Search results for "Finance"
showing 10 items of 4676 documents
The Role and the Current Status of IFRS in the Completion of National Accounting Rules – Evidence from Spain
2017
AbstractThe way Spain adapted the legislation to the Accounting Directives as well as a brief analysis of the Spanish standard setting process is followed by a description of the influence of International Financial Reporting Standards (IFRS) is the Spanish legislation and the different stakeholders’ position on IFRS. We show and explain why the local General Accepted Accounting Principles (GAAP) are clearly inspired by IFRS principles, even for Small- and Medium-Size entities, while at the same time there is no direct application of IFRS and no mention of IFRS as a complementary source of interpretation. We explain the influence of different stakeholders in the standard setting process and…
The Value Relevance of Risk Disclosure: An Analysis of the Banking Sector
2020
The aim of this study is to test whether financial risk disclosures required by IFRS 7 and Pillar 3 are value relevant for investors to support them in their investment decisions. The sample in the...
The influence of corporate governance's decision on corporate social responsibility
2018
The need for an accurate and detailed disclosure, the need to understand the mechanisms of government under which the company is managed and controlled, are the starting point of the choices of the many stakeholders that revolve around the company. A large number of players is interested in corporate governance are among these, not only the major shareholders, but also an increasing number of small investors. CSR is an extension of firms efforts to foster effective corporate governance, ensuring firms sustainability via sound business practices that promote accountability and transparency. rnThe paper aims to explore the impact that various corporate governance mechanisms have on the commit…
The Impact of Board Internationalization on Earnings Management
2016
Prior literature shows that choices regarding board composition are associated with earnings management. We add to this literature by examining the effects of the presence of a foreign board member on earnings management. Using a sample of 3,249 firm-year observations representing 586 non-financial listed Nordic firms during 2001-2008, we find that the presence of a non-Nordic, foreign director is associated with significantly higher levels of earnings management. Moreover, we provide preliminary evidence that differences in accounting knowledge drive this effect. Our results suggest that it may not necessarily be beneficial to appoint a foreign director to the board.
The Value Relevance of Operating Lease Liabilities: Economic Effects of IFRS 16
2018
The new IASB and FASB models for leases aim to improve the quality of financial reporting. To this end, both standard setters impose the recognition of assets and liabilities for operating leases. Meanwhile, preparers have been strongly lobbying against these changes, as in their view the new treatment will lead to negative economic consequences. We undertake a value‐relevance study to examine whether as‐if capitalised operating leases are priced by market users in a relatively unexplored setting. We consider Spanish listed firms, and employ hand‐collected data on operating leases disclosed in the notes to the financial statements to constructively capitalise the assets and liabilities. Our…
Layering of IFRS and Dual Institutionality of Accounting Standards in Belarus
2017
Submitted version of an article published in the journal Accounting in Europe. There is an ongoing debate about the applicability and efficacy of International Financial Reporting Standards (IFRS) adoption in countries with diverse institutional infrastructures. We examine financial reporting in Belarus and factors that are shaping its development. In Belarus, IFRS has been adopted through layering where it is an additional requirement to the existing reporting specified by the national accounting regulations. We explore how global standards were transposed and function in a highly specific institutional context. Based on an examination of reporting in the banking sector, we conclude that d…
Struggle over joint audit: on behalf of public interest?
2012
International audience; European Commission (EC 2011) has recently suggested joint audit - broadly defined as an audit where two independent auditors are jointly liable for the audit report - as a way a way to increase audit quality after the financial crisis and to mitigate audit market concentration, by enlarging the audit offer. Big 4 audit firms have fought this proposal by arguing its unbearable cost while 2nd Tier audit firms have supported it by arguing its added quality. This conflicting position leads us to question their claim of public interest concern. As group-interest economic regulation theories predict that the absence of any effect of a new regulation (here: joint audit) is…
Banks’ business strategies on the edge of distress
2019
AbstractThe paper investigates the importance of banks’ business classification in shaping the risk profile of financial institutions on a global scale. We employ a rare-event logit model based on a state-of-the-art list of major global distress events from the global financial crisis. When clustering banks by their business strategies using a community detection approach, we show that (i) capital enhanced resilience only for traditional banks that were on average less capitalized than other banks; (ii) boosting ROE, usually associated with riskier exposures, improved resilience for stable funded and asset diversified banks; (iii) conversely, higher levels of ROA exacerbated banks’ vulnerab…
Informal, formal institutions and credit: complements or substitutes?
2019
AbstractThis paper analyses the relationship between informal institutions measured by social trust and the provision of private credit. Research on the trust–finance relationship abounds, although most of it is confined to the micro-level, with far fewer contributions from a wide, cross-country perspective. Considering a sample of 119 economies in the period 1993–2015, results suggest that social trust is an important determinant of private credit, and that its effects are transmitted indirectly via some particular aspects of the quality of economic-judicial institutions. In addition, and contrary to previous findings in related areas, substitutive effects for informal and formal instituti…
A three-stage competition game in an air transport network under asymmetric valuation of flight frequencies
2020
Abstract This paper analyzes the effects of changes in aeronautical charges as brought by several airport management regimes on the air transport industry. Airlines compete on both price and non-prices variables, where connecting passengers have asymmetric valuations of flight frequencies in different legs. Changes in landing fees trigger airlines reactions on flight frequencies and airfares, whose sign depends on the weight attached to flight frequencies. Thus, an increase in the spoke landing fee leads to more international flights under low valuations of frequencies at spoke airports. Simulation exercises show that profit-maximizing aeronautical charges only at the spoke airport are pref…