Share pledging occurs when investors use their shareholding as collateral to obtain personal loans. In China, the practice of share pledging has grown exponentially in recent years, with potentially significant impacts on non-pledging shareholders, especially given high agency conflicts between controlling and minority shareholders. We empirically examine the relationship between share pledges and firm value. Using a sample of pledges by major shareholders of listed Chinese firms from 2003 through 2015, we find a positive association between share pledging and firm value. This relationship is moderated by the presence of state ownership and higher ownership concentration. Overall, we provide empirical evidence on the impacts of share pledging in the Chinese capital markets, with our findings having significant implications for investors, managers, and regulators.

Purpose This paper aims to examine the type of firms that voluntarily adopt the International Integrated Reporting Framework (IIRF) and how markets respond to voluntary IIRF adherence. Design/methodology/approach Analysis of a matched global sample of listed firms that voluntarily adopt the IIRF (IIRF firms) and those that do not (non-IIRF firms). The samples range from 188 to 436 observations as alternative research designs, different matched samples and regression specifications, and several sensitivity analyses were conducted. Findings In markets where integrated reporting (IR) is not mainstream, voluntary IIRF adoption is more likely for firms with established sustainability practices. Such findings suggest that the IIRF is an incremental innovation for sustainability rather than an innovation that radically changes management and reporting practices. In Japan, where IR is mainstream, results show no observable differences between IIRF firms and non-IIRF firms. Consistent with the determinants results, this paper finds no evidence of associations between voluntary IIRF adoption and the information environment, the cost of equity or firm value. However, the additional analysis provides preliminary evidence suggesting capital market effects may differ for IIRF firms with higher sustainability or market performance. Practical implications This study offers useful insights into the current global debate on whether there is value in adopting the IIRF. Originality/value This study adds to the limited body of research on the determinants and consequences of voluntary IIRF adoption, offering insights for regulators, practitioners and proponents of IR. This study is the first to provide quantitative evidence of the influence sustainability practices have on voluntary IIRF adoption. Further, the results add to the current global debate on whether there is value in adopting the IIRF. This paper finds that voluntary IIRF adoption has no clear and distinct influence on disclosure practices and capital markets, suggesting there are no additional benefits from prioritising the promotion or adoption of the IIRF over other disclosure forms. Unless there are advancements supporting the implementation of integrated thinking and information connectivity, the potential for the IIRF to improve information quality may be limited to encouraging more non-financial disclosure and transparency in countries where integrated disclosures are not trending.

From 2011 in Australia, if over 25% of shareholders vote against a non-binding remuneration resolution, firms are awarded a 'strike'. We examine 237 firms that receive a strike relative to matched firms, and find no association with any measure of CEO pay. However, we do find that strike firms have higher bookto-market and leverage ratios, suggesting that the remuneration vote is not used to target excessive pay. We also find that firms respond to a strike by decreasing the discretionary bonus component of CEO pay by 57.10% more than non-strike firms and increasing their remuneration disclosure by 10.95%.This research was partly funded by an AFAANZ grant. For comments on early drafts we thank Michael Bradbury, John Core, Nelson Ma, Zoltan Matolcsy, Reza Monem and participants at the 2013 Quantitative Accounting Research Symposium. All errors and omissions are our own. © 2015 AFAANZ Accounting and Finance 57 (2017) 701-725 © 2015 AFAANZ M. Grosse et al./Accounting and Finance 57 (2017) 701-725 703

Prior literature finds higher audit fees after the adoption of International Financial Reporting Standards (IFRS). We add to this research by documenting that the post-IFRS increase in audit fees is persistent, and not a short-term effect driven by transitional costs. In addition, early adopters have higher audit fees and this difference continues after IFRS adoption. Next, we consider the effect of increased effort required under IFRS on marginal pricing. Our results find lower (higher) marginal pricing post-IFRS for PwC and Deloitte (EY), suggesting that they have a relatively higher (lower) fixed and lower (higher) variable cost structure. © 2015 AFAANZ Accounting and Finance 56 (2016) 165-203 1 Whether results are weaker in countries which had harmonised accounting standards with IFRS pre-adoption is an open question. 2 Alternatively, underlying factors that affect the choice to adopt IFRS early could be associated with higher audit fees. © 2015 AFAANZ S. Higgins et al./Accounting and Finance 56 (2016) 165-203 167 3 New Zealand also introduced the Auditor Regulation Act of 2011 which requires auditors to be registered. However, the main parts of this act predominately take effect outside our sample period. 4 Our regression analysis of IFRS and audit fees controls for year fixed effects. © 2015 AFAANZ © 2015 AFAANZ © 2015 AFAANZ S. Higgins et al./Accounting and Finance 56 (2016) 165-203 173

Purpose – The purpose of this paper is to investigate whether constituents respond to local government accounting data. Since 2006, New Zealand local authorities (councils) have been required to disclose long-term accounting data relating to forecast operating revenue and expenses. Design/methodology/approach – The authors test whether the difference between the actual operating expenditure as reported in the annual report and as forecasted is associated with electoral outcomes. Findings – The authors find that accounting performance and the sign of accounting performance (i.e. expenditure over-runs) are associated with greater councilor re-election. Furthermore, accounting performance is also associated with greater voter turnout. Originality/value – The production and disclosure of council planning data is based on the perceived accountability of the council to its constituents. The authors find that accounting, in an electoral context, has both information content and conveys good/bad news about accounting performance to voters.

In response to criticism directed at the resource sector's corporate governance, this paper examines the corporate governance and underlying firm characteristics of resource development stage entities (DSEs) relative to a size‐matched sample of non‐resource firms. We find that resource DSEs have different governance characteristics in the measures of board independence, chair/CEO duality and CEO cash bonuses. Furthermore, there are differences in the information environment measures of analyst following, debt levels, stock market return and stock turnover. Considering we document substantial differences in underlying firm characteristics, corporate governance differences are likely appropriate to the mining industry and should not be uniformly labelled as ‘bad’. Our results suggest that media rankings based on corporate governance scores may not accurately portray the resource sector. Overall, our results are of interest to Australian investors and regulators and contribute to a broader understanding of contextually contingent corporate governance.

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