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Purpose: This study aims to examine the impact of extensible business reporting language (XBRL) technology and its functionality on various aspects of financial reporting and its overall quality. Design/methodology/approach: To conduct this study, data was collected from a variety of professionals, including accountants, auditors, tax advisors and others. A structured research instrument was developed, and the collected data were analysed using structural equation modelling and mediation analysis techniques. Findings: The study's results showed that XBRL technology and its functionality have a noteworthy impact on different aspects of financial reporting. Moreover, the various aspects of financial reporting positively affect the overall quality of financial reporting. Research limitations/implications: This study solely relied on the opinions of various professionals regarding the current issue under investigation and did not empirically assess the reporting practices of companies by examining their XBRL-based reports. Additionally, it concentrated solely on financial reporting aspects and did not account for non-financial aspects. The main theoretical contributions of this paper to technology in financial reporting, XBRL and accounting literature are that it sheds light on the influence of the use of technologies in the business reporting process and their influence on various aspects of business reporting, which has only received confined focus from earlier studies so far. Practical implications: This study's findings could provide valuable insights to the managerial teams of organizations seeking to digitize their business reporting practices, specifically in areas such as regulatory compliance, integrated reporting and timely dissemination of reports in a sustainable way. Furthermore, it could help these teams reap the benefits of technology for various regulatory compliance matters. Originality/value: This study could assist business organizations and regulatory authorities in adopting and implementing technology such as XBRL for accounting and business reporting. Furthermore, the study's findings can aid in enhancing financial reporting practices by considering emerging aspects such as ESG and sustainability aspects. [ABSTRACT FROM AUTHOR]

Purpose – As the influence of institutional investors over managerial decision-making grows, so does the importance of understanding the effect of institutional investor ownership (IO) on firm outcomes. The authors take a comprehensive approach to studying the effect of IO on earnings management (EM). Design/methodology/approach – The authors study the relation between IO and EM using a sample of 59,503 listed U.S. firm-year observations from 1981–2019. The authors proxy EM with earnings surprises and with accrual-based and real activity measures. The authors test for nonlinear relations and analyze changes resulting from the passage of the Sarbanes–Oxley Act. Findings – The findings support a positive IO-EM relation overall, but show that the relation is dynamic and heavily context-dependent with evidence of nonlinearity. The authors also find evidence that IO positively affects accrual-based EM and real activities EM negatively. Originality/value – To the authors’ knowledge, this is the first study of the IO-EM relation to consider evidence of nonlinearity in the U.S. context, measuring changes to the relation over time, and with the use of several measures of EM. [ABSTRACT FROM AUTHOR]

Skill, experience, and expertise are three factors that might influence the quality of an audit; forensic accountants can conduct higher-quality audits since they have completed a specialized fraud course. Thus, the purpose of this article is to examine how forensic accounting methods affect the caliber of audits. All of the businesses that are listed on the stock exchanges in Tehran and Iraq make up the statistical population. To determine the sample, 35 enterprises from 2013 to 2020 in Iraq and 100 companies from 2014 to 202 in Iran were chosen using the systematic elimination approach. The study hypotheses were tested using the multi-variate regression model that was based on the combined data. The findings indicated that the quality of audits in Iran and Iraq is positively impacted by forensic accounting techniques. Additionally, the findings demonstrated that the number of independent audit report paragraphs in Iran and Iraq is not significantly impacted by the forensic accounting technique. The importance and application of accounting and forensic auditing are felt more than before due to the lack of professional activities related to forensic accounting in the Iraqi economic environment, the rise in cases of financial embezzlement and corruption, the need for financial discipline along with economic development, and the preservation of public trust in the accuracy of financial information. Thus, doing this research can help enhance the corporate climate in Iran and Iraq by determining the significance and requirement of implementing forensic auditing. [ABSTRACT FROM AUTHOR]

We examine how governments use accounting information, specifically administrative ratios, in their decisions regarding the funding of nonprofit organizations (NPOs). Using data in the setting of Canada, we find that when funding NPOs for the first time, governments consider NPOs' sustainability and are more likely to award funds to NPOs with reasonably high administrative ratios, as long as these ratios are below the government-suggested threshold. In subsequent funding decisions, governments tend to ignore administrative ratios and stick with previously funded NPOs to extend subsequent funding(s). We further find that governments react to low-quality accounting ratios by reducing the likelihood and the value of funds awarded, and this reaction is more pronounced at initial funding than at subsequent funding(s). The practical and policy implications of these findings are discussed. [ABSTRACT FROM AUTHOR]

The current study provides empirical evidence on how Indian Accounting Standards (Ind‐AS hereinafter) adoption has affected earnings management (EM hereinafter) in India. The study uses the Beneish Model and Modified Jones model to detect EM. The sample of the study comprises 240 companies listed in the S&P BSE MidSmallCap index for the period 2013–2019. The results of the Modified Jones model reveal that Ind‐AS have no significant effect on EM. However, the Beneish model shows that all ratios except leverage index have a significant relationship with EM after Ind‐AS adoption. Nine industries out of 28 sample industries are suspectable to indulge in manipulating financial statements. The ratio of manipulators to nonmanipulators has grown after Ind‐AS adoption. The paper adds to the literature by examining the impact of new accounting standards on EM in an emerging economy. The findings of the study would be relevant to the public accounting bodies, regulators, accounting professionals, and the public at large. [ABSTRACT FROM AUTHOR]

The aim of this study is to research the accounting culture related factors affecting financial reporting quality. Empirical research is conducted on 177 manufacturing firms listed in Borsa İstanbul. Data for the 2013-2017 period is collected from the financial statements, annual activity reports and Public Disclosure Platform. Accounting based approaches are used to measure financial reporting quality and the accounting culture factors are based on empirical measures. The relationship between accounting culture and financial reporting quality is analyzed by survival analysis method. Findings indicate that the accounting culture factors of professionalism, transparency and flexibility enhance financial reporting quality. [ABSTRACT FROM AUTHOR]

This study examines the distribution of the current ratio among large Belgian nonprofit organizations (NPOs). A current ratio falling below one signals (potential) liquidity problems among different types of stakeholders. Consistent with managerial intervention to avoid the current ratio falling below one, we observe significantly more (fewer) observations meeting or just exceeding (falling below) the threshold of one than would normally be expected. This discontinuity around one disappears when considering the distribution of the "pre-managed" current ratio (i.e., the current ratio corrected for abnormal working capital accruals). The latter observation is consistent with managerial intervention in the financial reporting process to avoid the current ratio falling below one. The aforementioned findings are supported by a multivariate regression model revealing significantly higher abnormal working capital accruals for observations having a current ratio equaling or exceeding one, but a pre-managed current ratio falling below one. [ABSTRACT FROM AUTHOR]

The present study aims to realize and become more familiar with the impact and the functions of audit committee and its characteristics, including the expertise and independence of members, related experiences, and change of auditor on the quality of financial reporting in companies listed on the Tehran Stock Exchange (TSE). The required data are gathered from 105 listed companies on the TSE during 2012-2016 and logistic regression model is used for the hypothesis testing. The findings of the study indicate a positive and significant impact of audit committee characteristics, except audit independency which represents a negative association, and changes of auditor on financial restatement. The innovation of the present study relative to other conducted studies lies in the simultaneous evaluation of audit committee characteristics and change of auditor on the quality of financial reporting. Such results could be appropriate for Stocks and Securities practitioners to comply with the chart of the audit committee, to necessitate the use of corporate governance principles, and to voluntarily provide a corporate governance report. [ABSTRACT FROM AUTHOR]

Research on the quality of narrative information of annual financial reports has long been dominated by a lack of tools that permit an objective analysis of qualitative disclosure. This study is focused on accounting disclosure research and proposes a comprehensive index that uses Key Performance Indicators to enhance understanding of the quality of narrative information during the period of 2002–2007, using a sample of European (EU) and USA (US) firms operating in that context. We use previous research of Garefalakis et al. (Corp Ownersh Control 13(4):317–334, 2016) to underscore the relation between the Management Commentary Index and the Weighted Management Commentary Index with several explanatory variables that put emphasis on firms' attributes regarding their volumes in total assets, their book values, as well as the use of corporate governance indicators, etc. in a regional level. Our results show that the US firms with the mandatory requirements do not provide a greater amount of disclosure information in their reporting than their counterparts in Europe (i.e. firms located in Western and Northern Europe). The proposed approach seeks to enhance understanding of the quality of companies' narrative information disclosure and reveals a critical path to analyze the link between corporate governance and firms' performance. [ABSTRACT FROM AUTHOR]

Capital controls as restrictions on capital flows are a tool proposed as a cure to the destabilizing market movements of the 1970s (i.e., Tobin, 1978) despite the criticism that they have received (Edwards, 1999). Capital controls resurfaced during the European Financial Crisis and the restrictions imposed on capital flows in Cyprus and Greece. These were the first instances of capital control implementation in the European Union's history and had various effects on firms' financial positions. By using a sample of EU countries and distinguishing between austerity and capital controls periods, we assess the effects of capital controls on the stock liquidity of firms. All of the sample countries have a common financial reporting framework (International Financial Reporting Standards -IFRS), and some of them implemented a range of different measures from less intensive, such as increases in tax rates, to more intensive, such as the enforcement of capital controls, in their effort to stabilize their economies. For the task at hand, we specifically engage two accounting determinants of information asymmetry, namely, conditional conservatism and the level of earnings management. Our results show that financial reporting quality as measured by higher conditional conservatism and lower earnings management is beneficial for liquidity. However, during the capital controls period, the relation between conditional conservatism and liquidity becomes negative, and this negative relation relates to less risky firms. Thus, the negative relation between conditional conservatism and liquidity is likely due to investors keeping more conservative firms in their portfolios as a measure against the crisis. [ABSTRACT FROM AUTHOR]

Currently, businesses face an information disclosure approach involving the triple bottom line (social, environmental, and financial). This paper aims to investigate the relationship between corporate social responsibility (CSR) information and financial reporting quality (FRQ). We argue that CSR companies behave differently in preparing financial accounting reports. Recent literature supports this theme, providing two distinct hypotheses: transparent financial reporting and retreatment. We used a sample of 1,181 companies from the years 2012 to 2016 to identify if socially responsible companies have better quality financial accounting information. In contrast to the hypotheses raised, we didn't find a relationship between the CSR disclosures and the FRQ proxies. This suggests that sustainable companies do not explain lower or higher levels of earnings management. Our findings remain unchanged when we replace results management through discretionary accruals for manipulations of operating activities. Estimates with comparable samples also didn't change the interpretations of the results. [ABSTRACT FROM AUTHOR]

The purpose of this study is to determine the effects of international financial reporting standards on financial quality. In this regard, the effects of UFRS on financial reporting quality is examined with panel regression analysis by using before UFRS and after UFRS (2005-2008) data of 50 enterprises which operate in BIST manufacturing sector. According to findings of the analysis is may be seen that there is an overall significant increase the financial reporting quality in enterprises after from UFRS. [ABSTRACT FROM AUTHOR]

Financial reporting is one of the most important outputs of the accounting information system that provide necessary information to make a economic desicion and evaluation of profitability and performance of enterprises. On the other hand, financial reporting quality includes the accuracy of reported information to better identify the activities of the companies. Pratically investors wants to get information about cash flow of company's which will invest. Trustworthy financial reporting information is an element that helps managers to make invesment desicion. Financial reporting quality can increase investment efficiency by reducing information asymmetry. In many previous studies, it has been found that financial reporting qualifications increase the investment efficiency. In this context The aim of paper is to determine impact of financial reporting quality on investment efficiency. In accordance with this purpose, the data for 70 companies operating in the manufacturing industry in BIST (Istanbul Stock Exchange) are utilized from between the years 2010-2014. As dependent variable in this research, investment efficiency is used and financial reporting quality is used as independent variable. In this study, panel data analysis panel regression analysis is conducted. In the result of analysis shows that there is a negative correlation between financial reporting quality and investment efficiency (for low or excessive investments. [ABSTRACT FROM AUTHOR]

We investigate the impact of organizational religiosity on the earnings quality of listed banks in the Middle East and North Africa region. We analyze Islamic banking institutions, which operate within strict religious norms and extended accountability constraints, and compare them with their conventional counterparts during 2008–2013. We find that Islamic banks are less likely to manage earnings and that they adopt more conservative accounting policies. Based on these findings, we argue that religious norms and moral accountability constraints in these organizations have a significant impact on financial reporting quality and agency costs, which have implications for both regulators and market participants. [ABSTRACT FROM AUTHOR]

The paper examines effect of firms' structure on the financial reporting quality of Bangladesh quoted manufacturing firms using assets, leverage and share dispersion and residuals of modified EBO model as proxies of firm's structure and financial reporting quality respectively. The data is extracted from 12 sample firms representing the all quoted manufacturing companies in Bangladesh as the population of the study. Multiple regressions are used as a tool of analysis for the study. The result reveals a positive strong relationship between firm structure and financial reporting quality of quoted manufacturing firms in Bangladesh. It is therefore, recommended among others that the regulators should enforce more on the financial statements disclosure and transparency among companies quoted on the DSE as to ensure a higher quality of financial reporting. [ABSTRACT FROM AUTHOR]

The board of directors is an elite group that faces multifaceted tasks. The board needs to implement decisions on a wide variety of subject matter. These decisions are often delegated to specialized sub-committees within the board. The different objectives of each sub-committee can result in conflicting interests leading to decisions that are sub-optimal. For example, at times, the objectives of the compensation and the audit committee are not aligned. The objective of compensation committees is to grant CEOs compensation packages reflective of their performance. Yet, these compensation packages might contain incentives that could motivate CEOs to influence the financial reporting process in order to reflect better performance, increasing the risk of poor quality financials. In contrast, the objective of audit committees is to oversee the quality of the financial reports and the process that leads to them. Therefore, they would favor compensation packages that reduce the risk of earnings manipulation. We examine public companies that have overlapping compensation and audit committee members and find a higher proportion of CEO incentive compensation in companies with less overlap among audit and compensation committee members. These results suggest that separating the members within these committees might contribute to the effectiveness of board decisions. [ABSTRACT FROM AUTHOR]