Accounting Information Environment Research Articles

Environmental accounting information disclosure from the perspective of game theory

Environmental accounting information disclosure from the perspective of game theory

Cross-listing and predation risk in product markets

This study examines the relationship between cross-listing and product market predation risk by using cross-listed firm-level data in both A and H shares. Results investigate that firms which cross-listing in different capital markets could significantly alleviate the threat of predatory from rivals in the product market. Consistent with competitive advantage and information asymmetry hypotheses, the mechanism analysis shows that higher competitive position and better subsequent corporate accounting information environment may lead to lower predation risk for cross-listed firms. Moreover, subsample evidence suggests that cross-listing is more likely to be used as a device to decline predatory threats in countries with incomplete markets with more government intervention, higher judicial civilization, and greater financial development. Cross-listing could also decrease the firms' stock price crash risk in the capital market. Lastly, research findings offer powerful evidence and references to firms in emerging markets attempting to cross-list in other developed markets.

Serial acquirers and stock price crash risk: International evidence

This study investigates the relationship between serial M&A and stock price crash risk. Employing an international sample of 22,140 unique firms from 42 economies between 1989 and 2017, we show that serial acquirers experience higher subsequent crash risk after they initiate serial M&A. Consistent with the bad news hoarding channel, we find that serial M&A are associated with worse subsequent firm-level accounting information environment and poorer operating performance. Moreover, the observed heightened crash risk is more pronounced in countries with opaque information environments or weaker shareholder protection. Our results remain unchanged in several robustness checks addressing endogeneity issues.

Quality Evaluation of Environmental Accounting Information Disclosure of Y Nonferrous Metal Company Based on AHP‐FCE Model

Environmental accounting information disclosure is an important way to achieve the goal of “carbon peak carbon neutrality”, which plays a role in the link between economic development and environmental protection. Select Y Non‐Ferrous Metal Company for case analysis, use the AHP‐FCE model for comprehensive evaluation of environmental accounting information quality of the company, which use analytic hierarchy process to determine the evaluation factors and factors of weight value, and then use fuzzy synthesis method for multi‐level fuzzy comprehensive evaluation. The results show that as a state‐owned enterprise, the quality level of Y company’s environmental accounting information disclosure is in the “general” level in the past 5 years, and the intensity of government environmental regulation will promote the quality of the company’s environmental accounting information disclosure. Non‐ferrous metal companies should enhance the concept of environmental protection, strengthen the awareness of environmental accounting information disclosure, promote technological innovation in energy conservation and emission reduction, and reduce carbon emission intensity. The government should also provide a favorable social environment and policy support for the non‐ferrous metal industry to implement environmental accounting information disclosure, formulate relevant laws and regulations, and continuously strengthen supervision.

Internet of things adoption, earnings management, and resource allocation efficiency

ABSTRACT This study aims at addressing the economic consequences of the adoption of the Internet of Things (IoT) in China. As the fundamental technology for the next-generation information technology, IoT is supposed to have the most profound and comprehensive influence on both business operation and accounting information environment. By using a difference-in-differences method, our findings focusing on earnings management activities in China-listed firms around the adoption of IoT confirm the conjecture that such technology effectively deters accrual-based and real earnings management. The results are also robust to dynamic analysis, instrumental variable approach, PSM analysis, placebo tests and other robustness tests. Furthermore, we also document that the reduction in real earnings management due to IoT adoption has positive implications on the capital market, financing and investment activities and long-term operational efficiency. Taken together, we reveal the promising prospects of IoT adoption on corporate accounting information and establish the association between information technology and efficiency of resource allocation.

Disclosure of Community Development Cost and Its Impact on Turnover of Listed Manufacturing

The disclosure policies regarding environmental accounting information on the annual financial report of firms became a significant and influence element to preserve the environment globally. Environmental accounting disclosure contributes in increasing the environment consciousness for organizations, and also helps in reducing harmful impacts of organization processes especially on environment and on society in general. This paper examines the impact of disclosure on community development cost on turnover of listed manufacturing firms in Nigeria. To produce valid empirical results, preliminary tests such as normality, serial correlation, heteroscedasticity, multicollinearity were conducted on research data. In addition, the Analysis of variance ANOVA was done to examine the importance of the predictors and finally regression analysis was conducted. The OLS and GLS regression analysis was conducted to show the effects of the predictor on financial performance as represented by sales revenue . The results strongly showed that environmental accounting information disclosure has a significant impact on the financial performance of quoted manufacturing firms as represented by sales revenue. In view of the findings, the researcher concludes that effective disclosure and reporting of environmental information in the annual report positively influences financial performance. The researcher recommends that, firms should continue to disclose more information on environmental related issues due to the inherent advantage derivable there from, while firms that are not disclosing their environmental activities should be encouraged to do so in view of the fact that they may be losing the patronage of ethical stakeholders who may be tempted to regard them as not environmentally friendly firms.

Determinants of Corporate Environmental Accounting Disclosure of Oil and Gas Firms in Nigeria

This study examines the cognitive factors that determine corporate environmental accounting disclosures (CEAD). The population consists of all the fourteen (14) listed oil and gas firms in Nigeria. Panel data were obtained from the annual reports and accounts of the firms for the period of 2010 to 2019. A correlational research design was used and the data were analyzed using the Generalized Least Square regression (random model). The study found that firm size; leverage and multi-national companies have positive significant influence on the CEAD of listed oil and gas firms in Nigeria. Whilst firm growth has a negative significant relationship with the CEAD of listed oil and gas firms in Nigeria. It is concluded that larger firms and multi-national companies in the Nigerian oil and gas sector have high likelihood of disclosing environmental accounting information. Thus, it is recommended that the management of listed oil and gas firms in Nigeria should expand their size by acquiring more assets, maintain a consistent growth by exploring more opportunities while improving their gearing ratio to ensure a stable balance between the proportion of debt and assets. It therefore, highlighted the need for Securities and Exchange Commission (SEC) to come up with enabling laws geared towards ensuring that listed oil and gas firms in Nigeria embrace CEAD. Furthermore, Global Environmental Disclosure Index (GEI) should be considered as the most acceptable yardstick for measuring environmental accounting by the listed oil and gas firms in Nigeria.

Evironmental Accounting Disclosure And Financial Sistainability In Listed Negerian Manufacturing Firms

With the globalization and dynamic nature of the competitive market environment, manufacturing of quality products at affordable prices no longer guarantee sustainable financial performance, hence firms are now running to sustainability measures to remain financially sustainable. However, manufacturing firms in Nigeria has failed to sustain their performance. Thus, the study was initiated to evaluate the effect of environmental accounting disclosures on financial sustainability of listed Nigerian manufacturing firms. Ex-post facto research design using annual reports of 10 listed manufacturing firms was adopted to achieve the objective of the study. Data was measured using multiple regression analysis. The study revealed that environmental accounting disclosures has insignificant but positive effect on financial sustainability of listed manufacturing firms in Nigeria (Adj. R2 = 0.0468, F- statistics = 1.9721, P-value = 0.0899). With the introduction of the moderating effect of firm size, environmental accounting disclosures showed insignificant but positive effect on financial sustainability of listed manufacturing firms in Nigeria (Adj. R2 = 0.0489, F- statistics = 1.8487, P-value = 0.0981). Thus, the study concluded that environmental accounting disclosures do not have positive but insignificant effect on financial sustainability. It is recommended that the accounting profession should develop standards for reporting environmental accounting information by business entities. At the firm level, there should be voluntary disclosures of environmental accounting information.

Бухгалтерська інформаційна система в умовах цифрової трансформації

Modern theory and accounting practice are formed under the influence of many factors, including economic integration, digitalization of communication and management processes, expansion of requirements for the information content of financial and non-financial reporting. In this regard, the purpose of the article is to disclose the structure of the accounting information system, the interdependence of its components, and determine the factors of its modernization in the context of the digital transformation of the socio-economic environment. The structure of the accounting information system was disclosed based on the identification of components that ensure the integration of the internal accounting systems of individual economic entities with the general accounting system. The modeling of the relationship of the components of the accounting information system with other information management systems of economic entities has been carried out. Information systems used to manage organizations were classified. It has been proven that an accounting information system is irreplaceable and plays a fundamental role in the management system. The improvement of information technologies determines the constant modernization of accounting and reporting, the formation of a qualitatively new accounting information environment (cloud accounting, blockchain, network accounting, etc.). Prospects for the further development of enterprise management are associated with the integration processes between the components of the accounting information system. Deepening the digitalization of accounting processes will expand the possibilities of analysis, planning, and forecasting at the management level of an enterprise, industry, and state economy.

Factors Affecting the Implementation of Environmental Accounting by Construction Companies Listed on the Ho Chi Minh Stock Exchange

The study investigates Environmental Accounting Information (EAI) as well as factors affecting the environmental accounting implementation by the construction firms listed on the Ho Chi Minh Stock Exchange (HOSE), Vietnam. After eliminating seven enterprises that lacked data, the authors selected a sample of 112 observations from 28 construction businesses listed on the Ho Chi Minh Stock Exchange in the period 2015-2018. This study uses research data extracted from the companies' annual reports. Then, the data are analyzed by Stata 13 software, including descriptive statistics, correlation coefficient analysis, regression analysis of table data using estimation methods (Pooled OLS, REM, FEM), and testing of model defects (heteroskedasticity test, multicollinearity test, autocorrelation test). The results show that construction companies listed on the Ho Chi Minh Stock Exchange have out factors affecting the environmental accounting implementation by these enterprises, including independent audit firm and listed time. While the independent auditor firm has a positive and significant impact, the listed time has a negative influence. In addition, our study has confirmed the role of institutional factors affecting the disclosure level of EAI on the implementation of environmental accounting by construction enterprises listed on the Ho Chi Minh Stock Exchange.

Financial reporting quality and peer group selection

Similarity between a firm and a potential peer firm with respect to important economic characteristics is a first-order criterion to select peer firms. As economic characteristics are often captured through information disclosed in publicly available financial reports, financial reporting quality (FRQ) of a potential peer firm could influence peer group selection. We hypothesize that potential peer firms with higher FRQ are more likely to be included in the peer group of another firm because the reduced information asymmetry and lower reputation costs connected to higher FRQ of potential peer firms can influence the board of directors’ evaluation of similarity between the firm and a potential peer firm. Analyzing the peer groups used by S&P 900 firms for benchmarking executive compensation packages, we find support for our hypothesis and the channels we specify in our theory. Our results are robust across several measures for FRQ, albeit they are somewhat weaker when FRQ is measured by means of internal control deficiencies, fraud, and AAERs. Using alternative specifications to define the potential peer group and controlling for corporate governance strength does not change our inferences and our results also hold when we control for the presence of the potential peer firm in the peer group of the previous year. This study contributes to previous research on peer groups by examining the accounting information environment around peer group composition.

Corporate governance, accounting information environment and investment-cash flow sensitivity

PurposeThe purpose of this paper is to test the effects of antitakeover protection on investment-cash flow sensitivity and whether these effects are moderated by firms’ accounting information environment and agency problems.Design/methodology/approachTo test the effects of agency problems, the authors use the passage of second-generation antitakeover laws as the testing ground, which is a pseudo-natural experiment that is widely used in the accounting, finance and economics literature (e.g. Armstrong et al., 2012; Bertrand and Mullainathan, 2003).FindingsThe authors’ analysis shows that investment-cash flow sensitivity is greater when managers are insulated from takeovers. The authors’ results also demonstrate that the effects of the passage of antitakeover laws on investment-cash flow sensitivity are greater when firms’ accounting information environment is poor, which is measured by fewer analysts following and higher analyst forecast dispersion. The authors also show that the effects of the passage of antitakeover laws on investment-cash flow sensitivity are greater when firms have severe agency problems, which are measured by more free cash flow.Originality/valueThe authors’ research extends the empirical accounting literature about the effects of corporate governance and accounting information environment on firms’ operating and financial decisions.

Technology executives in the changing accounting information environment: Impact of IFRS adoption on CIO compensation

Accounting regulatory changes that affect the information technology (IT) infrastructure of firms have prompted Chief Information Officers (CIOs) to take the lead in aligning IT changes with new reporting requirements. This study investigates the associations between the mandatory adoption of International Financial Reporting Standards (IFRS) and CIO compensation. We find a significant increase in CIO compensation in the post-IFRS period, which is higher in non-IT firms than in IT firms. Moreover, pay is at a premium for CIOs equipped with more educational background in business. We discuss the implications of our study and offer suggestions for future research.

Empirical Study for Influencing Factors on Environmental Accounting Information Disclosure in Chemical Industry

In the cyclic and low-carbon economic environment, it is of great significance for the sustainable development of the whole society to strengthen the study for environmental accounting (EA) information disclosure. Now, the number of enterprises for EA information disclosure among Chinese chemical enterprises presents the continuously increasing trend, But, as a whole, the enterprises have lower EA information disclosure level, and the large gap still exists between these enterprises in terms of EA information disclosure level. By the empirical analysis of multiple linear regression (MLR), it can be found that the enterprise size, Rate of Return on Common Stockholders’ Equity, debt level, state-owned holding nature of the enterprise have positive correlation with EC information disclosure level. The proportion of independent directors in enterprise and EC information disclosure have positive correlation, but without passing the test of significance, mainly because of the incomplete system of independent directors in China.

On Information Disclosure of Enterprise Environmental Accounting in China

China is facing severe environmental problems nowadays which are closely related to the development of enterprises. As public’s awareness of environmental protection continuously enhances, China starts to require companies to disclose environmental accounting information, not only allowing more fully assess the comprehensive benefits and risks of enterprises but also laying fundamental foundation for how to coordinate the relationship between economic development and environmental protection. However, the disclosure starts late and develops sluggishly of domestic environmental accounting and environmental information. Therefore, the paper has important and practical significance to perfect and develop the information disclosure of enterprise environmental accounting and accelerate economic sustainable development as well as protect the environment. This paper analyzes the present situation and existing problems of information disclosure of domestic enterprise environmental accounting and puts forward some countermeasures and suggestions by drawing lessons from environmental information disclosure in developed countries.

Technology Executives in the Changing Accounting Information Environment: Impact of IFRS Adoption on CIO Compensation

Accounting regulatory changes that affect the information technology (IT) infrastructure of firms have prompted Chief Information Officers (CIOs) to take the lead in aligning IT changes with new reporting requirements. This study investigates the associations between the mandatory adoption of International Financial Reporting Standards (IFRS), one significant global accounting reform, and CIO compensation. We show a significant increase in CIO compensation in the post-IFRS period, which is higher in non-IT firms than in IT firms. Moreover, pay is at a premium for CIOs equipped with business education. We discuss the implications of our research and offer suggestions for future research.

Accounting Information and Corporate Risk-Taking

We examine how accounting information influences corporate risk-taking. We predict that transparent accounting disclosure can influence corporate risk-taking by enabling managers to better evaluate risks and by enabling investors to better monitor managers' risk appetite. We test this prediction by orchestrating the mandatory adoption of IFRS around the world, enforcement reforms around the world, and the introduction of quarterly reporting in the European Union as exogenous shocks to firms’ accounting information environment, which made disclosure more relevant and comparable, reliable as well as more timely. Our findings provide evidence that these changes in the accounting information environment are associated with a decline in corporate risk-taking. For firms subject to enforcement reforms this effect is unconditional. For firms’ adoption of IFRS or quarterly reporting, this effect is conditional upon whether these reforms are strongly enforced. We also document that the decline in risk-taking after the changes in the accounting information environment is associated with an increase in total shareholder return.

Before and after the Promulgation of the New Environmental Protection Law, Enterprise Environment Accounting Comparison Taking Open Cast Coal Mining Enterprises as an Example--in Inner Mongolia

18 plenary sessions of party stated that China should adhere to green development and must adhere to basic State policy of conserving resources and protecting environment. Meanwhile, we should increase intensity of environmental governance to improve environmental quality as core and adopt most stringent environmental protection system. New Environmental Protection Law amended latterly (hereafter referred to as New Environmental Protection Law) has came into force officially on 1st, Jan, 2015. The law early in introduction was labeled the most stringent, long teeth and exerted an influence on all walks of life. The disclosure of Environmental accounting information has become a social focus. The article contrasts and analyzes enterprises environmental accounting information before and after promulgation of New Environment Protection Law, taking Inner Mongolia Huolinhe opencast coal Limited by Share Ltd as an example, in aim to discover expects that have influence on enterprises after implementation of New Environment Protection Law and further put forward implementation proposal.

The Joint Influence of Evaluation Mode and Benchmark Signal on Environmental Accounting-Relevant Decisions

The assessment of environmental alternatives occurs in one of two evaluation modes: joint (JE) or separate (SE) evaluation. This study explores the combined influence of evaluation mode and the attractiveness of environmental alternatives on decisions based on non-financial environmental accounting information. General Evaluability Theory [GET; Hsee, C. K., and J. A. Zhang. 2010. “General Evaluability Theory.” Perspectives on Psychological Science 5: 343–355] predicts greater decision dependence on benchmark performance signals received in SE than JE mode. However, GET is silent on the influence of the alternatives’ attractiveness on evaluations, e.g. when available environmental alternatives all perform either superior or inferior to a benchmark case. To address this condition, we propose supplementing GET with the ‘negativity bias’, which predicts that negative signals (e.g. worse than benchmark values) receive more decision weight compared to positive signals (e.g. better than benchmark values) [Rozin, P., and E. B. Royzman. 2001. “Negativity Bias, Negativity Dominance, and Contagion.” Personality and Social Psychology Review 5 (4): 296–320]. Accordingly, this study's experiment (n = 77) manipulated evaluation mode (between-participants; JE/SE) and the alternatives’ performances relative to a benchmark (within-participants; available alternatives all better, or worse, than benchmark). Participants made investment allocations (as a proxy for performance ratings) to available factories based on factory environmental accounting performance. Participants invested less (more) in factories when factory performance was inferior (superior) to benchmarks. However, consistent with a combined GET and negativity bias prediction, this difference was more (less) pronounced in SE (JE) mode. Overall, results suggest that joining GET with a negativity bias accurately captures the joint influences of evaluation mode and benchmark signals on decisions based upon environmental accounting information. Further, decision-makers seem to adopt an asymmetric decision heuristic in evaluating environmental accounting information. Specifically, they avoid increasing decision weight on bad environmental performance information in JE compared to SE mode, but decision weights are indifferent across evaluation mode for good environmental performance information.

Mining Enterprises Rent-Seeking of Environmental Accounting Information Disclosure

Environmental resources are typical of public resources. However, the environmental resources allocation process would generate rent-seeking problems easily. Environmental accounting information disclosure for rent-seeking is the most serious one in various types of rent-seeking behavior. This paper selects mining enterprises as rent-seeking study which seeks to provide a review of the current state of rent-seeking in environmental accounting of mining enterprises research. Then it illustrates the characteristics and types of environmental accounting information disclosure problems in our country. It is to explore the perception that environmental accounting information disclosure plays an important role in accounting for sustainable development. The purpose of this article is to introduce certain ideas which are identifying the underlying causes of environmental accounting information disclosure and maturing in the systems sciences for consideration by environmental managers and government officer.