nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2021‒10‒25
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. The Impact of Financial Distress, Corporate Governance, and Auditor Switching On Audit Delay By Rizal Mawardi
  2. A Q-Theory of Banks By Juliane Begenau; Saki Bigio; Jeremy Majerovitz; Matias Vieyra
  3. Dynamique au sein de la sphère normative de l’audit en France (2001-2020) By Isabelle Fabioux
  4. Disclosure Deregulation of Quarterly Reporting By Vanessa Behrmann; Lars Hornuf; Jochen Zimmermann
  5. Does consumer protection enhance disclosure credibility in reward crowdfunding? By Cascino, Stefano; Correia, Maria; Tamayo, Ane

  1. By: Rizal Mawardi (Accounting Study Program, Faculty of Economics, Perbanas Institute, Jakarta, Indonesia Author-2-Name: Sylvi Angelia Author-2-Workplace-Name: Accounting Study Program, Faculty of Economics, Perbanas Institute, Jakarta, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - The purpose of this study is to examine the effect between financial distress, corporate governance, auditor switching and audit delay. This research sample using data on a manufacturing company on the Indonesia Stock Exchange. Methodology – The analysis technique used is multiple linear regression analysis technique. Findings – The research finding show that financial distress and the size of the audit committee have a significant effect on audit delay, while the concentration of ownership, managerial ownership, change of directors, and auditor switching has no significant effect on audit delay. Second finding explain that consideration for companies listed on the Indonesia Stock Exchange to pay attention to the timeliness of submitting financial reports and independent auditor reports so as not to get sanctions from the Financial Services Authority. Novelty – Our novelty research using the relationship of Financial Distress, Corporate Governance and Auditor Switching on new research model to Audit Delay. Type of Paper - Empirical"
    Keywords: Financial Distress, Corporate Governance, Auditor Switching, Audit Delay
    JEL: M41 M42
    Date: 2021–09–30
  2. By: Juliane Begenau; Saki Bigio; Jeremy Majerovitz; Matias Vieyra
    Abstract: We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its core. The estimated model matches four facts about banks’ Tobin’s Q that summarize bank leverage dynamics. (1) Book and market equity values diverge, especially during crises; (2) Tobin’s Q predicts future bank profitability; (3) neither book nor market leverage constraints are binding for most banks; (4) bank leverage and Tobin’s Q are mean reverting but highly persistent. We examine a counterfactual experiment where different accounting rules produce a novel policy tradeoff.
    Keywords: banks, leverage dynamics, market vs. book values, delayed accounting
    JEL: G21 G32 G33 E44
    Date: 2021
  3. By: Isabelle Fabioux (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - Institut National de l'Horticulture et du Paysage)
    Abstract: This paper deals with auditing standard setters in France, in a longitudinal perspective. We combined the sociological and historical approaches of neo-institutional theory and offer a dynamic analysis of the evolution of the actors involved and their attributions. With an interpretative approach, the paper is based on a study involving 24 interviews, a participant immersion and a document review for the 2001-2020 period. It highlights three phases during which the balance of power evolves according to isomorphic mechanisms.
    Abstract: Ce papier s'intéresse aux acteurs de la normalisation de l'audit en France, dans une perspective longitudinale. En mobilisant les approches sociologique et historique de la théorie néoinstitutionnelle, nous proposons une analyse dynamique de l'évolution des acteurs en présence et de leurs attributions. Notre démarche est interprétative et repose sur 24 entretiens, une immersion participative et une étude documentaire sur la période 2001-2020. Elle fait ressortir trois phases au cours desquelles le rapport de force évolue au gré de mécanismes isomorphiques.
    Keywords: normalisation de l'audit,néoinstitutionnalisme,régulation,H3C,profession de l'audit auditing standard-setting,new institutionalism,regulation,audit profession
    Date: 2021–06–17
  4. By: Vanessa Behrmann; Lars Hornuf; Jochen Zimmermann
    Abstract: In this article, we investigate the deregulation efforts resulting from the 2015 transposition of the EU’s Transparency Directive into German law and analyze whether a reduction in the minimum content requirements for quarterly reporting increases information asymmetries and decreases firm value. Using a novel dataset of firms that are listed on the Frankfurt Stock Exchange, our results reveal that over the period from 2012 to 2019, lower quarterly reporting levels on average have increased information asymmetry and reduced firm value. We find that this effect is stronger for second-tier stocks and firms with low media coverage. Our results are robust to potential selection effects regarding firms’ choice of quarterly reporting content levels.
    Keywords: quarterly reporting, disclosure deregulation, financial reporting, interim management statement, transparency directive
    JEL: G14 G32
    Date: 2021
  5. By: Cascino, Stefano; Correia, Maria; Tamayo, Ane
    Abstract: We study how the interplay of disclosure and regulation shapes capital allocation in reward crowdfunding. Using data from Kickstarter, the largest online reward crowdfunding platform, we show that, even in the absence of clear regulation and enforcement mechanisms, disclosure helps entrepreneurs access capital for their projects and bolsters engagement with potential project backers, consistent with the notion that disclosure mitigates moral hazard. We further document that, subsequent to a change in Kickstarter’s terms of use that increases the threat of consumer litigation, the association between project funding and disclosure becomes stronger. This evidence suggests that consumer protection regulation enhances the perceived credibility of disclosure. We find the effect of the change in terms of use to be more pronounced in states with stricter consumer protection regulations. Taken together, our findings yield important insights on the role of disclosure, as well as on the potential effects of increased regulation on crowdfunding platforms.
    Keywords: crowdfunding; Disclosure; Consumer Protection; Regulation; Enforcement
    JEL: G18 M41 O31 O38
    Date: 2019–12–01

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