Non-accounting Information Research Articles

Kemampuan informasi akuntansi dan nonakuntansi pada “Si Pencabut Ruko Kosong”: Bertahan atau mundur?

This research aims to explore the ability of accounting and nonaccounting information to support management decisions whether to stay or withdraw from the Mixue franchise. This research employs qualitative methods using the interpretivist paradigm, which prioritizing in-depth interpretation of data or findings to express the inside meaning explicitly by paying attention to related aspects holistically. The selected informant in this study has three Mixue franchise branches. Having access to financial and nonfinancial information is crucial for owners in making the right decisions about outlet operations. Moreover, strategic and innovative thinking plays an important role in maintaining and developing the business to survive in the market.

Analysis of the Use of Accounting Information and Non-Accounting Information in Supporting the Decision-Making Process of Lending by PT Bank Suluto, Calaca Branch

In minimizing the risk of non-performing loans, banks need to conduct credit analysis to assess a credit application that contains various information, namely accounting information and non-accounting information. SulutGo Bank, Calaca Branch. The method used in this study is a qualitative method that is descriptive and the data obtained through interviews and documentation. The results of the study show that (1) accounting information is taken into consideration in the credit decision-making process at PT. Bank SulutGo Calaca Branch which is based on the use of financial ratio analysis related to credit (2) Non-accounting information is taken into consideration in the credit decision-making process at PT. Bank SulutGo Calaca Branch which refers to the 5c principle.

Using Backward Design to Incorporate Technology into a Non-AIS Course

ABSTRACT The purpose of this paper is to present a prototype using the Backward Design methodology to enhance a non-Accounting Information Systems (AIS) course with accounting and technology learning objectives. The backward design framework also provides an effective means of documenting that technology-learning strategies are being deployed in the curriculum, an important benefit for accreditation purposes. By illustrating backward design in cost accounting, this paper provides a blueprint that can be adapted and applied to other non-AIS courses, a helpful tool for curriculum redesign—especially for those who hesitate to add technology topics to their accounting courses.

A Study on Disclosure Practices of Selected non-Government Organisations of Gujarat

This research's main objective is to study the disclosure practices of non-government organizations in Gujarat. The study is based on secondary data. The secondary data have been collected from various websites and annual financial statements of the selected NGO. The study population is all the Non-Government Organisations in Gujarat registered Under Trust Act, Societies Act, or Company Act. In this study, 30 Non-Government Organisation has been taken as a sample by using a non-probability purposive sampling technique. In this study, considering Accounting disclosure includes a total of 21 variables include like, Statement of Income and Expenditure, Statement of Receipts and Payments, the Balance sheet Organisation Balance sheet with schedules, Prepare and Present Statement of Cash flow, Prepare Full Annual Report and Disclosure of Audit Report, etc. Non-accounting information disclosure total of 10 items include like, Summary of All Activity conducted during the year, Disclosure of Staff Details, Classification of Male and Female staff Given, Disclosure of List of organizations Partners and Supporter, Disclosure of Special Guest visitor list of NGOs, Disclosure of Feedback of Beneficiary. The researcher observes that Shroffs Foundation Trust and Sahjeevan have the highest score on disclosure of accounting information disclosures. On the other hand, Jeevan Tirth, Saath Charitable Trust, and Shroffs Foundation Trust have the highest score regarding non-accounting information disclosure.

Influence of Non-Accounting Information on Credit Decisions of Microfinance Banks in Kenya

Supporting the operation and administration of microfinance banks over a lengthy of time is becoming a rather difficult and challenging concern for microfinance banks in developing countries. Among other issues, their customers’ non-performing loans greatly affect the microfinance banks profitability, leading to failure to sustain themselves over a reasonable length of time. This calls for proper credit management by the microfinance banks, thus need to manage and formulate policies related to credit risk management. One method is to put in place suitable credit approval methods aimed at reducing loan default rates. This study assessed the influence of non-accounting information that is utilized by microfinance banks in making lending decisions. The research was underpinned by four theories namely; equilibrium theory of credit rating, agency theory, theory of planned behaviour and decision-making theory respectively. The study adopted a quantitative methodology in which case data was gathered using structured questionnaires. In this study the main data collection instrument used was questionnaires which were carefully designed, tested and evaluated to assure validity of the research instrument. The correlation analysis showed that credit history, credit utilization and financial literacy significantly and positively influence credit decision in microfinance banks in Kenya. These findings were confirmed by the regression analysis where credit history, credit utilization and financial literacy each registered a positive and significant beta coefficient. The study made the conclusion that financial literacy, credit utilization and credit history were very instrumental in credit decision making among the microfinance banks in Kenya. It is therefore recommended that microfinance banks keep information about both current and potential borrowers which may be useful on decisions concerning credit to customers. On further studies, this study recommends that similar research be done using other variables to establish which other factors have impact on the credit decisions among microfinance banks in Kenya.

Initial Returns Determinants with the Underwriter’s Reputation as a Moderating Factor

Main purpose- The main purpose of this study is to find out the factors that affect the initial return. Accounting information and non-accounting information are components that determine the initial return that needs to be considered.Method - The population used is all companies that conducted initial public offerings (IPOs) on the Indonesia Stock Exchange (IDX) in the 2016-2020 period. In this study, the sampling technique used was non-probability sampling with a saturated sample technique of 135 companies. This study used multiple linear regression analysis to test its hypothesis.Main Findings-The results of the hypothesis testing concluded that the return on assets has a positive and significant effect on the initial return. The underwriter's reputation was able to moderate the relationship between return on assets and initial returns. The debt-to-equity ratio has a significant negative effect on the initial return. The underwriter's reputation was able to moderate the relationship between the debt-to-equity ratio and initial return. The current ratio positively and not significantly affect the initial return on investment. The underwriter's reputation was able to moderate the relationship between the current ratio and the initial return. The company's size positively and significantly affects the initial return. The underwriter's reputation was able to moderate the relationship of company size to initial return. Earnings per share have a negative and significant effect on initial returns. The underwriter's reputation cannot be moderated on earnings per share versus initial return. The price-earnings ratio has a positive but not significant effect on the initial return.Theory and Practical Implications - The findings of this study have implications for initial public offerings (IPOs) in the primary market, as well as parties who will conduct further research on factors that affect initial returns, such as issuers who will go public. These investors will make decisions about investing in companies with high underpricing rates. The results of this study are expected to contribute to the company or issuer, and also to investors who will invest that the underwriter's reputation can moderate the influence of ROA, DER, SIZE, and EPS on the initial return.Novelty- The novelty in this study is to use the underwriter reputation variable as a moderation variable that will strengthen the influence of the ROA, DER, CR, Ln Size, EPS, and PER variables on the initial return, whereas previous studies did not use it as a moderation variable.

The effect of financial distress on capital structure: The case of Brazilian banks

This study investigates the effect of financial distress on capital structure, considering banking performance variables and the economic environment. The analysis is based on balanced panel data for Brazilian listed banks, using accounting and non-accounting information on a quarterly basis from September 2009 to December 2016. This study uncovers evidence that the effect of financial distress on capital structure is context-dependent. During normal times, the findings support the argument for higher bank capital in times of financial distress. However, in periods of economic recession, the effect of bank distress on capital was found to be negative, indicating that the impact of banks’ risk on capital is especially important during such periods of market uncertainty. The findings are robust to alternative estimation methods and to alternative measures of risk. This study provides insights for the design of prudent regulation and the supervision of banks, especially for emerging markets economies, considering their highly uncertain environment with widely varying rates of growth and inflation.

A Proposed Model for Improving Government Institutional Performance by Following Generational Accounting

The research dealt with a presentation of the deficiencies witnessed by government accounting with regard to assessing the financial and non-financialperformance of government units, which in light of the variables, factors and developments witnessed in the business environment has becomeinappropriate to deal with them, although the most important of which was the impact of the developments of the Corona pandemic, specifically inservice institutions And educational), which necessitated taking into account the adoption of the concept of institutional performance in governmentunits, depending on the addition of generational accounting components within the scientific and practical framework of government accounting.The aim of the research is to Clarification on the deficiencies contained in government accounting and how to work to address them and limit theirimpact on government institutional performance as one of the requirements for digital transformation of government services, as well as work to achievethe link between accounting and non-accounting information over more than one period, whether past, current or Future (expected) by using thefundamentals and capabilities of generational accounting. The research found the deficiency of governmental accounting in its traditional form due to the fact that it did not take into account the achievement ofintegration with other accounting branches that have the ability to overcome the limits of their application, which in turn is reflected in the evaluationof governmental institutional performance and overcoming the lack of forecasting of that accounting and non-accounting information by relying onGenerational accounting. The research recommends the need to develop government accounting and work to transform it towards digital dealing in all aspects with the sharingof accounting and non-accounting information to the public as an indicator to measure the degree of public awareness of what it achieves in improvinggovernment institutional performance, specifically with regard to educational and health service institutions.

Research on the Control of Audit Risk of Asset Reorganization

The risk of asset reorganization audit refers to the possibility of the failure of asset reorganization or the decision failure of information users caused by the auditors' inappropriate audit opinions on the financial statements of the underlying assets. It has the characteristics of universality, complexity and dynamics. This paper argues that the main causes of the audit risk of asset restructuring are the opportunistic behavior of asset restructuring, the high uncertainty of profit forecast report, the incomplete and unreliable non-accounting information disclosure and the lack of professional competence and professional ethics of auditors. Considering the institutional environment in China, it is considered that the joint efforts of accounting firms, relevant accounting policy formulation agencies and regulatory agencies are needed to effectively reduce the audit risk of asset restructuring. Among them, auditors should make clear the importance of strategic analysis, and on this basis, determine the audit focus according to the value driving factors and key operational risks, and at the same time emphasize the importance of the auditor's industry expertise and professional ethics construction.

The value relevance of risk-related disclosure: Does the tone of disclosure matter?

This paper investigates whether risk-related disclosure, which includes aggregate risk disclosure and its tone, including upside and downside risk disclosures, is value relevant for investors in the UK market. Based on 1941 firm-year observations for nonfinancial firms listed on the FTSE All-Share, we employ fixed-effect estimations and find that the value relevance of aggregate risk information is not statistically observable unless a distinction is made in its tone. Specifically, upside- (downside-) risk disclosure significantly increases (decreases) stock prices. We also find that the value relevance of risk information exhibits cross-sectional variations conditional on firms’ growth and profitability. In particular, we find an asymmetric response of stock prices to upside- and downside-risk disclosures for high-growth firms but not those with low growth. In addition, profit-making firms, but not loss-making firms, provide upside and downside disclosures that significantly influence stock prices. Our paper contributes to the extant research on value relevance and risk reporting by providing new evidence on the extent to which, and how, combining the accounting numbers that are examined extensively in prior research with non-accounting information (i.e., risk information) is important for observing value relevance. Our paper also advances prior research on the usefulness of risk disclosure by looking at the tone of this information and how the market responds to each type of disclosure.

Quarterly Operating Information Disclosure and Accounting Information Quality Improvement: A Research on the Interaction of Information in Regulatory Innovation

The production and transmission of accounting information is of great value in the capital market infrastructure. How to effectively improve the quality of accounting information tests the wisdom of all participants in the capital market. This paper breaks through the previous theories of internal governance and external supervision and expands a new perspective to improve the quality of accounting information from the interaction of information. This paper takes the opportunity of the natural experiment that the Shanghai Stock Exchange issued industrial information disclosure guidelines from 2013 to 2016, which required listed companies to disclose quarterly operating information, and the Shenzhen Stock Exchange did not have relevant mandatory requirements, to empirically test the interaction of information contents.This paper finds that, as a kind of information that can be mutually verified and interpreted with accounting information in content, the disclosure of operating information significantly improves the quality of accounting information of companies, which is manifested in the reduction of earnings management under accrual earnings management and the significant reduction of earnings reversal in the fourth quarter. Further research verifies the improvement of the quality of accounting information from the perspective of the capital market – the value relevance of accounting information is significantly improved.The contributions of this paper are as follows: Firstly, this paper takes operating information and accounting information as the research object, discusses whether and how different information contents disclosed by the same company can affect each other, and deepens the understanding of complex information transmission in the capital market environment. Secondly, the improvement of the quality of accounting information is a global problem. From the perspective of information competition, this paper discusses that timely understanding and verifying accounting information can improve the quality of accounting information, and provides a new theoretical basis for improving the quality of accounting information. Thirdly, the impact of non-accounting information on the information environment of the capital market has been paid more and more attention. This paper studies the effect of novel and unique non-accounting information on the improvement of information environment and enriches the literature of non-accounting information research. Fourthly, the research results provide evidence for regulatory authorities to improve the information environment in the capital market by using the interaction of information contents, and support the market-oriented reform direction of regulatory authorities to enhance the quantity and quality of information disclosure.

A study of value relevance of accounting and non-accounting information

This study investigates the value relevance of accounting and non-accounting information in the Colombo Stock Exchange, with a view to determining whether accounting information and non-accounting information has the ability to capture data that affect share prices of companies listed on the Colombo Stock Exchange. The required accounting information and non-accounting information are obtained through banks annual reports and data library published by Colombo Stock Exchange. Value Relevance is examined by partially replicating and modifying Ohlson's Value Relevance Model. The Regression analysis is used for evaluating information content of various accounting numbers and non-accounting information. The results revealed that accounting information of BVPS and OCFPS has strong positive correlation with Share Price. And also, it revealed that the non-accounting information of Local number of shareholders, Market Capitalization and Age of the Company has strong positive correlation with Share Price.

Research on the Control of Audit Risk of Asset Reorganization

The risk of asset reorganization audit refers to the possibility of the failure of asset reorganization or the decision failure of information users caused by the auditors' inappropriate audit opinions on the financial statements of the underlying assets. It has the characteristics of universality, complexity and dynamics. This paper argues that the main causes of the audit risk of asset restructuring are the opportunistic behavior of asset restructuring, the high uncertainty of profit forecast report, the incomplete and unreliable non-accounting information disclosure and the lack of professional competence and professional ethics of auditors. Considering the institutional environment in China, it is considered that the joint efforts of accounting firms, relevant accounting policy formulation agencies and regulatory agencies are needed to effectively reduce the audit risk of asset restructuring. Among them, auditors should make clear the importance of strategic analysis, and on this basis, determine the audit focus according to the value driving factors and key operational risks, and at the same time emphasize the importance of the auditor's industry expertise and professional ethics construction.

Accounting Information and Non-Accounting Information in Financing Decision: in Islamic Banking Indonesia

This study aims to determine whether Islamic Banking in its financing provision decisions based on financial statements as a source of accounting information, or not. To find out whether banks also base their financing decisions on non-accounting details or not. The target population in this study are all funding requests received by Islamic banking in Jambi City during 2018. The sample in this study amounted to 56 files, taken using the "simple random sampling" method. This research conducted using a survey method, namely, by using structured questions. The analysis carried out using multiple linear regression. The results showed that: accounting information variables that significantly influence financing decisions are activity variables. For the analysis of non-accounting information, the significant effect is the level of collateral, the reputation of the customer, and the economic sector to be financed. Together with the accounting information and non-accounting information, variables significantly influence the level of financial decisions.

Understanding the COSO 2013 Framework: Four Short Cases for Use in AIS and Auditing Courses

ABSTRACT Since our students will be auditors or accountants after they graduate, they need to understand how to apply and assess the components of the COSO 2013 framework in their evaluations of a client's internal controls and the reports used for decision-making. We present four short cases addressing the components of the COSO 2013 Internal Control—Integrated Framework. The short cases we provide focus on the interaction of the components to help students see how these components combine to form a strong internal control system. Learning objectives of the cases are to help students: 1) practice performing a risk assessment and making recommendations to respond to the identified risks, 2) identify non-accounting information that could be used to monitor operations, 3) evaluate the control environment of an organization in terms of the five principles of the COSO 2013 control environment component, and 4) evaluate potential fraud risk, identifying the information and monitoring activities that could be used to mitigate that risk. A pre- and post-test analysis shows that students, especially undergraduates, exhibited significant improvement in their understanding of the components of the COSO 2013 framework. Implementation guidance and other feedback are included.

A Conceptual Framework for A Corporate Finance Valuation Method

The Ohlson Model and its variants have been widely studied by researchers for value relevance of accounting information. It has been used to predict share prices and to assess the fundamental value of a firm. The original Ohlson Model does not clearly define the non-accounting information variables as the linear information dynamics variables. In relation to that, we propose a conceptual framework that includes the Piotroski F-Score, trading liquidity and systematic risk as the linear information dynamics variables in the Ohlson Model to improve prediction of share prices and forecasting capacity of the Ohlson Model or to better evaluate the fundamental value of the firm. Literature pertaining to Ohlson Model, Piotroski F-Score, trading liquidity and systematic risk are analysed, compared and synthesized to fulfil the research objective. It is expected that this paper will motivate future researchers to conduct more research in this field.

ACCOUNTING INFORMATION, NON-ACCOUNTING INFORMATION AND LENDING DECISION

This study aims to examine the effect of accounting information and non-accounting information on lending decisions on banking institutions in Pidie Jaya Regency, which amounted to 6 (six) banks for the period January 2014-February 2015. The data analyzed were debtor data using multiple linear regression. The results show that return on net worth, debt to equity ratio, and non-accounting information have a significant effect, while fixed assets turn over does not affect the lending decision in Pidie Jaya Regency.

Empirical Evidence on the Value Relevance of Brand Values across Countries

Stock prices reflect firms-related information differently depending on the environmental and institutional context. However, previous empirical studies test mainly accounting data. Since intangible assets became a crucial element for business success and brands are considered critical for value creation, correlated disclosure is proven to be value relevant for investors. The majority of accounting standards do not allow to recognize internally generated intangible assets in the balance sheet and therefore more and more practitioners, both investors and analysts, use brand values provided by third independent parties, such as consulting firms. The purpose of this paper is to investigate whether and how brand-related information differs across countries testing the value relevance of brand values published in Brand Finance’s Reports. This study aims to open a new stream of literature regarding the value relevance of non-accounting information across countries.

Value relevance of accounting and Non-Accounting information

This study investigates the value relevance of accounting and non-accounting information in the Colombo Stock Exchange, with a view to determining whether accounting information and non-accounting information has the ability to capture data that affect share prices of companies listed on the Colombo Stock Exchange. The required accounting information and non-accounting information are obtained through banks annual reports and data library published by Colombo Stock Exchange. Value Relevance is examined by partially replicating and modifying Ohlson's Value Relevance Model. The Regression analysis is used for evaluating information content of various accounting numbers and non-accounting information. The results revealed that accounting information of BVPS and OCFPS has strong positive correlation with Share Price. And also, it revealed that the non-accounting information of Local number of shareholders, Market Capitalization and Age of the Company has strong positive correlation with Share Price. So, Not only accounting information and non-accounting information but also other factors that affect changes in share prices, future study can include impact of other information sources like rumour, insider trading and noise among others on share prices.

Strategic Deviance and Accounting Conservatism

This paper considers the influence of corporate strategic positioning on the firm’s accounting conservatism from the perspective of a company’s deviation from the industry’s conventional strategy, and selects China’s A stock market company as an initial research sample for empirical analysis from 2000 to 2016. Research shows that the greater the company’s strategic differences, the lower the accounting conservatism. Further studies have found that the negative correlation between corporate strategic differences and accounting conservatism is even more pronounced in private enterprises. In addition, from the perspective of the intensity of industry rules, this paper compares the degree of strategic deviance between state-owned enterprises and private enterprises, the results show that state-owned enterprises are subject to stronger constraints and the degree of strategic differences will be lower. This article focuses on the perspective of corporate strategic deviance and examines the role of non-accounting information in corporate accounting practices, and compares the strategic differences between state-owned enterprises and private enterprises from the perspective of the strength of industry constraints, which provides an effective means for the company’s external stakeholders, including creditors and investors, to use the company’s strategic information, and enriches the research on the reform of China’s property rights system.