Discretionary Disclosure in Interim Financial Reports of Listed Companies in Vietnam

2019 ◽  
Author(s):  
Cuong Huu Nguyen ◽  
Ngoc Nhu Quynh Duong
Keyword(s):  
Listed Companies ◽  
Financial Reports ◽  
Discretionary Disclosure

scholarly journals Factors Influencing Auditor Independence among Listed Companies in Nigeria: Generalized Method of Moments (GMM) Approach

2017 ◽  
Vol 9 (8) ◽  
pp. 191 ◽  
Author(s):  
Mary Kehinde Salawu
Keyword(s):  
Method Of Moments ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Secondary Data ◽  
Audit Fees ◽  
Listed Companies ◽  
Positive Influence ◽  
Auditor Independence ◽  
Financial Reports ◽  
Factors Influencing

The study examines the factors influencing auditor independence among listed companies in Nigeria. A sample of 65 firms out of the 194 listed on the Nigerian Stock Exchange (NSE) were purposively selected for analysis, these comprise 14 money deposit banks (financial), 1 mortgage bank and 50 non-financial firms. Secondary data were employed for the study and were sourced from the audited financial reports of sampled companies and fact book of the Nigerian Stock Exchange between the periods of 2006 and 2013. Data were analysed using descriptive statistics and Generalised Method of Moments (GMM). Preliminary tests were carried out such as Sargan test, Arellano-Bond Serial Correlation Test among others. The study revealed that Big4, audit tenure, profitability, leverage and inventory with account receivable had negative significant impact, which can impair auditor independence, while size of the firms and loss had positive influence on auditor independence in Nigeria. Also, the square root of the number of subsidiaries was positively related to auditor independence, but not significant and the total number of subsidiaries had positive influence on auditor independence but not significant. These results implied that the two variables can increase the complexity of the audit and, consequently, a rise in audit fees expect in their presence. This will in turn reduce auditor independence. The study therefore recommended that joint audit be adopted and audited tenure be reviewed. The findings of the study would enable management, regulators, investors and other stock market participants to play their unique and important roles in enhancing auditor independence in Nigeria.

scholarly journals THE IMPACT OF OWNERSHIP STRUCTURE IN PROMOTING CONTINUITY - APPLIED STUDY OF A SAMPLE ON LISTED COMPANIES IN IRAQI STOCK EXCHANGE

2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Amer Mohamed Salman Al-Janabi ◽  
Hassnain Kadhem Ojah
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Research Problem ◽  
Listed Companies ◽  
Specific Class ◽  
Control Environment ◽  
Financial Reports ◽  
Applied Study ◽  
Corporate Governance Mechanisms ◽  
The Impact

The research aims to diagnose the property structure for a sample of listed companies shares in the Iraq Stock Exchange as well as determining the ability of the property structure in the continuity of the company, as the research problem is the effect of the structure of ownership of the corporate sample study in promoting continuity of companies? The research assumed a significant impact of the structure of ownership in enhancing the continuity of the sample of the research, the research reached that the diversity of the property structure is centralized through it is part of corporate governance mechanisms, as it is responsible for specific policies and decisions, which in turn has a solid control environment As well as the powers of the protection of shareholders, as well as the diversity of ownership structure leads to the protection of the interests of economic unity and the interests of all equity holders through that decisions do not have a specific class interests at the expense of the rest of the stock campaign, as well as non-continuity It is the results of many behaviors and non-right decisions and decisions of the ownership structure. The discovery of those factors and indicators contributes to avoiding non-continuation of the samples of the research sample. Those who have 5% stake through special statements are discriminated with financial reports to clearly identify the diversity of the property structure as well as account monitors should give an indication. The landmarks are clear in their reports and their views are clearly and impressed with regard to the imposition of continuity of economic units listed on the Iraq Stock Exchange.

FALSE FINANCIAL STATEMENTS: CHARACTERISTICS OF CHINA'S LISTED COMPANIES AND CART DETECTING APPROACH

2008 ◽  
Vol 07 (02) ◽  
pp. 339-359 ◽  
Author(s):  
BELINNA BAI ◽  
JEROME YEN ◽  
XIAOGUANG YANG
Keyword(s):  
Regression Tree ◽  
Financial Statements ◽  
Listed Companies ◽  
Statistical Technique ◽  
International Perspective ◽  
Classification And Regression Tree ◽  
Superior Performance ◽  
Financial Reports ◽  
Detection Techniques ◽  
Logit Regression

False Financial Statements (FFS) have long been a serious problem in China and other Asian countries, which significantly dampen the confidence of the investors. Regardless of listed companies or non-listed companies, the percentage of financial statements that contained false information is quite high, which is one of the major reasons why China stock markets moved in the opposite direction towards its wonderful economic growth over the past few years. The objective of this research is to introduce one statistical technique — Classification and Regression Tree (CART), to identify and predict the impacts of FFS. We survey financial statements manipulation tricks, FFS indicators and FFS detection techniques from both China and international perspective, and further look into ten listed companies with known FFS history in China; combining these findings, we propose key indicators to work with CART. Our analysis includes 24 false financial reports, and 124 non-false financial reports. We use CART to develop two FFS detecting models: CART without industry benchmark and CART with industry benchmark. For supporting comparison, we also build a Logit regression which is a commonly used technique in FFS detecting. We find that CART is effective in distinguishing FFS from non-FFS. Both CART models achieve better accuracy in identifying fraud cases and making predictions than Logit regression does, and CART with industry benchmark is slightly better than CART without benchmark, but it does not always have superior performance. Our CART model also tries to capture the indicators and their combinations that could reflect firms with high possibility of FFS in China.

4. Financial reports of listed companies

2014 ◽  
Author(s):  
Christopher Nobes
Keyword(s):  
Annual Report ◽  
Balance Sheet ◽  
Listed Companies ◽  
Financial Statement ◽  
Financial Assets ◽  
Financial Reports ◽  
Income Statement ◽  
Tangible Assets ◽  
The Difference ◽  
Accounting Ratios

‘Financial reports of listed companies’ considers the components of an annual report and the types of financial statement that companies generally provide: balance sheet, income statement, statement of changes in equity, and cash flow statement. It addresses the following questions: what are assets and how are they measured? What is the difference between depreciation and impairment? Why are various expected expenses and losses not accounted for as liabilities? How can an investor decide which company to lend to or buy shares in? How could managers use accounting to mislead investors? Tangible assets, intangible assets, and financial assets are defined along with liabilities and accounting ratios.

scholarly journals Mandatory Audit Firm Rotation for Listed Companies: The Effects in the Netherlands

2020 ◽  
Vol 21 (4) ◽  
pp. 937-966
Author(s):  
Bas de Jong ◽  
Steven Hijink ◽  
Lars in ’t Veld
Keyword(s):  
The Netherlands ◽  
Public Interest ◽  
Audit Quality ◽  
Audit Fees ◽  
Listed Companies ◽  
First Year ◽  
Financial Reports ◽  
Audit Firm ◽  
Negative Effect ◽  
Mandatory Audit Firm Rotation

AbstractThe Audit Regulation was adopted in 2014 to address many of the perceived failings in the market for statutory audits. It introduced mandatory audit firm rotation for public-interest entities, including listed companies, as of 17 June 2020/2023. Mandatory audit firm rotation was also considered by the Dutch legislator in 2012. Therefore, many Dutch listed companies had already switched audit firm in anticipation of the national requirement. In this article, we investigate the effects of mandatory audit firm rotation in the Netherlands by examining the financial reports of Dutch listed firms over the financial years 2012–2016 and by conducting a survey among stakeholders. We conclude that there is broad support for mandatory audit firm rotation in the Netherlands. Although mandatory audit firm rotation was seen as controversial at the time of adoption, it is now considered desirable by various stakeholders, including auditors themselves. However, mandatory audit firm rotation appears to have had some adverse effects. Most notably, our study shows a higher probability of errors in first year audits. The discount in audit fees provided by audit firms to lucrative larger public-interest entities for first year audits—the trophy client effect—may exacerbate the negative effect on audit quality. The Audit Regulation’s goals to improve the market for statutory audits have not been met so far.

scholarly journals DE JURE HARMONIZATION OF FINANCIAL REPORTING FOR LISTED COMPANIES: EVIDENCE FOR SELECTED CEE COUNTRIES

2021 ◽  
Vol 6 (1) ◽  
pp. 137-146
Author(s):  
Dijana Perkušić ◽  
◽  
Ivica Pervan
Keyword(s):  
Financial Reporting ◽  
Listed Companies ◽  
Influential Factors ◽  
Reporting Standards ◽  
Regulatory Requirements ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Country Level ◽  
Eu Integration ◽  
The Eu

Globalization of business and free flow of capital resulted in strong demand for comparable financial reports worldwide. An important element of achieving de facto harmonization of financial reporting is de jure harmonization, i.e. harmonization of regulatory requirements on the country level. Although more than 100 countries have a requirement for use of IFRS (International Financial Reporting Standards) for listed companies, de facto harmonization is still an ongoing process. De facto harmonization is affected by many influential factors, among which de jure harmonization represents one of the most important factors. For the purpose of the study, the authors developed an index of de jure harmonization (IDJH) based on the EU regulatory framework and evaluated its value for 5 CEE countries (Croatia, Bosnia & Herzegovina, Montenegro, Slovenia and Serbia). Empirical findings reveal significant differences in de jure harmonization, related to the country's status in relation to EU integration processes. Keywords: de jure harmonization, financial reporting, CEE countries

scholarly journals Disclosure of Voluntary Accounting Ratios by Malaysian Listed Companies

2018 ◽  
Author(s):  
Azrul Bin Abdullah ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Voluntary Disclosure ◽  
Financial Analysis ◽  
Listed Companies ◽  
Annual Reports ◽  
Fundamental Importance ◽  
Company Performance ◽  
Financial Reports ◽  
Using Data ◽  
Accounting Ratios ◽  
Corporate Annual Reports

Accounting ratios are believed to be of fundamental importance in financial analysis, and therefore are useful addition to financial reports. This paper examines the reporting of voluntary accounting ratio by Malaysian companies in corporate annual reports. Drawing on agency and signaling theories, this paper explores whether associations exist between company performance and voluntary disclosure of accounting ratios. In particular, associations are tested between the extent of ratio disclosure and company performance (namely profitability, liquidity, leverage, and company efficiency), size and industry. Six hypotheses are tested using data collected from 2003 annual reports of 100 Malaysian listed companies. This paper provides evidence that the extent of voluntary ratio disclosure is low; and size, industry as well as liquidity significantly influence the reporting of ratios in corporate annual reports. The implications of these findings are discussed.

scholarly journals Going concern in the financial reports of listed companies during the COVID-19 pandemic – the results of an empirical study

2021 ◽  
Vol 45 (3) ◽  
pp. 9-28
Author(s):  
Ewa Chrostowska ◽  
Katarzyna Koleśnik
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
Research Approach ◽  
Financial Reports ◽  
Going Concern ◽  
Warsaw Stock Exchange ◽  
Sector Analysis ◽  
The Subject ◽  
The Impact

Purpose: The objective of this article is to assess how many entities have faced going concern problems and to identify what uncertainties may affect a going concern, especially during the COVID-19 pandemic. Methodology/research approach: The subject of the research was financial reports of com-panies listed on the main market of the Warsaw Stock Exchange in the following sectors: clothing and cosmetics, recreation and leisure, and transport and logistics. Thirty-three (out of 37) reports for the first half of 2020 were examined. We analysed the content of full ver-sions of the descriptive parts of financial statements, reports on the auditor’s review and management comment letters. Results: Nearly half of the surveyed entities that declared they were a going concern dis-closed going concern uncertainties. The pandemic affected the scope of disclosures present-ed in the reports. The variety of presentation styles and the selectivity of the place of the disclosure may hinder stakeholders when drawing conclusions. Research limitations/implications: Only three sectors were examined, and the sector analysis was conducted only in listed companies with complete and available reports. We analysed half-yearly reports that were reviewed by statutory auditors. The reports were analysed early in the pandemic. The article may be an inspiration for further research, including comparative research, in companies from the same and other sectors. The issue is vital, all the more so as the impact of the pandemic may change over time. Originality/Value: The article is a practical study of going concern disclosures during the pandemic. The study reveals the multifaceted nature and complexity of the issues related to continuation assessment.

scholarly journals Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana

2019 ◽  
Vol 11 (9) ◽  
pp. 29
Author(s):  
Joseph Mbawuni
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Listed Companies ◽  
Sub Saharan Africa ◽  
Financial Reporting Quality ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Sub Saharan

The adoption of International Financial Reporting Standards (IFRS) in Ghana is expected to improve the quality of financial reporting among companies in Ghana. This paper assesses the extent to which financial reports of companies listed on the Ghana Stock Exchange (GSE) meet financial reporting quality (FRQ) dimensions of IFRS. It was a descriptive study that employed two experienced professional chartered accountants who practice as independent auditors to use FRQ criteria to assess financial reports of 20 purposively selected companies listed on GSE for 2012 and 2013. Given the high inter-rater reliability (r = .96, 95% C.I., p < .0001), the findings indicate that, overall, FRQ of the listed companies meet FRQ standards by 56.48%. Generally, the financial reports were 60.95% faithfully represented, 51.01% relevant, 50.10% understandable, 40.09% comparable and 19.75% timely audited (or 80.25% untimely). Fundamental FRQ characteristics were more prevalent than enhancing FRQ. Poorly rated FRQ areas were in the use of historical cost as measurement basis, no use of graphs and tables to clarify information, no inclusion of comprehensive glossary, ratios and index, no information on adjustment in past accounting figures for future decisions, and no comparison of current and previous accounting periods and with those of other firms. The study concludes that FRQ of the listed companies is moderate but needs considerable improvement. Implications to theory, practitioners, policy makers and industry regulators are discussed. This study fills the dearth of empirical research in FRQ in IFRS-compliance companies in Sub-Saharan Africa in general and Ghana in particular.

scholarly journals The disclosure of events after the reporting period. The example of listed companies from selected European countries

2020 ◽  
Vol 109 (165) ◽  
pp. 139-156
Author(s):  
Małgorzata Szulc ◽  
Paweł Zieniuk
Keyword(s):  
Empirical Research ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
European Countries ◽  
Stock Exchanges ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Warsaw Stock Exchange

Purpose: The aim of this article is to present a practical study of disclosures of events after the reporting period in the financial reports of listed companies from selected European countries. The paper presents the results of empirical research based on the source material in the form of financial statements for the year 2018 of listed companies included on the following stock exchange indices: DAX, PSI-20, OMX25, BUX, WIG20, which comprise companies listed on the stock exchanges in Germany, Portugal, Denmark, Hungary and Poland. Methodology/approach: The research sample includes 110 companies. Content analysis of full versions of individual financial statements was performed. Findings: The results show that listed companies comply with the International Financial Reporting Standards regarding the disclo-sure of events after the reporting period. The occurrence of such events in the business practice of com-panies listed on the Warsaw Stock Exchange is much more frequent than in other European countries. The results of the study also present the diversity of events disclosed by respective companies included in the sample after the reporting period. Originality/value: The research allowed us to compare the scope of financial reporting disclosures of events after the reporting period in companies listed on the Warsaw Stock Exchange and in other European companies. Comparisons of this kind have not yet been carried out in international empirical research, which makes this article all the more valuable.

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