State Sponsors of Terrorism Disclosure and SEC Financial Reporting Oversight

Hills, Robert; Kubic, Matthew; Mayew, William J.

doi:10.2139/ssrn.3592694

Cited by 4 publications

(6 citation statements)

References 1 publication

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“…More importantly, it extends the recent empirical evidence on the impact of terrorism on capital markets at the firm level (e.g. Chen et al , 2020a; Duru et al , 2020; Hills et al , 2020). The findings of this study may also enhance our understanding of the economic and social consequences of other kinds of terrorist activities.…”

Section: Discussionsupporting

confidence: 75%

“…This study contributes to the broad literature on managerial attributes and corporate policies (e.g., García-Meca and García-Sánchez, 2018;Doukas and Zhang, 2020), as it extends our understanding of the association between managerial ability and earnings quality in an understudied emerging market. More importantly, it extends the recent empirical evidence on the impact of terrorism on capital markets at the firm level (e.g., Chen et al, 2020a;Duru et al, 2020;Hills et al, 2020). The findings of this study may also enhance our understanding of the economic and social consequences of other kinds of terrorist activities.…”

Section: Discussionsupporting

confidence: 75%

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Managerial ability, earnings quality and ISIS: evidence from Iraq

Bazrafshan

Makarem

Hesarzadeh

et al. 2021

IJOEM

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PurposeThis study investigates the association between managerial ability and earnings quality in firms listed on the Iraq Stock Exchange and how the emergence of the Islamic State of Iraq and Syria (ISIS) influences the association.Design/methodology/approachThis study uses a sample of firms listed on the Iraq Stock Exchange over the period 2012–2018. Managerial ability is quantified using data envelopment analysis, and earnings quality is measured by earnings restatement, earnings persistence, accruals quality and earnings response coefficient. Panel regression analysis is used to examine the research hypotheses.FindingsThe findings indicate that managerial ability positively affects earnings quality of Iraqi firms and that ISIS weakens the relationship between managerial ability and earnings quality. These findings are robust to the alternative measures of managerial ability, as well as to various approaches used to address endogeneity including propensity-score matching and a difference-in-differences analysis.Originality/valueThis study provides insight into the impact of managerial ability on earnings quality in an under-studied emerging market. Furthermore, this study broadens the existing literature about the financial consequences of a modern terrorist group, ISIS.

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Section: Discussionsupporting

confidence: 75%

Section: Discussionsupporting

confidence: 75%

Managerial ability, earnings quality and ISIS: evidence from Iraq

Bazrafshan

Makarem

Hesarzadeh

et al. 2021

IJOEM

View full text Add to dashboard Cite

show abstract

“…For example, Acito et al (2019) find evidence of inconsistent treatment across filers with similar materiality judgments, which is consistent with research that identifies significant variation in comment letter style and outcomes by SEC staff (Baugh et al 2020; Do and Zhang 2018; Kubic 2021; Robinson et al 2011). Furthermore, in settings where the SEC is focused on nonfinancial disclosures, the probability of issuing an accounting‐related comment is lower, largely due to a lawyer, rather than an accountant, being assigned to the filing review team (Hills et al 2020). Finally, Boone et al (2021) find that the SEC is more likely to issue comments on a foreign company's annual report or 6‐K filing when the foreign company provides more 6‐K disclosures, as opposed to issuing comments to foreign companies that may be inadequately disclosing material events in Form 6‐K in a timely manner.…”

Section: Commentary On the Sec Filing Review Process Literaturementioning

confidence: 99%

The SEC Filing Review Process: A Survey and Future Research Opportunities*

Cunningham

Leidner

2022

Contemporary Accting Res

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As part of its goal to monitor and enhance the quality of information available to investors, the SEC reviews companies' filings to ensure compliance with applicable financial reporting and disclosure requirements. Increased public interest and the substantial costs for both the SEC in reviewing and the companies in responding have led to a rapidly growing body of accounting literature that examines the filing review process. We survey and comment on 80 published and unpublished academic research papers in this literature and identify significant gaps that future research should address. We also summarize the institutional features of the filing review process, aiming to inform future academic studies. Our survey should be of interest to both academics and market participants evaluating the effectiveness and efficiency of the filing review process.

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“…However, as previously discussed, the ISIS war is a regional terrorism, and in the research done, the origin and role of terrorism can be found in the reporting. These fans may relate to companies in any way and can influence their atmosphere (Hills et al, 2020). For example, he may use the cash resources of these companies to advance the terrorist goals of this group.…”

Section: 2mentioning

confidence: 99%

“…On the other hand, it can be inferred that terrorism can lead to the fraudulent reporting incentives mentioned above. Also, Hills et al (2020) state that the existence of terrorist movements disturbs and even destroys the monitoring of financial reporting. In addition, Cunningham (2003) states that terrorism increases the limitations of internal controls and leads to an increase in fraud.…”

Section: 2mentioning

confidence: 99%

A comparative analysis of the impact of ISIS and COVID-19 on fraudulent reporting motives and audit quality in Iraq

Al-Gburi,

Velashani,

Salehi

2023

J. Infras. Policy. Dev.

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The Corona epidemic, as a global crisis, and the Islamic State of Iraq and Syria) ISIS (war, as a regional crisis in Iraq, have significantly impacted the atmosphere of companies and the continuation of their activities. The present study examines the role of these crises in creating incentives for fraudulent reporting and reducing or improving audit quality. It also compares the results of these two relationships with each other. In other words, the current paper sought to answer these issues: What effect did the ISIS war and the COVID-19 pandemic have on the fraudulent reporting motives of companies, and how did it affect the quality of their audits? In the end, the answer to this question was addressed: What are the differences and similarities between the study results of the impact of COVID-19 and ISIS on fraudulent financial reporting and audit quality? For this purpose, the data of 33 companies from 2008 to 2021 (462 observations) were collected to examine six formulated hypotheses, and the hypotheses were tested using the method of structural equations and analysis of variance. Interviews with experts were also used to determine quality indicators of auditing and fraudulent financial reporting so that indigenous indicators were selected and finalized. The results showed no significant relationship between the epidemic of the COVID-19 crisis and the motives of fraudulent reporting and audit quality and between the crisis of the ISIS war and the motives of fraudulent reporting. However, the ISIS war crisis has negatively and significantly impacted audit quality. Finally, the results indicated no significant difference between the impact of the epidemic crisis of COVID-19 and ISIS on the motives of fraudulent reporting. Still, there is a significant difference in the impact of the epidemic crisis of COVID-19 and ISIS on the audit quality. The knowledge enhancement of the present study is the development of literature on the impact of the Corona and ISIS crises on corporate financial reporting and auditing. The current paper, by studying the consequences of COVID-19 and ISIS, showed that further investigations in this field, especially regarding the capital market environment and A company, can obtain essential results based on which practical suggestions can be made for possible future crises.

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State Sponsors of Terrorism Disclosure and SEC Financial Reporting Oversight

Cited by 4 publications

References 1 publication

Managerial ability, earnings quality and ISIS: evidence from Iraq

Managerial ability, earnings quality and ISIS: evidence from Iraq

The SEC Filing Review Process: A Survey and Future Research Opportunities*

A comparative analysis of the impact of ISIS and COVID-19 on fraudulent reporting motives and audit quality in Iraq

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