Relevance versus Reliability Trade-off in Financial Reporting among Companies Listed at Visegrad Group Stock Exchanges

Analysis of Leading Cities in Central Europe: Control of Regional EconomyNowadays, one of the characteristic orientations in social science studies focusing on cities is the ranking of cities, as well as the definition of the world's leading cities (world cities, global cities) on the basis of various criteria. Central European countries are given just a minor role in these researches, particularly in comparison with German cities with their considerable economic performance. This analysis compares the large cities of Austria, Germany and the countries of the Visegrád Group in terms of their role in economic leadership. To this end, the characteristic parameters have been examined: the GDP in purchasing power standards and nominal GDP of the cities, the revenues of large companies found in these cities, as well as the domestic market capitalization of the stock exchanges.

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The Effect of Access to Debt on Lebanese Small and Medium Enterprises Performance

ACRN Journal of Finance and Risk Perspectives ◽

10.35944/jofrp.2020.9.1.003 ◽

2020 ◽

Vol 9 (1) ◽

pp. 32-44

Author(s):

Zainab Abdulawood Jadoua ◽

Nihal Farid Mostapha

Keyword(s):

Financial Performance ◽

Financial Reporting ◽

Developing Economies ◽

Empirical Studies ◽

Generalized Least Squares ◽

Developed Countries ◽

Order Theory ◽

Theoretical Explanation ◽

Financial Behavior ◽

Trade Off

Since thirties access to debt has been considered as one of the main challenges facing the growth of Small and medium-sized enterprises (SMEs). Therefore, empirical studies focused on how facilitating access to debt affects SMEs financial performance in developed countries. However, this is not the case in the developing economies countries such as Lebanon due to the lack of financial transparency and poor financial reporting. In addition, very few studies discussed the theoretical pillar behind SMEs financial behavior on how access to debt affects firm performance in developed and developing countries. Therefore, this study attempts to investigate the effect of access to debt on Lebanese SMEs financial performance in terms of profitability and tangibility. In addition, the study explores the theoretical explanation of how Lebanese SMEs access to debt affects profitability (PR) and tangibility (ST) using trade-off theory (TOT) and pecking order theory (POT). Data of 102 SMEs for the period 2014 till 2017 from 12 official audit firms located in Beirut-Lebanon. Additionally, generalized least squares (GLS) method was used to conduct regression analysis. The analysis reveals the positive effect of Lebanese SMEs access to debt on SMEs profitability and tangibility confirming the adoption of trade-off theory as an approach by Lebanese SMEs and lenders. It is concluded that facilitating Lebanese SMEs access to debt to reach proper debt level improves SMEs performance which in return affects positively the lenders and economy as whole.

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The Politics of Setting Standards for Financial Reporting

The New Global Rulers ◽

10.23943/princeton/9780691144795.003.0005 ◽

2011 ◽

Author(s):

Tim Büthe ◽

Walter Mattli

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

The United States ◽

Stock Exchanges ◽

Financial Accounting Standards Board ◽

Institutional Fit ◽

Financial Reporting Standards ◽

The United Kingdom ◽

Political Dimensions ◽

Business Survey

This chapter examines the political dimensions of setting standards for global financial reporting. Drawing on the results of an international business survey, conducted among hundreds of chief financial officers and other senior financial managers of companies listed on the main stock exchanges in France, Germany, the United Kingdom, and the United States, the chapter asks whether institutional fragmentation of accounting governance in Europe impedes the effective aggregation of European interests and their projection onto the international stage, while the close institutional fit between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) significantly facilitates the representation of American interests. It shows that U.S. firms are considerably more successful than their European counterparts when they try to influence international financial reporting standards.

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ANALISIS KARAKTERISTIK PERUSAHAAN DAN AUDITOR YANG MEMPENGARUHI KETERLAMBATAN PENYELESAIAN AUDIT DAN DAMPAKNYA TERHADAP REAKSI INVESTOR

Jurnal Benefita ◽

10.22216/jbe.v3i1.2508 ◽

2018 ◽

Vol 3 (1) ◽

pp. 106

Author(s):

Sumantri Sumantri ◽

Desiana Desiana ◽

Hendi Hendi

Keyword(s):

Financial Reporting ◽

Abnormal Return ◽

Sampling Method ◽

Financial Statements ◽

Stock Exchanges ◽

Regression Result ◽

Company Size ◽

Purposive Sampling ◽

Investor Reaction ◽

Time Information

Audit delays can be happen in any corporations. Audit delays are determined by the number of days that elapse from the end of auditees’ fiscal years till the date of audit report released. On time information will be quick reaction by investor. It is important to understand factors that influence audit delay since it directly affects the timeliness of financial reporting which is one of the most important qualitative attributes of financial statements. This research uses 534 firms listed in Indonesian Stock Exchanges, which is selected by using purposive sampling method. Those selected firms announced their financial statements during the 2016. Based on the regression result of the research, those selected samples and qualified the selected criteria are 403 samples. The result of the research showed that the company size, audit complexity and industry classification have significant effect on the audit delays. Additional analyze of the research showed that audit delays has significant effect on the abnormal return to predict investor reaction. Keterlambatan penyelesaian audit dapat terjadi pada setiap perusahaan. Keterlambatan penyelesaian audit ditentukan dari jumlah hari yang berlalu sejak tanggal akhir tahun fiskal auditee hingga tanggal laporan audit diterbitkan. Hal ini penting untuk memahami faktor-faktor yang mempengaruhi keterlambatan audit karena berpengaruh langsung terhadap ketepatan waktu pelaporan keuangan yang merupakan salah satu atribut yang terpenting dalam kualitatif laporan keuangan. Penelitian ini menggunakan 534 perusahaan yang terdaftar di Bursa Efek Indonesia, yang dipilih dengan metode purposive sampling. Perusahaan yang dipilih melaporkan laporan keuangannya pada tahun 2016. Berdasarkan hasil penelitian, sampel yang memenuhi kriteria penelitian adalah 403 sampel. Hasil dari penelitian menunjukkan bahwa ukuran perusahaan, kompleksitas audit dan jenis industri berpengaruh signifikan terhadap keterlambatan penyelesaian audit. Analisis tambahan penelitian menunjukkan keterlambatan penyelesaian audit berpengaruh signifikan terhadap abnormal return untuk memprediksi reaksi investor.

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The Dark Side of Mandatory IFRS Adoption: Does IFRS Adoption Deteriorate Accrual Reliability?

The International Journal of Accounting ◽

10.1142/s1094406021500165 ◽

2021 ◽

pp. 2150016

Author(s):

Jeong-Bon Kim ◽

Yiye Liu ◽

Haina Shi ◽

Xindong Kevin Zhu

Keyword(s):

Financial Reporting ◽

Value Relevance ◽

Dark Side ◽

Reporting Standards ◽

Financial Instruments ◽

Difference In Differences ◽

Trade Off ◽

Negative Relation ◽

Financial Reporting Standards ◽

Ifrs Adoption

We examine a potential informational cost of adopting the International Financial Reporting Standards (IFRS). Using a difference-in-differences approach, we find that mandatory IFRS adoption leads to a significant decrease in accrual reliability. We also find that this negative relation between IFRS adoption and accrual reliability is more pronounced for firms (a) holding more financial instruments and (b) domiciled in jurisdictions with weak institutional features. The above findings are robust to alternative sampling and an extended sample period. Further analysis shows that reduced accrual reliability reflects a trade-off with increased value relevance and that outside investors fail to understand the IFRS-induced reductions in accrual reliability.

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IFRS Adoption in the EU and the Challenge of Nomenclature Evidence from the UK, France, and Germany

Advances in Finance, Accounting, and Economics - Economics and Political Implications of International Financial Reporting Standards ◽

10.4018/978-1-4666-9876-5.ch007 ◽

2016 ◽

pp. 134-143

Author(s):

Matthias Nnadi ◽

Sailesh Tanna

Keyword(s):

Financial Reporting ◽

Balance Sheet ◽

Financial Statements ◽

Stock Exchanges ◽

The European Union ◽

Consolidated Financial Statements ◽

Financial Reporting Standards ◽

Ifrs Adoption ◽

The Uk ◽

The Eu

Since the adoption of International Financial Reporting Standards (IFRS) and the subsequent directive by the European Union (EU), all companies operating in the EU are required to report their consolidated financial statements in line with the IFRS. This study examines the consolidated financial statements of the top 170 listed companies in three major EU stock exchanges (UK, France and Germany) and uncovered a disparity in the use of common nomenclatures. The findings reveal that the inconsistencies in the application of terminologies such as statement of financial position instead of balance sheet and sequence of arrangement of assets in order of liquidity constitute the main differences for entities operating in the three countries. Such differences pose an imminent challenge in the comparability and interpretation of financial results.

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THE IMPORTANCE OF THE CONVERGENCE OF INTERNATIONAL ACCOUNTING STANDARDS TO THE NATIONAL ACCOUNTING SYSTEM OF UZBEKISTAN

World Science ◽

10.31435/rsglobal_ws/31012019/6301 ◽

2019 ◽

Vol 2 (1(41)) ◽

pp. 19-22

Author(s):

Ergasheva Shahlo Turgunovna ◽

Shermatov Behzod Xalimkul

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Stock Exchanges ◽

Accounting System ◽

International Accounting Standards ◽

Accounting Systems ◽

Foreign Investors ◽

National Accounting ◽

Financial Reporting Standards ◽

Speed Up

The actuality of the research:-Economic integration-Comparability & uniformity of financial statements-Attracting potential foreign investors.-The requirement of the world financial markets & stock exchanges. -The decreasing of costs of learning local standards.-The aim of research are:-Carrying out the improvement of our accounting systems to speed up the development of our country with the help of foreign investors’ capital.Developing our national accounting standards based on international financial reporting standards and to reveal the problems associated with this.

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Corporate governance listing requirements: protecting investors from fraudulent financial reporting

Corporate Ownership and Control ◽

10.22495/cocv11i4c7p14 ◽

2014 ◽

Vol 11 (4) ◽

pp. 717-746 ◽

Cited By ~ 3

Author(s):

Khaled Aljifri ◽

Hugh Grove ◽

Lisa Victoravich

Keyword(s):

New York ◽

Corporate Governance ◽

Financial Reporting ◽

Stock Exchange ◽

Investor Protection ◽

Stock Exchanges ◽

Structural Factors ◽

Behavioral Factors ◽

Fraudulent Financial Reporting ◽

The 2008 Financial Crisis

This paper analyzes the corporate governance listing requirements of major global stock exchanges to assess the level of investor protection from investment disasters, such as corporate fraudulent financial reporting (e.g. Enron, Lehman Brothers, Satyam, and Parmalat) and the 2008 financial crisis which destroyed over $1 trillion in market capitalization of U.S. companies. This investor protection issue is especially critical for emerging stock exchanges that are trying to attract foreign investors, such as in the United Arab Emirates (UAE) and Russia. This issue is assessed by comparing the corporate governance listing requirements of the well-established stock exchanges in the United States (both the New York Stock Exchange or NYSE and the over-the-counter-stock-exchange or NASDAQ), United Kingdom (London), and Singapore to the listing requirements of the emerging stock exchanges in the UAE and Russia. The effectiveness of these corporate governance listing requirements in protecting investors is assessed by determining how they address ten common corporate governance factors which represent lessons learned from recent fraudulent financial reporting scandals. These ten factors have been divided into two groups of five. The first five common factors were the same ones found in a 2010 Commission on Corporate Governance report, sponsored by the New York Stock Exchange, to investigate the 2008 financial crisis. This paper has called them “structural” factors and labelled the other five common factors as “behavioral” factors. The global listing requirement comparisons reveal that investors seem to be quite well protected from the five “structural” factors but not the five “behavioral” factors. The paper concludes with listing requirement suggestions to protect investors from these five “behavioral” factors. Investor protection from all ten factors is still needed as recent U.S. and global surveys have indicated that financial reporting manipulations are ongoing

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The disclosure of events after the reporting period. The example of listed companies from selected European countries

Zeszyty Teoretyczne Rachunkowości ◽

10.5604/01.3001.0014.4345 ◽

2020 ◽

Vol 109 (165) ◽

pp. 139-156

Author(s):

Małgorzata Szulc ◽

Paweł Zieniuk

Keyword(s):

Empirical Research ◽

Financial Reporting ◽

Stock Exchange ◽

Financial Statements ◽

Listed Companies ◽

European Countries ◽

Stock Exchanges ◽

Financial Reports ◽

Financial Reporting Standards ◽

Warsaw Stock Exchange

Purpose: The aim of this article is to present a practical study of disclosures of events after the reporting period in the financial reports of listed companies from selected European countries. The paper presents the results of empirical research based on the source material in the form of financial statements for the year 2018 of listed companies included on the following stock exchange indices: DAX, PSI-20, OMX25, BUX, WIG20, which comprise companies listed on the stock exchanges in Germany, Portugal, Denmark, Hungary and Poland. Methodology/approach: The research sample includes 110 companies. Content analysis of full versions of individual financial statements was performed. Findings: The results show that listed companies comply with the International Financial Reporting Standards regarding the disclo-sure of events after the reporting period. The occurrence of such events in the business practice of com-panies listed on the Warsaw Stock Exchange is much more frequent than in other European countries. The results of the study also present the diversity of events disclosed by respective companies included in the sample after the reporting period. Originality/value: The research allowed us to compare the scope of financial reporting disclosures of events after the reporting period in companies listed on the Warsaw Stock Exchange and in other European companies. Comparisons of this kind have not yet been carried out in international empirical research, which makes this article all the more valuable.

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The Importance of The Improvement And Convergence of Ias/Ifrs to the National Accounting System of Uzbekistan

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.b1147.0782s419 ◽

2019 ◽

Vol 8 (2S4) ◽

pp. 731-733

Keyword(s):

Financial Markets ◽

Economic Integration ◽

Financial Reporting ◽

Financial Statements ◽

Stock Exchanges ◽

Accounting System ◽

Accounting Systems ◽

Foreign Investors ◽

Accounting Principles ◽

Reduced Costs

The relevance of research: • Economic integration • Comparability and uniformity of financial statements • Attraction of prospective overseas investors. •The requirements of global financial markets and stock exchanges. • Reduced costs of studying local standards. Research Objectives: • Work to improve our accounting systems to accelerate the development of our country with the help of capital of foreign investors. • Development of our domestic accounting principles based on transnational financial reporting principles and identification of problems associated with this.

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