Corporate Financial Statements Research Articles

مراجعة قوائم وتقارير الشركة المساهمة خارجياً: بين حقٍ مبينٍ وسرابٍ مستحيلٍ

The separation of ownership and management in the corporate model resulted in the need for an external party to certify the representation of the financial statements prepared by the corporation’s executive management of its financial position and the financial, cash and operational performance of its executive management. The existence of the corporation whose shares are traded in the market and stock exchanges also resulted in the emergence of a class in society, lurking for price fluctuation. Accounting has founded a concept that it is the servant of every rational decision maker. However, the concept of 'decision makers' in accounting is imaginary. Financial accounting has not been able for more than a century and until our present moment to provide a model for the financial statements and reports that the corporation is required to prepare and publish in response to their so-called needs of its financiers. The financial statements are prepared based on financial accounting standards, which represent the contemporary accounting truth. Such truth is impossible and is not a reflection of the economic reality on which the accounting entity is constructed. The external auditor’s approval of the corporate financial statements prepared by its executive management makes him its partner in preparing the financial statements and reports. What gives value to the opinion of the external party is his possession of the technical knowledge that gives him an advantage over the rest of the members of his society, and his independence from the executive management is the foundation of his work and professionalism. However, academic research in accounting and auditing casts doubt on the objectivity of the external auditor and even his ability to be independent, as their relationship is closer to cooperation than to opposition, representing the interests of the party absent from the contractual relationship between them. External auditing is the only profession whose practitioner must monitor whom he receives his fees in service to watch the interest a part that is absent in the contractual relationship. The external auditor does not provide the service of auditing the financial statements and reports of corporations as a community or voluntary service, but rather it is a service in exchange for covering his expenses and achieving a source of income. Also, work skills and dealing with the audit firm’s clients are of great importance in the audit firm, and leadership. Reliance on the one-partner model in implementing audit engagements is a source of risk. The external auditor is a product of his society. The doctrine that his society follows is his belief, and it is what affects his decisions. It is the balance of matters. Strengthening the independence of the external auditor, even in the presence of legislation, is not sufficient for the independence of the mind of the external auditor.

Accounting Standards in India: Operational Issues

Accounting standards were primarily developed to provide more transparency in business operations and to ensure accurate reporting that supports wise decision-making. Together with these things, accounting ideas, techniques, and principles changed. Accountability standards are really more than just a framework; they are fundamentally similar to legislation. In order to resolve disputes between parties with disparate interests, accounting standards are also crucial. An essential mediator in settling conflicting interests is accounting standards. Accounting standards are regarded with legitimacy by many interest groups. They work to guarantee that readers of financial statements are provided with accurate information about the company. Malignancy of this includes the many instances of business scams in which investors were conned out of crores of rupees, levies were fined, and embezzlement was permitted. Because of all of this, changes to the standards were necessary to make them more informative and tone-regulating. Amending related legislation was required by these revisions. A thorough knowledge of whether the account is in line with materiality, transparency, complete exposure, and operational support is required. From a business standpoint, accounting standards are evaluated for their efficacy in promoting transparency via exposure and accuracy in reporting. In order to assist stakeholders' decision-making and provide functional support for the firm, corporate financial statements (profit and loss account and balance sheet) needed to be made visible and efficient. The present research looks at the accounting standard revisions from the perspectives of company registers, cost accountants, and chartered accountants. Professionals, the experimenter examines their viewpoints about the efficacy of accounting standard change. This makes the research relevant.

Navigating wartime communications: multinational corporations in the Russia-Ukraine war

AbstractThis article explores the communication strategies of multinational corporations in response to the Russo-Ukrainian War and the public pressure to divest from the Russian domestic market. By content analyzing official statements from the top 50 revenue-generating multinational corporations in Russia, the article identifies patterns in corporate narratives about the war, their actions and concerns, and potential solutions. The findings reveal that most companies declare scaling down their presence in Russia while maintaining certain basic obligations, prioritizing employee safety, and expressing concerns about the global economy. While few explicitly condemn Russia's aggression, many adopt neutral language to avoid naming Russia as the aggressor. Corporations emphasize the importance of diplomacy, adherence to international law, and the pursuit of peace, but often avoid proposing concrete solutions. Despite variations across industries, countries of origin, and decisions to stay or leave Russia, the differences in statements were not significant. The uniformity of corporate statements and evidence that companies frequently do not follow their declared promises suggest potential “bluewashing” – making vague or false claims of social responsibility or anti-war stances to improve their public image. These findings emphasize the need for multinational corporations to develop sincere and original wartime communication strategies.

Analisis Faktor Ukuran Perusahaan, Struktur Kepemilikan, dan Profitabilitas terhadap Ketepatan Waktu Pelaporan Keuangan

Those studies goals are designed to observe the factor evaluation of company size, ownership structure, and profitability on the time of financial reporting. Thisstudies is absolutely primarily based on financial statements of banking corporations listed to Indonesia stock exchange. A focused sampling method became used within the sampling of this examine. The records evaluation technique used on this examine is logistic regression evaluation. The statistics used on this examine had been received from secondary statistics in the form of annual accounts of organizations listed in Indonesia stock trading (IDX 2018-2020). The consequences of this examine imply that ownership structure has a positive and insignificant effect on financial reporting timeliness, even if company size and profitability have a positive and significant effect on financial reporting timeliness.
 Keywords: Size1; Ownership 2; Profitability3 ; On Timeliness 4

Serials as Vital Resources: A Bird’s Eye View

Serials are important sources of information to library users. This study examines the serials management in a Law library, the Nigerian Institute of Advanced Legal Studies (NIALS). Diverse resources aid research, learning and teaching, among these are serials. They feature as inaugural lectures, public briefings, reports, white papers, gazettes and other government publications, hazards, panels/commissions of inquiry, memoirs, findings, treaties, field trip’ reports, television or film series, body corporate statements of accounts, newspapers, conference proceedings. The role of UNESCO coupons in paying for foreign journals was briefly mentioned-though these are no longer sent to many Nigeria libraries. The compulsion for all serials editors to write to NLN for an ISSN to enhance the compilation of National Bibliographic Control, like the British Union Catalogue of Periodicals, and collective aim at ensuring a knowledge output consortia among all libraries to ‘save the bucks’ was also mentioned, this, so many of the knowledge industries do not comply with this statute, unfortunately. The paper discussed the management of serials which include: acquisitions, classification, storage and preservation. The study recommends the need for acquisitions policy reviews, staff skills, suggesting the employment of only possessors of library and information science qualifications in the libraries, preservation and conservation of serials via binding and pre-purchase quality assurance.

Risk Management and Value of Listed Commercial Banks in Nigeria

This study was carried out to examine the relationship between risk management and value of listed commercial banks in Nigeria. The study, anchored on the risk management theory, adopted the ex post facto research design. The population consists of all listed commercial banks in Nigeria. Data for the study were collected from secondary sources through content analysis of corporate financial statements of the sampled commercial banks for the period 2017 to 2022. The data collected were analysed using the descriptive and inferential statistics while the hypotheses formulated for the study were tested using the panel regression analytical method. Findings of the study showed that operational risks and liquidity risks management have a significant positive relationship with market value of listed commercial banks in Nigeria. The study also found that market value has a negative and significant relationship with credit risks. The study therefore concludes that risk management practices influence the market value of listed commercial banks in Nigeria and recommends amongst others that automated credit tracking mechanism should be put in place by the management of commercial banks so as to reduce the possibility of default and outstanding loans beyond the substandard loan level of between 90 to 180 days.

Moderasi Komite Audit Sebagai Peredam Kecurangan Pelaporan Keuangan

Financial statement manipulation is a form of fraud that can lead to losses in a company's performance. This study aims to assess the influence of factors in detecting fraudulent corporate financial statements. The research focuses on manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 to 2021. The dependent variable used in this study is fraudulent financial reporting. The independent variables include pressure (comprising financial targets, financial stability, and external pressure), opportunity (comprising ineffective supervision and industry nature), rationalization (comprising auditor turnover and rationalization), competence (measured by director turnover), and arrogance (measured by the frequency of CEO photo appearances). Additionally, the Audit Committee is used as a moderating variable. The test results indicate that financial targets have a significant negative impact on fraudulent financial reporting, while financial stability has a significant positive influence. However, external pressure, ineffective supervision, industry nature, auditor turnover, rationalization, director turnover, and the frequency of CEO photo appearances do not significantly affect fraudulent financial reporting. The implications of this research highlight the importance for companies to carefully monitor and manage their financial targets to avoid fraudulent practices in financial reporting. Furthermore, the role of the Audit Committee in overseeing financial statements needs to be strengthened to mitigate the risk of fraud. The research methodology employed in this study involves panel data regression analysis to examine the influence of the mentioned variables on fraudulent financial reporting.

Modern Slavery in Liner Shipping: An Empirical Analysis of Corporate Statements

Forced labour is a widespread risk for workers in the shipping industry. Traditional approaches to tackling the problem rely on the rules of flag state and port state jurisdiction, leaving a significant margin of political discretion in dealing with violations of labour rights. This article examines whether private enforcement mechanisms in the form of tort actions can play a role in securing the labour rights of workers and providing them with access to remedies. Following recent case law, it examines the possibility of enforcing the duty of care as stated in the company materials, in particular the growing number of corporate annual reports. The article relies on empirical material, consisting of the statements published by shipping companies under the UK Modern Slavery Act [MSA]. In addition to the descriptive observations on compliance, the study carries out a content analysis of the statements, seeking to identify the patterns of reporting and industry best practices. The final part of the article examines whether corporate undertakings as laid down in modern slavery statements can serve as grounds for tort liability. Based on the empirical data, the study concludes that the statements provide insufficient grounds for holding companies liable for labour rights violations. Modern Slavery, Forced Labour, Liner Shipping, Annual Reports, Published Materials, Private Enforcement, Supply Chain Liability

Do Sales Growth, Company Risk, Return on Assets, and Liquidity effect on Tax Avoidance?

This study aims to analyze the effect of sales growth, corporate risk, return on assets and current ratio to tax avoidance. The population in this study is a manufacturing company of pharmaceutical subsectors and health registered in BEI in 2018-2021. The research method used in this research is quantitative method. The sample used in this study were 10 companies, selected based on purposive sampling method. This study uses secondary data obtained through corporate financial statements. The data analysis technique used is multiple linear regression analysis consisting of descriptive statistical analysis, classical assumption test, and hypothesis test. The results of multiple linear analysis showed sales growth variables and ROA had negative effects of tax avoidance. While the risk variable of the company and the current rates have no effect on tax avoidance.

Challenges and Opportunities Presented by Modern Financial Instruments to Accounting Standards and Statements

This paper aims to explore the challenges and opportunities that modern financial instruments present to accounting standards and statements. This paper first introduces the purpose and significance of the research, then sorts out and evaluates the influence of modern financial instruments on accounting standards and statement presentation, and introduces the research methods, results, discussions and conclusions. It is found that the influence of modern financial instruments on the presentation of accounting standards and statements is mainly reflected in the following aspects: It is difficult for accounting standards to accurately describe and standardize the characteristics and transactions of modern financial instruments; The innovation of modern financial instruments brings more risks and uncertainties to the presentation of corporate statements; Modern financial instruments provide enterprises with more financial management opportunities, such as optimizing the structure of assets and liabilities. In response to the challenge, we should improve the recognition and measurement criteria of financial instruments, strengthen the fair value measurement, and improve the presentation and disclosure of financial statements. In terms of taking advantage of opportunities, we should improve the international coordination of accounting standards and financial statements, strengthen the audit of financial statements, and bring more financing channels and investment opportunities to enterprises by using the innovation and development of modern financial tools.

Analisis Faktor Ukuran Perusahaan, Struktur Kepemilikan, Dan Profitabilitas Terhadap Ketepatan Waktu Pelaporan Keuangan

Those studies goals are designed to observe the factor evaluation of company size, ownership structure, and profitability on the time of financial reporting. Thisstudies is absolutely primarily based on financial statements of banking corporations listed to Indonesia stock exchange. A focused sampling method became used within the sampling of this examine. The records evaluation technique used on this examine is logistic regression evaluation. The statistics used on this examine had been received from secondary statistics in the form of annual accounts of organizations listed in Indonesia stock trading (IDX 2018-2020). The consequences of this examine imply that ownership structure has a positive and insignificant effect on financial reporting timeliness, even if company size and profitability have a positive and significant effect on financial reporting timeliness.
 Keywords: Size1; Ownership 2; Profitability3 ; On Timeliness 4
  

PENGARUH RASIO KEUANGAN TOTAL ASSETS TURNOVER NET PROFIT MARGIN DAN RETURN ON ASSETS TERHADAP PERTUMBUHAN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Developments in the world in the economic field in the Indonesian and international regions have greatly encouraged a lot of competition for business people who are passionate about competing. This study aims to measure the profit growth of manufacturing companies that will be sampled. The variables used are the dependent and independent variables, while the dependent variable is profit growth. The independent variables include the financial ratios of trun on assets, Net Provit Margin and Return on Assets. This study uses panel data regression model testing with several tests. The results of the analysis show that partially the financial ratios of total assets turnover and return on assets have an effect on profit growth while the financial ratios of net profit margin have no effect on profit growth in manufacturing companies listed on the Indonesian stock exchange. Then the data used in this study as many as 20 companies have fulfilled the classic assumptions which include normally distributed data, no multicollinearity symptoms occur, there are problems with heteroscedasticity symptoms. The results of this study can provide information for the public or investors by choosing high quality companies by looking at profit growth and corporate financial statements

Analysis of Corporate Financial Statements Based on Strategic Perspective - Taking BYD Company Limited as an Example

As global oil prices continue to rise, new energy vehicles are gradually becoming a popular choice for many consumers. At present, both traditional and emerging car companies are focusing on the new energy vehicle market. In this situation, new energy vehicle enterprises must improve their own competitiveness. Financial statements can give a clear idea of the solvency, development potential and operational capacity of an enterprise. This paper analyzes the financial reports of BYD, one of the most representative new energy vehicle companies in China. By analyzing the company's financial reports in recent years, this paper studies how to give full play to the influence of financial statement analysis on business decisions. The aim of this paper is to propose effective measures as well as reasonable suggestions, so as to facilitate better business decisions by business operators.

Learning to see modern slavery in supply chains through paradoxical sensemaking

AbstractMandatory annual reporting, to improve transparency of working conditions in firms' supply chains, is the favored approach of UK policymakers for reducing modern slavery risks in supply chains. Despite legislation and extensive guidance, annual corporate statements are disappointing, providing little evidence of substantive action. So far though, there has been little primary research of managers' understanding of the phenomenon or their perceived agency in tackling modern slavery. In a qualitative study, employing template analysis, data were drawn from multiple sources, including interviews with 32 managers from three large UK firms in a complex, high‐risk sector (construction). Four focus groups were used to establish credibility of the findings. As managers struggle with how to make sense of where to look, how to look, and what to see, they adopt narrowed perspectives and analogies that inhibit immediate, compelling action. Improved awareness of UK labor supply chain issues has distanced managers further from action relating to global material supply chains. Through analogy with health and safety legislation, which developed over a considerable period, managers justify a wait‐and‐see approach, deferring action. Such convenience framing helps them to avoid issues relating to complexity, control, cost, and (in)visibility. This framing needs to be disrupted for meaningful action to result. Drawing on sensemaking theory relating to paradoxical financial and sustainability objectives, the study suggests how extended legislation and governance may drive more substantive responses that transcend the constraints of business‐case logic.

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.

Measuring profit and performance, a cautionary tale: Birmingham Small Arms c.1911–c.1936

ABSTRACT Prior to the enactment of the Companies Act 1948, the ability of British company directors to largely determine the nature and form of the corporate financial statements published by their company, renders the information provided in those statements highly problematic. Of particular concern were the ability to hide transactions affecting reserve account balances and the lack of any legal requirement for companies which owned subsidiaries to present consolidated accounts. In the light of the problems and pitfalls identified previously in the literature, this study analyses the usefulness of reported profit figures as a means of measuring company performance, through an examination of the published financial statements of the conglomerate manufacturing firm, Birmingham Small Arms Co. Ltd., between 1911 and 1936. Although the analysis, which utilises internal accounting records, suffers from the usual problems associated with a single case study, it does complement earlier findings, thereby extending our understanding of the extent to which directors of British conglomerate companies manipulated corporate financial statements in the interwar years.

중국기업의 사회적책임(CSR)활동과 재무비율이 이익조정에 미치는 영향

[Purpose]This study aims to study how Chinese companies’ corporate social responsibility (CSR) activities and financial ratios affect earning management. In general, companies that perform corporate social responsibility (CSR) activities have an incentive not to earning management, and certain variables among financial ratio variables using corporate financial statements can be useful for managers’ earning management behavior.
 [Methodology]Among Chinese listed companies, the impact of corporate social responsibility (CSR) activities and financial ratios on earning management from 2016 to 2020 was empirically analyzed for A shares of the Shenzhen Exchange.
 [Findings]As a result of empirical analysis, it was verified that financial ratio indicators that have a significant impact on earning management include growth ratio, profitability ratio, liquidity and stability ratio, and activity ratio.
 [Implications]According to these financial ratio variables, it is believed that earning management can be controlled in advance by utilizing financial ratio variables that affect profit adjustment and social responsibility activities.

From fiction to fact: the growing role of generative AI in business and finance

ABSTRACT Generative Artificial Intelligence (AI), such as ChatGPT by OpenAI, has revolutionized the business world, with benefits including improved accessibility, efficiency, and cost reduction. This article reviews recent developments of generative AI in business and finance, summarizes its practical applications, provides examples of the latest generative AI tools, and demonstrates that generative AI can revolutionize data analysis in industry and academia. To test the ability of generative AI to support decision-making in financial markets, we use the ChatGPT to capture corporate sentiments towards environmental policy by inputting text extracted from corporate financial statements. Our results demonstrate that the sentiment scores generated by ChatGPT can predict firms’ risk-management capabilities and stock return performance. This study also highlights the potential challenges and limitations associated with generative AI. Finally, we propose several questions for future research at the intersection of generative AI with business and finance.

The Effect of Fraud Diamond on Financial Statements of Insurance Companies in Indonesia

The Jiwasraya corruption scandal and related cases revealed significant financial distress, opportunities for fraud, rationalization of actions, and the ability to manipulate financial statements, emphasizing the importance of research and awareness in addressing fraudulent financial statements in the insurance industry. This study aims to analyze the impact of the fraud diamond, composed of pressure, opportunity, capability, and rationalization, on corporate financial statement fraud. This study is crucial due to the pressing issue of fraud incidents at several state-owned insurance firms in recent years. An insurance company serves as the sample for this research, using STATA to utilize 55 financial statement observations from 2016-2020, with a research duration of 5 years. The study's findings were not able to establish that the fraud diamond, composed of pressure, opportunity, capability, and rationalization, affects financial statement fraud. This contradicts the results of previous examinations and marks the first instance of rejection of a hypothesis established through regression modeling in this field of study. The occurrence of financial statement fraud may vary among sectors based on the results of this study. This study contributes to understanding fraudulent financial reporting in the insurance industry, emphasizing the importance of pressure and opportunity as key factors. 

LITERATURE REVIEW: FRAUD AUDITING IN INDONESIA

Financial statement fraud or corruption is one of the most common types of fraud committed by company executives. Pressure, opportunity, rationalization, arrogance, and the ability to commit fraud are all factors that contribute to financial statement fraud. The role of the auditor is critical in detecting signs of fraud in financial reports. Therefore, the researchers wish to conduct a literature review on audit fraud, focusing on the role of auditing in identifying fraudulent corporate financial statements in Indonesia. Auditors play a crucial role in detecting fraud in a financial report, according to the findings of this study, which the researchers hope will provide future researchers with insight and references for research in the field of fraud auditing and inform the public of this fact.