The Impact of World Religions on Conservatism

2020 ◽  
Vol 19 (2) ◽  
pp. 197-218
Author(s):  
Laura Swenson

ABSTRACT This study examines the association between world religions and the earnings attribute of conservatism. I group the major world religions into two sub-groups, Western and Eastern. Prior literature documents that followers of Western religions have a lower preference for risk relative to followers of Eastern religions. Prior literature also finds a lower preference for risk is associated with more conservative reporting. Using a large sample of firms listed on exchanges around the world, I find earnings of firms domiciled in countries with larger Western religious presence are more conservative. The results hold after using an indicator for whether the predominant religion in the country is a Western religion, controlling for religiosity, and using a sample of U.S. foreign registrants that file a 20-F reconciliation with the SEC. My study contributes to our understanding of how social norms affect financial reporting. JEL Classifications: G14; G15; M41.

2018 ◽  
Vol 15 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Hui Du ◽  
Kean Wu

ABSTRACT This study examines the impact of the Securities and Exchange Commission's (SEC) XBRL (eXtensible Business Reporting Language) mandate on the timeliness of financial reporting, measured by the reporting lag between fiscal period end and the filing date. Using annual and quarterly filing data from 2007 to 2014, we compare the reporting lags of XBRL reports to the lags of non-XBRL reports in three separate filing categories as defined by the SEC. The results show that by using XBRL the reporting lag is shortened by one to two days when companies file annual reports while the reporting lag is shortened by one day in quarterly filings. However, the results are manifest for both large accelerated filers and accelerated filers. In the multivariate analysis, we do not observe the improved reporting lag when using XBRL among non-accelerated filers. While we provide the evidence that the XBRL mandate improves the timeliness of financial reporting for large filers, we question the public policymaking of the XBRL mandate that has the intention of benefiting small companies and their investors. JEL Classifications: D83; G14; G18; M48; Z18


2020 ◽  
Author(s):  
Ahmed M. Abdel-Meguid ◽  
Jared Jennings ◽  
Kari Joseph Olsen ◽  
Mark T. Soliman

Non-GAAP earnings provide managers the flexibility to exclude GAAP items to either produce a more informative performance measure or provide them the ability to opportunistically exclude recurring expenses from non-GAAP earnings. Prior literature examines the use of this form of disclosure at the firm level, although it is ultimately management's decisions. We extend prior non-GAAP literature by examining whether the use and quality of non-GAAP earnings is influenced by CEO personality traits; namely CEO narcissism. We find narcissistic CEOs are more likely to exclude expenses from non-GAAP earnings and that the magnitude of exclusions is greater. We also find that those non-GAAP exclusions are more persistent, and thus lower quality. Our results shed light on the disclosure practice of non-GAAP earnings and show how narcissistic CEOs are more likely to take advantage of the discretion in financial reporting disclosures in order to benefit the firm and themselves.


2012 ◽  
Vol 34 (2) ◽  
pp. 67-91 ◽  
Author(s):  
G. Ryan Huston ◽  
Thomas J. Smith

ABSTRACT This paper extends prior stock option literature by examining the impact of individual and corporate tax incentives on the decision to hold or sell shares acquired through the exercises of incentive stock options (ISOs) and non-qualified stock options (NQSOs). We focus on factors found in prior literature to be associated with the choice to hold or sell in the context of the type of stock option exercised. Specifically, we find that the positive (negative) relation found in prior literature between the decision to hold shares following exercise and future returns (depth) is associated more with NQSOs than ISOs, consistent with individual tax incentives. Examining corporate tax incentives, we find that corporate tax benefits mitigate insiders' likelihood to hold shares obtained from ISO exercise. Furthermore, we find evidence that firms compensate employees to forgo individual tax benefits associated with holding shares from ISO exercise, and as this compensation increases, insiders are more likely to sell following exercise. JEL Classifications: H24; H25; J33.


2019 ◽  
Vol 23 (4) ◽  
pp. 442-457
Author(s):  
Ilídio Tomás Lopes

Purpose The purpose of this paper is to identify the impact of intangibles as drivers of economic future benefits, in the top technological companies in the world. It also aims to identify whether the distribution of those intellectual capital (IC) drivers depends on the region and on the accounting standards, used in the preparation of firms’ financial reporting. Design/methodology/approach Using information from the major technological firms for a range of time of five years, a set of IC proxies were identified and regressed. Three linear models were used, and hypotheses were performed toward the identification of significant impacts on firms’ turnover prediction. Findings A set of intangibles was identified as significant drivers of firms’ turnover. Results suggest that the distribution of those proxies differ among regions and depend on the accounting standards. Firms from North-American evidence higher levels of intangibles, their boards composition is differentiated, additionally tending to increasingly invest in research and development activities. Research limitations/implications In spite of the limitations, the authors underline the sample size. However, the current approach can be replicated over time, and based in other rankings, applicable to other activity sectors and using different metrics. Practical implications Based on the major technological firms worldwide, the research adds value to the already known scope of intangibles, by providing additional and complimentary outcomes. A new direction, based on the scope of intangibles accounting standards used in the preparation of financial statements, was flagged toward theory and practice alignment. Originality/value This research adds value to the current literature by exploring the effects of intangibles in the major technological companies in the world. Focused in a sector strongly marked by innovative strategies, it provides a new and complimentary overview.


2011 ◽  
Vol 87 (2) ◽  
pp. 645-673 ◽  
Author(s):  
Sean T. McGuire ◽  
Thomas C. Omer ◽  
Nathan Y. Sharp

ABSTRACT This study examines the impact of religion on financial reporting. We predict that firms in religious areas are less likely to engage in financial reporting irregularities because prior research links religiosity to reduced acceptance of unethical business practices. Our results suggest that firms headquartered in areas with strong religious social norms generally experience lower incidences of financial reporting irregularities. We also examine whether religiosity influences managers' methods of managing earnings. Although we find a negative association between religiosity and abnormal accruals, we find a positive association between religiosity and two measures of real earnings management, suggesting that managers in religious areas prefer real earnings management over accruals manipulation. We provide evidence that our results are not driven by firms headquartered in rural areas and conclude that religious social norms represent a mechanism for reducing costly agency conflicts, particularly when other external monitoring is low. Data Availability: Contact the authors.


2020 ◽  
Vol 5 (2) ◽  
pp. p21
Author(s):  
Hasan El-Mousawi ◽  
Hasan Kanso

The outbreak of a novel type of Coronavirus (COVID-19) in the majority of countries around the world has had many negative implications on almost all aspects of life. Currently, about a quarter of the population of Earth is quarantined at their homes, social distancing is effective everywhere, almost all industries have ceased their activities, and various businesses are either closed down or working from home. Procedures taken by governments or local authorities to improve their ability to contain the outbreak have impacted the global economy, which in turn will have many consequences on financial reporting of organizations. This study examines the impact of the novel Coronavirus outbreak on financial reporting of organizations from the viewpoint of Certified Public Accountants in Lebanon. The researchers have used a descriptive-analytical approach and have constructed a well-structured five-point Likert style questionnaire as the study tool. The questionnaire was distributed to a sample chosen from the population of certified public accountants in Lebanon. The random sample consisted of 300 practitioners of the profession, and 221 of them responded; all of which were valid for testing and analysis. The study reached some important findings mainly that the COVID-19 outbreak has had a significant impact on the financial reporting of businesses according to the opinions of Certified Public Accountants (CPAs) in Lebanon, and the researchers had some recommendations as a result.


Author(s):  
Christopher Janaway

Schopenhauer, one of the great prose-writers among German philosophers, worked outside the mainstream of academic philosophy. He wrote chiefly in the first half of the nineteenth century, publishing Die Welt als Wille und Vorstellung (The World as Will and Representation), Volume 1 in 1818 and Volume 2 in 1844, but his ideas became widely known only in the half-century from 1850 onwards. The impact of Schopenhauer’s philosophy may be seen in the work of many artists of this period, most prominently Wagner, and in some of the themes of psychoanalysis. The philosopher most influenced by him was Nietzsche, who originally accepted but later opposed many of his ideas. Schopenhauer considered himself a follower of Kant, and this influence shows in Schopenhauer’s defence of idealism and in many of his central concepts. However, he also departs radically from Kant. His dominant idea is that of the will: he claims that the whole world is will, a striving and mostly unconscious force with a multiplicity of manifestations. Schopenhauer advances this as a metaphysical account of the world as it is in itself, but believes it is also supported by empirical evidence. Humans, as part of the world, are fundamentally willing beings, their behaviour shaped by an unchosen will to life which manifests itself in all organisms. His account of the interplay between the will and the intellect has been seen as a prototype for later theories of the unconscious. Schopenhauer is a pessimist: he believes that our nature as willing beings inevitably leads to suffering, and that a life containing suffering is worse than nonexistence. These doctrines, conveyed in a literary style which is often profound and moving, are among his most influential. Equally important are his views on ‘salvation’ from the human predicament, which he finds in the denial of the will, or the will’s turning against itself. Although his philosophy is atheist, Schopenhauer looks to several of the world religions for examples of asceticism and self-renunciation. His thought was partially influenced by Hinduism at an early stage, and he later found Buddhism sympathetic. Aesthetic experience assumes great importance in Schopenhauer’s work. He suggests that it is a kind of will-less perception in which one suspends one’s attachments to objects in the world, attaining release from the torment of willing (desire and suffering), and understanding the nature of things more objectively. The artistic genius is the person abnormally gifted with the capacity for objective, will-free perception, who enables similar experiences in others. Here Schopenhauer adopts the Platonic notion of Ideas, which he conceives as eternally existing aspects of reality: the genius discerns these Ideas, and aesthetic experience in general may bring us to comprehend them. Music is given a special treatment: it directly manifests the nature of the will that underlies the whole world. In ethics Schopenhauer makes thorough criticisms of Kant’s theory. He bases his own ethical views on the notion of compassion or sympathy, which he considers a relatively rare quality, since human beings, as organic, willing beings, are egoistic by nature. Nevertheless, compassion, whose worldview minimizes the distinctness of what are considered separate individuals, is the only true moral impulse for Schopenhauer.


Author(s):  
Richard J. Crisp

‘Attitudes and influence’ discusses how attitudes form, change, and predict behaviour; and how they are inherently social, defined, and refined in response to people in the world around us. Attitudes are a set of beliefs about an object, person, or issue and can be simple and clear, or complex and multifaceted. They are the basic building blocks of our mental models and inform and guide our ideals, aspirations, values, and ideologies. Attitudes predict our behaviour, and are therefore integral to who we are, what we do, and why we do it. The impact of persuasion, social influence, social norms, conformity, leadership, and social facilitation on our behaviour is also considered.


2021 ◽  
Vol 10 (4) ◽  
pp. 142
Author(s):  
Peter Choate ◽  
Radha Sharan

Background: Incest is a form of sexual activity that occurs within family or kinship systems. It is prohibited by religion and law in most countries as well as by social mores or taboos. Data from various parts of the world indicate, however, that it appears to be a relatively common event, although there is reason to believe that the actual frequency is unknown. Most available data focus upon children as victims, although we note that incest also occurs between adult family members. Methods: A systematic review was performed using PRISMA guidelines. With a focus upon India, the search tools of Academic Search Complete, Google Scholar and PUBMED were used to identify articles that legally defined incest; frequency; barriers to disclosure; the dynamics of incest and social norms. Results: The available data were very limited, making a systematic review unachievable within the narrow confines of incest. Conclusions: The literature is sparse. This led to a discussion of definitional issues; barriers to disclosure; and challenges with measuring the problem of incest and the impact of social norms. Questions of law and efforts at reform were also considered. The article considers what steps might be appropriate.


Author(s):  
Ajit Dayanandan ◽  
Han Donker ◽  
Mike Ivanof ◽  
Gökhan Karahan

Purpose The purpose of this study is to examine whether the quality of financial reporting has improved after the adoption of International Financial Reporting Standards (IFRS) in Europe and across the world. The study investigates the impact of IFRS on income smoothing and earnings management in different geographic regions under different legal origins and disclosure environments. Design/methodology/approach To measure income smoothing in the pre- and post-IFRS periods, the authors use the coefficient of variation and the panel unit root model proposed by Im et al. (2003) for testing whether net income is stationary throughout the sample period. The study uses a dynamic panel estimation framework, as it captures the dynamics of IFRS on discretionary accruals efficiently. Discretionary accruals are used to measure earnings management. Findings The results suggest that the adoption of high quality standards, such as IFRS, reduces income smoothing and earnings management. In addition, the study finds that earnings management has decreased in the post-IFRS period, in particular, for French and Scandinavian civil law countries, but not for German civil law countries and common law countries. The latter can be explained by the fact that common law countries have strong investor protection laws, strict law enforcement and high disclosure levels of financial information. The study also finds empirical evidence that the adoption of IFRS reduces earnings management in countries with high levels of financial disclosure. Overall, the study shows that the adoption of IFRS improved the quality of financial reporting. Originality/value This study is useful for accounting standard setters across the world, including those countries that have not yet decided to adopt IFRS. The study contributes to the literature by examining the adoption of IFRS in income smoothing and earnings management under different legal regimes and disclosure environments by using advanced empirical methodologies.


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