Reporting Frequency and Presentation Format: Detecting Real Activities Manipulation

Tang, Fengchun; Eller, C. Kevin; Wier, Benson

doi:10.2308/isys-51284

Cited by 10 publications

(4 citation statements)

References 33 publications

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“…The practice of REM is more costly from the perspective of shareholders and investors (Chi, Lisic, & Pevzner, 2011; Zang, 2012) because it is associated with low‐quality cash flow information (Roychowdhury, 2006), exacerbated information asymmetry, less credible and reliable accounting numbers (Ascioglu, Hegde, Krishnan, & McDermott, 2012) and severe economic consequences (Tang, Eller, & Wier, 2016). Thus, finding a mechanism to eliminate REM has become of increasing interest to several types of stakeholder over the last decade.…”

Section: Introductionmentioning

confidence: 99%

Outsourced internal audit function and real earnings management: The role of industry and firm expertise of external providers

2021

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As the outsourced internal audit function (IAF) and real earnings management are attracting widespread attention among firms, it is vital for stakeholders to understand how these two practices affect the quality of financial reporting. This study examines how the expertise of an external IAF provider reduces real earnings management. Using a pooled panel data regression of 928 firm‐observations, we find that the external IAF provider's firm‐specific expertise is significantly associated with lower real earnings management. Conversely, we report no such association for external IAF providers with industry expertise. These findings are robust under a battery of sensitive analyses. The results of additional analyses show that the industry and firm‐specific expertise of external IAF provider interact with each other, resulting in a significant reduction in real earnings management. We also find significant differences in the IAF quality between big4 and second‐tier audit firms in which the latter are associated with lower real earnings management and the former with higher real earnings management. Finally, we observe low real earnings management for important clients and/or those with influential CEOs if the external IAF provider has firm‐specific expertise.

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Section: Introductionmentioning

confidence: 99%

Outsourced internal audit function and real earnings management: The role of industry and firm expertise of external providers

2021

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“…The experimental accounting research has shown that graphs change the perception of investors and accountants about corporate performance (Tang et al, 2016). Furthermore, the impression management of graphs, especially through the use of selectivity techniques, is especially effective on the most impulsive analysts (Cardoso et al, 2015).…”

Section: Legitimacy Theory and Visual Contentmentioning

confidence: 99%

Form and substance: Visual content in CSR reports and investors’ perceptions

Invernizzi

Bellucci

Acuti

et al. 2021

Psychology and Marketing

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Although the importance of corporate social responsibility (CSR) reporting is well recognized, the influence of the visual characteristics of CSR reports on stakeholders' evaluations of companies is largely overlooked. Drawing on theories of the processing of fluency and legitimacy, this study deploys a content analysis and a realistic laboratory experiment to assess how the use of visuals in CSR reports affects investors' perceptions. With an international sample of large companies, the content analysis explores how reports use visuals and convey messages to readers.The subsequent experiment measures the optimal number of images in reports related to social responsibility. Specifically, we investigate whether a larger number of images increases the processing fluency of investors. Based on the theoretical background and the content analysis findings, we expect that an increase in processing fluency reduces perceived hypocrisy and, in turn, increases perceived organizational legitimacy. The results show that a moderate number of images (vs. zero images or a high number of images) increases investors' processing fluency and decreases their perception of hypocrisy, leading to higher levels of organizational legitimacy. This study concludes by providing actionable implications for how companies can improve their legitimacy through nonfinancial disclosure.

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“…Hasil tersebut sesuai dengan penelitian Khan (2015), Tang, Eller, & Wier (2016), dan Yusuf (2013) yang menjelaskan jika umur terdaftar perusahaan tidak memiliki pengaruh ketetapan waktu CIR. Namun, penelitian ini bertolak belakang dengan temuan beberapa peneliti (Botti, Boubaker, Hamrouni, & Solonandrasana, 2014;Dolinšek & Lutar-Skerbinjek, 2018;Guillamón Saorín & Martínez López, 2013).…”

Section: Metodeunclassified

“…Penelitian yang dilakukan oleh Rini (2016) dan Tang, Eller, & Wier (2016) sesuai dengan temuan dalam pengujian ini, yaitu struktur kepemilikan publik tidak dapat memacu ketepatan waktu pelaporan keuangan. Meskipun demikian, penelitian ini justru menolak temuan Alsartawi (2018) Implikasi dari pemberlakuan peraturan OJK tersebut menjadikan perusahaan Indonesia wajib untuk melaporkan laporan tahun an dan laporan keuangannya di web site.…”

Section: Metodeunclassified

Kualitas Corporate Internet Reporting Di Indonesia Dan Malaysia

Hermawan

Biduri

Hariyanto

et al. 2019

jamal

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Kualitas Corporate Internet Reporting di Indonesia dan Malaysia. Penelitian ini berusaha untuk menguraikan kualitas Corpo rate Internet Reporting (CIR) perusahaan Indonesia dan Malaysia. Metode yang digunakan untuk analisis adalah regresi logistik dengan CIR perusahaan farmasi Indonesia dan Malaysia periode 2012-2016 sebagai sampel. Penelitian ini menemukan bahwa perusahaan farmasi Indonesia lebih berkualitas dalam pelaporan CIR. Implikasi dari temuan ini adalah keharusan perusahaan farmasi di Indonesia untuk melakukan peningkatan kualitas. Peningkatan ini dapat memuaskan semua stakehol ders. Sebaliknya, perusahaan farmasi di Malaysia harus berupaya untuk mengejar kualitas dan ketepatan waktu CIR.

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Reporting Frequency and Presentation Format: Detecting Real Activities Manipulation

Cited by 10 publications

References 33 publications

Outsourced internal audit function and real earnings management: The role of industry and firm expertise of external providers

Outsourced internal audit function and real earnings management: The role of industry and firm expertise of external providers

Form and substance: Visual content in CSR reports and investors’ perceptions

Kualitas Corporate Internet Reporting Di Indonesia Dan Malaysia

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