Corporate Financial Reporting Research Articles

Accounting for Society: Examining the Interplay between Financial Reporting and Social Responsibility

Purpose: This research explores the intersection of financial reporting and social responsibility by integrating Environmental, Social, and Governance (ESG) metrics into corporate financial reports. It aims to assess how sustainability reporting frameworks impact transparency and stakeholder engagement in the corporate sector. Research Design and Methodology: Utilizing a systematic literature review and interpretive analysis, this study examines existing theoretical and empirical literature to understand the evolution of financial reporting frameworks towards incorporating social responsibility. An interpretivist approach through thematic analysis identifies key patterns and insights. Findings and Discussion: The results show a significant paradigm shift in financial reporting, with an increasing inclusion of ESG metrics alongside traditional financial information. This change is driven by regulatory requirements and stakeholder demand, focusing on enhanced transparency and accountability. Challenges like greenwashing and the authenticity of social responsibility claims persist, affecting standardization and data assurance. Implications: The findings emphasize the need for more robust, standardized reporting frameworks to boost the credibility and comparability of sustainability reports. Highlighting corporate accountability, the study suggests that merging financial reporting with social responsibility is vital for future research, especially regarding its impact on corporate reputation and stakeholder relations.

MANAJEMEN LABA PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BEI PERIODE 2020-2022 MELALUI PROFITABILITAS, LEVERAGE, DAN UKURAN PERUSAHAAN

This analysis, which is a causal study, attempts to assess how three variables—firm size, profitability, and leverage—affect profits management strategies. The firm's total assets serve as a proxy for the firm size variable, while the debt-to-asset ratio (DAR) indicates leverage and return on assets (ROA) indicates profitability. Discretionary accruals are used to measure the management of earnings. The corporate financial report data used in this quantitative study approach was sourced from the Indonesia Stock Exchange (IDX) website. The mining businesses that were listed on the IDX between 2020 and 2022 made up the study's population. Purposive sampling was used in the sample selection process, yielding eight organizations as study samples with an observation length of three years. With the aid of the Statistical Package for Social Sciences (SPSS) version 22, multiple linear regression analysis was employed in this study's hypothesis testing. Descriptive statistical tests, traditional assumption tests (including multicollinearity, autocorrelation, heteroscedasticity, and normality tests), and hypothesis testing are all a part of the analysis process. The findings of the ANOVA test demonstrate that variables related to leverage, profitability, and company size all influence profits management strategies. Individual study findings, however, indicate that while firm size has no appreciable impact on earnings management, profitability and leverage do have a favorable and significant impact. 
 Keywords: Profitability, Leverage, Company Size and Earnings Management

Impact of dividend policy on earnings management and the moderating effect of the board of directors and the audit committees: The French case

Research Question: To what extent can governance mechanisms (audit committee and board of directors) affect the relationship between dividend policy and earnings management? Motivation: The majority of the literature has showed that dividend policy can influence earnings management. However, the empirical results did not lead to the same results. Our study seeks to fill this gap by examining whether this impact can vary by taking into account certain moderating variables such as: the size of the board of directors, the number of board meetings, the independence and expertise of the members of the audit committees. Idea: This study examines the moderating effect of certain variables related to the effectiveness of the board of directors and the audit committee on the impact of the dividend policy on earnings management. Data: The authors selected French non-financial companies listed on the CAC All Tradable index during the 2008-2015 period. Tools: To test study’s hypotheses, the authors applied linear regression with a panel data using the datastream database. Generalized least squares method is used to estimate the models. Findings: The results of this study show that the effect of the dividend policy on earnings management is more favorable in the case of companies where the board of directors is large. Contribution: This study shows that dividend policy constitutes an objective of earnings management especially in the companies with boards made up of a large number of directors. Investors and academics have an interest in better understanding the concepts: dividend policy and earnings management because the debates relating to these two variables have always been the subject of controversy. Thus, they can refer to corporate dividend policy as a mechanism for assessing the authenticity of corporate financial reports.

Why Green IC does not Influence Firm Value?

The study’s objective is to examine the effects of green intellectual capital on Tobin's Q in relation to firm value calculations. The study took place during the period from 2019 to 2022. It focused on companies in Energy, Transportation and Logistics, and Industry listed on the Indonesia Stock Exchange’s main board. Secondary information from corporate financial statements and sustainability reports or annual reports are used in this research. A purposive sampling method was used for sample selection to obtain 183 observations and the test using multiple regression analysis. The study result shows that green human capital, green structural capital, and green relational capital do not influence firm value simultaneously. Companies must fully manage their intellectual capital with maximum attention to the environment to influence firm value.

Fair Value Measurement and Financial Reporting Quality of Insurance Business in Lagos State

The financial reporting qualities provides objective information that is useful to analysts in evaluating the financial soundness and prospect of a company. This paper attempts to examine the concept of fair value measurement as well as determine its influence on the financial reporting quality of items in the financial statement of insurance companies. The study uses survey method and questionnaire as research instrument to elicit data from professional accountants in selected listed insurance companies in Lagos state, using conveniency sampling technique. The data collected were analyzed with the aid of SPSS. The study reveals that there is significant relationship between fair value measurement and the financial reporting quality and that the fair value measurement has significant influence on financial reporting quality at each level of the hierarchies. The study, therefore, concludes that the observance of the financial reporting qualities in the process of the fair value measurement would facilitate the production of corporate financial report useful to analysts in assessing a company’s performance and prospects. It, therefore, recommended that the professionals in the insurance industry should observe the qualities of financial reporting while preparing financial reports and during the process of fair value measurement. Also, it recommended that the management of insurance companies should engage valuation experts and professionals for objectivity and soundness in fair value measurement. This will lend credibility to the financial report.

Tax Aggressiveness in Consumer Goods: Liquidity, Leverage, Earnings, and CSR Dynamics

This study explores the relationship between liquidity, leverage, earnings management, corporate social responsibility (CSR), and tax aggressiveness in the consumer goods manufacturing companies listed on the Indonesia Stock Exchange from 2015 to 2019. Employing purposive sampling and panel data regression analysis on secondary data from financial reports, the research aims to assess the individual and combined effects of these factors. The findings reveal that leverage and CSR exhibit a significant negative impact on tax aggressiveness, while liquidity demonstrates a negative effect. Moreover, earnings management is positively associated with tax aggressiveness, albeit not significantly. Simultaneously, the comprehensive analysis reveals that liquidity, leverage, earnings management, and CSR collectively influence tax aggressiveness. These findings provide valuable insights into the interplay between financial and non-financial factors in shaping tax strategies adopted by manufacturing firms, enabling policymakers, practitioners, and scholars to better understand and manage tax behavior in the corporate sector.
 Highlights:
 
 
 Liquidity and Leverage: The study reveals the negative impact of liquidity and leverage on tax aggressiveness, indicating that companies with higher liquidity and lower leverage tend to exhibit less aggressive tax behavior.
 
 
 Corporate Social Responsibility: The findings demonstrate that corporate social responsibility practices have a significant negative effect on tax aggressiveness, suggesting that socially responsible companies are less likely to engage in aggressive tax strategies.
 
 
 Earnings Management: While not significant, the positive association between earnings management and tax aggressiveness highlights the need for further examination of the complex relationship between financial reporting practices and tax behavior in manufacturing companies.
 
 
 Keywords: Tax Aggressiveness, Liquidity, Leverage, Earnings Management, Manajemen Laba, Corporate Social Responsibility

Financial Analysis of Listed Companies of Biological Vaccine Companies

Financial analysis is an important tool for enterprises to improve management and optimize economic decisions. The analysis of corporate financial reports can provide directions and clues for improving management and provide decision support for users of financial report information. In this paper, we will take D Bio as an example and analyze its financial indicators to assess its solvency, operating capacity, profitability and growth capacity. The problems of the company's financial situation are pointed out and recommendations are given in a targeted manner to improve the company's competitiveness.

The Code of Professional Ethics and Good Governance on the Quality of Company Financial Statements

The problems that will be examined in this study relate to empirical hypothesis testing how the influence of understanding professional ethics and the application of good governance principles on the quality of the company's financial statements presentation. The research sample is accountants who work in public accounting firms in Bekasi, West Java and East Jakarta with a total sample of 100 respondents. The sampling method used purposive sampling in accordance with the expected objectives of this study. The research approach is quantitative research with the type of correlational research. The results of the study reveal that (1) Understanding of Professional Ethics has a positive effect on the quality of the presentation of the company's financial statements. This means that the better the understanding of accountants about their professional ethics, the better their awareness and commitment to carrying out their professional ethics specifically in their duties and responsibilities in the preparation of quality financial reports. (2) The application of Good Governance has a positive effect on the quality of the presentation of the company's financial statements. This means that a good understanding and commitment to the application of the principles of transparency, accountability, participation and responsiveness will motivate the commitment of accountants in the presentation and preparation of quality corporate financial reports.

PENDAMPINGAN PEMASARAN PRODUK DAN PELATIHAN PENYUSUNAN PEMBUKUAN SEBAGAI UPAYA PENINGKATAN PENDAPATAN PADA KELOMPOK USAHA DUPA CENDANA DI DESA PED, KECAMATAN NUSA PENIDA

The Cendana Incense Business Group is located in Ped Nusa Penida Village and has been running for 3 years serving incense orders around Ped Nusa Penida Village. The sandalwood incense business group consists of 3 groups, each group consisting of 6 Ped Village residents who do not have a job. The production process of sandalwood incense is very smooth in fulfilling the orders it receives. In carrying out Hindu religious ceremonies in Bali, incense is a very important and necessary ceremonial tool. So, incense is one of the staple ingredients in religious ceremonies in Bali. Based on observations made in Nusa Penida District, so far, the people of Nusa Penida have ordered/purchased incense in mainland Klungkung both for direct use and for resale/marketing. This is caused by ignorance of good and correct product marketing strategies. To help overcome these problems, this service activity will be more focused on providing product marketing assistance in an effort to increase opinion and training in the preparation of good and correct bookkeeping. The group that has been formed is expected to be able to produce incense in large quantities so that it is hoped that in the future the sandalwood incense business group will be able to meet market demand in Nusa Penida District. This service activity also provides marketing strategy assistance so that it is hoped that in the future it will be able to market incense products that produce very well through social media that are currently developing. The results achieved in this service are that the sandalwood incense business group has been able to produce incense in large quantities and from now on they have sufficient knowledge to market their products properly and immediately practice making good and correct simple corporate financial accounting reports. Assistance activities like this are still very much needed by these business groups. Evaluation of this activity will be carried out again after seeing the business development of these groups.

Extraction of Important Factors in a High-Dimensional Data Space: An Application for High-Growth Firms

We introduce a new non-black-box method of extracting multiple areas in a high-dimensional big data space where data points that satisfy specific conditions are highly concentrated. First, we extract one-dimensional areas where the data that satisfy specific conditions are mostly gathered by using the Bayesian method. Second, we construct higher-dimensional areas where the densities of focused data points are higher than the simple combination of the results for one dimension, and then we verify the results through data validation. Third, we apply this method to estimate the set of significant factors shared in successful firms with growth rates in sales at the top 1% level using 156-dimensional data of corporate financial reports for 12 years containing about 320,000 firms. We also categorize high-growth firms into 15 groups of different sets of factors.

Regulation of Financial Statements of Small Partnerships and Micro-enterprises: Comparative Analysis

EU Directive 2013/34/EU was adopted to reduce the administrative burden on small businesses. By transposing the provisions of the Accounting Directive into Lithuanian legislation: the Law on Financial Accounting, the Law on Corporate Financial Reporting, and the Business Accounting Standards, micro-enterprises have had their administrative burden reduced by simplified financial reporting requirements. A 2018 study by the Ministry of Finance of the Republic of Lithuania states that the intended benefits have not been achieved due to a lack of clarity in the legal framework, which affects the quality of the preparation of financial statements. This study did not take into account the fact that both: the forms of financial statements and the accounting requirements for micro-enterprises with limited liability differ according to legal form. The wide range of financial statement sets leads to the incomparability of the financial statements data. It is therefore essential to analyze the current regulation of the financial statements of small partnerships and micro-enterprises and consequently to provide recommendations for adjustments and standardization of the content of financial statements.The objective of this study is to carry out a comparative analysis of the regulatory framework for the financial statements of small partnerships and micro-enterprises.To back the development of the financial reporting model, data from the financial statement sets of 26 micro-enterprises were used. By standardizing regulation and producing standardized accounts, businesses would save on information resource costs. Furthermore, the uniform content of the financial statements would allow for the comparability of information. It is recommended that the balance sheet should be more summarised in terms of fixed assets and equity, while current assets should be presented in more detail. In the income statement, it is suggested that expenses be presented in a combined way: by type and purpose, detailing the cost of the sales item.

Adoption Of International Financial Report Standard [IFRS] And The Quality Of Corporate Financial Reports Of Quoted Companies

Introduction: The quality of financial reporting implies how well a standard can detect and document any material misstatements in corporate financial reports This, gives need to a standard to follow which is meant to give accurate and meaningful information of the sales and the nature, timing and uncertainties of the cash flow, to those who need it.

Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria

Investors are confronted with the difficulties or issues of settling on a choice as far as deciding when to contribute, regardless of whether to contribute. An investor can reduce decision-related risk by using financial reporting information. the study aims to investigate the impact of corporate financial reporting on investors’ confidence using some quoted industrial companies in Nigeria. The study used secondary data by adopting an ex-post factor resign design through the use of a purposive sampling technique to select ten (10) listed industrial companies from the Nigeria Group Exchange. The paper was analyzed using descriptive and panel regression analysis. The study result found that corporate financial reporting significantly affects investors’ confidence (Adj. R2 = 0.541; F statistics = 4.73; p-value = 0.004). Audit firm size moderately affects the effect of corporate financial reporting on investor confidence in some listed industrial companies in Nigeria (Adj. R2 = 0.579; F statistic =5.18, p-value =0.001). Thus, the study recommended that investors maintain their current confidence level. Also, the investors, as well as the managers, can work on developing the legal framework for corporate financial reporting in light of the suggested framework being developed, and finally inspiring financial reporting, managerial, institutional and regulatory studies and research that lead to the best practices for meeting compliance obligations.

Analysts’ Expectations, Corporate Financial Reporting and Taxes

Analysts’ Expectations, Corporate Financial Reporting and Taxes

Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria

Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria

DO AUDIT COMMITTEE ATTRIBUTES ENHANCES ASSURANCE SERVICES OF LISTED MULTINATIONAL FIRMS?

Credibility and quality of audited corporate financial report domiciles in the assurance services rendered by the professional experts. Divers of these experts of assurer of subject matter exist in the corporate world that enhance and add value of information to the quality of financial statements. Thus, this study's focal point is to investigate enhancement service rendered by the Audit Committee Attributes (ACA) as its services affect the quality of financial statements of multinational companies. The study employs desktop and ex post facto research designs to dissect the data. The result reveals that ACA metrics such as Ardit Committee Size (ACS) and frequency of Audit Committee meeting (FACM) have adverse influence on the quality of financial statement, on the second side Audit Committee Gender Diversity (ACGD) has enhancement influence on the quality of audited financial report.

Social and Economic Importance of Forest Companies in Asian Russia: Evidence from Corporate Financial Reporting

In contrast with many other sectors of the Russian economy, there is low market concentration in the forest industry and, consequently, a large number of relatively small enterprises scattered throughout the world’s largest country. In many cases, logging or woodworking companies are the only or key employers in sparsely populated areas, making them important sources of the social and economic stability of small towns and rural settlements. In 2022, Russian forest companies faced dramatic barriers to international trade, which led to the suspension of production with the risk of further layoffs. Thus, the issue of social and economic importance of the forest business in Russia has gained additional sounding. This paper aims to estimate the decline in revenues and the number of employees in forestry companies in Asian Russia because of sanctions. Based on corporate accounting reports, we have generated a dataset covering 4675 forest industry companies in Asian Russia. We use quantile regression to estimate the impact of the number of employees on revenue. All companies were divided into quartiles by revenue and into 6 groups by type of economic activity. A significant differentiation of the return on the number of employees depending on the type of activity and the volume of firms’ revenues was found. Estimates of potential losses of companies during labor force reduction were obtained, which would be 1.2%–3.6% of revenue for a company from Q1, 2.2%–6.6% of revenue for Q2 and 2.7%–8.1% of revenue for Q3. The results clearly demonstrate that forest companies might be very interested in retaining a workforce, even if an opportunistic drop in product demand creates a financial shortfall. Policy makers should take this into account when shaping instruments to support the industry

Financial Reporting Quality: The Effectiveness of the Corporate Governance Quality Evidence from Indonesia

This study aims to examine and analyze the influence of the quality of corporate governance on the quality of financial reporting in Indonesia; Using panel data on all companies listed on the Indonesia Stock Exchange during the period 2010 - 2018, except financial companies. Financial companies are not sampled because they have different financial reporting systems and regulations in Indonesia. The final sample used in this study was 2014 companies. Corporate governance quality (CG quality) is measured using a corporate governance index that we have developed in accordance with GCG regulations and other regulations that apply in Indonesia. The quality of financial reports is proxied by discretionary accruals using the modified jones model, while the robust model uses accruals from the Kothari models. The analysis technique used is multiple linear regression with the SPSS software version 17. The results of our study found that the quality of corporate financial reports as measured by discretionary accruals was positively influenced by the quality of corporate governance in both the Jones model and the Kothari model at a significance level of 1%, which means that the higher the quality of corporate governance, the higher the quality of corporate governance, the more quality the company's financial statements will be and vice versa.

Pengaruh Ukuran Perusahaan, Listing Age, Profitabilitas dan Reputasi KAP terhadap Corporate Internet Financial Reporting (CIFR) pada Bank Konvensioal Tahun 2018 - 2020

This study aims to determine the effect of firm size, Listing age, profitability and Reputation of audit firms on Corporate Financial Reporting (CIFR). The independent variables are company size, company age, profitability, audit firm reputation. While the dependent variable is CIFR. The sample used is Conventional Banks on the Indonesia Stock Exchange for the period 2018-2020. The statistical method used is multiple linear regression analysis. The results showed that firm size, profitability and reputation of the audit firm had no significant negative effect on CIFR, while firm age had a significant positive effect on CIFR.

Auditor Professionalism: Management Performance Analysis in Corporate Financial Reporting

Purpose: Internal auditors are expected to have a high professionalism attitude that can encourage management performance in a positive direction. Therefore, the purpose of this study is to find out how the effect of auditor professionalism on management performance and in the company's financial reporting. Methodology : The research method used is explanatory research method. The sample used in this study is an internal audit who works for companies and government agencies in the Jakarta area. Data were obtained using a questionnaire that was distributed directly and compiled using a Likert scale. The data obtained were analyzed descriptively. The research data were analyzed using descriptive statistical techniques, testing data quality by conducting internal consistency tests and construct validity tests, as well as classical assumption tests, namely multicollinearity, autocorrelation and heteroscedasticity. To test the hypothesis used linear and stratified regression techniques using the SPSS statistical program. Findings: Based on the research data, it can be concluded that there is a positive influence between auditor professionalism on performance management in the company's financial reporting system. Novelty: The previous study focused on organizational and professional commitment on the job satisfaction of accountants. This study tries to examining how internal audit professionals relate to financial reporting management.   Keywords: Auditor, Performance Management, Financial Report