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Global interest in adopting the International Financial Reporting Standards (IFRS) has risen rapidly; however, the Middle Eastern and North African (MENA) countries have reacted differently towards the international diffusion. The purpose of this study is to examine the impact of the IFRS adoption/rejection decision on the quality of MENA region firms' financial reporting.

The quality of accounting is examined through five metrics models to measure earnings smoothing, managing earnings towards a target and timely loss recognition. The research sample consists of nine countries over a period of ten years (2006–2015), resulting in 3,040 firm-year observations in the main phase, and 2,580 firm-year observations in the additional analysis.

The findings reveal that the overall sample of IFRS adopters in the MENA region has benefited from the adoption of IFRS, as the results show that there is a reduction in earnings management for IFRS adopters in comparison to local standards adopters. The sub-sample analyses also reveal that firms that adopted IFRS, in both the rentier (oil-dependent states) and non-rentier states, have a higher financial reporting quality than non-IFRS adopters. However, the magnitude of the financial reporting quality was higher for IFRS adopters in rentier states.

Similarly to previous research in this field, this study adopts a strict sample selection approach. Such an approach may limit the sample size, although the researchers have taken every possible step to ensure the use of an adequate sample size. The researchers acknowledge the strict period of ten years, despite having stated its rationale and importance of a more extended period to the quest of the paper.

This research provides valuable input by evaluating the current status of MENA region firms' financial reporting quality, based on their followed accounting regime. The implications of this paper result in better-informed decisions for investors as the information contents of the annual reports enhance comparisons that facilitate the further flow of investments. This research also provides significant insight into the International Accounting Standards Board (IASB). The findings of this study will assist the IASB in understanding the MENA region by measuring the consequences of the countries' decisions on the quality of firms' financial reporting.

The findings of this study contribute to the literature by revealing that countries with medium levels of governance quality have benefited the most from the IFRS adoption, while IFRS adopters in countries with stronger governance quality demonstrate lower financial reporting quality.

This study aims to examine trends in audit committee characteristics of companies and associates characteristics subject to major change with a fee-based proxy for audit committee effectiveness.

The research adopts an empirical approach. Using descriptive and inferential statistics, observations for 253 Financial Times Stock Exchange 350 companies’ audit committee characteristics gathered from annual reports at the beginning and end of a five-year period are evaluated against averaged non-audit fees (NAF) as a proportion of total audit fees.

Audit committee composition shows an increased incidence of female membership and of members with previous audit experience. The increase in members with previous audit experience is more marked where this is gained with the incumbent auditor. An increase is also shown in chief financial officers with previous audit experience. Previous audit experience is associated with reduced NAF as a proportion of total fees. This is marked where audit experience has been gained with the incumbent auditor. These results suggest that the benefits of financial expertise gained from audit experience outweigh impairments to independence due to social ties. Nevertheless, other studies indicate concerns about independence are still well-founded.

This paper’s original contribution is to evaluate the potential effect of previous audit experience on those involved in audit committees in light of concerns raised in the literature and by regulators that external auditor independence should be maintained. The innovative fee-based proxy for audit committee effectiveness facilitates an evaluation as to which influence prevails.

The purpose of this research is to support responsible decision-making in Higher Education (HE) settings by understanding what type of learning journey satisfies students most in their HE experience and what they want from the learning.

This paper analyses the key tool used to assess satisfaction factors for UK students, the National Student Survey (NSS). It adopts peculiar regression statistical tests to identify the NSS items that influence “overall student satisfaction” by reviewing responses over 9 years from accountancy students at business schools located in England.

The findings of the study provide evidence that students are most satisfied with a learning journey where they are part of a course that is “well organised and running smoothly”, which provides “intellectual stimulation” that helps in developing their ability to “present themselves with confidence” and provides “academic advice and support”. The findings of the paper show that students are not satisfied so much by utilitarian aspects of learning but rather those that relate to who they are and where they are in their learning journey, the level of intellectual stimulation they have experienced, the self-confidence they have developed and the supportive relationship they have developed with academics. A factor that did not relate highly was “assessment and feedback” which has been the focus of much university resource. Results show the factors that impacted overall satisfaction are most related to students wanting to develop personal responsibility. These findings shape the key principles of responsible design and management of HE programmes and influence strategic decision-making.

Focussing on helping students experience, the type of learning journey that develops the virtue of responsibility emergent from the analysis will not only satisfy the student but will also have a knock-on effect of improving NSS scores, university league table ranking and accreditation under the Teaching Excellence Framework. The improved reputation aspects would then feed back into increased student satisfaction (Dean and Gibbs, 2015). The findings will also help HE managers and leaders to evaluate their decisions through three lenses: responsibility, students’ experience and students overall learning journey.

Much of the information published on the NSS have been predominantly descriptive and has resulted in decisions being made for students based on uninformed analysis of the survey’s results. This study uses advanced statistical modelling to evidence the relationship between factors of the NSS and overall student satisfaction providing key information regarding students’ importance to the type of learning journey they value and that this relates to a desire in wanting to develop responsibility. This study shows the link between factors of the NSS to provide useful lenses for HE managers and leaders to use to support responsible decision-making processes.

This paper aims to examine the relationship between terrorism and innovation and the moderating role of venture capital.

The paper has used panel data from 140 countries covering the period of 2007–2016 and has analysed the data by using generalised method of moments instrumental variables (GMM-IV) estimation method to control for unobserved endogeneity among the variables.

The authors find that terrorism has negative impact on innovation. Interesting results emerge when we separated the developed countries from others. The results show that the impact of terrorism on innovation is lower in developed countries. This is due to the fact that strong institutional settings in developed countries make the investors confident by providing support and incentives. Better institutional settings in developed countries also help to reduce uncertainty, which maximise innovation and minimise terrorism risk. The authors also find that venture capital positively moderates the terrorism and innovation relationship. This implies that by providing sufficient fund for technological development, venture capital may help to reduce terrorism risk.

These results may guide the policy makers to find a business solution instead of lengthy political solution to mitigate terrorism risk in emerging countries. Overall, this paper will provide the basis for improving the counter-terrorism approaches from an innovation perspective.

The paper has used terrorism and venture capital data from 140 countries and finds interesting results that may help the policy makers to reduce the effect and intensity of terrorism in emerging countries.

This study aims to examine the socio-economic and environmental impacts of mining activities as perceived by communities in Ghana, with data being drawn from primary and secondary sources.

A total of 90 community residents were interviewed, with 15 from each of the six selected different communities.

The findings revealed a positive perception that corporate social responsibility (CSR) practices of mining companies contribute to the development of mining communities in Ghana by creating jobs and generating income. However, it became clear that mining activities, particularly small-scale mining, create many social and environmental challenges as well. This includes land degradation, which reduces the fertility of community-owned land suitable for agricultural use. In addition, pollution of waterways and streams intensifies the plight of community residents living in mining areas.

Since 2011, the mining industry has invested between US$12m (in 2013) and US$44m (in 2011) in Ghana’s communities. The amount spent in 2019 was US$24m. The funds were spent by the industry in areas such as roads, education, health and electricity, among others. Still, it seems more effort is needed by the mining companies to harmonise the CSR practice and gain better impression by local people. In spite of the mining industry’s investment levels, more than half of the community respondents said it was insufficient. One-third of the respondents went as far as suggesting the mining companies had a negative impact on infrastructure improvement and community development.

This study aims to investigate the extent to which the provision of non-audit services (NAS) by external auditors to audit clients affects auditors’ independence and the audit expectation gap in Nigeria.

The study adopts an interpretivist approach. In total, 30 semi-structured, face-to-face interviews were conducted to explore the views expressed by audit partners and pension fund managers in Nigeria; group responses were evaluated and presented separately. After transcribing the interview audio recordings, a thematic data analysis of the two groups’ responses was performed.

Interpretation of the interview responses indicates that the provision of NAS by audit firms to their audit clients is regarded by auditors as a matter of economic necessity. Nevertheless, it is also perceived as impeding auditors’ independence and increasing the gap between the auditor and public expectations.

This study contributes to the debate surrounding the need for an independent body to oversee auditing standard setting distinct from the current practice to enhance transparency.

A qualitative analysis of the nuanced responses obtained from the semi-structured interviews reveals starkly the perceived economic pressures on auditors to accept non-audit work. Moreover, it endorses the regulation to restrict non-audit work in support of a sustainable fee level for an independent audit.

The purpose of this paper is to assess the practice of income smoothing in the Gulf Cooperation Council (GCC) emerging markets; Saudi Arabia, Kuwait, United Arab Emirates, Oman and Qatar. Then, to examine the impact of income smoothing on the earnings quality to decide whether income smoothing can serve as either a tool to enhance earnings quality or a tool for opportunistic behavior. Audit quality and corporate governance as additional factors are considered in this study.

The study methodology measures income smoothing behavior based on the coefficient of variation method. Earnings quality is measured as an outcome of the explained variations in stock returns by earnings based on the efficient market hypothesis. Audit quality is measured based on brand as higher quality assigned to auditor from any of the Big 4, while the corporate governance is addressed based on the extent of governmental ownership. The initial study sample comprises 55 companies over a ten year period, from 1999 to 2008; the final sample represents approximately 64 percent of the industrial sector that have public data during the study.

The results suggest that income smoothing behavior in the GCC markets has many variations in practice. Income smoothing, on average, improves earnings quality in three countries out of four, but not significantly for the whole sample based on earnings level. The earnings changes model demonstrated a positive and significant impact of income smoothing on earnings quality. Audit quality and earnings quality have a positive relationship within the region, and companies dominated by the government perform well in accordance with the earnings-return model.

The study is limited to the industrial sector of the GCC.

The study opens the door to future applications to other sectors within the GCC, same sectors and other sectors for Middle East countries and other emerging markets.

The study may foster a better understanding of accounting practices in the GCC and Middle East. The study reveals variations in different aspects among GCC countries, this matter should be considered in separate studies across different areas.

The study makes an original contribution to being the first to explore this topic in the GCC. Additionally, this study shows that the GCC markets have different characteristics in the practice and impact of income smoothing on earnings’ quality. Further, audit quality and corporate governance was investigated for each country and for the region, in addition to the interaction between these factors with the income smoothing and earnings quality.

Purpose: The purpose of this chapter is to establish the sustainability reporting practices of FTSE 100 companies using integrated reporting (IR), corporate social responsibility (CSR) and corporate governance (CG) as proxies. Our study has adopted a holistic approach by combining dimensions of each factor in one variable.

Design/Methodological Approach: The study data cover all FTSE 100 companies over five years, thereby generating 505 company-year observations for each variable of the study. Authors have collected the data from Environmental, Social and Governance (ESG) reports filed with Thomson Reuters and International Integrated Reporting Council (IIRC).

Findings: Results indicate the practice of sustainability reporting in FTSE 100 companies both per variables and dimensions levels. It shows, for example, 89% of the companies reported on their charitable donations. The study also found that 79% of the FTSE 100 companies reported on their sustainability committees whilst 86% and 85% reported on their emission reduction and waste reduction policies, respectively. Results show that the CSR impact is higher than CG regarding IR adoption. The Logistic Model manages to explain a high percentage of IR adoption while controlling for other misspecification issues such as multicollinearity.

Practical Implication: The study highlights practice of substantiality reporting for public shareholding companies listed on FTSE 100 Index along with interaction among proxies. These will be of interest to companies not only in the FTSE 100 Index but also those outside. Companies can rely on these factors to strengthen their governance, social responsibility and reporting policies in consideration of all stakeholders and not just a few. We believe that we shed a quantitative explanation on IR adoption by CSR and CG factors, and we expect an impact on practices following results of our study.

Social Implication: Results have indicated that at least 60% of companies in the FTSE 100 Index have imbedded social responsibility activities, such as charitable giving, waste reduction initiatives, emissions reduction policy and sustainability committees.