Using Google Scholar citations to rank accounting programs: a global perspective

We conduct an assessment on accounting program research performance based on Google Scholar citations for all articles from a set of 23 quality accounting journals during 1991–2010. Our work is a new approach in accounting by directly measuring the impact of the faculty research in accounting programs. We find that the top-5 accounting programs are the University of Pennsylvania, the University of Chicago, Stanford University, the University of Michigan, and Harvard University. These top programs produce a large number of high impact articles. In addition, using the mean citations from all articles in a journal, we find that the Review of Accounting Studies (RAST) is a top-5 journal, replacing Contemporary Accounting Research (CAR).     

Ranking accounting journals using dissertation citation analysis: A research note

Prior literature on accounting journal rankings has provided different journal lists depending on the type of examination (citations- vs. survey-based) and the choice of journals covered. A recent study by Bonner, Hesford, Van der Stede, and Young (2006) [Bonner, S., Hesford, A., Van der Stede, W. A., & Young, M. S. (2006). The most influential journals in academic accounting. Accounting, Organizations and Society, 31(7), 663–685] documents disproportionately more citations in the financial accounting area, suggesting a financial accounting bias in the accounting literature. We use citations from accounting dissertations completed during 1999–2003 to provide a ranking of accounting journals. The database allows us to assess the research interests of new accounting scholars and the literature sources they draw from. Another innovation is our ranking of accounting journals based on specialty areas (auditing, financial, managerial, tax, systems, and other) and research methods (archival, experimental, modeling, survey, and other). To mitigate the financial accounting bias documented by Bonner et al. (2006), we derive a ranking metric by scaling (normalizing) the journal citations by the number of dissertations within each specialty area and research method. Overall, the top journals are, JAR, AOS, TAR, and JAE. We also provide evidence that top journal rankings do vary by specialty area as well as by research methods.     

An examination of the peer review process in accounting journals

An anonymous survey of university accounting faculty was conducted to assess current perceptions of the peer review process in accounting journals. The responses revealed that (a) most respondents are fairly positive about the peer review process, especially the process being fair/unbiased and improving the quality of research; (b) the most serious perceived threats to review process integrity involve reviewer misconduct (e.g., delaying reviews for self-interest or rejecting papers for revenge); (c) editors allowing excessive delays in the process and institutional favoritism by editors are seen as the most prevalent issues; (d) editors/associate editors of high-level or top-tier journals are most positive about the review process, while assistant professors, those at doctoral-granting institutions, and those submitting to top-tier journals are least positive; and (e) respondents’ suggestions for improving the review process emphasize improving timeliness, reducing favoritism, and reconsidering the notion of blind reviews (some consider blind reviews to be impossible, but others want to ensure that reviews are blind). Based on the results and other sources, we offer a proposed starting point for a peer review code of conduct for accounting journals.     

A new method for ranking academic journals in accounting and finance

Given the many and varied uses to which journal rankings are put. interest in ranking journal ‘quality’ is likely to persist. Unfortunately, existing methods of constructing such rankings all have inherent limitations. This paper proposes a new (complementary) approach, based on submissions to RAE 2001. which is not restricted to a pre-defined journal set and, importantly, is based on quality choice decisions driven by economic incentives. For three metrics, submissions to RAE 2001 are compared with the available set of publications to provide evidence on the perception of journal quality, a fourth metric is based on the overall RAE grades, and an overall ranking is produced.     

Threshold citation analysis of influential articles,journals, institutions and researchers in accounting

We use a threshold citation approach to measure the influence of articles, journals, institutions and researchers in accounting research. The Journal of Accounting Research, the Journal of Accounting and Economics and Accounting Review are the 3 most influential journals in accounting research. The 3 most influential institutions in accounting research are the University of Chicago, the University of Pennsylvania and the University of Michigan, while the 3 most frequently cited authors in accounting research are Richard G. Sloan, Robert E. Verrecchia and Paul M. Healy.     

Measuring the impact of sales on earnings and equity price

In this paper we examine how sales affect earnings and in turn the stock price using a model in which sales contribute to earnings by a fixed sales margin rate and the stock price responds more sensitively to sales-induced earnings than to non-sales-induced earnings. We report that the regression coefficient of the sales margin (2.54) is about three times the earnings response coefficient (0.85) for the full sample and can be as high as 19 times the earnings response coefficient for an industry (i.e., 11.95 vs. 0.62 for restaurants). We contribute to the literature by identifying and documenting factors that make separating out the sources of earnings more important in equity pricing.

The demise of the ARC journal ranking scheme: an ex post analysis of the accounting and finance journals

The recent abolition of the ARC journal ranking scheme is indicative of some problematical features of journal ranking in general and the ARC scheme in particular. An alternative citation‐based ranking scheme is applied to the accounting and finance journals to highlight some loopholes in the abandoned ARC scheme and provide some suggestions for how to proceed with ERA 2012. By re‐ranking journals according to their citation indices, it is demonstrated that the ARC ranking placed a large number of journals where they do not belong. As a result, the ARC scheme induced some adverse behavioural changes with respect to preferred publication outlets.     

The impact of contingencies on management accounting system development

Four hypotheses relevant to the contingency theory of management accounting are presented. Data relate to the period 1994–98 for a sample of new Scottish microfirms. First, correlation analysis is applied to test the hypothesis that the introduction of management accounting system (MAS) developments is related to the timing of contingent events such as cashflow crises, shortfalls of finance, and innovation. Second, cluster analysis is used to test the hypothesis that contingencies cluster to form three configurations of small firms, adaptive, running blind, and stagnant. Third, regression analysis is used to test the hypothesis that an index of organizational form, measured by weighted headcount, is explained by aspects of the generic contingencies, technological uncertainty, production systems, business strategy and market environment. The fourth hypothesis is that MAS complexity is determined by sub-unit interdependence, market dynamics, and work methods. The four hypotheses tested support several aspects of contingency theory, as modified to a small firms context.     

Drivers of research impact: evidence from the top three finance journals

We study the characteristics of all published papers in the top three finance journals (JF, JFE and RFS), and how these paper characteristics affect the number of citations in Google Scholar and the Web of Science database. First, we find the characteristics in the universalist perspective remain constant while the characteristics in the constructivist and presentation perspectives increase over time. Second, some characteristics are significantly different between the high-impact and the low-impact papers. Third, paper quality, research method, journal placement and paper age are the most important drivers. Last, different drivers play different roles in different journals.     

The impact of the new OHADA accounting system on the judgments and decisions of Cameroonian bankers

Cameroon and 15 other African States belonging to the Organization for the Harmonization of Business Law in Africa (OHADA) adopted the Uniform Act Organizing and Harmonizing Undertakings' Accounting Systems on March 23, 2000, which scuttled the OCAM accounting plan in favor of the new OHADA accounting system (SYSCOHADA). Companies were required to adopt SYSCOHADA for company accounts and consolidated accounts beginning on January 1, 2001, and January 1, 2002, respectively. The goal of this study is to compare the impact of the presentation format and informational content of both accounting systems on the judgments and decisions of bankers, and, more specifically, to find out whether the information contributed by SYSCOHADA has changed the judgments and decisions bankers made under the old OCAM accounting plan. To that effect, a field experiment was conducted with Cameroonian bankers using a within-subjects design. Significant differences were noted in bankers' underlying judgments (operating income, net income, cash flow, leverage, liquidity, and ability to raise capital) as well as in their initial judgments about profitability and financial structure. Conversely, no significant differences were noted with respect to other judgments and decisions, i.e. principal judgments about the overall risk rating and overall risk trend, the loan decision, and the interest rate to charge (risk premium). Further, the new statement of sources and applications of funds (SSAF) influenced their underlying judgments about operating income, leverage, liquidity, and ability to raise capital, as well as their initial judgments about financial structure.     

The impact of introductory accounting courses on student perceptions about the purpose of accounting information and the objectives of business: A comparison of the UK and Japan

This paper is concerned with the impact of introductory financial accounting courses on student perceptions of business objectives. The paper reports the results of a questionnaire survey of UK and Japanese university students which investigated their views at the start and end of an introductory financial accounting module. The views of Japanese students, in comparison with those from the UK, are of particular interest given evidence in the literature that traditional “social market” traditions in Japan are being influenced by Anglo-American “stock market” values. Our results are consistent with such a phenomenon in that Japanese students’ values regarding business objectives show significant changes that are not mirrored by changes in the perceptions of their UK counterparts. We suggest that accounting education is acting as a conduit for views more commonly held in Anglo-American societies.     

The impact of constructive operating lease capitalisation on key accounting ratios

Current UK lease accounting regulation does not require operating leases to be capitalised in the accounts of lessees, although this is likely to change with the publication of FRS 5. This study conducts a prospective analysis of the effects of such a change. The potential magnitude of the impact of lease capitalisation upon individual users' decisions, market valuations, company cash flows, and managers' behaviour can be indicated by the effect on key accounting ratios, which are employed in decision-making and in financial contracts. The capitalised value of operating leases is estimated using a method similar to that suggested by Imhoff, Lipe and Wright (1991), adapted for the UK accounting and tax environment, and developed to incorporate company-specific assumptions. Results for 1994 for a random sample of 300 listed UK companies show that, on average, the unrecorded long-term liability represented 39% of reported long-term debt, while the unrecorded asset represented 6% of total assets. Capitalisation had a significant impact (at the 1% level) on six of the nine selected ratios (profit margin, return on assets, asset turnover, and three measures of gearing). Moreover, the Spearman rank correlation between each ratio before and after capitalisation revealed that the ranking of companies changed markedly for gearing measures in particular. There were significant inter-industry variations, with the services sector experiencing the greatest impact. An analysis of the impact of capitalisation over the five-year period from 1990 to 1994 showed that capitalisation had the greatest impact during the trough of the recession. Results were shown to be robust with respect to key assumptions of the capitalisation method. These findings contribute to the assessment of the economic consequences of a policy change requiring operating lease capitalisation. Significant changes in the magnitude of key accounting ratios and a major shift in company performance rankings suggest that interested parties' decisions and company cash flows are likely to be affected.     

The impact of IFRS on accounting quality: Evidence from Greece

This paper examines the impact of IFRS adoption on the quality of accounting information within the Greek accounting setting. Using a sample of 101 firms listed in the Athens Stock Exchange (ASE) for a period of eight years (2001–2008) we find convincing evidence that the implementation of IFRS contributed to less earnings management, more timely loss recognition and greater value relevance of accounting figures, compared to the local accounting standards. Also, our findings document that audit quality further complements the beneficial impact of IFRS since those companies that are audited by Big-5 audit firms exhibit higher levels of accounting quality. Our findings are robust in regard to different model specifications and after controlling for firm-specific effects like size, risk, profitability and growth opportunities.     

Evidence of the impact of mandatory changes in accounting principles on corporate loan agreements

The Theory in this paper predicts that mandatory changes in accounting princples can affect the measurement rules defined in restrictive covenants in firms' lending agreements. Consequently, those mandatory changes can have an impact on the value of a firm's equity, even if the changes appear to be merely ‘cosmetic’. This contracting cost theory is tested by examining of both event-related and cross-sectional abnormal performance of the equity of a sample of firms when the Accounting Princples Board changes accounting princples for business combinations. The theory provides, at best, in incomplete explanation of the observed abnormal performance.     

The impact of socio-economic accounting statements on the investment decision: An empirical study

In this experiment, alternative disclosures of socio-economic accounting information, namely the abatement costs of pollution, were investigated as accounting techniques which may influence the investment decision of potential users. The theoretical rationale stemming from the linguistic relativity paradigm in accounting was that in general the accounting techniques may tend to facilitate or render more difficult various (nonlinguistic) managerial behaviors on the part of the users, and that in this particular context the investment decision effects from different professional groups using alternative socio-economic information will be different. The findings attest to the general relevance of socio-economic accounting information for the bankers under any investment strategy, and for the accountants only under an investment strategy focusing on capital gains.     

Giving credit where credit is due: Summary analysis of the most prolific authors in 15 high-impact accounting journals

The most prolific contributing authors to a set of high-impact accounting journals are summarized. These contributors are an unusually productive and successful group, accounting for a disproportionate share of the appearances in this significant set of the academic literature. Additionally, findings are presented demonstrating that the second tier of accounting journals tend to be dominated by the same researchers who dominate the top-tier journals, thus suggesting that getting published in the second tier of accounting academic journals may be as difficult a hurdle as publishing in the top tier.     

The impact of voluntary audit and governance characteristics on accounting errors in private companies

This paper examines the extent to which the audit and corporate governance characteristics of UK private companies are associated with defective accounting information. Despite the economic importance of private firms, relatively little is known about their financial reporting and governance characteristics. Using a large sample of UK private companies, we examine the effects of voluntary audit, board gender balance and financial expertise on the likelihood of errors occurring in published annual accounts. Our results indicate that audited accounts are approximately half as likely as unaudited accounts to contain errors. In addition to contributing to recent academic research in this field, our findings are likely to be of interest to policy makers, who are considering exempting more firms from mandatory audit. We also find that gender diversity among board members is positively associated with the accuracy of accounting information, though our primary measure of directors’ financial expertise has no significant effect.     

The impact of accounting rule and economic differences on the firm’s choice of cash and share-puts

While prior literature has sought to explain why firms issue put options on their own stock (Gibson et al., 2006), no one has focused on examining why some firms choose to structure put contracts in a way that provides them the ability to settle future put obligations with their own common equity rather than cash. FAS 150, which changed the reporting requirements, highlights that under the prior rules firms included share-settlement terms in their put contracts to avoid showing their open put position as a balance sheet obligation. However, some evidence suggests that the choice between including cash or share settlement terms may be economically driven by the potential impact that each settlement-type has on firm solvency and equity holdings. Our results support the economic-based motivation for put-type choice by showing that firms elect to include share-settlement terms in their put contracts to provide themselves payment flexibility in the event internally generated cash flows are not sufficient to meet future contractual put obligations. These results support the FASB’s announcement that it is reconsidering homogeneous liability classification of cash and share-settled puts in its re-examination of FAS 150.     

Measuring monetary policy and its impact on the bond market of an emerging economy

In view of multiple instruments used by many central banks in emerging market economies (EMEs), we derive a composite measure of monetary policy for India and assess its impact on the yield curve. Our results show that while monetary policy has the dominant impact among macroeconomic variables on the entire term structure, it is particularly strong at the shorter end and on credit spreads. Shifts in the level of the government yield curve and credit spreads also lead to changes in monetary policy. In terms of robustness, our measure performs better than a narrative-based measure of monetary policy available in the literature.