scholarly journals Financial Analysts' Processing of Financial Reporting Information in Emerging and Frontier Markets

2016 ◽  
Vol 2 (1) ◽  
pp. 39-46
Author(s):  
Philip Jehu ◽  
Mohammad Azhar Ibrahim
Keyword(s):  
Financial Reporting ◽  
Conflicts Of Interest ◽  
Stock Exchanges ◽  
Qualitative Information ◽  
Stock Valuation ◽  
Valuation Process ◽  
Show Evidence ◽  
Reporting Environment ◽  
The Relationship ◽  
Desk Research

Objective: The purpose is to establish the relationship between the analysts' stock valuation, the reporting environment and the stock recommendations. And to investigate the process of incorporating both quantitative and qualitative information into their forecasts. Methodology: The research will be archival, obtaining historical information from DataStream, Stock Exchanges and MSCI. A survey will also be carried out to corroborate findings, as the analysts' valuation process may not be obtained through desk research. Results: The results are expected to show evidence for the incentive conflicts of the analysts' decisions with regards to the peculiarities of the macroeconomic environments under consideration. Implication: The write up has implications for sell-side analysts where they have perceived incentive conflicts when they make recommendations. The research contributes to the argument on the conflicts of interest analysts face in forecasting earnings and making recommendations within the markets peculiar environment.

Corporate Social Responsibility and Financial Reporting Quality:Evidence from Restatements

2020 ◽  
Author(s):  
Yi-Hung Lin ◽  
Hua-Wei (Solomon) Huang ◽  
Mark E. Riley ◽  
Chih-Chen Lee
Keyword(s):  
Financial Reporting ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Csr Reporting ◽  
Corporate Social ◽  
Reporting Environment ◽  
The Relationship

We find a negative relationship between aggregate CSR scores and the probability that firms restated financial statements over the period 1991-2012. We then break that period into three sub-periods in order to determine whether the relationship holds for all three sub-periods. During the sub-periods of 1991-2001 and 2002-2005, the negative CSR score - restatement probability relationship holds. The negative relationship disappears in the 2006-2012 sub-period. Additional analyses indicate CSR scores are significantly higher in the 2006-2012 sub-period, suggesting the disappearance of the relationship between aggregate CSR scores and financial statement quality may relate to changes in CSR assessments and the CSR reporting environment. Our findings update the literature linking CSR scores and financial reporting quality and identify the need for further research as to the reasons the link between these constructs disappeared.

The relationship between the extent of online financial disclosure and profitability of Islamic banks

2019 ◽  
Vol 17 (2) ◽  
pp. 343-362 ◽  
Author(s):  
Abdalmuttaleb M.A Musleh Al-Sartawi ◽  
Sameh M. Reda Reyad
Keyword(s):  
Financial Reporting ◽  
Financial Disclosure ◽  
Stock Exchanges ◽  
Islamic Banks ◽  
Content Type ◽  
Return On Equity ◽  
Gcc Countries ◽  
Economic Decision Making ◽  
And Performance ◽  
The Relationship

Purpose This study aims to examine the relationship between online financial disclosure (OFD) and profitability of Islamic banks in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach An extensive review of the literature was carried out and a checklist of 90 items (71 for content and 19 for presentation) was adopted to measure the level of OFD for the Islamic banks that are listed on the GCC stock exchanges. Additionally, the study used three indicators to measure profitability, namely, return on equity, return on assets and earnings per share. Findings The findings show that the overall OFD by Islamic banks in the GCC is 72.5 per cent, and a negative and insignificant relationship between OFD and profitability. Practical implications The study recommends that regulatory bodies should develop a guideline of disclosing information through the internet to enhance the transparency and performance among Islamic banks, which leads to reasonable economic decision-making. Originality/value The study contributes to the financial reporting and the Islamic economy literature relating to the GCC countries as previous studies gave no attention to Islamic banks.

scholarly journals The Analysis of the Relationship between the Values under IFRS and under GCAS: An Exploratory Study on Moroccan Financial Market

2017 ◽  
Vol 7 (2) ◽  
pp. 129
Author(s):  
Anass Cherti ◽  
Houria Zaam
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Market ◽  
Financial Information ◽  
Stock Exchanges ◽  
Financial Reporting Standards ◽  
National Reference ◽  
Enormous Amount ◽  
Set Up ◽  
The Relationship

Until the end of the 1980s, the activity of accounting standardization was strictly national for tax and legal reasons. This conception or logic was revised in the last quarter of the twentieth century following the globalization of the economy and the intensification of the international market/stock exchanges. Indeed, the multitude of accounting standards urged investors to spend an enormous amount of time understanding them before analyzing the economic situation of the countries in which they wanted to invest. Several organizations were therefore set up to develop international accounting standards.The purpose of this article is to present the results of an empirical study using companies listed on the Casablanca Stock Exchanges (CSE), to measure the relationship between the values under International Financial Reporting Standards (IFRS) and those under the General Code of Accounting Standardization (GCAS) on the Moroccan financial market.The results show that the values of the accounting and financial information under the international reference "IFRS" are in common evolution with the values of accounting and financial information under the national reference "GCAS".

FINANCIAL CRISES AND THE PUBLICATION OF THE FINANCIAL STATEMENTS OF BANKS IN SPAIN, 1844–1868

2004 ◽  
Vol 31 (2) ◽  
pp. 1-26 ◽  
Author(s):  
Mercedes Bernal Lloréns
Keyword(s):  
19Th Century ◽  
Financial Reporting ◽  
Economic Performance ◽  
Financial Crises ◽  
Limited Liability ◽  
Financial Statements ◽  
Early Response ◽  
Banking Regulations ◽  
The Stability ◽  
The Relationship

Financial crises have had a decisive influence on banking regulations in Spain. During the mid-19th century the publication of the financial statements of banks was considered key to the stability of the financial system. All new joint stock banking companies were to publish their statements in the Madrid Gazette in return for the privilege of limited liability. Similar obligations were placed on issuing banks. The copious publication of financial statements coincided with a period of financial prosperity. However, the crises that followed from 1864 to 1868 led to a reduction in the official publication of statements. This paper is concerned with an early response to crises in financial reporting. The study focuses on the relationship between the publication of accounting statements by banks and the GDP in Spain during the mid-19th century. The results suggest that the frequency of publication of financial statements may be an indicator of economic performance.

U.S.-Listed Foreign Companies' Choice of a U.S.-Based versus Home Country-Based Big N Principal Auditor and the Effect on Audit Fees and Earnings Quality

2015 ◽  
Vol 29 (3) ◽  
pp. 631-666 ◽  
Author(s):  
Sharad C. Asthana ◽  
K. K. Raman ◽  
Hongkang Xu
Keyword(s):  
Financial Reporting ◽  
Home Country ◽  
Earnings Quality ◽  
Audit Fees ◽  
Foreign Companies ◽  
Two Factors ◽  
Just Price ◽  
Reporting Environment ◽  
The U.S

SYNOPSIS We examine why U.S.-listed foreign companies choose to have a U.S.-based (rather than home country-based) Big N firm as their principal auditor for SEC reporting purposes and the effects of that choice for audit fees and earnings quality. We find that the likelihood of the Big N principal auditor being U.S.-based is decreasing in client size and the level of investor protection in the home country, and increasing in the proportion of income earned outside the home country. We also find compelling evidence that U.S.-based Big N auditors are associated with higher-quality earnings (albeit for a higher fee), despite two factors—the greater distance between the U.S.-based (vis-à-vis home country-based) Big N auditor and the client, and the likelihood that much of the audit work is done outside the U.S.—which potentially could lower the earnings quality of the U.S.-listed foreign client when the Big N principal auditor is U.S.-based. Overall, our study suggests that the higher fees associated with a U.S.-based Big N principal auditor is not just price protection; rather, U.S.-based Big N principal auditors are also improving the financial reporting environment by reporting higher-quality audited earnings for their U.S.-listed foreign clients. JEL Classifications: L11; L15; M42.

Determinants of Financial Disclosure

Auditor ◽  
2021 ◽  
Vol 7 (11) ◽  
pp. 38-42
Author(s):  
N. Mislavskaya
Keyword(s):  
Financial Reporting ◽  
Social Democracy ◽  
Professional Community ◽  
Financial Statements ◽  
Financial Disclosure ◽  
Accounting Practice ◽  
Western European ◽  
The Relationship

The article examines the issues of the dependence of the composition of the accounting (financial) reporting forms, prepared based on the results of the accounting process, on the theoretical views prevailing in scientific circles and in society as a whole. The author analyzes the main provisions of Western liberalism, conservatism, Western European social democracy and draws corresponding parallels, reveals the relationship with those elements that make up financial statements. According to the results of the study, the author claims that the domestic professional community is on the verge of another wave of reforming accounting knowledge and accounting practice.

The relationship between knowledge-based economy and fraudulent financial reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abbas Koolivand ◽  
Mahdi Salehi ◽  
Meysam Arabzadeh ◽  
Hassan Ghodrati
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Knowledge Based ◽  
Robust Testing ◽  
Knowledge Based Economy ◽  
The Relationship

Purpose This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting. Design/methodology/approach The study is descriptive-correlation based on published information from enlisted firms on the Tehran Stock Exchange during 2013–2019 with a sample of 178 firms (1,246 observations). The method used for hypothesis testing is linear regression using the panel data. Findings The results show that a knowledge-based economy is associated negatively and significantly with financial reporting. Moreover, robust testing has also examined the hypotheses (including fixed effects, OLS and t + 1) that confirmed the study’s preliminary results. Originality/value As the study was carried out in the emergent financial markets, like Iran, to figure out the relationship between knowledge-based economy and financial reporting, it can provide helpful information for the practitioners in this field.

Tamed Transparency: How Information Disclosure under the Global Reporting Initiative Fails to Empower

2010 ◽  
Vol 10 (3) ◽  
pp. 74-96 ◽  
Author(s):  
Klaus Dingwerth ◽  
Margot Eichinger
Keyword(s):  
Financial Reporting ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Reporting Scheme ◽  
Corporate World ◽  
Four Levels ◽  
The Relationship

In this contribution, we explore the tensions that seem inherent in the claim that transparency policies “empower” the users of disclosed information vis-àvis those who are asked to provide the information. Since these tensions are particularly relevant in relation to voluntary disclosure, our analysis focuses on the Global Reporting Initiative (GRI) as the world's leading voluntary corporate non-financial reporting scheme. Corporate sustainability reporting is often hailed as a powerful instrument to improve the environmental performance of business and to empower societal groups, including consumers, in their relations with the corporate world. Yet, our analysis illustrates that the relationship between transparency and empowerment is conflictual at all four levels of activity examined in this article: in the rhetoric and policies of the GRI as well as in the actual reporting practice and in the activities of intermediaries in response to the organization's disclosure standard.

The relationship between cost stickiness and financial reporting quality in Tehran Stock Exchange

2018 ◽  
Vol 67 (9) ◽  
pp. 1550-1565 ◽  
Author(s):  
Mahdi Salehi ◽  
Nasrin Ziba ◽  
Ali Daemi Gah
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Statistical Software ◽  
Testing Hypotheses ◽  
Content Type ◽  
The Relationship ◽  
Cost Stickiness

Purpose The purpose of this paper is to investigate the relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange. Design/methodology/approach Data of all Iranian manufacturing listed companies gathered for testing hypotheses during 2010–2016 and R statistical software are employed in order to analyzing data. Findings The results of this study indicate that there is a significant relationship between administrative, sale, material, labor and overhead costs and the financial reporting qualities of the companies under study. Originality/value The study focuses on relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange, which is the first study of its type in Iran.

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