ABSTRACT We examine whether the joint provision of corporate social responsibility (CSR) assurance services and financial audit by same firm influences auditors' assessment going‐concern risk. predict that CSR creates CSR‐related knowledge spillovers from team to engagement team, which helps in auditor's Using more than 28,000 firm‐year observations 55 countries, we document that, relative firms provide only audit, both for client (i) issue frequent opinions have lower Type II errors, (ii)...

Theory suggests that increased levels of corporate disclosure lead to a decrease in cost equity via the reduction estimation risk. We examine compliance with International Financial Reporting Standard 3 Business Combinations and Accounting 36 Impairments Assets mandated goodwill-related their association firms' implied capital (ICC). Using sample European firms for period 2008–2011, we find median level about 83% significant differences across time. Non-compliance relates mostly proprietary...

We examine the relation between disaster risk and banks' loan loss provisions (LLP). propose a measure based on natural disasters declared as major by Federal Emergency Management Agency over 15-year span. theoretically support empirically validate our using three different approaches, including UN Sendai Framework for reduction, which relates to hazard exposure, vulnerability capacity, characteristics. Using more than 445,000 bank-quarter observations, we document that banks located in U.S....

Abstract Our study investigates whether stakeholder engagement is associated with a firm's valuation and the value relevance of accounting earnings. Since prior literature posits that economic consequences such practices may depend on specific environment in which they are adopted, we also explore these associations affected by cultural traits country firm operates. Based worldwide sample firms for period 2002 to 2014, document positively influences market‐to‐book equity, without enhancing...

Research and development (R&D) is increasingly significant in the global economy its accounting treatment has always been, remains, a contentious area. The standard governing under International Financial Reporting Standards IAS 38 Intangible Assets. This was issued 1998 remains force today. study contrasts thinking of setters historical with evidence through interviews contemporary buy-side sell-side equity investors. Specifically, we examine decision-usefulness R&D information to them,...

We survey CFOs of Italian listed companies and examine their views on the complexities involved in implementing IAS 36 requirements perceived usefulness national guidelines aiming at assisting preparers this respect. find that is as an atypical standard among IFRS, it demands subjective interpretation, its can be made adaptable to managerial needs do not limit creative accounting. Further, respondents see a strong link between disclosure market variables, except for stock returns. Moreover,...

Theory suggests that increased levels of corporate disclosure lead to a decrease in cost equity via the reduction estimation risk. We examine compliance with IFRS 3 and IAS 36 mandated goodwill related their association firms’ implied capital (ICC). Using sample European firms for period 2008 2011, we find median level about 83% significant differences across time. Non-compliance relates mostly proprietary information reveals managers’ judgment expectations. Overall, statistically negative...

Starting from 2006, UK listed companies are required to analyse their performance by using Key Performance Indicators (KPIs) in specific sections of annual reports and the Accounting Standard Board (ASB) provides with guidelines for best practice regarding KPI disclosure. Motivated possible effects disclosure quality, we examine potential economic consequences a sample firms period 2006 2010. Our consists 448 firm-year observations. We first develop measure quality based on ASB’s guidelines....

The measurement of intellectual capital (IC) constitutes a major challenge in managing intangible resources. Among the various models proposed prior literature, Value Added Intellectual Coefficient (VAIC) is used by many studies to measure IC. Assuming perfectly competitive market, this study decomposes VAIC and demonstrates that it not directly related Conversely, main components are labor share, physical interest rate. These results extended non-perfectly setting through multivariate...

Il presente lavoro si focalizza sulla qualità dell'informativa obbligatoria sul tasso di attualizzazione nella stima a valore d'uso dell'avviamento. L'analisi compara un campione società italiane con uno del Nord Europa, al fine verificare se la informativa risulti migliore in paesi che pongono maggiore attenzione capitale immateriale. Inoltre, è inteso l'informativa aumenti presenza svalutazione dell'avviamento, evento più frequente nei periodi crisi economica. I risultati ottenuti tramite...

This paper studies the impact of gender and religiosity on attitudes towards business ethics a sample 437 Italian students. Data were collected through survey analysis in March-April 2013. We grouped our 18 items into four key areas calculate an index that estimates students’ overall attitude for each area questionnaire. Results whole show respondents consider to be crucial all areas. Females seem have stronger sense than males. Students who are atheists scored lower those faith three out...

This study explores the effectiveness and consequences of hedge accounting rules under ASC 815 by investigating relationship between derivative designation future investments. Finance theory argues that hedging helps firms to overcome underinvestment problems, as it reduces probability liquidity shortfalls. We argue this association holds only for derivatives designated accounting, which requires fulfilment strict criteria. find assets are positively associated with investments implying...

This study examines the effect of R&D disclosure on informativeness share prices about future earnings. Considering its importance to companies, and mindful uncertain nature limited information provided in financial statements, is an important source for investors assess prospect firm. Using a sample 6,487 firm-year observations reporting under IFRS from 15 countries over 10-year period, we show that conveys earnings, which incorporated current returns. Thus, allows better anticipate We find...