Account Quality Research Articles

The Role of Accounting Quality During Mutual Fund Fire Sales

We study the ex ante role of accounting quality in mitigating the undervaluation generated by mutual fund fire sales. Asymmetric information between distressed mutual funds and the potential buyers of the securities being fire sold leads to an adverse selection problem resulting in an equilibrium in which buyers trade only at prices below the intrinsic value. Sellers accept these lower prices only because they have severe liquidity needs. To the extent that accounting quality helps market participants better estimate the intrinsic value of the securities being fire sold, we expect the adverse selection problem to be less severe for firms with better accounting quality. Consistently, we find that high accounting quality is associated with smaller fire-sale discounts. This result is explained by two complementary mechanisms. Analysts are more likely to provide price-correcting recommendations, and arbitrageurs trade more heavily on high-accounting-quality firms during mutual fund fire sales. Overall, our results show that accounting quality mitigates stock undervaluation caused by nonfundamental factors.

THE ROLE OF ACCOUNTING AND INTERNAL CONTROL IN THE ENTERPRISE MANAGEMENT SYSTEM

For the development of international economic relations in Georgia, the role of accounting as the language of business is great, which requires compliance of accounting and reporting with the norms and rules recognized by the international practice of accounting. Because of this, a national accounting-reporting model was created in our country, for which the main normative documents of accounting regulation, the Law of Entrepreneurs and others were developed and put into effect. In enterprises, when the economic activity increases, it becomes necessary to create an internal control system for the protection of the current accounting and reporting legislation. In order for the internal control system to be fully involved in the management of enterprises, the main element of which is the internal audit, its goals must be realized, awareness raising, which is the goal of the abovementioned paper. Internal audit - this is the internal control of the enterprise, which is organized as a separate service in the enterprise, and their main task is to help accounting workers to perform their duties as efficiently and effectively as possible. Because of this, it is the duty of the internal auditors to check the accuracy of accounting information and to make recommendations for their improvement, thus they contribute to raising the quality of accounting and reporting in the enterprise. Keywords: accounting, financial reporting, internal control, internal audit.

Development of obstetric anesthesia core competencies for USA residency programs through a Delphi process.

The standard for anesthesia residency training in the USA mainly relies on the Accreditation Council for Graduate Medical Education (ACGME) Outcome Project, a framework that lacks specific directives for subspecialties including obstetric anesthesia. We aimed to identify core competencies in obstetric anesthesiology that can be adapted to different residency training programs to help improve the quality of training and accountability of the institutions within the USA. We identified a preliminary list of competencies from review of existing competency-based obstetric anesthesia training curricula and practice guidelines. We used a modified Delphi methodology to achieve expert consensus among members of the Society for Obstetric Anesthesia and Perinatology education committee. The panellists were asked to evaluate the importance of each competency using a five-point Likert scale, with consensus after two rounds defined at 80% agreement. The responders were also asked at which level of training each competency should be attained. The Delphi rounds had 75% response rate and derived 94 competencies that were categorized under the six ACGME domains: patient care (38), medical knowledge (45), system-based practice (two), practice-based learning and improvement (five), interpersonal communication skills (two), and professionalism (two). We generated a residency training competency list for obstetric anesthesiology through expert consensus. This list can be used by residency training programs to develop a structured competency-based curriculum with tangible milestones, thereby reducing heterogeneity in the standard of training.

THE INFLUENCE OF TRANSPARENCY, ACCOUNTABILITY, AND MANAGEMENT QUALITY ON INCREASING MUZAKI’S INTEREST

The implementation of zakat in Indonesian society seems that there is still a gap between hope and reality, the majority of Indonesian Muslims have great zakat potential, but in reality, zakat funds are collected nationally through the National Amil Zakat Agency (BAZNAS) are far from what is expected. The Amil Zakat Nasional Agency (BAZNAS) has future challenges in the management of zakat to improve coordination between the Amil Zakat Agency and zakat institutions in Indonesia. This research aims to find out the Influence of Transparency, Accountability, and Quality of Zakat Management on muzaki interest in the BAZNAS Tasikmalaya Regency. This study uses a quantitative methodology, while the data source in this study is primary data by using questionnaires as a data collection tool. The population in this study is the entire muzaki in BAZNAS Tasikmalaya Regency with a total of 5803 muzaki. The samples in this study used Maximum Likelihood. The sample was taken as many as 140 Muzaki in BAZNAS Tasikmalaya Regency. The sample selection method used is a nonprobability method that is random sampling which is a randomly selected sampling technique from muzaki that has been tapped. Data is processed using SEM analysis with Smart-PLS 3.0 applications. The results of this study are the variables of transparency, accountability and management quality at BAZNAS Tasikmalaya Regency simultaneously affect the increase in interest in muzakki. However, partially accountability has a positive and significant effect on increasing interest in muzakki, and transparency has a positive and significant effect on increasing interest in muzakki, while management quality has a significant negative effect, this is proven to have a significant but negative effect on increasing interest in muzakki. In this study, transparency is a connecting variable between the accountability variable and management quality on the interest of muzaki, so that all variables are said to have a positive and significant influence through the transparency variable

Scientific and theoretical substantiation of the system of improving selection and breeding work in dairy cattle breeding in the Novosibirsk region

In the article, the authors presented the main achievements and problems of developing dairy cattle breeding associated with selection and breeding work in the Novosibirsk region. It is necessary to solve the following tasks step by step for the purpose of the sustainable, progressive development of the industry and improvement of selection and breeding work with dairy cattle in the region: the creation of a regional/regional council for breeding work; organization of the Novosibirsk tribal union of dairy industry enterprises; formation of an assistant service based on the Novosibirsk State Agrarian University (NSAU) in cooperation with the Siberian Federal Scientific Center for Agrobiotechnologies of the Russian academy of sciences and JSC Novosibirskagroplem (RSIC – Regional Selection and Information Center); formation of a unified global database of breeding resources of the Siberian Federal District (SFD), the central regions of the Russian Federation, member countries of the EAEU (Eurasian Economic Union) using foreign data sources; development and implementation of an information and analytical system that allows you to automate selection and breeding work at the level of the economy, region, country/countries; automating the process of phenotyping of dairy cattle and improving the quality of the work of assessors (classifiers) of the exterior. The implementation of the tasks outlined will contribute to the consolidation of approaches at the regional level. It will lead to an increase in the quality of primary zootechnical accounting, which, in turn, will allow the assessment of the genetic potential of dairy cattle productivity, taking into account regional specifics, with high accuracy. It is expected that the result of such activities will be the development of appropriate domestic software tools for gaining technological sovereignty and ensuring the food security of the region and the country.

The quality of tax accounting for financial reporting purposes: International evidence from the United Kingdom

The quality of tax accounting can be defined as the relationship between the annual tax expense reported in firms’ financial statements and future tax cashflows. As corporate income taxes have a material proportion of earnings, assessing the tax accounting quality can help financial statement users in evaluating future commitment to internal funds. While there is an emerging US-based literature on tax accounting quality, to the authors’ knowledge this is the first study to examine tax accounting quality outside of the US and the first under a regime governed by International Financial Reporting Standards. The results indicate that tax accounting quality is significantly lower for firms that engage in higher levels of tax management or have stronger earnings management pressure. While corporate governance mechanisms do not moderate the relationship between tax management and tax accounting quality, there is some evidence of a moderating effect in the relationship between earnings management pressure and tax accounting quality. In addition, we observe variations in tax accounting quality associated with a change in tax-related financial reporting standards.

Foreign investment and information quality – A quasi-experiment from China

This study examines the effect of foreign investment on firms' information quality. We use a unique setting—the Shanghai-Hong Kong Stock Connect Program in China—that provides an exogenous shock to foreign investment and allows global investors to trade on stocks that were previously inaccessible to them. Combining a difference-in-differences model and a propensity-score matching research design, we find that information quality significantly improves in firms selected for this program, relative to other firms. The effect is more pronounced in companies without previous foreign investors and with high financing constraints, weak corporate governance, and low accounting quality, suggesting that foreign investment exerts a governing effect. Overall, our study contributes to the debate about the role of foreign investors by presenting direct evidence that foreign investment as a result of capital market liberalization plays an active role in improving corporate governance and enhancing the corporate information environment.

Accountability of Traditional Islamic Boarding School in Aceh

This study aims to see how accountability in traditional Islamic boarding school in Aceh. This research was conducted using a qualitative approach through in-depth interviews with related parties. Observation, documentation and literature review were also carried out to deepen the discussion and research results. This study was conducted by interviewing five informants. The results of the study found that accountability of traditional pesantren in Aceh has shown good accountability. However, there are some aspects that needs to be improved so that organizational accountability quality can be better. Traditional Islamic boarding school need to improve the quality of financial reporting.

Effect of Internal Control, Accountability, and Transparency of Financial Statements on the Financial Statements Quality (Case Study on Amil Zakat Institute of the Indonesian Zakat Initiative)

Purpose: This study seeks to examine the impact of internal control, accountability, and transparency on the quality of financial statements.
 Methodology: Data for this study was primarily collected through questionnaires distributed to respondents. The questionnaires covered aspects of internal control, accountability, transparency, and financial statement quality. The study focused on the Amil Zakat Institute of the Indonesian Zakat Initiative as the population, and a purposive sampling method was used to select 35 samples. The research methodology involved descriptive statistical analysis, testing of classical assumptions, and multiple linear regression with subsequent hypothesis testing.
 Findings: The findings indicate that transparency has a positive and significant influence on the quality of financial statements. However, accountability and internal control factors do not demonstrate a significant impact on financial statement quality. Nevertheless, when considered together, the variables of internal control, accountability, and transparency do significantly affect the quality of financial statements.
 Implications: Financial statements will be useful to users if the information presented in these financial reports is understandable, relevant, reliable and comparable.

DESIGN FOR SAFE REUSE OF LABWARE: INVESTIGATING METHODS FOR QUALITY ASSURANCE

AbstractThe problem of plastic waste in research laboratories is a significant one, with an estimated 5.5 million tonnes generated annually worldwide. Reusable labware has the potential to reduce this waste significantly, but the design of such products must take into account quality assurance to guarantee the accuracy of experiments. Insights were gathered through the generation of an overview of the available techniques for verifying labware after use and decontamination. As during different design cycles verification of prototypes is needed, these techniques were evaluated and translated to be applicable in the specific context of a design lab. Therefore, this study presents a protocol which can be used as a verification tool while designing safe, reusable labware for chemical laboratories. This protocol consists of four different steps: (i) visual inspection, (ii) mass & size comparison, (iii) leak test, and (iv) chemical stability test.

Climate change mitigation role of renewable energy consumption: Does institutional quality matter in the case of reducing Africa's carbon dioxide emissions?

Renewable energy and institutions have emerged among other variables touted to address climate change problems. However, empirical results have been conflicting. With a relatively poorer state of institutional quality and a lower level of renewable energy development amidst rising carbon dioxide (CO2) emissions in Africa, the study assesses: a) the direct effect of renewable energy and institutional quality on CO2 emissions in Africa; and b) the moderation role of institutional quality on the effect of renewable energy on CO2 emissions in Africa. The study relies on panel data covering 2002–2021 for 32 African countries. The Fully-Modified OLS regression method is employed to analyze the data based on the environmental Kuznets curve (EKC) hypothesis and Stochastic Impacts by Regression on Population, Affluence, & Technology (STIRPAT) model. The results show that urbanization and trade openness increase CO2 emissions. Although income has a positive effect on carbon emissions, the square term has a negative confirming the EKC hypothesis. Renewable energy also reduces CO2 emissions. Institutional quality variables of control of corruption, rule of law, regulatory quality, political stability and absence of violence, voice and accountability, government effectiveness and institutional index created from the above indicators reduce CO2 emissions. In addition, except government effectiveness, the remaining indicators of institutional quality negatively moderate the effect of renewable energy on CO2 emissions. The results among other things imply that intensifying the development and usage of renewable energy would help address the rising carbon dioxide emissions trend in Africa. Also, strengthening institutions promises to reduce CO2 emissions.

Information systems quality in management accounting and management control effectiveness

PurposeSeveral conceptual works suggest that more digitalized information systems in management accounting have the potential to make this corporate function more effective. Against this backdrop, this study aims to investigate the impact of information systems quality in management accounting on the effectiveness of management control systems. Additionally, this study examines the moderating effect of process automation.Design/methodology/approachA cross-sectional survey of 125 German Mittelstand firms and hierarchical regression analyses were used for data collection and analysis.FindingsThe findings confirm the assumed positive effect of information systems quality in management accounting on management control effectiveness. They also confirm the assumed moderating effect of process automation. The authors find that the relationship between information systems quality in management accounting and management control effectiveness is more pronounced if the firm features a higher degree of process automation.Originality/valueSeveral earlier case studies and a few quantitative studies indicated the potentially positive effect of high-quality information systems in management accounting on management control effectiveness. To the best of the authors‘ knowledge, this study is among the first to deliver quantitative proof of this relationship in the context of German Mittelstand firms. Moreover, the authors add to this literature the moderating effect of process automation in the relationship between information systems quality in management accounting and management control effectiveness.

Analisis Penerapan Aplikasi Sistem Keuangan Desa (SISKEUDES) Dalam Peningkatan Kualitas Akuntabilitas Keuangan Desa Di Desa Karangrejo Kecamatan Selomerto

This study aims to determine the implementation of SISKEUDES in improving the quality of village financial accountability in Karangrejo Village, Selomerto District. This research uses descriptive method with qualitative analysis using the implementation model. Data collection was carried out by library research, observation, and in-depth interviews. The research location is in Karangrejo Village, Selomerto District, Wonosobo Regency. Data analysis uses data reduction, data presentation, and data verification or conclusions. The results showed that the management of the SISKEUDES application in Karangrejo Village, Selomerto District, Wonosobo Regency had been carried out in an accountable manner. performance indicators. With the SISKEUDES application, the village government is greatly assisted in managing village finances and budgets and also provides accuracy in reports that have been made and upholds reporting transparency and accountability.

Accountability and Quality of Service Delivery in Marsabit County Government

Any organization's continued viability rests in large part on the quality of the services it provides. According to the theoretical literature, the level of professionalism shown by workers is a major factor in the quality of service clients get. However, there has been a lack of empirical research on the relationship between accountability and service quality. The main purpose of this study was to assess the effects of accountability on quality of service delivery in Marsabit county government. The study was anchored under The Service Quality Theory. The target population for this study was 303 Marsabit County employees working at various ministries within the County headquarters and with an adoption of sample size of 45% the study established a sample size of 137 respondents. Stratified random sampling was used to select the respondents. A questionnaire was used as the primary instrument for data collection. The study employed both descriptive statistics such as percentages, means and standard deviations and inferential statistics such as Pearson’s correlation and Multiple Regression to present and analyze the data. The statistical package for social science (SPSS) aided the data analysis. The study established that accountability has a strong positive effect on quality of service delivery and accounted for 72.2% (R square = 0.722) of the variation in quality of service delivery. This study suggests that there is need for counties top leadership to ensure that accountability practices are formulated, enforced and adhered to. It is also important that counties to adopt code of conduct/ethics to improve on quality of service delivery. It is recommended that a more comprehensive survey covering different counties to be done to shed more light on this subject.

The impact of earnings quality on corporate cash holdings: evidence from an emerging economy

Purpose This study aims to inspect the impact of earnings quality on corporate cash holdings of Jordanian companies listed on the Amman Stock Exchange. Design/methodology/approach This study examines a large sample of (98) Jordanian companies listed on the Amman Stock Exchange during the period that ranges from 2009 to 2019. Earnings quality was computed using two different methods; firstly, through the absolute abnormal discretionary accruals (as an inverse measure of earnings quality), which were estimated using the Dechow et al.’s (1995) cross-sectional version of the Modified Jones model and the Kothari et al. (2005) model; and secondly, through earnings persistence as a direct measure of earnings quality. Findings The empirical results of this study reveal that poor accounting quality (high levels of abnormal discretionary accruals) is associated with higher levels of cash holdings, implying that as the quality of earnings decreases, the harmful effects of information asymmetry and adverse selection costs will increase, leading, therefore, Jordanian companies to increase their corporate cash holdings levels to act as a buffer against any cash shortages. Further, the authors document that higher accounting quality (more persistent earnings) is associated with lower levels of cash holdings. In addition, this study found that earnings quality negatively and significantly affects the cash holdings of profitable companies in Jordan. Thus, earnings quality appeared to be a significant determinant of cash holdings for profit-making companies but not for companies enduring losses. Originality/value This study contributes to the limited evidence that investigates the relationship between earnings quality and corporate cash holdings. Where the majority of previous studies have focused on developed economies, to the best of the authors’ knowledge, this study is the first in Jordan to comprehensively explore the relationship between earnings quality, computed by the absolute abnormal discretionary accruals and earnings persistence, and corporate cash holdings. Also, it is the first to explore the nature of the earnings quality-cash holding nexus in loss-making companies compared with their profit-making counterparts to the best of the authors’ knowledge. The results of this study have important policy implications for managers, creditors, investors and academics in Jordan and other emerging economies that share similar characteristics.

What Affects Factor Loading Uncertainty and Expected Returns? The Role of Accounting Quality

Despite considerable research on the association between accounting quality and expected returns, much is yet to be learnt about specific underlying mechanisms. Motivated by recent advancements in theoretical work, this study empirically examines how firm-specific information quality affects expected returns through its impact on the uncertainty of estimating factor loadings in asset pricing models. We document that the quality of accounting information is negatively associated with factor loading uncertainty. This result is robust to alternative measures of accounting quality and various model specifications. In addition, we document that factor loading uncertainty is negatively associated with expected returns. Together, our analyses present a coherent set of findings suggesting that factor loading uncertainty serves as an important underlying channel through which accounting quality is related to the cross-section of stock returns, thus providing new insight into the mixed findings reported in prior studies on the relation between accounting quality and expected returns.

Improving the Properties of Gypsum By Using Additives

Gypsum Plaster is an important building materials, and because of the availabilty of its raw materials. In this research the effect of various additives on the properties of plaster was studied , like Polyvinyl Acetate, Furfural, Fumed Silica at different rate of addition and two types of fibers, Carbon Fiber and Polypropylene Fiber to the plaster at a different volumetric rate. It was found that after analysis of the results the use of Furfural as an additive to plaster by 2.5% is the optimum ratio of addition to that it improved the flexural Strength by 3.18%.When using Polyvinyl Acetate it was found that the ratio of the additive 2% is the optimum ratio of addition to the plaster, because it improved the value of the flexural strength by a rate of 3.44% of the value of standards fraction of the mixture of reference. It was noted that the optimum ratio for the addition of Fumed Silica to the plaster is the ratio of 1%, because this ratio of addition increases the flexural strength by 15.26%. For the addition of Carbon Fiber to the plaster it was found that the volumetric ratio of the additive 0.5% is the percentage of perfect accessory after taking into account cost and quality which gives an increase in Flexural Strength by rate of 41.43% .When using Polypropylene Fiber it was found that the optimum percentage ratio of addition 1.5%, where this ratio increases flexural strength by a rate of 23.67% . When using the mixture (PVCF), which contains 2% of Poly vinyl Acetate and 0.5% as a volumetric rate of the carbon fiber to the plaster, increases the value of Flexural Strength by a rate 62.92%. After analyzing the results for all mixtures it was found that the mixture (PVCF) is the best one to satisfy the aim of the research which is to get the best structural properties specially flexural strength for gypsum beams.

IFRS ADOPTION AND KEY ACCOUNTING RATIOS: AN EVIDENCE FROM COLOMBO STOCK EXCHANGE

The purpose of this study is to investigate the impact of International Financial Reporting Standards (IFRS) adoption on key accounting ratios of firms listed in the Colombo Stock Exchange (CSE). The study also sought to test if the entity’s sector discriminates the impact that the IFRS adoption has on accounting ratios being evaluated. Descriptive statistics and non-parametric univariate analysis (Mann Whitney U test) were used to compare pre and post IFRS convergence ratios. The researchers tested eleven accounting ratios falling under profitability, liquidity, leverage, and market performance. We randomly sampled 40 firms listed in CSE, 20 each from the service and manufacturing sectors. The study period was ten years from 2007 through 2016, whereby the periods corresponding to pre-IFRS convergence were from 2007 through 2011, and post-IFRS convergence was captured from 2012 through 2016.. We showed that all profitability measures we tested were significantly impacted by IFRS adoption. We infer that the direct comparability of the profitability measures across pre and post-IFRS periods is no longer useful for decision making. In contrast, all liquidity ratios investigated were significantly indifferent between the pre and post-IFRS adoption. We have argued that liquidity measures have not changed considerably due to IFRS adoption and may thus still be comparable across pre and post-IFRS periods. Leverage and market ratios returned mixed results. We also document that the IFRS convergence’s impact on profitability and leverage ratios tends to be influenced by the sector in which firms operate, while its impact is not evidenced in relation to liquidity measures and market ratios. The limitation of this paper is that the effects of firm-specific variables and macro-economic factors on accounting ratios were not controlled. The results are useful for those interested in analyzing the long-term trends of accounting ratios. Our findings will also help the policymakers, standards setters, financial analysts, and future researchers about the behaviors of accounting ratios and quality financial reporting due to convergence to IFRS-based accounting regimes. This study is one of very few works on this topic in Sri Lanka, an IFRS jurisdiction with a developing economy.

The effects of female executives on financial statement comparability

AbstractThis study uses data from China to investigate the impact of female executives' proportion on a firm's financial statement comparability. We find that having female executives can improve a firm's financial statement comparability, particularly in the presence of a key female executive. Furthermore, we find that female executives improve firms' corporate governance and internal control quality, which in turn enhances financial statement comparability. Importantly, this impact exists only in large firms, non‐state‐owned firms, and firms domiciled in mature markets. Overall, our study reveals this mechanism and examines the conditions under which gender‐specific characteristics can affect corporate accounting quality.

A Commentary on Who ‘Owns’ the University Accounting Curriculum?: And on Why That ‘Ownership’ Matters

ABSTRACT The issue raised in this commentary is: who determines, who owns, the accounting curriculum in universities, and does it matter who does? The question has a clear answer. But the answer is not what you would expect it to be. The accounting professoriate does not ‘own’ the accounting curriculum. Professional accountants and auditor organizations, the accounting profession, as well as accounting and auditing regulators and oversight bodies do. The problem with the domination of the accounting profession and regulators of the university accounting curriculum is that it prevents the professional quality of accountants and auditors from reaching its full potential. I argue in this commentary that this will only happen when the accounting professoriate takes full charge of curriculum design. This commentary is a call for that to happen.