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Are Foreign Donors Good Monitors?

Economic and accounting literature has long found that foreign investments provide a multitude of benefits to local stock markets and economies. Foreign inflows to for-profit firms are found to harvest not only capital but also managerial and marketing skills in addition to business connections and human resource development. For-profit foreign institutional investors have also been documented as improving firm performance, corporate governance, firm value, and corporate transparency. For example, prior research has shown that for-profit…
erharris
erharris
7 min read
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Non-Financial Disclosure and Corporate Financial Performance Under Directive 2014/95/EU: Evidence from Italian Listed Companies

In the European Union countries, the non-financial disclosure (NFD) of large entities is mandated by law. Specifically, the Directive 2014/95/EU (known as the NFRD) requires large firms to report information covering aspects such as environmental, social, and employee-related matters, respect for human rights, and anti-corruption and bribery concerns. In addition to requiring companies to report information on certain aspects, the NFRD aimed at enhancing disclosure quality. Did this regulation serve its purpose? Mandatory disclosure is assumed to…
Blerita Korca
Blerita Korca
2 min read
0
960

EAA diversity conversations – new event

LGBTQI+ in Accounting: Research, Education & Practice Let’s talk about sex(uality)! Often not spoken about in accounting, diverse sexualities have represented a stigma accountants would often need to conceal within workplaces to avoid being excluded from potential career progression. Current progressive socio-political trends and cultural diversity movements have seen a change in pace as more and more accounting firms move to adopt and promote LGBTQI+ diversity and inclusion initiatives. Join Alessandro Ghio, Nick McGuigan and…
ARC Commitee
ARC Commitee
2 min read
0
728

Analyst Revenue Forecasts and Firm Revenue Misstatements

In a recent study, published in European Accounting Review, Stephanie Hairston and I, examine whether analyst revenue forecasts induce or deter revenue misstatements. Increasingly, analysts provide forecasts of financial items in addition to earnings. Of these forecasts, revenue forecasts are the most common type of forecasts issued in addition to earnings forecasts. The prevalence of revenue forecasts reflects the importance of revenue in capital markets, given that revenues are a key driver of firm value,…
tingchih
tingchih
3 min read
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759

How changing perceptions and priorities shape corporate reporting

In 2015, Siemens took stakeholders and observers by surprise by drastically reducing the content of their annual report. “Less is more” was their answer to disclosure overload. Taking Siemens as a case study, Kathrin Oberwallner, Christoph Pelger and Thorsten Sellhorn explored the forces and dynamics that shape corporate reporting. They find that internal forces can play an important role for disclosure strategies.   Their paper “Preparers’ Construction of Users’ Information Needs in Corporate Reporting: A…
ARC Commitee
ARC Commitee
< 1 min read
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619

Qualitative research interviews using online video technology – challenges and opportunities

Qualitative researchers may struggle to organise face-to-face interviews, because of Covid19-related travel restrictions and budget constraints. Online interviews are a viable alternative. Read all about the opportunities and how to deal with the challenges in the following paper, which is available at&nbsp;https://doi.org/10.1108/MEDAR-03-2021-1252&nbsp;&nbsp;
Matteo Molinari
Matteo Molinari
< 1 min read
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553

The Effect of Cost Stickiness on Peer-Based Valuation Models

In a recent study, published in European Accounting Review (EAR), Niklas Kreilkamp, Sophie Teichmann and Arnt W&ouml;hrmann examine the effect of cost stickiness on corporate valuation using peer-based valuation. &nbsp; Peer-based valuation is a popular method &mdash;particularly from a practitioner&#39;s perspective&mdash; to derive an estimate of firm value. This is achieved by multiplying a value indicator (such as the target&rsquo;s EBITDA) with the corresponding pricing multiple derived from a peer group. It is assumed that…
ARC Commitee
ARC Commitee
3 min read
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1003

Let’s put sustainability back into the sustainability reporting debate

Main points: presents three possible scenarios as to how “sustainability” reporting might develop; the current direction will not facilitate harmonisation or sustainable development; a modification will facilitate both; taking a step back, rethinking and re-engaging would offer more possibilities; includes a link to a video discussion with Sir David Tweedie (ex IASB chair) and Mervyn King (ex GRI and IIRC chair) on these issues. The talk about the ‘alphabet soup’ of reporting frameworks and standards…
Carol Adams
Carol Adams
6 min read
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959

IAASB PUBLIC CONSULTATION OPENS FOR PROPOSED NEW STANDARD FOR AUDITS OF FINANCIAL STATEMENTS OF LESS COMPLEX ENTITIES

New Proposed Stand-Alone Standard to Meet Market Needs Jul 23, 2021 | New York, New York | English Today, the International Auditing and Assurance Standards Board (IAASB) published an exposure draft of its new, stand-alone&nbsp;standard for audits of financial statements of less complex entities. This landmark new draft standard responds to demands to have a set of high-quality requirements tailored for the needs of less complex entities (LCEs). The new standard for audits of financial…
BAHA DIYAROV
BAHA DIYAROV
2 min read
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1851

Gender in the Accounting Profession – announcement

The EAA Virtual Activities Committee is delighted to host a Roundtable Conversation on &ldquo;Gender in the Accounting Profession&rdquo;, which will take place on Zoom, on&nbsp;September 22, 2021 at 4.00pm CEST. Registration is now open&nbsp;here. Due to unforeseen circumstances Emily Martin will not be able to participate to the event, but we are happy to announce that Prof. Andrea Romi has accepted to take part to the debate, and will delve into this topic together with…
GIOVANNA MICHELON
GIOVANNA MICHELON
3 min read
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2065
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