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Understanding the Role of Audit Committee Chairs in Enhancing Audit Quality

In the complex world of financial reporting, Audit Committee Chairs (ACCs) play a pivotal role in ensuring the integrity of corporate governance. What are their personal objectives and incentives that guide them in their actions to maintain and improve audit quality? The recent European Accounting Review article “Audit Committee Chairs’ Objectives and Risk Perceptions: Implications for Audit Quality” (Jürgen Ernstberger, Bernhard Pellens, André Schmidt, Thorsten Sellhorn & Katharina Weiß) shows how ACCs’ personal objectives and…
Thorsten Sellhorn
Thorsten Sellhorn
3 min read
0
219

Earnings Management and the Role of Moral Values in Investing

In a world where financial returns often take center stage, this study sheds light on the powerful role of moral values in investment decisions. This research delves into how investors perceive CEOs based on their engagement in earnings management and how these perceptions, coupled with the investors’ own moral values, influence their investment choices. The study primarily revolves around the concept of earnings management – the practice where CEOs can legally influence reported earnings. In…
ARC Commitee
ARC Commitee
2 min read
0
388

Enhancing the Social Relevance of Accounting Research

What is the value of accounting research for diverse stakeholders? While this question is certainly very difficult to answer, let alone quantify, we often hear concerns regarding the lack of relevance beyond academia. Publishing high-quality research that addresses relevant research questions, however, is only the first step toward social impact beyond academia. Other criteria for accounting research to extend its social impact include translating it into accessible language for non-academics and effective dissemination. In other…
JOCHEN PIERK
JOCHEN PIERK
4 min read
0
467

International PhD Visit Scheme – Simon Thies

Simon Thies is a PhD student at the University of Duisburg-Essen, Germany. He recently concluded his visit at Tilburg University.   During my visit, I had many interesting conversations with inspiring and supportive researchers that significantly helped me develop my projects. The reading group and the accounting research seminars provided a great opportunity to learn about current research topics and to witness diverse perspectives on research projects. Together with several colleagues, I also attended the…
ARC Commitee
ARC Commitee
2 min read
0
469

The Impact of Transparency on Banks’ Loan Loss Provisioning: A Closer Look at Privately Held Banks

Transparency plays a pivotal role in maintaining stability and trust in the banking sector. However, in many countries, a significant fraction of banks is privately held, with few incentives for transparent disclosures and notoriously low pressure from stakeholders absent any capital market. In fact, the traditional business model of these banks relies on a certain level of proprietary knowledge and confidentiality. Privately held banks are thus worth a closer look when it comes to transparency…
ARC Commitee
ARC Commitee
3 min read
0
310

Professor Steve Zeff’s digital library

Rice University’s Jones Graduate School of Business is pleased to share Professor Steve Zeff’s digital library with the EAA community: https://business.rice.edu/stephen-zeff-digital-library. This open digital library was created by the Jones School as a permanent repository for Steve’s contributions to our understanding of the historical evolution of financial reporting standards and regulations in the U.S. and globally. The website includes several short video clips and two of Steve’s related publications. In the first video series, Steve…
BAHA DIYAROV
BAHA DIYAROV
< 1 min read
0
581

Update from the EAA Stakeholder Reporting Committee – Response to the Request for Information- Consultation on Agenda Priorities, issued by the International Sustainability Standards Board (ISSB) Posted by Liz Demers and Joanna Krasodomska on behalf of the EAA Stakeholder Reporting Committee (EAA SRC).

The ISSB published the Request for Information Consultation on Agenda Priorities on 4 May 2023. The objective of the agenda consultation was to ask all those interested in sustainability-related financial reporting for their views on: the strategic direction and balance of the ISSB’s activities; the suitability of criteria for assessing which sustainability-related matters (including topics, industries and activities) to prioritize and add to the ISSB’s work plan; and a proposed list of new research and…
JOANNA KRASODOMSKA
JOANNA KRASODOMSKA
2 min read
0
548

New version: Introductory Guide to Using Stata in Empirical Financial Accounting Research

A new version of my Stata guide is now available and freely accessible via Github (including code and data examples). Please see https://github.com/dveenman/stataguide or here to go directly to the pdf. The objective of this guide is to assist BSc/MSc students, PhD students, and junior researchers in using Stata for empirical archival research. Stata is a powerful program that can be used to analyze many different research questions in the fields of accounting, finance, economics,…
DAVID VEENMAN
DAVID VEENMAN
2 min read
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971

One ESG metric is like squaring a circle

It appears to be extremely hard to produce  a meaningful ESG score. Standard and Poor’s recently decided that it will no longer rank companies’ environmental, social and governance risks from 1 to 5 . This decision can be understood in the light of how aggregate ESG scores are constructed as  discussed in a recent FT publication: “Companies with good ESG scores pollute as much as low-rated rivals.” This article made it clear that the current…
Jan Bouwens
Jan Bouwens
4 min read
0
833

The lease standard has changed, and firms’ transition disclosures confuse more than they clarify

In a paper recently published in the European Accounting Review, we study the text of the transition disclosures in firms’ financial statements explaining the likely effects of a new standard. For a sample of almost all affected firms, we extract the text that refers to how firms plan to transition to the new lease standard. The text runs from a couple of dozen to sometimes over 500 words per disclosure. We then quantify this text…
ARC Commitee
ARC Commitee
3 min read
0
866