scholarly journals The Impact of Non-Financial Stakeholders on Accounting Conservatism: The Case of Labor Unions

2012 ◽  
Author(s):  
David B. Farber ◽  
Hsin-Yi Hsieh ◽  
Boochun Jung ◽  
Han Yi
Keyword(s):  
Labor Unions ◽  
Accounting Conservatism ◽  
The Impact

scholarly journals The Impact of Non-Financial Stakeholders on Accounting Conservatism: The Case of Labor Unions'

2017 ◽  
Vol 23 (1) ◽  
pp. 1-38 ◽  
Author(s):  
Hsin-Yi (Shirley) Hsieh ◽  
이한상 ◽  
Boochun Jung
Keyword(s):  
Labor Unions ◽  
Accounting Conservatism ◽  
The Impact

Labor Unions and Accounting Conservatism

2010 ◽  
Author(s):  
David B. Farber ◽  
Hsin-Yi Hsieh ◽  
Boochun Jung ◽  
Han Yi
Keyword(s):  
Labor Unions ◽  
Accounting Conservatism

Conditional Conservatism and Audit Fees

2014 ◽  
Vol 29 (1) ◽  
pp. 83-113 ◽  
Author(s):  
Hye Seung (Grace) Lee ◽  
Xu Li ◽  
Heibatollah Sami
Keyword(s):  
Corporate Governance ◽  
Potential Benefit ◽  
Audit Fees ◽  
Accounting Conservatism ◽  
Audit Risk ◽  
Debt Contracting ◽  
Conditional Conservatism ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Impact

SYNOPSIS In this study, we examine the impact of conditional conservatism on audit fees and, more importantly, the influence of corporate governance on this relationship. Prior literature presents evidence regarding explanations for the existence and pervasiveness of accounting conservatism such as compensation and debt contracting, shareholder litigation, taxation, and accounting regulation. However, there is very limited evidence or discussion of the potential benefit of accounting conservatism on audit risk and thus audit fees, and how the potential benefit can be attenuated by corporate governance quality. Using a sample of firm-year observations over the period of 2004–2009, we provide evidence consistent with conditional conservatism and firms' commitment to such conservatism reducing their audit fees. However, our evidence shows that this reduction in audit fees is moderated by higher corporate governance quality. These results have implications for auditors, regulators, standard setters, and firms' managers. In addition, our study extends the literature on the determinants of audit fees. JEL Classifications: M41; M42; D81; D22.

Labor Unions and Product Quality Failures

2021 ◽  
Author(s):  
Omesh Kini ◽  
Mo Shen ◽  
Jaideep Shenoy ◽  
Venkat Subramaniam
Keyword(s):  
Product Quality ◽  
Labor Unions ◽  
Product Recalls ◽  
Employee Morale ◽  
Product Recall ◽  
Quality Outcomes ◽  
Panel Regressions ◽  
Broad Cross Section ◽  
Operating Leverage ◽  
The Impact

In this paper, we study the impact of labor unions on product quality failures. We use a product recall as our measure of quality failure because it is an objective metric that is applicable to a broad cross-section of industries. Our analysis employs a union panel setting and close union elections in a regression discontinuity design framework to overcome identification issues. In the panel regressions, we find that firms that are unionized and those that have higher unionization rates experience a greater frequency of quality failures. The results obtain even at a more granular establishment level in a subsample in which we can identify the manufacturing establishment associated with the recalled product. When comparing firms in close elections, we find that firms with close union wins are followed by significantly worse product quality outcomes than those with close union losses. These results are amplified in non–right-to-work states, where unions have a relatively greater influence on the workforce. We find that unionization increases firms’ costs and operating leverage and, consequently, crowds out investments that potentially impact quality. We also find some suggestive evidence that unions may compromise quality by hurting employee morale and by resisting technological upgrades in the firm. Overall, our results suggest that unions have an adverse impact on product recalls, and thus, product quality is an important dimension along which unions impact businesses. This paper was accepted by Gustavo Manso, finance.

scholarly journals The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt

2019 ◽  
Vol 14 (10) ◽  
pp. 1
Author(s):  
Hanaa A. El-Habashy
Keyword(s):  
Performance Indicators ◽  
Corporate Performance ◽  
Positive Impact ◽  
Accounting Conservatism ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Conservative Accounting ◽  
The Impact ◽  
Positive Effect

This study aims to investigate the impact of conservative accounting on corporate performance indicators of Egyptian firms. A sample of balanced data for the 40 most active non-financial companies was collected in the period 2009-2014 to test hypotheses. Panel regression models were used for data analysis. Givoly & Hayn (2000) indicator is used as a benchmark for measuring accounting conservatism. The corporate performance indicators used in this study are return-on-assets (ROA) and return on equity (ROE) representing accounting performance measures, as well as Tobin’s Q which measures market performance. The results of the research show that accounting conservatism has a significant positive impact on corporate performance indicators. This reflects the positive effect of corporate performance on shareholders that leads to a strong corporate financial position. To the best of our knowledge, no study has been conducted in Egypt as an emerging economy.

scholarly journals Accounting Conservatism And Firms’ Investment Decisions

2016 ◽  
Vol 32 (4) ◽  
pp. 1223-1236 ◽  
Author(s):  
Jungeun Cho ◽  
Won-Wook Choi
Keyword(s):  
Investment Decisions ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Financial Disclosure ◽  
Managerial Ownership ◽  
Conservative Accounting ◽  
Controlling Mechanism ◽  
The Impact ◽  
Timely Loss Recognition

This study examines the effectiveness of accounting conservatism in monitoring and controlling managers’ decision-making regarding opportunistic investment. We find that accounting conservatism is negatively associated with over-investment. This suggests that conservative accounting policies serve as an efficient monitoring and controlling mechanism for opportunistic investment decisions. We also find a stronger negative association between accounting conservatism and over-investment in firms with low managerial ownership and low ownership by foreign investors. The results of our analysis imply that the impact of timely loss recognition on over-investment is more significant in firms with high agency problems and weaker monitoring ability, and that this factor complements other governance mechanisms, thereby helping to control managers’ myopic investment decisions. We provide evidence for a role of financial disclosure in mitigating managers’ opportunistic over-investment decisions. Though managers’ over-investment decisions are motivated by private gain, which reduces firm performance and compromises investors’ welfare, limited research exists on the role of financial information in alleviating such behavior. We suggest that timely loss recognition in financial statements can serve as an effective monitoring mechanism to aid in control of managers’ myopic over-investment.

scholarly journals The Impact of IFRS Adoption on Accounting Conservatism in the European Union

2016 ◽  
Vol 6 (1) ◽  
pp. 127 ◽  
Author(s):  
Daniel Zeghal ◽  
Zouhour Lahmar
Keyword(s):  
European Union ◽  
Empirical Study ◽  
Accounting Conservatism ◽  
International Standards ◽  
Good News ◽  
The European Union ◽  
Ifrs Adoption ◽  
Accounting Model ◽  
Year 2000 ◽  
The Impact

Purpose –The purpose of this study is to analyze mandatory IFRS adoption’s impact on accounting conservatism. Design/methodology/approach – Our empirical study is conducted on a sample of 15 European countries, observed from the year 2000 to 2010. We analyze both conditional and unconditional conservatism, which we measured, respectively, by timely bad news recognition as compared to recognition of good news and discretionary accruals. Findings – The results of the empirical study confirm a significant reduction of accounting conservatism in the IFRS adoption period. This reduction is affected by the accounting model prevailing in a particular country. Moreover, the study shows a reduction of the gap between the two accounting models in the post-IFRS adoption period. Practical implications – The results obtained would be relevant for many decision makers such as investors, standard setters, IASB, European Union countries as well as those wishing to adopt International Standards. Originality/value – Our study complements and enriches the existent literature about the impact of the International Standards adoption. It dresses an important issue in a relatively long period to better assess the impact of IFRS.

The Impact Of State Reforms On Protest Against Apartheid In South Africa

2003 ◽  
Vol 8 (1) ◽  
pp. 27-50 ◽  
Author(s):  
Susan Olzak ◽  
Maya Beasley ◽  
Johan Olivier
Keyword(s):  
South Africa ◽  
Labor Unions ◽  
Asian Indians ◽  
Event History ◽  
State Repression ◽  
Black Labor ◽  
Black Africans ◽  
Event History Data ◽  
Repressive Regime ◽  
The Impact

During 1970–1985, South Africa vacillated between reform and reaffirmation of the repressive regime known as apartheid. Did these reforms slow the pace of protest, or did they facilitate protest, by intensifying discontent? Using event-history data on anti-apartheid protest we suggest that passage of reforms will increase the pace of protest while state repression will dampen it. We further hypothesize that the nature and scope of each reform would differentially affect protest by each of three official racial populations: Black Africans, Coloureds, and Asian Indians. As expected, reforms that integrated housing and jobs and reforms that legitimated the rights of black labor unions propelled protest by Black Africans against apartheid, but so did reforms that excluded Black Africans from citizenship. In contrast, relatively few reforms affected the rate of protest by Asian Indians and Coloured population groups. Finally, we found that repression decreased rates of protest significantly for all three groups.

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