Gender diversity, financial expertise and its effects on accounting quality

Purpose The purpose of this paper is to analyze whether gender diversity on board and financial expertise on audit committee affect accounting conservatism in banking sector. Additionally, the authors focus on the effects of board characteristics on bank earnings quality and examine their effects on earnings persistence. Design/methodology/approach The authors use a large sample of 159 banks from nine different countries from the period 2004-2010. The authors study whether the differences in the timeliness of earnings to bad news and earnings quality across governance structures of banks are driven by differences across investor protection and bank regulation levels in banks. Findings The findings confirm the monitoring role of both female and financial experts, noting a positive effect of them on accounting conservatism and earnings quality in banks. According to the institutional characteristics, the results suggest the complementary role of banking regulation and investor protection levels in these effects, noting that in contexts of higher regulatory and greater investor protection environments, gender diversity and financial expertise on boards have more influence on the conservatism and earnings quality of banks. Originality/value The authors contribute to both the accounting quality literature and the corporate governance literature by identifying board characteristics that are associated with higher conservatism and quality of earnings in banks around the world. In addition, this study also contributes to the ethics literature by highlighting the benefits of gender diversity and financial expertise in upholding the integrity of financial reporting. Moreover, this paper adds to prior literature about board of directors and accounting quality by identifying additional complementary factors – bank regulation and investor protection – and by focusing on a specific industry, the banking industry.

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The impact of the global economic crisis of 2008 on earnings quality in Mexico

Journal of Accounting in Emerging Economies ◽

10.1108/jaee-08-2016-0071 ◽

2019 ◽

Vol 9 (3) ◽

pp. 407-421

Author(s):

Jose Miranda-Lopez ◽

Ivan Valdovinos-Hernandez

Keyword(s):

Earnings Management ◽

Economic Crisis ◽

Earnings Quality ◽

Accounting Standards ◽

Previous Literature ◽

Income Smoothing ◽

Accounting Quality ◽

Content Type ◽

Global Economic Crisis

Purpose The purpose of this paper is to examine the earnings quality of companies listed on Mexico’s primary stock market, the Bolsa Mexicana de Valores (Bolsa) before and during the global economic crisis of 2008. Previous research has shown that these economic events can have potentially conflicting effects on the quality of earnings of listed companies in capital markets around the world. Design/methodology/approach This paper operationalizes earnings quality based on earnings management. Therefore, four constructs to proxy for earnings quality are developed from previous literature, and multiple regression analysis along with tests of differences across two time periods, 2005–2007 and 2008–2010, are used to determine if there is a significant change in the accounting quality of companies listed on the Bolsa before and after the start of the global economic crisis. Findings Results indicate a statistically significant decrease of earnings quality on three out of the four constructs used to proxy for earnings management. There is only one construct in this category that shows a significant increase of earnings quality. Research limitations/implications There are different number of constructs and methodologies used to test for earnings quality. This study draws on four different constructs on two dimensions of earnings quality from previous literature, but other methodologies and constructs can potentially be used as well, such as discretionary accruals. Furthermore, there is a chance that there can be confounding factors affecting the results of this study besides the effects of the global economic crisis. Finally, the sample used in this study comprises non-financial public companies listed on the Bolsa, which can affect the generalization of the results to countries other than Mexico. Practical implications The results of this study can be of interest to Mexican and foreign investors, standard setters and regulators of the Bolsa, as the results show a strong incentive to manage companies’ earnings using income smoothing in an emerging economy during an economic crisis even after converging to a higher-quality set of accounting standards. Results can also be of interests to investors and regulators in other Latin-American countries with economies similar to that of Mexico. Originality/value This is the first study to test the quality of earnings of Mexican companies before and during the global economic crisis of 2008. Thus, this study contributes to the accounting quality literature by offering evidence showing a significant increase of income smoothing during the global economic crisis for companies listed in a developing economy with a relevant history of economic crises, even when these companies were using recently converged, higher-quality accounting standards.

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Multiple directorships and earnings quality: Does investor protection matter?

Journal of Asia Business Studies ◽

10.1108/jabs-08-2019-0254 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Saleh Abd Alhadi ◽

Rosmila Senik ◽

Jalila Johari ◽

Ridzwana Mohd Said ◽

Hairul Suhaimi Nahar

Keyword(s):

Earnings Quality ◽

Investor Protection ◽

Generalized Method Of Moments ◽

Dynamic Panel Data ◽

Corporate Boards ◽

Content Type ◽

Multiple Directorships ◽

External Governance ◽

Moments Estimators

Purpose This study aims to investigate whether higher earnings quality is related to the existence of multiple directorships among corporate boards and whether this relationship varies with the quality of investor protection. Design/methodology/approach This paper used a dynamic panel data modelling on the sample of 2,090 firm-year observations over the period from 2007 to 2016 in Malaysia. The generalized method of moments estimators were used to deal with endogeneity and other econometric problems. Findings This study finds that the accumulation of several outside directorships is negatively associated with the firm's earnings quality, as measured by the magnitude of discretionary accruals. More importantly, the findings provide evidence that multiple directors are more efficient in improving earnings quality in healthy investor protection environment. Practical implications The appointment of directors should be based on market-based and not on a relationship (i.e. financial and industry professionals). Originality/value The results highlight the importance of interaction between internal and external governance mechanisms to improve the firm's financial performance, investment and market efficiency. High-quality investor protection and law enforcement are significant for enhancing the monitoring role of multiple directorships in improving earnings quality.

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The effect of accounting conservatism and earn-ings management on earnings quality

International Journal of Accounting and Economics Studies ◽

10.14419/ijaes.v5i2.8454 ◽

2017 ◽

Vol 5 (2) ◽

pp. 157

Author(s):

Mohammad Delkhosh ◽

Mohammad Sadeghi

Keyword(s):

Multivariate Regression ◽

Stock Exchange ◽

Earnings Quality ◽

Multivariate Regression Analysis ◽

Accounting Conservatism ◽

Net Income ◽

Statistical Population ◽

Earning Quality

The net income has been always one of the important issues that had always been a favorite among financial statement's user, and the quality and management of it have always been the focus of attention of investors and creditors. The purpose of this study is to investigate the role of conservatism and earning management in earning quality. For this purpose, the Givoly and Hayn (2000) index were used as conservative measurement criteria and the modified Jones model (1995) was used as a measure of earning's management measurement, and the Dechow and Dichev (2002) index were used as a measure of the quality of earning (earnings sustainability) of the company. The statistical population of this study is 123 companies that listed on Tehran Stock Exchange between 2009 and 2014. For testing the research hypothesis a multivariate regression analysis was used. The results of the research indicate a significant negative (invert) relation between accounting conservatism and earning's management on the quality of earnings.

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PERAN KUALITAS LABA DALAM MEMEDIASI PENGARUH KONSERVATISME AKUNTANSI TERHADAP NILAI PERUSAHAAN

Jurnal Akuntansi Bisnis ◽

10.30813/jab.v14i1.2215 ◽

2021 ◽

Vol 14 (1) ◽

Author(s):

Kezia Octaviani ◽

Sugi Suhartono

Keyword(s):

Firm Value ◽

Earnings Quality ◽

Linear Regression Analysis ◽

Accounting Conservatism ◽

Share Price ◽

Coefficient Of Determination ◽

Manufacturing Companies ◽

Purposive Sampling

Abstract: The investor's valuation of the company's performance often only sees the stock price. High share price reflects the high value of the company as well. However, low share prices do not necessarily indicate the company's performance is poor. This research aims to analyse and know the role of quality of profit in the mediation of the influence of conservatism accounting on the firm value. Sampling techniques are performed by purposive sampling methods. Sample of 60 manufacturing companies that have been listed on the Indonesia Stock Exchange for the period 2016-2018.. The data analysis techniques undertaken are coefficient of similarity, descriptive statistics, classical assumption test, and linear regression analysis, including F-Test, T-Test, and coefficient of determination test. And to make the role of the quality of profit as a variable intervening, it is done using the analysis of pathways and Sobel tests to test indirect influences. The results showed that the quality of profit has a positive and significant effect on the firm value, accounting conservatism has a positive and significant effect on the quality of profit, while the accounting conservatism is not proven directly affect the value of the company. Based on the analysis of the track and The Sobel test shows that earnings quality can mediate the effect of accounting conservatism on firm value.Keywords: Accounting Conservatism, Earnings Quality, Firm Value Abstrak: Penilaian investor terhadap kinerja perusahaan seringkali hanya melihat dari harga saham. Harga saham yang tinggi mencerminkan nilai perusahaan yang tinggi. Namun, harga saham yang rendah tidak selalu mengindikasikan kinerja perusahaan tersebut kurang baik. Tujuan dari penelitian ini adalah untuk menganalisis peran kualitas laba dalam mediasi pengaruh konservatisme akuntansi terhadap nilai perusahaan. Pengambilan sampel menggunakan teknik non probalility sampling dengan metode purposive sampling. Sampel sebanyak 60 perusahaan manufaktur yang telah didaftarkan di BEI (Bursa Efek Indonesia) periode tahun 2016-2018. Teknik analisis data antara lain uji kesamaan koefisien, statistika deskriptif, uji asumsi klasik, dan analisis regresi linear yang meliputi uji F, uji t, dan uji koefisien determinasi. Pengujian peran kualitas laba sebagai variable intervening, dilakukan dengan analisis jalur dan uji Sobel untuk menguji pengaruh tidak langsung. Hasil penelitian membuktikan bahwa kualitas laba berpengaruh positif dan signifikan terhadap nilai perusahaan, konservatisme akuntansi berpengaruh positif dan signifikan terhadap kualitas laba, sedangkan konservatisme akuntansi tidak terbukti berpengaruh secara langsung terhadap nilai perusahaan. Berdasarkan hasil path analysis dan Uji Sobel menunjukkan bahwa kualitas laba dapat memediasi pengaruh konservatisme akuntansi terhadap nilai perusahaan.Kata kunci: Konservatisme Akuntansi, Kualitas Laba, Nilai Perusahaan.

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Great minds think alike: does leader-follower similarity in construal level of the work enhance leader-member exchange quality?

Leadership & Organization Development Journal ◽

10.1108/lodj-04-2021-0169 ◽

2022 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Sevgi Emirza ◽

Alev Katrinli

Keyword(s):

Mental Representation ◽

Current Knowledge ◽

Interpersonal Relationship ◽

Survey Study ◽

Construal Level ◽

Leader Member Exchange ◽

Content Type ◽

Member Exchange

PurposeThe purpose of this study is to investigate whether leader-follower similarity in construal level of the work, which indicates the degree of abstraction applied to mental representation of the work, influences the quality of interpersonal relationship at work.Design/methodology/approachFirst, an interview study was conducted to adapt the work-based construal-level (WBCL) scale. Then, a survey study was conducted for hypothesis testing. Data collected from 245 matched supervisor-subordinate dyads were analyzed using multi-level modeling.FindingsResults revealed that dyadic similarity in work-domain construal level is positively related to leader-member exchange (LMX) quality. As a leader and a follower become similar to each other in terms of mental representation (i.e. construal level) of work, they experience higher relationship quality.Originality/valueThis study enhances the current knowledge of the role of cognition and cognitive similarity in leadership processes.

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The role of transformative healthcare technology on quality of life during the COVID-19 pandemic

Journal of Enabling Technologies ◽

10.1108/jet-12-2020-0054 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mohammad Asif Salam ◽

Saleh Bajaba

Keyword(s):

Quality Of Life ◽

Health Care ◽

Saudi Arabia ◽

Service Delivery ◽

Health Care System ◽

Service System ◽

Content Type ◽

Care System

Purpose The purpose of this study is to investigate the role of the COVID-19 health-care system quality (HSQ) and its impact on the individual (satisfaction) and social (quality of life [QOL]) outcomes in the context of a transformative health-care delivery system using service-dominant logic (SDL). Design/methodology/approach A sample consisting of 1,008 individuals who have experienced the COVID-19 health-care system was drawn from four different regions of Saudi Arabia using the simple random sampling technique. The survey was conducted using an online survey and 1,008 respondents answered, based on their experience and knowledge of the COVID-19 health-care system. Partial least squares structural equation modeling was applied to test the proposed research model. Findings The study findings suggest that service system satisfaction (SAT) significantly mediates the role of the HSQ in delivering and enhancing the QOL. HSQ also has a significant role to play on the SAT as well as the QOL. These findings contribute to the body of knowledge on SDL in the context of HSQ in understanding the significant role of technologies can play in enhancing service satisfaction and better QOL during a crisis such as COVID-19. This study also improves the understanding of the importance of customer-centricity, real-time visibility through tracking and tracing of service flow, agile decision-making, fewer but better-defined service objectives, and finally shaping mindsets and behaviors of all the relevant parties involved in the HSQ service delivery process. Research limitations/implications One of the major limitations of this study is that, although COVID-19 is an ongoing global pandemic, cross-sectional data were collected in only one country. The findings may not be generalizable across subsequent waves of the pandemic. The best practices of HSQ could be studied around the globe and the results used to support continuous improvement. Originality/value This study advances the understanding of the SDL in the context of a transformative health-care system for a transitional economy by focusing on individual and social well-being during an unexpected crisis such as the COVID-19 pandemic. This study also contributes toward the understanding of the roles of enabling technologies to improve the service delivery system which results in an improved SAT, as well as better QOL for the society at large. Based on SDL this research validates the HSQ model, relevant measures and its overall impact on SAT and QOL in the context of a transformative health-care service system in Saudi Arabia.

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Corporate Social Responsibility, Audit Committee Expertise, and Financial Reporting: Empirical Evidence from Korea

Sustainability ◽

10.3390/su131910517 ◽

2021 ◽

Vol 13 (19) ◽

pp. 10517

Author(s):

Haeyoung Ryu ◽

Soo-Joon Chae ◽

Bomi Song

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Audit Committee ◽

Earnings Quality ◽

Audit Committees ◽

Accounting Expertise ◽

Corporate Social

Corporate social responsibility (CSR) involves multiple activities and is influenced by the cultural and legal environment of the country in which a firm is located. This study examines the role of audit committees’ (AC) financial expertise in the relationship between CSR and the earnings quality of Korean firms with high levels of CSR. Using a multivariate analysis, it investigates whether the ACs that include members with accounting expertise, finance expertise, or supervisory expertise individually affect a firm’s decision making. It also examines how ACs with diverse expertise contribute toward improving the financial reporting quality of firms with high levels of CSR. The results demonstrate that when there is a certified accountant in the AC of a firm that practices CSR based on ethical motivation, the earnings management through discretionary accruals is more strictly controlled. This is more effective when the AC comprises members with accounting and non-accounting expertise. This finding implies that the AC plays a positive role in improving the accounting information quality of firms with CSR excellence. Moreover, while the role of accounting experts in the AC is important for maintaining high earnings quality, combining other types of expertise creates synergy.

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Understanding coaching efficacy in education through activity systems: privileging the nuances of provision

International Journal of Mentoring and Coaching in Education ◽

10.1108/ijmce-02-2021-0036 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Rachel M. Lofthouse ◽

Anthea Rose ◽

Ruth Whiteside

Keyword(s):

Activity Systems ◽

Content Type ◽

Coaching Efficacy ◽

Range Of Functions ◽

Cultural Historical Activity ◽

The Individual ◽

Specific Challenge

PurposeThe research demonstrates the role of activity systems based in Cultural Historical Activity Theory as a means of analysing characteristics and efficacy of specific provisions of coaching in education.Design/methodology/approachThree examples of coaching in education were selected, involving 51 schools in England. The three examples were re-analysed using activity systems. This drew on existing evaluation evidence, gathered through interviews, questionnaires, focus groups and recordings of coaching.FindingsIn each example, the object of the coaching was to address a specific challenge to secure the desired quality of education. Using activity systems it is possible to demonstrate that coaching has a range of functions (both intended and consequential). The individual examples illustrate the potential of coaching to support change in complex and diverse education settings.Research limitations/implicationsThe use of existing data from evaluations means that direct comparisons between examples are not made. While data were collected throughout the duration of each coaching programme no follow-up data was available.Practical implicationsThe analysis of the examples of coaching using activity systems provides evidence of the efficacy of specific coaching provision in achieving individually defined objectives related to sustaining and improving specific educational practices.Originality/valueThe research offers insights into how coaching in education might be better tuned to the specific needs of contexts and the challenges experienced by the individuals working in them. In addition, it demonstrates the value of activity systems as an analytical tool to make sense of coaching efficacy.

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Mapping the contours of fairness

Journal of Organizational Effectiveness People and Performance ◽

10.1108/joepp-02-2014-0010 ◽

2014 ◽

Vol 1 (2) ◽

pp. 191-204 ◽

Cited By ~ 6

Author(s):

Lilian Otaye ◽

Wilson Wong

Keyword(s):

Job Satisfaction ◽

Factor Analysis ◽

Regression Analysis ◽

Turnover Intention ◽

Content Type ◽

Mediating Role ◽

The Uk ◽

The Relationship

Purpose – The purpose of this paper is to explore the contours of fairness by showing how different facets of fairness impact three important employee outcomes (job satisfaction, turnover intention and employer advocacy) and examining the mediating role of quality of management and leadership (through perceptions of both senior management and the quality of exchange with immediate supervisors) in attenuating negative impacts of unfairness on these outcomes. The study extends the concept of fairness beyond the traditional focus on organizational justice and models the mediating role of leadership on the relationship between (un)fairness and the three employee-level outcomes in a sample of employees representative of the UK workforce. Design/methodology/approach – Data were obtained from a nationally representative sample of 2,067 employees in the UK. Exploratory factor analysis and then confirmatory factor analysis is used to refine three unfairness factors and address their dimensionality of the unfairness scale and then multiple regression analysis is used to test a fairness-leadership-employee performance outcome model. Findings – Results of multiple regression analysis revealed that both trust in leadership and leader-member exchange partially mediate the relationship between organizational (un)fairness and job satisfaction, advocacy and turnover intention, respectively. Practical implications – The findings highlight the important role that leaders play in influencing the relationship between perception of unfairness and employee outcomes. This has implications for both theory and practice as it suggests that the pattern of inclusion that leaders create through the relationships that they develop with their followers has a significant impact on the relationship between unfairness and the work outcomes. They not only must manage traditional perceptions of justice, but also the assessments employees make about trust in management judgements and the perceived consequences of such judgements. Originality/value – In an environment where perceptions of unfairness are becoming both more endemic but also more complex, the study shows that both senior leaders and immediate supervisors have important agency in managing negative consequences. Through the measurement of satisfaction, turnover intention and employer advocacy it also provides potential links to link fairness into the engagement literature.

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The mediating role of organizational embeddedness on the relationship between quality of work life and turnover

International Journal of Manpower ◽

10.1108/ijm-12-2015-0205 ◽

2017 ◽

Vol 38 (5) ◽

pp. 696-711 ◽

Cited By ~ 11

Author(s):

Decha Dechawatanapaisal

Keyword(s):

Life Quality ◽

Work Life ◽

Quality Of Work Life ◽

Content Type ◽

Mediating Role ◽

Career Opportunities ◽

Organizational Embeddedness ◽

The Relationship

Purpose The purpose of this paper is to investigate the mediating effect of organizational embeddedness in the relationship between quality of work life (QWL) and turnover under a foundation of conservation of resources theory. Design/methodology/approach Data were collected from 422 healthcare professionals through a questionnaire survey, and analyzed by means of a confirmatory factor analysis and structural equation modeling. Findings The results indicate that organizational embeddedness has a negative impact on employees’ intention to leave, and on actual turnover. For QWL perception, career opportunities, work life balance, and job characteristics are positive and significant predictors of organizational embeddedness. In addition, organizational embeddedness plays an intermediary role that mediates the relationship between the three components of QWL mentioned earlier and turnover intention, and also between the factor of career opportunities and actual turnover. Research limitations/implications The current research took place within two healthcare organizations. Replicating the study in a variety of business sectors or professions with a larger sample of subjects would be useful for the generalizability of the findings. Practical implications Organizations may improve their retention of employees by offering intrinsic resources that can be obtained from the social contexts of the individual through human resource management system, e.g., growth opportunities, a healthy and caring work life quality. Such motivational resources then develop a sense of obligation toward their places of employment, which influences their intention to stay or leave. Originality/value This study examines the mediating role of organizational embeddedness between employees’ perception of their work life quality and their desire and behavior to withdraw, which is an area of inquiry that has not been fully investigated in the literature.

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