Accounting Research Journal

Purpose This paper aims to explore the relationship between the economic value added (EVA) and the working capital efficiency (WCE) of the listed firms in India. Design/methodology/approach This paper uses annual data of 401 listed companies for the period 2012–2019. Furthermore, the dynamic panel data regression model was used to investigate the relationship between the variables of interest. Findings The results reveal that the net trade cycle (NTC) is significantly and negatively associated with listed firms’ economic value in India, indicating that a shorter NTC generates higher EVA for Indian firms. The authors further explore the association between individual components of the NTC with EVA. The authors also found that an inverse, and significant relationship exists between EVA and the individual components of the NTC. The findings also reported a meaningful relationship between EVA and control variables except for leverage and age. For listed firms, the results suggest that sales growth and firm size are crucial factors driving firms’ EVA. Practical implications Higher WCE enhances shareholder value creation, forming positive stakeholders’ expectations toward the company. Originality/value Over the years, many studies have been conducted to determine the relationship between WCE and traditional measures of firms’ profitability. However, hardly any study finds out the impact of WCE on the value-based measures of firms’ performance. This study fills the gap in the existing literature by analyzing the impact of WCE on firms’ EVA.

Prince Bhatia

Rahul Kumar

Subir Chattopadhyay

Ritesh Kumar Dubey

Economic value added and working capital efficiency linkages: an Indian context

经济增加值与营运资本效率的关联：印度背景下的研究

Purpose – This paper aims to propose the application of the Crime Triangle of Routine Activity Theory to fraud events as a complement to the universally accepted Fraud Triangle. Design/methodology/approach – The application of the Crime Triangle is illustrated using scenarios of asset misappropriations by type of perpetrator: external perpetrator, employee, management and the board and its governing bodies. Findings – The Crime Triangle complements the Fraud Triangle’s perpetrator-centric focus by examining the environment where fraud occurs and the relevant parties that play their role in preventing fraud or not playing their role, and thus, allowing the occurrence of fraud. Applying both triangles to a fraud event provides a comprehensive view of the fraud event. Research limitations/implications – The scenarios are limited to asset misappropriations with one perpetrator. Future research can apply both triangles to different types of fraud and cases where perpetrators collude to commit fraud. Practical implications – This paper maps the Crime Triangle to the Fraud Triangle to provide forensic accounting practitioners and researchers with a comprehensive perspective of a fraud event. This comprehensive perspective of fraud is the starting point to designing fraud risk management strategies that address both the perpetrator and the environment where the fraud event occurs. Originality/value – This paper is the first to propose the application of the established Crime Triangle environmental criminology theory as a complement to the Fraud Triangle to obtain a comprehensive perspective of a fraud event.

Grace Mui

Jennifer Mailley

A tale of two triangles: comparing the Fraud Triangle with criminology’s Crime Triangle

两个三角形的故事：比较舞弊三角形与犯罪学中的犯罪三角形

Purpose COVID-19 induced uncertainty in the firms’ business transactions, financial markets and product-market competition, causing a severe organizational legitimacy crisis. Using the organizational legitimacy perspective and agency theory, this paper aims to study the relationship between prior corporate social responsibility (CSR) activities, monitoring cost (MC) and firm performance. Design/methodology/approach This study uses a quarterly panel (16,924 firm-quarter observations from 61 countries for CSR and 53,345 firm-quarter observations from 55 countries for MC) for 14 quarters from January 2018 to June 2021. This study uses panel fixed-effect regression models to estimate the effect of CSR activities and MC (measured as audit fees) on firm performance during the COVID-19 period. Findings This study finds a U-shaped relationship between CSR and firm performance. This relationship is strengthened during COVID-19. In contrast, this study finds an inverted U-shaped relationship between firm MC and firm performance. However, this relationship is weakened during the pandemic. Originality/value This study contributes to theory and practice on maintaining organizational legitimacy and reducing agency costs during the pandemic. This study shows that firms’ prior legitimacy-gaining practices, such as CSR activities and MC, provide an opportunity to increase firm value. To balance agency costs and legitimacy benefits, firm managers also need to identify the optimal level of CSR activities and MC.

Sandeep Yadav

Jagriti Srivastava

CSR, monitoring cost and firm performance during COVID-19: balancing organizational legitimacy and agency cost

Purpose The purpose of this paper is to provide a qualitative model in the field of factors affecting auditors’ judgment and decision-making. The current research follows a descriptive survey method. Design/methodology/approach A survey method was used to conduct this research, with a questionnaire as the primary tool. The statistical population consists of auditors with extensive knowledge and opinions on the research problem and its theoretical foundations. A sample of eight auditors was selected using the snowball sampling method. Findings The research results indicated that factors influencing auditors’ judgment and decision-making include reviewing audit reports from past periods, the knowledge and expertise of audit partners, input from the audit team, understanding social, cultural, political and economic environmental issues, auditor independence, technical and specialized skills of auditors, increasing experience, knowledge of business owners’ activities, rising audit fees and inhibiting forces in auditors’ judgment and decision-making. These inhibiting forces include lack of client knowledge, emotions, mental states, ethical considerations, business unit ownership structure, complexity of reviewed unit activities, state-owned business unit ownership, lack of understanding of employer activities and lack of expertise in the employer’s industry. Practical implications The model presented in this research aids in enhancing and refining the judgment and decision-making of independent auditors, resulting in more favorable financial reports for report users. Additionally, the theory developed through this research method can lead to the formulation of hypotheses that future researchers can test. Originality/value Auditor judgment is a vital aspect of independent audits, emphasized in auditing standards and professional codes of conduct.

Kazem Shamsadini

Hadis Javanmard

Zohier Morady

Qualitative modeling of factors affecting auditor’s judgment and decision-making

审计师判断与决策影响因素的定性建模

Purpose This study aims to delve into the intricate dynamics within local government authorities in Ghana, exploring the mediating role of political interest in the relationship between internal control systems and financial management. Design/methodology/approach Using a hypothesized model grounded on the accountability theory and survey data from 701 respondents across local government authorities in Ghana, this study used Partial Least Squares Structural Equation Modeling as the data analysis approach. Findings The findings indicate that internal control systems have a positive influence on financial management. In addition, political interest was found to significantly mediate the relationship between internal control systems and financial management. Research limitations/implications The study was, however, limited by the reliance on survey data obtained from the respondents. Although this study used survey data, it was not feasible to cover the entire country because this study was constrained by resources and time. Future studies may therefore explore same linkages by considering the entire country and adding other moderating variables to examine the nexuses. Future research could explore the subcomponents of internal control systems, including the control environment, control activities, risk assessment, monitoring of controls and information and communication in financial management. This would offer a nuanced understanding of how each dimension contributes to effective financial management. Practical implications This study offers two crucial contributions from a practical standpoint. This is accomplished by first allowing practitioners and decision-makers to understand the effects of political interest on organisation’s internal control system and financial management. This information can help practitioners and policymakers develop better systems that will reduce the mediating effects of political interest on the linkage between the internal control system and financial management in the local government authorities. In addition, policymakers will be better informed on how to enact legislation, specifically including sections of autonomous operations by these public agencies in the country, which can be undermined by external pressures or the ruling party. Originality/value To the best of authors’ knowledge, this research is the first to investigate such a phenomenon in a developing country context, such as Ghana, and it provides insights into why some local government authorities with seemingly robust internal control systems struggle with financial management issues.

Abubakar Gbambegu Umar

Ibrahim Osman Adam

Muftawu Dzang Alhassan

Abdul Salam Abdallah

Joshua Nterful

Mediating role of political interest on effects of internal control systems on financial management in local government authorities in Ghana

加纳地方政府当局内部控制系统对财务管理影响中政治兴趣的中介作用

Purpose This study aims to provide a framework for the interaction of blockchain technology, the audit process and International Financial Reporting Standards (IFRS). Design/methodology/approach This study was conducted in three phases. In the first phase, a meta-synthesis method was used until 2020. Out of 87 papers, a total number of 15 were selected, and 72 were excluded after an initial screening. In the second phase, 11 interviews were held with experts with sufficient experience and expertise in blockchain technology, accounting and auditing. These interviews were held between 2020 and 2021. The sampling was purposive (targeted) in type, along with snowball sampling. In the third phase, a combination of questionnaire-based method and the fuzzy Delphi method was used. The research population for this phase consisted of accounting professors, members of the Iranian Association of Certified Public Accountants and accounting and technology professionals. Following the selection of the Delphi panel, 35 questionnaires were collected between 2021 and 2022 for analysis. Findings The results showed that in line with the interaction of blockchain technology, audit process and IFRS, 52 indicators were confirmed in eight components. Moreover, “Verifiability,” “Timeliness” and “Predictive value” were the most influential factors, respectively, according to the conceptual model. In addition, higher average scores of experts’ views were related to “Transparency audit reports” and “Increasing the quality of the auditor’s judgment”, respectively. Originality/value Blockchain is a complex subject, and there has been very little published research on the intersection of IFRS and blockchain technology. It is crucial for the audit profession and technology professionals to focus on the interaction of blockchain technology with the qualitative characteristics of information. This is an area that has not been thoroughly researched yet. The interaction of blockchain technology, improvements in the audit process and adherence to IFRS is a significant development in accounting and auditing.

Arash Arianpoor

Seyed Abbas Borhani

The interaction of blockchain technology, audit process, and the International Financial Reporting Standards

区块链技术、审计过程与国际财务报告准则的相互作用

Purpose The purpose of this study is to investigate the essential analytical skills required by accounting students to succeed in a rapidly evolving data-driven job market. Specifically, the study explores the role of data analytics, visualisation and software proficiency (e.g. Excel, Power BI) in the contemporary Australian accounting industry. The scope extends to providing recommendations for academia, professional bodies and employers on how accounting education can better align with the dynamic needs of the business environment by integrating these skills into curricula and professional development programmes. Design/methodology/approach Data was collected from Australian job listings incorporating accounting and data analytics tasks from popular job advertisement websites such as Seek, Indeed and Monster. Using the keyword “Data Analyst”, information was gathered on skills demanded, technology proficiency, industry sectors, professional qualifications and salary expectations. The data set comprised 73 observations across various job requirements and characteristics variables. Findings Critical analytical skills sought by accounting professionals in the current job market include extracting insights from big data, solving complex business problems, effective communication and data visualisation. Proficiency in tools like Microsoft Excel, SQL and Power BI is paramount. Originality/value This study enriches the literature by providing comprehensive insights into the contemporary demands for accounting analytics skills. It highlights the importance of integrating technology into accounting education and the varying skill requirements across industries. Additionally, it offers implications for professional qualifications and underscores the necessity for continuous monitoring and adaptation of accounting curricula to meet evolving industry needs.

Saeed Askary

Davood Askarany

Analytical skills for accounting students in a data-driven job market: Australian evidence

数据驱动型就业市场中会计学生的分析技能：澳大利亚的证据

Purpose The purpose of this study is to explore the quality of research work done in behavioral accounting through bibliometric analysis so that biases can be spotted and implications can be drawn. Design/methodology/approach The most recent papers on a given topic – behavioral accounting in this study – are gathered, assessed and analyzed using a systematic literature review approach, which is a rigorous process. Books, scientific publications and conference papers were used to discover, compile and synthesize pertinent information (Garca, 2013; Snyder, 2019). In this study, the authors used an iterative cycle methodology, which entails selecting pertinent keywords, conducting a literature search in the database of choice and then conducting the analysis. Findings Using bibliometric analysis, this study offers a fresh viewpoint on fundamental behavioral accounting concepts. The results suggest that important areas in the relevant behavioral accounting disciplines are changing, with important ramifications for academics and practitioners to better understand prospect theory and social identity theory. Research limitations/implications Researchers should parameterize their outputs to make it easier to synthesize the state of the art in behavioral accounting, which would advance the subject. Practical implications The study has important policy implications because it shows that decision-makers are increasingly focused on creating ethical and open accounting practices, which are essential for building improved accounting practices in the Big Data era. Social implications It is elementary in and of itself to recognize that accounting data are an outcome and a consequence of human behavior. The study itself makes a case for the social ramifications of this kind of study. Originality/value The study offers a comprehensive bibliometric analysis of behavioral accounting research sourced from the Scopus database. It presents a curated collection of leading works in the domain, categorized by articles, authors, publications, institutions and nations. This examination provides a current snapshot of advancements in behavioral accounting and can be perceived as an evolution of previous literature reviews that relied on traditional approaches. Notably, this is the inaugural study using solely bibliometric techniques.

Abhay Singh Chauhan

Tarika Singh Sikarwar

Manisha Raj

Trends and patterns in behavioral accounting research: 53 years of bibliometric analysis

行为会计研究的趋势与模式：53年的文献计量分析

Abbreviation	ARJ
Journal Impact	2.49
Quartiles(Global)	BUSINESS, FINANCE(Q2)

ISSN	1030-9616, 1839-5465
h-index	28

Publication Information	Publisher: Emerald Group Publishing Ltd.，Publishing cycle: ，Journal Type: journal，Open Access Journals: No
Basic data	Year of publication: 2005，Proportion of original research papers: 100.00%，Self Citation Rate:8.30%， Gold OA Rate: 5.77%

Accounting Research Journal

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Economic value added and working capital efficiency linkages: an Indian context

A tale of two triangles: comparing the Fraud Triangle with criminology’s Crime Triangle

CSR, monitoring cost and firm performance during COVID-19: balancing organizational legitimacy and agency cost

Qualitative modeling of factors affecting auditor’s judgment and decision-making

Mediating role of political interest on effects of internal control systems on financial management in local government authorities in Ghana

Qualitative modeling of factors affecting auditor’s judgment and decision-making

Mediating role of political interest on effects of internal control systems on financial management in local government authorities in Ghana

The interaction of blockchain technology, audit process, and the International Financial Reporting Standards

Analytical skills for accounting students in a data-driven job market: Australian evidence

Trends and patterns in behavioral accounting research: 53 years of bibliometric analysis