scholarly journals Financial Reporting as a Source of Innovation-Relevant Competitive Intelligence

2021 ◽  
Vol 7 (2) ◽  
pp. 117
Author(s):  
Vincent O’Connell ◽  
Naser AbuGhazaleh ◽  
Garvan Whelan
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Relevant Information ◽  
Product Development Process ◽  
Competitive Intelligence ◽  
Process Innovations ◽  
Regulatory Changes ◽  
Economic Trends ◽  
Potential Competitor ◽  
Regular Work

In this article, we demonstrate that contemporary financial reporting systems have the capacity to contribute significantly to the generation of innovation-relevant competitive intelligence. This potential arises because, as part of its regular work, the financial reporting system compiles, collects, analyzes, and synthesizes strategically relevant information about (i) complex internal technical processes related to inventions, discoveries, product development, process innovations, and the like; (ii) detailed sales, cost, and profit forecasts; (iii) consumer trends and innovative developments in the firm’s markets; (iv) actual and potential competitor actions in the market; and (v) regulatory changes, macro-economic trends, and information about the likely impact of government policies. We argue that this competitive intelligence can, if properly harnessed, lead to better informed discourses and decisions around innovation. Consequently, we highlight the potential—from both academic research and practical perspectives—of financial reporting as an enabler of innovation-relevant competitive intelligence embeddedness within firms.

To Improve Financial Reporting, We Need to Disclose More Relevant Information

2017 ◽  
Author(s):  
Jeffrey A. Mankin ◽  
Jeffrey Jay Jewell ◽  
Julio A. Rivas
Keyword(s):  
Financial Reporting ◽  
Relevant Information

Interim Reporting Frequency and the Mispricing of Accruals

2018 ◽  
Vol 32 (3) ◽  
pp. 29-47
Author(s):  
Shou-Min Tsao ◽  
Hsueh-Tien Lu ◽  
Edmund C. Keung
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Data Availability ◽  
Financial Reports ◽  
Regulatory Changes ◽  
Sample Composition ◽  
Reporting Frequency ◽  
Over Time ◽  
Jel Classifications ◽  
Accrual Mispricing

SYNOPSIS This study examines the association between mandatory financial reporting frequency and the accrual anomaly. Based on regulatory changes in reporting frequency requirements in Taiwan, we divide our sample period into three reporting regimes: a semiannual reporting regime from 1982 to 1985, a quarterly reporting regime from 1986 to 1987, and a monthly reporting regime (both quarterly financial reports and monthly revenue disclosure) from 1988 to 1993. We find that although both switches (from the semiannual reporting regime to the quarterly reporting regime and from the quarterly reporting regime to the monthly reporting regime) hasten the dissemination of the information contained in annual accruals into stock prices and reduce annual accrual mispricing, the switch to monthly reporting has a lesser effect. Our results are robust to controlling for risk factors, transaction costs, and potential changes in accrual, cash flow persistence, and sample composition over time. These results imply that more frequent reporting is one possible mechanism to reduce accrual mispricing. JEL Classifications: G14; L51; M41; M48. Data Availability: Data are available from sources identified in the paper.

Does Recent Academic Research Support Changes to Audit Reporting Standards?

2016 ◽  
Vol 30 (2) ◽  
pp. 255-275 ◽  
Author(s):  
Jean Bédard ◽  
Paul Coram ◽  
Reza Espahbodi ◽  
Theodore J. Mock
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Financial Statements ◽  
Future Research ◽  
Research Support ◽  
The Public ◽  
Market Participants ◽  
Information Gap ◽  
Public Company ◽  
Reporting Process

SYNOPSIS The Public Company Accounting Oversight Board (PCAOB), the International Auditing and Assurance Standards Board (IAASB), and the U.K. Financial Reporting Council (FRC) have proposed or approved standards that significantly change the independent auditor's report. These initiatives require the auditor to make additional disclosures intended to close the information gap; that is, the gap between the information users desire and the information available through the audited financial statements, other corporate disclosures, and the auditor's report. They are also intended to improve the relevancy of the auditor's report. We augment prior academic research by providing standard setters with an updated synthesis of relevant research. More importantly, we provide an assessment of whether the changes are likely to close the information gap, which is important to financial market participants and other stakeholders in the audit reporting process. Also, we identify areas where there seems to be a lack of sufficient research. These results are of interest to all stakeholders in the audit reporting process, as the changes to the auditor's report are fundamental. Additionally, our summaries of research on the auditor's report highlight where there is limited research or inconsistent results, which will help academics identify important opportunities for future research.

scholarly journals The Impact of CSR on the Capital Structure of High-Tech Companies in Poland

2021 ◽  
Vol 13 (10) ◽  
pp. 5467
Author(s):  
Barbara Grabinska ◽  
Dorota Kedzior ◽  
Marcin Kedzior ◽  
Konrad Grabinski
Keyword(s):  
Capital Structure ◽  
Financial Reporting ◽  
Academic Research ◽  
Debt Financing ◽  
High Tech ◽  
High Tech Industry ◽  
Reporting Practices ◽  
Csr Reporting ◽  
The Impact ◽  
The Capital Structure

So far, CSR’s role in the high-tech industry is not fully explained by academic research, especially concerning the most burdensome obstacle to firms’ growth: acquiring debt financing. The paper aims to solve this puzzle and investigate whether young high-tech companies can attract more debt by engaging in CSR activity. To address the high-tech industry specificity, we divided CSR-reporting practice into three broad categories: employee, social, and environmental and analyzed their impact on the capital structure. Our sample consists of 92 firm-year observations covering the period 2014–2018. Using a regression method, we found out that only employee CSR plays a statistically significant role in shaping capital structure. We did not find evidence for the influence of the other types of CSR-reporting practices. The results suggest that employees are the key resource of high-tech companies, and, for this reason, they are at the management’s focus. This fact is visible at the financial reporting level and, as we interpret results, is also considered by credit providers. In a more general way, our results suggest that firms tend to choose CSR based on the importance of crucial resources.

scholarly journals Rethinking Non-Financial Reporting: A Blueprint for Structural Regulatory Changes

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
David Monciardini ◽  
Jukka Tapio Mähönen ◽  
Georgina Tsagas
Keyword(s):  
Financial Reporting ◽  
Final Section ◽  
Thematic Issue ◽  
Revision Process ◽  
The Past ◽  
Regulatory Changes ◽  
Collective Effort ◽  
Key Points ◽  
Structural Failures ◽  
Over Time

AbstractThe article introduces the thematic issue of Accounting, Economics, and Law: A Convivium dedicated to the regulation of non-financial reporting. It provides the reader with an overview of the varying approaches and frameworks that have emerged over time in relation to the reporting of non-financial information. In particular, the article focuses on the European Non-Financial Reporting Directive. We maintain that to date this latter initiative has failed to deliver on its intended objectives. In the context of the ongoing revision process of this initiative, the present paper outlines five key areas to be improved drawing on the lessons learnt from the past as well as from key points raised by the papers in the present thematic issue. What emerges from this collective effort is a renewed agenda that highlights some of the structural failures of the current reporting regime and a blueprint for future reforms. The final section summarises the various contributions of articles included in this thematic issue.

scholarly journals Regulatory Arbitrage in the Intersection of Accounting Standards and Tax Laws: The Case of Synthetic Leases

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Jan Friedrich
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Regulatory Arbitrage ◽  
Regulatory Changes ◽  
Tax Laws ◽  
The Usa ◽  
Tax Benefits ◽  
Sophisticated Instrument ◽  
Us Gaap

AbstractThis paper focuses on the interplay between accounting standards and tax laws in the context of regulatory arbitrage by examining the development of synthetic leases especially in the USA. In a synthetic lease, the lease remains off balance sheet for financial reporting by the lessee, while depreciations and interest expenses can be deducted for tax purposes. Exploring the evolving structures of synthetic leases over the last 30 years, the paper demonstrates how financial engineers have been able to perpetually re-structure this sophisticated instrument to keep it off-balance sheet instrument notwithstanding regulatory changes. Specifically, it shows that the most recent revision of lease accounting standards in 2016 – that intended to mark the end of off-balance sheet leases under IFRS and US-GAAP – resulted in reviving the demand for synthetic leases as the tax benefits outweigh the structuring costs. Contributing to the debate on the shift towards international accounting convergence (including US-GAAP and IFRS), the paper argues that attempts to limit regulatory arbitrage may also consider the reciprocal linkages between accounting standards and tax laws. For instance, tax laws should be considered as a means to limit regulatory arbitrage in financial reporting.

scholarly journals Earnings Management Through Deferred Taxes Recognized Under IAS 12: Evidence From Pakistan

2014 ◽  
Vol 3 (1) ◽  
pp. 1-19
Author(s):  
Abdul Rafay Abdul Rafay ◽  
Mobeen Ajmal
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Value Relevance ◽  
Relevant Information ◽  
Cash Flows ◽  
Deferred Taxes ◽  
Deferred Tax Assets ◽  
Operational Activities ◽  
Deferred Tax ◽  
Relevant Component

This study examines earnings management through deferred taxes calculated under the IAS 12 and its impact on firm valuation. The literature finds that book–tax nonconformity leads to better earning quality and a greater association between earnings and future expected cash flows. Given that Pakistan is a pioneering implementer of the International Financial Reporting Standards, our hypothesis is that the components of deferred tax disclosed under the IAS 12 provide value-relevant information to equity investors. We divide deferred tax components into three categories: those arising from (i) operational activities, (ii) investing activities, and (iii) financing activities. These are subdivided to ensure that no value-relevant component is aggregated with a nonvalue-relevant component, which might otherwise lead to an information slack. Our sample includes data on shariah-compliant companies listed on the Karachi Meezan Index (KMI-30). We find that deferred tax line items in firms’ balance sheets are reflected in market prices. Investors also tend to treat deferred tax line items (arising from operating, financing, and investing activities) differently. Furthermore, the value relevance is dissimilar for different components of deferred tax. Investors are wary of deferred tax assets and liabilities when pricing and are likely to penalize firms with a higher deferred tax position.

Exploring the Spheres of Crowdfunding

2016 ◽  
pp. 190-209
Author(s):  
Bernard Owens Imarhiagbe
Keyword(s):  
Service Providers ◽  
Early Stage ◽  
Academic Research ◽  
Relevant Information ◽  
Research Literature ◽  
Policy Framework ◽  
Policy Statement ◽  
The World Bank ◽  
The Subject ◽  
The Uk

This chapter reviews research and policy literatures on the spheres of crowdfunding. It identifies reward-based, donation-based, equity-based and credit-based crowdfunding with a view to collate relevant information to support crowdfunding knowledgebase and further research. As crowdfunding is a new concept in research literature, it is increasing in popularity in social media, business and research communities. Academic research in crowdfunding is limited and the subject is still evolving as a way of access to finance for seed capital, entrepreneurial projects and other early stage projects. Advanced countries in Europe and North America have recognised the relevance of crowdfunding in varying proportion from one country to another for project fundraising. However, the World Bank confirmed that developing countries are at different stages of recognition of crowdfunding in their policy framework. Although the UK financial regulator, Financial Conduct Authority, has produced a policy statement for crowdfunding and approved some service providers such as crowdfunding platforms, it is still interacting with stakeholders and providing guidance to potential entrepreneurs on the operational models. Crowdfunding is a way of raising small amounts of money from different contributors over the internet for different types of projects. There are huge management implications in the spheres of crowdfunding.

Anticipatory Standards Development and Competitive Intelligence

2011 ◽  
Vol 2 (1) ◽  
pp. 16-30 ◽  
Author(s):  
Françoise Bousquet ◽  
Vladislav V. Fomin ◽  
Dominique Drillon
Keyword(s):  
Relevant Information ◽  
Competitive Intelligence ◽  
Global Competition ◽  
Years Of Experience ◽  
World War ◽  
Business Decisions ◽  
The World ◽  
Growing Body ◽  
Standards Development

More and more companies operate today in a worldwide market under conditions of globalization, increased complexity, and competition. In such an environment, business decisions need to be made quickly yet intelligent, substantiated by the most salient and relevant information available. Under the global competition, with a diligent and measured manner, many companies are increasingly treating business like an economic war. Enterprises are methodically monitoring and investigating their competitors, while deploying all the resources they have at their disposal in order to beat their current or future rivals. Competitive Intelligence (CI) has become the ‘latest weapon in the world war of economics’. This paper contributes to the growing body of literature on competitive intelligence by synthesizing knowledge stemming from many years of experience in the standardization arena. The authors aim to show how, in the economic war, engaging in committee-based standards development may be used for winning the competition battle.

Exploring the Spheres of Crowdfunding

2020 ◽  
pp. 1547-1566
Author(s):  
Bernard Owens Imarhiagbe
Keyword(s):  
Service Providers ◽  
Early Stage ◽  
Academic Research ◽  
Relevant Information ◽  
Research Literature ◽  
Policy Framework ◽  
Policy Statement ◽  
The World Bank ◽  
The Subject ◽  
The Uk

This chapter reviews research and policy literatures on the spheres of crowdfunding. It identifies reward-based, donation-based, equity-based and credit-based crowdfunding with a view to collate relevant information to support crowdfunding knowledgebase and further research. As crowdfunding is a new concept in research literature, it is increasing in popularity in social media, business and research communities. Academic research in crowdfunding is limited and the subject is still evolving as a way of access to finance for seed capital, entrepreneurial projects and other early stage projects. Advanced countries in Europe and North America have recognised the relevance of crowdfunding in varying proportion from one country to another for project fundraising. However, the World Bank confirmed that developing countries are at different stages of recognition of crowdfunding in their policy framework. Although the UK financial regulator, Financial Conduct Authority, has produced a policy statement for crowdfunding and approved some service providers such as crowdfunding platforms, it is still interacting with stakeholders and providing guidance to potential entrepreneurs on the operational models. Crowdfunding is a way of raising small amounts of money from different contributors over the internet for different types of projects. There are huge management implications in the spheres of crowdfunding.

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