Accounting and Finance Research 

About: Accounting and Finance Research is an academic journal published by Sciedu Press. The journal publishes majorly in the area(s): Stock exchange & Audit. It has an ISSN identifier of 1927-5986. It is also open access. Over the lifetime, 562 publications have been published receiving 2906 citations.

Influence of Profitability to the Firm Value of Diversified Companies in the Philippines

Abstract: The main objective of every company is to maximize the assets or firm value. Maximizing firm value is essential for a company because it means increasing the wealth of shareholders as well. This study aims to determine if there is significant influence between the company’s profile such as industry, company age and its profitability with the firm value using Tobin’s Q model. The proponents selected 86 diversified companies in the Philippines by gathering and analyzing annual financial reports on 2014 in the Philippine Stock Exchange (PSE) to obtain the objective of the study and also employed predictive correlational design. Frequency, Mean and Multiple Regression were used to determine the significant influence between the independent and dependent variables. The multiple regression reveals that of the three factors assumed to influence value of the firm using the Tobin’s Q, only profitability shows significant positive impact on the firm’s value.

Audit Committee Effectiveness and Company Performance: Evidence from Jordan

Abstract: This paper seeks to investigate the effect of audit committee characteristics on the company’s performance. The sample consists of 165 non-financial companies listed on the Amman Stock Exchange (ASE) over the period 2014-2016. The results of the study show that the audit committee size, independence and gender diversity have a significant positive relationship with firm’s performance, whereas experience and frequency of meetings has an insignificant association. The results of the study could be beneficial for managers and boards in making suitable choices about audit committee characteristics and corporate governance mechanisms to enhance the company’s performance. The study gives policy makers a better understanding of the different characteristics required of an audit committee, for incorporation in future policy preparation to protect the shareholders’ interests. The relationship between audit committee characteristics and company performance is still ambiguous. This study contributes to the literature by identifying the role of audit committee characteristics in company performance, providing evidence for the view that performance is driven by specific audit committee characteristics.

Theories and Determinants of Voluntary Disclosure

Abstract: This paper aims to discuss the theoretical aspects of voluntary disclosure in terms of its role in the economy, the theories that are usually used through the literature to explain voluntary disclosure, its determinants, and the common sources of voluntary information disclosure. Theories related to voluntary disclosure that are commonly used through the literature include agency theory, signalling theory, capital need theory, and legitimacy theory. Determinants of voluntary disclosure fall into motivations and constraints. Finally, different sources of voluntary information disclosure are addressed clarifying why the annual reports are the most preferred source of information. The paper provides a snapshot to different parties interested in voluntary disclosure including academics and practitioners. Academics would use this paper while designing empirical voluntary disclosure research. Practitioners could probably better understand companies' behaviours towards increased or decreased voluntary information disclosure.

An Empirical analysis of the determinants of greenhouse gas voluntary disclosure in Australia

Abstract: Based on a comprehensive theoretical framework, we investigate the determinants of greenhouse gas emission (GHG) voluntary disclosure of non GHG registered companies. Previous studies assessed the determinants of GHG voluntary disclosure of firms subject to environmental regulation, risk and liabilities. We also employ proxies of voluntary disclosure theory and agency theory in addition to the stakeholder theory and legitimacy theory used in prior studies. The content analysis for the period 2009 to 2011 shows a positive association between GHG voluntary disclosure, firm size and corporate governance. Further, firms with superior GHG performance are more likely to engage in discretionary disclosure, and listing status plays a significant role in GHG disclosure decision which suggests that stakeholders’ interests also determine disclosure decisions.

Investors’ Behavioural Biases and the Security Market: An Empirical Study of the Nigerian Security Market

Abstract: Behavioural biases describe a replicable pattern in perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality. This paper adopts a primary data approach to investigate the effects of behavioural biases on security market performance in Nigeria. The objectives are in twofold: one, to examine the extent of behavioural biases among security market investors in Nigeria and, to examine the effects of behavioural biases on stock market performance in Nigeria. The paper employed questionnaire as instrument and the technique of correlation with Pearson Product Moment Coefficient to analyze a survey of 300 randomly selected investors in Nigeria security market. We find strong evidence that behavioural biases exists but not so dominant in the Nigeria security market because a weak negative relationship exists between behavioural biases and stock market performance in Nigeria. The paper recommends that individual investors in the market should engage the services of investment advisors which will reduce personal biases in the management of their portfolios.