximity between auditors and CFOs is associated with audit quality. We use recent mandated PCAOB disclosures of engagement audit partners to construct cultural proximity between engagement audit partners and client executives. Building on an extensive literature on homophily in social connections, we hypothesize that when an engagement audit partner is culturally close to client executives, the accounting negotiation is more efficient, resulting in higher audit quality. Consistent with this prediction, we find that audited earnings are of higher quality when the engagement audit partner is culturally close to the CFO. We, however, do not find similar evidence when the engagement audit partner is culturally close to the CEO. Our findings are consistent across several alternative measures of audit quality and cultural proximity. These findings suggest that interpersonal factors from the auditor–client relationship are important for audit outcomes. Our study supports the PCAOB’s position that mandatory disclosures of engagement audit partner identity are helpful in understanding audit quality.
Journal: European Accounting Review
Pages: 841-873
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2026238
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2026238
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# input file: REAR_A_2044364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Herman van Brenk
Author-X-Name-First: Herman
Author-X-Name-Last: van Brenk
Author-Name: Barbara Majoor
Author-X-Name-First: Barbara
Author-X-Name-Last: Majoor
Title: Evidence on the Effects of an Audit Quality Bonus
Abstract: 
 Audit quality rewards might create incentives for auditors to enhance their performance. We examine whether the effects of an audit quality bonus are contingent on appetitive motivation and engagement pressure. Appetitive motivation is a personality trait of goal pursuits that consists of drive, reward responsiveness, and fun seeking. Engagement pressure is the conflict between meeting time budgets and complying with auditing standards. Relying on cognitive evaluation theory, we expect that an audit quality bonus increases audit quality for auditors with lower appetitive motivation and decreases audit quality for auditors with higher appetitive motivation when engagement pressure is low. When engagement pressure is high, the effects of an audit quality bonus are difficult to predict. In an experiment with 420 auditors, we manipulate an audit quality bonus and the level of engagement pressure and measure appetitive motivation. The results are consistent with our expectations in the setting of low engagement pressure, but only for drive. In the setting of high engagement pressure, we find no effects for an audit quality bonus. When considering audit quality rewards, it is important to acknowledge the typical audit environment of conflicting pressures and the level of drive that both can constrain these rewards’ effectiveness.
Journal: European Accounting Review
Pages: 965-994
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2044364
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2044364
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# input file: REAR_A_2049334_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenxia Ge
Author-X-Name-First: Wenxia
Author-X-Name-Last: Ge
Author-Name: Jeong-Bon Kim
Author-X-Name-First: Jeong-Bon
Author-X-Name-Last: Kim
Author-Name: Tiemei Li
Author-X-Name-First: Tiemei
Author-X-Name-Last: Li
Author-Name: Sanjian William Zhang
Author-X-Name-First: Sanjian William
Author-X-Name-Last: Zhang
Title: Involvement in Offshore Financial Centers and Audit Fees: Evidence from U.S. Multinational Firms
Abstract: 
 This study examines how a U.S. firm’s involvement in offshore financial centers (OFCs), by setting up subsidiaries or affiliates in OFCs, is associated with audit fees. After controlling for tax aggressiveness, firm strategy, international operation, and other firm characteristics, we find that U.S. multinational enterprises (MNEs) with OFC operations pay higher audit fees than U.S. MNEs without OFC operations. In addition, a greater extent of OFC operations is further associated with higher audit fees. This result is robust to using different measures of OFC involvement and controlling for issues of self-selection, endogeneity, and joint determination effect of audit and non-audit fees. We also find that a higher level of OFC operations is associated with higher audit risk, as measured by internal control weaknesses and the probability of financial reporting-related litigation. Further analysis shows that the audit fee increasing effect of OFC involvement is unlikely to be driven by corporate tax planning strategy and tax rate differential between the U.S. and OFCs, but driven by the regulatory arbitrage opportunities and secrecy policies of OFCs. In sum, this paper contributes to the literature on audit fees and OFCs.
Journal: European Accounting Review
Pages: 995-1023
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2049334
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2049334
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# input file: REAR_A_2050775_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fatma Jemaa
Author-X-Name-First: Fatma
Author-X-Name-Last: Jemaa
Author-Name: Kim Klarskov Jeppesen
Author-X-Name-First: Kim Klarskov
Author-X-Name-Last: Jeppesen
Author-Name: Nadia M’hirsi
Author-X-Name-First: Nadia
Author-X-Name-Last: M’hirsi
Title: Institutionally Sustaining or Abandoning Mandatory Joint Audits: The Contrasting Cases of France and Denmark
Abstract: 
 This study draws on two longitudinal case studies of the French and Danish joint audit models to understand and compare how mandatory joint audits have emerged and evolved. In both settings, joint audits appeared in the 1930s to increase auditors’ competence and independence. After a few decades of practice, joint audits became taken for granted, but in the 1980s, conglomerated audit networks attempted to circumvent the joint audit rule, entering into conflict with local auditors. In France, the main association of auditors adopted successive regulatory measures that prevented circumventing the model, therefore avoiding its erosion. Such regulatory layering crucially reshaped the model to sustain belief in its potential whenever a particular form of joint audit failed. In Denmark, the local audit firms essentially resisted attacks against the model rhetorically, which was insufficient to prevent its erosion in the 1990s and its suppression by the law in 2005. Contrasting the two cases shows the multi-modal ways in which actors undertake institutional work and it provides timely information for regulators engaged in discussions about joint audits.
Journal: European Accounting Review
Pages: 1025-1052
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2050775
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2050775
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# input file: REAR_A_2035789_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dane Pflueger
Author-X-Name-First: Dane
Author-X-Name-Last: Pflueger
Author-Name: Kirstine Zinck Pedersen
Author-X-Name-First: Kirstine Zinck
Author-X-Name-Last: Pedersen
Title: Assembling Homo Qualitus: Accounting for Quality in the UK National Health Service
Abstract: 
 This paper describes the historical emergence of an accountable quality in public policies and reforms of the UK National Health Service: that is a notion of quality which is expressed through accounting and other formal measurement and management devices. It also specifies the idealized subject of an accountable quality, homo qualitus, and attends to instances of his/her incomplete realization. Doing so contributes to the problematization and rethinking of the way that accounting, professionalism, and the relationship between the two, are often understood. It shows that an accountable quality involves attempts to transform accounting from something external to, and imposed upon, or selectively adopted by, medical professionals into a measure of, in principle, any healthcare workers’ individual enthusiasm for, and commitment toward, quality itself. The incomplete nature of this transformation offers insights into complex ways in which discourse and practice may interact.
Journal: European Accounting Review
Pages: 875-902
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2035789
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2035789
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# input file: REAR_A_2042349_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christina E. Bannier
Author-X-Name-First: Christina E.
Author-X-Name-Last: Bannier
Author-Name: Yannik Bofinger
Author-X-Name-First: Yannik
Author-X-Name-Last: Bofinger
Author-Name: Björn Rock
Author-X-Name-First: Björn
Author-X-Name-Last: Rock
Title: Doing Safe by Doing Good: Non-Financial Reporting and the Risk Effects of Corporate Social Responsibility
Abstract: 
 We compare the effects of corporate social responsibility (CSR) on firms' equity risk under two different (non-)financial reporting regimes: the risk-based U.S. and the content-based EU system. We observe a strongly negative CSR-risk relation in the EU, but a much weaker general impact in the U.S. In correspondence with goal-framing theory, we find several moderating effects on this association, depending on the reporting regime: (i) A highly volatile market environment unfolds the risk-reducing effect of CSR in the U.S. system, but has no moderating effect in the EU; (ii) Rising CSR awareness buttresses the risk-reducing effect of CSR in the EU, but has an opposing effect in the U.S.; (iii) Risk reductions are most strongly associated with social and governance rather than environmental activity in the EU regime, while there are no such individual effects in the U.S.
Journal: European Accounting Review
Pages: 903-933
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2042349
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2042349
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# input file: REAR_A_2038227_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zahn Bozanic
Author-X-Name-First: Zahn
Author-X-Name-Last: Bozanic
Author-Name: Pepa Kraft
Author-X-Name-First: Pepa
Author-X-Name-Last: Kraft
Author-Name: Andrea Tillet
Author-X-Name-First: Andrea
Author-X-Name-Last: Tillet
Title: Qualitative Disclosure and Credit Analysts’ Soft Rating Adjustments
Abstract: 
 Using both dictionary-based and topic modelling approaches, we examine whether and how credit analysts use borrowers’ qualitative disclosures to extract information pertaining to credit risk in making their assessments. We first decompose publicly-available ratings into qualitative factors (soft adjustments) and quantitative factors (hard adjustments). We find that credit analysts’ soft adjustments, but not the hard adjustments, reflect information in borrowers’ qualitative disclosures. Next, our results indicate that the association between firms’ qualitative disclosures and soft adjustments varies depending upon the rating agency’s reliance on public disclosure, access to management, and overall market uncertainty. Finally, we examine whether analysts’ use of credit risk-relevant information from borrowers’ qualitative disclosures increases the informativeness of credit rating downgrades. We find that the credit rating downgrades of borrowers that provide more qualitative disclosures are more informative than those who do not; however, the increase in informativeness diminishes after the Dodd-Frank Act, when legal liability and regulatory penalties for credit rating agencies increased.
Journal: European Accounting Review
Pages: 779-807
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2022.2038227
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2038227
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# input file: REAR_A_2003216_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fotis Delis
Author-X-Name-First: Fotis
Author-X-Name-Last: Delis
Author-Name: Manthos D. Delis
Author-X-Name-First: Manthos D.
Author-X-Name-Last: Delis
Author-Name: Panagiotis I. Karavitis
Author-X-Name-First: Panagiotis I.
Author-X-Name-Last: Karavitis
Author-Name: Kenneth J. Klassen
Author-X-Name-First: Kenneth J.
Author-X-Name-Last: Klassen
Title: Corporate Governance and Profit Shifting: The Role of the Audit Committee
Abstract: 
 We examine tax-motivated profit shifting as the outcome of corporate governance characteristics in multinational enterprises (MNEs). We propose a novel subsidiary-year measure of profit shifting, estimated from the responses of subsidiary profits to exogenous parent earnings shocks. Subsequently, we hypothesize that audit committee size and experience, as well as CEO duality are key factors affecting profit shifting. Our baseline results show that increasing audit committee size by one standard deviation increases profit shifting by an economically significant 7.8%. We also find that this positive effect reverses for MNEs with higher numbers of audit committee members who have audit expertise and for MNEs without CEO duality.
Journal: European Accounting Review
Pages: 809-839
Issue: 4
Volume: 32
Year: 2023
Month: 08
X-DOI: 10.1080/09638180.2021.2003216
File-URL: http://hdl.handle.net/10.1080/09638180.2021.2003216
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# input file: REAR_A_2215821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Salvador Carmona
Author-X-Name-First: Salvador
Author-X-Name-Last: Carmona
Author-Name: Mahmoud Ezzamel
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Ezzamel
Title: Management Accounting and Strategy – A Review and Reflections on Future Research
Abstract: 
 In this paper, we review extant research examining the relationship between management accounting and strategy. This relationship is not unidirectional as developments in strategic processes can also have strong ramifications for accounting systems, leading to their refinement and possible innovations. In addition to previous, valuable overviews focusing on the rational approach to examining the relationship between management accounting and strategy (e.g. Chenhall, 2003; Langfield-Smith, 1997, 2008), this paper also addresses interpretive and the poststructuralist studies. Although the three approaches have little cross-reference to each other, they collectively offer a rich tapestry of the relationship between accounting and strategy. Our review of the contributions made by these three streams of research suggest that, instead of treating those theoretical approaches as competitors, they should be considered complementary to each other. Such complementary perspective, we suggest, can provide many perceptive insights into ongoing research in this area. The paper concludes with some reflections on future research.
Journal: European Accounting Review
Pages: 1129-1156
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2023.2215821
File-URL: http://hdl.handle.net/10.1080/09638180.2023.2215821
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# input file: REAR_A_2057346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinming Liu
Author-X-Name-First: Xinming
Author-X-Name-Last: Liu
Author-Name: Gerald J. Lobo
Author-X-Name-First: Gerald J.
Author-X-Name-Last: Lobo
Author-Name: Hung-Chao Yu
Author-X-Name-First: Hung-Chao
Author-X-Name-Last: Yu
Author-Name: Zhen Zheng
Author-X-Name-First: Zhen
Author-X-Name-Last: Zheng
Title: Multiple Directorships and Audit Committee Effectiveness: Evidence from Effort Allocation
Abstract: 
 Recent post-SOX studies have consistently found that the presence of audit committee (AC) directors with multiple directorships is associated with lower financial reporting quality. An implicit assumption of these studies is that AC directors distribute their effort equally across all their directorships. Using a firm size-based proxy and firm risk-based (i.e. probabilities of litigation and of misstatements) proxies to measure relative directorship importance, we investigate (1) whether and how AC directors who serve on multiple AC directorships allocate their effort to different directorships unequally, and (2) whether the unequal prioritization of effort across multiple AC directorships relates to AC monitoring effectiveness. We find a positive (no) relation between the risk-based (firm size-based) directorship importance measures and AC effectiveness, suggesting that AC directors serving on multiple boards unequally allocate their effort to different directorships based on incentives related to firm risk and not to firm size. Our results have relevance for regulators, boards of directors, investors, and other stakeholders.
Journal: European Accounting Review
Pages: 1273-1306
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2022.2057346
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2057346
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# input file: REAR_A_2052921_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Michelle Rodrigue
Author-X-Name-First: Michelle
Author-X-Name-Last: Rodrigue
Author-Name: Claire-France Picard
Author-X-Name-First: Claire-France
Author-X-Name-Last: Picard
Title: Non-accountants and Accounting: On the Emancipatory Mobilization of Accounting by Sustainability Managers
Abstract: 
 Our study explores emancipatory manifestations of accounting through the experiences of sustainability managers. Specifically, drawing primarily on interviews with sustainability managers working in Canadian companies, it aims to better understand how they mobilize conventional accounting in their day-to-day activities in pursuit of socio-environmental progress. Informed by the pragmatist perspective on emancipation (Gallhofer & Haslam, 2003, 2019), our analysis first reveals the global context in which our interviewees evolve and the aura of accounting therein. It then details how three local contextual dynamics shape the form, content, and usage of conventional accounting, making some accounting manifestations more emancipatory than others. Working in organizations receptive to sustainability initiatives, piloted by a small, resource-constrained department, seems to lead sustainability managers to generate more emancipatory progress in and through multiple forms, contents, and usages of accounting. The legitimacy of the sustainability department and the level of uncertainty experienced also play roles in the extent of progress reached. Through an empirical investigation, we contribute to a better understanding of accounting particularities shaping sustainability progress within organizations. Our study also offers valuable insights into the ways ‘non-accountants’ use accounting, therefore contributing to an understanding of how ‘peripheral’ business actors mobilize accounting to advance their sustainability agenda.
Journal: European Accounting Review
Pages: 1217-1245
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2022.2052921
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2052921
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# input file: REAR_A_2052922_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Corinne Bessieux-Ollier
Author-X-Name-First: Corinne
Author-X-Name-Last: Bessieux-Ollier
Author-Name: Emmanuelle Nègre
Author-X-Name-First: Emmanuelle
Author-X-Name-Last: Nègre
Author-Name: Marie-Anne Verdier
Author-X-Name-First: Marie-Anne
Author-X-Name-Last: Verdier
Title: Moving from Accounting for People to Accounting with People: A Critical Analysis of the Literature and Avenues for Research
Abstract: 
 The purpose of this paper is to provide a critical review of the ‘accounting for people’ literature and to suggest avenues for research that encourage this literature to take a radical emancipatory turn by using dialogic accounting. Our review covers the past five decades and concentrates on a corpus of 109 articles published in 22 accounting journals. Although the social agenda was initially central to the rise in the accounting for people literature, it was quickly supplanted by economic and financial objectives. The more recent focus on Human Capital (HC), driven by the emergence of a new spirit of capitalism, appears to have breathed new life into the accounting for people literature. However, the HC concept also (i) simplifies humans’ subjective qualities by overquantification through a reification process that extends the sphere of commodification to humans and (ii) reinforces labor control processes. We highlight the need for future literature to move from the ‘accounting for people’ approach to an ‘accounting with people’ approach to really give a voice to humans, and outline the potential of dialogic HC accounts for achieving that aim.
Journal: European Accounting Review
Pages: 1247-1271
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2022.2052922
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2052922
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# input file: REAR_A_2018341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kay Blaufus
Author-X-Name-First: Kay
Author-X-Name-Last: Blaufus
Author-Name: Nadja Fochmann
Author-X-Name-First: Nadja
Author-X-Name-Last: Fochmann
Author-Name: Jochen Hundsdoerfer
Author-X-Name-First: Jochen
Author-X-Name-Last: Hundsdoerfer
Author-Name: Michael Milde
Author-X-Name-First: Michael
Author-X-Name-Last: Milde
Title: How Does the Deferral of a Distortive Tax Affect Overproduction and Asset Allocation?
Abstract: 
 Deferred income taxation is widely used to encourage investment or saving. However, most income tax bases are more or less distortive (non-neutral). Using lab experiments, we find that the deferral of a distortive income taxation can result in substantial overproduction and less willingness to take risks. Subjects underweight the deferred tax burden and neglect the tax distortion because they act myopically and tend to make choices in isolation rather than simultaneously (choice bracketing). Despite opportunities to learn, the overproduction remains substantial. Additional analyses confirm that the observed misperception of deferred taxes is not caused by low tax salience or low effort, as providing additional accounting information on deferred taxes and introducing accountability reports do not change overproduction behavior. Only if we change the timing of the taxation from deferred to an economically equivalent immediate distortive tax system do overproduction and the effect on asset allocation almost disappear.
Journal: European Accounting Review
Pages: 1157-1184
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2021.2018341
File-URL: http://hdl.handle.net/10.1080/09638180.2021.2018341
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# input file: REAR_A_2062409_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ting-Chiao Huang
Author-X-Name-First: Ting-Chiao
Author-X-Name-Last: Huang
Author-Name: Yi-Hung Lin
Author-X-Name-First: Yi-Hung
Author-X-Name-Last: Lin
Author-Name: Chia-Hui Chen
Author-X-Name-First: Chia-Hui
Author-X-Name-Last: Chen
Author-Name: Stephanie Hairston
Author-X-Name-First: Stephanie
Author-X-Name-Last: Hairston
Title: Learning from Masters: Engagement Partners’ Co-Signing Relationships with Non-Engagement Industry Specialist Partners and Audit Quality
Abstract: 
 This paper examines a specific mechanism, partner co-signing relationships, through which knowledge sharing in an audit team may influence audit quality. Specifically, we examine whether an engagement partner’s co-signing relationships with non-engagement industry specialist partners are associated with audit quality. Using a unique setting in which co-signing relationships for each audit engagement is available, we find that audit quality is higher when the engagement partner for the focal client has co-signing relationships with non-engagement partners who are specialists in the focal client’s industry and that the positive association is more likely driven by a learning effect than a consultation effect. Further evidence suggests that attributes of co-signing relationships such as continuity matter and that co-signing relationships with industry specialist partners are more likely to be utilized when engagement partners have limited industry knowledge, clients operate in homogeneous industries, and engagement partners are from large audit firms. Overall, our results suggest that interactions with industry specialist partners facilitate knowledge sharing and hence improve audit quality.
Journal: European Accounting Review
Pages: 1307-1339
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2022.2062409
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2062409
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# input file: REAR_A_2276215_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Beatriz García Osma
Author-X-Name-First: Beatriz
Author-X-Name-Last: García Osma
Author-Name: Araceli Mora
Author-X-Name-First: Araceli
Author-X-Name-Last: Mora
Author-Name: Jochen Pierk
Author-X-Name-First: Jochen
Author-X-Name-Last: Pierk
Title: Dissemination of Accounting Research
Abstract: 
 Transference of knowledge to society hinges on the effective dissemination of research findings. We document a limited societal impact of accounting, as measured by the attention generated by published research in leading journals. This attention significantly trails that generated by other disciplines, like finance or management. Survey evidence suggests dissemination is hindered by a mix of low incentives, lack of training, and limited support provided to academics by their institutions, journals and academic associations. We provide several recommendations that may be useful to improve dissemination.
Journal: European Accounting Review
Pages: 1053-1083
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2023.2276215
File-URL: http://hdl.handle.net/10.1080/09638180.2023.2276215
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Handle: RePEc:taf:euract:v:32:y:2023:i:5:p:1053-1083



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# input file: REAR_A_2021097_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andreas Seebeck
Author-X-Name-First: Andreas
Author-X-Name-Last: Seebeck
Author-Name: Devrimi Kaya
Author-X-Name-First: Devrimi
Author-X-Name-Last: Kaya
Title: The Power of Words: An Empirical Analysis of the Communicative Value of Extended Auditor Reports
Abstract: 
 We examine the communicative value of extended auditor reports in the United Kingdom (UK), where ISA 700 (UK and Ireland) requires auditors to disclose the risks of material misstatement that had the greatest effect on the audit – key audit matters (KAM). By using methods from computational linguistics, we find that different proxies for communicative value (i.e., readability, evaluative content, visual aids, and specificity) improve in post-ISA 700 periods. Cross-sectional tests show that the improvement differs across audit firms and audit clients as well as KAM disclosure characteristics. Finally, broadly consistent with concurrent studies, we find no evidence that several proxies for communicative value are informative to investors. However, we find initial evidence that a more specific description of KAM is significantly and positively associated with capital market reactions, suggesting that investors value precise information. Overall, this study directly responds to the call for more research on how KAM are worded.
Journal: European Accounting Review
Pages: 1185-1215
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2021.2021097
File-URL: http://hdl.handle.net/10.1080/09638180.2021.2021097
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Handle: RePEc:taf:euract:v:32:y:2023:i:5:p:1185-1215



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# input file: REAR_A_2254351_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jan Bebbington
Author-X-Name-First: Jan
Author-X-Name-Last: Bebbington
Author-Name: Matias Laine
Author-X-Name-First: Matias
Author-X-Name-Last: Laine
Author-Name: Carlos Larrinaga
Author-X-Name-First: Carlos
Author-X-Name-Last: Larrinaga
Author-Name: Giovanna Michelon
Author-X-Name-First: Giovanna
Author-X-Name-Last: Michelon
Title: Environmental Accounting in the European Accounting Review: A Reflection
Abstract: 
 We reflect upon how European Accounting Review has conceived of environmental accounting (and to some extent social/sustainability accounting work) over its 30-year history, with the aim of discussing ways in which environmental accounting research can further develop, both within and beyond this journal. After outlining the broader social and ecological context from which environmental accounting has emerged (and noting that this context is evolving in substantive ways), we provide an overview of the types of research published in EAR. We combine these elements to identify three themes that we argue are critical for the direction of future research: the financial materiality of ecological issues and the impact this has on risk; how environmental accounting practices are constructed; and how a new relationship between nature and society may affect accounting practices. We finally conclude by envisioning a future of environmental accounting research that dovetails with the sustainability ambitions that can be draw from an examination of the detailed targets that underpin the Sustainable Development Goals.
Journal: European Accounting Review
Pages: 1107-1128
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2023.2254351
File-URL: http://hdl.handle.net/10.1080/09638180.2023.2254351
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# input file: REAR_A_2218423_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jihun Bae
Author-X-Name-First: Jihun
Author-X-Name-Last: Bae
Author-Name: Chung Yu Hung
Author-X-Name-First: Chung
Author-X-Name-Last: Yu Hung
Author-Name: Laurence van Lent
Author-X-Name-First: Laurence
Author-X-Name-Last: van Lent
Title: Mobilizing Text As Data
Abstract: 
 Textual analysis methods have become increasingly popular and powerful tools for researchers in finance and accounting to extract meaningful information from unstructured text data. This paper surveys the recent applications of these methods in various domains, such as corporate disclosures, earnings calls, investor relations, and social media. It also discusses the advantages and challenges of different textual analysis methods, such as keyword lists, pattern-based sequence classification, word embedding, and other large language models. We provide guidance on how to choose appropriate methods, validate text-based measures, and report text-based evidence effectively. We conclude by suggesting some promising directions for future research using text as data.
Journal: European Accounting Review
Pages: 1085-1106
Issue: 5
Volume: 32
Year: 2023
Month: 10
X-DOI: 10.1080/09638180.2023.2218423
File-URL: http://hdl.handle.net/10.1080/09638180.2023.2218423
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# input file: REAR_A_2063151_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jeremy D. Douthit
Author-X-Name-First: Jeremy D.
Author-X-Name-Last: Douthit
Author-Name: Jing Liu
Author-X-Name-First: Jing
Author-X-Name-Last: Liu
Author-Name: Steven T. Schwartz
Author-X-Name-First: Steven T.
Author-X-Name-Last: Schwartz
Author-Name: Richard A. Young
Author-X-Name-First: Richard A.
Author-X-Name-Last: Young
Title: An Experimental Study of Endogenous Discretionary Controls on Employee Effort
Abstract: 
 Discretionary controls are controls that can be applied at the ex post discretion of the superior rather than being supported by pre-committed enforceable contracts. This study examines employees’ effort levels when a discretionary control is endogenously present (chosen by the superior) relative to when it is exogenously present (assigned by the experimenters). Results from our gift-exchange experiment regarding superiors’ choice of a discretionary control run counter to prior research on superiors’ choice to use pre-committed controls in two important ways. First, we find employee effort is unaffected by the superior’s choice of a discretionary control relative to when it is exogenous. That is, the intentional choice of a discretionary control does not seem to be resented by the employee. Second, we find employee effort is lower when superiors choose not to have a discretionary control present relative to when it is exogenously unavailable. That is, we not only find no reward to forgoing a discretionary control, but rather a cost to not choosing a discretionary control. In sum, our results support the prevalence of discretionary controls in practice.
Journal: European Accounting Review
Pages: 77-103
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2063151
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2063151
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# input file: REAR_A_2074493_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ian Chan
Author-X-Name-First: Ian
Author-X-Name-Last: Chan
Author-Name: Rong-Ruey Duh
Author-X-Name-First: Rong-Ruey
Author-X-Name-Last: Duh
Author-Name: Hun-Tong Tan
Author-X-Name-First: Hun-Tong
Author-X-Name-Last: Tan
Title: Does Client Acquisition Impair the Objectivity of Engagement Partners and Engagement Quality Review Partners?
Abstract: 
 We conduct two experiments using experienced audit partners as participants to investigate whether engagement partners’ involvement in the client acquisition process as the contact partner can influence their subsequent audit judgments, and whether the engagement quality review partner’s judgments are influenced when he or she is aware that engagement partners play both roles. As predicted, we find that engagement partners who are also the contact partners during client acquisition tend to make judgments that are biased in favor of the client. However, engagement quality review partners are not sensitive to whether the engagement partner was the contact partner or not, but may be motivated to make decisions that favor the engagement partner. Our results provide a deeper understanding of how the client acquisition process influences the judgments of various partners later in the course of audit engagements.
Journal: European Accounting Review
Pages: 171-190
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2074493
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2074493
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# input file: REAR_A_2088588_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Michael D. Kimbrough
Author-X-Name-First: Michael D.
Author-X-Name-Last: Kimbrough
Author-Name: Xu (Frank) Wang
Author-X-Name-First: Xu (Frank)
Author-X-Name-Last: Wang
Author-Name: Sijing Wei
Author-X-Name-First: Sijing
Author-X-Name-Last: Wei
Author-Name: Jiarui (Iris) Zhang
Author-X-Name-First: Jiarui (Iris)
Author-X-Name-Last: Zhang
Title: Does Voluntary ESG Reporting Resolve Disagreement among ESG Rating Agencies?
Abstract: 
 US companies are increasingly responding to demand from investors and other stakeholders for transparent information about companies’ environmental, social, and governance (ESG) performance by issuing ESG reports on a voluntary basis. We examine whether these reports help to resolve the previously documented disagreement among ESG rating agencies about individual companies’ ESG performance. Consistent with this possibility, we find that disagreement among ESG rating agencies is lower for firms that voluntarily issue ESG reports. In particular, disclosures about the environmental and social dimensions help reduce disagreement about the company’s performance on those dimensions. Using textual analysis, we find that longer reports are associated with reduced disagreement among ESG raters while reports with more positive tones or that use a greater number of sticky words are associated with heightened disagreement. The association between ESG disclosure and ESG disagreement is more pronounced when firms obtain third-party attestations on their ESG reports, especially from accounting firms, and when firms adhere to advanced levels of Global Reporting Initiative (GRI) reporting standards. Finally, ESG disagreement is positively associated with disagreement and uncertainty in the capital market, providing strong motivation for firms to voluntarily disclose ESG reports to reduce ESG disagreement.
Journal: European Accounting Review
Pages: 15-47
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2088588
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2088588
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# input file: REAR_A_2082994_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Erik Strauss
Author-X-Name-First: Erik
Author-X-Name-Last: Strauss
Author-Name: Stefanie Malz
Author-X-Name-First: Stefanie
Author-X-Name-Last: Malz
Author-Name: Jürgen Weber
Author-X-Name-First: Jürgen
Author-X-Name-Last: Weber
Title: The Role of Management Controls in New Product Development: Codifying a Collective Source of Creativity
Abstract: 
 This paper contributes to the understanding of the role of Management Controls (MCs) in mediating and stimulating creative processes. Adopting a knowledge codification perspective, it demonstrates how actors create multiple MCs that open different ‘spaces’ serving distinctive functions, while also being interrelated in the creative co-creation process. A ‘core MC’ creates space for recognizing, localizing, and developing new connections between items of knowledge, culminating in a new shared understanding of NPD, i.e. a synthesis; a ‘supplementary MC’ stimulates actions and interactions on the micro-level that can challenge existing knowledge structures and cause-and-effect relationships, potentially resulting in the creation of an antithesis. Therefore, we elaborate on how MCs themselves can serve as a collective resource of creativity. Additionally, we add to the debate concerning the aspects determining the assessment of controls as enabling, arguing that the design characteristics of a single MC do not determine its enabling assessment, but rather it is the dynamic material nexus that MCs form and their fluid interplay that determine their assessment. Finally, our insights allow us to contribute to the relational view of knowledge objects such as MCs by evidencing a transition of an epistemic into a technical object caused by mutual interaction.
Journal: European Accounting Review
Pages: 251-277
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2082994
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2082994
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# input file: REAR_A_2063152_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Marcielle Anzilago
Author-X-Name-First: Marcielle
Author-X-Name-Last: Anzilago
Author-Name: Jacobo Gomez-Conde
Author-X-Name-First: Jacobo
Author-X-Name-Last: Gomez-Conde
Author-Name: Rogerio J. Lunkes
Author-X-Name-First: Rogerio J.
Author-X-Name-Last: Lunkes
Title: How do Managers use Management Control Systems in Response to Shareholder Activism?
Abstract: 
 We study how managers interactively use management control systems (MCS) in response to shareholder activism in a context of performance declines. We predict that broad-scope MCS design is a key factor that helps explain variation in the level of interactive use. In addition, we argue that the extent to which diagnostic use of MCS alleviates shareholder pressures depends on analysts’ recommendations. We empirically test our hypotheses with survey and archival data. Data on shareholder activism is hand-collected. The results provide support for our predictions, suggesting that managers use MCS interactively to assuage shareholder activism in the context of performance declines. This effect is less pronounced for managers equipped with broad-scope information from their MCS. Our findings indicate that in a setting of favorable analysts’ recommendations, managers use MCS diagnostically instead of interactively to cope with shareholder activism. Overall, the findings may help inform our understanding of how firms manage shareholder activism from a management control perspective.
Journal: European Accounting Review
Pages: 105-132
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2063152
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2063152
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# input file: REAR_A_2084759_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Pawel Bilinski
Author-X-Name-First: Pawel
Author-X-Name-Last: Bilinski
Title: The Content of Tweets and the Usefulness of YouTube and Instagram in Corporate Communication
Abstract: 
 This study examines the content of corporate tweets related to earnings announcements and the incremental usefulness of YouTube and Instagram in disseminating earnings news. Textual analysis of tweets reveals that investors react more strongly to a firm’s communication on Twitter when it (i) includes financial information, (ii) mentions the CEO or the CFO, (iii) includes a visual element, and (iv) posts are written in a moderate tone. Tweets related to earnings announcements are particularly useful when retail ownership is high. Incrementally to Twitter, YouTube videos and Instagram posts do not have, on average, positive incremental effects on the price response to earnings news.
Journal: European Accounting Review
Pages: 279-311
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2084759
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2084759
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# input file: REAR_A_2066011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Lucas Mahieux
Author-X-Name-First: Lucas
Author-X-Name-Last: Mahieux
Title: Auditors' Incentives and Audit Quality: Non-Audit Services versus Contingent Audit Fees
Abstract: 
 I develop a model that provides new insights into the consequences of the provision of non-audit services (NAS) by audit firms to audit clients. I also investigate the joint implications of NAS and contingent audit fees (CAF) for audit quality. In the model, litigation and reputation costs do not provide sufficient incentives to auditors to exert audit effort. Investors of client firms may therefore let auditors provide NAS because of an incentive effect. Indeed, the possibility of providing NAS contingent on detecting financial misstatements increases auditors' incentives to exert audit effort. However, the provision of NAS also reduces auditor independence, which may decrease audit quality and in turn render the provision of NAS by auditors undesirable. Thus my analysis uncovers an interesting tradeoff for regulators between the positive incentive effect and the decrease in auditor independence. Removing the current restrictions on CAF may offset the ex post decrease in audit quality while preserving the ex ante incentives. My analysis also generates a number of testable empirical predictions.
Journal: European Accounting Review
Pages: 133-169
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2066011
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2066011
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# input file: REAR_A_2085132_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Andreas Ostermaier
Author-X-Name-First: Andreas
Author-X-Name-Last: Ostermaier
Author-Name: Peter Schäfer
Author-X-Name-First: Peter
Author-X-Name-Last: Schäfer
Title: Do Good Intentions Pay Off? Employee Responses to Well-Intended Actions with Risky Outcomes
Abstract: 
 How does a subordinate react to the superior’s well-intended action when it is not certain that it will produce the intended outcome? The risk associated with the outcome creates moral wiggle room and thus poses a threat to the gift exchange between the superior and the subordinate. In a laboratory experiment, we first find that subordinates continue to reciprocate if the outcome risk is high. Second, however, subordinates’ response to a well-intended action that increases outcome risk depends on their inequality aversion. Weakly inequality-averse subordinates repay a kind action with a kind reaction if it decreases, but not if it increases, their outcome risk, whereas strongly inequality-averse subordinates react alike in both cases. Hence, a well-intended action is less worthwhile for subordinates if it increases than if it decreases outcome risk.
Journal: European Accounting Review
Pages: 313-334
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2085132
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2085132
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# input file: REAR_A_2082506_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Qiang Cheng
Author-X-Name-First: Qiang
Author-X-Name-Last: Cheng
Author-Name: Shuqing Luo
Author-X-Name-First: Shuqing
Author-X-Name-Last: Luo
Author-Name: Jinping Zhang
Author-X-Name-First: Jinping
Author-X-Name-Last: Zhang
Title: Common Ownership and Analyst Forecasts
Abstract: 
 We examine the effect of the common ownership relation between brokerage houses and the firms covered by their analysts (referred to as co-owned brokerage houses, co-owned firms, and connected analysts, respectively) on analyst forecast performance. Common ownership can help the connected analysts have better access to co-owned firms, leading to higher-quality analyst research. However, common owners have incentives for higher valuation of the co-owned firms and thus can exert pressure on the connected analysts to issue optimistically biased research reports for these firms. We find that common ownership improves analyst forecast accuracy. This result is robust to a difference-in-differences design that exploits exogenous shocks to common ownership. The effects vary systematically with the quality of alternative sources of information that analysts can access for the co-owned firms. Overall, our paper contributes to the literature by documenting that common ownership can facilitate information communication.
Journal: European Accounting Review
Pages: 223-249
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2082506
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2082506
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# input file: REAR_A_2085757_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ana Caria
Author-X-Name-First: Ana
Author-X-Name-Last: Caria
Author-Name: Delfina Gomes
Author-X-Name-First: Delfina
Author-X-Name-Last: Gomes
Title: Why Global Accounting Standards Diffuse? An Analysis from the Lenses of Actor-Network Theory
Abstract: 
 This study examines the voluntary adoption of International Financial Reporting Standards (IFRS). It makes a case for the need to move beyond a purely rational behavior and structural conformity due to wider institutional pressure as well as the necessity to incorporate networks of actors, organizational diversity and practice variation into the analysis. Thus, this study aims to contribute to the broad understanding of how and why global standards like the IFRS diffuse, by examining the early and voluntary adoption of IFRS by a Portuguese company – Jerónimo Martins – that adopted IFRS voluntarily in 2000. For the purpose of this study, Actor-Network Theory (ANT), and particularly the concept of translation are useful to study the IFRS adoption as a process of actor-network building. The analysis shows that the adoption of IFRS was not a straightforward one, but rather involved several actors that faced particular challenges while responding to several interessement devices used to enroll them into the new accounting regime. The study highlights the need for further research focusing on the micro-processes surrounding IFRS adoption to better understand how accounting standards are made valuable in local and organizational contexts and the factors involved in their adoption.
Journal: European Accounting Review
Pages: 335-365
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2085757
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2085757
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# input file: REAR_A_2084134_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kerstin Lopatta
Author-X-Name-First: Kerstin
Author-X-Name-Last: Lopatta
Author-Name: Felix Canitz
Author-X-Name-First: Felix
Author-X-Name-Last: Canitz
Author-Name: Sebastian Andreas Tideman
Author-X-Name-First: Sebastian Andreas
Author-X-Name-Last: Tideman
Title: Abnormal CSR and Financial Performance
Abstract: 
 This study develops a corporate social responsibility (CSR) measure for abnormal CSR. Based on a microeconomic framework, we argue and show that firm-level variables determine a firm-specific, normal (expected) level of CSR performance, where the marginal costs of CSR equal its marginal benefits. Any deviation from these equilibrium points is a proxy for abnormal CSR, which is negatively related to a firm’s short-term financial performance (i.e., profitability). Hereby, larger values result in proportionally larger decreases in financial performance (inverted U-shape). We conduct our empirical analyses using cross-sectional CSR performance data for U.S. listed companies from 1991 to 2013. Further analyses reveal that this negative effect of abnormal CSR exists for both positive and negative abnormal CSR. Our results hold for alternative measures of firm and CSR performance, an instrumental variable regression, and propensity score matching. Our model could serve as a first indicator for abnormal CSR for investors and other stakeholders.
Journal: European Accounting Review
Pages: 49-75
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2084134
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2084134
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# input file: REAR_A_2309744_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Amir Amel-Zadeh
Author-X-Name-First: Amir
Author-X-Name-Last: Amel-Zadeh
Author-Name: Matias Laine
Author-X-Name-First: Matias
Author-X-Name-Last: Laine
Title: Letter from the Incoming Editors of the European Accounting Review
Journal: European Accounting Review
Pages: 1-13
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2024.2309744
File-URL: http://hdl.handle.net/10.1080/09638180.2024.2309744
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# input file: REAR_A_2074864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Mostafa Harakeh
Author-X-Name-First: Mostafa
Author-X-Name-Last: Harakeh
Author-Name: Edward Lee
Author-X-Name-First: Edward
Author-X-Name-Last: Lee
Author-Name: Martin Walker
Author-X-Name-First: Martin
Author-X-Name-Last: Walker
Title: Understanding How the Effects of Conditional Conservatism Measurement Bias Vary with the Research Context
Abstract: 
 We re-examine previous seminal studies on conditional conservatism (CC) that apply the asymmetric timeliness (AT) measure of Basu [(1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3–37. https://doi.org/10.1016/S0165-4101(97)00014-1] and compare the outcomes with those based on the modified AT (MAT) measure of Badia et al. [(2021). Debiasing the measurement of conditional conservatism. Journal of Accounting Research, 59(4), 1221–1259. https://doi.org/10.1111/1475-679X.12366] and the spread in conditional variances (SCV) measure of Dutta and Patatoukas [(2017). Identifying conditional conservatism in financial accounting data: Theory and evidence. The Accounting Review, 92(4), 191–216. https://doi.org/10.2308/accr-51640]. Our conclusions are threefold. First, all three measures yield similar inferences in interrupted time-series settings that examine the change in CC following a policy mandate. Second, the inferences drawn from the AT measure in studies that model the determinants of CC based on cross-sectional settings are more sensitive to test specifications and research designs. Third, across the three measures, MAT shows the best empirical performance in terms of aligning with existing theories while being less affected by AT bias.
Journal: European Accounting Review
Pages: 191-222
Issue: 1
Volume: 33
Year: 2024
Month: 01
X-DOI: 10.1080/09638180.2022.2074864
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2074864
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# input file: REAR_A_2094435_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Albert Tsang
Author-X-Name-First: Albert
Author-X-Name-Last: Tsang
Author-Name: Kun Tracy Wang
Author-X-Name-First: Kun Tracy
Author-X-Name-Last: Wang
Author-Name: Yue Wu
Author-X-Name-First: Yue
Author-X-Name-Last: Wu
Author-Name: Jeff Lee
Author-X-Name-First: Jeff
Author-X-Name-Last: Lee
Title: Nonfinancial Corporate Social Responsibility Reporting and Firm Value: International Evidence on the Role of Financial Analysts
Abstract: 
 Using a large international sample of 24,293 observations from 3,991 unique firms in 56 countries, we examine the role of financial analysts in the relationship between voluntary corporate social responsibility (CSR) reporting and firm value. We find that after controlling for firms’ CSR performance ratings and other factors, voluntary CSR reporting increases firm value in countries worldwide, and analysts strengthen the positive relationship between CSR reporting and firm value. More importantly, our results show that the positive role of analysts in the relationship between CSR reporting and firm value varies with country-level institutional characteristics, such as the level of investor protection, the development of capital markets and the analyst profession, and stakeholder orientation. Furthermore, the positive role of financial analysts varies according to CSR reporting characteristics, including CSR reporting assurance, choice of assurer, CSR reporting coverage, CSR reporting quantity, and length of CSR report. We also find that financial analysts can strengthen the positive association between CSR reporting and firm value for CSR disclosures published in all types of media (standalone, annual report-based, and web-based CSR disclosures). Overall, our results present global evidence that shows the important role of financial analysts in improving the valuation implications of voluntary CSR reporting.
Journal: European Accounting Review
Pages: 399-434
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2094435
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2094435
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# input file: REAR_A_2109707_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yunlin Tian
Author-X-Name-First: Yunlin
Author-X-Name-Last: Tian
Author-Name: Xiaofei Pan
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Pan
Title: Green Finance Policy, Financial Risk, and Audit Quality: Evidence from China
Abstract: 
 Using the green finance policies (GFPs) in China as a shock to capital allocation, we find that the implementation of GFPs improves audit quality for green firms. Specifically, green firms are likely to receive favorable audit opinions, pay lower audit fees, and generate higher-quality financial reports after the implementation of GFPs. When examining the mechanisms through which GFPs affect audit risk for green firms, we find that green firms are likely to experience lower financial risks and have access to more bank loans at a lower cost after the implementation of GFPs. Further analysis shows that the main results are more pronounced when GFPs are better enforced, where auditors face more government intervention, and where firms are financially constrained. Overall, we document that GFPs decrease financial risk for green firms and have a positive spillover to auditors by mitigating audit risk.
Journal: European Accounting Review
Pages: 589-615
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2109707
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2109707
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# input file: REAR_A_2113550_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ting Dong
Author-X-Name-First: Ting
Author-X-Name-Last: Dong
Title: Gender Salary Gap in the Auditing Profession: Trend and Explanations
Abstract: 
 This study documents the gender salary gap in the auditing profession and explains its development. Using Swedish administrative data from 2007 to 2015 for all Certified Public Accountants (CPAs), I find that the auditing profession’s overall gender salary gap has substantially narrowed during this period, and more female auditors have moved up to the top earnings group, reducing the wide salary gap at the top of the income distribution. Further analysis shows that the increase in female auditors’ client portfolio size accounts for approximately half of the decrease in the total salary gap. I also find evidence that the rise in female leadership in the Big Six firms is positively associated with the increase in female auditors’ client portfolio size. This effect is more pronounced in the middle and bottom half of firms’ hierarchy, suggesting that female representation at the top of a firm’s hierarchy has spillover benefits for lower-ranked female auditors. The implications of this study may help audit firms narrow their gender gaps and cope better with the overall talent challenges of the auditing industry.
Journal: European Accounting Review
Pages: 617-645
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2113550
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2113550
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# input file: REAR_A_2108094_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kay Blaufus
Author-X-Name-First: Kay
Author-X-Name-Last: Blaufus
Author-Name: Jens Robert Schöndube
Author-X-Name-First: Jens Robert
Author-X-Name-Last: Schöndube
Author-Name: Stefan Wielenberg
Author-X-Name-First: Stefan
Author-X-Name-Last: Wielenberg
Title: Information Sharing between Tax and Statutory Auditors: Implications for Tax Audit Efficiency
Abstract: 
 We examine whether tax audits become more efficient if tax auditors have access to information about statutory audit adjustments. To this end, we extend the standard tax compliance game by including a statutory auditor and analyze the strategic interactions among a firm issuing financial and tax reports, a statutory auditor, and a tax auditor. We show that granting the tax auditor access to information on statutory audit adjustments can, in some cases, increase tax revenues while simultaneously decreasing tax audit frequency. Thus, more information sharing between statutory and tax auditors could be a policy instrument to combat tax evasion and increase tax audit efficiency. However, the tax audit efficiency enhancing effect comes at the cost of a reduction in financial statement quality as the probability of overstated financial assets increases. Moreover, depending on the importance of firms' financial statement valuation, the additional information may also reduce tax revenues. The regulator must, therefore, carefully weigh the potential efficiency gains from information sharing on statutory audit adjustments that are derived in this study against the potential efficiency losses.
Journal: European Accounting Review
Pages: 545-568
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2108094
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2108094
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# input file: REAR_A_2114514_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fuxiu Jiang
Author-X-Name-First: Fuxiu
Author-X-Name-Last: Jiang
Author-Name: Xinni Cai
Author-X-Name-First: Xinni
Author-X-Name-Last: Cai
Author-Name: Xiaojia Zheng
Author-X-Name-First: Xiaojia
Author-X-Name-Last: Zheng
Title: The Boss Behind the Scenes: Nonfamily Leadership and Earnings Management
Abstract: 
 We examine the effect of nonfamily leadership in family firms, whereby family members do not act as either a board chair or a CEO, on corporate earnings management. We find that firms with nonfamily leadership conduct significantly more earnings management than firms with family leadership, although this effect can be alleviated by more effective internal control and a stronger reputation concern. Additional analyses show that the increased related-party transactions can be one mechanism through which the nonfamily leadership increases earnings management. We further find that nonfamily leaders in family firms are on average weaker but receive higher (excess) payment than their peers in nonfamily firms, all consistent with the role of the nonfamily member as a marionette for the family’s misbehaviors. Moreover, earnings management increases with the degree of family noninvolvement and is mainly driven by nonfamily chairs rather than the CEOs. Overall, our paper suggests that not having a family leader aggravates incentives for the controlling family to manage earnings to realize private benefits.
Journal: European Accounting Review
Pages: 647-675
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2114514
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2114514
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# input file: REAR_A_2109706_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hui Chen
Author-X-Name-First: Hui
Author-X-Name-Last: Chen
Author-Name: Alexander Wenning
Author-X-Name-First: Alexander
Author-X-Name-Last: Wenning
Title: Higher-Order Beliefs, Market-Based Incentives, and Information Quality
Abstract: 
 We investigate how interdependence among investors' beliefs affects the reliance on market prices as a performance measure and how this in turn affects the firm's preference for financial reporting quality. When investors want to align their values more with other investors' beliefs, optimal contracts become more reliant on the accounting report and less on the market price, emphasizing the stewardship role of accounting in a herding market. If the baseline accounting quality required by a reporting standard is high enough, the firm prefers to increase its accounting quality for the sake of contracting efficiency. However, if the baseline quality is low, the firm further lowers accounting quality for the same reason. The benchmark level that determines whether the firm prefers to increase accounting quality increases with the interdependence of investors' beliefs, implying that it is difficult to align the information and stewardship roles of accounting in a herding market.
Journal: European Accounting Review
Pages: 569-587
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2109706
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2109706
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# input file: REAR_A_2090399_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jeroen Koenraadt
Author-X-Name-First: Jeroen
Author-X-Name-Last: Koenraadt
Author-Name: Edith Leung
Author-X-Name-First: Edith
Author-X-Name-Last: Leung
Title: Investor Reactions to Crypto Token Regulation
Abstract: 
 Despite calls for regulation in the crypto utility token market, it is unclear how crypto token investors value current regulatory proposals. We find that on average, investors react negatively to news that increases the likelihood of securities and transparency-related regulation. We also find that this negative reaction is attenuated for tokens rated higher on quality and transparency by intermediaries, those that have higher levels of disclosure, and listed on more liquid exchanges. The observed variation in token transparency and this muted reaction suggest investors perceive disclosure costs to be lower for tokens in more transparent environments, suggesting that transparency matters to investors.
Journal: European Accounting Review
Pages: 367-397
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2090399
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2090399
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# input file: REAR_A_2105368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chen-Lung Chin
Author-X-Name-First: Chen-Lung
Author-X-Name-Last: Chin
Author-Name: Peng-Chia Chiu
Author-X-Name-First: Peng-Chia
Author-X-Name-Last: Chiu
Author-Name: Timothy Haight
Author-X-Name-First: Timothy
Author-X-Name-Last: Haight
Author-Name: Po-Hsiang Yu
Author-X-Name-First: Po-Hsiang
Author-X-Name-Last: Yu
Title: The Information-Leveling Role of Management Forecast Consistency in Facilitating Investment Efficiency
Abstract: 
 This study examines whether voluntary disclosure enhances investment efficiency through its information-leveling role in the capital markets. We argue that investment efficiency improves with the quality of managers’ past earnings forecasts because past forecast quality alleviates information frictions that inhibit firm access to investment capital. Our empirical results are consistent with this argument. To start, we document a baseline positive association between management forecast consistency and investment efficiency. Building on this result, we find that the consistency effect strengthens when cross-sectional attributes indicate higher information frictions and when industry-wide accounting quality is negatively shocked. In addition, we find that consistency effects are stronger for financially constrained firms and that consistency is associated with lower bid-ask spreads and positive changes in equity issuance. Overall, we show that building a reputation for high-quality management earnings forecasts can help firms overcome information frictions that contribute to suboptimal investment.
Journal: European Accounting Review
Pages: 519-543
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2105368
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2105368
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# input file: REAR_A_2103012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Anisur Rahman
Author-X-Name-First: Anisur
Author-X-Name-Last: Rahman
Author-Name: Nilesh B. Sah
Author-X-Name-First: Nilesh B.
Author-X-Name-Last: Sah
Title: Female Directors in Play Keep Short-Sellers Away
Abstract: 
 Multiple media reports and academic studies have indicated several benefits of having a gender-diverse board. However, corporate boards still lack female representation. Considering this gender imbalance, we examine the relation between short-selling and gender diversity on corporate boards and explain the underlying mechanism. We find strong evidence that increased female representation on corporate boards deters short-sellers because female directors improve the information environment for their firms. Female directors enhance corporate governance and play a vital role as effective monitors of firms. Our results are especially relevant in the post-Regulation FD period suggesting that female directors work as enforcers of regulations for their firms. Therefore, it would be astute to increase female representation on corporate boards as it would serve the interests of managers, regulators, and shareholders.
Journal: European Accounting Review
Pages: 489-518
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2103012
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2103012
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# input file: REAR_A_2096089_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Timo Vogelsang
Author-X-Name-First: Timo
Author-X-Name-Last: Vogelsang
Title: Time is (Not) Money: Incentive Effects of Granting Leisure Time
Abstract: 
 Employees spend a considerable amount of their working time enjoying on-the-job leisure. While this demonstrates a management control problem, it can also function as a novel domain for bonuses. In this study, I investigate the effect of an unconditional bonus (gift) in the form of more off-the-job leisure time. In particular, I examine how the gift of an intentional reduction of working time affects employee work behavior compared to a cash gift. A real-effort laboratory experiment shows that a cash gift neither alters employees’ on-the-job leisure time nor performance. A gift of more off-the-job leisure time, however, does reduce the on-the-job leisure time of employees and increases their performance. A follow-up vignette study among human resource (HR) professionals further provides external validity for these results. Moreover, it also displays the other positive influence of leisure time offered as gifts on several different employee outcomes such as satisfaction, commitment, and health.
Journal: European Accounting Review
Pages: 435-459
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2096089
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2096089
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# input file: REAR_A_2093239_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Cristina Bailey
Author-X-Name-First: Cristina
Author-X-Name-Last: Bailey
Author-Name: Jonathan Nash
Author-X-Name-First: Jonathan
Author-X-Name-Last: Nash
Author-Name: Le (Emily) Xu
Author-X-Name-First: Le (Emily)
Author-X-Name-Last: Xu
Title: Disclosure Committees: Implications for Disclosure Quality and Timeliness
Abstract: 
 To help companies comply with the certification requirements under Section 302 of SOX, the SEC recommends issuers form a disclosure committee. In this study, we examine the effects of disclosure committees on disclosure quality and timeliness. We find that the presence of disclosure committees is associated with higher quality and more timely corporate disclosure. In addition, we provide evidence that the benefits of disclosure committees on disclosure quality are greater if membership detail is publicly revealed and that benefits of the committee may be greatest for firms that experience a negative disclosure event. Lastly, we provide evidence that disclosure committees are associated with higher quality earnings announcements and lower likelihood of receiving a severe SEC comment letter. Collectively these results suggest disclosure committees are not merely ‘window dressing’, a conclusion with implications for practitioners, regulators, and academics interested in improving corporate disclosure practices.
Journal: European Accounting Review
Pages: 461-487
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2093239
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2093239
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# input file: REAR_A_2116064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Abongeh A. Tunyi
Author-X-Name-First: Abongeh A.
Author-X-Name-Last: Tunyi
Author-Name: Junhong Yang
Author-X-Name-First: Junhong
Author-X-Name-Last: Yang
Author-Name: Henry Agyei-Boapeah
Author-X-Name-First: Henry
Author-X-Name-Last: Agyei-Boapeah
Author-Name: Michael Machokoto
Author-X-Name-First: Michael
Author-X-Name-Last: Machokoto
Title: Takeover Vulnerability and Pre-Emptive Earnings Management
Abstract: 
 We explore whether firms that are vulnerable to takeovers pre-emptively manage earnings in anticipation of such events. We find a positive relationship between firms' vulnerability to takeovers and their propensity to manage earnings, mainly through the manipulation of real activities. We consider two motivations for firms' pre-emptive earnings management behavior; (1) to deter future takeovers and (2) to optimize M&A outcomes. Concerning the former, we document evidence consistent with entrenched managers using real earnings management to deter or delay future takeovers. Concerning the latter, we find evidence suggesting that, contingent on receiving takeover bids, vulnerable firms that pre-emptively manipulate real activities extract comparatively higher merger premiums. Overall, our findings suggest that managers of vulnerable firms pre-emptively manage earnings to purposefully delay the timing and optimize the outcomes of prospective takeovers.
Journal: European Accounting Review
Pages: 677-711
Issue: 2
Volume: 33
Year: 2024
Month: 03
X-DOI: 10.1080/09638180.2022.2116064
File-URL: http://hdl.handle.net/10.1080/09638180.2022.2116064
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