scholarly journals Enterprise Crisis-Resilience and Competitiveness

2021 ◽  
Vol 13 (4) ◽  
pp. 2057
Author(s):  
Julija Bistrova ◽  
Natalja Lace ◽  
Ludmila Kasperovica
Keyword(s):  
Financial Reporting ◽  
Substantial Improvement ◽  
Financial Sustainability ◽  
Significant Discrepancy ◽  
Corporate Development ◽  
Financial Conditions ◽  
The 2008 Financial Crisis ◽  
Operating Leverage ◽  
Development And Management

Past events exert significant influence on corporate development and management behavior, thus impacting the financial sustainability of companies. Therefore, the consequences of the 2008 financial crisis and corporate tax reform introduced in Latvia in 2018 are well reflected in the financial conditions of Latvian enterprises. This study, which was conducted based on financial reporting data from 2015–2019 and aimed at the assessment of Latvian companies’ ability to survive during the crisis, revealed a substantial improvement in financial sustainability and in the efficiency of capital management, particularly visible in 2018–2019. On the other hand, the margins, which are a proxy of competitive advantage, remained at a low level, and the operating leverage level indicates the rather high riskiness of Latvian companies, which might be critical in overcoming the crisis triggered by COVID-19. The analysis also revealed that there was a large gap between the best and the worst companies. A significant discrepancy in the quality of the financial conditions was also found based on an analysis by region and industry.

scholarly journals Changing the Accounting System to Foster Universities’ Financial Sustainability: First Evidence from Italy

2019 ◽  
Vol 11 (21) ◽  
pp. 6151 ◽  
Author(s):  
Ferdinando Di Carlo ◽  
Guido Modugno ◽  
Tommaso Agasisti ◽  
Giuseppe Catalano
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Public Funding ◽  
Stability Control ◽  
Financial Sustainability ◽  
Accounting System ◽  
Recent Reform ◽  
Financial Strategies ◽  
European University

According to the European University Association, nowadays financial sustainability is one of the key challenges for Higher Education Institutions. The financial sustainability of public universities is threatened by cutbacks in public funding and by society’s growing demand for improvements to the volume and quality of services provided. A recent reform in Italy has determined that universities are required to move to accrual accounting, starting from the assumption that this system responds more effectively to issues relating to financial stability control. This paper evaluates whether the new financial reporting system is better placed to represent the universities’ conditions of financial sustainability. Moreover, specific measures have been developed to investigate which financial strategies, if any, have been adopted in Italian universities to react to the new competitive context. Working in collaboration with practitioners from the HE sector, the research team developed a framework based on specific financial ratios to assess the financial sustainability of these institutions and to analyse their financial strategies. The findings reveal that, notwithstanding some common features, there are significant variations between Italian universities and they are addressing the new challenges with a range of different approaches.

Financial Conditions, Financial Sustainability, and Intergenerational Equity in Local Governments

2018 ◽  
pp. 101-124 ◽  
Author(s):  
Francesca Citro ◽  
Giovanna Lucianelli ◽  
Serena Santis
Keyword(s):  
Quality Of Life ◽  
Local Governments ◽  
Intergenerational Equity ◽  
Financial Sustainability ◽  
Financial Health ◽  
Financial Conditions ◽  
Key Concepts ◽  
Narrative Literature ◽  
Narrative Literature Review

The chapter offers a necessary summary of the key concepts of financial conditions, financial sustainability, and intergenerational equity in local governments through a close examination of different approaches. Focusing on a narrative literature review approach, the chapter has two main aims: first, to provide evidence on how to define the terms of theoretical and practical underpinnings to represent financial conditions in local governments in order to clarify the distinctive feature of financial conditions with a particular focus on the specific measures for budgetary solvency: sustainability, flexibility, and vulnerability; second, taking into account that the link between financial sustainability and intergenerational equity seems to be under-investigated, the authors discuss what the conditions for achieving financial health are while ensuring intergenerational equity with reference to the level of citizens' quality of life.

Pengaruh Kualitas Sumber Daya Manusia, Pemanfaatan Teknologi Informasi, Dan Sistem Pengendalian Intern Terhadap Ketepatwaktuan Pelaporan Keuangan Pemerintah Desa

2018 ◽  
Vol 26 (2) ◽  
pp. 131-143
Author(s):  
Marlinawati Marlinawati ◽  
Dewi Kusuma Wardani
Keyword(s):  
Information Technology ◽  
Control System ◽  
Human Resources ◽  
Financial Reporting ◽  
Internal Control ◽  
Positive Influence ◽  
Internal Control System ◽  
Speed Up ◽  
Village Government

The purpose of this research is to know the influence between the Quality of Human Resources, Utilization of Information Technology and Internal Control System Against Timeliness of Village Government Financial Reporting at Gunungkidul Regency. This research is causative research. The population is the village government in Gunungkidul Regency, especially in Gedangsari subdistrict. Criteria of respondents in the study were to village and village apparatus. We use questionnaire to collect data. We use multiple regression with SPSS program version 16.0 to analyze data. We find that quality of human resources and internal control system have a positive influence on the timeliness of village government financial reporting. On the other hand, utilization of information technology does not influence the timeliness of village government financial reporting. These imply that the quality of human resources and internal control system can speed up the preparation of village government financial reporting.

Discretionary Accruals in Italian Private Firms and Non-Linear Bank Loan Granting

2017 ◽  
pp. 83-99
Author(s):  
Elisabetta Mafrolla ◽  
Viola Nobili
Keyword(s):  
Financial Reporting ◽  
Banking System ◽  
Regulatory System ◽  
Discretionary Accruals ◽  
Bank Loans ◽  
Bank Loan ◽  
Banking Union ◽  
Private Firms ◽  
European Banking Union

This paper investigates whether and at what extent private firms reduce the quality of their accruals in order to signal a better portrait to the bank and obtain new or larger bank loans. We measure earnings discretionary accruals of a sample of Italian private firms, testing whether new and larger bank loans are associated with a higher (lower) quality of earnings in borrowers' financial reporting. We study bank loan levels and changes and how they impact discretionary accruals and found that, surprisingly, private firms' discretionary accruals are systematically positively affected by an increase in bank loans, although they are negatively affected by the credit worthiness rating assigned to the borrowers. We find that the monitoring role of the banking system with regard to the adoption of discretionary accruals is effective only when the loan is very large. This paper may have implications for policy-makers as it contributes to the understanding of the shortcomings of the banking regulatory system. This is an extremely relevant issue since the excessive amount of non-performing loans held by Italian banks recently threatened the stability of the European Banking Union as a whole.

The Impact of Going Concern on Financial Reporting Quality: Evidence from Vietnam

2018 ◽  
Vol 34 (3) ◽  
Author(s):  
Phung Anh Thu ◽  
Nguyen Vinh Khuong
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Distress ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Viet Nam ◽  
Listed Firms ◽  
Going Concern ◽  
Debt Covenant

The investigation was conducted to contribute empirical evidence of the association between going concern and financial reporting quality of listed firms on the Vietnam stock market. Based on data from 279 companies listed on the HNX and HOSE exchanges in Vietnam for the period 2009-2015, the quantitative research. Results found that the relationship between the going concern and financial reporting quality of listed firms. Research results are significant for investors, regulators to the transparency of financial reporting information. Keywords Going concern, financial reporting quality, listed firms References Agrawal, K., & Chatterjee, C. (2015). Earnings management and financial distress: Evidence from India. Global Business Review, 16(5_suppl), 140S-154S.Bergstresser, D., & Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80(3), 511–529.Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses. Journal of Accounting and Economics, 24(1), 99–126.Charitou, A., Lambertides, N., & Trigeorgis, L. (2007a). Earnings behaviour of financially distressed firms: The role of institutional ownership. Abacus, 43(3), 271–296.Chen, Y., Chen, C., & Huang, S. (2010). An appraisal of financially distressed companies’ earnings management: Evidence from listed companies in China. Pacific Accounting Review, 22(1), 22–41Dechow, P., & Dichev, I. (2002). The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors. The Accounting Review, 77, 35-59.DeFond, M., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1), 145–176.DeFond, M.L., & Park, C.W. (1997). Smoothing income in anticipation of future earnings. Journal of Accounting and Economics, 23(2), 115–139.Dichev, I., & Skinner, D. (2004). Large sample evidence on the debt covenant hypothesis. Journal of Accounting Research, 40(4), 1091–1123.Đinh Thị Thu T., Nguyễn Vĩnh K. (2016). Tác động của hành vi điều chỉnh thu nhập đến khả năng hoạt động liên tục trong kế toán: Nghiên cứu thực nghiệm cho các doanh nghiệp niêm yết tại Việt Nam, Tạp chí phát triển khoa học và công nghệ, Quí 3, tr.96-108.Đỗ Thị Vân Trang (2015). Các mô hình đánh giá chất lượng báo cáo tài chính, Tạp chí chứng khoán Việt Nam, 200, tr 18-21.Habib, A., Uddin Bhuiyan, B., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155-180.Jaggi, B., & Lee, P. (2002). Earnings management response to debt covenant violations and debt restructuring. Journal of Accounting, Auditing & Finance, 17(4), 295–324.Kasznik, R., (1999). On the association between voluntary disclosure and earnings management. Journal of accounting research, 37(1), pp.57-81.Lu, J. (1999). An empirical study of earnings management by loss-making listed Chinese companies. KuaijiYanjiu (Accounting Research), (9), 25–35.McNichols, M.F. and Stubben, S.R., (2008). Does earnings management affect firms’ investment decisions?. The accounting review, 83(6), pp.1571-1603.Selahudin, N.F., Zakaria, N.B., & Sanusi, Z.M. (2014). Remodelling the earnings management with the appear- ance of leverage, financial distress and free cash flow: Malaysia and Thailand evidences. Journal of Applied Sciences, 14(21), 2644–2661.Skinner, D.J., & Sloan, R. (2002). Earnings surprises, growth expectations, and stock returns or don’t let an earnings torpedo sink your portfolio. Review of Accounting Studies, 7(2/3), 289–312.Sweeney, A.P., (1994). Debt-covenant violations and managers' accounting responses. Journal of Accounting & Economics, 17(3): 281-308.Trần Thị Thùy Linh, Mai Hoàng Hạnh (2015). Chất lượng báo cáo tài chính và kỳ hạn nợ ảnh hưởng đến hiệu quả hoạt động của doanh nghiệp Việt Nam, Tạp chí phát triển kinh tế, 10, tr.27-50.Trương Thị Thùy Dương (2017). Nâng cao chất lượng báo cáo tài chính công ty đại chúng, Tạp chí tài chính, 1(3), tr.55-56.Uwuigbe, Ranti, Bernard, (2015). Assessment of the effects of firm’s characteristics on earnings management of listed firms in Nigeria, Asian Economic and Financial Review,5(2):218-228.

Enriching AIS Courses With SOX Compliance Activities

2010 ◽  
Vol 5 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Joann Segovia ◽  
Carol M. Jessup ◽  
Marsha Weber ◽  
Sheri Erickson
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Controls ◽  
Accounting Profession ◽  
Investor Confidence ◽  
Reporting Requirements ◽  
Sarbanes Oxley ◽  
Audit Firms ◽  
Significant Change

A very significant change to the accounting profession occurred in 2002 when the Sarbanes-Oxley Act of 2002 (SOX) was enacted. This legislation had a significant impact on corporations and their audit firms. The objective was to improve corporate governance and its quality of financial reporting to improve investor confidence. This paper provides instructors with a background on SOX and suggests readings and activities that reflect the requirements of SOX as it relates to the AIS environment and the analysis of internal controls. These activities can strengthen students' understandings of how corporations respond to the various reporting requirements of this Act.

THE FUTURE OF CORPORATE REPORTING REFLECTIONS ON THE CRITICAL QUESTION OF THE NECESSITY OF FORWARD-THINKING PHILOSOPHY AND CULTURE OF REPORTING WORLDWIDE

2018 ◽  
Vol 28 (5) ◽  
pp. 1455-1466
Author(s):  
Hristina Oreshkova
Keyword(s):  
Financial Reporting ◽  
Biological Diversity ◽  
Radical Change ◽  
Green Economy ◽  
Critical Question ◽  
Corporate Reporting ◽  
Global Problems ◽  
The Future ◽  
Strategic Goals

Over the most recent decades corporate reporting has proved to be essential to achieving the strategic goals of humankinds and the ever-increasing necessity of truthful information and transparency. Corporate reporting is a socially significant process and practice. The quality of corporate reporting reflects the degree of relevance of the manner enterprises and businesses communicate with the surrounding world and environment (natural or industrial) and millions of people concerned – societies, present and future generations, employees, workers, and many other people, and other living beings. On most authoritative international scientific forums – symposia, conferences, congresses, assemblies, summit meetings and events, conducted in Europe and worldwide, it is pompously declared that corporate reporting should provide useful and reliable information both financial and non-financial one. The responsibilities of accountability and stewardship seem out to be of great importance to the fulfillment of the strategic goals of our centuries.The belief of the author is that the simultaneous analysis of the global problems challenging humankinds such as climate changes, destruction of biological diversity on the Planet, the matter of the necessity of actions of creating Green Ethics and Green Economy worldwide, the increasing need for combined and well-coordinated efforts in the combat supporting the eradication of poverty globally, and the relevance of corporate reporting to solving these unique problems the mankind is facing, would highlight and confirm their intricate interrelation (the key aim of the present research), consequently rendering the debate on the future of corporate reporting more meaningful and constructive. The debate would most probably promote the standpoint we personally maintain, which is also endorsed by an increasing number of supporters in Europe and around the world, implying in particular that apart from a process of unification and reduction of essential differences in the international financial reporting, what is also necessary is the radical change in the philosophy and culture of corporate reporting and presentation. Undeniably, it includes revealing of the financial state and the substantial effects and impacts of the businesses operating activities in a straightforward manner, as complete insights and understanding of the broader and far-reaching goals to which the corporate reporting must be subordinated – at present and in the long-lasting future.

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