Accounting Commons^™

Psychological Characteristics Of Board Secretaries And Information Disclosure Quality - An Empirical Analysis Based On The Questionnaire Survey And Interviews With Board Secretaries Of A-Share Listed Companies, Shuijun Dai

Dissertations and Theses Collection (Open Access)

The capital market functions fundamentally on the principles of information, and effective information disclosure acts as the cornerstone of its operation. At present, China's capital market is fully advancing the registration-based reform that is primarily focused on information disclosure. In this context, the secretary of the board of directors ("board secretary")—who serves as the legal officer tasked with overseeing information disclosure for A-share listed companies—plays a vital role in information release and transmission.

In the context of the comprehensive implementation of the registration system and establishment of an investor-oriented capital market, this study surveys over 400 board secretaries from A-share …

How Do Analysts Affect Corporate Innovation? Evidence From Site Visits, Qiang Cheng, Brian Yutao Wang, Holly I. Yang, Zheyuan Zhang

Research Collection School Of Accountancy

While prior studies have examined whether financial analysts affect corporate innovation, there is little research on the mechanism through which this occurs. In this paper, we examine whether and how analysts' questions about innovation during site visits affect corporate innovation. Using a sample of corporate site visits in China, we find that when analysts ask questions about innovation during site visits, firms invest more in R&D in the future. Consistent with knowledge diffusion across firms, this association is stronger when analysts cover more firms in the same industry, when firms share similar technologies as industry peers, and when an innovation-expert …

When Positive Sentiment Is Not So Positive: Textual Analytics And Bank Failures, Aparna Gupta, Cheng Lu, Majeed Simaan, Mohammed J. Zaki

Department of Accounting and Finance Faculty Scholarship and Creative Works

We examine U.S. publicly traded bank holding companies (BHCs) that failed during the 2007–2009 global financial crisis. Using consolidated data at the BHC level and 10-K filings, we investigate the determinants of bank failures during this period using nonlinear machine learning (ML). The in-sample analysis demonstrates that 90% of the failed banks can be classified during 2007–2009. In addition, our sensitivity analysis for interpretable ML shows that net tone is among the top five important features. However, the power of tone/text is less evident when we consider predictive (out-of-sample) analysis. While nonlinear ML models such as random forest and support …

Participant Empowerment, Inclusivity, And Social Justice: A Review Of Meng Tian’S Arts-Based Research Methods For Educational Researchers, Niway Ayalew Adimasu

The Qualitative Report

In reviewing Arts-Based Research Methods for Educational Researchers by Meng Tian (2023), I found a priceless resource for contemporary scholars wishing to add cutting-edge arts-based techniques to their qualitative research inquiries. This book offers a thorough examination of how artistic mediums like poetry, theater, and visual arts can be used to investigate the emotional, psychological, and cultural aspects of education that conventional research frequently ignores. It does this by fusing theoretical understanding with helpful advice. The book focuses on participant empowerment, inclusivity, and ethical considerations when working with vulnerable populations highlights the book’s commitment to social justice, making it especially …

Economic Consequences Of Public Pension Accounting Regulation Changes: Evidence From Housing Markets And Local Economies, Grace Haoqing Fan

Research Collection School Of Accountancy

I examine whether, and through which channels, government pension accounting regulations affect local housing markets and economies. Using both a contiguous border-county approach across multiple states and a single-state study in California, I find that regions exposed to more severe state-level pension underfunding experience lower housing market growth after the introduction of Government Accounting Standards Board (GASB) regulations 67 and 68, which significantly enhance the transparency of public pension underfunding. The effect is more pronounced in states heavily impacted by the new regulations and in counties more reliant on state funding. Further analyses suggest that the observed effect is driven …

The Impact Of Effective Tax Rate And Cash Effective Tax Rate On The Capital Structure, Nguyen Vinh Khuong Dr., Tran Thao Vy, Nguyen Phuong Anh, Pham Thi Anh Hong, Bui Thi Ngoc Trinh, Cao Phuong Uyen

The Indonesian Capital Market Review

The study examines the impact of tax avoidance on the capital structure of listed companies on the Vietnam’s stock market. Conducting GLS regression testing and analysis through data of 657 enterprises listed on the two stock exchanges of Hanoi and Ho Chi Minh City in the period from 2015 to 2022. Research results have shown that initially, when businesses carry out tax avoidance, it will reduce the capital structure of the business because the marginal benefits received from tax avoidance are lower than the marginal costs from tax avoidance. However, after businesses carry out tax avoidance and the benefits from …

Misinformation Regulations: Early Evidence On Corporate Social Media Strategy, Richard M. Crowley, Yun Lou, Samuel T. Tan, Liandong Zhang

Research Collection School Of Accountancy

Against the backdrop of an increasing threat of misinformation on social media, several countries have enacted regulations to curb the spread of misinformation. This study examines how corporate social media strategy responds to misinformation regulations. Using a large cross-country dataset of corporate tweets and a stacked regression analysis, we show that misinformation regulations lead to less corporate social media disclosure. This result suggests that by deterring misinformation, these regulations reduce firms’ need to use social media to counteract its adverse effects. Additional analyses show that the effect is more pronounced among countries with higher social media usage and countries with …

The Impact Of Cost Leadership On Financial Distress Mediated Environmental, Social, And Governance, Steven Asher, Meythi Meythi, Riki Martusa, Rapina Rapina

Jurnal Akuntansi dan Keuangan Indonesia

Background: This study investigates the mediating role of environmental, social, and governance (ESG) performance in the relationship between cost leadership and financial distress among companies in Indonesia. Methods: Using path analysis, the research analyzed a sample of 43 firms listed on the Indonesia Stock Exchange from 2018 to 2022. Findings: The findings indicate that cost leadership positively affected ESG; however, no direct relationship was observed between cost leadership or ESG and financial distress. The mediation analysis reveals that ESG acted as a mediator, linking cost leadership to a reduced risk of financial distress. Conclusion: These results highlight the importance of …

Individual Or Team Analyst Reports? The Organization Of Analyst Research Activities, Xia Chen, Ning Jia, Dan Wang

Research Collection School Of Accountancy

Given the importance of research resource allocation within brokerage firms, we examine key factors that influence the issuance of individual vs. team analyst reports. Using a comprehensive sample of analyst reports from China for the 2008-2021 period, we find that this decision is influenced by (1) the brokerage firm's client interests, whereby firms held by the brokerage firm's mutual fund clients and firms that are the brokerage firm's underwriting clients receive more team than individual reports from the brokerage firm, and (2) the nature of corporate events, whereby routine events receive more team reports and nonroutine events receive more individual …

Bogging Down Investors: An Unintended Consequence Of Litigation Risk, Siwen Fu, Ke Wang, Liandong Zhang, Liu Zheng

Research Collection School Of Accountancy

Securities litigation risk is a well-recognized yet underexplored source of financial reporting complexity or unreadability. This study examines the effect of litigation risk on the readability of corporate financial reports. The 1999 Silicon Graphics Inc. (SGI) court ruling unexpectedly reduced litigation risk for firms within the Ninth Circuit Court's jurisdiction. Using a difference-in-differences design centered on the SGI court ruling, we find that, while the readability of financial reports generally declines over the sample period, treated firms in the Ninth Circuit experience a comparatively smaller decline in readability than control firms in other states after the ruling. Put differently, treated …

Institutional Dual-Holders And Corporate Disclosures: A Natural Experiment, Lin Cheng, Qiang Cheng, Liwei Weng, Mark Yuzhi Yan

Research Collection School Of Accountancy

This study examines the impact of the presence of institutional dual-holders, whose portfolios hold both loans and equity securities of the same firms, on those firms' voluntary disclosures. Using mergers between institutional shareholders and lenders to the same firms as exogenous shocks to identify firms with institutional dual-holders that have high relative equity ownership, we document that such firms are less likely to provide management forecasts and disclose fewer voluntary 8-K items. In cross-sectional analyses, we find that the reduction in voluntary disclosures is more pronounced when institutional dual-holders have higher board representation and when firms have lower litigation risk. …

A Rating System To Evaluate Non-Gaap Exclusion Quality, Patricia M. Dechow, Wei Ting Loh, Annika Yu Wang

Research Collection School Of Accountancy

We develop a rating system to evaluate the quality of individual non-GAAP exclusions. Our perspective is that high-quality exclusions reflect nonrecurring economic transactions, are transitory accounting adjustments, or have little usefulness in forecasting cash flows. We use four approaches to rate exclusions. We evaluate the serial correlation of the exclusion, survey accounting academics’ views, obtain practitioner ratings from the CFA Institute, and identify the exclusions approved by the Chinese securities regulator. A firm’s exclusion quality score is the weighted average rating of its individual exclusions. For our sample of S&P 500 firms, we document that exclusion quality varies by industry, …

How Do Institutional Investors Facilitate Reporting Comparability? Evidence From Common Institutional Ownership In The United States, Xuanbo Li, Yun Lou, Rencheng Wang, Kaitang Zhou

Research Collection School Of Accountancy

We examine how common institutional investors (CIIs) facilitate the financial reporting comparability (FRC) of US firms. Common ownership increases FRC of firms that are directly owned by CIIs (via a direct effect) and has positive spillover effects on other firms in the same industry. We find spillover effects in two types of firms: (1) those that are commonly owned by different institutional investors but are connected through common firms, and (2) those that do not have any common ownership. These results suggest that the effect of common ownership goes beyond commonly owned firms and extends to non-commonly owned firms. Furthermore, …

Crypto Accounting Market Dynamics: Advanced Econometric Analysis Of Earnings Impact With Bert-Powered Genai Models, Karina Kasztelnik, Steven Campbell, Eva K. Jermakowicz

Journal of Global Awareness

This study is, the authors believe, a groundbreaking investigation into the impact of cryptocurrency news on the earnings of publicly traded companies. Using advanced Generative AI (GenAI) models and the BERT framework for sentiment analysis, we integrated comprehensive data from the Financial Modeling Prep API. This enabled us to employ a rigorous event study methodology and advanced machine learning algorithms. Valuable insights were derived from the BERT model, shedding light on the reasons behind abnormal returns and facilitating a thorough analysis of material and immaterial impacts. The study’s findings highlight the significant influence of both positive and negative cryptocurrency news …

Case Studies In Modern Accountancy: Exploring Financial Ethics, Corporate Influence, And Regional Development Through An Interdisciplinary Lens, Caroline Klocke

Honors Theses

This thesis compiles five case studies researched and completed during the 2023-2024 academic year, each exploring a different topic pertaining to the accounting profession today. With the guidance of Dr. Victoria Dickinson, professor at the University of Mississippi, these case studies were completed throughout the Accountancy 420 class to fulfill the research requirements of the Sally McDonnell Barksdale Honors College and the Patterson School of Accountancy. The first case emphasizes reliable international financial reporting, while exploring the exposure of fraudulent Chinese companies listed on U.S. stock exchanges that costed American investors billions of dollars. The second explores U.S. military spending …

Aggregate Earnings And Global Equity Returns, Yigit Atilgan, K. Ozgur Demirtas, A. Doruk Gunaydin, Aynur Dilan Tosun, Duygu Zirek

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper compares the predictive power of aggregate earnings for equity returns in international markets. We rank 51 non-US countries based on the time-series averages of their price synchronicity and market concentration measures, calculated at the firm level using daily data. We find that aggregate earnings negatively predict one-quarter-ahead stock returns in country groups that contain less synchronous and concentrated markets, as opposed to country groups that contain more synchronous and concentrated markets. We attribute the negative predictive power of aggregate earnings to a business cycle effect because high (low) corporate earnings correspond to economic expansions (contractions) that tend to …

Institutional Cross-Ownership Of Peer Firms And Revelatory Price Efficiency, Young Jun Cho, Holly I. Yang, Yue Zhao

Research Collection School Of Accountancy

We argue that cross-ownership increases the amount of private information in stock price, enhancing the ability of stock price to provide feedback to managers. Consistent with this argument, we find greater cross-ownership heightens a firm’s investment-q sensitivity. This effect is stronger for firms with a lower propensity for voluntary disclosure and for firms whose managers hold less private information. Furthermore, we find that cross-ownership is negatively associated with the sensitivity of a firm’s investment to its peers’ stock prices. Additionally, cross-ownership has a stronger impact on the investment-q sensitivity when measured among investors who trade more actively the …

In The Eye Of The Storm: Investor Sentiment And Audit Quality In Korean Financial Reporting, Antonios Persakis, Georgios Kolias

Economic and Business Review

Background and objective: We investigate whether financial reporting quality is associated with economic policy uncertainty and examine the moderating roles of investor sentiment and audit quality during periods of high uncertainty.

Methods: This study focuses on firms listed on the Korea Stock Exchange over the period 1998–2021. We employ a dynamic panel-data model and utilize the Arellano–Bover/Blundell–Bond system estimator, a two-step generalized method of moments estimator that leverages instrumental variables to mitigate the issue of endogeneity.

Results: The empirical result provides support for the hypothesis suggesting that Korean economic policy uncertainty is positively associated with financial reporting quality, indicating that …

Beyond The Disaster Zone: How Disruptive Climate Event Shape Epa Oversight And Firm Behavior, Grace Fan

Research Collection School Of Accountancy

We examine how experiences with disruptive climate events impact the Environmental Protection Agency’s (EPA) monitoring activities and subsequent firm behaviors. Using plausibly exogenous variation in the exposure of EPA regional offices to major hurricanes, we find that exposed EPA regulators increase their monitoring efforts, measured by both inspection frequency and length, at facilities located in their jurisdictions but outside the disaster zone. This effect diminishes over time and is stronger for regulators located closer to the disaster area or experiencing the disaster for the first time. Importantly, the heightened regulatory monitoring following disasters has real effects on regulated facilities–they face …

Unexpected Defaults: The Role Of Information Opacity, Aytekin Ertan, Yun Lee, Regina Wittenberg-Moerman

Research Collection School Of Accountancy

Bond defaults are undesirable yet natural outcomes of risky investments. What is also crucial but hitherto underexplored is the unexpectedness of defaults. We develop a parsimonious measure of default unexpectedness and highlight its economic importance by demonstrating that unexpected defaults are associated with unfavorable recovery outcomes and adverse price changes in peer firm bonds. We then examine how default unexpectedness relates to information opacity. We find that firms with opaque financial reporting and weak voluntary disclosure experience more unexpected defaults. Defaults also occur more unexpectedly when the external information environment is opaque—when rating agencies disagree on a firm’s credit risk …

Industry Peer Information And The Equity Valuation Accuracy Of Firms Emerging From Chapter 11, Bingxu Fang, Sasan Saiy, Dushyantkumar Vyas

Research Collection School Of Accountancy

Valuation plays a central role in determining Chapter 11 reorganization outcomes. However, obtaining accurate valuation estimates of reorganized firms is challenging because of limited firm-specific market-based information and the oft-conflicting incentives of claimholders. We examine the role of industry peer information in reducing misvaluations and its implications for unintended interclaimant wealth transfers and postreorganization performance. First, we find that the availability of relevant industry peer information is negatively associated with equity valuation errors for firms emerging from Chapter 11. Cross-sectional results suggest that the relation between industry peer information and valuation errors varies substantially with debtors’ information environment and case …

Green Innovation And Firms’ Financial And Environmental Performance: The Roles Of Pollution Prevention Versus Control, Qiang Cheng, An-Ping Lin, Mengjie Yang

Research Collection School Of Accountancy

This study examines the effects of firms' green innovation on their future financial and environmental performance. If pollution is primarily a manifestation of wasted resources, then investments in pollution prevention technologies can both reduce the environmental impact of production and improve financial performance. In contrast, investments in pollution control technologies likely reduce the environmental impact of production without improving financial performance. Using green patents to capture firms' investments in these two types of technologies, we find that the value of a firm's pollution prevention patents is positively associated with its future financial and environmental performance, and that the positive impact …

Exploration Of Designing An Automatic Classifier For Questions Containing Code Snippets—A Case Study Of Oracle Sql Certification Exam Questions, Hung-Yi Chen, Po-Chou Shih, Yunsen Wang

Department of Accounting and Finance Faculty Scholarship and Creative Works

This study uses the Oracle SQL certification exam questions to explore the design of automatic classifiers for exam questions containing code snippets. SQL’s question classification assigns a class label in the exam topics to a question. With this classification, questions can be selected from the test bank according to the testing scope to assemble a more suitable test paper. Classifying questions containing code snippets is more challenging than classifying questions with general text descriptions. In this study, we use factorial experiments to identify the effects of the factors of the feature representation scheme and the machine learning method on the …

Can Whistleblowing Improve Organizational Effectiveness? Evidence From Financial Reporting Misconduct, Hong Kim Duong, Sadok El Ghoul, Omrane Guedhami, Emmanuel Sequeira, Zuobao Wei

Accounting Faculty Publications

Background

While whistleblowing (WB) has attracted growing research interest in recent years, several critical WB-related issues remain underexplored.

Purpose

This study examines the impact of external WB allegations on a firm’s organizational capital (OC). Such allegations often indicate management’s failure to address employee concerns internally, spotlighting potential deficiencies in internal reporting systems, employee communication, training, and trust in organizational fairness. To mitigate reputational damage, restore employee trust, and prevent future incidents, we posit that WB firms respond by increasing OC investment.

Research design

We employ a difference-in-differences approach, comparing OC changes in WB-targeted firms with those in a propensity score-matched …

Merchant Guild Culture And Companies’ Sustainable Development: An Empirical Investigation Based On Esg Performance, Yi Wang

Dissertations and Theses Collection (Open Access)

In the context of global economic growth and growing emphasis on sustainable development, this study focuses on the impact of merchant guild culture, an important part of traditional Chinese culture, on the sustainable development of enterprises. Through an in-depth exploration of the historical evolution and cultural connotations of merchant guild culture, this paper systematically analyzes its potential influence on corporate behavior and sustainable development. Using a sample of A-share listed companies and applying regression analysis and other empirical research methods, this study finds that merchant guild culture facilitates the sustainable development of enterprises. Mechanism analysis reveals that merchant guild culture …

Provision Cfo: Empowering Strategic Financial Excellence For Small Businesses And Entrepreneurs, Cindra Vang

Doctor of Strategic Leadership (DSL) Capstone Abstracts

Project Overview

ProVision CFO offers strategic financial management solutions tailored to the unique needs of entrepreneurs, small businesses, and rapidly growing organizations. This project aims to equip clients with robust financial strategies and actionable insights necessary for sustainable growth, operational excellence, and long-term success. ProVision CFO provides comprehensive financial guidance including fractional CFO and accounting services.

Project Themes

The ProVision CFO framework encompasses three key components designed to optimize financial performance and organizational effectiveness. Component One—Strategic Clarity: Establishing clear financial goals aligned with organizational vision, mission, and values. Component Two—Financial Optimization: Providing accounting services to streamline financial processes and enhance …

Proof Of Reserves: A Double-Helix Framework, Maksym Lazirko, Deniz Appelbaum, Miklos Vasarhelyi

Department of Accounting and Finance Faculty Scholarship and Creative Works

Cryptocurrency exchanges face increasing pressure to demonstrate reserve adequacy following platform failures, yet current Proof of Reserves (PoR) systems suffer from incomplete verification approaches that examine either on-chain or off-chain assets separately. This study introduces the Double-Helix Framework, a verification methodology that integrates on-chain blockchain analysis with off-chain consensus algorithms to provide complete assessment of exchange financial positions. The framework employs parallel verification strands that simultaneously validate blockchain-recorded transactions and off-chain financial information, creating a unified assessment mechanism that addresses the verification gaps in existing PoR systems. The framework's integration of traditional auditing principles with distributed ledger verification creates new …

The Impact Of The Covid-19 Pandemic On Corporate Performance And Cash Dividend Distribution In China's Manufacturing Industry, Wang Danni, Lim Thien Sang, Lei Guangmei

The Indonesian Capital Market Review

As an unprecedented global public health emergency with rapid spread and challenging prevention and control measures, the COVID-19 pandemic has profoundly impacted corporate performance worldwide. Notably, the manufacturing industry in China has been severely impacted. To comprehensively understand the influence of significant public health incidents on enterprises and mitigate the epidemic's repercussions, the unbalanced panel data of China's A-share listed manufacturing enterprises from 2018 to 2023 was analyzed by regression analysis. The findings demonstrate that the COVID-19 outbreak has diminished these enterprises' financial and market performance. Moreover, companies with higher cash dividends and more excellent stability exhibit superior future performance …

Navigating New Capital Sources: Financing Constraints And The Growth Of Private Credit, David George Mathias Jr.

CMC Senior Theses

The rapid growth of private credit—non-bank lending where firms receive funds directly from private lenders like asset managers, private equity firms, and institutional investors—has reshaped corporate financing dynamics. This paper examines how private credit influences firm financing constraints and macroeconomic risk through the use of a dataset consisting of private credit deals, firm-level financial metrics, and macroeconomic indicators from 1995 to 2023. Regression analysis reveals that private credit has an insignificant effect on financing constraints as it generally acts as a substitute for traditional financing and a counterforce to tightening bank policies. However, a significant relationship emerges between private credit …

Corruption Perception, Institutional Quality And Stock Prices: Evidence From The Egyptian Capital Market, Rasha Elbolok, Gina Eltabei, Dina Hassouna

Business Administration

This study examines the impact of institutional quality and corruption perception on stock prices in the Egyptian capital market, with a focus on the post-revolution period from to . Using the Generalized Method of Moments (GMM) methodology, this study provides empirical evidence on the significant role of macro-political factors and firm-specific variables in shaping stock market dynamics. The findings reveal that institutional quality, characterized by governance efficiency, regulatory frameworks, and the rule of law, positively correlates with stock prices. Similarly, enhanced corruption perception control significantly boosts investor confidence, leading to increased market valuations. Firm-level factors such as Tobin’s Q and …