Accounting Commons^™

Making Accounting Education Fit For Purpose For The New Economy, Yew Kee Ho, Jean Liu, Sze Kee Koh, Kai Teck Ng, Sa-Pyung Sean Shin, Tin Wee Tan, Yuanto Zhu Kusnadi

Research Collection School Of Accountancy

The accountancy profession faces one of its most challenging periods as several factors converge to disrupt it. Technological advancements, the expanding role of accountants, declining student interest in accountancy, and increasing expectations for uniquely human capital all exert pressure on the profession to reinvent itself or face marginalisation. This study, funded by the Institute of Singapore Chartered Accountants (ISCA), examines trends in the accountancy profession alongside accountancy education in Singapore. Its goal is to formulate a fit-for-purpose accountancy education for the new economy.

Politically Connected Firms And The Cash Flow Sensitivity Of Cash: International Evidence, Yuanto Kusnadi

Research Collection School Of Accountancy

This paper examines the role of political connections on the cash flow sensitivity of cash using a sample of international firms. The finding reveals that the cash flow sensitivity of cash is lower for politically connected firms than their non-connected counterparts, which is supportive of the precautionary motive of cash holdings. Further analyses reveal that the result is driven by political connections that are made through the directors of the firms and with members of parliament, as well as by differences in country-level institutional infrastructure. Overall, the empirical results corroborate that of previous studies on the relevance of the precautionary …

Discretionary Dissemination On Twitter, Richard M. Crowley, Wenli Huang, Hai Lu

Research Collection School Of Accountancy

The study provides large-scale descriptive evidence on the timing and nature of corporate financial tweeting. Using an unsupervised machine learning approach to analyze 24 million tweets posted by S&P 1500 firms from 2012 to 2020, we find that firms are more likely to tweet financial information around significantly negative or positive news events, such as earnings announcements and the filing of financial statements. This convex U-shaped relation between the likelihood of posting financial tweets and the materiality of accounting events becomes stronger over time. Whereas research based on early samples concludes that firms are less likely to disseminate financial information …

Public Enforcement Through Independent Directors, Xiaoxi Li, Pingui Rao, Yong George Yang, Heng Yue

Research Collection School Of Accountancy

We examine how public enforcement and private enforcement interact to contain self-dealing activities in emerging markets. Using data from China, we find that firms receiving comment letters concerning related party transactions (RPTs) from stock exchanges significantly reduce their RPTs in subsequent years. We further find that (1) the subsequent reduction in RPTs is more pronounced when independent directors have higher career or reputation concerns and (2) independent directors are more likely to dissent or resign if their firms do not significantly reduce RPTs after receiving RPT comment letters, especially if they have high reputation concerns. Our study sheds light on …

The Impact Of Instrumental Attribution In Ai-Enabled Monitoring On Counterproductive Work Behavior, Qiang Zhang

Dissertations and Theses Collection (Open Access)

AI-enabled monitoring tools are theoretically expected to suppress unethical employee behavior. However, in practice, employees may perceive such monitoring as being driven by leaders' instrumental motives, primarily focused on personal performance evaluation and self-interest. This perception can foster feelings of job insecurity and moral disengagement, ultimately leading to counterproductive work behavior (CWB), which includes unethical employee behavior and turnover. These outcomes may undermine the intended effectiveness of AI-enabled monitoring tools. This study aims to explore the impact of Instrumental Attribution in AIenabled Monitoring (IAAIM) on CWB, specifically focusing on unethical employee behavior and turnover, through both theoretical and empirical lenses. …

Research On The Influence Mechanism Of Value Co-Creation On Enterprise Performance: Empirical Evidence From China's Motorsport Culture Industry, Xiaodong Weng

Dissertations and Theses Collection (Open Access)

We are in an era of digital economy and enterprise change management. The application of digital technologies such as Artificial Intelligence (AI), Blockchain, Cloud Computing, and Big Data (collectively known as ABCD technologies) has increased the competition in the value chain and value network between customers and enterprises. Users can now intervene in product design, transaction, and feedback before, during, and after the process, breaking through the limitations of time and space. They leverage their low-cost advantage to draw attention, shifting from a traditional, unidirectional supply logic to a value co-creation logic. This influences both enterprises and customers to produce …

Big Data Analytics And Management Forecasting Behavior, Beng Wee Goh, Na Li, Tharindra Ranasinghe

Research Collection School Of Accountancy

This paper investigates whether the use of Big Data analytics by firms has a spillover effect on management forecasting behavior. Insights provided by Big Data could potentially improve firms’ ability to forecast earnings (supply channel) and investor demand for earnings information is likely higher for firms engaging in data analytics (demand channel). Using a text-based measure of firms’ commitments to and usage of Big Data analytics, we find that Big Data analytics usage is positively associated with the propensity to issue management earnings forecasts. Consistent with the “supply channel” explanation, we find that Big Data analytics usage is positively associated …

The Impact Of Managerial Myopia On Cybersecurity: Evidence From Data Breaches, Wen Chen, Xing Li, Haibin Wu, Liandong Zhang

Research Collection School Of Accountancy

Using a sample of U.S. firms for the period 2005–2017, we provide evidence that managerial myopic actions contribute to corporate cybersecurity risk. Specifically, we show that abnormal cuts in discretionary expenditures, our proxy for managerial myopia, are positively associated with the likelihood of data breaches. The association is largely driven by firms that appear to cut discretionary expenditures to meet short-term earnings targets. In addition, the association is stronger for firms with greater short-term equity incentives, higher earnings response coefficients, low levels of institutional block ownership, or large market shares. Finally, firms appear to increase discretionary expenditures upon the announcement …

Research On Digital Platform Capabilities And Entrepreneurship Empowerment Performance Of Science And Technology Industrial Parks, Jieyu Zheng

Dissertations and Theses Collection (Open Access)

In the era of the digital economy, industries are shifting toward platform-based and ecological trends, with industrial parks similarly adopting digital and platform-based patterns. The systematic planning, functional layout, and service efficiency of science and technology industrial parks (sci-tech industrial parks for short) are designed to address emerging industries’ spatial and organizational needs. This approach aims to create a system where digital transformation is employed as the mechanism and digital platforms empower entrepreneurial enterprises within these parks, fostering high-quality park development. However, despite efforts to build digital platforms for transforming into digital parks, many industrial parks have found their platform …

Buy Now Pay (Pain?) Later, Ed Dehaan, Jungbae Kim, Ben Lourie, Chenqi Zhu

Research Collection School Of Accountancy

“Buy-now-pay-later” (BNPL) is a relatively unregulated FinTech innovation that provides consumers with easy access to credit for retail purchases. BNPL spending is projected to reach $1 trillion by 2025, but we know little about its effects. Using banking data for10.6 million U.S. consumers, we investigate the effects of BNPL on leading indicators of users’ financial health. We find that new BNPL users experience rapid increases in bank overdraft charges and credit card interest and fees compared with nonusers, consistent with BNPL facilitating overborrowing. An instrumental variable exploiting consumers’ pre-BNPL shopping habits bolsters our inferences. Our results inform regulatory investigations into …

Informativeness Of Key Audit Matters: Evidence From China, Beng Wee Goh, Kiat Bee Jimmy Lee, Dan Li, Muzhi Wang

Research Collection School Of Accountancy

This study examines whether the key audit matters (KAMs) disclosed in expanded audit reports as a part of recent regulatory reforms are informative for investors in an emerging economy setting. Using the recent adoption of expanded audit reports for firms listed exclusively in Mainland China, we find robust evidence that the abnormal trading volume and earnings response coefficients (ERCs) are higher and that stock price synchronicity is lower during the postadoption than preadoption period. In additional tests, we find evidence that KAMs are more informative for non-state-owned enterprises (non-SOEs), smaller firms, and firms with a smaller analyst following. Finally, we …

Accounting For The Eu Green Taxonomy: Exploring Its Concept, Data And Analytics, Lucia Alessi, Theodor Florian Cojoianu, Andreas G. F. Hoepner, Giovanna Michelon

Research Collection College of Integrative Studies

The European Union's Green Taxonomy has been used by corporations to account for and disclose hundreds of billions of Euros in capital expenditures. The aim of the taxonomy is to set a common and clear definition about which economic activities are most needed for the transition to a low-carbon economy, in line with the objectives of the European Green Deal. It is essential that academic research explores (a) to what extent the taxonomy is clearly understood, (b) if it impacts financial, environmental and societal outcomes, and (c) how it can be advanced. We review the nascent literature on this new …

Prosocial Ceos, Corporate Policies, And Firm Value, Mei Feng, Weili Ge, Zhejia Ling, Wei Ting Loh

Research Collection School Of Accountancy

This paper examines how chief executive officers' (CEOs') prosocial tendency influences corporate policies and firm value. We use individuals' involvement with charitable organizations as a proxy for prosocial tendency. We find that, compared to firms with non-prosocial CEOs, firms with prosocial CEOs have lower executive subordinate turnover, implement more employee-friendly policies, experience higher customer satisfaction, and engage in more socially responsible activities. We also find that firms with prosocial CEOs have higher value and lower risk, partly due to the corporate policies adopted by prosocial CEOs. These results are corroborated when we compare changes in corporate policies and firm value …

Preparing Accountants Of The Future: Examining An Accounting Data And Analytics Undergraduate Program In Singapore, Poh Sun Seow, Gary Pan, Clarence Goh, Duan Ning, Magdeleine Lew

Research Collection School Of Accountancy

Due to technological innovations, there is a need for universities to produce accounting graduates who are proficient in data and analytics, in addition to core accounting skills. A university in Singapore launched the accounting data and analytics (AD&A) second major program to provide students with skillsets in data and analytics. The aim of this study is to examine the efficacy of the AD&A program. 100 participants were surveyed, involving 70 graduates of the program and 30 employers. The results show that both graduates andemployers were satisfied with the program. The results also show that the program adequately equips graduates with …

Does Generative Ai Facilitate Investor Trading? Evidence From Chatgpt Outages, Qiang Cheng, Pengkai Lin, Yue Zhao

Research Collection School Of Accountancy

In this paper, we use ChatGPT outages to investigate whether investors rely on generative artificial intelligence (GAI) to perform trading-related tasks and the associated impact on stock price informativeness. We first document a significant decline in stock trading volume during ChatGPT outages and find that the effect is stronger for firms with corporate news released immediately before or during the outages. We further document similar declines in the short-run price impact, return variance, and bid-ask spreads, consistent with a reduction in informed trading during the outage periods. Lastly, we use trading volume changes during outages to construct a firm-level measure …

When Do Corporate Good Deeds Become A Burden? The Role Of Corporate Social Responsibility Following Negative Events, Changhyun Kim, Yoonseok Zang, Heli Wang, Kate Niu

Research Collection School Of Accountancy

This study investigates the differential roles of corporate social responsibility (CSR) in the context of negative events. By categorizing CSR and negative events by their respective stakeholder groups, primary and secondary stakeholders, we theorize and test differential impacts of CSR and their interaction effects with different types of negative events. We propose that, while CSR toward secondary stakeholders offers the monotonous risk-tempering effect, CSR toward primary stakeholders has heterogeneous effects when facing negative events. Specifically, the effect of CSR toward primary stakeholders varies with the type of negative events. When negative events are associated with secondary stakeholders in the domain …

Implicit Commitments To Workplace Environment And Corporate Information Production: Evidence From Indoor Environment Quality, Summer Rui Huang, Leonard Leye Li, Louise Yi Lu, Rencheng Wang

Research Collection School Of Accountancy

This study investigates the effect of a firm’s indoor environment quality (IEQ) on its information production. Leveraging a third-party sustainability building rating system that provides IEQ scores for office buildings, we first show that employees in a firm’s headquarters with better IEQ scores are more likely to leave positive building-related feedback on Glassdoor, indicating employees’ recognition and appreciation of a workplace with superior IEQ. Next, we find robust evidence that firms headquartered in buildings with better IEQ issue more frequent and more accurate management forecasts. Furthermore, we show that a firm’s commitment to better IEQ (1) enhances occupational wellbeing of …

The Effect Of Pcaob Inspections On Corporate Innovation: Evidence From Deficiencies About The Valuation Of Intangibles, Jungbae Kim

Research Collection School Of Accountancy

I examine the economic consequences on corporate innovation when PCAOB inspections cite auditors for insufficient procedures in auditing the valuation of intangibles. I find that the clients of deficient auditors recognize larger and timelier impairments of intangibles, suggesting that affected auditors increase scrutiny about the valuation of intangibles in subsequent audits. This effect obtains only for valuation-related deficiencies and is salient for the clients of auditors who receive such deficiencies repeatedly. I also document real effects that the clients of deficient auditors exhibit less use of external mergers and acquisitions—which yield recognizable intangibles whose valuation is subject to increased auditor …

When Market Forces Backfire: Mandatory Esg Disclosure And Corporate Innovation, Andi Zhang

Dissertations and Theses Collection (Open Access)

Mandatory ESG disclosure makes it possible to incorporate ESG information into stock prices, incentivizing firms to “do good”. This channel, however, may lead to suboptimal investments, according to disclosure theories. This study investigates the changes in firms’ investment in innovation activities following the staggered introduction of mandatory ESG disclosure around the world. Using a sample of corporate patents filed by listed firms across 58 countries from 2000 to 2022, I find that the introduction of mandatory ESG disclosure is associated with less corporate innovation. The effect is mainly driven by countries that mandate ESG disclosure within corporate financial reports, when …

Research On The Impact Of Ai Technology Adoption On Organizational Resilience Of Service Enterprises, Jianlin Deng

Dissertations and Theses Collection (Open Access)

In a time of frequent global economic fluctuations, understanding how service enterprises can sustain stability amid fluctuating environments, and even thrive during crises, has become a significant research focus within the current economic context. Advancements in the digital economy provide service enterprises with new digital technology support, leading to their reduced operational costs and heightened efficiency. Among them, artificial intelligence (AI) technology is highly praised by service enterprises. AI technology is extensively integrated into service enterprises’ daily operations and management decision-making. However, limited research has been conducted on how AI technology can assist these enterprises in navigating external environmental disruptions. …

Study On The Influencing Factors And Performance Effects Of Donation Behavior Of Chinese Small And Medium-Sized Enterprises, Ling Zhou

Dissertations and Theses Collection (Open Access)

Since the implementation of the reform and opening-up policy, in tandem with the continuous evolution of the Chinese economy and society, there has been a mounting demand for enterprises to shoulder and fulfill social responsibilities. Corporate social donations have emerged as a crucial avenue for enterprises to discharge their societal duties. These donations support public welfare in education and healthcare, enhance enterprise image and brand value, foster consumer trust, and drive sustainable development and innovation.

Introduced in the 1990s in China, corporate social responsibility rapidly advanced, yet research on SMEs’ social donations remains scarce. Despite their economic significance, SMEs face …

Financial Literacy And Ipo Underpricing, Xiaoran Jia, Kiridaran G. Kanagaretnam, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of IPO firms and two country-level measures of financial literacy, we find strong evidence that financial literacy is negatively associated with IPO underpricing. In cross-sectional analyses, we find that the effect of financial literacy in reducing IPO underpricing is more pronounced when the information environment is less transparent. Employing path analysis, we document that information friction, firm transparency, and stock market participation are mechanisms that mediate this relationship. Our study contributes to and extends the literature by providing strong evidence that citizens' financial literacy has an important and consistent influence on IPO underpricing.

The Governance Of Director Compensation, Lily Fang, Sterling Huang

Research Collection School Of Accountancy

The average total compensation of directors in U.S.-listed companies was $342,030 in 2020, 5.06 times the median household income. Directors set their own pay, giving rise to potential self-dealing. We argue and document that in the presence of self-dealing, external mechanisms such as legal standards act as effective means of governance. Following a landmark Delaware court ruling that subjected director pay to a more stringent legal standard, Delaware-incorporated firms reduced director compensation relative to non-Delaware firms and experienced positive and non-transient stock price reactions. Our results indicate that proper governance of director compensation enhances firm value.

Informed Trading In Peers Of M&A Firms: Evidence From M&A Advisor Banks, Xuanbo Li

Dissertations and Theses Collection (Open Access)

M&A advisor banks are privy to valuable and sensitive information through their service. I examine whether M&A advisor banks exploit such private information to trade in peers of M&A firms. I provide evidence that M&A advisor banks gain higher profits through their trading in peers of M&A firms, compared with non-advisor banks. Such informed trading is more intensive for M&A deals with larger impacts on peer firms (i.e., when the deal value is more significant for peer firms; when the M&A firms have larger market share in the industry; and when the stock price reactions of peer firms are stronger). …

Research On The Impact Of Tech Founders On Enterprise Innovation And Market Performance, Zhihao Xu

Dissertations and Theses Collection (Open Access)

In recent years, increased entrepreneurial projects have been spearheaded by scientists and technical experts. The likelihood of success for such entrepreneurship has garnered considerable attention.

Leveraging theories including upper echelons theory and attention-based view, this study develops an analytical framework, research hypotheses, and measurement models to examine the correlation between entrepreneurs’ technical backgrounds and enterprise performance. Use first-hand and second-hand data together constitute the core data sources. Utilizing a fixed effect regression analysis model, the study elucidates the correlation between the technical backgrounds of entrepreneurs and enterprise performance. Building upon empirical research, this study also selects entrepreneur cases of typical …

Intrafirm Knowledge Sharing In The Investment Research Industry, Artur Hugon, An-Ping Lin, Stanimir Markov

Research Collection School Of Accountancy

We study interdepartment knowledge sharing in an investment research setting where the benefits are potentially significant for the brokerage and the capital market, but so are the frictions impeding it. Using hand-collected data on equity analyst access to in-house debt research expertise, we find significant benefits to equity analysts in the form of improved ability to forecast cash flows and to anticipate credit rating downgrades. Moreover, we find evidence that access to management and research expertise underlie in-house debt analysts' capacity to generate information beneficial to equity analysts. Finally, these benefits exist only in the presence of a collaborative brokerage …

Research On Futures, Profit Hedging, And Enterprise Price Risk Management In The Bulk Commodity Industry Chain — A Case Study Of Hot-Rolled Coil Industry Chain, Shengxi Liu

Dissertations and Theses Collection (Open Access)

Traditional hedging strategies usually center around a single product, commonly involving companies hedging against the price of their endproducts or essential production materials. At present, traditional hedgingstrategies are no longer sufficient to address the production and management requirements of physical enterprises. There is a need to develop hedgingstrategies aligning with the significant changes in both domestic andinternational markets.

The thesis presents a new profit hedging model based on product manufacturing processes within the industry chain. This method involves hedging production profits by buying (selling) end products and selling(buying) raw materials according to the proportional relationships in the production process on …

When I Know Your Taste: Retail Customers’ Environmental Preferences And Firm Pollution, Mengjie Yang

Dissertations and Theses Collection (Open Access)

I examine whether and how firms incorporate retail customers’ environmental preferences into their pollution decisions. Leveraging the staggered revelations of firms’ environmental negative news and the granularity of household grocery shopping records, I quantify local customers’ heterogeneous environmental preferences based on the extent of product sales declines following the news events. In line with the conjecture that firms factor in rewards and penalties from customers and strategically reduce their pollution, I find a significant improvement in air quality near event firms’ facilities located in markets where local customers reveal the strongest environmental preferences. This effect is more pronounced when news …

Research On The Influence Mechanism Of Digitalization Degree On Manufacturing Enterprise Performance, Dandan Wang

Dissertations and Theses Collection (Open Access)

The application of digital technologies has changed the operation model of traditional industries, and promoted the development of emerging industries. More and more manufacturing enterprises have started or completed digital transformation, and tried new ways of development.

With the advancement of digitalization, the influence of the degree of digitalization on high-quality economic development has attracted great attention from scholars at home and abroad. Although significant resources are put into digital transformation, which is deemed as a strategic core, the specific influence paths of the degree of digitalization on enterprise performance have not yet been fully explored. In the digital era, …

"Just Beat It" Do Firms Reclassify Costs To Avoid The Base Erosion And Anti-Abuse Tax (Beat) Of The Tcja?, Stacie O. Laplante, Christina M. Lewellen, Daniel P. Pynch, David M. P. Samuel

Research Collection School Of Accountancy

This study examines whether multinational corporations (MNCs) reclassify related-party payments to avoid the new base erosion and anti-abuse tax (BEAT). The Tax Cuts & Jobs Act of 2017 included the BEAT to combat income shifting from the U.S. to foreign entities. An exclusion in the tax law provides MNCs an incentive to reclassify related-party payments as cost of goods sold. We use a triple-difference design that leverages the BEAT filing threshold of $500 million in revenue and the parent company’s location to document increases in the unconsolidated sales of foreign subsidiaries of MNCs subject to BEAT relative foreign subsidiaries of …