Corporate Culture and Financial Reporting Quality

Bhandari, Avishek; Mammadov, Babak; Thevenot, Maya; Vakilzadeh, Hamid

doi:10.2308/horizons-19-003

Cited by 21 publications

(19 citation statements)

References 70 publications

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“…Our work provides significant additions to the works of literature on financial report quality and Big Data. Historically, research into the quality of financial reports has tended to concentrate on macro-level issues such as company culture (Bhandari et al, 2022), audit quality (Gaynor et al, 2016), system/administration characteristics and regulatory influence JFRA 21,1 (Nirwana and Haliah, 2018). We focused on the qualitative aspects of meaningful financial information and how these traits interact with Big Data as part of our research.…”

Section: Introductionmentioning

confidence: 99%

Big Data analytics and financial reporting quality: qualitative evidence from Canada

Saleh

Marei

Ayoush

et al. 2022

JFRA

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Purpose Big Data analytics (BDA) and its implications for the accounting profession continue to be a key issue that requires more research and evaluation. As a result, the purpose of this study is to evaluate the impact of BDA on financial reporting quality, as well as to assess the accounting challenges associated with Big Data. It provides qualitative evidence from Canada. Design/methodology/approach This study used a qualitative approach to ascertain the thoughts and perceptions of auditors, financial analysts and accountants at Canadian audit and accounting firms in BDA and its impact on financial reporting quality, using semi-structured interviews. To obtain their consent to participate in the interview, 127 auditors, financial analysts and accountants from Canadian audit and accounting firms were initially approached. The final number of respondents was 41, representing a response rate of 32%. Findings The authors’ findings underscored the relevance of Big Data and BDA in affecting financial report quality and revealed that BDA had a significant effect on improving financial reporting quality. Big Data improves accounting reporting and expert judgment by providing professional. In summary, participants agreed that when analytical methods in Big Data are implemented effectively, businesses may possibly achieve a variety of benefits, including customized goods, simplified processes, improved risk assessment process and, finally, increased risk management. Practical implications The authors’ findings indicate that BDA may help predict investment returns and risks, estimate future investment opportunities, forecast revenues, detect fraud and susceptibility early and identify economic growth opportunities. As a result, auditors, financial analysts, accountants, investors and other strategic decision-makers should be aware of these findings to make informed choices. Originality/value Big Data has become the norm in recent years; accountants and other decision-makers have struggled to analyze massive amounts of data. This limits their capacity to profit from such data even more. Therefore, this study is motivated by the lack of research on Big Data’s influence on financial report quality.

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Section: Introductionmentioning

confidence: 99%

Big Data analytics and financial reporting quality: qualitative evidence from Canada

Saleh

Marei

Ayoush

et al. 2022

JFRA

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“…For example, content analysis of annual reports of listed companies is conducted to gauge the dimensions of organizational culture [49][50][51]. Comparable to corporate annual reports, 10-K filings of listed firms are used to measure corporate culture [52][53][54][55]. Nevertheless, it is possible that annual reports of listed companies may exhibit significant similarity among different enterprises as a result of the desire to meet investors' expectations [49].…”

Section: Content Analysismentioning

confidence: 99%

“…In this study, however, capitalizing on MAXQDA 18 software embedded with the advanced computer-assisted algorithms for tokenization, sentence segmentation and word frequency techniques, we make an attempt to carry out the content analysis to obtain data on four dimensions of corporate culture. Further, previous literature on measuring corporate culture through content analysis has identified various vehicles, including annual reports of listed firms [49][50][51], 10-K filings of listed firms [52][53][54][55], earnings call transcripts [56,57], statements about core values on corporate official websites [58,59], employee reviews [60] and the like. It is worth noting that, although media coverage as a medium of content is also considered to be used for measuring corporate culture, yet media coverage, in extant literature, is mainly utilized for sentiment analysis [35][36][37][38][39] and other areas, like images and portrayals of famous people [99], and national cultural traits PLOS ONE [100].…”

Section: Plos Onementioning

confidence: 99%

The role of regulatory policies in organizational culture: Insights from the education industry

Wang,

Senin,

Ahmad

2024

PLoS ONE

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On February 26, 2018 and July 24, 2021, the Chinese government respectively issued two significant regulatory policies to address the problems caused by off-campus training institutions in terms of students’ extra-curricular and family financial burdens. These policies have had a tremendous and far-reaching impact on the off-campus training industry in China. With the help of these two events, we explored the role of industry-level regulatory policies in shaping and forming organizational culture. This paper adopts a text analysis method, combined with the dimensions of the Denison Organizational Culture Survey (DOCS) and MAXQDA 18 software, to obtain data on corporate culture. Then, the approaches of regression discontinuity in time (RDiT) and regression discontinuity (RD) designs with multiple cutoffs are used to estimate the policy treatment effect. This empirical research suggests that regulatory policies have a significant impact on corporate culture. Moreover, regulatory policies of varying degrees of strictness have differential effects on different dimensions of corporate culture. The research findings contribute to the theories of corporate culture and can guide enterprises to evaluate the impact of policies on corporate culture more clearly, thereby enabling them to make wiser operation decisions.

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“…Abed et al (2022) show the significant impacts of corporate social responsibility in moderating the relationship between the determinants of creative accounting and the financial reporting quality of banks towards competitive advantages. Bhandari et al (2022) document that collaboration-(competition-) oriented culture firms have lower (higher) financial reporting quality, and these effects are incremental to corporate governance and tone at the top. Further analyses support our main findings and suggest that collaboration culture is associated with the likelihood of reporting a material internal control weakness, whereas competition culture is related to a lower likelihood of an internal control weakness and a restatement.…”

Section: 5mentioning

confidence: 99%

Intellectual capital, social capital components and internal control weaknesses: evidence from Iran’s business environment

Salehi

Rajaeei

Khansalar³

et al. 2023

JIABR

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Purpose This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between the variables of intellectual capital and social capital and internal control weaknesses. Design/methodology/approach The statistical population consists of 1,309 firm-year observations from 2014 to 2020. The research hypothesis is tested using statistical methods, including multivariate, least-squares and fixed-effects regression. Findings The results demonstrate a negative and significant relationship between intellectual capital, social capital and internal control weaknesses. The study also finds that increased intellectual and social capital quality improves human resource utilization, control mechanism, creativity and firm performance. The results also show that intellectual capital and social capital enhancement will reduce internal control weaknesses in the upcoming years. Originality/value This paper is the pioneer study on the relationship between intellectual capital and social capital and internal control weaknesses in Iran, carried out separately and in exploratory factor analysis. This paper considers intellectual capital components for theoretical factor analysis, including human capital, structural capital and customer capital. Internal control weakness is assessed based on financial, non-financial and information technology (IT) weaknesses.

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Corporate Culture and Financial Reporting Quality

Cited by 21 publications

References 70 publications

Big Data analytics and financial reporting quality: qualitative evidence from Canada

Big Data analytics and financial reporting quality: qualitative evidence from Canada

The role of regulatory policies in organizational culture: Insights from the education industry

Intellectual capital, social capital components and internal control weaknesses: evidence from Iran’s business environment

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