We examine whether cross-country differences in earnings-to-price multiples have changed between 1987–1992 and 1994–1999. Our results suggest that earnings multiples became more similar over this time period for the jurisdictions we analyze, although systematic differences remain. Economic determinants of earnings multiples (e.g., growth rates, interest rates, and returns) do not exhibit similar convergence and do not appear to explain the changes. The convergence is robust to controls for cash flow multiples and is apparent in the valuation of accruals. Accrual/cash flow correlations have also become more similar and generally less negative, suggesting a reduction in earnings smoothing. Overall, our evidence suggests convergence in accounting practice.

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This paper aims to examine whether restatement firms with certain restatement characteristics are more likely to have chief executive officer (CEO) turnover within a year of the restatement announcement, and whether these same firms are later subject to regulatory action by the US Securities and Exchange Commission. Design/methodology/approach -The empirical analysis uses a logistic regression to test a sample of firms that restated earnings during the years 1996-1999. Findings -The results show significant associations between measures of the severity of earnings restatement and the probability of CEO turnover. Also, restatement firms with CEO turnover are more likely to be issued an SEC Accounting and Auditing Enforcement Release in the years after the restatement, indicating that financial fraud has occurred. Research limitations/implications -The results may not generalize to a more recent time period because the sample of firms is from the 1996-1999 time period. Originality/value -This study provides a link between CEO turnover and restatement characteristics within a sample of restatement firms.

PurposeThe purpose of this paper is to examine the contention that a strengthening of corporate governance mechanisms would result in the improved relevance and reliability of financial statements.Design/methodology/approachUsing pooled ordinary least squares regression, the paper analyse the quality of reported earnings for a sample of firms over the 1998‐2002 time period.FindingsThe findings show negative and statistically significant associations between reported earnings quality and the proportion of CEO incentive pay and firm's growth opportunities. It is also found that earnings quality is positively and significantly related to the existence of an orderly CEO transition process. However, board independence does not seem to be associated with earnings quality.Research limitations/implicationsSince the sample of firms is from the 1998 to 2002 period, consistent with the paper's motivation, the results may not generalize to the more recent time period.Practical implicationsThe results provide support for the argument that the current structure of executive pay does adversely impact the quality of reported earnings and hence provides a rationale for closer scrutiny of executive pay by regulatory bodies. Additionally, the findings suggest that the emphasis on board independence as an effective monitoring device may be misplaced.Originality/valueUnlike prior studies, the paper's hypotheses are derived from an explicit agency theoretic optimization model of managerial decision making. The paper uses the Ball and Shivakumar model for estimating abnormal accruals unlike previous analyses that relied more heavily on the Jones model. The paper also adds to past studies of the relationship between corporate governance and earnings quality and the role of executive compensation.

An increasing number of higher education institutions have embraced Cloud Computing Services (CCS) to better respond to the issues arising from the COVID-19 pandemic. Cloud computing has helped to ease the process and lower the cost of offering online education and hybrid learning. However, some universities in Thailand face cloud computing adoption challenges because students lack awareness of the benefits and risks of CCS. Therefore, it is vital to identify the critical factors affecting the initial and continuance adoption of CCS by students in less developed countries. This study adopts a trade-off lens to assess the impact of the perceived usefulness and perceived risks regarding students’ attitudes toward the initial and continuing adoption of CCS. Using a survey of CCS from a large public university in Thailand, we found that performance expectation and effort expectation positively affect perceived usefulness, and that authentication risks positively affect perceived risks. We also found that perceived usefulness rather than perceived risks is a deciding factor in adopting CCS. Higher education institutions in Thailand can accelerate the adoption of CCS by improving students’ perceived performance and reducing the perceived risks.