In search for good news: The relationship between accounting information, bounded rationality and hard-to-value stocks

The study aimed to measure the relationship between the investment decision-making in the industrial companies listed in the Saudi Stock Market with the (IVs) characteristics of the accounting information systems (appropriateness and reliability, comparability and understanding), and renovation and maintenance of the hardware and software. The problem in the Kingdom of Saudi Arabia is that the government depends on oil revenues more than on attracting investments, therefore, the importance of this study is constituted by the provision of critical recommendations to policy makers in the Kingdom of Saudi Arabia in order to overcome this issue and improve the investments. In order to achieve the objectives of this study, questionnaires were administered to 194 people representing the study population; a multiple regression (standard regression) was also used to test the study hypotheses. In general, all variables were positively significantly related with the investment decision-making.The findings of this study also showed that the independent variables explained more than 65% of the variance in investment decision-making. The Saudi government and policy makers should issue new regulations to increase the interest in accounting information systems in order to attract the investment. In relation to the practical and theoretical contribution, this study used new variables in the new model, such as renovation and maintenance of the hardware and software. Furthermore, practical contribution will help policy makers and the Saudi government to advance in this area and implement new policies for investors in order to protect the economy and the society stability due to the war in Yemen and Syria.

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The Influence of the Quality of an Audit to Relationship Other Comprehensive Income (OCI) And Relevance of Value Accounting Information, And Asymmetry of Information (Study on Companies in Indonesia)

GATR Global Journal of Business Social Sciences Review - GATR Global Journal of Business and Social Science Review (GJBSSR) Vol.7(1) Jan-Mar 2019 ◽

10.35609/gjbssr.2017.5.1(7) ◽

2017 ◽

Vol 5 (1) ◽

pp. 46-52

Author(s):

Yurniwati Yurniwati ◽

Amsal Djunid ◽

Nini Sumarni ◽

Ike Pranita

Keyword(s):

Information Asymmetry ◽

Value Relevance ◽

Linear Regression Analysis ◽

Accounting Information ◽

Asymmetry Of Information ◽

Comprehensive Income ◽

Other Comprehensive Income ◽

Relationship Of ◽

The Relationship

Objective - This study examines the influence of the quality of an audit to the relationship of Other Comprehensive Income (OCI) and Relevanceof Value Accounting Information, and Asymmetry of Information in Indonesia's companies. Methodology/Technique - This research uses secondary data obtained from the company's annual report in 2012 - 2014. A purposive sampling method is used to collect data and the analysis of the hypothesis was conducted usingmultiple linear regression analysis. Findings - The research has shown that Quality of Audit has a significant influence to the relationship of the OCI disclosure and Relevance of Value Accounting Information has a value of sig. 0.000, F calculate is 26.816 larger than F table 2.396 and adjusted R square 0.241. Novelty - The study looks at the disclosures of OCI component's role in the investors decision making and it increases value relevance of accounting information and reducing information asymmetry. Type of Paper - Empirical Keywords: Other Comprehensive Income (OCI); Relevance of Value Accounting Information; Information Asymmetry; Quality of Audit. JEL Classification: D82, M41, M42.

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Study on the Influence of CFO Characteristics on Accounting Conservatism of Listed Companies

E3S Web of Conferences ◽

10.1051/e3sconf/202127503005 ◽

2021 ◽

Vol 275 ◽

pp. 03005

Author(s):

Miao Yu

Keyword(s):

Economic Development ◽

Social Economy ◽

Accounting Information ◽

Personal Characteristics ◽

Listed Companies ◽

Accounting Conservatism ◽

Quality Of Accounting Information ◽

The Difference ◽

The Relationship

As the information reflection of social economy, the quality of accounting information is closely related to economic development and market operation system. And accounting conservatism is one of the important standards to measure of quality of accounting information. As the maker and executor of the financial strategy of the listed company, the CFO’s different personal characteristics will affect its choice of different accounting policies, thus affecting the accounting conservatism of the enterprise. Therefore, this paper selects CFOs of A-share listed companies in Shanghai and Shenzhen from 2016 to 2018 as research objects, respectively discusses the influence of CFO’s natural attributes and social attributes on accounting conservatism, and analyzes the moderating effect of property rights and CFO’s power on the relationship between them. The results show that the CFO’s age, tenure, education, professional skills, salary and number of part-time jobs are negatively correlated with accounting conservatism. The female CFO, shareholding and concurrent director are significantly positively correlated with accounting conservatism. The difference of property right nature and CFO power moderates the relationship between CFO characteristics and accounting conservatism to some extent. On this basis, this paper puts forward corresponding suggestions on how to improve accounting conservatism and promote economic development.

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Study of the effect of institutional ownership on accounting quality and cost of capital

Propósitos y Representaciones ◽

10.20511/pyr2021.v9nspe2.1053 ◽

2021 ◽

Vol 9 (SPE2) ◽

Author(s):

Reza Fallah

Keyword(s):

Significant Relationship ◽

Cost Of Capital ◽

Accounting Information ◽

Institutional Ownership ◽

Test Results ◽

Accounting Quality ◽

Quality Of Accounting Information ◽

The Relationship

The test results of the research hypotheses showed that there is a significant relationship between institutional ownership and quality of accounting information and cost of capital debt, but institutional ownership has not been able to moderate the relationship between quality of accounting information and cost of capital debt.

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ACCOUNTING INFORMATION QUALITY AND CORPORATE PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA

International Journal of Advanced Academic Research ◽

10.46654/ij.24889849.s76162 ◽

2021 ◽

pp. 25-44

Author(s):

T.C. Macgregor ◽

J.N Nwaiwu

Keyword(s):

Information Quality ◽

Oil And Gas ◽

Corporate Performance ◽

Accounting Information ◽

Return On Equity ◽

Oil Companies ◽

Qualitative And Quantitative ◽

Accounting Information Quality ◽

Oil And Gas Companies ◽

The Relationship

But knowing the unknown and therefore estimating the relationship between accounting information quality and corporate performance are still a difficult task. The aim of this empirical study is to explore the relationship between the accounting information quality and corporate performance of oil and gas companies in Nigeria. Data on different types of accounting information quality and return on equity were primarily collected from the respondents and analyzed using ordinary least square regression analysis the data with the aid of statistical package for social sciences version 25.0. The empirical result indicates that accounting information quality significantly relate to return n equity; explaining about 85.1% of the total variation in return and equity. Relevance, faithful representation was each found to significantly relate to return on equity. The study empirically conclude that accounting information quality has the potency to make significant contribution to quoted financial performance of oil and gas companies and recommends that having investigated theoretical and empirical issues, also considering the findings and conclusion, the following recommendations were made: There should be need for preparers of accounting information to improve on the accounting information quality devoid of window dressing and creative accounting, regular disclosure, transparency and accountability of such accounting information is required since investors are sensitive to qualitative and quantitative accounting information in assessing the performance of quoted oil companies in and outside Nigeria. Also in line with qualitative and quantitative of accounting information quality, financial statements of quoted oil companies in Nigeria should be prepared and presented according to laid down regulations and ethical standards duly observed to ensure accounting information presented for among users, most and public consumption do represent the oil companies’ economic reality during reported periods.

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Effects Of Key Financial Indicators On Earnings Management In Korea’s Ready Mixed Concrete Industry

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v33i2.9905 ◽

2017 ◽

Vol 33 (2) ◽

pp. 329-342 ◽

Cited By ~ 1

Author(s):

Geun Bae Jang ◽

Weon-Jae Kim

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Accounting Information ◽

Cash Flows ◽

Financial Indicators ◽

Ability Level ◽

Operating Income ◽

The Relationship ◽

Ready Mixed Concrete ◽

Mixed Concrete

Earnings management is the practice of deriving certain benefits by intervening in external financial reporting or misleading certain stakeholders through adjustments to accruals without cash flow involvement or with affecting cash flows through real activities. Using the models of Kothari et al. (2005) and Cohen et al. (2008) for accrual-based earnings management (AEM) and real activities earnings management (REM), respectively, we examined whether relationships exist between key financial indicators, such as cash flows from operations, operating income, and debt dependency level, and AEM and REM in the ready mixed concrete (RMC) industry in Korea. This study is the first to investigate earnings management in Korea’s RMC sector. Results showed that operating income and cash flows from operations are significantly negatively related to AEM and REM, consistent with the findings of previous research. By contrast, debt dependency exhibits no significant relationship with AEM and REM, contradicting the findings of most previous studies. As a moderating variable, operating income affects the relationship between cash flows from operations and earnings management with only REM. On these bases, we can infer that earnings management in the Korean RMC industry responds differently to key financial indicators with regards to AEM and REM practice. Overall, companies in the industry implement aggressive earnings management depending on operating income and cash generation ability level rather than debt dependency level. These findings provide important insights for people who are interested in accounting information on the RMC industry in Korea.

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