Muhasebe Uygulamalarına Etkili Faktörler ve Çin Muhasebe İklimi

Author(s): Vasfi Haftacı,Rexiti Zainiguli / Language(s): Turkish Issue: 1/2016

Each habitat has its own unique climate. There are many factors that determine the climate. Geography, topography, vegetation, water, etc. factors that determine the climate of the region. Each product will not grow in any climate. Grown products are a result of the climate of that region. In accounting, reflection of the belonged society is also observed. China's accounting development has its own unique way, this specificity has also affected the whole world. The accounting development history of China and The World dates back to three thousand years. Several implementations and changes had been experienced through the development of accounting, and many difficulties had arose accordingly. This study focused on the effect of environmental factors on accounting practices. In addition, factors affecting the accounting practices in China are summarized under the title of Chinese Accounting Climate.

Stakeholders’ perceptions on earnings management motivations and techniques in Libyan commercial banks

Author(s): Yasser Barghathi / Language(s): English Issue: 3/2017

The issue of earnings management has continued to be problematic in the financial reporting context. It has proved to be an important topic that concerns a wide range of stakeholders including regulators, investors and preparers. This paper examines the perceptions of Libyan Commercial Banks' (LCBs) stakeholders regarding earnings management (EM) motivations and techniques. The paper reports on a questionnaire survey of stakeholders which yielded 102 Responses (response rate 53%). It is found that LCBs’ managers are engaged in EM practices as a result of a number of motivations. In consistent with accounting literature on EM, LCBs’ managers tend to use Loan Loss Provision LLP as well as other techniques to manage their earnings. However, the research finding reveal some other “techniques” that are being used for EM. Some of them clearly lay out of GAAP and law framework which may be seen as an explicit breach to bank managers’ accountability. The importance of the banking sector for society has been amply demonstrated in recent years. The evidence provided by the questionnaire results refer to a serious problem to the accountability of LCBs’ managers. The existence of these motivations, which appear to be unavoidable, put pressure on the accountability process and expose it to a lack of trust and disrepute which therefore may have an adverse effect on the relationship between LCBs’ managers and their stakeholders. LCBs’ manager should be free from such motivations in order to produce unbiased and fair accounting information.

ERRATA do artykułu w „Zeszytach Teoretycznych Rachunkowości” 2017, 92 (148)

Author(s): Katarzyna Świetla,Paweł Zieniuk / Language(s): Polish Issue: 94/2017

Symulacyjne badanie wpływu liczby i rozmieszczenia luk na dokładność prognoz w szeregu czasowym dla danych dziennych

Author(s): Maciej Oesterreich / Language(s): Polish Issue: 55/2017

W pracy przedstawione zostaną wyniki symulacyjnej analizy wpływu występowania luk na dokładność prognoz inter- i ekstrapolacyjnych dla szeregów charakteryzujących się wysoką częstotliwością obserwowania oraz złożoną sezonowością. Do budowy prognoz wykorzystano klasyczne modele szeregu czasowego, w którym wahania sezonowe o cyklu zarówno tygodniowym, jak i rocznym były opisane za pomocą zmiennych zero-jedynkowych. Zmienną, którą poddano analizie, była dzienna sprzedaż w litrach paliw płynnych na stacji paliw X w latach 2012-2014, przy czym lata 2012-2013 stanowiły przedział czasowy próby, a rok 2014 był okresem empirycznej weryfikacji prognoz. Rozpatrywanych było sześć wariantów luk różniących się odsetkami, z których każdy zawierał po dziesięć tysięcy wariantów luk. Obliczenia zostały wykonane z wykorzystaniem pakietu R oraz Statistica 12.

Management practices of small-firm networks and the performance of member firms

Author(s): Douglas Wegner,Felipe de Mattos Zarpelon,Jorge Renato Verschoore,Alsones Balestrin / Language(s): English Issue: 1/2017

Even considering a small-firm network as a new organizational form, few studies analyze how network management practices may influence the performance of member firms. To help overcome this gap, we conducted a survey with 242 firms associated with 49 small-firm networks in Brazil. The results show that collective planning, evaluation, communication, innovation, services offered by the network, leadership, and also the entrepreneurs’ orientation to business development have a positive influence on firms’ performance. The study contributes to the organizational literature and practice as it identifies a set of management practices that influence the performance of firms in small-firm networks.

Mindset of employees working in a matrix organizational structure

Author(s): Eglė Lukinaitė,Jolanta Sondaitė / Language(s): English Issue: 1/2017

Organizations wishing to be successful and control their complexity will probably have to develop matrix mindset. The main goal of this research is to reveal the mindset of employees working in a matrix organizational structure. The data were collected through focus groups. A thematic analysis was employed to achieve the goal. The results revealed that employees working in a matrix organizational structure perceive their influence through cooperation, discussion and personal efficiency. Employees not working in a matrix organizational structure emphasize the manager’s influence and formal power instead of their own personal power.

Impact of work engagement on turnover intention: moderation by psychological capital in India

Author(s): Manish Gupta,Musarrat Shaheen / Language(s): English Issue: 1/2017

With increased number of employment opportunities in India, employers are increasingly finding it difficult to control employee turnover. Nonetheless, positive psychologists argue that one of the ways to face this challenge is by understanding the positive factors such as, work engagement and personal resources that negatively affect employees’ turnover intention. Therefore, the objective of this study is to examine the moderating role of psychological capital in the work engagement – employee turnover intention relationship. Hierarchical regression was used to analyze a sample of 228 employees working in diverse industries. The findings indicate that psychological capital moderates the relationship between work engagement and intention to turnover. The findings augment the theory of self and role by identifying moderating role of personal resources in strengthening the negative relationship between work engagement and turnover intention. Managers may take steps to enhance the employee-co-worker and employee-supervisor relationship either by promoting team related activities or by enabling their employees to work independently. Also, in order to save the cost of hiring a new candidate and losing an experienced employee, managers may create mechanisms for measuring work engagement of at least their key employees or a regular basis. This paper fulfills an identified need to study how psychological capital plays a key role in affecting the work engagement–employee turnover intention relationship in Indian context.

The effect of internal audit effectiveness, auditor responsibility and training in fraud detection

Author(s): George Drogalas,Michail Pazarskis,Evgenia Anagnostopoulou,Angeliki Papachristou / Language(s): English Issue: 4/2017

The purpose of this study is to explore the relationship between internal audit effectiveness, internal auditor’s responsibility, training and fraud detection. During the last decade internal auditing has become an integral part of modern businesses since it is capable of detecting errors or offences which lead to fraud. In order to investigate the above relationship, we conducted a survey of companies listed in the Athens Stock Exchange. We used factor analysis to validate the survey instrument and to construct our variables measuring fraud detection, internal audit effectiveness, auditor responsibility and training. We used regression analysis to test for significance between the constructed variables. Our analysis shows that audit effectiveness, auditor responsibility and auditor training affect positively and significantly the detection of fraud. Our results highlight the importance of internal audit in detecting accounting fraud and the need of companies to invest on internal audit processes and training in order to achieve enhanced corporate performance. Finally, our research stresses the importance of internal audit and fraud detection for companies which operate in countries which are in a period of economic crisis.

The relevance of financial information and contents of the new audit report for lending decisions of commercial banks

Author(s): Marina Trpeska,Atanasko Atanasovski,Zorica Bozinovska Lazarevska / Language(s): English Issue: 4/2017

This research study examines the importance of financial information and information contained in the ISA’s New Audit Report effective from 2016 for lenders as capital providers. We base our findings on a survey conducted in September of 2016 with corporate loan officers for medium-large corporate clients in Macedonia. The results show that the annual report of the company, except for the management report and notes to the financial statements, has consistently high importance and usability for respondents’ decision making. Various accounting ratios related to liquidity, financial stability and profitability of the company are considered very important and regularly used in credit analysis. However, respondents were not consistent in their shared perceptions regarding high importance of projected profits and historical information on operating cash flows. All loan officers gave high importance to the information found in existent auditor’s report format regardless of the form of expressed opinion. Also, information on key audit matters, additional information on going concern and related auditor’s judgement, procedures related to fraud risk were considered of high importance. Lenders rated as less important the disclosure of the name of engagement partner, auditor’s statement on independence and compliance with ethical requirements and the level of materiality used in the audit.

Conflicts of interest in business: A review of the concept

Author(s): Voicu D. Dragomir / Language(s): English Issue: 4/2017

All companies admit in their codes of conduct that conflicts of interest (CIs) are a threat to their efficiency, integrity and reputation. Except for insider trading, definitions of CIs are strictly particular to each business and publicly expressed through their codes of ethics. I propose an interpretative analysis of what is understood by conflict of interest in the codes of ethics of the world’s ten largest companies, along with a comprehensive review of CIs in several sections: employment, contracting, corporate assets, insider trading and personal investments, competitors, and corporate image. The present paper offers solutions to avoid or resolve CIs in a business context, by combining economic preference with the psychological cognitivist view of self-interest. The conclusion is that a code of ethics and relevant training are protective measures for a company wishing to convince its employees that they are better off not entering CIs.

The relation between the CSR and the accounting information system data in Central and Eastern European (CEE) countries – the evidence of the Polish financial institutions

Author(s): Justyna Fijałkowska,Beata Zyznarska-Dworczak,Przemysław Garsztka / Language(s): English Issue: 4/2017

Financial institutions play a fundamental role in determining the sustainability of economies, both in developed and developing countries. However, the worldwide financial crises made many financial institutions lost their credibility and CSR engagement has been perceived as a remedy. The aim of this paper is to analyze the interrelation between being socially responsible and tangible financial outcome of financial institutions in one of the CEE countries - Poland. Financial and market data of all the public companies from the financial sector in Poland – 116 financial institutions. The analyzed period is 2012-2015 that gives 257 observations. The empirical results reveal that in case of financial institutions in Poland the slack resources are strongly related to CSR involvement, however being socially responsible is not reflected in the bottom line. Polish market and the public are reluctant in considering the CSR importance and the CSR engagement is not rewarded. This undermines the role of CSR commitment in financial institutions in CEECs. It may be assumed that CSR efforts in Poland are not focused properly, or they are not communicated effectively. On the basis of comparative analysis is presented there is a significant difference between CEE countries and other transitional countries in CSR implementation and communication. The findings are important in better understanding of the link between CSR engagement and its tangible outcomes in CEE countries. The conclusions may lead to the improved decision-making processes concerning CSR activities and their communication.

An examination of the relationship between CSR disclosure and financial performance: The case of Polish banks

Author(s): Łukasz Matuszak,Ewa Różańska / Language(s): English Issue: 4/2017

The purpose of this study is twofold. First, this study investigates the trends of corporate social responsibility (CSR) reporting and financial performance (FP) in commercial banks in Poland. Second, this study examines the impact of the CSR disclosure of the banks on their financial performance (ROA, ROE, NIM). Sample consists of 18 banks. The data from annual reports for the period of 8 years (2008 – 2015) were both hand collected and obtained from Notoria Servis Database. A content analysis is used to measure the level of CSR disclosures and a panel data analysis is employed to examine the CSR-FP relationship. Software: GRETL. Two key findings: (1) Positive relationship between banks’ CSR disclosures and their profitability measured by ROA and ROE. However, the relationship between banks’ CSR disclosures and NIM is negative. Statistical analysis did not report any significant effect of CSR activities on ROA, ROE and NIM ratios. (2) Banks’ CSR activities are not dominant predictor of their profitability as compared with control variables. To our best knowledge this research is the first quantitative analysis regarding banking sector in Poland. Further, this study was conducted in emerging market with different socio-economic context and regulations compared to developed market. The findings contribute to and increase the understanding of the relationship between CSR disclosures and FP. Finally, this study has important implications for policy makers, managers, investors, and others.

A European map regarding the strictness of the transfer pricing regulations

Author(s): Ioana Neacşu (Ignat),Liliana FELEAGA / Language(s): English Issue: 4/2017

In the context in which transfer pricing may represent a mechanism through which multinationals have the possibility to move funds internationally, in order to prevent the base erosion and profit shifting between multinationals, countries over the world have adopted various transfer pricing regulations. Furthermore, some of the countries adopted stricter regulations than others. The objective of our research was to identify the level of strictness for the transfer pricing regulations from the European countries. To achieve this objective, we analyzed the transfer pricing regulations of all European countries and we built a transfer pricing strictness index, based on which we defined 4 categories of countries (where category 1 includes the countries with the least strict transfer pricing regulations and category 4 countries with the strictest regulations). After that, we illustrated how these categories are distributed on the European map. In order to collect the information, we used the transfer pricing guides issued by the Big Four companies for the year 2015. The study`s results show that the strictness of the transfer pricing regulations decreases from the west of Europe to east. Moreover, most of the countries were included in category 2, respectively category 3, meaning that the transfer pricing regulations from the European continent are not so flexible, but in the same time are not so strict.

Mandatory adoption of IFRS in emerging markets: the case of Turkey

Author(s): Hüseyin Temiz,Ömer Faruk Güleç / Language(s): English Issue: 4/2017

European-listed companies and many emerging countries have been required to present their consolidated financial statements in compliance with the International Financial Reporting Standards (IFRS) since 2005. Having cross-border comparability and transparency with this uniform accounting system is expected to provide higher accounting quality and value relevance. Evaluation of financial performance in terms of value relevance of IFRS is not only vital for existing investors or stakeholders but also for those who want to invest at the international level. Thus, in this study, we examine the value relevance of earnings and book value of equity on share prices through using Ohlson (1995) valuation model. While 2001 to 2004 is conducted as the pre-IFRS period, 2005-2008 is a post-IFRS period to display the change in value relevance in the same number of years. Our sample includes only nonfinancial firms that operate on BIST index. Since financial firms are subject to different regulations, we exclude them from the sample. The results show that the accounting information produced under IFRS is more value relevant. We test the value relevance with both cross-sectional and pooled regression for the periods. In addition, we use panel data analysis (survival analysis) to validate the increase in value relevance between the periods. We also test the firm size and earnings announcement effect on value relevance for robustness.

Emerging information technologies in accounting and related security risks – what is the impact on the Romanian accounting profession

Author(s): Sînziana-Maria Rîndașu / Language(s): English Issue: 4/2017

This study investigates whether aspiring and professional accountants understand the benefits and security challenges brought by emerging technologies such as: Big Data, data analytics, cloud computing and mobile technologies. 115 participants took part in a survey during January and February 2017, all having at least one year of practical experience in accounting or audit and 80% of them being affiliated with national or international accounting professional bodies. The research has three key findings: (1) Professional accountants and auditors are having in average a theoretical knowledge of the emerging technologies in the accounting field, but they still need to enhance their skills to exploit them efficiently, (2) Mobile technologies started to be adopted by the Romanian practitioners and (3) The profession has become aware of the security risks brought by emerging technologies in the digital accounting. The accounting profession is on the verge of change and the practitioners do not yet possess sufficient skills regarding the analyzed emerging technologies. As per this, the professional bodies and academic environment should reassess their curricula to enforce the necessary changes for preparing practitioners to successfully face the future challenges and avoid their replacement by other professions more qualified.

Exploring cybercrime – realities and challenges

Author(s): Victoria Stanciu,Andrei Tinca / Language(s): English Issue: 4/2017

Cybercrime is a global, transnational serious problem that needs strong technical and legal responses. The information represents an important asset that must be secured and properly used as it provides the support for value creation and sustainable development. Being a valuable asset, the information is exposed to continuous and virulent attacks conducted by cybercrime groups and significant financial and human resources must be allocated to the cybercrime limitation. The purpose of authors’ research was to get more knowledge about cybercrime and attacker’s behavior and to develop a discussion on the cyber security and the means of its improvement. The research results attempt to provide useful recommendations on countermeasures against cybercrime and raise the awareness of companies’ senior management and governments’ representatives on cyber criminality.

Gender impact of chasing dirty money policies: A Fantasy Pitch

Author(s): Bao Hoang Nguyen,Jia Chen / Language(s): English Issue: 4/2017

This paper describes the use of the fantasy research pitching exercise in the context of the UQ Summer Research Program. The authors provide their personal reflections on the process of doing the exercise and highlight the role of Faff's (2015, 2017) pitching research template as a useful research learning tool.

New money: are we ready to take on the impacts of a cashless society? A fantasy pitch

Author(s): Matthew Khong,Marisol Escobar / Language(s): English Issue: 4/2017

This paper is a written account of the pitching research experience two UQ Research Scholars’ (Matthew & Marisol) underwent, as part of the UQ Summer Research Program. It elaborates the use of Faff’s (2015) pitching research framework by the duo to develop a full ‘fantasy pitch’ in studying how the usage of digital money can alter the social construct, and the value of money. Comments on how the individuals has benefited from such a learning experience can be found at the end of the paper in ‘personal reflections’.

The investment strategies of sovereign wealth funds: A reverse engineered pitch

Author(s): Stanislav Martínek / Language(s): English Issue: 4/2017

This letter describes personal reflection based on the utilization of the Faff’s (2017, Pitching Research) pitch template for a reverse engineering technique in order to summarize, evaluate and properly interpret information from articles in respected scientific journals which represents key or seminal scientific research work upon which a researcher built his/her scientific work.

Intraday volatility and VaR: an evidence from the construction sector

Author(s): Krzysztof Drachal / Language(s): English Issue: 4/2016

This article presents the outcomes from the estimation of the multiplicative component GARCH model for intraday data from the construction sector in Poland. This model is a recent modification of a well-known in finance GARCH model, which can deal with tick data. It is found that all the considered stocks from the construction sector follow very similar patterns as financial time-series. It is a non-trivial result, because when comparing with other estimations (in particular, those not differentiating between various economy sectors) different outcomes on volatility patterns can be found. Secondly, the volatility pattern numerical estimation for stocks from the construction sector is quite different from what is usually found in the literature not differentiating between sectors.