Financial Accounting Research Research Articles

Topic modeling of financial accounting research over 70 years

AbstractI utilize latent Dirichlet allocation and dynamic topic model that are machine learning algorithms across a data set encompassing 25,990 financial accounting articles issued from 1956 to 2023 in 16 accounting journals, and impartially ascertain 20 research topics. The topics of mergers and acquisitions, disclosure and internal control, and political connection exhibited the most rapid expansion, whereas management control systems, earnings management, and valuation experienced the greatest contraction from 2014 to 2023. I also catalog the most referenced papers for each topic and highlight the most swiftly expanding and contracting topics within the realm of 21,620 SSRN working papers. Additionally, my analysis reveals a declining trend in the concentration of research interests within published articles over the preceding seven decades. This research on topic classification itself will aid accounting investigators in bypassing superfluous efforts and fostering increased interdisciplinary research.

Navigating Global Cyberspace: An Extensive Bibliometric Journey through Digital Financial Literacy and Accounting Research

Despite the growing interest in digital financial literacy and accounting research, there is a lack of a comprehensive summary in the literature. This study aims to fill this gap by providing an up-to-date overview of the literature on digital financial literacy and accounting. Using the PRISMA protocol and VOSViewer, we analyze extensive data from Scopus spanning 2013 to 2024. Similarly, this study encompasses of co-occurrence and co-authorship analyses. The findings show a significant increase in related research, reaching its peak in 2023, driven by increased publishing opportunities and efforts, particularly in Asia and the United States. Strong organizational support, such as universities and funding sponsors, also contributes to this growth. In conclusion, this study offers a clear synthesis of the literature on digital financial literacy and accounting, suggesting potential areas for future research.

SIX YEARS OF FINANCIAL ACCOUNTING RESEARCH IN INDONESIA

This study describes the development of financial accounting research in Indonesia, consisting of 9 nationally accredited journals in Indonesia. The sample obtained from 2017 to 2022 obtained 58 articles discussing financial accounting. Based on the analysis results, most research on financial accounting in Indonesia was published in JAB at 17%. In comparison, JRAP and e_JRA were 13% each. Of the 58 articles obtained, 14 were qualitative methods research, while research using quantitative methods was 44. In qualitative research, the most widely used method is descriptive analysis. In contrast, the most widely used method in quantitative research is multiple linear regression. This research provides historical evidence of the development of research on financial accounting in Indonesia so that it can be a literature review material for future research that will conduct the same research in Indonesia.

Replication of Audit and Financial Accounting Research: We Do More than We Think

SYNOPSIS There is a widespread concern that a “replication crisis” exists in the social sciences. Accounting researchers echo this claim and add that little accounting replication research is published. We carry out a conservative study to identify articles published in six leading accounting journals from 1970 to 2016 that attempt to replicate prior financial accounting and auditing research. We find 248 articles that attempted to replicate, in whole or in part, 298 published papers’ results typically in the context of extending the original finds. Highlights of our findings include: (1) the number and percentage of replicating articles have increased over the period; (2) 60 percent of all replication attempts are completely successful, 29 percent report mixed success, leaving 11 percent that fail to replicate. These findings suggest that the accounting academe publishes more replication research than previously documented and that published results are relatively robust when replicated. Data Availability: Data are available from the authors upon request.

APAKAH PENGUNGKAPAN KEBERLANJUTAN DAN PELAPORAN TERINTEGRASI DAPAT MENURUNKAN RISIKO IDIOSINKRATIK?

Abstract - Risk is something that most investors encounter when investing. Idiosyncratic risk is a risk that can be controlled and diversified to lessen it. Idiosyncratic risks arise due to internal firm conditions, which can stem from manager policies. This study aims to investigate the impact of sustainability disclosure and integrated reporting on idiosyncratic risks. This quantitative study uses research data from the financial reports of manufacturing businesses listed on the IDX between 2016 and 2020, found at www.idx.co.id. This study also makes use of data from www.financial.yahoo.com. Furthermore, this study uses monthly data on 10-year government bond yields from www.bloomberg.com. Purposive sampling was used to select 555 observations (firm-year) for this study. According to this study, sustainability disclosure has a beneficial influence on idiosyncratic risk when utilizing both the market and Fama-French models. Using the Fama-French model, this study discovered that integrated reporting had a favorable influence on idiosyncratic risk. Integrated reporting, on the other hand, has no influence on idiosyncratic risk when utilizing the market model. This study extends capital market-based financial accounting research by using non-financial data and information essential in making investment decisions in addition to financial report figures.
 Keywords: Disclosure; Investment; Non-Financial; Non-Systematic Risk

Manager's Income Smoothing Actions Due to Debt Policy: The Moderating Role of Tax Avoidance

The manager carries out income-smoothing actions to guard the stability of profit. Stability and high profits are considered an indicator of a low-risk company. The manager made this effort to increase investor belief in providing the company with source funds. This study aims to test the effect of debt policy on action income smoothing. This research also includes tax avoidance as a moderating variable in this association. This study employs data derived from financial statements of listed manufacturing companies on the Indonesian Stock Exchange from 2016 until 2021—research data sourced from www.idnfinancials.com. Samples employed in this study totaled 564 observations (firm-year). Testing hypothesis is using analysis of multiple linear regression for panel data. This study finds that debt policy is positively associated with income smoothing. However, tax avoidance has no role in moderating the association between debt policy and income smoothing. This study contributes to developing literature on income smoothing in financial accounting research frameworks using different proxies in the Indonesian context.

The Moderating Role Of Sustainability Disclosure: Tax Avoidance And Firm Value

A company's performance is very important because it will impact the decision-making of shareholders and investors. As reflected in increased share prices, companies with good performance tend to increase company value. One factor that can influence company value is tax avoidance. This research examines the effect of avoidance on company value with sustainability report disclosure as a moderating variable. This research uses quantitative data from financial and sustainability reports of banking sub-sector companies from 2020 to 2022. Data was obtained from the websites of each company. Using purposive sampling, 41 samples were obtained and tested using multiple regression analysis for cross-section data. This research concludes that tax avoidance has a negative effect on company value. Meanwhile, sustainability disclosures do not mediate. This research contributes to providing capital market-based financial accounting research literature from the perspective of company policy as reflected in the financial information of banking companies in Indonesia.

Corporate Social Responsibility Disclosure, Intellectual Capital Disclosure, Risk Disclosure, Cost of Capital: Moderating Role of Earnings Management

Purpose : This study investigates the effect of corporate social responsibility, intellectual capital disclosure, and risk disclosure on the cost of capital and the roles of earnings management in moderating these effects.
 Method : This study employs secondary data from annual reports and financial statements of 79 manufacturing companies listed on Indonesia Stock Exchange from 2016 to 2020. Using purposive sampling, the sample obtained in this study is 395 observations. The data were analyzed using multiple linear regression for panel data.
 Findings : This study finds that corporate social responsibility is negatively associated with cost of capital. Other than that, intellectual capital disclosure and risk disclosure are not associated with cost of capital. Moreover, earnings management failed to moderate the association between corporate social responsibility and the cost of capital. This study also found that earnings management strengthens the negative impact of intellectual capital disclosure on the cost of capital. In contrast, earnings management weakens the negative effect of risk disclosure on the cost of capital
 Novelty : This study places the moderating role of earnings management on testing the three non-financial disclosures on the cost of capital so that this study can complement the development of financial accounting research related to non-financial information.
 Keywords : Sustainability Disclosure; Intellectual Capital Disclosure; Risk Disclosure; Earnings Quality; Cost of Capital

Penerapan Akuntansi Zakat (PSAK No. 109) pada Wakaf Infaq Sadaqah (Studi pada Wakaf Infaq dan Sedekah (WIZ) Kabupaten Bone

Currently, an Islamic-based economy has become a necessity for the people. The economic empowerment of the ummah is increasingly being carried out by several Islamic financial institutions. They are trying so that the Islamic economy is not only an alternative for Muslims, but indeed it must be the only option for them. This is to prevent the ummah from all kinds of ribāwi financial practices carried out by conventional banks. In addition, the utilization of zakat, donations/alms originating from Muslims must be managed as early as possible by professional zakat management institutions so that they can be distributed effectively and on target as part of an effort to empower the people's economy. This research belongs to the scope of financial accounting research, because it discusses accounting treatment, measurement, recognition, reporting systems, and company policies. Based on the characteristics of the problem, this research is classified as descriptive research. The research approach used is a qualitative approach, namely a study that intends to understand the phenomenon of what is experienced by research subjects such as behavior, perceptions, motivations, actions and others in a holistic manner and by means of descriptions in the form of words and language, in a special natural context and by making use of various natural methods. Zakat funds were obtained from muzakki who came directly to the amil zakat agency (WIZ) in Bone district and received a receipt as proof of receipt of zakat where the first sheet of the note was given to the muzakki and the second sheet was kept by the amil zakat agency. And the distribution of zakat funds is directly given directly to 8 asnaf who are entitled to receive and record the distribution of zakat funds. In the recording of the amil zakat agency (WIZ) in Bone district where it uses a double entry system when zakat funds are distributed it will reduce zakat funds. Zakat accounting treatment according to PSAK 109 has been implemented but not optimal. One of the reasons is that zakat amil bodies in general are from departments that are less basic regarding zakat accounting. The form or model for calculating zakat accounting at WIZ Bone district presents a report on financial position, a cash flow statement, and a report on changes in funds. Keywords: Accounting, Reports, WIZ, Zakat.

Sustainability Disclosure from Capital Structure and Firm Size: Does Independent Commissioner Matter?

This study examines whether capital structure and firm size affect sustainability disclosure. In addition, this study also examines the moderating role of independent commissioners in the relationship between the independent and dependent variables. This study employs data from financial statements, annual reports, and sustainability reports of consumer goods industry companies listed on the Indonesia Stock Exchange from 2017 to 2020. The data sources are derived from www.idx.co.id and www.idnfinancial.com and the company's official website. Based on purposive sampling, the total sample used in this study is 148 observations. Hypothesis testing is done by using multiple linear analyses for panel data. The results suggest that capital structure is not associated with sustainability disclosure, while firm size is positively associated with sustainability disclosure. This study also finds that independent commissioners fail to weaken the negative effect of capital structure on sustainability disclosure nor the positive effect of firm size and sustainability disclosure. This study has complemented the literature on the importance of sustainability disclosure as nonfinancial disclosure in the financial accounting research context.

Factors affecting income smoothing practice: Insights from the Indonesian capital market

The objective of this quantitative study is to examine the factors that influence income smoothing practices in the Indonesian capital market, including share ownership by groups/institutions, family-owned firms, and industrial sectors, with firm size serving as a control variable. This study used a purposive sampling technique to acquire a sample of 112 businesses over the years 2017 to 2021, yielding 560 observations by using a panel data approach. The findings indicate that neither share ownership by a group/institution nor a family-owned firm has a substantial impact on income smoothing practice. Among industrial sectors, only the sector of consumer products significantly influences income smoothing. As a control variable, business size has a favorable influence on income smoothing. This paper provides empirical evidence on financial accounting research, namely on the subject of income smoothing and the quality of earnings reporting, despite a number of limitations, such as a relatively short observation period.

Factors influencing the behavior of young investors’ investment decisions: The emerging market analysis

The objective of this study is to examine the impact of financial literacy, locus of control, and technological advancement on the investment behavior of young investors when making decisions in the Purwokerto City of Indonesia Stock Investors group members. This study employs a quantitative methodology and questionnaire-based data collection techniques. Using a technique of purposive sampling on the population of 272 members of the Purwokerto City of Indonesia Stock Investors group, the sample for this study consisted of 105 individuals. The findings of statistical analysis of data utilizing multiple linear regressions show that financial literacy has a positive effect on investment decisions, locus of control has no effect on investment decisions, and technological advancement has a positive effect on investment decisions. With limitations such as the population only from one city of Indonesia, i.e., Purwokerto, this study contributes to advancing knowledge, particularly in financial accounting research, more specifically to evaluate factors affecting behavioral young investors in investment decision-making. Therefore, it is expected to benefit future research on a similar topic.

Positive accounting theory

Accounting is broadly defined as a measurement and communication technique for providing relevant economic information to the users. The unprecedented development in quantitative methods, behavioral science, and an unbelievable spurt in information technology and intermediaries in the financial domain stimulates the researchers to apply quantitative models and empirical analysis to have an in-depth understanding of the accounting phenomenon and how the accounting information is provided to the users. These developments have played a key role in redefining the nature of accounting and expanding its scope. One most important conclusion of this research direction has been the explanatory model, i.e., the 'Positive Accounting Theory. The positive research in accounting was predominant during the mid-1960s and contributed to a dramatic shift in financial accounting research. The positive accounting theory attempts to describe and better predict accounting practices. This theory is highly dependent on the task undertaken in economics, and it mainly borrows the principles from the efficient market hypothesis, capital assets pricing model, and agency theory.

Qualitative research on financial accounting – an emerging field

PurposeThe purpose of this Editorial is to reflect on the potentials and challenges of qualitative research in financial accounting and introduce the four papers included in this Special Issue.Design/methodology/approachThe authors draw on and discuss extant literature and the papers included in the Special Issue to develop our assessment of the current state of the field of qualitative financial accounting research and possible future paths ahead.FindingsThe authors observe that qualitative research on financial accounting is still an emerging field with substantial further research potential.Research limitations/implicationsThe authors outline future potentials for qualitative accounting research.Originality/valueThis Editorial contributes to studies on the state of academic research in (financial) accounting.

Replication of Audit and Financial Accounting Research: We do a lot more than we think

Replication of Audit and Financial Accounting Research: We do a lot more than we think

Financial accounting for deferred taxes: a systematic review of empirical evidence

Deferred taxes—resulting from differences between financial and tax accounts—have been a long-standing, contentious issue in financial accounting regulation, practice, and research. Debates on concepts and standards have been accompanied by doubts around whether and the extent to which deferred taxes provide relevant information for financial statement users and are employed by firms to manage their earnings. This paper systematically reviews the body of empirical evidence that has emerged over the last three decades on deferred taxes in the fields of value relevance and earnings management. A bibliographic analysis and a narrative synthesis are presented within a thematic categorization framework. Key results indicate that existing research focuses on the US setting. There is substantial evidence for the value relevance of various deferred tax items but limited evidence that firms use deferred taxes to manage their earnings. The findings suggest implications for both future research and the regulatory debate.

Six Impossible Things Before Breakfast

Six Impossible Things Before Breakfast

The Changes and Development of Financial Accounting Theory and Practice in the E-commerce Era

The roadmap of financial accounting in the era of sustainable development of e-commerce may help organizational accounting methods to achieve sustainable development. Based on the author's learning and practical experience, this article aims to provide ideas for further financial accounting research, so that the industry can pay attention to the impact of changes in the situation on financial accounting and make corresponding changes.

Management expenses in the context of Federal Accounting Standard (FSBU) 5/2019 – Inventories

Subject. This article deals with the issues of accounting and write-offs of management costs and disclosure in reporting, their role for top managers, as well as improving the delineation and qualification of the types of costs to be accounted for as managerial, and the impact of the proposed approaches on reporting performance. Objectives. The article aims to justify the need for a clearer definition of management costs and a more logical, cost-effective division of costs into production and management ones. Methods. For the study, I used the systems approach, logical generalization and abstraction. Results. The study shows that not all expenses that organizations account for as the management ones are actual. Many of the costs relate to production activities. Since the methodological guidelines for accounting for material and operational costs have been abolished in connection with the adoption of FSBU 5 – Inventories, they may not be applied any more. Conclusions and Relevance. The subject terminology and a clear concept of management costs need to be defined. IFRS 2 – Inventories gives a more logical notion of management costs in combination with administrative costs. This makes it possible to adapt the accounting according to the Russian standards to the running accounting practice with a minimum recalculation. The presented study results are intended to develop theoretical views on the formation of the actual cost of finished products, the full cost of implementation and interpretation of these indicators for management. The results can be used for scientific and practical activities related to financial and management accounting research.

Challenges to Experimental Audit JDM Research and the Role of Online Platforms in Resolving These Challenges

SUMMARY We survey experienced experimental researchers to understand their beliefs about the biggest challenges facing audit JDM research. By far, the biggest challenge identified by respondents is access to experienced participants. This creates a major problem as examining important research questions often requires hard-to-access professionals, and the availability of these participants has decreased over time. Other important challenges to audit JDM research include the publication process (including demands for multiple experiments in a single study involving experienced participants) and demonstrating practical contributions. We also compare responses about the challenges facing financial and managerial accounting researchers, in order to better understand the problems that are unique to audit researchers. We discuss how the challenges identified might be either mitigated or exacerbated by the use of various online platforms. We discuss data quality issues and potential solutions, provide suggestions on potential new sources of participants, and possible ways forward for audit JDM research.