Ownership concentration,modified audit opinion,and auditor switch: New evidence and method

This study investigates: 1) how does the ownership structure of listed firms influence the relation between their earnings management behavior and auditor opinion; 2) how does the ownership structure influence the relation between the auditor opinion and auditor switch. We find that the level of listed firms’ earnings management is positively associated with the propensity of being issued modified audit opinions (MAOs) by auditors when their ownership structure is highly concentrated. However, the issuance of MAOs is not associated with the auditor switch under such condition. On the contrary, a high level of earnings management is not associated with the propensity of being issued MAOs when firms’ ownership structure is less concentrated. Further, the issuance of MAOs may increase the likelihood of auditor switch. The empirical findings suggest that auditors may cater for the preferences of the real controller of listed firms when issuing audit opinions. Moreover, the “auditor opinion shopping” behavior by listed firms is also affected by listed firms’ ownership structure.     

内部控制、盈余管理与审计定价——来自2014年中国上市公司的经验证据

审计定价的高低与审计成本及审计风险有关。企业内部控制水平和盈余管理程度的不同会影响审计过程中人力、物力投入的多少以及审计风险的大小,从而影响审计定价。通过研究2014年深沪两市2300家上市公司的样本数据,考察内部控制、盈余管理与审计定价之间的关系发现：内部控制程度与审计定价之间的相关性不显著;盈余管理程度对审计定价具有显著的正向影响,在不同的内部控制水平下,盈余管理程度对审计定价的正向影响具有不同的显著性,内部控制水平越低的企业,盈余管理程度与审计定价之间的正相关关系的显著性越强。     

EUROPEAN ACCOUNTING REVIEW

This study contributes to the accounting literature by providing empirical evidence from China that adopting IFRS does not necessarily lead to IFRS-type accounting practices. We examine the impact of regulatory enforcement, in particular, an important Chinese government compulsory compliance policy implemented in 2001, and audit upon the convergence of Chinese accounting practices. Using a sample of 103 Chinese B-share companies between 1999 and 2004, we reveal that the decline in earnings difference between firms' financial statements under Chinese GAAP and IFRS is the result of the implementation of the 2001 policy and the audit committee which effectively control the firm's application of standards rather than the differences between the standards. The effect of audit committee leads us further to argue that the convergence of accounting practices may be affected by not only the lack of insufficient understanding of IFRS by local accounting professionals, but also the management opportunistic behaviour during the application of different standards. It implies that corporate governance may affect the convergence of accounting practice. However, we do not find evidence for international audit firms outperforming their Chinese local CPAs with regard to IFRS compliance. Therefore, the Chinese government should be cautious in promoting the participation of international audit firms in China for achieving IFRS compliance.     

Sustainability reporting quality and post‐audit financial reporting quality: Empirical evidence from the UK

This study examines whether firms that appear to exhibit high sustainability reporting quality are less likely to engage in earnings management activities, thereby delivering financial information that is more transparent and reliable than that delivered by firms that do not produce high‐quality sustainability reports. I also investigate whether the association between sustainability reporting quality and post‐audit financial reporting quality is conditional on audit effort. Analysis of data drawn from FTSE 350 companies covering 2007 to 2018 indicates that firms that produce high‐quality sustainability reports are significantly and negatively associated with earnings management metrics. More importantly, this association is moderated by audit effort, measured by audit fees, suggesting that sustainability reporting quality reflects factors considered by auditors in their audit risk assessment practices. These results remain robust after several sensitivity analyses. I conclude that firms that devote more resources to producing high‐quality sustainability reports are likely to demonstrate an overall commitment to quality that alleviates auditors' concerns about the opportunistic use of sustainability reporting and reduces business risk, thereby reducing the effort auditors expend to verify financial reports.     

Earnings forecasts in enterprise information systems environment

With the globalisation and integration of world financial markets, the application of enterprise information systems has become more and more popular in the financial service sector. This paper examines the analyst's decision regarding allocation of effort to the precision and timeliness of earnings forecasts with financial decision support systems. Once an analyst decides to follow a firm, the analyst must choose the level of effort to devote to generating outputs, such as earnings forecasts. This paper provides insights into this by examining three issues concerning the forecasts of the individual analyst. First, forecast accuracy and frequency are modelled simultaneously. Then, whether these two effort allocation choices are complements or substitutes is tested. Finally, how competition affects these two characteristics is examined. The accuracy and frequency are examined with simultaneous equations. Results from this analysis suggest that analysts allocate effort among these two forecast criteria in a complementary way. Finally, empirical results reveal a positive association between competition and forecast frequency by the individual analyst. However, a significant association between competition and the individual analyst's forecast accuracy is not found.     

审计委员会、盈余管理与信息透明度

通过分析审计委员会的设立对盈余管理、信息披露透明度的影响等方面的研究发现,设立审计委员会的公司进行扭亏盈余管理的行为显著要低,信息披露的透明度显著要高。这一研究结果表明,审计委员会的设立在一定程度上提高了公司治理效果,改善了财务报告质量。但审计委员会并没有对配股的盈余管理行为产生作用,这说明审计委员会对财务报告的监督作用较为有限。监管部门还需要设法采取相关措施,进一步提高审计委员会的独立性,更好地发挥审计委员会对财务报告披露质量的监督作用,使之成为维护广大投资人权益的有效治理机制。     

Analyst Following,Institutional Investors and Pricing of Future Earnings: Evidence from Korea

This paper examines the role of sophisticated investors in pricing future earnings in Korea. Using the future earnings response coefficient (FERC) model, we test the effect of analyst following and institutional ownership on the informativeness of stock returns for future earnings. We find that the informativeness of stock returns for future earnings, measured as the FERC, increases with the analyst following and institutional ownership. We also investigate how the recently introduced Regulation Fair Disclosure in Korea affects the informativeness of stock returns for future earnings and its relation with analyst following and institutional ownership. The results show that the regulation decreases the FERC in general and its relation with analyst following, suggesting that analysts' superior ability is impaired after the regulation.     

Organic and Acquisitive Growth: Re‐examining,Testing and Extending Penrose's Growth Theory

Edith Penrose's theory of firm growth postulates that a firm's current growth rate will be influenced by the adjustment costs of, and changes to a firm's productive opportunity set arising from, previous growth. Although she explicitly considered the effect of previous organic growth on current organic growth, she was largely silent about the effect of previous acquisitive growth. In this paper we extend Penrose's work to examine how previous rates of organic and acquisitive growth influence current organic growth. Employing a panel of Swedish firms over a 10‐year period, our results suggest the following. First, previous organic growth acts as a constraint on current organic growth. Second, previous acquisitive growth has a positive effect on current organic growth. We conclude that organic growth and acquisitive growth constitute two distinct strategic options facing the firm, which have a differential impact on the future organic growth of the firm.     

盈余管理与审计意见的实证分析

盈余管理一直以来是会计实证研究的一个热点问题,本文主要从上市公司的盈余管理对审计意见的影响进行分析,研究发现,公司的盈余管理行为并未对审计意见的类型产生重要影响。但对于财务状况较差的上市公司而言,其盈余管理程度越高,其被出具非标准无保留审计意见的可能性越大。     

Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance

Building on knowledge management and innovation capability theories, this paper aims to reveal the mechanisms of collaborative innovation processes by investigating the complex relationships among critical factors influencing firm's innovation performance in supply chain networks. Using hierarchical Multiple Regression (MR) and Moderated Multiple Regression (MMR) methods, results from a survey of 236 firms in China indicated that there are significant positive relationships between collaborative innovation activities, knowledge sharing, collaborative innovation capability, and firm's innovation performance. Moreover, it is expected that knowledge sharing plays a partial mediating role in the relationships between collaborative innovation activities and firm's innovation performance. Collaborative innovation capability exhibited a moderating effect on collaborative innovation activities - innovation performance relationship. These results contribute to collaborative innovation process management by offering a nuanced conceptualization of the collaborative innovation - performance relationship in supply chain networks.     

基于盈余管理视角的上市公司审计质量研究——来自沪市制造业审计意见的实证分析

随着上市公司造假案件的频频曝光,资本市场遭受前所未有的冲击。外部投资者与公司“内部人”之间的信息不对称,使会计盈余管理行为在上市公司中较为普遍存在。盈余管理增加了上市公司的内在风险,注册会计师出具的审计意见应当予以恰当的披露和报告。本文选取沪市制造行业2004年和2005年的财务数据,通过截面修正的Jones模型和多元回归方法,对审计意见识别盈余管理水平的能力进行了实证研究,研究结果均表明,审计意见具有一定的信息含量,能在一定程度上揭示出上市公司的盈余管理现象。     

未预期盈余、审计意见与年报披露及时性——来自上海证券交易所上市公司年报的证据

以2001-2004年度所有沪市上市公司为样本,实证检验了未预期盈余、审计报告类型、公司业绩等多个因素对上市公司年报披露绝对及时性和相对及时性的影响。研究结果发现,未预期盈余为正的年报、被出具标准审计意见的年报以及业绩好的年报披露较早;反之亦然;当年会计师事务所变更的公司和亏损公司年报披露较晚。在变更年报预约披露日期的公司中,未预期盈余为正的公司、被出具标准审计意见的公司以及业绩好的公司通常提前披露年报;反之亦然。     

Voluntary Adopters of Integrated Reporting – Evidence on Forecast Accuracy and Firm Value

This study investigates how integrated reporting (IR) creates value for investors. It examines how providers of financial capital benefit from an improved firm information environment provided by IR. Specifically, this study investigates the effect of voluntary IR disclosure on analyst earnings forecast accuracy as well as on firm value. To do so, we use an international sample of 167 listed companies that voluntarily publish an integrated report. Our analysis shows no significant effect of a voluntary IR publication on analyst earnings forecast accuracy and no significant effect on firm value. We thus do not find evidence for the fulfillment of IR's promises regarding improved information environment and value creation of voluntary adopters. We conclude that such companies might already have a relatively high level of transparency leading to an absent additional effect of IR disclosure. Positive effects of IR appear to be more relevant in environments where IR is mandatory.     

The contractual and value relevance of reported earnings in a dividend-focused environment

This study investigates the relevance of reported earnings in the context of an institutional environment, i.e., Switzerland, in which investors focus on dividends. In conjunction with a dividend focus, the financial reporting environment faced by Swiss firms provides their managers with more accounting discretion than managers of Anglo-Saxon firms typically have. From a contractual perspective, dividendbased earnings management is expected since Swiss corporate law explicitly states that dividends, which must be voted on by stockholders, are to be based upon a firm's reported earnings. From a value perspective, thin trading conditions and a long-term investment horizon are expected to increase the importance of dividend payments and to influence the informativeness of reported earnings. Results indicate that Swiss managers do engage in dividend-based earnings management, that earnings quality signals are used by managers to voluntarily constrain their accounting choices and that the value relevance of earnings is conditional upon dividend payments.     

盈余管理、审计费用与所得税会计政策选择——基于沪深A股上市公司年报数据的实证分析

本文以2003～2005年沪深A股上市公司年报数据为依据,分析了所得税会计核算方法选择与盈余管理程度、审计费用水平之间的关系。研究发现:在我国现行的应税收益-会计收益的差异水平下,应付税款法与纳税影响会计法核算的总体绩效评价指标、盈利预测误差程度均没有显著差异;而采用纳税影响会计法的公司,其盈余管理程度、审计费用水平(“簿记成本“的替代变量)均显著高于采用应付税款法的公司,说明盈余管理与薄记成本是影响所得税会计政策选择的重要因素。     

内部控制审计强制规则对会计信息价值相关性的影响研究

我国内部控制审计经历了由自愿规则至强制规则的转变,以2007—2021年内部控制审计上市公司为样本,研究不同规则下内部控制审计与会计信息价值相关性之间的关系。研究发现：相对于自愿规则,强制规则减弱了会计信息价值相关性;强制规则在审计意见类型和审计模式对会计信息价值相关性的影响程度上有所不同。盈余质量、机构投资者和分析师关注均可以缓解强制规则对会计信息价值相关性的负向影响。研究结论表明在当前强制规则下,上市公司在加强内部控制建设以获取无保留审计意见的同时,还应关注独立审计模式带来的增量价值;提高盈余质量,充分发挥机构投资者和分析师的作用,也有助于缓解信息不对称,提高会计信息价值相关性。     

Power of sustainable development: Does environmental management system certification affect a firm's access to finance?

Although prior research generated inconclusive findings between a firm's environmental management system and firm financial performance, attention to resolve this inconsistency by examining the internal channels is limited. Thus, this study focuses on a firm's access to finance and investigates whether a firm's environmental management system certification (EMS) leads to better access to finance. Based on the organizational legitimacy perspective, we hypothesize that this certification will benefit a firm with stakeholder approval and support and consequently alleviate its financial capital constraints. We further posit that the proposed relationship will be moderated by three types of legitimacy environments pertaining to how stakeholders and investors make the judgment on the environmental management system certification. We document that the proposed relationship, that is, the positive relationship between environmental management system certification and access to finance, will be stronger when the government attaches larger importance to environmental protection (regulative legitimacy), better environmental record (moral legitimacy), and better financial position (pragmatic legitimacy). Empirical analyses provide strong corroborating evidence for our predictions. These findings have important theoretical and managerial implications that are well discussed in this study.     

国家审计监督抑制国企盈余管理行为的演化博弈分析

基于目前国有企业的盈余管理行为较为普遍的现状,在我国以审计全覆盖为战略目标的大环境下,综合运用行为经济学及演化博弈论的方法对国家审计监督抑制国有企业盈余管理行为进行研究。首先运用有限理性理论分析国有企业盈余管理行为动机,进而运用演化博弈论构建国家审计部门与国有企业之间的博弈模型,并以央企的相关数据为基础进行数值仿真分析,得出影响国家审计部门及国有企业双方策略选择的有效因素,最后基于演化博弈仿真的结果及国有企业盈余管理的行为动机提出国家审计监督策略的优化建议。     

Competitive sustainability and stakeholder engagement: Exploring awareness,motivation, and capability

In adding to competitive dynamics and sustainability literature, this study examines the role of a supplier and consumer on a focal firm's sustainability competitiveness through the awareness, motivation, and capability (AMC) perspective and stakeholder engagement research. Regression analyses are performed utilizing secondary sustainability and financial data to test proposed environmental and social competitiveness hypotheses. A constraint factor model is also tested. This study finds that a focal firm's motivation is positively associated with its own sustainability competitiveness. The study also finds that awareness and capability are negatively associated with environmental and social competitiveness. Finally, whereas suppliers' AMC have no significant impact, customer awareness and capability do. The findings reflect both conformity and divergence from the AMC model when applying it to a supply chain context as well as enhance the managerial understanding of how a supply and customer base can impact their own sustainability competitiveness.     

Analysts' Forecasts in Asian-Pacific Markets: The Relationship among Macroeconomic Factors, Accounting Systems, Bias and Accuracy

In this study, we describe determinants of accuracy/bias of analysts' forecasts in 13 economies of the Asian‐Pacific region. Examination of the accuracy of analysts' earnings forecasts allows us to judge how accounting systems and macroeconomic distinctions in this region affect earnings predictability. As many investors rely on analysts' earnings forecasts instead of producing their own, the growth of international investment means forecasts in non‐US markets will become increasingly important to investors worldwide. Using a sample of firms with data available on Global Vantage and I/B/E/S International, we find that the analysts on average have a pessimistic bias in Asian‐Pacific markets. We examine whether macroeconomic factors explain part of the difference in the size of analyst forecast errors, using the global competitiveness rankings of the World Economic Forum (WEF). We expect that those nations which are more open to foreign trade and investment and are ranked more highly by the WEF in its Global Competitiveness Index will also have more accurate analyst forecasts, as increased global competitiveness demands greater integration into the world economy, and such integration should lead to more transparent financial statements and more accurate earnings forecasts. Our findings are consistent with this prediction. We also find that countries with low book‐tax conformity have more accurate earnings forecasts.