Diversity

• Comment lettters – Public Sector Accounting Committee

  We would like to share with you that the EAA PSAC, as part of its mission, has started participating in public consultation processes that are relevant to public sector accounting standard setting. In this realm, PSAC has drafted and submitted two research-based comment letters to the IPSASB’s (International Public Sector Accounting Standards Board) public consultation process. The two letters refer respectively to “Exposure Draft 90:  Amendments to IPSAS as a result of the application of IPSAS 46 – Measurement” and “Exposure Draft 91: Limited-scope Updates to First-time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSAS) (Amendments to IPSAS 33)”. We are grateful to Marco Bisogno (Department of Management & Innovation Systems, University of Salerno, Italy) and Josette Caruana (Faculty of Economics, Management & Accountancy, University of Malta, Malta) for their contributions in developing the comment letter to ED 90.

  The comment letters will be available on the IPSASB website and can be also accessed from the Public Sector Accounting Abstracts Research (PSAAR) portal at https://psaar.net/eaa-psac.

  The documents issued by the EAA PSAC reflect only the views of their signatories, not the collective perspective of the wider research community nor of the institutions affiliated with its members or the European Accounting Association.

  ED 90 comments_2024-11-29_FINAL

  EAA_PSAC_ED 91_10122024_FINAL

• Meet the Editors – European Accounting Review

  Dear EAA members,

  we are please to announce our next “Meet the Editors” event.  The event is conceived to support PhD students and junior faculty in navigating the increasingly high expectations set on the quality of research work and to provide early career scholars with an opportunity to learn and discuss how to successfully manage the competitive process of paper publication.

  The EAA “Meet the Editors” virtual session will take place on Zoom on January 27, 2025 at 4.00 pm CET (e.g. Brussels time), featuring Amir Amel-Zadeh and Matias Laine, the Editors of the European Accounting Review (EAR). EAR is one of the house journals of the European Accounting Association, it has international reach and aims to provide a platform for the wider dissemination of high-quality European accounting research. EAR is open to manuscripts adopting a variety of methodological approaches, styles of research and originating in a diversity of geographical locations.

  EAR encourages the work of early academic scholars and Amir and Matias will gladly provide tips and advice on how to submit successfully to the journal. Registration is open here.

  We look forward to meeting you and the Editors!

• Can Analysts Elicit Useful Information by Asking Unique Questions in Earnings Conference Calls?

  Paper forthcoming at European Accoutning Review – https://www.tandfonline.com/doi/full/10.1080/09638180.2024.2410892

  Kristian D. Allee^a*, Chuong Do^b, and Huy N. Do^c

  ^aWalton College of Business, University of Arkansas, Fayetteville, USA; ^bCollege of Business, University of Nevada – Reno, Reno, USA; ^cCollins College of Business, The University of Tulsa, Tulsa, USA

   

  We examine whether analysts can gather useful information based on their public interactions with firm managers. While analysts’ forecasts and price targets are often a “black box,” earnings conference calls offer a unique opportunity to see their information gathering processes through the questions they ask. We design a measure to capture the “uniqueness” of a question by comparing how similar it is to other conference call content or questions. Specifically, we use cosine similarity to compare an individual analyst’s question(s) in a firm’s quarterly earnings conference call against three benchmarks: 1) questions from the other analysts on the same call, 2) the same analyst’s questions on the same firm’s prior calls, and 3) the management-prepared narrative on the same call. The underlying intuition of our method is that the conformity of a question on the call, to one of those three reference points, reveals what information is desired and how the questioner intends to extract the information. Through analyses built around this uniqueness measure, we aim to enhance our understanding of how analysts publicly gather information and the impact of these information gathering activities.

  Our results show that the uniqueness of individual analysts’ questions varies with their individual characteristics, controlling for firm and call characteristics. Analysts with superior private information ask more unique questions on the call. Conversely, more experienced analysts, analysts from larger brokers, and analysts who forecast more frequently ask less unique questions. Turning to the consequences of analysts’ information gathering, the results show that unique questions increase the overall number of topics (as measured by Latent Dirichlet Allocation topic modeling) of analysts’ questions as well as managers’ answers in an earnings call. Thus, analysts’ unique questions can elicit new and different topics of discussion. Furthermore, when analysts ask more unique questions, their likelihood of revising their forecasts after the call and the magnitude of the revision increase with the size of the earnings surprise. Finally, the accuracy of an analyst’s forecast appears to be associated with the uniqueness of their questions on conference calls, again conditioned on the size of the earnings surprise.

  We next examine how the market responds to the uniqueness of analysts’ questions in conference calls. First, using “real-time,” millisecond trading data from conference calls occurring during market hours, we find that the Q&A session on an earnings conference call is more informative in the presence of unique analyst questions. This result suggests that analysts’ information gathering activities on conference calls, as captured through the uniqueness of their questions, yields value relevant information for both analysts and investors. Second, controlling for the size of the revision, investors appear to react more to forecasts made by analysts who ask more unique questions on the preceding conference call. This result supports the idea that analysts’ questions can serve as public signals of their information gathering capabilities to the market, leading to a larger market reaction to their revised forecasts.

  Our study extends the literature on analysts’ behavior by shifting the focus from their forecast and reports to their information gathering behaviors, specifically their (unique) questions on conference calls, as an indication as to whether/if this behavior will then influence their earnings forecast revisions. We also provide insights into analysts’ forecasting behavior based on earnings conference calls and the market’s use of analysts’ information in interpreting earnings information. Our paper documents the significant nuance in the interactions between managers and analysts, as well as within analysts, and there is an association between analysts’ interactions and analysts’ forecasting behavior as well as the market’s reaction. Additionally, our study contributes to the literature that examines earnings conference calls at the conversation level.

• EFAA SMEs – Call for a Digitalisation and Artificial Intelligence Expert

  EFAA for SMEs invites proposals from experts to tender for the project detailed below. Replies are expected by either a team composed of both academic and professional or an expert having experience both as a professional and as an academic. Applications should be sent to secretariat@efaa.com and will be assessed on a rolling basis.

  Deliverables:

  The following are expected to be done over the course of the project.

  1. Digital Working Group
     • Support the Chair of the EFAA Digital Working Group
     • Plan at least two expert group meetings a year: draft the agenda and identify relevant topics; possibly invite high-level speakers to meetings
     • Draft with the support of the DWG experts guides on:
       • How to get started with AI in the SMP
       • How to responsibly use AI
     • If relevant, coordinate the work of the DWG to draft replies to EU and International

   

  2. Communication/ publications and Meetings
     • Draft content for the EFAA website: Future-Ready SMPs Archives- EFAA
     • Twice a month: develop one article for Latest from Brussels
     • Once a year:
       • 2024: How to get SMPs started with AI (see above)- IFAC
       • 2025: How SMPs can responsibly use AI- IFAC
     • Once a year: contribute to the organization of a 90-minute webinar for EFAA members or public events Reporting and Supervision

  The Advisor will report to the EFAA Board of Directors via the EFAA Liaison Board member The advisor will be supervised by the EFAA Steering Committee.

  Duration

  As soon as possible through end of 2025. Remuneration and Payment

  The exact amount attributed to the project will be established on the basis of the experience and qualification of the selected candidate(s).

  Payment(s) will be made on receipt of an invoice(s)

• EFAA SMEs – Call for tax and accounting expert

  EFAA for SMEs invites proposals from experts to tender for the project detailed below. Replies are expected by either a team composed of both academic and professional or an expert having experience both as a professional and as an academic. Applications should be sent to secretariat@efaa.com and will be assessed on a rolling basis.

  Deliverables

  The following are expected to be done over the course of the project.

  1. Policy advice on Tax and Accounting Related matters with SMP/SME relevance:
     • European Commission, DG TAXUD- Platform for Good Tax Governance

  The advisor is expected to support the EFAA representative, including by collecting feedback from EFAA members, compiling briefing notes and input for representative to use in meetings. Advice should always have and SMP/SME focus. The Platform is expected to meet 3-4 times a year).

  • Tax Advice
    • Monitor developments in tax law, tax incentives, tax compliance and enforcement, at EU and international level
    • Provide recommendations aiming to the simplification (and if appropriate harmonization) of tax law and to cutting red tape for SMPs
  • Accounting Advice
    • Monitor and comment on developments in Accounting standards (e.g. IFRS for SMEs) but also on corporate governance (including the CSDDD)
    • Provide recommendations and position aiming to the drafting of SMP/SME friendly standards
  • Drafting position papers; responding to public consultation and hearings on the basis of the contributions of the experts of the EFAA Accounting and Tax EG
  • Providing support, whenever necessary, to the EFAA President and the Board in technical meetings

  2. Communication/ publications with SMP/SME relevance
     • Twice a month: develop the Tax session for Latest from Brussels
     • 3 times a year: draft a short technical updated (2-4 pages)
     • Once a year: develop guidance on what tax developments will impact SMPs over the duration of the new EP mandate and how SMPs can best prepare for these developments (10-15 pages)
     • Once a year: contribute to the organization of a 90-minute webinar for EFAA members or public event
     • Represent EFAA for SMEs at technical events
  3. EFAA Accounting and Tax Expert Group
     • Support the Acc&Tax Chair
     • Plan at least two expert group meetings a year: draft the agenda and identify relevant topics; possibly invite high-level speakers at meetings
     • Coordinate the work of the EG to draft replies to EU and International
  4. Other
     • Any other deliverables (to be specified by the proposer)

  Reporting and Supervision

  The Advisor will report to the EFAA Board of Directors via the EFAA Liaison Board member (currently Johan de Coster).

  The advisor or team will be supervised by the EFAA Steering Committee

  Duration

  As soon as possible through end of 2026.

  Remuneration and Payment

  The exact amount attributed to the project will be established on the basis of the experience and qualification of the selected candidate(s).

  Payment(s) will be made on receipt of an invoice(s)

• Emerald and Sustainability Accounting, Management and Policy Journal

  Open letter

  We are writing this open letter as the Associate Editors, members of the Editorial Board, authors, readers and supporters of Sustainability Accounting, Management and Policy Journal (SAMPJ).  The Editor, Carol Adams, very recently informed us that the publisher of the journal, Emerald, has made the decision not to reappoint her as Editor because Emerald wishes to take SAMPJ in a new direction. In effect, we believe that this means, in a substantively different direction, thus necessitating the removal of the Editor.

  Emerald’s decision was made without consultation with the academic community which supports SAMPJ.

  At the outset, we should make clear that Carol is the founding Editor of SAMPJ.  The journal was her initiative, she decided on the name, selected the Associate Editors and Editorial Board, successfully navigated the difficult first few months of the new journal and has been a diligent, rigorous and energetic leader of the journal. Under Carol’s editorship, SAMPJ has gone from strength to strength. While there are significant problems in terms of some of the metrics used to rank journals, by these measures, SAMPJ has been an overwhelming success, with a Scopus citescore of 9.5 and a Clarivate Impact Factor of 5.9. In short, Carol’s and SAMPJ’s performance has been outstanding.

  It, therefore, came as a huge shock to us to hear that Emerald had decided not to renew Carol’s contract. There was no discussion with us about taking the journal in a new direction, nor was there any decision regarding the appointment of a different editor (or editors).  The vast majority of us, associate editors and the editorial board, have made the difficult decision to resign from our posts. We do this reluctantly, not least, because we have all (along with many others) put significant dedication and (unpaid) time into ensuring SAMPJ’s success.

  As is the case with the majority of academic journal publishing, the vast amount of academic work in running and populating journals is carried out by academics who are not paid by the publishers. Indeed, academic journals are created, maintained and grown by a collective of unpaid academic labour. We carry out research, read theory, craft our manuscripts, present these manuscripts to our colleagues (who read and comment on them) and after significant care and hard-work submit our manuscripts to journal editors for consideration for publication. The editor then reads our manuscripts, selects anonymous reviewers, and solicits their comments in light of which manuscripts are revised (often many times) before they are actually published. Then, our work is sold to the libraries of the same universities that fund the research and editorial work. The academic publishing field is very profitable. At the very least, we have a claim to being essential creators of the value of academic journals. Yet, Emerald did not give us the opportunity to be consulted on the change to SAMPJ, demonstrating inappropriate governance. Succession planning should be carried out, in consultation with the Editorial team, to ensure a fair and transparent process. 

  As a consequence of this lack of transparency, we are very concerned that the new Editor(s) will not have been chosen from our community, or that the new Editor(s) will have had little or no prior connection with the Journal. Emerald could have discussed how to move the Journal forward with Carol and editorial team, instead they have decided to define for themselves the new direction of SAMPJ in effect, appropriating the work of those involved in SAMPJ.  The academics who have contributed to the success of SAMPJ directly with their research or editorial work and indirectly as taxpayers across the globe who fund our universities have had their inputs seized. Our decision to step back from the Journal is due to our concerns that the new direction of the Journal will not preserve the quality and impact of sustainability accounting,  management and policy research. 

  If you wish to endorse this letter, please sign here

   

  Associate Editors:

  Subhash Abhayawansa, Swinburne Business School, Swinburne University of Technology, Australia

  Michele Andreaus, Università di Trento, Italy

  Jennifer Chen, Brigham Young University Hawaii

  MassimoContrafatto, University of Sussex (UK)

  Céline Louche, University of Waikato, New Zealand

  Jim Haslam, Professor of Accounting, Durham University, UK

  Luis F. Martinez, Nova School of Business and Economics, Universidade Nova de Lisboa, Portugal

  Mauricio Gómez-Villegas, Universidad Nacional de Colombia

  Mercedes Luque-Vílchez, Universidad de Córdoba, Spain

  Andrea Romi, Texas Tech University, US

  Hongtao Shen, Jinan University, China

  Sujuan Xie, Ocean University of China, China

  Teerooven Soobaroyen, Aston University, UK.

  Javed Siddiqui, The University of Manchester, UK

  Sarah Lauwo, Robert Gordon University

  Hwa-Hsien Gary Hsu, Durham University, UK

  Javier Husillos, Universidad Pública de Navarra, Spain.

  Josie McLaren, Newcastle University, UK

   

  Editorial Advisory Board Members:

  Seraina Anagnostopoulou, University of Piraeus, Greece

  Claudia Arena, University of Naples Federico II, Italy

  Nick Barter, Griffith University, Brisbane

  Charles H. Cho, Schulich School of Business, York University

  Christine Cooper, University of Edinburgh, UK

  Michela Cordazzo, Caꞌ Foscari University of Venice, Italy

  Mercy Denedo, Durham University, UK

  Colin Dey, University of Dundee

  Samanthi Dijkstra-Silva, Dresden University of Technology

  Chris (Hristos) Doucouliagos, Deakin University

  Matthew Egan, The University of Sydney, Australia

  Delphine Gibassier, Former Professor of Accounting for Sustainable Development, Lannion, France

  Peiyuan Guo, SynTao Co., People’s Republic of China

  Nooch Kuasirikun, University of Manchester, UK

  Leanne Keddie, Carleton University, Canada

  Eric Lee, Australian Accounting Standards Board

  Carlos Larrinaga, Universidad de Burgos, Spain

  Michel Magnan, Concordia University, Canada

  Jonathan Maurice, Toulouse Capitole University, France

  Giovanna Michelon, University of Padova, Italy

  Markus Milne, University of Canterbury

  Franklin Nakpodia, Durham University

  Carlos Noronha, University of Macau

  Eduardo Ortas, Universidad de Zaragoza, Spain

  Brad Potter, The University of Melbourne

  Robin W. Roberts, University of Central Florida

  Michelle Rodrigue, Université Laval

  Remmer Sassen, TU Dresden, Germany

  Stefan Schaltegger, Leuphana University, Lüneburg

  Daniela Senkl, University of Guelph, Canada

  Roger Simnett, Deakin University

  Ian Thomson, University of Dundee

  Carol Tilt, University of South Australia

  Kanji Tanimoto, Waseda University

  Helen Tregidga, Royal Holloway, University of London

  Olaf Weber, Schulich School of Business, York University

  Eija Vinnari, Tampere University, Finland

• Call for candidates: EFRAG Invites Academics to Join Its Academic Panel

  EFRAG is extending the membership of its Academic Panel and is calling for academics in the field of corporate reporting (financial reporting and/or sustainability reporting) to apply.
  Application deadline: 16 December 2024.

  The Role & Composition of the EFRAG Academic Panel

  EFRAG has benefited from its Academic Panel for over seven years. The role of the EFRAG Academic Panel is to promote the cooperation between EFRAG and the academic community, to support primarily EFRAG FR TEG in providing its technical advice to the EFRAG FRB. However, the scope of the Panel has been extended to also support EFRAG SR TEG, when relevant, in providing its technical advice to the EFRAG FRB and EFRAG SRB on research related to corporate reporting issues that are relevant to European constituents. The Panel contributes to the debate on current relevant topics by:

  • providing academic input on EFRAG’s projects;
  • providing references to relevant academic literature and researchers that would be relevant to consider for EFRAG’s projects; and
  • assisting EFRAG in finalising tenders for academic studies (including formulating the research questions), selecting the successful bidder(s), and monitoring and reviewing outsourced academic work.

  The Panel is not an EFRAG decision-making body but advisory in nature.

  The Panel is expected to have one physical meeting and one virtual meeting per year, with the possibility to have additional virtual meetings. Advice and other input will also sometimes be sought via email, telephone, video conferencing or other electronic means. EFRAG will cover the travel expenses for the physical meetings in Brussels (the meetings will be organised so as to enable most members to travel to and from Brussels on the same day).

  The indicative size of the EFRAG Academic Panel is 18 members. The Terms of Reference can be downloaded here.

   

  Candidate Profile

  Successful candidates should be specialised in corporate reporting and notably in IFRS Accounting Standards and/or sustainability reporting issues and should be knowledgeable about European specificities.

  Current members are eligible for reappointment, taking into account a balanced overall composition of the EFRAG Academic Panel.

   

  Application Process

  Nominations can be submitted by candidates or by organisations on their behalf. Applications should include a covering letter indicating the areas of corporate reporting in which the candidate has specialised, a CV and a list of publications. Applications should be submitted to EFRAG using this form no later than 16 December 2024.

   

  Inquiries

  For inquiries about the EFRAG Academic Panel, please contact:

  • Associate Director Rasmus Sommer: Rasmus.Sommer@EFRAG.org
  • EFRAG CEO Saskia Slomp: Saskia.Slomp@EFRAG.org

• Navigating ESRS Adoption: A Constructive Academic Perspective

  by Axel Haller and Thorsten Sellhorn

  The European Union’s recent push for mandatory sustainability reporting through the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) has sparked significant critical discussion within the business community. While concerns about the costs and complexity of these regulations are valid, a broader perspective highlights potential long-term benefits for companies and society. Below, we propose 10 key theses that frame this regulatory shift as a strategic opportunity for European businesses and provide constructive input to the ongoing discussion.

  1. Transparency Over Market Intervention
     ESRS serve as a transparency regulation, aiming to promote sustainable business practices without the direct imposition of bans or financial incentives. This approach, if implemented in the right ‚spirit‘,  supports informed decision-making and encourages corporate self-regulation while mitigating potential stricter future political or regulatory interventions via instruments other than transparency requirements.
  2. Transparency as a Catalyst for Change
     For transparency to effect meaningful change, disclosed information must be reliable, understandable, and accessible at low cost. Stakeholders—including investors and the public—can only drive sustainability if they have a clear view of companies’ environmental, social, and governance (ESG) performance.
  3. Predictable Pathway of Regulation
     The CSRD and ESRS did not emerge without warning. The EU has pursued corporate social responsibility for over 20 years, transitioning from voluntary measures to mandatory reporting. Companies had ample time to anticipate these changes and adapt their strategies, business models, governance structures, and management systems accordingly. At least the first-wave firms (large PIEs) should not be too surprised by the new reporting rules.
  4. Reporting Proportional to Impact
     Contrary to fears of overwhelming data requirements, the volume of reporting depends on a company’s self-assessed material impacts and risks. The double materiality assessment allows firms to prioritize significant topics, ensuring focused and relevant disclosures – and limiting the risk of overly costly and superfluous disclosures that nobody needs.
  5. Leveraging ESRS for Strategic Value
     ESRS reporting can—and should—be more than compliance; rather, it represents an opportunity for businesses to integrate sustainability into their core strategy and operations. The strategic use of ESG data can improve stakeholder trust and internal processes, helping create long-term value.
  6. Available Support Systems
     Resources from regulators, universities, and industry associations provide essential guidance for implementing ESRS. First-time mandatory adopters benefit from the accumulated knowledge and tools developed through collaborative efforts, as well as early adopters‘ pioneering. All this can help firms meet the practical management and reporting challenges efficiently.
  7. Avoiding Duplication of Efforts
     Concerns about overlapping standards (e.g., GRI, ISSB) are legitimate, but ongoing coordination aims to harmonize these frameworks. The ultimate goal is streamlined reporting that fulfills multiple obligations efficiently.
  8. The ‘Journey’ Perspective
     Adapting fully to ESRS will take time. However, companies must shift from viewing this as a temporary compliance challenge to be ‚struggled through‘ at minimal cost to embracing it as an essential transformation journey with great opportunities. The sooner the ‚journey‘ is completed, the earlier firms and their stakeholders will enjoy the internal and external benefits of greater ESG transparency.
  9. Greenwashing Risks and Vigilance
     Just as financial misstatements can undermine trust, “greenwashing” poses a reputational (and, increasingly, also a regulatory and litigation) threat. Companies must ensure transparent and substantiated sustainability claims to avoid potential backlash and scrutiny.
  10. Continuous Improvement
      Both companies and standards will evolve. Feedback loops from initial reporting cycles will lead to refinements in regulations, promoting an evidence-based approach that balances stakeholders’ needs with practical feasibility in the medium term.

  As the ESRS framework becomes a standard part of corporate reporting, its true value lies in the shift it catalyzes towards sustainable business practices. Academics and practitioners alike should view this “journey” not merely as compliance but as a strategic step towards a resilient, transparent, and sustainable economic, ecologic, and societal future.

  This blog post is the short form of an article entitled “Nachhaltigkeitsberichte nach ESRS: NurMut!” in the German-language professional journal DER BETRIEB, Vol. 77 (2024), Issue 44, November 2024, pp. 2711-2715.  

• Upcoming PhD courses of the Limperg Institute

  For over 20 years, the Dutch Limperg Institute has successfully organised a wide range of PhD courses in the field of accounting. These courses focus, for example, on managerial accounting, the economics of auditing, capital-markets based accounting research, or advanced financial accounting topics. The Limperg Institute also organises courses that focus more on methods, such as analytical accounting research, experimental research, Python, and archival data analysis. These courses have been taught by a wide range of internationally renowned top scholars, such as Peter Easton, Robert Knechel, Margaret Abernethy, Shivaram Rajgopal, Robert Bloomfield, Suraj Srinivasan, Eva Labro, Marleen Willekens, Dan Simunic, Christopher Ittner, Willie Choi, Dennis Campbell, and others.

  While traditionally organized as a venue for PhD students and junior faculty from the Dutch universities connected to the Limperg Institute, the courses are now open to all interested participants. These intensive courses typically last around five consecutive days and are held on campus (in-person) at one of the Dutch universities. A registration fee of €500 applies to students from partner universities of the Limperg Institute, while a fee of €1000 applies to students from other universities.

  Two of the courses that are coming up soon and open for registration are:

  • Analytics in Accounting with Prof. Christian Hofmann; September 11-15, 2023 (5 days); venue: University of Amsterdam.
  • Archival Data Analysis with Prof. David Veenman; October 18-24, 2023 (5 days); venue: University of Amsterdam.

  Please keep an eye on https://limperginstituut.nl/courses-2023/ for other upcoming Limperg courses, course outlines, and registration forms. Registrations can be emailed to Hetty Rutten (h.rutten@tilburguniversity.edu). For more information about the history of the Limperg Institute and for information about the partner universities, see https://limperginstituut.nl/about-li/.

   

• Why not use a funny game to start your next class?

  It was great to see Patricia Everaert holding a fantastic hands-on Classroom session during the EAA Annual Congress at Espoo, Helsinki.

  We left the room with several ideas and readily-available tools to use in our accounting courses, that will certainly make learning more engaging, novel, surprising and exciting!

  More specifically, to have a look at the DUGA tool, you can go to www.duga.castars.net and register.  Add the code 590de1 and you can start playing some sample questions of financial accounting.

  Interested to use DUGA as a teacher with your students? Please contact the creators and they will be happy to give you a personal code. To get access, please take a moment to fill out this form to get access as a teacher.

  More information is provided on the creators’ website: www.accountingeducation.ugent.be  under the heading of the events, select EAA class room session or follow this link: https://www.accountingeducation.ugent.be/en/events/eaa-2023-classroom-session