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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
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664

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
477

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
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757

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
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747

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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1418

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
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988

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
1080

How often and how much information should publicly listed firms report?

Disclosure regulation is pervasive and has been increasing in developed economies, despite regulators&#8217; difficulty determining the socially optimal level of disclosure. Showcasing this difficulty, regulators have struggled to reach a consensus on the frequency and content of interim reporting for decades. For example, the European Union (EU) introduced mandatory quarterly reports in 2004, only to abolish the mandate in 2013, returning to a semi-annual reporting frequency for firms whose securities are trading on a regulated…
ARC Commitee
ARC Commitee
3 min read
0
663

Compensation Shifting from Salary to Dividends

This study focuses on the strategic behavior of owner-managers in relation to their compensation and its impact on reported earnings. We investigate whether owner-managers of smaller firms manipulate their compensation, specifically by decreasing their salaries and increasing dividends, to meet or beat the zero earnings benchmark. We emphasize that owner-managers have significant compensation discretion, enabling them to choose between salary (which decreases earnings) and dividends (which does not decrease earnings). We conduct our analysis using…
ARC Commitee
ARC Commitee
2 min read
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448

Red flags in research as a means to overcome group think

Red flags in research as a means to overcome group think &nbsp; How independent tests can help to overcome group think so as to enhance fraud detection. In his classic experiment in 1955, Solomon Asch showed that as soon as one person paints an incorrect picture, this picture is confirmed by a non-trivial number of others. In his research Asch shows four lines: the test line and lines 1, 2 and 3. Participants in his…
Jan Bouwens
Jan Bouwens
5 min read
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1218
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