Research Articles

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https://hdl.handle.net/20.500.14417/1726

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Accounting and Finance Literacy and Entrepreneurship: an Exploratory Study
(Elsevier, 2023) Trombetta, Marco; https://ror.org/02jjdwm75
The aim of this study is to investigate whether the level of financial literacy differs significantly among entrepreneurs in three European countries: Italy, Spain, and the UK. Moreover, I analyze whether financial literacy fosters or hinders entrepreneurial resilience and success. I find that the level of basic financial literacy is significantly lower among entrepreneurs in the UK. I provide an explanation based on job opportunities arguing that basic financial literacy increases the chances of survival of a business, whereas advanced financial literacy decreases it. I propose a taxonomy linking levels of financial literacy with different approaches to financial management. I conclude that a “conservative” approach to financial management (cash based, debt-averse and diversified) is more likely to guarantee survival even if it is not necessarily the best way to maximize firm value.
Anthony G. Hopwood (1944–2010)
(Elsevier Ltd, 2010) Carmona, Salvador; https://ror.org/02jjdwm75
[No abstract available]
Auditor Ethics: Do Experience and Gender Influence Auditors’ Moral Awareness?
(2020-12-16) Carrera, Nieves; Van der Kolk, Berend; https://ror.org/02jjdwm75
Purpose – The purpose of this paper is to examine how experience and gender relate to the auditors’ moral awareness. Design/methodology/approach– Hypotheses are informed by a neurocognitive approach of ethical decision-making and tested using survey data from 191 auditors of a Big Four audit firm in The Netherlands. Findings – The main findings indicate that more experienced auditors (i.e., those with more years of work experience, a higher rank, and older) show higher levels of moral awareness. This positive relationship is stronger for morally questionable situations related to accounting and auditing, compared to general business moral dilemmas. In addition, the results support the expectation that on average, female auditors have higher moral awareness than their male counterparts. Originality/value – To our knowledge, this is the first study that considers a neurocognitive approach to inform hypotheses about the antecedents of auditors’ moral awareness. The findings suggest that the involvement of experienced auditors in ethical decision-making processes may be beneficial given their enhanced ability to identify ethically disputable situations as such. Furthermore, increasing the number of females in senior positions may positively affect ethical decision-making in audit firms. Lastly, this paper presents directions for future research.
Decision comfort and student engagement in higher education
(Routledge, 2023) Roy, Sanjit ; Japutra, Arnold; Singh, Gaganpreet; Chakraborti, Rajdeep; https://ror.org/02jjdwm75
In today’s dynamic service environment,the higher education sector has maintained steady growth. The incorporation of technology in the process of teaching engages the students in the classroom,however,the students tend to indicate lower levels of engagement. Although engagement in the classroom is pivotal for student success,a robust understanding of the means to enhance student engagement is quite scarce. Thus,this study examines a robust research framework to have a better understanding of student engagement. Derived from the survey of university students,the proposed research hypotheses were tested. Results show that co-production behaviour and decision comfort are prominent drivers of student engagement. Results also show that decision comfort mediates the path between students’ goal intention and student engagement. Finally,we discuss the managerial and theoretical implications. © 2023 Informa UK Limited,trading as Taylor & Francis Group.
Do commonalities facilitate private information channels? Evidence from common gender and insider trading
(Elsevier, 2021-10) Scarlat, Elvira; Clacher, Iain; Garcia Osma, Beatriz; Shields, Karin; Spanish Ministry of Science; https://ror.org/02jjdwm75
We examine insider trading profitability and common identity between insiders and top executives. We argue that common gender and the resulting social connections influence access to private information, wherby insiders benefit from greater information-sharing with top executives of the same gender. Using a large sample of US firms between 1995 and 2016, we find higher (lower) insider trading profitability for female (male) insiders in the presence of a female CEO or CFO. We also find that, in isolation, other social and professional commonalities, such as age, ethnicity, having attended the same university or having worked at the same firm also increase insider profitability, albeit to a lesser extent. Our evidence suggests that some of these commonalities enhance the common gender effect when combined with it. We examine formal interactions and find that attending meetings and serving on committees with top executives of the same gender enables private information-sharing, consistent with gender acting as an informational channel. We also document greater clustering of insiders’ trades around the trades made by common gender top executives. Our findings are consistent with flows of private information from CEOs and CFOs to less informed common gender insiders.
Financial reporting and macroeconomics
(Taylor & Francis, 2021-02-02) Trombetta, Marco; https://ror.org/02jjdwm75
Financial Reporting (FR) is a fundamental source of information for the correct functioning of markets. Traditionally, FR is associated with the communication activity done by firms to inform stakeholders and the general public about their financial performance. In the first and second part of this essay I revisit some of the channels through which firm-level FR affects and is affected by the macroeconomic environment. However, companies are not the only economic actors that engage in a FR activity. Local and national governments produce financial reports as well. In the third part of this essay, I review how we can use the theoretical framework developed for firm-level FR to study government-level FR. I conclude by highlighting the importance of incentives as the fundamental mediator of the relationship between FR and Macroeconomics. I remark how they shape different FR environments during crisis and non-crisis periods and the importance of taking these differences into account while regulating and supervising markets.
Influence of examiners’ experience and region of interest location on semiquantitative elastography validity and reliability
(MDPI, 2021) Valera Calero, Juan Antonio; Fernández de las Peñas, César; Fernández Rodríguez, Tomás; Arias Buría, José Luis; Varol, Umut; Gallego Sendarrubias, Gracia María; Universidad Camilo José Cela; https://ror.org/02jjdwm75
Semi-quantitative elastography is a promising imaging technique to evaluate tissue stiffness differences,providing data regarding relative stiffness differences between two targets. The aims of this study were to assess the validity,inter?examiner reliability and variability of semi-quantitative elastography for calculating strain ratios (SR) in a homogeneous gel phantom in different locations within the image. A diagnostic accuracy study was performed in a homogeneous stiffness phantom. Four examiners participated (two novice and two experienced). Each examiner assessed the SR in two locations. Difference between examiners,variability of measurements,SR error and absolute error,mean error of the measurements and coefficient of variation were calculated. The agreement between examiners,validity and variability of measurements were higher in the central area than the lateral areas of the images. Thus,the experience of the examiner was relevant for the concordance of the measurements in the lateral areas of the images (SR difference of 0.14 ± 0.05; p < 0.001),but not for the central area (SR difference of 0.05 ± 0.02; p > 0.05). Our data suggested that semi?quantitative elastography is an accurate tool for assessing small magnitude stiffness differences within the same image in central areas,but the experience of the examiner is a determinant factor. © 2021 by the authors. Licensee MDPI,Basel,Switzerland.
Institutional Logics and Risk Management Practices in Government Entities: Evidence from Saudi Arabia
(Emerald Publishing Limited, 2022-09-13) Carrera, Nieves; Murr, Peter; https://ror.org/02jjdwm75
Purpose This study aims to understand how institutional logics influence the adoption and implementation of risk management (RM) practices by government entities in a non-western, developing country. Design/methodology/approach This study draws on the institutional logics perspective (ILP) to analyze a case study of a government entity in Saudi Arabia. Data were obtained from semi-structured interviews, observations and documentary evidence. Findings Findings suggest that the adoption and implementation of RM projects by Saudi governmental agencies was rooted in a traditional logic, even though the catalyst of the government for adopting a RM culture across government agencies was framed within a reform program inspired by a modernization logic. In the entity under investigation, the RM project led to an unstable situation where actors were confronted with these two competing logics. Although the project used manifestations of a modernization logic, the actions of individuals within the organization were embedded in a traditional logic. Research limitations/implications The study is based on a single case study in a specific country, limiting the generalizability of the findings. Originality/value This study provides novel evidence of the adoption and implementation of RM in governmental entities in a developing, non-western, country using ILP. Doing so enhances our knowledge about how managers struggle with competing institutional logics in an underexplored setting and enriches current accounts of key drivers and barriers of RM. It also addresses calls for a deeper understanding of the logics and managerial practices interplay in the public sector.
Integrating contemporary accounting and international business research: progress so far and opportunities for the future
(Routledge, 2024) Filatotchev, Igor ; Fisch, Jan Hendrik; Livne, Gilad; Carmona, Salvador; https://ror.org/02jjdwm75
To date,the accounting and international business (IB) research fields have been developing rather independently,although some cross-discipline fertilisation is emerging. This paper aims to illustrate the conceptual and empirical bridges between the two disciplines. Specifically,we highlight how contributions originating in either field have influenced theory and research in such diverse areas as corporate governance,risk management,taxation and strategic decision making in multinational enterprises (MNEs). Further,we identify examples where attention by accounting researchers to the IB literature has resulted in innovative research,including studies focusing on control systems and financial reporting in MNEs. Based on our discussion of the state of mutual contributions between the disciplines,we highlight various areas where future research could benefit from further integration of the accounting and IB literatures. © 2023 The Author(s). Published by Informa UK Limited,trading as Taylor & Francis Group.
Mandatory Audit Firm Rotation and Audit Quality
(Taylor & Francis, 2014-06-02) Sissons, Amanda; Trombetta, Marco; https://ror.org/02jjdwm75
In a setting where mandatory audit firm rotation has been effective for more than 20 years (i.e., Italy), we analyse changes in audit quality during the auditor engagement period. In our research setting, auditors are appointed for a three-year period and their term can be renewed twice up to a maximum of nine years. Since the auditor has incentives to be reappointed at the end of the first and the second three-year periods, we expect audit quality to be lower in the first two three-year periods compared to the third (i.e. the last) term. Assuming that a better audit quality is associated with a higher level of accounting conservatism, and using abnormal working capital accruals (AWCA) as a proxy for the latter, we find that the auditor becomes more conservative in the last three-year period, i.e. the one preceding the mandatory rotation. These results are confirmed using Basu’s (1997) timely loss recognition model. In an additional analysis, we use earnings response coefficients as a proxy for investor perception of audit quality, and we observe results consistent with an increase in audit quality perception in the last engagement period.
Museums, Exhibition Discourses and Conflicts in Vietnam
(Museu d'Art Contemporani Vicente Aguilera Cerni de Vilafames, 2022) Nualart, Cristina; https://ror.org/02jjdwm75
Since its inception,the history of the museum as an institution has manifested various displays of power that have caused museums themselves to become pawns in the game of persuasive dynamics so typical of soft power. This article introduces the transformations in the use of museums as an indoctrinating tool that have taken place in Vietnam since it was a colonized country,during war conflicts,and up to the present moment marked by an authoritarian government and a weak civil society. © 2022,Museu d'Art Contemporani Vicente Aguilera Cerni de Vilafames. All rights reserved.
Small is big! The role of 'small' audits for studying the audit market
(FEA, 2018) Trombetta, Marco; Carrera, Nieves; https://ror.org/02jjdwm75
[No abstract available]
The dynamic of financial crises and its non-monotonic effects on earnings quality
(Elsevier, 2014-05-01) Imperatore, Claudia; Trombetta, Marco; https://ror.org/02jjdwm75
Despite the wealth of research examining earnings quality and earnings management, we still have much to learn about the effects of macroeconomic factors on accounting discretion’s decisions; the recent financial crises may be one of such factors. Nevertheless, the extant literature is inconclusive about the direction of the relationship between earnings quality and economic downturn. In this study, we focus on the extent to which organizational survival may be an objective of earnings management. In this manner, we add to research considering earnings target as an objective of earnings manipulation. Furthermore, our results suggest that these objectives likely change as crisis becomes worse. Consequently, we argue that the relationship between financial crises and earnings management is non-monotonic. Earnings management decreases when the intensity of the crisis is low, while it increases when the crisis is acute.
The Effects of Auditor Social and Human Capital on Auditor Compensation: Evidence from the Italian Small Audit Firm Market
(Taylor & Francis, 2019-07-29) Pietro A., Bianchi; Trombetta, Marco; Carrera, Nieves; https://ror.org/02jjdwm75
This study examines whether social and human capital influence the compensation of individual auditors in the small audit firm market. We employ a sample of Italian auditors and use measures from the network and auditing literatures to capture their professional connections, representing social capital, and their industry expertise, representing human capital. Our findings show a positive and economically meaningful association between these individual attributes and auditor compensation. We run several tests to address potential endogeneity issues in our research design. Our results suggest that, in the small audit market, clients perceive as valuable those auditors with higher social and human capital, and as a result, are willing to pay a premium for these specific auditor attributes.
The role of financial aid in college performance: the importance of class attendance
(Universidad Politecnica de Valencia., 2023) Gabaldón, Patricia; Sivatte, Isabel de; https://ror.org/02jjdwm75
We use Social Identity Theory (SIT) and Tinto's (1975) theoretical framework on college dropout to argue how the provision of financial aid relates to undergraduate students' performance. Financial aid enables economically less favored students to pursue high quality university education achieving upward social mobility. We conduct this study using archival data of 4 cohorts of business administration undergraduate students of an international,elite university in Europe. We find that financial aid recipients obtain a higher first-year GPA than non-recipients. This positive relationship is partially mediated by class attendance. Financial aid recipients attend more classes,which also enhances their GPA. Moreover,unexpectedly,we find that the relationship between the amount of aid received and GPA is non-linear,and that merit-based aid and need-based aid increase students' GPA in a similar manner. © 2023 International Conference on Higher Education Advances. All rights reserved.
Using the Analytic Hierarchy Process to Assess the Impact of Internal Control Weaknesses on Firm
(Creative Decisions Foundation, 2020-08-28) Wilford, Amanda; Bodin, Lawrence; Gordon, Lawrence
Since the passage of the Sarbanes-Oxley Act (SOX) of 2002, many studies have examined the impact of material weaknesses in internal control systems (MWICS) on firm performance. Overall, these studies indicate that a negative association exists between poor internal control and firm performance. Prior research suggests that the above noted association between internal control and firm performance should be affected by both the actual number and the different types of MWICS. However, this stream of research has focused on using a binary measure for internal control and has not considered the combined impact that the different types of MWICS may have on firm performance. In this study, we create and introduce a new internal control index, derived from the Analytic Hierarchy Process (AHP). We then show that more information regarding the impact of MWICS can be obtained through our AHP index measure as opposed to the binary measure that is commonly used. These findings have important implications for a firm’s stakeholders (e.g., managers, stockholders, creditors, financial analysts, employees, and auditors).
When do governments "go dark"? Evidence on governments' disclosure choices in periods of uncertainty
(Taylor & Francis, 2022-10-20) Columbano, Claudio; Trombetta, Marco; Agencia Estatal de Investigación; https://ror.org/02jjdwm75
We examine the effect of uncertainty shocks on the level of fiscal guidance – the guidance issued by governments on the expected evolution of the fiscal and economic outlook. Because uncertainty makes governments’ expectations less precise but potentially more valuable to users, we hypothesize that a disclosure dilemma leads governments to balance a higher demand for guidance with a higher probability of issuing inaccurate forecasts. Using natural disasters to randomize uncertainty shocks in our sample, we find that on average, governments issue less guidance in periods of uncertainty. The effect is driven by a reduction in the number of forecasts on the future evolution of balance sheet items, but only when governments have low refinancing needs and face a relatively quiet bond market. Instead, governments that maintain a stable level of guidance in periods of uncertainty appear to cater to coercive isomorphic pressures stemming from creditors. We further document that the relative ‘transparency’ of governments in periods of uncertainty is negatively related to indicators of fiscal reporting quality. Collectively, the evidence indicates that in the public sector, uncertainty leads to a trade-off between disclosure quantity and quality.

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