External Users Of Information Research Articles

Review of the Impact of Corporate CSRD on the Capital Cost of Debt

With the expansion of credit scale, green credit releases a large number of ecological dividends. CSR reporting is different from tightly regulated financial reporting and there are no uniform standard to regulate and monitor its disclosure. At the same time, because CSR reports mainly contain non-financial information of text, and text is more flexible and easier to manipulate than numbers, compared with financial reports, CSR reports have a large space for subjective manipulation, which runs counter to the original intention of reducing information asymmetry. Existing studies have confirmed that CSR intonation can provide incremental information to external information users, so it is worth further exploring whether creditors will obtain information from CSR reports when making credit decisions. Therefore, this paper tries to take CSR intonation as the entry point, summarize the motivation and consequences of CSRD, the relationship between social responsibility and debt capital cost, discuss the impact of CSRD behavior on the financing ability of enterprises, further improve the theoretical basis and conclusion of CSRD and enterprise financing ability, and promote the sustainable development of enterprises.

The gap between need and ability to use accounting information in public sector financial reports

This study focuses on predicting the needs, purposes, and usability of accounting information in general-purpose financial reports (GPFRs) to improve accounting theory significantly. Accounting reform in the public sector aims to provide reliable and valuable information to users. The study surveyed 374 public organizations using a survey questionnaire between March and June 2023. Collected data were tested for reliability using Cronbach's Alpha coefficient and regression analysis using SPSS 29 software. The research findings indicate that users of accounting information (AI) within an organization have a greater need for and a better understanding of the usefulness of AI compared to external users; users in the public sector tend to use AI more frequently for accountability purposes; and AI for decision-making plays a more significant role compared to AI for accountability in terms of enhancing organizational performance. The findings have important practical implications. Firstly, accountability should be prioritised when developing a GPFR framework for the public sector. Secondly, in order to increase the usability of the AI, it is important to improve the ability of external users to understand and use the information on GPFRs. Finally, the strength of the connection between internal and external information users determines the level of usability of accounting information.

PepsiCo's Earnings Analysis and Strategic Management - Based on SWOT and PF5 Analysis

Global production and economic conditions are gradually shifting and improving as the COVID-19 scenario throughout the world evolves. Studying the financial statements and other publicly available information of beverage industry companies can help external information users understand the specific situation and support investors, the market, and other investors in making investment and decision-making decisions. The overall strategy and economic situation of these companies gradually become a concern. As a major player in the market, PepsiCo is well-represented, and its analysis may provide valuable insights into the current situation of the industry. Based on these insights, one can draw conclusions about the existing and potential future conditions of other businesses. The overall financial situation and corporate strategy of PepsiCo's financial statements and public disclosures from 2020 to 2022 are further examined and analyzed in this paper. Additionally, the real present status of the company's revenue shifts and overall strategy is forecasted and analyzed.

재무제표의 비교가능성과 기업의 ESG 활동

[Purpose] The purpose of this study is to investigate the relationship between the comparability of financial statements and a company's ESG activities. With the growing social interest in corporate ESG activities, which has been positively associated with their economic effects, companies with higher comparability may show more active ESG activities under greater external monitoring. If external information users of companies with high comparability of financial statements can easily obtain relevant company information, they can collect and interpret more information efficiently and effectively, leading to more active external monitoring of corporate activities.
 [Methodology] Regression analysis was conducted using the ESG ratings evaluated by the Korea Institute of Corporate Governance and Sustainability (KCGS) from 2012 to 2020 and the comparability variables of financial statements. Additionally, the relationship between comparability and ESG activities was analyzed by dividing the sample depending on the levels of information asymmetry, and by alternative variable of the comparability and ESG activity to ensure the robustness of the research results.
 [Findings] The results show that companies with higher comparability have more active ESG activities, particularly in governance and environmental－related activities, which showed a significant positive relationship. Moreover, the positive relationship between the comparability and ESG activities was more evident in companies with greater information asymmetry, indicating that comparability improves the information environment surrounding companies and strengthens the monitoring function of ESG activities.
 [Implications] The study contributes to academic knowledge by demonstrating that the attribute of accounting information, such as the comparability of financial statements, affects a company’s ESG activities.

Impact of Accounting Regulation in the Republic of Serbia on the Quality of Financial Reports for Strategic Management Purposes

The main purpose of the new accounting regulation that has been applied in the Republic of Serbia is the harmonization and improvement of the quality of financial reports for the needs of company management and external users of information (primarily, investors and creditors). Based on the above, the main goal of the research in this paper is to indicate whether the financial statements in the Republic of Serbia, which are based on the project of the Board for the Application of International Accounting Standards (IASB), can be compared with the financial statements in the European Union, and whether on that basis represent reliable informational support for strategic management. The research findings show that the immediate and exclusive application of IFRS in the Republic of Serbia has become a limiting factor in the informational power of financial reports for the purposes of strategic management. Based on the obtained research findings, it is possible to conclude that the accounting profession is to a greater extent dedicated to the traditional, classic requirements of the accounting function related to the preparation of financial statements, cost-financial control, while it is to a lesser extent dedicated to strategic management.

KUALITAS ASSURANCE STATEMENT ATAS SUSTAINABILITY REPORTS

The background is Sustainability report is one of the things that has attracted the attention of stakeholders recently because it is able to image company performance from three dimensions, namely the economic dimension, the environmental dimension, and the social dimension. The report is accompanied by an assurance statement by a globally recognized body or professional. Assurance statement or assurance engagement is a condition where a practitioner provides a conclusion on an information, which is designed to increase the trust of external information users. This study aims to determine the quality of state assurance in the sustainability report of companies in Indonesia. Using agency theory, legitimacy theory, stakeholder theory, assurance statement and ISAE 3000 & AA1000AS. The object of this study is a company listed on the Indonesia Stock Exchange (IDX) participants and winners of the Asia Sustainabilty Report Rating (ASRRAT) for the 2017-2021 period which publishes a complete and sequential sustainability report. The research design used is a descriptive study. The results of the analysis show that the quality of assurance statements in Indonesia, assurance statements issued by assurance providers for winning companies and participants of the Asia Sustainability Report Rating (ASRRAT) for the 2017-2021 period and the quality of assurance statements issued by assurance providers.

МЕТОДИЧНІ АСПЕКТИ ОБЛІКУ ЗАПАСІВ ПІДПРИЄМСТВ

The article describes the main elements of the methodology for displaying the company's inventories and transactions with them in the accounting system. The results of the study indicate that, based on accounting data, interested persons (internal and external users of information) have the opportunity to assess the state of provision of the company's activities with material resources, the possibilities and evaluation results of their use, as well as the impact of relevant characteristics on the expected consequences of the entity's functioning entrepreneurship. In the context of solving accounting tasks, the main characteristics of inventories are their existence in material form, the presence of a certain functional purpose, a short period of their use, which is limited to one year or one operating cycle, as well as the possibility of providing them with a value assessment. It has been established that the material form of inventories makes it possible to determine their presence and the existence of transactions with them for accounting purposes on the basis of organoleptic methods (observation, inventory, etc.), as well as to assess the possibility of their use for solving the tasks of financial and economic activity. Based on the results of the study, it was determined that in case of changes in the conditions and technologies of using the company's inventories, the accounting system should establish whether there are grounds to recognize material resources as inventories in the future due to a possible change in the duration of their existence. For accounting purposes, it is proposed to identify a group of inventories on the using of which certain restrictions are imposed. It was determined that accounting measures should provide for the registration of inventories at the stages of their arrival at the enterprise, storage, transformation and disposal. The main goal of accounting measures regarding inventories and transactions with them is recognized as meeting the information needs of various groups of users of the relevant data. The accounting system must record changes in the quantity and structure of inventories, dynamics of valuation, and also respond to circumstances that depend on the possibility of recognizing inventories as assets or its termination.

소유구조와 ESG등급이 투자효율성에 미치는 영향

This study investigated the effects of ownership structure and ESG performance on investment efficiency. The variable of investment efficiency was measured based on the research results of Biddle et al.(2009), and the study period was from 2013 to 2021. The results of the study are as follows.
 First, as a result of empirical analysis of the effect of ownership structure on investment efficiency, the foreign ownership ratio has a positive effect on investment efficiency, and the ratio of largest shareholders also has a positive effect on investment efficiency. It was found that ownership structure had a positive effect on investment efficiency.
 Second, as a result of empirical analysis of the effect of ESG performance on investment efficiency, it was confirmed that E performance had a positive effect on investment efficiency, and that 'G' grade also had a positive effect on investment efficiency. However, the 'S' grade did not appear significantly, but when viewed individually, the S grade also appeared to have a positive effect on investment efficiency. Third, as a result of empirical analysis of the effect of the interaction effect of ownership structure and ESG rating on investment efficiency, it was found that the interaction effect between foreign ownership ratio and ‘E’ rating had a positive effect on investment efficiency. Next, it was found that the interaction effect between the largest shareholding ratio and the grade ‘E’ also had a positive effect on investment efficiency. However, it was found that the interaction effect between the major shareholding ratio and the 'S' grade had a negative effect on investment efficiency.
 The implications of this study are that the interaction effect of ownership structure and ESG performance, which are major variables affecting investment decision-making, was verified, and it is meaningful in that it can provide external information users with a direction in making investment decisions.

직급별 감사시간과 총감사시간이 기업신용등급 및 타인자본비용에 미치는 영향

Using audit hours by rank-specific in Korean listed firms from 2014 to 2019, we examine whether there is the effect of audits effort on the credit ratings (RATING) and the cost of debt (COD), and investigate how audit effort mediates relationship between ROA and RATING (or COD). Specifically, we analyze whether external information users (i.e., credit rating agencies and creditors) perceive increase in auditor’s effort (i.e., rank-specific audit hours, total audit hours) as a proxy for audit quality or audit risk. Overall, our results provide some evidence that the market reacts negatively to more audit hours, and the results imply that market participants perceive that more audit effort is associated to firms with the higher audit risk. We also find that the effect of more audit hours weaken the positive relation between ROA and RATING or negative relation between ROA and COD. We also find that the frequency of auditor’s communication with corporate governance is negatively (positively) associated to RATING (or COD). Thus, this study contributes to the literature on audit quality/risk by showing novel evidence that the announcement of more audit hours are perceived a proxy for audit risk rather than audit quality from rating agencies and creditors.

Audit in ensuring the effectiveness of tourism management

Due to the spread of the coronavirus pandemic, the losses of the tourism industry in Ukraine in 2020 are estimated at more than 1.5 billion dollars. USA. The current situation requires an adequate response from the government and business, which leads to an increased need for the use of scientific tools to justify the options for optimal economic development and relevant management decisions. Under such conditions, the key to sustainable development of the tourism industry should be the maximum use of management tools: management accounting, analysis and audit, implemented in the concept of their effective interaction. The aim of the article is to improve the theoretical and praxeological principles of management accounting, analysis and audit in the tourism management system, by developing the concept of their synergy and substantiation of prospects for implementation as a key imperative for sustainable development of the tourism industry. The economic and social significance of tourism in modern conditions is determined by the fact that the tourism business contributes to economic development, developing related industries, promotes employment, growth of gross domestic product, is a significant source of foreign exchange earnings. Experts from the World Tourism Organization emphasize the historical sustainability of tourism and its ability to create jobs after crises, and emphasize the importance of international cooperation and ensuring that the sector becomes a central part of the recovery effort after the coronavirus pandemic. To increase the efficiency of the tourism industry, as an imperative for sustainable development of the national economy, it is advisable to use such management system tools as management accounting, analysis and audit, implemented in the concept of effective interaction. The article identifies the place of a separate concept in the formation of the paradigm of management accounting, analysis and audit. One of the concepts that contributes to the modern audit paradigm is the concept of synergy between internal and external audit proposed in this study. A qualitative feature of the proposed concept is the two-vector direction of its action, as it is aimed at meeting the needs of internal and external users of information, which fundamentally distinguishes it from other concepts of audit. The proposed scheme of management of the tourist enterprise on the basis of interaction of administrative accounting, business analysis and audit will promote their practical realization in activity of the subject of tourist business. One of the concepts that contributes to the modern audit paradigm was the concept of synergy of internal and external audit proposed in this study. A qualitative featureof the proposed concept is the two-vector direction of its action, as it is aimed at meeting the needs of internal and external users of information, which fundamentally distinguishes it from other concepts of audit. The practical implementation of the interaction of management accounting tools, business analysis and audit at the micro level will also be facilitated by the developed scheme of tourism enterprise management based on the interaction of management accounting, business analysis and audit.

Top executives’ school-tie connections and management forecast disclosure

ABSTRACT This paper investigates whether top executives’ dependence on social connections has an impact on the information environment of listed companies. Specifically, this paper explores the role of school ties between firms’ and suppliers’ top executives on management earnings forecasts, an important channel of public information disclosure. We find a negative relation between a firm’s school ties with its suppliers and the likelihood/frequency to issue management forecasts, indicating that top executives’ school ties in a way substitute management forecasts and become the information channel along the supply chain. Further, we find the association is stronger when the firm faces higher proprietary cost or operational uncertainty, but the association becomes weaker when suppliers have bargaining advantage over the firm. Finally, we find the decrease in management forecast disclosure driven by school-tie connections weakens the access of firm-specific information for external information users, which may put individual investors in a more vulnerable position.

Methodology of complex analysis of tangible fixed assets

Tangible fixed assets are used in production, provision of services, renting and for administrative purposes. Various internal and external information users are interested in this type of assets. With regards to the significance of such assets, it is very important to carry out their detailed analysis. The article recommends a methodology of complex analysis of tangible fixed assets that consists of the following stages: 1) compositional analysis; 2) structural and dynamic analysis; 3) change analysis; 4) technical condition analysis; 5) usage analysis; 6) profitability analysis. Application of this methodology allows one to objectively assess the condition of the tangible fixed assets and make management decisions in order to use them better and improve the enterprise's activity results.

The Impact of Accounting Harmonization on Financial Statements Quality in Serbia

The general process of the world market globalization and the great influence of international financial organizations, especially the IMF and the World Bank, caused the need for standardization and harmonization of financial statements of the participants involved in international economics and trade. In this process, in the Republic of Serbia, the International Accounting Standards Board (IASB) and the IASB.S project for IAS/IFRS implementation have a crucial role. By adopting the International Financial Reporting Standards - IFRSs (including International Accounting Standards - IASs), financial statements prepared in Serbia may be comparable with financial statements in other countries. Starting from this, the main goal of the research is to indicate whether the financial statements in Serbia based on the IASB project can be comparable with financial statements in other countries, and on this basis can they satisfy the needs of external users of information (investors, creditors and others). In doing so, it points to the experience in the Republic of Serbia, the accounting practice and experiences of other countries, above all members of the European Union. The results of the research show that, in addition to the IAS/IFRS, the US generally accepted accounting principles (GAAPs) and the Directive 34 of the European Union represent the key segments of professional regulation contributing to greater accounting harmonization, and on this basis, the higher quality of financial reporting. Most countries that have national accounting regulations align the accounting rules in the most important issues with those regulations.

Research on the Factors Influencing the Quality of Internal Control Information Disclosure in China

An increasing number of financial fraud scandals have burst, and the effectiveness of internal control of listed companies has been questioned. Therefore, both listed companies themselves and external information users such as investors and bondholders are in urgent need of finding a reliable and reasonable way to understand the enterprise's internal control status. From the perspective of listed companies, the disclosure of internal control information is the first way for the managers to complete the fiduciary duty, and secondly, it is an important way to enhance the managers' awareness of internal control. From the perspective of external information users, disclosure of internal control information can provide information which can help the investors to make decisions besides the information of the financial report. At the same time, it can also increase the reliability of the financial reports used by the investors. Based on the analysis of the influencing factors and existing problems of disclosure of internal control information in China, then we making some suggestions.

CAPITAL STRUCTURE ANALYSIS OF THE MEDICAL DIAGNOSTIC-CONSULTATIVE CENTERS IN VARNA (absolute indicators)

SUMMARY: The capital structure analysis of medical institutions is related to the assessment of their financial sustainability. The degree of their financial sustainability indicates the extent to which the medical institution is exposed to financial risk. This financial risk is related to the use of foreign capital (debts, loans, etc.) and it is defined as the probability of insolvency and possible bankruptcy due to the existence of debts which could not be repaid at some point in the foreseeable future. Objective: To analyze the capital structure of the medical diagnostic-consultative centers in Varna city and on this basis to assess their long-term solvency and existence of financial risk. Materials and Methods: The materials for the study are the published annual financial statements (up to 05. 01. 2016) in the Commercial Register for the period from year 2008 to 2014 of all MDCCs (Medical Diagnostic Consultative centers), registered in Varna - 9 in total. In the study are applied logical-mathematical methods (comparison, grouping, detail, graphical method); financial and accounting analysis (balance sheet analysis; analysis of absolute ratios for financial sustainability). Results: Upon analysis of the capital structure of MDCC’s are studied the main absolute indicators characterizing the conditions for financial sustainability and the existence of financial risk regarding the solvency. A table represents the overall assessment of the degree of financial sustainability of the companies according to the type and structure of the fulfilled criteria. It was ascertained that for year 2014, DCC 3, 4, 5 and 8 have met all the conditions and according to them these hospitals have very high financial sustainability. DCC 7 has an average financial sustainability, DCC 1 and 2 are in a financial crisis and DCC 6 and 9 are facing bankruptcy. It must be emphasized that nearly half of the studied health care organizations (DCC 1, 2, 6 and 9) need urgent intervention by the owners regarding the preparation of remedial measures and programs, revaluation of assets, reduction of capital, reorganization, restructuring and others. Regarding the Municipal DCC’s that have the same owner - Varna Municipality, an individual approach for each consultative center should be applied, depending on the different nature and specifics of the activity. A strict monitoring of the financial performance and discipline is necessary. Conclusion: The capital structure analysis allows to all interested external users of information to evaluate the financial sustainability of the health care organizations, as well as their ability for debts repayment in the future.

국방통합재정정보 데이터 효율성 향상 방안 연구

This study is the context about an introduction of a bookkeeping by double entry & accrual base accounting which is the turning point of National Accounting and defense integrated financial management which is delivered following system Digital Budget Accounting system, in other words about something to do with the improvement of efficiency of financial information data. National defense Integration Financial Information system (NDIFIS) facilitates Project program management and makes the whole process of Defense financial Business manageable in one system. Also, there is a purpose to increase the credibility and transparency of National defense finances by providing internal and external information users with credible financial statements and cost materials. By using data envelopment analysis (DEA) which is a useful method to measuring the efficiency of organization, this study aims to improve the financial information data efficiency by comparing the efficiency of the same type troops and when it comes to the inefficient troops, by offering the certain objective of efficiency.

TRENDS OF THE DISCLOSURE OF INFORMATION ON INTELLECTUAL CAPITAL IN ANNUAL STATEMENTS IN LITHUANIAN ENTERPRISES

Even though the disclosure of data on the intellectual capital of an enterprise is not currently mandatory in financial statements yet more and more enterprises both in Lithuania and abroad supply their annual statements with information on their intellectual capital. That is why the object of this research is the disclosure of information on intellectual capital in annual statements of Lithuanian enterprises while the aim is the discovery of the trends of disclosure of information on intellectual capital as well as a comparison of the obtained results with the data of previous research (Vaskelienė et al., 2008) based on conducting annual reports of Lithuanian joint stock enterprises of the years 2009 to 2012. This research employs the content analysis method and methods of generalization and synthesis of academic writings. The present research reveals that the decrease of information on intellectual capital for external information users disclosed by Lithuanian joint stock enterprises and changes in the disclosure structure were observed in the years 2009 to 2012. It was likely impacted by the decrease of the list of mandatory annual statements, i.e. since 2007 onwards, Lithuanian joint stock enterprises have not been obliged to present annual statements (prospectuses). DOI: http://dx.doi.org/10.5755/j01.em.18.3.4270

Towards a conceptual framework for provider information behaviour

Purpose – The purpose of this paper is to provide a critical discussion of the paucity of research on information behaviour of information providers and to propose a framework for investigating the emerging area of provider information behaviour.Design/methodology/approach – The approach takes the form of a conceptual analysis and literature review.Findings – A multidisciplinary framework is provided to form the basis of further exploration of provider information behaviour.Research limitations/implications – There are various types of information providers and they provide opportunities for exploring and comparing their range of information activities and developing models of provider information behaviour.Originality/value – The paper argues for a new perspective to the study of information behaviour. The paucity of research on internal users of information has not matched those on external users of information over the years. An exploration of provider information behaviour together with its internal i...