Expectation Gap Analysis in Corporate Financial Reporting Practices in India
01 Feb 2021-Management and labour studies (SAGE PublicationsSage India: New Delhi, India)-Vol. 46, Iss: 1, pp 38-58
TL;DR: In this paper, the expectation gap of the practitioners and investors on the selected four parameters regarding India's corporate reporting practices and in a curtail period of Inteface period was assessed.
Abstract: This article assesses the expectation gap of the practitioners and investors, if any, on the selected four parameters regarding India’s corporate reporting practices and in a curtail period of Inte...
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01 Jan 2005
TL;DR: In this paper, the authors investigate whether German companies that have adopted IFRS engage significantly less in earnings management compared to German companies reporting under German generally accepted accounting principles (GAAP), while controlling for other differences in earningsmanagement incentives.
Abstract: Abstract This paper addresses the question whether voluntary adoption of International Financial Reporting Standards (IFRS) is associated with lower earnings management. Ball et al. (Journal of Accounting and Economics, 36(1–3), pp. 235–270, 2003) argue that adopting high quality standards might be a necessary condition for high quality information, but not necessarily a sufficient one. In Germany, a code-law country with low investor protection rights, a relatively large number of companies have chosen to voluntarily adopt IFRS prior to 2005. We investigate whether German companies that have adopted IFRS engage significantly less in earnings management compared to German companies reporting under German generally accepted accounting principles (GAAP), while controlling for other differences in earnings management incentives. Our sample, consisting of German listed companies, contains 636 firm-year observations relating to the period 1999–2001. Our results suggest that IFRS-adopters do not present different earnings management behavior compared to companies reporting under German GAAP. These findings contribute to the current debate on whether high quality standards are sufficient and effective in countries with weak investor protection rights. They indicate that voluntary adopters of IFRS in Germany cannot be associated with lower earnings management.
533 citations
TL;DR: In this paper , the effect of the converged version of the International Financial Reporting Standards (IFRS) on the performance of the Indian-listed manufacturing firms has been investigated and the results indicated that full adoption rather than convergence could reap the benefits of the IFRS.
Abstract: PurposeThe study has endeavored to assay the nexus between the converged version of the International Financial Reporting Standards (IFRS) on the performance of the Indian-listed manufacturing firms.Design/methodology/approachThe study has randomly accessed the data of the Bombay Stock Exchange (BSE) listed Indian manufacturing firms using the Prowess IQ database. It has covered 2014–2016 as pre-IFRS and 2017–2020 as the post-IFRS convergence period. Moreover, the study has followed a longitudinal research design with cross-sectional time-series data and has used the difference-in-difference (DiD) technique to assess the effect of the IFRS convergence on firm performance (FP).FindingsThe results have indicated that the adoption of the Indian Accounting Standards (Ind AS) has unlikely reported better FP. It has concurred policy implications as full adoption rather than convergence could reap the benefits of the IFRS.Originality/valueIt has contributed to the existing body of knowledge by assaying the effect of the IFRS convergence on FP in developing economies like India using the DiD methodology. The study is an original piece of research and is free from plagiarism.
References
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Book•
01 Jan 1932
TL;DR: The instrument to be described here is not, however, indirect in the usual sense of the word; it does not seek responses to items apparently unrelated to the attitudes investigated, and seeks to measure prejudice in a manner less direct than is true of the usual prejudice scale.
Abstract: THIS paper describes a technique which has been developed for the measurement of race prejudice. This technique differs from most prejudice inventories in that it avoids the following assumptions: (a) that the individual can say, to his own or the investigator's satisfaction, "This is how prejudiced I am," and (b) that, to the extent that the individual can accurately assess his degree of antipathy, he will report honestly the findings of such introspection. Most sociologists would perhaps agree that race attitudes rarely reside on a completely articulate level. Even where the individual holds to intellectual or ideological convictions which would seem to leave no room for out-group antipathies, such do persevere. Thus, we may expect the number of Americans who honestly think themselves "unprejudiced" to be considerably larger than effective research would reveal. Moreover, the number who present themselves as unprejudiced probably exceeds considerably the number who honestly, though often inaccurately, see themselves in this light. Most indirect techniques for the measurement of attitudes have their rationale in observations such as these. The instrument to be described here is not, however, indirect in the usual sense of the word; it does not seek responses to items apparently unrelated to the attitudes investigated. We do, however, seek to measure prejudice in a manner less direct than is true of the usual prejudice scale. In our instrument we seek to measure anti-Negro prejudice. Persons are called upon to respond on social distance scales to whites and Negroes who occupy a variety of occupational positions. The measure of prejudice is derived through the summation of the differences in distance responses to Negroes as opposed to whites in the same occupations. Thus, for lack of a better label,
12,492 citations
"Expectation Gap Analysis in Corpora..." refers methods in this paper
...Further, taking into cognizance the controversy in treating the Likert scale as interval or ordinal, it has treated the scale as interval, and the purpose of the scale has remained limited to computing the composite score of EG (summated scale), as advocated by Likert (1932)....
[...]
TL;DR: The instrument to be described here is not, however, indirect in the usual sense of the word; it does not seek responses to items apparently unrelated to the attitudes investigated, and seeks to measure prejudice in a manner less direct than is true of the usual prejudice scale.
Abstract: THIS paper describes a technique which has been developed for the measurement of race prejudice. This technique differs from most prejudice inventories in that it avoids the following assumptions: (a) that the individual can say, to his own or the investigator's satisfaction, "This is how prejudiced I am," and (b) that, to the extent that the individual can accurately assess his degree of antipathy, he will report honestly the findings of such introspection. Most sociologists would perhaps agree that race attitudes rarely reside on a completely articulate level. Even where the individual holds to intellectual or ideological convictions which would seem to leave no room for out-group antipathies, such do persevere. Thus, we may expect the number of Americans who honestly think themselves "unprejudiced" to be considerably larger than effective research would reveal. Moreover, the number who present themselves as unprejudiced probably exceeds considerably the number who honestly, though often inaccurately, see themselves in this light. Most indirect techniques for the measurement of attitudes have their rationale in observations such as these. The instrument to be described here is not, however, indirect in the usual sense of the word; it does not seek responses to items apparently unrelated to the attitudes investigated. We do, however, seek to measure prejudice in a manner less direct than is true of the usual prejudice scale. In our instrument we seek to measure anti-Negro prejudice. Persons are called upon to respond on social distance scales to whites and Negroes who occupy a variety of occupational positions. The measure of prejudice is derived through the summation of the differences in distance responses to Negroes as opposed to whites in the same occupations. Thus, for lack of a better label,
6,441 citations
TL;DR: In this paper, the authors investigated the allegations of the Commission on Auditors' Responsibilities and the Securities and Exchange Commission that "low-balling" on initial audit engagements impairs auditor independence.
1,656 citations
Journal Article•
TL;DR: The differences between Lkert-type and Likert scale data are discussed and recommendations for descriptive statistics to be used during the analysis are provided and once a researcher understands the difference, the decision on appropriate statistical procedures will be apparent.
Abstract: This article provides information for Extension professionals on the correct analysis of Likert data. The analyses of Likert-type and Likert scale data require unique data analysis procedures, and as a result, misuses and/or mistakes often occur. This article discusses the differences between Likert-type and Likert scale data and provides recommendations for descriptive statistics to be used during the analysis. Once a researcher understands the difference between Likert-type and Likert scale data, the decision on appropriate statistical procedures will be apparent.
1,119 citations
"Expectation Gap Analysis in Corpora..." refers methods in this paper
...The study has referred the tool as Likert scale and accordingly has been calculated the appropriate Descriptive Statistics, that is, means for assessing the central tendency, SDs and coefficient of variations (CVs) for variability, in line with social scientists (Boone & Boone, 2012)....
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TL;DR: In this paper, the authors provide evidence on the preliminary effects of mandatory adoption of International Financial Reporting Standards (IFRS) on accounting quality for a relatively broad set of firms from 20 countries that adopted IFRS in 2005 relative to a benchmark group of firms that did not adopt IFRS matched on the strength of legal enforcement, industry, size, book-to-market, and accounting performance.
Abstract: We provide evidence on the preliminary effects of mandatory adoption of International Financial Reporting Standards (IFRS) on accounting quality for a relatively broad set of firms from 20 countries that adopted IFRS in 2005 relative to a benchmark group of firms from countries that did not adopt IFRS matched on the strength of legal enforcement, industry, size, book-to-market, and accounting performance. Relative to these benchmark firms, we find that IFRS firms exhibit significant increases in income smoothing and aggressive reporting of accruals, and a significant decrease in timeliness of loss recognition; however we do not find significant differences across IFRS and benchmark firms in meeting or beating earnings targets. Our findings contrast with findings in earlier studies which suggest that IFRS adoption leads to increased accounting quality. Our findings primarily hold for firms in strong enforcement countries which suggests that enforcement mechanisms in these countries were not able to counter the initial effects of greater flexibility in IFRS relative to domestic GAAP.
599 citations