Codification Of Statements On Auditing Standard, Numbers 122 To 143, As Of January 2021, Volume 1,
2021
University of Mississippi
Codification Of Statements On Auditing Standard, Numbers 122 To 143, As Of January 2021, Volume 1, American Institute Of Certified Public Accountants (Aicpa)
AICPA Professional Standards
No abstract provided.
Proposed Quality Management Standards,
2021
University of Mississippi
Proposed Quality Management Standards, American Institute Of Certified Public Accountants. Auditing Standards Board
Exposure Drafts, Comment Letters, and Statements of Position
No abstract provided.
Perceive It Or Not: Information Quality And The Investors’ Response To Earning Surprises Of Technologically Advanced Companies,
2021
Yeshiva University
Perceive It Or Not: Information Quality And The Investors’ Response To Earning Surprises Of Technologically Advanced Companies, Aliza Rotenstein, David Gelb, Abraham Fried, Shoshana Altschuller
Journal of International Technology and Information Management
One of the primary measures of information systems (IS) success that has been the subject of much investigation in a variety of contexts is information quality (DeLone & McLean, 1992; 2003). This paper hones in on the impact of perceived information quality in the context of the financial markets, where quality of accounting information is particularly important, as it informs investment decisions and impacts stock prices. In particular, seminal accounting research has consistently found that earnings announcements possess informational value (information content) based upon which the market reacts (Beaver, 1968). Market reaction to surprises in earnings announcements has long been …
The Prospect Of Indonesian Government Retail Sukuk: From The Perspective Of Sharia Financial Knowledge, Education, And Behavior,
2021
Department of Management, Faculty of Economics, Universitas Andalas, Indonesia
The Prospect Of Indonesian Government Retail Sukuk: From The Perspective Of Sharia Financial Knowledge, Education, And Behavior, Fajri Adrianto
DLSU Business & Economics Review
As a source of government financing, the Indonesian government’s retail Sukuk is still not as popular as conventional government bonds. The Indonesian government has issued serial retail Sukuks with the code SR to get funds from retail investors, especially those concerned with Sharia values. Sharia financial literacy is expected to determine the success of this Sukuk. This study fills the gap of previous research on financial literacy by investigating the Sharia financial literacy in the investment decision. This study investigates the descriptive analysis of Sharia financial literacy in Indonesia and its relationship with the prospect of retail Sukuk issued by …
Redefining Sustainable Tourism In Covid-19: A Political-Economy Approach,
2021
Asian Institute of Management, Makati City, Philippines
Redefining Sustainable Tourism In Covid-19: A Political-Economy Approach, Eylla Laire M. Gutierrez
DLSU Business & Economics Review
Tourism has emerged as a critical sector generating economic growth and development across countries in the world. However, in the face of the outbreak of the COVID-19 pandemic, it is also considered as one of the most heavily hit sectors. Given the backdrop of all the measures implemented to prevent the spread of the outbreak and the changing mindset of actors towards travel, sustainable tourism is expected to play a more critical role in the face of the new normal. This article aims to provide a better understanding of sustainable tourism by utilizing a political economy approach. Specifically, this article …
Risk Perception In Respect Of Equity Shares: A Literature Review And Future Research Agenda,
2021
Indian Institute of Information Technology Allahabad, Prayagraj, Uttar Pradesh, India
Risk Perception In Respect Of Equity Shares: A Literature Review And Future Research Agenda, Ranjit Singh, K. Kajol, Jayashree Bhattacharjee
DLSU Business & Economics Review
The purpose of this paper is to systematically review the literature published on various aspects of risk perception about equity investment. It also aims to raise specific questions for future research. A comprehensive and systematic literature review is done to get the insights of the available literature with an objective to identify the determinants of equity-share-related risk perception and identify its impact that influences equity investment behavior. The study found that risk perception can be measured mainly by using the axiomatic approach, socio cultural group approach, emotional reactions, marketing mix approach, and psychometric approach. It is also found that the …
How Many Simultaneous Audit Committee Memberships Are Too Many?,
2021
The University of Texas Rio Grande Valley
How Many Simultaneous Audit Committee Memberships Are Too Many?, Jimmy Carmenate, Cori O. Crews, Vineeta D. Sharma, John R. Sparger
School of Accountancy Faculty Publications
Recent research by Sharma, Sharma, Tanyi, and Cheng (2020) provides new insight into directors serving on multiple public company audit committees. Specifically, they investigate how an individual audit committee director serving on multiple audit committees is related to companies’ cost of equity capital. Their evidence suggests that serving on multiple audit committees is viewed positively by investors up to a certain point, but beyond that point investors become concerned. This turning point, on average, is 3.5 audit committees for retired directors and 1.5 audit committees for directors in full-time employment. These results have implications for numerous stakeholders including investors, proxy …
Surrogation Fundamentals: Measurement And Cognition,
2021
Auburn University
Surrogation Fundamentals: Measurement And Cognition, Paul Black, Thomas Meservy, William B. Tayler, Jeffrey O. Williams
Faculty Publications
Measurement is a fundamental part of accounting. A primary purpose of measurement is to provide more concrete representations of abstract strategic objectives. A potential consequence of using measures to proxy for less-tangible strategic constructs is the tendency for managers to fall prey to surrogation, losing sight of strategic constructs and behaving as though measures are the constructs of interest. We show that surrogation is a nonconscious process. We also extend understanding of the conditions necessary for surrogation to occur by showing that mere awareness of measurement (even absent compensation) is sufficient to induce surrogation. These findings have implications for any …
Do We Matter? The Attention Policy Makers, Academics, And The General Public Give To Accounting Research,
2021
Brigham Young University - Provo
Do We Matter? The Attention Policy Makers, Academics, And The General Public Give To Accounting Research, F. Greg Burton, Scott L. Summers, T. Jeffrey Wilks, David A. Wood
Faculty Publications
Many question the value of accounting scholarship to society. We compared the attention the general public, policy makers, and academics give to academic accounting research relative to other business disciplines and other more general disciplines (economics, psychology, and other sciences). The results indicate that accounting research receives significantly less attention from the general public than all other disciplines and also performs relatively poorly in receiving policy makers’ attention compared to both economics and finance. Articles in other disciplines’ elite journals cite relatively little of accounting’s elite-level publications, but non-elite journal articles cite accounting research in similar numbers to other disciplines. …
New Frontiers For Internal Audit Research,
2021
University of Georgia
New Frontiers For Internal Audit Research, Margaret H. Christ, Marc Eulerich, Ronja Krane, David A. Wood
Faculty Publications
Internal audit provides useful and valuable services to organizations and research has established its importance in improving corporate governance. However, the body of internal audit research is still small. Further, there are many new and emerging topics for which little is known and practitioners would like guidance. Based on surveys, interviews, and discussions with practitioners, we identify three broad areas for additional research: information technology, staffing and personnel development, and agile auditing. In each area, we describe the current practices and discuss the relevant accounting literature, noting gaps where additional inquiry is needed. We also provide a list of testable …
Issues Related To The Assessment Of The Effectiveness Of Management Review Controls: Roundtable Summary,
2021
Brigham Young University - Provo
Issues Related To The Assessment Of The Effectiveness Of Management Review Controls: Roundtable Summary, Douglas F. Prawitt
Faculty Publications
The Center for Audit Quality and the Financial Education & Research Foundation(FERF) of Financial Executives International (FEI) commissioned John Fogarty, Mark Beasley and Doug Prawitt to conduct an independent qualitative research study on Internal Control over Financial Reporting (ICFR) management review controls (MRCs), Perspectives on Management Review Controls: Challenges and Solutions (the Research Report). The research focused on subjective, judgmentbased MRCs. Through a series of detailed, semistructured interviews with preparers – in particular the control owners and control performers – the researchers gathered perspectives on how management determines what constitutes effective design, precision, implementation, execution and documentation of MRCs. The …
Beyond Borders: Uncertainty In Supragovernmental Tax Enforcement And Corporate Investment,
2021
Brigham Young University - Provo
Beyond Borders: Uncertainty In Supragovernmental Tax Enforcement And Corporate Investment, Zackery D. Fox, Martin Jacob, Jaron H. Wilde, Ryan J. Wilson
Faculty Publications
Amid growing globalization, many countries have offered tax incentives to attract corporate investment. Prior research studies the role such incentives play in firms’ location and investment choices. However, we have limited evidence on the role that uncertainty about the intensity of future tax enforcement plays in those decisions. In 2013, the European Commission (“E.C.”) abruptly began investigating tax ruling practices of several countries in response to allegations that certain firms received preferential tax treatment (“state aid cases”). We use this setting to study the economic consequences of increased uncertainty about future tax enforcement. We find evidence consistent with significant reductions …
Internal Audit Stigma Impairs Internal Audit Outcomes,
2021
University of Duisburg-Essen
Internal Audit Stigma Impairs Internal Audit Outcomes, Marc Eulerich, Joleen Kremin, K. Kelli Saunders, David A. Wood
Faculty Publications
Prior research finds that the internal audit function (IAF) plays a critical role in organizations, yet there is still a stigma toward the profession. We examine how this stigma affects internal audit outcomes, using three different data sources: survey results from parts of Europe and the United States and an experiment. We find that when practicing internal auditors in parts of Europe and the U.S. believe there is a negative stigma about internal auditing, they report negative work outcomes, including less ability to add value, less influence in the organization, more resistance to implementing their recommendations, and more pressure to …
Earnings Announcement Delays And Implications For The Auditor-Client Relationship,
2021
Washington University in St. Louis
Earnings Announcement Delays And Implications For The Auditor-Client Relationship, Kimball Chapman, Michael S. Drake, Joseph Schroeder, Timothy Seidel
Faculty Publications
We examine whether delays in the expected release of annual earnings have implications for the future auditor-client relationship. Managers have strong incentives to release earnings on schedule and auditors play an important role in helping their clients avoid costly earnings announcement delays. We find an increased likelihood of subsequent auditor-client realignments after earnings announcement delays. We further find that clients changing auditors realign with audit firms that better meet their earnings announcement timing demands without any evidence of a significant compromise to the reliability of the financial statement numbers in the earnings announcement. Our results help inform regulatory concerns about …
Anonymous Equity Research,
2021
Brigham Young University - Provo
Anonymous Equity Research, Travis Dyer, Eunjee Kim
Faculty Publications
Crowdsourced financial information platforms often allow content contributors to publish equity research anonymously. This study examines whether investors value or discount information in anonymous equity research. In the short window around research releases, we find that investors’ stock price reaction to anonymous research is muted in comparison to nonanonymous research. Consistent with credibility concerns influencing investor response, we document that this discount to anonymous research dissipates as the monitoring of content contributors intensifies and as authors develop a reputation for high-quality reporting. In addition, we perform a content analysis on the research reports and find that the muted market reaction …
The Effect Of New Accounting Standards On The Performance Of Quantitative Investors*,
2021
Brigham Young University - Provo
The Effect Of New Accounting Standards On The Performance Of Quantitative Investors*, Travis Dyer, Nicholas Guest, Jia Yin (Elisha) Yu
Faculty Publications
Quantitative investing relies on stable data generating processes and limited human involvement, which could create lower flexibility in the face of changing economic conditions. In this study, we examine quantitative investors’ ability to navigate a common and material change to the financial data generating process: new accounting standards. We find that returns of quantitative mutual funds temporarily decrease following the implementation of standards that change the definition of key accounting variables. The lower performance we document is relative to more traditional “discretionary” funds that rely heavily on human skill and judgment to make day-to-day investment decisions. Our result is predictably …
The Effects Of High Estimate Uncertainty In Auditor Negligence Litigation*,
2021
Brigham Young University - Provo
The Effects Of High Estimate Uncertainty In Auditor Negligence Litigation*, Jeffrey Pickerd, M. David Piercey
Faculty Publications
We examine how jurors’ negligence judgments and attorneys’ out-of-court settlements are differently impacted by two features of a materially misstated accounting estimate—the amount of estimate uncertainty and whether the misstated account is disaggregated into its own line-item or aggregated with other accounts into a single financial statement line-item. We predict and find that jurors and attorneys react to estimate uncertainty in opposite directions under common conditions. This finding is important because when jurors’ judgments and attorneys’ settlements differ, research into juror judgments alone may not capture a complete picture of auditor liability because the vast majority of audit litigation is …
Corporate Governance And Tax Avoidance: Evidence From Governance Reform,
2021
Brigham Young University - Provo
Corporate Governance And Tax Avoidance: Evidence From Governance Reform, Jon Kerr, Richard Price, Francisco J. Román, Miles A. Romney
Faculty Publications
Prior literature struggles to find evidence in U.S. settings to support the Desai and Dharmapala (2006) theory on how corporate governance affects tax avoidance. Most studies rely on equity incentive compensation as their governance proxy. We use a Mexican setting to examine this association and find firms with stronger governance engage in less tax avoidance. We rely on both a hand-collected governance index and governance reform to show improved corporate governance pushes tax avoidance toward a new equilibrium. Supplementary analyses show associations between governance and tax avoidance are greatest for tax-cost-sensitive familyowned firms and non-cross-listed firms with naturally weaker governance. …
Disclosure Sentiment: Machine Learning Vs Dictionary Methods,
2021
Washington University in St. Louis
Disclosure Sentiment: Machine Learning Vs Dictionary Methods, Richard Frankel, Jared Jennings, Joshua A. Lee
Faculty Publications
We compare the ability of dictionary-based and machine-learning methods to capture disclosure sentiment at 10-K filing and conference call dates. Like Loughran and McDonald (2011), we use returns to assess sentiment. We find that measures based on machine learning offer a significant improvement in explanatory power over dictionary-based measures. Specifically, machine-learning measures explain returns at 10-K filing dates, while measures based on the Loughran and McDonald dictionary only explain returns at 10-K filing dates during the time period of their study. Moreover, at conference-call dates, machine-learning methods offer an improvement over the Loughran and McDonald dictionary method of a greater …
Measuring Credit Risk Using Qualitative Disclosure*,
2021
University of Notre Dame
Measuring Credit Risk Using Qualitative Disclosure*, John Donovan, Jared Jennings, Kevin Koharki, Joshua A. Lee
Faculty Publications
We use machine learning methods to create a comprehensive measure of credit risk based on qualitative information disclosed in conference calls and in management’s discussion and analysis section of the 10- K. In out-of-sample tests, we find that our measure improves our ability to predict future credit events (future bankruptcies, future interest spreads, and future credit rating downgrades) relative to existing credit risk measures developed by prior research (e.g., z-score). We also find our measure based on conference calls explains within-firm variation in future credit events; however, we find little evidence that the existing measures of credit risk developed by …
