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Znajomość zasad gwarantowania depozytów a skłonność do runu na banku

Author(s): Łukasz Kurowski,Piotr Górski / Language(s): Polish Issue: 1/2021

The main goal of the deposit guarantee scheme is to prevent banking panic and consequently to prevent banking crises. The purpose of the article is to check whether the knowledge of depositors about the existence of a deposit guarantee scheme and about the terms of the guarantee affects the propensity to bank run. Thus, the presented study emphasizes that the effectiveness of the deposit guarantee scheme is dependent on the degree of knowledge about the principles of its functioning in society. The results of 200 CATI interviews suggest that this knowledge does not affect the decision to run on a bank, but determines the run type. People with higher knowledge about the principles of deposit guarantee are more likely to make a non-cash form of run (transfer of funds to another bank). For people with less knowledge the cash withdrawal is dominant. Due to the finite cash resources in bank branches, the cash withdrawal form can increase the scale of the run through its mediality.

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Determinants of the choice of permanent options: The Case of European Groups

Author(s): Hend Guermazi,Salma Damak-Ayadi / Language(s): English Issue: 2/2023

Research Question: What are the determinants that may affect the choices of permanent accounting options adopted by European groups during the transition to IAS/IFRS standards? Motivation: 2005 was the year of the changeover to international standards in Europe. One of the difficulties and one of the challenges of the transition to IFRS for companies relates to the choice of permanent options retained during the first application of the IAS/IFRS standards which constitutes a commitment. It is in this perspective that we have directed our research by studying the determinants of the choices of the permanent options adopted by the European groups during the transition to the IAS/IFRS standards. Idea: The purpose of this article is to study the determinants of the choices of permanent accounting options made during the first adoption of international accounting standards IAS/IFRS. Data: The study sample consisted of 84 publicly listed firms in the Euronext 100 index. Tools: To test study’s hypotheses, we applied a logistical regression. Findings: Results show that industry, and the financial performance are the most used reasons to justify the choice of permanent options. Contribution: Compared to previous studies, our research focused on permanent options, whereas previous research was limited to the study of optional exemptions.

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Audit Committee’s Characteristics and the Cost of Debt

Author(s): Inês Borges Santos,Ana Isabel Morais,Inês Pinto / Language(s): English Issue: 1/2023

Objective: This paper examines the association between audit committee characteristics and the cost of debt, with the aim of gaining new insights on how this corporate governance mechanism contributes to the reduction of debt costs. Methodology: Using a sample of FTSE 100 companies listed in 2018 and 2019, our study investigates how audit composition and characteristics, such as finan- cial and industry expertise, gender, tenure and diligence affect audit committees’ oversight role, and therefore the impact on the companies’ level of risk and the cost of debt. Findings: The results show that overall audit committee’s characteristics do not impact the corporate cost of debt, except for the gender of the audit committee’s chair. Companies with audit committees managed by a chairwoman experience a lower cost of debt. The results also confirm that external auditors influence the cost of debt. As additional test, we conducted a principal compo- nent analysis to construct a corporate governance index of audit committee ́s characteristics, and we obtained similar results. Overall, the study results seem to suggest that the cost of debt is more significantly influenced by external auditors than by the characteristics of the audit committee. Value Added: This paper contributes to the literature on corporate governance by showing how audit committees characteristics affect the cost of debt. Recommendations: This study improves the understanding of the way debtholders may assess audit committee’s characteristics and auditors when assessing companies’ financial risk and the corporate cost of debt.

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Does audit committee matter? Evidence from Tanzanian listed firms

Author(s): Bernard MNZAVA / Language(s): English Issue: 2/2023

Aim: The primary role of audit committees is to provide oversight in the financial reporting, audit process, internal controls and in compliance with regulations and laws. The objective of this paper is to investigate the impact of board audit committees attributes on firm performance. Design/Research methods: Using a sample of firms publicly traded on the Dar es Salaam Stock Exchange (DSE) during 1998–2018; this paper estimated fixed effects regressions to tests the hypotheses developed. Conclusions/findings: The results show that audit committee attributes are positively linked with firm financial performance. Specifically, the findings reveal that audit committee attributes as measured by audit committee meetings, existence of audit committees, audit committee size and audit committee independence have positive impact on corporate performance as measured by return on sales (ROS) and profitability. These findings confirmed that firms having audit committees performed better than those without audit committees. Originality/value of the article: There is scarce research which examines the link between audit committees and firm performance in developing countries. To date, there is no study that has investigated the relationship between audit committee characteristics and firm performance in Tanzania. This paper provides new evidence on the relationship between audit committee attributes and firm performance in Tanzanian environment. Implications of the research: Overall, the findings recommend existence of large independent audit committees which conducts their meetings regularly as it is ideally enhances firm financial performance.

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Analiza dotycząca możliwości budowy modelu ryzyka kredytowego

Author(s): Paweł Marcinkowski / Language(s): Polish Issue: 39/2023

FinAi has undertaken a project focused on the development of an innovative credit risk model utilizing alternative data sources, such as data from social media platforms (Facebook, LinkedIn) and mobile phone records. This project was co-financed through the European Regional Development Fund under a funding agreement between FinAi S.A. and the National Centre for Research and Development (NCBiR), headquartered in Warsaw. The initial phase of the project involved the collection of data and their utilization in constructing a network graph of customer relationships. Furthermore, leveraging external data as well as data managed by FinAi, specific indicators were formulated. These indicators were employed under the supervision of experts to train a predictive model that incorporated graph structures. The model thus constructed was to exhibit a higher predictive capability compared to conventional models commonly employed within the industry. The study explored the feasibility of creating a credit risk model based on the acquired data and assessed the quality of data originating from alternative sources. It was demonstrated that alternative data sources were populated for a small fraction of the population, and their quality has proven unsatisfactory. The scale of the dataset proved inadequate for establishing a robust credit risk model or attaining a competitive advantage over the models in use within banking institutions.

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The impact of internet finance on bank profitability. Evidence from the Chinese commercial banks

Author(s): Apostolos Dasilas,Goran Karanović / Language(s): English Issue: 4/2023

Research Question: Does internet finance, measured by P2P lending and third-party payment, affect bank profitability? Motivation: Prior studies have focused on the adoption, development, determinants, acceptance, risks and customer satisfaction using data from developed markets, while the impact of internet finance on bank profitability remains understudied. Our study aims to fill this research gap by investigating the impact of internet finance on the profitability of Chinese banks. Idea: Employing static panel data regression analysis and this study explores whether internet finance, measured by P2P lending and third-party payment, affects bank profitability. Data: We use data from 51 Chinese listed commercial banks during the period 2012-2019. Data were culled from CSMAR database and iResearch website. Findings: The results show that internet finance exerts a positive effect on bank profitability for state-owned and joint-stock commercial banks, but adversely affects the profitability of regional commercial banks Contribution: This is the first study that investigates the effect of internet finance on the profitability of state-owned, joint-stock and regional commercial banks separately. In addition to bank-specific variables, this study also considers macroeconomic variables that have been alleged to affect bank profitability.

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Effects on corporate stakeholders and limitations of the implementation of the Non-Financial Reporting Directive (2014/95/EU)

Author(s): NingShan Hao,Voicu D. Dragomir,Oana Marina Radu / Language(s): English Issue: 4/2023

Research question: What are the effects of non-financial reporting (NFR) for companies and stakeholders?Motivation: We draw on previous research that examines the effects and limitations of the Non-Financial Reporting Directive on key stakeholders.Idea: This article investigates the increasing significance of the sustainability orientation in corporate operations, as well as the role of NFR in providing information about social, ethical, and environmental aspects of a particular organization. Additionally, the article explores the possible benefits of sustainability reporting, such as improved reputation, in addition to the company’s ability to contribute to the sustainable development goals.Data and tools: This paper provides a scoping review that explores the influence of NFR on the decisions of various stakeholders, such as companies, investors, governments or regulators, accountants and auditors, employees, and the general public. The review discusses existing studies in the literature focusing on NFR and the legislative context in respect to the transition from NFR to sustainability reporting.Findings and Contribution: This article shows that Directive 2014/95/EU positively influenced the quality and transparency of the sustainability disclosure process of companies. Also, we identify various gaps in the literature, along with challenges faced by firms when reporting on non-financial information and ensuring accuracy and completeness. Based on summarized evidence from the literature, the limitations of NFR include inconsistent formats, lack of standardization, weaknesses in the reliability and comparability of information used in decision-making process, and limited assurance. Finally, our study highlights the importance of transitioning from NFR to sustainability reporting, the latter having significant effects in increasing stakeholder participation, safeguarding business reputation, boosting investor confidence and achieving the sustainable development goals, while complying with legislation. It explores the challenges and opportunities linked to NFR (a synonym of ESG reporting) and specifies the necessary components of sustainability reporting frameworks.

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Unlocking technological capabilities to boost the performance of accounting firms

Author(s): Helmi Hentati,Neila Boulila Taktak / Language(s): English Issue: 4/2023

Research Question: What is the impact of the use of Internet technology on the financial and non-financial performance of accounting firms? Motivation: The evaluation of the performance of an accounting firm is based on the technological factor. This study is based on a multi-activity study of accounting firms which includes mainly reporting, auditing, and tax activities to create a realistic approach to appropriately measure the performance of accounting firms. Especially with the scarcity of studies have been conducted regarding the organizational impact of technologies on accounting firms. Idea: the purpose of the study was to determine the effect of technology on the performance of accounting firms, based on empirical data. Data: 104 observations were received via a questionnaire sent to the heads of the accounting firms. Tools: we used linear regression to measure the impact of technology use on performance and validated our results graphically. Findings: the results demonstrate that accounting firms equipped with technological capabilities benefit from superior performance. Contribution: these results have practical implications, suggesting that there is value in fostering a mutually beneficial relationship between academic research and the professional practice of accounting firms. Accounting professionals can utilize research insights to enhance their working methods, policies, and decision-making processes pertaining to technology. This collaboration can lead to tangible improvements within the accounting field and contribute to its ongoing development.

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Emphasizing the rising importance of digital technologies for delivery of accounting services

Author(s): Adrian Isip / Language(s): English Issue: 4/2023

Research Question: How is the accounting profession engaging with digitalization for delivery of services? How is digital transformation of accounting firms impacted by the Covid-19 outbreak? Motivation: Nowadays information and communication technologies are vital for companies to carry out their business operations. In a dynamic business environment, the speed of information production, the accuracy, immediate access to information, instant communication and electronic data transfer are crucial. In times of crisis, characterized by uncertainty, social and economic imbalances, managers need the financial and non-financial information much faster, more frequent and with a higher level of detail in order to make prompt decisions and ensure the business continuity.Idea: I investigate the rising importance of digital technologies for delivery of accounting services using the theory of change as theoretical framework in the context of Covid-19 pandemic as a strong pressure that forced the companies to accelerate their digitalization process.Data and tools: My methodological approach involves a qualitative analysis of data collected from semi-structured interviews with 21 professionals working within accounting firms. Findings: Following the theory of change, the results indicated that Covid-19 pandemic put high pressure on people to change their perceptions and behaviour and they adapted quite well and fast to the new reality characterized by social distancing. Digital technologies played a key role in helping organizations to carry on their activities and overcome the people’s resistance to the changes related to work, mobility and social interactions. According to the conceptual model, digitalization process within the companies was accelerated and digital transformation was achieved by engaging technologies, employees and clients. Some companies embraced outsourcing due to the loss of staff and the need to save money. Several accounting firms implemented telework and they exchanged documents and reports with their clients in cloud. The use of digital technologies enabled many accounting firms to gain new clients located in other cities. Moreover, some accounting firms adopted robotic process automation and even hired remote professionals from other cities because of labour shortage. Contribution: This research complements the literature related to digitalization in accounting and outsourcing of accounting services due to Covid-19 outbreak. Digital technologies have opened new avenues for outsourcing of accounting services and helped some companies to overcome their shortage of professionals.Practical implications: This study has implications for accounting firms, employees and clients since the use of digital technologies removed the physical location constraints and brought remote collaboration opportunities.

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Information technology capability and firm performance: A longitudinal study

Author(s): Daesung Ha / Language(s): English Issue: 4/2023

Research Question: We investigate the relationship between information technology (IT) capability and firm performance of US firms during 1989-2012.Motivation: We identify the model misspecification and estimation problems in Santhanam and Hartono (2003), Chae et al. (2014), Choi and George (2016), and Rahman and Zhao (2020) and provide new estimation results by using model specifications that better fit the characteristics of the sample data.Idea: We compare the long-term trends of the IT capability-performance relationship between the IT leader and control groups. Data: All data are from InformationWeek (IW) 500 and the Compustat database.Tools: We use a dynamic panel model with the firm-specific effect which incorporates the main assumptions of the resource-based view (RBV) of the firm.Findings: We find a positive association between IT capability and firm performance by using 1,308 IT leader firms chosen from the IW 500 from the period 1989 to 2012. We also find that the IT leader group’s financial performance consistently outperformed that of the control group over the entire sample period. However, during the second half of the 1990s, a period marked by a significant increase in IT proliferation and investment, the financial performance of the IT leader group leveled off. It appears that, contrary to expectations, the returns to the IT leader group’s superior IT capability did not translate into substantial improvements in operational efficiency during that period. We also observe that the financial performance of the control group experienced a much stronger recovery (with a threefold increase in magnitude) compared to the IT leader group during the 2000s. Contribution: This study makes a significant contribution to the existing literature as it presents the first-ever longitudinal study on the IT capability-performance relationship spanning 24 years. Moreover, this study is the first to investigate the existence of any changes in patterns of the IT capability-performance relationship, both across different groups and over time.

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Effects of non-financial performance management and risk disclosures on not-for-profit financial vulnerability: Evidence from the Australian aged care not-for-profit sector

Author(s): Deshani C. Hettiarachchi / Language(s): English Issue: 4/2023

Research Questions: To what extent are NFPs in the Australian aged care sector engage in non-financial performance and risk disclosures in their annual reports? What is the effect of non-financial performance and risk disclosures on the extent of financial vulnerability (FV)? Motivation: Research on measuring and understanding the determinants of FV or financial crisis within the not-for-profit (NFP) sector is both scant and limited. To address these gaps in the literature, the paper investigates the extent to which NFPs in the Australian aged care sector make voluntary disclosures related to non-financial performance management (NFPM) and risk information disclosures and examined the impact of NFPM and risk disclosures on the extent of FV in the Australian aged care NFP sector.Idea: The NFPM and risk information disclosures expected to be negatively associated with FV or financial crisis. Data: Data for the study is taken from publicly available database, the Australian Charities and Not-for-Profit Commission website, and quantitative content analysis was conducted to measure the extent of non-financial disclosures using data collected from the audited annual reports issued by 200 aged care NFPs for the years 2018 and 2019. Tools: The dependent variable of this study is the extent of FV that has been measured using the proposed multi-dimensional FV framework. Descriptive statistics, such as, provides mean, median, standard deviation, maximum and minimum values to recognise nature and extent of NFPM and risk information disclosures. For the inferential statistics, the study analyses the research model using multiple regression analysis.Findings: Panel regression results indicate inadequate disclosures of NFPM, and risk information are associated with the extent of FV of NFPs in the Australian aged care sector. The study identifies that only beneficial reporting, such as NFPM reporting and beneficial risk information, helps reduce the extent of FV in the NFP sector.Contribution: the study provides novel insights into the relationship between voluntary non-financial information disclosures (i.e., disclosures of NFPM and risk information) and the extent of FV in the NFP sector. Moreover, it provides a key contribution from the NFP context by recognising a positive and significant association between voluntary risk information reporting and the extent of FV in the NFP sector.

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A reverse-engineered pitch on defensive versus evidence-based medical technology: Liability risk and electronic fetal monitoring in low-risk births

Author(s): Elizabeth Yong,Kun Hing Yong / Language(s): English Issue: 4/2023

This pitching research letter (PRL) describes the application of the pitching research template introduced by Faff (2015, 2021) to a reverse-engineering process in the practice of electronic fetal monitoring (EFM) as a form of defensive medicine with regard to the field of medical technology. The pitch structure underlines a succinct and streamlined approach to recapitulate key components of scientific studies that form the basis upon which a researcher’s scientific or seminal research work is assembled.

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A reverse-engineered pitch on the scorching truth: Investigating the impact of heatwaves on Selangor’s elderly hospitalizations

Author(s): Yen Nee Teo,Kun Hing Yong / Language(s): English Issue: 4/2023

The pitch template introduced by Faff (2015; 2021) has become increasingly popular in academic research. Therefore, this paper aims to offer readers new ideas about a more time-efficient and easy-to-understand way of exploring a new research area and topic through a reverse engineering approach. The author believes that a reverse engineering pitch is the cornerstone to assist new researchers or PhD students to sharpen their pitching skills before they start to prepare an original pitch for a new research topic.

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Reevaluarea activelor fixe corporale în sectorul public. Concepte și practici contabile

Author(s): Ileana Cosmina Pitulice,Aurelia Ştefanescu / Language(s): Romanian Issue: 11/2023

The premise of addressing aspects concerning the revaluation of tangible fixed assets took into account its importance within the portfolio of components that precede the preparation of the annual financial statements. Through the correct and complete application of the conceptual and accounting coordinates related to the revaluation of tangible fixed assets, they will contribute to providing a true image of the financial position and financial performance of public sector entities. Thus, the issue of revaluation of tangible fixed assets in the public sector was approached gradually, in a three-dimensional manner, namely concepts, specific accounting practices and presentation in the annual financial statements.

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Metamodel of the REA model level

Author(s): Zdenek Melis,Jaroslav Zacek,František Huňka / Language(s): English Issue: 3/2013

This paper describes the gradual formation of the metamodel of the REA model level of the REA enterprise ontology. The paper aims to create a basic structure that allows creating valid models of the ontology. The first part of the paper discusses the identification of the elements used as a basis for the metamodel and their relationships. The second part describes the creation of the metamodel itself. This metamodel serves as the fundament for creating domain-specific modelling tool and can be used as a basis for an information system based on the REA enterprise ontology.

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THE ACCOUNTING PROFESSION IN ROMANIA: GENESIS AND KEY MOMENTS

Author(s): Teodora Viorica Fărcaș,Paula Ramona Răchişan,Sorin Romulus Berinde,Adrian Groşanu / Language(s): English Issue: 4/2023

This paper approaches from a historical perspective the development of the accounting profession in Romania. We aim to present, through an interpretivism methodological approach, using descriptive narrative research, the phenomena of the accounting profession in Romania and its evolution throughout history. The paper captures various stages of development, but also elements that have contributed to the development of this profession in Romania, and the role it had throughout time and the role that it fulfills today. The article highlights the fact that the development of higher education in economics was and is still essential in the existence and development of the accounting profession. By fulfilling such objectives and such performance standards, it will be possible to achieve the goal of this professional organization in terms of adapting quickly and efficiently to changes in the socio-economic environment, ensuring a high level of professionalism of members who will be constantly trained for the future, providing strategic consulting for the business environment, and finally affiliation to the position of reliable business partners. However, if we think about the way the accountant was perceived in the 19th century and the status he benefits in contemporary society, we can say with certainty that it was a battle won.

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IMPACT OF ACCOUNTING CONSERVATISM ON INCOME SMOOTHING: EMPIRICAL EVIDENCE FROM ALGERIA

Author(s): Bilal Kimouche,Ilyes Charchafa / Language(s): English Issue: 1/2024

This paper investigates the impact of accounting conservatism on income smoothing as a proxy for accounting manipulation. The study used 993 observations for 133 Algerian companies from 2012 to 2020, where income smoothing was measured by the variations in cash flows relative to earnings. However, conservatism was measured through non-operating accounting accruals, accruals-to-earnings ratio before extraordinary items, and allowances. The results showed that total accruals do not impact income smoothing versus positive impacts from non-operating accruals and allowances to income smoothing. Therefore, the study concluded that accounting conservatism facilitates income smoothing in Algerian companies by extending the discretionary room available for managers to manipulate earnings. These results require accounting regulators to consider the role of conservatism in manipulation when setting or amending accounting standards. They also imply that auditors should give more attention to conservative accounting practices to limit the opportunistic behavior of managers and increase the reliability of financial information.

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Analyzing Profitability Performance with the Integrated MEREC-COBRA Method: The Case of BIST Retail Companies

Author(s): Alparslan Oğuz,Haluk Satır / Language(s): English Issue: 1/2024

The purpose of this study is to evaluate the financial performance of retail trade enterprises whose shares are traded on Borsa Istanbul by using profitability ratios. Within the scope of the study, the data of ten retail trade enterprises covering the period 2021-2022 were used. The weight of the performance criteria used in the study was determined by the MEREC method. COBRA method was used to determine the performance ranking among the firms. A two-stage sensitivity analysis was conducted to determine the consistency of the analysis results. In the first stage, seven different multi-criteria decision-making methods were used to rank the firms according to their performance. The consistency between the results of the study and the results of other methods was determined by Spearman correlation coefficients. In the second stage, scenarios with different criteria weights were tested. Sensitivity analysis showed that the results were stable and consistent. According to the results of the study, MIPAZ ranked first in profitability performance for both years.

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Evolutii la zi si perspective privind raportarea financiara in Romania. Exigente calitative pentru auditorii financiari

Author(s): Maria Manolescu,Georgeta Petre,Alexandra Lazar / Language(s): English,Romanian Issue: 1 (173)/2024

Through this paper, the authors have proposed to highlight the current topics that are of real interest for the economic environment, in general, and for the accounting profession, in particular, mainly aiming at the following: the dynamics of the evolution of regulations regarding financial reporting at the national level, in correlation with the overall requirements at European and international level; the novelty of approaches regarding financial reporting/corporate reporting and their complexity in the context of current European policies and strategies regarding sustainable development, achieving the green transition and building an economy in the service of citizens; the content analysis of the conceptual and substantive developments of recent European regulations, embodied in Directive (EU) 2022/2464 on sustainability reporting by certain categories of entities, in order to understand and properly transpose its requirements into domestic legislation and then in current practice, by: national entities, the accounting profession in general, and financial auditors, in particular. Last but not least, the authors aimed to identify the impact of these regulations in the changes that should be taken into account in university education, in the research programs that will be launched in the following periods, as well as in the continuous training programs of some representative professional categories, including of the accounting profession.

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DIGITAL ACCOUNTING TRANSFORMATION: A COMPARATIVE ANALYSIS OF TRENDS IN TURKEY AND DEVELOPED COUNTRIES (2011-2022)

Author(s): Salahattin Altundağ / Language(s): English Issue: 2/2023

Digital transformation enables the widespread adoption of innovative technologies in accounting processes, optimizing businesses' decision-making processes and increasing the importance of the strategic advisory role. This study aims to examine the digital transformation of accounting processes and the usage rates of electronic accounting software in Turkey and selected developed countries between 2011 and 2022. While evaluating Turkey's position in the digital accounting transformation, the successes and shortcomings in the process are identified, and policy recommendations and business practices are presented for areas that need improvement.In this study, the numerical data obtained were used to assess Turkey's position in the digital accounting transformation and its comparative performance with developed countries, with significant contributions provided through the recommendations. When compared with developed countries in the digital accounting transformation process, it is observed that Turkey has made significant progress in certain areas, but there are still areas that need improvement. This study makes a significant contribution to the comparison of Turkey's digital accounting transformation with developed countries by employing multiple linear regression analysis and quadratic polynomial regression models, emphasizing the need to focus on addressing shortcomings and improving areas that require development.

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