Value relevance of accounting number

The study examined the impact of discretionary production cost on value of listed oil and gas marketing companies in Nigeria. The study used secondary panel data techniques for data analysis and interpretations in order to fully capture the objectives. The population of this study is made up of twelve oil and gas marketing companies listed NGX for a period of thirteen (13) years (2010-2022). Out of which eighty were used as sample size. The data was analyzed using descriptive and inferential statistical tools. Panel Regression technique was used to determining the impact of the explanatory variables on the dependent variable. The regression result shows that discretionary production cost has insignificant impact on value of listed oil and gas marketing companies in Nigeria. This implies that discretionary production decisions have secured balance with effective risk management and cost control, as the market may not strongly reward or penalize firms based solely on these decisions. Based on this conclusion, the study recommends that for purpose of investors, and policymakers, management of listed oil and gas marketing companies in Nigeria should assess the impact of discretionary production in conjunction with other critical factors influencing firm value. More son, strategic risk management and cost control practices should be emphasized to balance discretionary production decisions.

Accounting standard setters prescribed that entity should disclose information to enable users of its financial statements evaluate the nature and financial effects of the business activities in which it engages and the economic environment in which it operates. Disclosure of relevant information will help build transparency with stakeholders. Disclosures are designed to assist outside users of financial information for the purpose of making investments in the business. The purpose of this study is to show the outcome of the examination of selected publicly listed companies in the manufacturing industry's operating segment disclosure practices with regards their compliance with the financial reporting requirement embodied in International Financial Reporting Standard (IFRS) 8. A sample of ten (10) listed Philippine manufacturing companies is used in this research. This study made use of 2010 IFRS disclosure checklist. The results suggest that none of the companies complied with all of the disclosure requirements of IFRS8.

The oil and gas industry plays a pivotal role in Nigeria's economy, contributing significantly to the country's economy. However, challenges such as oil price volatility, operational inefficiencies, environmental risks, and corruption undermine its potential. This study examines the relationship between IFRS 6 accounting options and the value relevance of Nigerian oil and gas firms, focusing on key financial metrics such as Tobin's Q, enterprise value, earnings per share, and price-to-book value. Using an ex post facto research design and inferential statistical techniques, data from listed oil and gas firms spanning 2012 to 2022 were analyzed. The findings reveal inefficiencies in translating exploration investments into firm value, with fixed asset intensity, cash investments, and intangible assets showing insignificant negative impacts on market valuation and equity returns. It was concluded that the accounting flexibility under IFRS 6 contributes to inconsistencies in financial reporting and investor skepticism. Recommendations include refining IFRS 6 guidelines to standardize the reporting of exploration and evaluation expenditures, enhancing transparency, and reducing managerial discretion. Additionally, professional accountants are enjoined to ensure faithful representation of financial information to bridge the gap between accounting data and market perceptions.

Research Question: Has IFRS adoption improved the value-relevance of financial statement figures in Nigeria?

Motivation: The informativeness of the reported earnings, book values, and cash flows depends on the accounting standards used in preparing the financial statements. IFRS is a global set of accounting standards that tries to improve the relevance of accounting figures by recommending more realistic measurement and recognition criteria and increasing the level of disclosure of relevant information.

Idea: The value relevance of accounting figures in predicting stock prices is widely acknowledged. However, this study tests whether IFRS adoption significantly improves this value-relevance by increasing the degree of correlation between accounting figures and stock prices in Nigeria.

Data: The data were collected from the Bloomberg market data terminal and Datastream financial database. A sample of 85 listed companies was selected. The sample period was from 2007 to 2016.

Tools: The study applied the Ohlson model (using fixed and random-effect models) along with the Driscoll-Kraay standard errors (DKSE) and Panel-corrected standard errors (PCSE) to anticipate autocorrelation, heteroscedasticity, and cross-sectional dependence biases. The
Ohlson model was estimated separately for the pre- and post-IFRS adoption periods to detect changes in value relevance. The interactions of the IFRS dummy with earnings, book values, and cash flows were also estimated separately to detect the significance of IFRS interaction
with the accounting figures.

Findings: The results showed an overall increase in value-relevance by comparing adjusted R2s across the pre-and post-IFRS adoption period. Also, the interactions of IFRS with earnings, book value, and cash flows were all significant.

Contribution: The study contributes to the existing literature by including cash flow in the value-relevance test in Nigeria and by applying estimation techniques that control for possible estimation biases. The authors recommend that investors pay more attention to these accounting figures under the IFRS regime when making investment decisions.

The quality of earnings is a summary metric in firm performance evaluation and a focal question to assess the quality of accounting information. A high-quality earnings figure will reflect a firm's current operating performance, being a good indicator of future operating performance; it also accurately annuitizes the intrinsic value of the firm. The multidimensional nature of the earnings quality (EQ) concept has given form to a multiplicity of constructs and measures. This chapter offers a systematic literature review on EQ and its implication on firm value. On the one hand, it discusses the different existent definitions of EQ and the multidimensional nature of the concept; on the other hand, it highlights a “new” EQ perspective taking into account the virtuosities of the residual income model. An empirical model is proposed that reinterprets rebuilding the linear information dynamics in relation to market value added and captures, in a composite measure, the three-dimensional...

This study examines the impact of corporate governance structures on the levels of compliance with mandatory IFRSs disclosure requirements by companies listed on the Amman Stock Exchange (ASE) as a leading Arab stock exchange. Using a disclosure index derived from mandatory IFRSs disclosure requirements for the fiscal year 2007, this study measures the levels of compliance by a sample of 75 non-financial companies listed on the ASE. This study extends the financial reporting literature and the emerging markets disclosure literature by being one of the first to investigate the influence of corporate governance requirements for best practices on the levels of compliance with mandatory IFRSs disclosure requirements by companies listed on the ASE. Results provide evidence of the lack of influence of corporate governance best practices on the levels of compliance with mandatory IFRSs disclosure requirements as it is not yet part of the cultural values within the Jordanian context. These ...

The board structure of an organization gives an overview of the standard of such organization, which also influences its public image. This study attempts to evaluate the role board structure plays in curtailing earnings management practices in Nigerian companies. This study sampled the data of 137 quoted companies in Nigeria for a period of 8 years (2003-2010). Earnings management was measured using the magnitude of the discretionary accruals as estimated by the performance matched modified Jones model. The ordinary least squares (OLS) regression technique was used to measure the research model as well as the Pearson moment correlation coefficient. The study shows that there is a significant relationship between board structure and earnings management practices in Nigeria. The study shows that there is a negative significant relationship between board size, gender, and board composition with earnings management; also, there is a positive significant relationship between board meeting and earnings management practices in Nigeria. There is a positive nonsignificant relationship between the presence of a remuneration committee and the dualization of CEO and chairman positions with earnings management practices in Nigeria. This study recommends that regulators at all levels should enforce the preparation and publication of financial reports by companies operating in Nigeria.

Amidst the IASB's post-implementation review of IFRS 8, we examine how the standard's adoption changed the reporting of segments by European blue chips (i.e. companies comprising the top tier index of 14 European stock exchanges). We focus on anticipated benefits articulated in the IASB's Basis for Conclusions and concerns expressed by IFRS 8 opponents. In addition to convergence with U.S. GAAP, IFRS 8 results in the reporting of significantly more operating segments on average. However, most companies report the same number or fewer segments. Refuting claims regarding the loss of geographic data at the entity-wide level, we identify an improvement in the fineness of disclosures and a significant increase in the disclosure of geographic groupings. We do not identify an improvement in consistency of segment disclosures with other sections of the annual report, which is due to the consistency already achieved under IAS 14R. IFRS 8 results in a significant decline in the number of reportable segment information items (notably liabilities) and a significant decline in the reporting of capital expenditures at the entity-wide level. Furthermore, adoption of the standard produces a lack of comparability in segment profitability measures and extensive reporting of non-IFRS measures. However, almost all companies report a measure of segment profitability tied to a number on the consolidated income statement or reconciled to the income statement.

This report examines the predictive value of geographic revenue disclosures under IFRS 8 in forecasting company revenues using four forecast models. The findings show that the predictive accuracy of IFRS 8 entity-wide geographic sales significantly outperform consolidated sales in forecasting consolidated sales one year out. The results indicate that the predictive ability of country specific entity wide geographic sales improves on average by six percent when geographic sales are reported for country of domicile or by each individually material country. The study also finds that geographic sales disclosures by companies located in countries with high and moderate enforcement regimes improve the predictive accuracy of geographic sales by five percent. These results provide evidence that the disclosure of finer geographic sales data is more decision useful and associated with improved predictive accuracy for large listed companies in Europe, Australia and New Zealand.

This study focused on the emergence of accounting theory from practice towards general accounting theory in corporate organization in Nigeria. It was carried out, using Guinness Nigeria PLC. The study is based on primary and secondary sources of data. Data were gotten from the audited financial statement of organization for a period of four years (2014-2017) through simple random sampling technique. Regression analysis is used to test the hypothesis for this study at 5 per cent level of significance. Findings revealed that there is a significant relationship between accounting theory and accounting practice in corporate organization. It is recommended that organization should be consistent with type of accounting theory adopted in preparation of their various accounting records, since there is proportional relationship between accounting theory and financial reporting. Keywords: Accounting Theory, Accounting Practice, Corporate Organizations, Financial Statement, Normative Accountin...

The effect of women's presence on the board of directors on the quality characteristics of financial information of companies listed on the Tehran Stock Exchange

Abstract
Women make a significant contribution to economic success, which in turn creates value and contributes to the well-being of others. Women pay more attention to social relations and are interested in performing their duties more effectively and are more likely to follow the rules, so their presence on the board of directors of companies can be fruitful and useful. In this study, the role of women's presence on the board on the quality of financial statement information is examined. To test the research hypotheses, the financial information of 125 companies listed on the Tehran Stock Exchange during the years 1390 to 1398 was used. In this study, the number of women in the composition of the board of directors was an independent variable and variables related to information quality (honest expression, timeliness and comparability) was a dependent variable. The results of testing the research hypotheses using regression method showed that the presence of women in the management structure of listed companies has increased the quality of company information in such a way that the presence of women among board members is the gender diversity of board members. Direct and meaningful on the honest expression of financial statements, the timeliness of financial reports and also increase the comparability of financial statements.

تأثیر حضور زنان در هیئت ‏مدیره بر ویژگی‏های کیفی اطلاعات مالی شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران

چکیده

زنان نقش شایان‏ ذکری در کسب موفقیت در زمینه‏های اقتصادی دارند که به ایجاد ارزش‏آفرینی و افزایش سطح رفاه افراد در جامعه منجر می‏شود. آنان در مقولة روابط اجتماعی دقت نظر بیشتری دارند و بر انجام‌دادن صحیح وظایف محوله و پیروی از قوانین حاکم اهتمام بیشتری می‏ورزند؛ بنابراین، حضور زنان در هیئت‏مدیرة شرکت‏ها می‏تواند مفید واقع شود. در این پژوهش، به بررسی نقش حضور زنان در هیئت‏مدیره بر کیفیت اطلاعات صورت‏های مالی پرداخته می‏شود. جامعة آماری پژوهش شامل اطلاعات مالی 125 شرکت پذیرفته‏شده در بورس اوراق بهادار تهران طی سال‏های 1392 تا 1398 است. در این پژوهش، متغیر مستقل، تعداد زن در ترکیب هیئت‏مدیره و متغیر وابسته متغیرهای مرتبط باکیفیت اطلاعات (بیان صادقانه، به‏موقع بودن و قابلیت مقایسه) هستند. نتایج حاصل از آزمون فرضیه‏های پژوهش، که از روش رگرسیون استفاده شد، نشان می‏دهد که وجود زن در ساختار مدیریت شرکت‏های بورسی موجب افزایش کیفیت اطلاعات شرکت شده است. بدین شکل که حضور زنان بین اعضای هیئت‏مدیره، که تنوع جنسیتی اعضای هیئت‏مدیره است، تأثیر مستقیم و معناداری بر بیان صادقانة گزارش‏های مالی و به‏موقع بودن گزارش‏های مالی دارد و همچنین باعث افزایش قابلیت مقایسة صورت‏های مالی می‏شود.

Purpose-This paper aims to explore how the characteristics of the board of directors (BoD) shape earnings and book value information available to market participants. Design/methodology/approach-The authors investigated the impact of board size, presence of nonexecutives and role duality as proxies of effective corporate governance on the value relevance of financial reporting for 178 firms on the Kuwait stock exchange in 2013. Regression analysis based on Ohlson's (1995) valuation model was used to test hypotheses. Findings-The authors found that board size was significantly associated with company value and that Kuwaiti firms with large boards increased the value-relevance of earnings and book value. The influence of role duality was positive although not significant. The presence of non-executives on the board had a negative correlation with market value (not significant). Research limitations/implications-These findings deliver empirical support for the prediction that the characteristics of the BoD improve the value relevance of financial reporting. Limitations such as small sample size and one-year duration of the study did not negate the basic findings, however. Future studies will use larger samples, longer duration and additional board characteristics. Practical implications-This study provides empirical support for the hypothesis that board size influences market valuation. This study may benefit managers, investors and other decision-makers. Originality/value-This study delivers empirical evidence on the impact of board characteristics on the value relevance of accounting information. It will be useful for regulators and market participants monitoring the influence of board characteristics on the value relevance of accounting information.

The Securities and Exchange Commission censured its former Chief Accountant, William W. Werntz, in a case involving his first audit after leaving the SEC. This study investigates the oddities and mysteries surrounding this case and the conclusions reveal lessons for accounting historians. One conclusion is that the establishment of accounting and auditing standards is conducted in a political environment. Further, individuals who work in this environment have complicated and, sometimes, adversarial past associations and some promote ideas out of positions of self-interest, personal animosities, or for the sake of appearances. Thus accounting historians are warned to be aware of the political and social facets that underlie events and actions when trying to discover the theory behind the rules and to also suspect that the position taken may not have been for ideological reasons. As with this episode, some mysteries may not be resolved because vital facts are not available and thus the most important warning is to gather facts while the witnesses are available to provide information.

Corporate failures across the globe have become an issue of concern for stakeholders andregulators. Financial reporting scandals that occurred in oceanic bank, intercontinental bank andthe recent bank crises of Skye Bank in 2016 really motivated the need for this study. The studyexamines audit quality, governance mechanism and earnings management of listed deposit moneybanks in Nigeria for the period of eleven years from 2009-2019. The population of the study consistsof all the 14 listed deposit money banks in Nigeria as at 31st December, 2019. The study adoptedexpo-factor and correlation research designs, and multiple regression was employed as techniqueof data analysis. The findings of the study revealed that audit independence, managerial ownershipand board independent have significant negative impact on earnings management of quotedNigerian banks while auditor size and audit tenure have insignificant influence on earningsmanagement of listed deposit money banks in Nigeria. In li...

Companies want to signal the quality of their financial reporting to stakeholders. Therefore, should care about the quality of their disclosed information. One of the indicators of such quality is the quality of disclosed Earnings. Companies aim to mitigate the imprecision risk that may be embedded in thier financial reporting by disclosing accurate earnings. Controlling such risk may have an impact on the future cash flow and consequently on the cost of companies’ equity.

This study was conceived to investigate the extent of relationship between accounting numbers and market values of listed Deposit Money Banks (DMBs) in Nigeria using the Easton and Harris model. Accounting information data were collected from the published financial statements of the sampled DMBs and the market value data were gathered through official daily list of the Nigerian Stock Exchange over a period of nine years (2004-2012). Multivariate regression was used to test the hypothesis of the study. The study established that accounting information of DMBs in Nigeria is value relevant. Though the result established value relevance of accounting information, however, earnings which is reputed to be the most valuerelevant account information for financial services firms was found to be irrelevant as its coefficients and p-value were small and insignificant. The study recommends that the management of DMBs in Nigeria should improve on their earnings as doing so will prevent recurrence of stock market crisis of 2008 and 2009.

The objectives of financial reporting: the case for coherence the Conceptual Framework, and standards This paper proposes a basis for progress in the development of the conceptual framework (CF) as a foundation for developing accounting standards. This topic has gained increased prominence following the IASB's (2013) release of its Review of the Conceptual Framework for Financial Reporting (RCFFR) proposing changes to the CF. In this paper the broad socioeconomic environment is seen as determining the primary purpose of General Purpose Financial Reporting (GPFR) which, in turn, establishes the high-level properties of a CF suitable to meet that primary purpose. GPFR's primary purpose is to support market stability and efficiency through the provision of an account of the financial position and performance of an entity that accords with economic reality. The case is made that the primary purpose of a CF is to provide the principles for the development of accounting standards that will 'produce' GPFR that is useful. This requires theoretical coherence. The CF should drive the standards and if standards depart from the CF principles, such departures should be justified. This proposal is consistent with the position adopted in the RCFFR. However, in contrast to the RCFFR, this paper accents the purposive approach and links the formation of standards directly to the CF. This implies that standards, as sets of rules, are subordinate to CF principles; therefore compliance with standards should not provide a basis for compromising the faithful representation of economic reality. From the purpose identified for GPFR, the paper argues for a default presumption in favour of Fair Value Accounting, a retreat from asset/liability approach, and a re-casting of the income statement to focus on operational flows.

Corporate failures across the globe have become an issue of concern for stakeholders andregulators. Financial reporting scandals that occurred in oceanic bank, intercontinental bank andthe recent bank crises of Skye Bank in 2016 really motivated the need for this study. The studyexamines audit quality, governance mechanism and earnings management of listed deposit moneybanks in Nigeria for the period of eleven years from 2009-2019. The population of the study consistsof all the 14 listed deposit money banks in Nigeria as at 31st December, 2019. The study adoptedexpo-factor and correlation research designs, and multiple regression was employed as techniqueof data analysis. The findings of the study revealed that audit independence, managerial ownershipand board independent have significant negative impact on earnings management of quotedNigerian banks while auditor size and audit tenure have insignificant influence on earningsmanagement of listed deposit money banks in Nigeria. In li...

This study aims to internal corporate governance literature with a bibliometric analysis approach. To carry out this analysis, the data obtained from Dimensions with certain criteria are used, then mapping and analysis are carried out using VOSviewer and Bibliometrix. From the results of this analysis, researchers found the conceptual structure and intellectual structure used in the internal corporate governance literature. Then this research also found journals, authors, organizations, and countries that have the most significant contribution in the development of internal corporate governance. From the analysis that has been done, the researcher found that there are still topics of corporate control that researchers around the world rarely touch. This paper provides an overview of how the literature on internal corporate governance and provides an opportunity for further researchers to develop research on internal corporate governance

This study examines the association between four pivotal audit committee characteristics and accounting conservatism. Using a sample of 7,668 Australian firm-year observations from 2004 to 2012, a positive association is found between accounting conservatism and: (a) a director with financial expertise on the audit committee; (b) an experienced director on the audit committee; and (c) frequency of audit committee meetings. Within an agency theoretical framework, results suggest that audit committees act as effective monitoring mechanisms in restricting management's opportunistic behaviour and overstatement of earnings. Results also suggest that regulators (and other stakeholders) should pay greater attention to the financial expertise, experience of members and meeting frequency of the audit committee when judging the committee's value.

Dr Dunne has published in a wide range of academic and professional journals on areas such as accountability, financial reporting, accounting standard setting, charity accounting and governance, international accounting, XBRL, treasury practice and control and corporate governance.

The study investigates the moderating effect of leverage on the value relevance of accounting information in the Nigerian listed oil and gas firms. The study used correlational research design and the data was extracted from the published annual financial reports of the firms for the independent variables and the moderator. On the other hand, the data for the dependent variable (share prices) was collected from Nigerian stock exchange website. A sample size of 6 firms were used for a period of eight years (2011-2018). The data was analysed using multiple regression analysis. Findings from the analysis showed that earnings per share, and leverage to be value relevant. Additionally, book value per share moderated with leverage was value relevant in addition to earnings per share moderated with leverage as well. Based on the findings, the study recommends that listed oil and gas firms in Nigeria should strategize to improve their earnings, Moreover, they should also find way of managing their book value, as any unnecessary investment means negative effect on share price. Additionally, listed oil and gas firms should maintain an appropriate level of leverage so that the cheap cost of leverage will reduce the weighted average cost of capital and subsequently increase value to investors. Finally, the explanatory power of the moderated variables are more than the ones not moderated.

Corporate failures across the globe have become an issue of concern for stakeholders and regulators. Financial reporting scandals that occurred in oceanic bank, intercontinental bank and the recent bank crises of Skye Bank in 2016 really motivated the need for this study. The study examines audit quality, governance mechanism and earnings management of listed deposit money banks in Nigeria for the period of eleven years from 2009-2019. The population of the study consists of all the 14 listed deposit money banks in Nigeria as at 31 st December, 2019. The study adopted expo-factor and correlation research designs, and multiple regression was employed as technique of data analysis. The findings of the study revealed that audit independence, managerial ownership and board independent have significant negative impact on earnings management of quoted Nigerian banks while auditor size and audit tenure have insignificant influence on earnings management of listed deposit money banks in Nigeria. In line with the findings, the study therefore concluded that audit independence, managerial ownership and board independence have significant negative impact on earnings management of banks in Nigeria while audit firm size and audit tenure have no significant impact on earnings management of listed deposit money banks in Nigeria. It is therefore recommended that Nigeria listed deposit money banks should maintain the audit fees they are paying to the audit firm or increase it as any attempt to reduce the audit fees can increase earnings management. However managerial shareholding should be increase as it will reduce earnings management and also board independent directors on the board should be increased from minimum of two as it will reduce earnings management of listed deposit money banks in Nigeria on the other hand there is no significant impact between audit firm tenure and audit firm size on earnings management of listed deposit money banks in Nigeria. For audit firm size the study recommended that local audit firms should be used instead of the Big 4 as the size

This study assessed the moderating effect of audit quality on value relevance of accounting information of listed firms on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used with the population of 192 and sample size of 58 firms covering the period of 2012 to 2020. Thus, empirical model was estimated using Ordinary Least Square (OLS) regression technique. The results of this study revealed that there is a significant positive effect between book value per Share and market Share Price of listed firms in Nigeria. The study recommends that all listed companies in Nigeria should prepare and disclose additional information on the financial accounting indicators used for investment decisions alongside with the mandatory financial statements. This is expected to provide clearer information about the dividend per share and financial performances of companies to equity share investors.

This study aims to internal corporate governance literature with a bibliometric analysis approach. To carry out this analysis, the data obtained from Dimensions with certain criteria are used, then mapping and analysis are carried out using VOSviewer and Bibliometrix. From the results of this analysis, researchers found the conceptual structure and intellectual structure used in the internal corporate governance literature. Then this research also found journals, authors, organizations, and countries that have the most significant contribution in the development of internal corporate governance. From the analysis that has been done, the researcher found that there are still topics of corporate control that researchers around the world rarely touch. This paper provides an overview of how the literature on internal corporate governance and provides an opportunity for further researchers to develop research on internal corporate governance

The study is aims to examine whether the adoption of accounting measurement of AIS/IFRS standards has resulted in more relevant financial information for decision making or not. This study examines the use of fair value measurement on value of financial instruments to capture if there is any effect on the market value of financial companies. Ohlson (1995) framework has been employed to investigate this relationship. The Jordanian financial sector was the sample for the study during the years from 2012 to 2016. Our study findings, based on the results of correlation and multiple regression analysis showed that, market value of Jordanian financial companies is significantly positively related to financial instruments measured by fair values. The final result assured that; the new accounting measurements methods such as fair values are value relevant for Jordanian financial companiesduring all period of the study.

The study is aims to examine whether the adoption of accounting measurement of AIS/IFRS standards has resulted in more relevant financial information for decision making or not. This study examines the use of fair value measurement on value of financial instruments to capture if there is any effect on the market value of financial companies. Ohlson (1995) framework has been employed to investigate this relationship. The Jordanian financial sector was the sample for the study during the years from 2012 to 2016. Our study findings, based on the results of correlation and multiple regression analysis showed that, market value of Jordanian financial companies is significantly positively related to financial instruments measured by fair values. The final result assured that; the new accounting measurements methods such as fair values are value relevant for Jordanian financial companiesduring all period of the study.

Research and Development (hereafter R&D) is an expensive activity where it requires an investment of a certain amount of capital with the belief that they would result in some increased benefits in the future periods. Traditionally, firms have supported R&D because the technological improvements made possible by innovation allow them to better productivity, succeeded in markets and meet the regulatory demands. In relation to this, the major aim of this study is to understand and acknowledge the value relevance of R&D in market valuation. The study only focuses on listed companies in Malaysia for the year 2000 until 2012. This study empirically investigated the association between R&D information in determining and explaining the market value. The study also to identify a relationship between R&D with all other assets. Furthermore, we examined the relationship between the R&D and the sign of earnings items. An equity valuation model based on the modified balance sheet identity was us...

Exploiting the passage of the Sarbanes-Oxley Act (SOX) as an exogenous regulatory shock, we investigate whether board independence substitutes for external audit quality. Based on over 14,000 observations across 18 years, our difference-indifference estimates show that firms forced to raise board independence are far less likely to employ a Big 4 auditor. In particular, board independence lowers the propensity to use a Big 4 auditor by approximately 38%. Firms with stronger board independence enjoy more effective governance and therefore do not need as much external audit quality as those with less effective governance do. Based on a natural experiment, our empirical strategy is far less vulnerable to endogeneity and is thus considerably more likely to show a causal effect, rather than merely an association.

We examine whether stock market fully value intangible assets, especially R&D and Advertising expenses in a specific sample of firms: US net firms along eight years (1996 until 2003). We find that the market value-to-book increases when the return on equity is positive, but also rises as return on equity becomes more negative. We argue that the negative pricing is due the collision of large expenditures in R&D and Advertising that are subject to conservatism accounting practice. Our results are robust when compared with a sample of recent contemporaneous IPOs of US net firms. We are able to conclude that: i) investors look beyond aggregate earnings, ii) that investors value certain components of losses (R&D and Advertising expenditures) positively, iii) capital markets seem to give strong value to firms undertaking such investments, iv) and that the presence of growing R&D and Advertising expenditures, implies that the persistence of losses may have become a weaker indicator of likelihood of liquidation, v) when faced financial distressed, the mergers an acquisitions is the main strategy to exercise the growth option and maximize the value of the firm and vi) consequently analyse loss firms homogenous can lead incorrect specifications.

This research examines the impact of the International Financial Reporting Standards (IFRS) on value relevance (VR). It is reported that most previous studies that address value relevance relationships with the IFRS have found conflicting results. For example, a reduction in VR in the US but it enhances in most reviewed studies (Gao et al., 2022). According to the findings, the impact of implementing IFRS varies from country to country. In the UK, the IFRS adoption has decreased the book value (BV) while in France and Germany, has increased. After adopting IFRS during the financial crisis, the findings also suggest that the VR has fallen in these nations. All financial institutions trading on the stock markets of these three nations serve as a sample for this study. Quantitative methods are used to collect data for this study, while SPSS is used for statistical analysis. The data was analysed prior to IFRS (2000–2004), for the global financial crisis of 2008, and later IFRS (2006–20...

This study assessed the moderating effect of audit quality on value relevance of accounting information of listed firms on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used with the population of 192 and sample size of 58 firms covering the period of 2012 to 2020. Thus, empirical model was estimated using Ordinary Least Square (OLS) regression technique. The results of this study revealed that there is a significant positive effect between book value per Share and market Share Price of listed firms in Nigeria. The study recommends that all listed companies in Nigeria should prepare and disclose additional information on the financial accounting indicators used for investment decisions alongside with the mandatory financial statements. This is expected to provide clearer information about the dividend per share and financial performances of companies to equity share investors.

The study is aims to examine whether the adoption of accounting measurement of AIS/IFRS standards has resulted in more relevant financial information for decision making or not. This study examines the use of fair value measurement on value of financial instruments to capture if there is any effect on the market value of financial companies. Ohlson (1995) framework has been employed to investigate this relationship. The Jordanian financial sector was the sample for the study during the years from 2012 to 2016. Our study findings, based on the results of correlation and multiple regression analysis showed that, market value of Jordanian financial companies is significantly positively related to financial instruments measured by fair values. The final result assured that; the new accounting measurements methods such as fair values are value relevant for Jordanian financial companiesduring all period of the study.

The study is aims to examine whether the adoption of accounting measurement of AIS/IFRS standards has resulted in more relevant financial information for decision making or not. This study examines the use of fair value measurement on value of financial instruments to capture if there is any effect on the market value of financial companies. Ohlson (1995) framework has been employed to investigate this relationship. The Jordanian financial sector was the sample for the study during the years from 2012 to 2016. Our study findings, based on the results of correlation and multiple regression analysis showed that, market value of Jordanian financial companies is significantly positively related to financial instruments measured by fair values. The final result assured that; the new accounting measurements methods such as fair values are value relevant for Jordanian financial companiesduring all period of the study.

Research aims: This study examines the value relevance of accounting information consisting of earnings information, book values, and operating cash flows after Indonesia uses the full convergence of IFRS Financial Accounting Standards. Design/Methodology/Approach: The value relevance test was conducted using Ohlson's (1995) pricing model and Easton and Harris' (1991) return model. The valuation model test employed two regression equations, i.e., testing the relationship between earnings information and book value with stock prices and then testing the relationship between earnings information, book value, and cash flow with stock prices. In addition, the return model testing was performed to examine the relationship between earnings information and earnings changes with stock returns and the relationship between cash flow and cash flow changes with stock returns. The research sample was 105 manufacturing companies, with a research period from 2016 to 2019. Research findings: The test results with the pricing model approach revealed that earnings and cash flow had value relevance, while book value had no value relevance. This study's results suggest that earnings and cash flow information are helpful for investors in making investment decisions. Moreover, the test results with the return model approach also uncovered those earnings, changes in earnings, and changes in operating cash flows had value relevance while operating cash flows, on the other hand, had no value relevance. Theoretical contribution/Originality: The utilized two models complement each other, and this study provides empirical evidence for standard setters who can renew beliefs about how much accounting information is reflected in stock prices in Indonesia, especially the manufacturing sector, after the full convergence of IFRS Financial Accounting Standards is applied.

This paper evaluates the impact of adopting the management approach for segment reporting. We review studies of the effect of the application of SFAS 131 and IFRS 8 on the number of reported operating segments and items of disclosure, segment reporting gaps and reconciliations, entitywide geographic disclosures, and competitive harm and decision usefulness of segment information. We report on the advantages and disadvantages of the management approach and explore whether the concerns of critics of adopting the management approach in IFRS 8 have been realized. We also identify opportunities for important and policy-relevant research in the area of segment reporting based on IFRS 8.

This paper documents evidence that the Nigerian market rewards low earnings per share volatility with higher share prices. Earnings smoothing was measured by the standard deviation of earnings stream over a five year rolling period in addition to the two traditional measures that relate variability of earnings and changes in accruals to cash flows.Multiple regression was employed on a sample of 48 firms from 2013-2015. The study found that Nigerian market rewards stable earnings over time, but are somewhat indifferent to the smoothness of past earnings in relation to cash flows. The practical implication of these findings is that managers of firms in Nigeria will take even "desperate" measures to report stable earnings to boost their firm valuations. The paper recommends that investors should not just reward stable earnings streams; they should be concerned with stable earnings and cash flows stability simultaneously. Failure to do so might result in earnings fraud that erodes their investments.

This research examines the impact of the International Financial Reporting Standards (IFRS) on value relevance (VR). It is reported that most previous studies that address value relevance relationships with the IFRS have found conflicting results. For example, a reduction in VR in the US but it enhances in most reviewed studies (Gao et al., 2022). According to the findings, the impact of implementing IFRS varies from country to country. In the UK, the IFRS adoption has decreased the book value (BV) while in France and Germany, has increased. After adopting IFRS during the financial crisis, the findings also suggest that the VR has fallen in these nations. All financial institutions trading on the stock markets of these three nations serve as a sample for this study. Quantitative methods are used to collect data for this study, while SPSS is used for statistical analysis. The data was analysed prior to IFRS (2000–2004), for the global financial crisis of 2008, and later IFRS (2006–20...

This study assessed the moderating effect of audit quality on value relevance of accounting information of listed firms on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used with the population of 192 and sample size of 58 firms covering the period of 2012 to 2020. Thus, empirical model was estimated using Ordinary Least Square (OLS) regression technique. The results of this study revealed that there is a significant positive effect between book value per Share and market Share Price of listed firms in Nigeria. The study recommends that all listed companies in Nigeria should prepare and disclose additional information on the financial accounting indicators used for investment decisions alongside with the mandatory financial statements. This is expected to provide clearer information about the dividend per share and financial performances of companies to equity share investors.

Despite a large number of regulations and standards governing the financial reporting process, earnings management is increasing at an alarming rate in organizations today. The aim of this study is to investigate the impact of board and audit committee characteristics on accruals and real earnings management practices in Pakistan. Design/Methodology/Approach: Earnings management as dependent variable is measured by using two model: Kothari et al., (2005) and Roy chowdhury (2006). Whereas, board size, board independence, CEO duality, audit committee size, audit committee independence and audit committee activity are the independent variables. This study was based on data collected from 235 non-financial firms listed on Pakistan Stock Exchange (PSX) from 2008 to 2015. The relationship was investigated by means of panel data estimation. Findings: The result revealed CEO duality is positively related with accruals earnings management. Whereas, board independence is negatively related and CEO duality, board activity and audit committee independence are positively related with real earnings management. Implications/Originality/Value: The findings of the study are important for investors, regulators, and legislators in their attempt to constrain the incidence of earnings management and improve financial reporting quality.

This study examined the level of disclosure among Malaysian listed firms with respect to segment reporting under new accounting standard MFRS 8 (IFRS 8). It also aimed to determine how these firms defined the chief operating decision maker (CODM) during the disclosure of segment information. Study results showed that the way firms disclosed segment information tended to vary between companies, since disclosure was dependent on company management purposes and business activities. The results also showed that only a few Malaysian firms supply information about their CODM. In summary, this study provides a fairly up-to-date description of the status of segment disclosure postimplementation of MFRS 8.

This paper investigates the recent adoption of IFRS 8 by Spanish listed firms and gives a detailed image of segment disclosures under the new standard. Results show that operating segments are mainly based on lines of business, but the geographical segments are associated with a higher disaggregation. Under IFRS 8 a small portion of the sample still remain as single segment firms and a significant part fails to meet the mandatory Entity-Wide information and not disclose separately most of items indicated on IFRS 8. Size and profitability are, respectively, factors positively and negatively related to higher disclosure practices. Resumen Este trabajo investiga la reciente adopción de la NIIF8 por empresas españolas cotizadas. Los resultados muestran que los segmentos de explotación se basan principalmente en líneas de negocio, pero los segmentos geográficos se asocian con una mayor desagregación. Bajo NIIF8 una pequeña porción de la muestra sigue afirmando que solo tienen uno segmento, una parte significativa no cumple con la obligación de información relativa a la entidad en su conjunto y no revela en separado la mayoría d os ítems indicados en NIIF8. El tamaño y rentabilidad son, respectivamente, factores relacionado de forma positiva y negativa con mayores prácticas de divulgación.

Objective: The Audit Committee, as one of the corporate governance oversight committees in listed companies, has become a very important factor in the financial reporting process to increase the credibility of financial reports. Therefore, the audit committee needs to hold meetings to perform its duties, and so far Limited research has been done to examine the factors affecting the number of meetings of the audit committee. This study sought to investigate factors influencing the number of meetings of the audit committees held in companies enlisted in the Tehran Stock Exchange (TSE). This study specifically aims to examine whether the number of meetings of the audit committees is affected by factors such as ownership concentration, board size, board independence, audit committee size, audit committee independence, and audit committee financial experience. Methods: Accordingly, the financial statements of 150 companies enlisted in the TSE during the eight-year period from 2013 to 2020 were analyzed. To test the research hypotheses, Tobit regression model with combined data method and random effects method was used. Results: Testing the research hypotheses showed that the concentration of ownership, size of the board, independence of the board, size of the audit committee, and independence of the audit committee have a significant positive effect on the number of meetings of the audit committees. The results also showed that the financial expertise of the audit committees has a significant negative effect on the number of their meetings. Conclusion: The results indicated with increasing ownership concentration want more supervision over managers' performance and the number of audit committee meetings increases. In addition, any increase in the size of the board, the independence of the board, the size of the audit committee, and the independence of the audit committee as criteria for corporate governance increases the number of meetings of the audit committee. This is while any increase in financial expertise of the members of the audit committee, ends in a decrease in the need to convene the number of meetings of the audit committee.

Accounting information plays a crucial role on the security prices in an efficient capital market with sophisticated structure. This study assessed the moderating effect of audit quality proxied by audit experience on value relevance of book value per share of listed firms on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used with the population of 192 and sample size of 58 firms covering the period of 2008 to 2019. Panel random effect model was used to test the hypothesis with the aid of STATA-13. The results of this study revealed that there is a significant positive effect between book value per share and market share price of listed firms in Nigeria. The researcher recommends that all listed companies in Nigeria should prepare and disclose additional information on the financial accounting indicators used for investment decisions alongside with the mandatory financial statements. This is expected to provide clearer information about the dividend per share and financial performances of companies to equity share investors.

The primary purpose of this short article is to present a list of publications by Scholars Book Co. that Prof. Robert Sterling established. The books and monographs are of two types. While some were being published for the first time and were original, others have been previously published. The contribution of previously published books in accounting is wellknown. With the closure of Scholars Book Co., it is imperative that the 32 books that the publishing house printed should be preserved for accounting students and researchers. 1. INTRODUCTION This short article is aimed at sharing and documenting works that were deemed classic by or considered necessary from the perspective of Prof. Robert Sterling, an accounting scholar and theorist. He established Scholars Book Co. for publishing new books and reprints of previously published books. Some of the editions of books he selected for reprint are still available, and are being circulated among readers and interested individuals [1]. Considering their intellectual value, Prof. Sterling decided to republish them. Since the publishing house no longer exists and its founder is deceased, accounting researchers, historians, educators, and students should be aware

This paper explores the heterogeneity of board of directors and shareholders involvement in the audit committee in addressing the question of whether the board of directors and audit committee shareholders are effective in suppressing earnings management after the implementation of 2011 revised Code of Corporate Governance in Nigeria. The paper utilized data generated after the implementation of the new Code. It examines explicitly board effectiveness and audit committee shareholder chairman on earnings management in Nigerian financial institutions. The study utilizes a dynamic panel data model of the generalized method of moment (GMM) in analyzing the data. The empirical results suggest that board independence and shareholders as audit committee chair play an essential and a significant negative relationship in curving earnings management. Specifically, the results show that shareholders played effective roles in chairing the audit committee and suppressing the magnitude of earning...

The study explored the relationship between the operating segments (IFRS 8) and profitability of universal banks in the Philippines. Empirical data were collected from the published annual report or audited financial statements of the twelve universal banks from reporting period 2016 to 2019. The study utilized panel data regression analysis using univariate analysis of variance technique to measure the relationship between the reportable segments to return on asset (ROA) and earnings per share (EPS) of universal banks. The findings of the study revealed that only reportable segment revenue is significantly related to ROA. None of the reportable segment revenue, profit or loss, assets, and external revenue as result of overall test is significantly related to EPS. The results of the study showed that all operating segments, with average of four, are grouped according to the nature of products or services offered. The most disclosed segmental information are information about interest revenue & interest expense, depreciation and amortization, material non-cash items such as credit and impairment losses, income tax expense, measures of revenue, profit or loss, assets and liabilities, revenue from external customer and revenue from transactions with other operating segment of the same entity. Implications to business decisions were made.

This paper describes empirical evidence investigated the effect of ownership concentration and firm's size on the accounting information value relevance. Ownership concentration (OC) is measured by Herfindahl index; the firm's size is measured by a log of total assets, whereas value relevance is measured by the Ohlson' Price Model. Using a sample of 119 manufacturing firms listed in Indonesian Stock Exchange (IDX) for the year of 2011-2015, this research finds that ownership concentration positively affects both the value relevance of earnings per share and book value per share. Moreover, the firm's size negatively affects the value relevance of earnings per share and book value per share. This study contributes to the existing literature about value relevance of ownership concentration and value relevance of firm's size, especially in the post-IFRS adoption period.

Research aim: This paper critically evaluates the qualitative characteristics of accounting information that can be drawn from the Financial Accounting Standard Board (FASB)/International Accounting Standard Board (IASB) Conceptual Framework and Value-Relevance studies that are motivated by users of accounting information. Design/Methodology/Approach: This study reviews the value-relevance literature and Statement of Financial Accounting Concepts (SFAC) No. 8, which was issued by FASB in September 2010 in order to make a distinction between them. Research findings: The value-relevance literature, which reported the associations between accounting numbers and common equity valuations, has limited implications or inferences for accounting information users. Although some scholars believe that the value relevance model indicates that accounting information is relevant and reliable (faithfully represented), it is, however, difficult to attribute the cause of the lack of value relevance to the relevance or the reliability aspects as the value relevance model does not distinguish between relevance and reliability. Theoretical contribution/Originality: This study provides some recommendations and a framework for future academic research related to the qualitative characteristics of accounting information (especially earnings) and value-relevance models. Practitioner/Policy implications: According to the conceptual framework defined by the FASB and IASB, relevance and faithful representation, as fundamental qualitative characteristics, are required for the provision of the usefulness of accounting information, and should be taken into consideration by scholars and standard setters in the accounting area. Research limitation/Implication: This paper does not have a direct impact on practice. But, if the standard setters and researchers apply the concepts have been defined by this study in their accounting standards and their research,