The Accountant’s Perception of the Usefulness of Financial Information in Decision Making – A Study in Portugal

Cepêda, Catarina; Monteiro, Albertina Paula

doi:10.7819/rbgn.v22i2.4050

Cited by 7 publications

(10 citation statements)

References 23 publications

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“…Lastly, and answering the last research question in this study, the individual characteristics of the accountants influence their perception of the need to mitigate or reduce the AEMP with the exception of the age and gender of the certified accountant. Previous studies, although in different contexts, also conclude that professional experience and educational qualifications influence certified accountants' perceptions, namely about the usefulness of financial information in decision making (Cepêda and Monteiro, 2020) and the legality of AEMP (Figueira et al, 2021). These scholars find no empirical evidence of the impact of the age and gender variables on accountants' perceptions about the topics investigated.…”

Section: Data Analysis and Discussionmentioning

confidence: 99%

“…Thus, in the data analysis 159 valid answers were considered. As such, it is a convenience sample and not a probabilistic sample, but considered valid in previous studies (Cepêda and Monteiro, 2020;Montenegro and Rodrigues, 2020;Tassadaq and Malik, 2015).…”

Section: Methodsmentioning

confidence: 99%

“…Nogueira and Fari (2007) found that personality traits (related to the way of being, thinking, acting, among others) influence the choices/perceptions of professionals in any area of activity. Cepêda and Monteiro (2020) concluded that a certified accountant´s characteristics influence FI usefulness perceptions. In the study of Montenegro and Rodrigues (2020), applied in Portugal, the gender, age, education (and accounting ethics education), and experience influence of accountants' judgments.…”

Section: Rq6 What Corporate Governance Mechanisms Can Mitigate Aemp?mentioning

confidence: 99%

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Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Monteiro¹,

Accounting²

2021

Int. j. adv. appl. sci.

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Accounting conservatism and Accounting-based Earnings Management Practices (AEMP) introduce bias in financial information (FI), thereby influencing stakeholder behavior in the decision-making process. This study aims to analyze, from the certified accountants’ perspective, the AEMP in Portugal. Specifically, it analyses (1) the development of the AEMP and its impact on FI reporting, (2) the main hampered on its implementation, and (3) the need for the instruments and corporate governance mechanisms to mitigate the AEMP. Besides this research analyses (4) the relationship between the certified accountant’s characteristics (gender, age, professional experience, educational qualifications, and training area. To achieve the proposed objectives, we have used a quantitative methodological approach with a survey questionnaire, conducting an empirical study based on a sample of certified accountants. Based on a sample of 159 certified accountants, the results found that the majority of respondents indicate that Portuguese companies develop AEMP and that these practices have a negative and significant impact on the quality of financial statements (FS). Moreover, most certified accountants point out that is important to adopt measures that will prevent the abuse of AEMP and the main instruments for this are the establishments of more precise and concrete accounting standards and the application of the sanctions. The results also indicate that the audit committee and efficient internal control are corporate governance mechanisms AEMP able of mitigating the effects of the AEMP. Finally, the individual characteristics of certified accountants, such as professional experience, educational qualifications, and training area, significantly influence their perception of the need to mitigate the AEMP. This study presents relevant contributions to theory and practice. First, it develops the literature that evaluates AEMP, particularly in Portugal, where studies are scarce. Second, this study is original because it considers the relationship characteristics of accounting and AEMP professionals. Third, it allows entities that operate in accounting standardization and for accountants and FI users to have a more in-depth knowledge of the AEMP’s instruments and mechanisms.

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Section: Data Analysis and Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Rq6 What Corporate Governance Mechanisms Can Mitigate Aemp?mentioning

confidence: 99%

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Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Monteiro¹,

Accounting²

2021

Int. j. adv. appl. sci.

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“…Internal control is a valuable mechanism for all companies, without which the companies' goals cannot be achieved effectively and efficiently [55]. Internal control is an activity that involves financial and management accounting, strategic projects, operational and personnel management, as well as total quality management [33].…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…During the period mentioned, 389 complete observations were obtained. Given the high number of Portuguese companies, a non-probabilistic sample was chosen, which is practical in scientific studies covering a very large population [55,56].…”

Section: Figure 1 Research Modelmentioning

confidence: 99%

Internal Control System Quality and Decision-Making Success: The Role of the Financial Information Quality

Monteiro¹,

Vale²,

Cepêda³

et al. 2021

ujaf

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This study aims to develop and evaluate a Decision-Making Success contingency model to assess its dependency on Internal Control System Quality and Financial Information Quality. The authors developed a study based on a sample of 381 Portuguese managers. The structural equations model was used in the analysis of causal relationships between different constructs. Results show that Internal Control System Quality contributes directly to Decision-Making Success. Moreover, Internal Control System Quality and Financial Information Quality are determining factors for Decision-Making Success since Internal Control System Quality has a significant direct impact on Financial Information Quality (with a 64% coefficient of determination) and indirect on Decision-Making Success. The model justifies 67% of the variance of the dependent variable. This research covers a literature gap, since it identifies innovatively, two independent variables that are determinant for Decision-Making Success from the Portuguese companies' manager perspective. This study is relevant to literature development, as it develops and evaluates an original model, and to managers, in the sense that it identifies factors that contribute to Portuguese companies' success.

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Environmental sustainability disclosure and accounting conservatism

Pereira¹,

Accounting²

2021

Int. j. adv. appl. sci.

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In this article, we analyzed whether the level of accounting conservatism of a firm is affected by its environmental sustainability information disclosure. For that purpose, we developed two Environmental Disclosure Indices (EDI), one obtained from the mandatory reporting (annual report) and the other from the voluntary reporting (sustainability report), and compared the effects on conditional conservatism. Content analysis was used to develop two indices to evaluate the level of environmental disclosures. Moreover, the technique of multiple linear regression, using panel data, was applied to provide original empirical evidence for Portuguese companies listed on the stock exchange. We found evidence that higher environmental sustainability information disclosure enhances the conservative accounting practice, which is consistent with the argument that a higher level of Corporate Social Responsibility tends to increase financial statements transparency. In addition, we found that environmental information disclosed in specific and voluntary reporting has a superior impact on the level of conditional conservatism. These results showed that managers tend to engage in earnings management activities by being more accounting conservative in order to meet shareholders' expectations and disclose higher levels of environmental information. Therefore, this article brings some insights to the debate about the usefulness of accounting conservatism and the contribution of sustainability goals to monitor and guide managers’ activities.

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The Accountant’s Perception of the Usefulness of Financial Information in Decision Making – A Study in Portugal

Cited by 7 publications

References 23 publications

Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Internal Control System Quality and Decision-Making Success: The Role of the Financial Information Quality

Environmental sustainability disclosure and accounting conservatism

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