Financial reporting and moral sentiments

Lunawat, Radhika; Shields, Timothy W.; Waymire, Gregory B.

doi:10.1016/j.jacceco.2021.101421

Cited by 10 publications

(5 citation statements)

References 31 publications

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“…For example, accounting researchers can bring their expertise in the study of information production and dissemination to the emerging fields of narrative economics (Shiller 2017, 2020) and social economics and finance (Frank 2020; Hirshleifer 2020). Furthermore, a focus on individual people paves the way for accounting and finance researchers to study important topics such as morality, ethics, and stereotypes (O'Hara 2016; Bertrand 2020; Bloomfield 2021; Lunawat et al 2021). With the increasing availability of individual‐level data and sophisticated data analytics (e.g., machine learning and artificial intelligence algorithms), we expect research on individual decision makers to flourish and further our understanding of the behavioral economics of accounting.…”

Section: Discussionmentioning

confidence: 99%

Behavioral Economics of Accounting: A Review of Archival Research on Individual Decision Makers*

Hanlon

Yeung

Zuo

2021

Contemporary Accting Res

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This paper develops a unified framework to synthesize the growing stream of positive research on the role of individual decision makers in shaping observed accounting phenomena. This line of research recognizes two central ideas in behavioral economics. First, individual behavior depends not only on economic incentives and accessible information but also on individual preferences, abilities, experiences, and other characteristics. Second, the constraints that structure human interactions encompass both formal institutions (e.g., rules, laws, constitutions) and informal institutions (e.g., norms, conventions, rituals). Our review covers a broad set of individuals who are of interest in accounting research: managers, directors, audit partners, analysts, standard setters, politicians, judges, journalists, loan officers, financial advisors, and investors. We aim to understand the systematic effects of individual characteristics on a wide spectrum of accounting phenomena, including financial reporting, disclosure, tax planning, auditing, and corporate social responsibility. We highlight the importance of personal characteristics not only for an individual's own behavior but also for others' perceptions. Our review mainly focuses on archival research in accounting and provides some thoughts about opportunities for archival empiricists going forward. We also, when feasible, highlight opportunities for future field, survey, and experimental research. A central takeaway from our review is that individual‐level factors significantly improve our ability to explain and predict accounting phenomena beyond firm‐, industry‐, and market‐level factors.

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Section: Discussionmentioning

confidence: 99%

Behavioral Economics of Accounting: A Review of Archival Research on Individual Decision Makers*

Hanlon

Yeung

Zuo

2021

Contemporary Accting Res

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“…One key area where big data analysis can be particularly beneficial is financial reporting (Lunawat et al, 2021). By analyzing large volumes of financial data, big data analytics tools can help to identify trends, anomalies, and patterns that may not be immediately apparent through traditional accounting methods.…”

Section: Implications For Accounting Practices and Proceduresmentioning

confidence: 99%

Accounting in the Era of Big Data: Case Studies and Frameworks

THANASAS,

THEODORAKOPOULOS

2023

JEE

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The increasing volume, velocity, and variety of data generated in today’s digital economy have given rise to new opportunities and challenges for the field of accounting. Big data has the potential to revolutionize accounting practices by providing a wealth of information that was previously unavailable. However, to fully realize the potential of big data, it is essential to develop a theoretical framework for analyzing and evaluating the data. This paper presents a theoretical framework for analyzing big data in accounting. The framework includes considerations related to data quality, data privacy, and ethics. The paper concludes by discussing the implications of big data for accounting practice and research, and by offering recommendations for future research in this area.

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“…Disclosure can increase and accelerate the spread of information to the market and improve the quality of the information provided (Abdullah & Al-Jafari, 2011). Experts have long suspected that humans behave differently when their actions are monitored or disclosed to others (Lunawat, Shields, & Waymire, 2021). Lunawat et al (2021) stated that the assumption exists that someone will maximise their utility regardless of other parties.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Experts have long suspected that humans behave differently when their actions are monitored or disclosed to others (Lunawat, Shields, & Waymire, 2021). Lunawat et al (2021) stated that the assumption exists that someone will maximise their utility regardless of other parties. For this reason, the information provided needs to be supported by adequate evidence through financial disclosure.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Tax Disclosure in Financial Statements: The Case of Indonesia

Pratama

Pratiwi

2022

IJAEFA

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Tax disclosure has long been of concern to the public. Corporations provide tax disclosure as part of their financial reporting, whether on a voluntary or mandatory basis. However, the level of tax disclosure is still problematic due to the secrecy aspect of taxation. This research was undertaken to better understand the effects of tax avoidance, good corporate governance, industry regulation, and participation in tax amnesty on corporate tax disclosure. This research used data from 422 public Indonesian companies that had published financial statements in the year 2019. The data were analysed using multiple linear regression. The results reveal a negative relationship between tax avoidance and tax disclosure, with lower tax avoidance leading to higher tax disclosure; a positive relationship between both good corporate governance and tax amnesty and tax disclosure, with better corporate governance and tax amnesty leading to higher tax disclosure; and a negative relationship between industrial regulations and tax disclosure, with increased industrial regulations leading to lower corporate tax disclosure. Overall, this research shows that tax disclosure not only reveals tax activities but also reflects the company’s views on tax compliance.

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Financial reporting and moral sentiments

Cited by 10 publications

References 31 publications

Behavioral Economics of Accounting: A Review of Archival Research on Individual Decision Makers*

Behavioral Economics of Accounting: A Review of Archival Research on Individual Decision Makers*

Accounting in the Era of Big Data: Case Studies and Frameworks

Tax Disclosure in Financial Statements: The Case of Indonesia

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