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  • Private Firm Accounting Literature Database

    Given the importance of private firms for the global economy, there is a growing interest in research on private firms in general and on private firm accounting in particular. Our openly accessible online app (Privat Firm Accounting Literature Database) allows interested readers to explore their own dip into the literature. The database allows to filter for:

    • Keywords / full-text search
    • Topics (e.g. accounting quality, audit, banks, disclosure, IFRS, …)
    • Country/Regions
    • Data source (e.g. Orbis, Amadeus, or country-specific database)
    • Sample period
    • Publishing date

    The original database included 121 references. We now updated the database with more recent publications. The current sample presented by this app covers 144 original research papers and seven overview papers that have been published between 1986 and 2023.

    The database is an online extension of the paper Private firm accounting: the European reporting environment, data and research perspectives (C. Beuselinck, F. Elfers, J. Gassen, and J. Pierk). We believe the database and the paper to be insightful for a wide range of scholars, but we especially designed this overview to serve as a point of reference for PhD students and academics who are new to the private firm accounting literature.

  • EAA TALENT WORKSHOP 2024

    — EAA JOB MARKET FOR ACCOUNTING ACADEMICS

    (Madrid. November 8-9, 2024)

    Building Bridges between Young Talent and Academic Institutions

    https://eaa-jobmarket.ie.edu/

    Institutions of higher learning witness increasing mobility of PhD students and faculty. Combining the strengths of the web and face-to-face initiatives, the Management Committee of the EAA agreed to launch the ninth edition of its job market, a Talent Workshop, for accounting academics.

    Supporting institutions

    The Talent Workshop held editions in 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023. In these editions, the following academic institutions participated as recruiters: Aalborg University Business School, Aalto University School of Business, Aarhus University, Adam Smith Business School – University of Glasgow, BI– Norwegian Business School, Bocconi University, Cass Business School – City University London, Católica Lisbon School of Business and Economics, China Europe International Business School, Chinese University of Hong Kong, Concordia University, Copenhagen Business School, CUNEF, EDHEC, Erasmus University, ESADE, ESCP Business School, ESSEC Business School, Frankfurt School of Finance & Management, Fucape Business School – FBS, Brazil,  Ghent University, HEC Lausanne – University of Lausanne,  HEC Paris, Hong Kong University of Science and Technology, IE Business School / IE University, IESE Business School, IESEG School of Management, ISEG – Lisbon School of Economics & Management, INSEAD, IULM, KU Leuven, Lancaster University, London School of Economics and Political Science, Ludwig- Maximilians Universitat, LUISS University, Monash University, National Research University Higher School of Economics, National University of Singapore, Neoma Business School, Nord University, Norwegian School of Economics, Pontificia Universidad Javeriana, Queen Mary University, Radboud University, Rennes School of Business, RSM Erasmus University, SKEMA Business School, SolBridge International School of Business,  Stockholm School of Economics, TBS Business School, The American University in Cairo, The University of Queensland Business School, The University of Sydney, Tilburg University, Toulouse Business School, Trinity College Dublin, UEA,  Umeå University, University of Alberta, Universidad Carlos III de Madrid, Universidad de Navarra, Universitat Autònoma de Barcelona, Universitat de les Illes Balears, Universitat Pompeu Fabra, Université Catholique de Louvain (Louvain School of Management), Université Toulouse 1 Capitole, University of Amsterdam, University of Antwerp, University of Bern, University of Bolzano, University of Bristol, University of Cambridge, University of Cyprus, University of East Anglia, University of Exeter Business School, University of Glasgow, University of Groningen, University of Innsbruck, University of Manchester, University of Mannheim, University of Melbourne, University of North Texas, University of Notre Dame, University of Oxford, University of Padova, University of Southern Denmark, University of Strathclyde, University of Sussex, University of Waterloo, Vienna University of Economics and Business,  University of Washington, UNL – NovaSBE, UNSW Sydney, Vrije Unversiteit Amsterdam, Warwick Business School and WHU – Otto Beisheim School of Management.

     

    Venue

    The event will be held in Madrid during November 8-9, 2024, and its hosting institution is IE University. Address: IE Tower.  Paseo de la Castellana 259E, Madrid, Spain.  During the event, institutions and candidates will have the opportunity to meet both through public presentations of candidates’ job market papers and private interviews.

    Application –PhD students and faculty members.

    PhD students and faculty members interested in participating in the job market as candidates are asked to submit the following materials before October 1, 2024:

    -their job market paper

    -resume

    -brief research statement

     

    at the following email address: eaa-jobmarket@ie.edu. Participation in the Talent Workshop is free for accepted candidates, and this will cover their participation in the scientific program, availability to hold interviews with recruiters, coffee breaks and lunches. Upon acceptance to the Talent Workshop, candidates will be asked to complete the registration form that will be available on the website.

    Accepted candidates will get access to vacancies posted by recruiting institutions.

    Registration –Recruiting institutions.

    Recruiting institutions are asked to complete the registration form that is available on  https://secure.ie.edu/EAAJobMarket/ . The institutional fee for recruiters is 450 euros; it covers for the participation of one member of the recruiting institution as well as the use of a meeting place to interview candidates. The registration fee for further members of the same institution, who share the same meeting place, is 350 euros. Recruiting institutions’ deadline:  October 21, 2024. Registration fee after the deadline is 500 euros, subject to availability.

    Recruiting institutions may post their vacancies on the EAA Talent Workshop’s website.

    Video

    This link will take you to a video that illustrates the climate of the EAA Talent Workshop:

    https://www.youtube.com/watch?v=yRj-rjpMrkk&feature=youtu.be

  • Diversity in Accounting: Trends, Gaps, and Future Directions

    Introduction

    In accounting, diversity has emerged as a key area of study, reflecting broader societal shifts towards inclusivity and equity. Our recent systematic literature review sheds light on the evolving landscape of diversity within the accounting literature, offering insights into prevailing trends, research gaps, and potential future directions.

    Trends in Diversity Research

    The review, spanning publications from 1979 to 2021, analyzed 428 studies, revealing a notable surge in diversity-focused research, particularly from 2017 to 2021, indicating a 171% increase compared to the preceding period of 2012 to 2016.

    Gender, ethnicity, and race emerged as the most researched, with gender studies comprising the majority (62.4%) of the sample. Conversely, studies on disabilities and sexual orientation were noticeably scarce, comprising only 1.9% and 0.7% of the sample, respectively.

    Geographical and Methodological Insights

    Analysis of author demographics showcased a concentration of research in Western Anglo-Saxon countries, while quantitative methodologies slightly outnumbered qualitative approaches.

    While no specific journal exhibited publishing dominance, three interdisciplinary accounting journals featured prominently:

    • Critical Perspectives on Accounting
    • Accounting Auditing and Accountability Journal, and Accounting
    • Organizations, and Society

    Major Themes and Implications

    Four overarching themes emerged from the reviewed literature:

    1. Diversity in the Accounting Profession
    2. Diversity in Corporate Governance
    3. Diversity in Audit and Accounting Processes
    4. Influence of Organizational Information Reporting on Diversity

    These studies underscored the positive correlation between organizational diversity and performance, yet also highlighted persistent power imbalances. Moreover, a critical question arose regarding whether the increasing attention to diversity aligns with genuine efforts to promote equity and social justice.

    Future Directions and Implications

    The review indicated four key implications for future research:

    1. Expanding Topics and Strategic Consideration: While diversity research is on the rise, there is a call to broaden the scope of analysis and adopt a more comprehensive approach towards advancing social justice and equity.
    2. Intersectionality: Recognizing the complexity of various dimensions of diversity, future studies must embrace intersectionality to provide a better understanding of diversity.
    3. 3. Impact of Reporting on Diversity Practices: Further exploration into how organizational reporting on diversity influences actual diversity practices.
    4. Diverse Voices: Encouraging greater diversity in the discourse surrounding accounting and diversity is imperative, ensuring that multiple perspectives are represented and accounted for in the literature.

    Conclusion

    In conclusion, the systematic literature review offers a comprehensive overview of diversity within the accounting literature, highlighting both progress and persisting gaps. By highlighting current trends and articulating future research directions, this study serves as a catalyst for advancing inclusivity, equity, and social justice within accounting. As research continues to grapple with the complexity of diversity, fostering more diverse and inclusive scholarly discourses is paramount in driving meaningful change within the field of accounting.

    Article available here:

    Ghio, A., Occhipinti, Z., & Verona, R. (2024) The Consideration of Diversity in the Accounting Literature: A Systematic Literature Review, European Accounting Review, DOI: 10.1080/09638180.2024.2330089

     

  • Leveraging Digital Expertise: A New Frontier in Auditor Value Creation

    In an era where digital transformation is remaking industries, auditors find themselves swept up in the winds of change. Our recent study published in the European Accounting Review, titled “The Effect of Audit Partner Digitalization Expertise on Audit Fees” (Maghakyan, Jarva, Niemi, & Sihvonen), offers insights into the impact of digital expertise on the evolving audit landscape. It highlights a pivotal shift: audit partners with robust digital skills command a premium of up to eight percent in the audit market, underscoring the value of digital acumen in traditional practices.

    Digitalization has moved beyond mere buzzwords to become a fundamental competency in various sectors, with auditing being no exception. As businesses evolve their operations to digital platforms, auditors too must adapt, not only to maintain relevance but to enhance the quality and efficiency of their services. Audit partners with a deep understanding of digital business models and technologies bring a distinct advantage to their clients and firms. They navigate complex digital ecosystems with ease, ensuring that audits are more thorough, efficient, and aligned with modern business practices.

    The study analyzed data from U.S. listed companies over six years from 2016 to 2021, revealing a significant fee premium for audit partners specializing in digitalization. This premium was found to be independent of industry specialization, highlighting the unique value of digital expertise in the auditing field. The study’s findings are a clarion call for audit professionals: in an increasingly digital world, proficiency in digital tools and platforms is not just an asset; it’s a necessity.

    This shift has profound implications. For individual auditors, investing in digital skills is no longer optional but a career imperative. Audit firms must recalibrate their training and development strategies, embedding digital literacy at the core of their professional development agendas. Audit firms that proactively enhance their team’s digital capabilities will not only stay competitive but will also set new standards in audit quality and efficiency. This approach is not just about keeping pace with technological advancements; it’s also about redefining the value proposition of auditing in a digital age.

    The intersection of auditing and digitalization presents both challenges and opportunities. For forward-thinking audit professionals and firms, the message is clear: Embrace digitalization not just as a functional skill but as a strategic asset. In doing so, they will not only enhance their market value but also contribute to the evolution of the auditing profession in the digital era.

  • Two calls for contributors to the FRSC’s comment letters

    Within the EAA, the Financial Reporting Standards Committee (FRSC) views itself as the academic sparring partner to the financial reporting standard setters including the IASB and EFRAG. To this end, the FRSC regularly writes comment letters and organizes EAA Reporting Standards Workshops together with the IASB and EFRAG. Within the frame of this activity, the Financial Reporting Standards Committee (FRSC) invites expressions of interest in contribution to one of the two following comment letter projects. The first comment letter project is a response to the IASB’s PIR IFRS 16 “Leases”. The IASB decided in December 2023 to begin the PIR of IFRS 16 in the second quarter of 2024. The second comment letter project will consider responses to IASB’s requests for information in the frame of the IASB’s research project “Statement of Cash Flows and Related Matters” which the IASB has added to its Research Project Pipeline following feedback received on its third Agenda Consultation.

    Contributors are invited to join the FRSC’s comment letters as co-authors. If you would like to take part in one of these comment letter projects as co-author, please send us your CV indicating that you are knowledgeable on the topic evidenced by research projects conducted in the area or academic publications or being familiar with standard-setting processes. Please also include a short motivation explaining why you want to join the team. Expressions of interest can be sent to baha.diyarov@eiasm.be by the 22 March 2024.

  • SRC is inviting expressions of interest in contribution to the comment letters as a response to the EFRAG’s EDs on LSME and VSME

    Within the EAA, the Stakeholder Reporting Committee (SRC) strives to foster collaboration with standard setters and policymakers in the field of sustainability reporting. To this end, the SRC has been organizing EAA webinars, the so call “In conversations with…”, as well as symposiums at the EAA conferences, among other activities, such as writing comment letters. Within the frame of this activity, and for the first time, the SRC is inviting expressions of interest in contribution to the comment letters as a response to the EFRAG’s EDs on LSME and VSME.

    Contributors are invited to join the SRC’s comment letters as co-authors. If you would like to take part in one of these comment letter projects as co-author, please send us your CV indicating that you are knowledgeable on the topic evidenced by research projects conducted in the area or academic publications and being familiar with standard-setting processes, in particular with the development of the CSRD and the final ESRSs. Please also include a short motivation explaining why you want to join the team.

    As you probably know in this case the deadline for the comment letters is the 21st of May, so there is no much time for completing the process, since the SRC needs also some time to discuss and agree with the final letters to be sent to EFRAG. Thus, in principle we can think about having the draft letters by the 3h of May at the latest. Expressions of interest can be sent to baha.diyarov@eiasm.be by the 8th of March 2024.

  • 2024 Anthony G. Hopwood Award for Academic Leadership

    The EAA is delighted to announce the two recipients of the 2024 Anthony G. Hopwood Award for Academic Leadership

     

    Professor Peter Pope, Bocconi University and London School of Economics and Political Science

    &

    Professor Martin Walker, University of Manchester

    Peter Pope and Martin Walker have made significant and enduring contributions to our understanding of accounting and capital markets and to the continued development of the European accounting research community. While their impact has been global, their contribution to European accounting research has been particularly important, and our academic community continues to benefit from their intellectual leadership and work.

    Peter and Martin have made extensive contributions to the literature at the interface between accounting and capital markets. Such is the breadth and depth of their work, it is difficult to succinctly summarise. Inter alia, they have studied the impact of national and international accounting policy developments, examined the properties of earnings and disclosure, as well as their antecedents and consequences, and have analysed the links between accounting, corporate governance, information intermediaries, politics and financial markets. Their 1999 collaboration on international differences in earnings properties published in the Journal of Accounting Research remains highly influential in current debates about accounting conservatism and international accounting.

    Throughout their academic careers, Peter and Martin have contributed to, and actively engaged in, the nurturing and development of many members of our academic community. Their influence on the development of academic researchers is evident through their collaborations across numerous institutions and countries. They have been mentors of many doctoral students and young researchers, and they have served as coordinators of major European academic training programmes. Peter Pope was coordinator of the EC-funded INTACCT research training network of ten European universities (The European IFRS revolution: compliance, consequences and policy lessons). INTACCT trained 26 European early-stage researchers in accounting between 2007-2010. He was also a chair and faculty member of the EAA Doctoral Colloquium and the coordinator of EIASM’s EDEN PhD Seminar on Empirical Financial Accounting Research. During the early 2000s, Martin Walker contributed as one of the lead researchers when the then Manchester School of Accounting and Finance hosted several Marie Curie Visiting Fellowships for EU-based PhD students. He was a founder of the EAA PhD Mentoring Initiative as part of the ARC (where he remains a senior editor). He was also the UK National Representative for the EAA between 2011 and 2017. Many of the early-stage researchers who have benefited from these initiatives are now tenured professors following successful research and teaching careers of their own.

    Peter and Martin have also made major contributions to our community as editors. Along with Andrew Stark, they have co-edited Journal of Business Finance & Accounting, making it one of the leading international journals publishing high quality research at the interfaces between accounting, finance and corporate governance. Since 1991, the JBFA Capital Markets Conference has provided a forum for hundreds of accounting studies and has helped build a thriving community of accounting scholars in Europe and around the world.

    Both Peter and Martin have been active members of the EAA for decades, regularly attending our congresses and actively participating in many initiatives. Through their work in developing young researchers, and in generating and overseeing new understandings of the role of corporate reporting in capital markets, they have contributed enormously to the success of the European accounting academic community today and going forward into the future.

    The Hopwood Award for Academic Leadership was established in 2005 and renamed to honour Professor Anthony G. Hopwood, who played a prominent role in the creation and development of the EAA. Previous recipients of the Award are Stephen Zeff, Sten Jönsson, Michael Shields, Willem Buijink, John Christensen, Peter Walton, Kari Lukka, David Cooper and Salvador Carmona. The Award recognises academic excellence, academic leadership, and contribution to the EAA.

    We have outlined here only a few of Peter’s and Martin’s achievements. We are looking forward to hearing more at the 2024 EAA Annual Congress in Bucharest, where the Anthony G. Hopwood Award will be formally received.

  • EAA Visiting PhD Scheme at Bocconi University – Post-visit report by Furqan Shah

    My visit to Bocconi University through the EAA PhD Scheme was a profoundly enriching experience, providing me with invaluable opportunities to interact with PhD students and faculty members.
    Interacting with PhD students and faculty over coffee catchups and lunches was a highlight of my stay. These informal gatherings allowed me to discuss my research and gain fresh perspectives and constructive feedback. This interactive environment has certainly enhanced the quality of my research endeavors.
    I also had the opportunity to attend courses to strengthen my knowledge and familiarity with different fields of accounting research. I attended the courses on Auditing with Annita Florou and Accounting Theory with Moritz Hiemann. These sessions not only deepened my understanding of the subject area but also provided me with practical insights applicable to my own empirical research.
    Participating in reading groups was another valuable aspect of my visit. Analyzing and critiquing academic papers alongside fellow scholars fostered critical thinking and refined my analytical skills. These discussions offered diverse viewpoints and encouraged me to approach my research from multifaceted angles.
    During my time at Bocconi, I was fortunate to attend many job-market seminars. Witnessing final-year PhD students from various institutions around the world present their work as potential hires at Bocconi University offered a firsthand glimpse into successful job-market strategies. The seminars equipped me with the necessary insights to navigate the post-PhD job market effectively.
    A pinnacle moment during my visit was presenting my research at an internal faculty-wide brown-bag seminar. The feedback and suggestions received from the faculty members will undoubtedly enhance the impact of my research, motivating me to refine and strengthen my work further.
    Outside of academia, I had the opportunity to explore the vibrant culture and rich history of Italy during weekends. Exploring the enchanting streets of Milan and immersing myself in Italian cuisine and art provided a delightful respite from academic pursuits, adding a memorable dimension to my visit.
    In summary, my time at Bocconi University through the EAA PhD Scheme was a profound blend of academic enlightenment and cultural immersion. The interactions with peers and faculty, coupled with academic engagements and cultural exploration, have indelibly shaped my academic journey, igniting a deeper passion for research and academia. I am grateful for this transformative experience and eager to apply the knowledge and experiences gained to my future endeavors.

  • EAA Comment Letter in response to the PIR on IFRS 15 – Revenue from Contracts with Customers

    Elisabetta Barone (Brunel University London & Cork University Business School), Stephani Mason (DePaul University), Araceli Mora (Universidad de Valencia), and David Procházka (Prague University of Economics and Business) on behalf of the Financial Reporting Standards Committee (FRSC) of the European Accounting Association sent a comment on the Post-Implementation Review on IFRS 15 Revenue from Contracts with Customers to IASB and EFRAG. The purpose of the EAA FRSC and the EAA members is to bring contributions of academic research to the standard-setting process related to Financial Reporting. In this comment letter, the authors aim to provide research-based input to the debate on the PIR IFRS 15 Revenue from Contracts with Customers.

     

    The letter can be found in:

    Microsoft Word – EAA Comment Letter PIR IFRS 15 24 october 2023 IASB (azuremicroservices.io)

    Microsoft Word – EAA Comment Letter on PIR IFRS 15 sent to EFRAG 24 october

     

    Summary of our views

    Our starting point was identifying recently published papers, working papers, and dissertations that delve into various aspects of revenue recognition after implementing IFRS 15. We also consider the work on ASC 606, as the requirements of both standards are similar, and many of the results could be extrapolated, with the caveats caused by the different contexts in which IFRS 15 is applicable. From those papers, we selected and analysed those that we considered relevant and related to the PIR Request for Information.

    The literature on the direct accounting effects of the new standard (such as measurement, recognition, presentation, and disclosure) is particularly rich for disclosure and transition (i.e., Q7 and Q8 in the PIR). However, there is less prominent and rather indirect evidence available for some specific topics of the 5-step model, namely timing of revenue recognition (Q4 in the PIR), transaction price (Q3 in the PIR), and principle-agent consideration (Q5 in the PIR). The most robust evidence is available for (widely defined) user and stakeholder benefits, including capital market effects and preparers’ costs (Q1 in the PIR). Additionally, the academic literature provides multiple examples of real effects (Q11 in the PIR) for the new standard.

    The main findings from academic research are:

    • IFRS 15 is decision-useful for many stakeholders;
    • the adoption is associated with high implementation costs;
    • the impact of the new standard on the business is complex, with implementation driving significant investment in other areas, bringing additional benefits beyond accounting;
    • accounting figures are more comparable; disclosures are more relevant to users;
    • users value the full retrospective approach to transition more;
    • any negative effects identified appear to be temporary.

    We want to highlight that compared to other standards, the number of studies related to IFRS 15 (and ASC 606) at the date of writing this comment letter is relatively limited. Most of the studies we considered potentially relevant are still working papers (not published in peer-reviewed journals but distributed on websites or databases). Presumably, many are not finalised but are pending the academic peer review process. However, we still believe these studies are relevant and, thus, were of interest to the Comment Letter team.

    Despite the limitations, we believe that the results of these academic studies may be of great interest to the Board and that additional and more complete academic evidence on IFRS 15 will be available in the coming years.

     

     

  • Spillover Effect of Climate Disaster for Management Forecast

    Climate disasters not only impose substantial economic costs on firms that are directly exposed, but they also generate significant externalities. A comprehensive evaluation of climate disasters requires understanding its consequences, not only for exposed firms, but for other firms as well. In my study “Spillover Effect of Climate Disaster for Management Forecast” (forthcoming at European Accounting Review), I examine whether and how climate disasters hitting product market peers influence management forecasting and strategic planning by firms that were not exposed to significant climate disasters.

    Firms do not operate in isolation but sit within a broader system. Product market peers’ climate disasters can generate substantial uncertainty for a focal firm by disturbing its interactions with product markets. Such a shock can distort the role of the focal firm’s accounting system by diminishing the relevance and usefulness of managers’ existing information sets. This, in turn, can constrain forecasting and strategic planning of the focal firm. My paper attempts to identify indirect, spillover effects of climate disasters, which cannot be easily quantified, by examining management forecasts.

    I find that a firm is less likely to issue an earnings forecast when its product market peers experienced significant climate disasters. The spillover effects are mitigated by the focal firm’s past disaster experience or climate change-related regulatory intervention. My findings are robust to controlling for various alternative explanations. I also find some evidence that climate disasters hitting product market peers are associated with lower efficiency of a firm’s innovation efforts.

    Collectively, my evidence suggests that an idiosyncratic shock such as climate disaster causes spillover effects transmitted across the entire product market through distorting management forecasts and strategic planning. My study complements the disclosure literature by showing that the uncertainty emerging from the external environment affects management forecast. My findings have practical implications for policy makers and regulators. Consistent with social practice theory suggesting that regulatory interventions can generate positive spillovers across different practices, stringent climate change-related regulatory enforcement can help mitigate the observed negative externalities of climate disasters.

     

    This paper is forthcoming at the European Accounting Review – https://www.tandfonline.com/doi/full/10.1080/09638180.2024.2301932