Accounting Literature Research Articles

Hype or Hope: Digital Technologies in Auditing Process

Manuscript type: Research paper Research aims: This study aims to examine how technological,organisational and environmental (TOE) factors affect digital technologies’ utilisation and its impact on auditors’ performance. Design/Methodology/Approach: A survey was conducted on 4 large and non-large companies in Jordan, and data were retrieved from 168 external auditors. The partial least squares (PLS-3) structural equations modeling was used to analyse data and to test the proposed model. Research findings: Results show that the TOE factors have a significant and positive effect on digital technologies utilisation. It also appears to enhance auditors’ performance. Theoretical contribution/Originality: This study fills a gap in the literature of accounting by empirically assessing how digital technologies utilisation impacts the performance of auditors in Jordan. It also expands on previous literature by determining how the TOE factors affect such technology usage in the auditing process. This study also has a methodological contribution in the form of measuring the client’s complexity of IT system from a different perspective, which is from the external auditor’s perspective. Practitioner/Policy implications: This study is expected to help regulators and audit companies to update their policies and regulations so that auditors are trained in using advanced technologies, and in protecting the security of accounting information. In this regard, efficient auditors will be able to protect investors, thereby creating an attractive environment for investment which can boost economic growth. Research limitation/Implications: This study is based on the Jordanian context. There was no comparison made with developing or developed countries, hence no distinctions can be detected. Future studies should focus on looking at other countries so as to provide new insights into the auditing profession, and specifically, auditors’ performance. Finally, this study is a practical guide for external and internal auditors who have not considered digital technologies, in the context of Jordan. Future studies may thus consider internal auditors and their relationship with external auditors in digital technologies utilisation.

The strategic significance of the CICPA in the making of a Chinese home-grown public accounting profession

This paper provides a detailed, longitudinal study of the role and strategies of the Chinese Institute of Certified Public Accountants (CICPA) in building a Chinese home-grown public accounting profession since the late 1980s. Drawing on previously unaccessed archive materials and a series of interviews with senior representatives of the Chinese public accounting profession, this paper reveals a more nuanced empirical story of professional accounting development in China, in which the CICPA has had more strategic influence than is currently represented in the extant accounting literature. While the CICPA’s position vis-à-vis the state is a fragile one and necessitates on various occasions following specific state requirements and instructions, it has still been able to pursue its strategic intention of securing a nationalistic approach to professional accounting development. This paper analyses the shifting nature of the CICPA’s capacity for agency across three thematic areas of activities, including the CICPA’s efforts to counter the power and influence of the Big Four in China, promote the growth of indigenous accounting firms and support the establishment of the Communist Party branches in accounting firms.

The influence of second language learning motivation on students' understandability of textbooks

PurposeThe purpose of this study is to examine the relationship between the understandability of an accounting textbooks written in English and the language learning motivation of international students. Previous research assumed that native speakers of a language and second-language speakers would understand a given accounting text similarly and little attempt has been made to ascertain any individual differences in users’ capacity to read and understand a foreign language.Design/methodology/approachThe 107 participants in this study comprised of full-time English as a Second Language postgraduate commerce students studying at a major Australian university. The authors used two-part questionnaire to examine the motivation of participants and the understandability of an accounting textbook using the Cloze test.FindingsThe results suggest that most international students have difficulty in understanding the textbook narratives used in this study. Furthermore, the results show that students’ motivation to learn a foreign language impacts on the understandability of an accounting textbook.Practical implicationsThis study will help the educators, textbook publishers and students to understand the needs of ESL students. It is expected to provide guidance for authors and instructors to enhance the effectiveness of the accounting courses.Originality/valueThe accounting literature shows that there have been efforts by accounting researchers to measure the understandability of accounting texts or narratives. This research provided valuable insights of the learning challenges of international students and valuable recommendations to educators and publishers to enhance the delivery.

Operationalising dialogic accounting education through praxis and social and environmental accounting: exploring student perspectives

ABSTRACT Higher accounting education tends to be monologic and uphold a ‘hidden curriculum’ based on neoliberal and neoclassical economic assumptions that prioritise financial stakeholders’ concerns and profit maximisation. This informs what is regarded as teachable knowledge in accounting education, and how this is taught. Critical accounting researchers have urged educators/researchers to adopt dialogic pedagogical approaches to reimagine how accounting can facilitate democratic dialogue about the range of practices it covers; expose students to divergent socio-political perspectives on accountability; and promote critical reflection and transform their understandings of their lived realities. Our research is situated within the critical Social and Environmental Accounting (SEA) literature and the potential of a dialogic accounting pedagogy. Through student interviews and reflections from educators, we explore the design and implementation of a third-year accounting course containing a SEA component, and its potential for achieving the aspirations of dialogic pedagogy, and how this can be developed and implemented.

An ecological critique of accounting: The circular economy and COVID-19

Given the increasing participation of accounting technologies in purported solutions to deal with the ecological crisis, we address two areas where a growing accounting literature is emerging, the circular economy and the COVID-19 pandemic, testing some ideas to inform an ecological critique of accounting that could help us ward off the “dreams of escaping” (Latour, 2018). We suggest that the conceptual separation between nature and society renders accounting for the circular economy and the COVID-19 pandemic problematic. A critical account of the circular economy might problematize things like the whole economic system’s physical scale, spatial and temporal system boundaries, consumer culture, and the inherent politics of the circular economy. We also suggest that a critical account of the COVID-19 pandemic needs to take on board the participation of accounting representations in the construction of particular narratives about the virus. In particular, calculations of the costs caused by COVID-19 need to be connected to the ecological value of viruses to illustrate how the social and the biological worlds are inextricably connected. In both cases, we suggest critical accounting researchers need to be actively involved in discussions about how valuation constructs narratives about resource or waste, with significant implications on how we conceive the relationship between humanity and the environment.

BUILDING MASTERY OF ACCOUNTING LITERATURE THROUGH REFERENCE MANAGEMENT SOFTWARE

The rapid growth of accounting literature in the digital age is a challenge in studying accounting literature. Mastery of scientific literature is an ability that every student wants to have. Responding to the rapid development of accounting literacy, optimizing the use of reference management software should become a habit for students to answer the challenges of the rapid growth of the accounting literature. This article describes a combination method of utilizing a reference management program Mendeley into student lecture courses to help students master the rapidly evolving accounting literature using digital resources. The use of Mendeley software also helps students form annotation skills in compiling citation entries that are comprehensive and effective

What is the Optimal Dose, Fractionation and Volume for Bladder Radiotherapy?

External beam radiotherapy (EBRT), as part of a trimodality approach, is an attractive bladder-preserving alternative to radical cystectomy. Several EBRT regimens with different treatment volumes have been described with similar tumour control and, so far, clear recommendations on the optimal radiotherapy regimen and treatment volume are lacking. The current review summarises EBRT literature on dose prescription, fractionation as well as treatment volume in order to guide clinicians in their daily practice when treating patients with muscle-invasive bladder cancer. Taking into account literature on repopulation, continuous-course radiotherapy can be used safely in daily practice where a split-course should only be reserved for those patients who are fit enough to undergo a radical cystectomy in case of a poor early response. A recent meta-analysis has proven that hypofractionated radiotherapy is superior to conventional radiotherapy with regards to invasive locoregional control with similar toxicity profiles. In the absence of node-positive disease, the target volume can be restricted to the bladder. In order to compensate for organ motion, very large margins need to be applied in the absence of image-guided radiotherapy (IGRT). Therefore, the use of IGRT or an adaptive approach is recommended. Based on the available literature, one can conclude that moderate hypofractionated radiotherapy to a dose of 55 Gy in 20 fractions to the bladder only, delivered with IGRT, can be considered standard of care for patients with node-negative invasive bladder cancer.

A worldwide sectorial analysis of sustainability reporting and its impact on firm performance

ABSTRACT This study investigates the worldwide impact of sustainability reporting on firms' performance across seven different sectors. Using data culled from 3,000 firms in 80 different countries for ten years from 2008 to 2017 (cumulatively 23,738 observations). The findings elicited from the empirical results demonstrate that there are differences in the impact of sustainability reporting (ESG) on firm's operational performance (ROA), financial performance (ROE) and market performance (TQ) between the seven sectors. Inasmuch as it contributes to the literature of sustainability accounting by a systematic depiction of cross-sectorial ESG reporting, this study establishes a benchmark to guide to firms wishing to adopt sustainability reporting. Moreover, in including macroeconomic variables, the study provides a fresh perspective to the literature of the on the economic implications of sustainability disclosure.

Management Accounting Practices on Organizational Performance Mediated by Rationalized Managerial Decisions

The study aimed to examine the influence of management accounting practices on organizational performance with the mediating effect of rationalizing managerial decisions of the Nepalese listed manufacturing companies. It is based on survey data from 221 respondents from the seven listed manufacturing companies, whose shares are traded regularly in Nepal's secondary market. The data were analyzed using confirmatory factor analysis, path analysis, and structural equation modeling to dissect and decipher details. The study's findings indicated that management accounting practices had no significant impact on organizational performance, and there was no mediating role of rationalized managerial decisions. However, rationalized managerial decisions themselves had a positive and significant impact on organizational performance. The study was limited to capturing only Nepal's listed manufacturing companies and applied one survey technique method with a few standard questionnaires to collect data. Different sectors and higher sample sizes may be considered to improve the generalizability of the analysis. The authors hoped that it contributes to the existing literature in management accounting and organizational performance. It may attract the concerned personnel's attention towards the management accounting practices to make effective managerial decisions and better organizational efficiency.

Investigation of Accounting Ethics Effects on Financial Report Quality & Decision Making: Evidence from Kabul-based Logistic Corporations

This study examines accounting ethics' impact on financial report quality and decision-making Kabul based logistic corporations in Afghanistan. Accounting ethics is such an important aspect of the field since accounting ethics is a matter of rules and values. Accounting ethics is mainly an area of applied ethics and is part of corporate ethics and human ethics, financial reporting consistency is a mindset, not a collection of particular activities. For making a decision, a good manager needs to be practical but confident when executing it. Unfortunately, some know-how, at the right moment, to switch from realism to optimism. There for the study examines the effect of accounting ethics on financial report quality and decision making. Totally 30 valid questionnaires, which were collected through Google Form, were analyzed by SPSS 24. To examine the suggested hypotheses, correlation analysis, and linear regression analysis were employed. For examining the reliability of adopted scales, Cronbach's Alpha was used. The study results demonstrated that accounting ethics significantly positively impact financial report quality and decision-making in Kabul-based logistic corporations. This study's findings fill the gap in Afghanistan's accounting literature by empirically investigating accounting ethics' impact on financial report quality and decision-making Kabul based logistic corporations.

Managers' subtle resistance to neoliberal reforms through and by means of management accounting

PurposeWithin societies in the 21st century, individuals who are embedded in a controlled context that impedes their political actions deal with the tensions they are experiencing through attempts at resistance. Several studies that examine individual infrapolitics in organizations explain how the subtle mix of compliance and resistance are constructed at the level of individual identity in a complex mechanism that both questions the system and strengthens it. However, the interplay between managers' identities and management accounting tools in this process is a topic that deserves more investigation. The aim of this article is to understand how the subtle resistance of individuals constructs neoliberal reforms through management accounting (MA).Design/methodology/approachThe authors conducted a case study on three health and social organizations two years after major reforms were implemented in the health and social services sector in Québec, a province of Canada. These reforms were part of a new public management dynamic and involved the implementation of accounting tools, here referred to as New Public Management Accounting (NPMA) tools.FindingsThe authors’ findings show how managers participate in reforms, at the same time as attempt to stem the dehumanization they generate. Managers engage in subtly resisting, for themselves and for their field professional teams, the dehumanization and identity destruction that arises from the reforms. NPMA tools are central to this process, since managers question the reforms through NPMA tools and use them to resist creatively. However, their subtle resistance can lead to the strengthening of the neoliberal dynamic of the reform.Originality/valueThe authors contribute to both the literature of infrapolitics and MA by showing the role of NPMA tools in the construction of subtle resistance. Their article enriches the MA literature by characterizing the subtle forms of resistance and showing how managers engage in creative resistance by using the managerial potential flexibility of NPMA tools. The article also outlines how NPMA tools play a role in the dialectic process of resistance, since they aid managers in resisting reform-induced dehumanization but also support managers in reinventing and reinforcing what they are trying to fight. The authors’ study also illustrates the dialectic dynamic of resistance through NPMA in all its dimensions: discursive, material and symbolic. Finally, the authors contribute to management accounting literature by showing that NPMA tools are not only the objects of neoliberalization but also the support of backstage resistance to neoliberalization.

Social Sustainability in Fashion Supply Chains—Understanding Social Standard Implementation Failures in Vietnam and Indonesia Using Agency Theory

This paper explores why and how dominant international social standards used in the fashion industry are prone to implementation failures. A qualitative multiple-case study method was conducted, using purposive sampling to select 13 apparel supply chain actors. Data were collected through on-site semi-structured face-to-face interviews. The findings of the study are interpreted by using core tenets of agency theory. The case study findings clearly highlight why and how multi-tier apparel supply chains fail to implement social standards effectively. As a consequence of substantial goal conflicts and information asymmetries, sourcing agents and suppliers are driven to perform opportunistic behaviors in form of hidden characteristics, hidden intentions, and hidden actions, which significantly harm social standards. Fashion retailers need to empower their corporate social responsibility (CSR) departments by awarding an integrative role to sourcing decisions. Moreover, accurate calculation of orders, risk sharing, cost sharing, price premiums, and especially guaranteed order continuity for social compliance are critical to reduce opportunistic behaviors upstream of the supply chain. The development of social standards is highly suggested, e.g., by including novel metrics such as the assessment of buying practices or the evaluation of capacity planning at factories and the strict inclusion of subcontractors’ social performances. This paper presents evidence from multiple Vietnamese and Indonesian cases involving sourcing agents as well as Tier 1 and Tier 2 suppliers on a highly sensitive topic. With the development of the conceptual framework and the formulation of seven related novel propositions, this paper unveils the ineffectiveness of social standards, offers guidance for practitioners, and contributes to the neglected social dimension in sustainable supply chain management research and accountability literature.

Corporate governance and disclosure: purpose, scope, and limitations

Corporate governance has been the subject of dozens, if not hundreds, of books and articles in legal, accounting, finance, and economic literature since at least 1932. Disclosure has also been the subject of dozens, if not hundreds, of books and articles in legal, accounting, finance, and economic literature, but interest in the subject is a more recent phenomenon. It is important therefore to understand the purpose, scope, limitations, and meaning of corporate governance. It is equally important to understand the purpose, scope, and limitations of the effective transparency of information, i.e., disclosure, for publicly listed companies, including what information is disclosed, how it is disclosed, and why it is disclosed. Therefore, this paper examines the purpose, scope, and limitations of corporate governance and disclosure including what, how, and why information about publicly listed companies is disclosed with the intent of providing a better understanding of corporate governance and disclosure and directions for future research.

The contribution of robots to productivity growth in 30 OECD countries over 1975–2019

Using a new and original database, our paper contributes to the growth accounting literature by singling out the contribution of robots through two channels: capital deepening and TFP. The contribution of robots to productivity growth through capital deepening and TFP appears to have been significant in Germany and Japan in the sub-period 1975–1995 and in several Eastern European countries in 2005–2019. However, robotization does not appear to be the source of a significant revival in productivity.

Corporate Board Committees and Corporate Outcomes: An International Systematic Literature Review and Agenda for Future Research

This paper comprehensively reviews the current body of international accounting literature regarding advisory/monitoring committees and corporate outcomes. Specifically, it synthesizes, appraises, and extends current knowledge on the (a) theoretical (i.e., economic, accounting/corporate governance, sociological and socio-psychological) perspectives and (b) empirical evidence of the observable and less visible attributes at both the individual and committee levels and their link with a wide range (financial/non-financial) of corporate outcomes. Using the systematic literature review method, 304 articles from 59 journals in the fields of accounting and finance that were published between January 1992 and December 2018 are reviewed. The main findings are as follows. First and theoretically, agency theory is the most dominant applied theory/studies with no application of theory at all (descriptive), while the application of integrated theoretical frameworks is lacking in the reviewed articles. Secondly, the existing empirical evidence focusses excessively on (a) monitoring instead of advisory committees and (b) observable rather than less visible committee attributes. Thirdly, scarcity of cross-country studies along with methodological limitations relating to measurement inconsistencies, insufficiency of variables, and dominance of quantitative studies, among others, are identified. Finally, promising future research avenues are outlined.

Non‐profit theatre managers as multi‐stakeholder managers: The plate‐spinning of accountability

AbstractThis exploratory study identifies that more can be understood about how accountability operates within an increasingly complex non‐profit environment by applying stakeholder theory to managers and their decision‐making in non‐profit theatre organisations (NPTOs). On the surface, this may appear to be ground already covered. Previous research has explored the challenges of achieving more holistic accountability in the face of dominant stakeholders. Approaches have been proposed to increase efficiency, effectiveness and transparency. Less is known about how individual managers respond to competing accountabilities in decision‐making and what factors influence their attention to stakeholder interests. NPTOs operate in both the non‐profit and cultural industries sectors and, as such, are an interesting site to investigate accountability complexity in managerial decision‐making. However, NPTOs (and arts organisations generally) feature little in non‐profit and social accountability research. Particular features of NPTOs amplify the challenges of a multi‐stakeholder environment in discharging accountability. These include artistic mission beyond production/distribution; blended business models; policy‐driven leadership rhetoric; the prevalence of interorganisational collaboration; and a significantly freelance workforce. This study argues that NPTOs are the vanguard of changes in contemporary non‐profit management and their study offers new insights to problems associated with practising accountability within such multi‐stakeholder complexity. By drawing on creative non‐profit organisations, for example NPTOs, this study introduces new knowledge to existing non‐profit and social accountability literatures. Based on transdisciplinary research into perceived inter‐relationships between NPTO managers and stakeholder groups, this study proposes NPTO managers are engaged in a balancing or ‘plate‐spinning’ act of accountability, influenced by dominant stakeholders, and an interdependent triple logic in their operations. They negotiate ambiguous competing expectations by deploying self‐interest and ambiguity, with high potential for managerial paralysis and trade‐off. Recommendations arising include de‐emphasis of efficiency/effectiveness and increased attention to complex multi‐stakeholder accountability beyond current approaches. In addition, it suggests further research into NPTOs and arts organisations could yield additional knowledge in the study of non‐profit accountability.

Coming in from the Cold: A Longitudinal Analysis of SDG Reporting Practices by Spanish Listed Companies Since the Approval of the 2030 Agenda

Despite the apparent commitment of large Spanish corporations to the SDGs, information about their documented contribution to the 2030 Agenda is still scarce. This article aims to explore this gap by investigating the extent to which Spanish listed companies have been reporting on the SDGs since the approval of the 2030 Agenda. The paper contributes to the country-level analysis of SDG reporting by performing a longitudinal analysis over the 4-year period encompassing 2016 to 2019. It contributes to management science by assessing Corporate Sustainability performance through adherence to the SDGs and testing what the facilitators of SDG reporting have been during the first 4 years since the adoption of the 2030 Agenda. Findings reveal a low commitment of Spanish listed companies to sustainability reporting. Nevertheless, they also uncover how those companies that publish non-financial reports are increasingly reporting on the SDGs. Additionally, there is also a growing tendency among CEOs to mention the SDGs in their letters to stakeholders. Furthermore, a positive link is established between the adoption of GRI reporting standards or being a signatory of the UN Global Compact and SDG reporting. Similarly, those companies that publish Integrated Reports are more likely to consider the SDGs in their disclosures than those that publish Standalone Reports or Annual Reports. Nonetheless, there is a growing tendency to gravitate from producing Integrated Reports to producing Annual Reports. Owing to the breadth of these results and their relevance to academics and practitioners alike, this study can help build future evidence-based accountability literature and policy on the SDGs at the Spanish and European levels.

The influence of opportunistic capital structure disclosure in international financial reporting on nonprofessional investors

International Financial Reporting Standards (IFRS) promote participation in a global capital market by providing investors a basis to compare foreign and domestic firms’ investment worthiness. Nonprofessional investors, who may lack the necessary sophistication, knowledge, and skill to differentiate firms across multiple reporting regimes, should particularly benefit from readily comparable financial statement information. However, the capital disclosure requirements of IFRS afford opportunistic managers an opening to mislead investors. Through a controlled experiment we observe that an ‘optimized’ disclosure of capital structure leads nonprofessional investors to ascribe higher valuations to a firm’s shares compared to capital structure derived from the balance sheet. We also find nonprofessional investors’ stock purchasing decisions respond to the higher firm valuations. Further analysis identifies formal pathways that enable the optimized disclosure’s influence on investor decision-making. We also find cautionary guidance advising of potential opportunistic management disclosure to be ineffective. Our study contributes to the international accounting literature and has important implications for investors, auditors, and standard setters in the international financial reporting community.

Accounting for intangibles and intellectual capital: a literature review from 2000 to 2020

AbstractThis article presents the results of a systematic literature review on intangibles and intellectual capital (IC) focusing on articles published in the top 20 accounting journals between 2000 and 2020. We find that North American accounting scholarship during this period has predominantly focused on identifiable intangibles and how these appear in the balance sheet. Much less attention has been given to management issues and IC, even though these issues are more common in European and Australian accounting literature. By evaluating recent developments and trends, this contribution aims at identifying promising avenues for future research endeavours.

Is Neuroaccounting Taking a Place on the Stage? A Review of the Influence of Neuroscience on Accounting Research

Insights and technologies from neuroscience research can help accounting scholars more deeply understand how decision-makers physically and cognitively process and react to accounting information and controls. We conduct a systematic review of accounting literature to evaluate whether and how accounting scholars are incorporating neuroscience research into their work and building a field of ‘neuroaccounting.’ To do so, we identify literature that relates accounting research questions to neuroscience research, addresses accounting questions or tasks but has implications for neuroscience or neuroaccounting research, or investigates accounting questions using neuroscience technologies. We then classify that literature into two broad topic areas analogous to the decision-facilitating (how individuals process information) and decision-influencing (how individuals respond to controls) roles of accounting, and map relationships within each topic over time. We observe that literature in accounting is coalescing into a new field, neuroaccounting, in ways that mirror the pattern of development of a similar field, neuroeconomics – indicating that neuroaccounting is indeed taking a place on the stage of behavioral accounting research. Our review provides a framework for future research at the nexus of neuroscience and accounting that provides unique insights into the ‘black box’ of cognitive processing in accounting contexts.