The effect on the BTD of IFRS adoption and the end of the Transitional Tax Regime (RTT) in Brazil

ABSTRACT This paper aimed to evaluate the moderation by variables related to incentives for earnings management (indebtedness, profitability, and size) over the effect of the change in standards (accounting or tax) on the book-tax differences (BTD). The end of the Transitional Tax Regime (RTT) enables us to evaluate the symmetry between the divergence and reconvergence of the accounting and tax standards, helping to identify the moderating effect of characteristics such as size, leverage, and profitability over the use of the discretion allowed by the International Financial Reporting Standards (IFRS). Studying the effects of changes in the standards contributes to understanding how they affect accounting information quality, particularly when we observe symmetrical movements of divergence of the accounting and tax standards, such as IFRS adoption, and of reconvergence, with the end of the RTT. The analysis conducted enables us to separate effects of divergence between the tax and accounting standards from the innovations introduced by the IFRS. An understanding of the effect of the standard over accounting information quality contributes to the quality of the work of financial analysts, tax authorities, and regulators. Event studies are conducted to evaluate the effect of IFRS adoption, as well as the end of the RTT, over the BTD (a proxy for earnings management), in cross sections of companies. We use explanatory variables related to incentives to manage book and taxable income (indebtedness, profitability, and size), which could explain the ambiguity of the results in the literature. The article provides evidence that the indebtedness and size of companies influence the effect of IFRS adoption, as well as of the end of the RTT. We observed a negative relationship of indebtedness and size with the impact of changes in standards over differences between book and taxable income (BTD).

The Role of Attachment Styles and Spiritual Intelligence in Predicting Women’s Emotional Divorce

Background: Emotional divorce refers to a situation in which the emotional relationship, support, passion, warmth, attention, love, and intimacy between couples (husband & wife) decline or diminish. Such conditions lead to an unaffectionate marital life to the point that the couples are only together under one roof. Accordingly, the present study aimed to explore the role of attachment styles and spiritual intelligence in predicting emotional divorce in women. Methods: This study employed a descriptive-correlational design. The research population included all women filing for divorce who were referred to marriage counseling and couple therapy centers in districts 5 and 6 in Tehran City, Iran, in 2020. In total, 400 women who met the inclusion criteria were selected as the study participants using voluntary response and convenience sampling techniques. The required data were collected by the Emotional Divorce Scale, the Adult Attachment Scale, and the Self-Report Measure of Spiritual Intelligence. The collected data were analyzed using the multiple regression analysis method in SPSS V. 22. Results: The obtained results suggested a significant positive relationship between the anxious-avoidant attachment style and emotional divorce (P<0.01). Furthermore, there was a significant negative relationship between spiritual intelligence and emotional divorce; the higher the spiritual intelligence, the lower the emotional divorce (P=0.02). Accordingly, spiritual intelligence and anxious-avoidant attachment style can predict emotional divorce (Multiple Regressions= -0.58). Conclusion: The present study data suggested that premarital education and counseling before spouse selection help in examining the personality traits of the parties. Moreover, paying attention to the role of health professionals, such as family counselors, psychologists, and psychiatric nurses in providing premarital counseling and education to couples and emphasizing the role of spiritual intelligence and attachment styles may prevent emotional separation and divorce among couples.

Determinants of Auditor Choice in Non-Financial Listed Firms on the Vietnamese Stock Market

Audit plays an important role in maintaining and issuing high-quality financial statements. This article investigates the factors that can affect auditor choice in developing countries. The authors utilize STATA to test Binary Logistic on a sample of Vietnamese listed firms data during the period between 2014 and 2017. These studies have examined the characteristics of the firm itself or the client's characteristics, prompting the process of selecting an auditor in the same regulatory environment. The results present that there is a positive relationship between firm size, firm growth, and auditor choice. While financial leverage has a negative relationship with the selection of audit firms.

Changing Digital Age in the Wake of COVID-19

Virtual teams play a crucial role in today’s knowledge-based organisation for overcoming challenges in our dynamic world, especially in the current situation of the COVID-19 pandemic. Teams play a key role in today’s knowledge-based organization for overcoming challenges in our dynamic world. Drawing on social information processing theory, this study explores the effect of members’ humility and team environment within a leaderless team mainly based on virtual platforms. Their impacts on shared leadership, relationship conflict and team and individual performance were investigated. Surveying 219 students forming 61 virtual leaderless teams, our findings showed that a high level of humility and a positive team environment can help to improve shared leadership within a team, which contributes to team performance. Moreover, both humility and team environment have a negative relationship with relationship conflict, which depressed both team and individual performance. Our analysis also indicated that humility positively interacts with team environment on shared leadership.

The link between interpersonal conflict and knowledge hiding: mediated by relatedness need frustration, moderated by narcissistic rivalry

Purpose The purpose of this study is to investigate the relationship between employees’ experience of interpersonal conflict and their engagement in knowledge hiding, according to a mediating effect of their relatedness need frustration and a moderating effect of their narcissistic rivalry. Design/methodology/approach The tests of the hypotheses rely on three-wave, time-lagged data collected among employees in Pakistan. Findings A critical reason that emotion-based fights stimulate people to conceal valuable knowledge from their coworkers is that these employees believe their needs for belongingness or relatedness are not being met. This mediating role of relatedness need frustration is particularly salient among employees who are self-centered and see others as rivals, with no right to fight with or give them a hard time. Practical implications The findings indicate how organizations might mitigate the risk that negative relationship dynamics among their employees escalate into dysfunctional knowledge hiding behavior. They should work to hire and retain employees who are benevolent and encourage them to see colleagues as allies instead of rivals. Originality/value This research unpacks the link between interpersonal conflict and knowledge hiding by explicating the unexplored roles of two critical factors (relatedness need frustration and narcissistic rivalry) in this relationship.

Effects of founder CEO duality and board size on foreign IPOs’ survival in US markets

Purpose This study aims to investigate how three critical governance decisions by foreign firms impacted their survivability post-initial public offerings (IPO): the choice of CEO (founder vs non-founder); the power the founder CEO wields relative to the board in terms of CEO duality; and board size. Design/methodology/approach This study uses data from 86 foreign firms that completed IPOs in the US market between 2000 and 2008 and adopts a Cox proportional hazards model to examine how the founder, founder CEO duality and board size influence foreign firm delisting post-IPO. Findings A founder CEO or a founder CEO with duality (i.e. when a founder CEO is also chair of the board of directors) does not support a foreign firm’s survival post-IPO. Expectedly, board size has a negative impact on post-IPO firm survivability; however, founder CEO duality positively moderates this negative relationship. Therefore, founder CEO duality plays a positive indirect role in the context of post-IPO firms with large boards. Originality/value First, while the benefits of CEO duality have been empirically ambiguous, this study clarifies how founder CEO duality manifests its positive impacts in foreign listings. Second, by focusing on board cognition, this study confirms the negative impact of large boards, but highlights that this can be mitigated by governance leadership structure. Finally, despite organizational life-cycle theorists’ advocacy of the replacement of founder CEOs with professional CEOs in sizable ventures, this study shows the benefits of their retention when the board is large.

Management obfuscation through mandatory financial risk disclosure: evidence from European-listed banks

Purpose This study aims to investigate the readability of financial risk disclosure divulged by listed banks of the first five European countries according to gross domestic product. Design/methodology/approach This study adopts the management obfuscation hypotheses and tests data gathered for a sample of 790 observations from listed banks in Europe covering the 2007–2018 period. This study uses a readability index (Gunning’s fog index) as the dependent variable for measuring the readability of banks’ mandatory financial risk disclosures. Moreover, it relies on a completeness index, discretionary accruals and several control variables for identifying the determinants of risk disclosure readability using ordinary least square regression for testing the hypotheses. Findings The findings show the existence of a positive relation\nship between readability and completeness of risk disclosure. In contrast, a negative relationship exists between readability and banks’ discretionary accruals. Originality/value This study expands the stream of accounting literature analyzing the lexical characteristics of narrative risk disclosure, and, by focusing on the financial risk disclosure of banks, it extends the readability-related debate, which has primarily concentrated on other types of disclosure to date. This study is relevant to regulators and policymakers for fostering reflections as actions for improving the financial risk disclosures readability. This study is also of potential interest for investors to better delve into the questions surrounding risk disclosure.

Long-Term Effects of Climate and Litter Chemistry on Rates and Stable Fractions of Decomposing Scots Pine and Norway Spruce Needle Litter—A Synthesis

We have reviewed information on early-, late- and limit-value decomposition stages for litter of Norway spruce (Picea abies) and Scots pine (Pinus silvestris). This synthesis covers c 16 studies/papers made along a climatic gradient; range in mean annual temperature (MAT) from −1 to +7 °C and mean annual precipitation (MAP) from 425 to 1070 mm. Scots pine has an early stage dominated by carbohydrate decomposition and a late stage dominated by decomposition of lignin; Norway spruce has just one stage dominated by lignin decomposition. We used data for annual mass loss to identify rate-regulating factors in both stages; climate data, namely, MAT and MAP, as well as substrate properties, namely, nitrogen (N), acid unhydrolyzable residue (AUR), manganese (Mn). Early-stage decomposition for Scots pine litter was dominated positively by MAT; the late stage was dominated negatively by MAT, N, and AUR, changing with decomposition stage; there was no effect of Mn. Norway spruce litter had no early stage; decomposition in the lignin-dominated stage was mainly negative to MAP, a negative relationship to AUR and non-significant relationships to N and MAT. Mn had a positive relationship. Limit values for decomposition, namely, the accumulated mass loss at which decomposition is calculated to be zero, were related positively to Mn and AUR for Scots pine litter and negatively to AUR for Norway spruce litter. With different sets of rate-regulating factors as well as different compounds/elements related to the limit values, the decomposition patterns or pathways are different.

The Impact of CEO Duality and Financial Performance on CSR Disclosure: Empirical Evidence from State-Owned Enterprises in China

: This paper studies the effects of a firm’s financial performance (FP) and chief executive officer’s (CEO) duality on the quality of corporate social responsibility (CSR) disclosure in the context of state-owned enterprises (SOEs) among Chinese A-share-registered companies. The results depict a negative relationship between CEO duality and CSR disclosure. Our results demonstrate that better-performing firms disclose CSR information more frequently and of higher quality compared with firms with poor financial performance. This role of financial performance in the quality of CSR disclosure is generally valuable in public enterprises; however, it is relatively sluggish in state-owned enterprises The outcomes indicate that the dual leadership structure reduces assessments and renders CEOs less liable to their stakeholders. Therefore, this study offers valuable information and details for regulators to improve corporate governance and CSR from the perspective of stakeholder theory.

Correlates of Stock Market Development and Economic Growth: A Confirmatory Study from Ghana

The study confirms the debate on whether stock market development correlates to economic growth. The dimensions used for the stock market development consisted of market liquidity, size, and capitalization. Economic growth was represented by the real gross domestic product (GDP) growth rate. Based on secondary data obtained from the Ghana Stock Exchange (GSE) and Ghana Statistical Service from 2014 to 2018, a correlational research design was adopted to analyze the data with SPSS 20v by using bivariate and regression. The study found that there is a high positive relationship between market liquidity and economic growth, a moderate negative relationship between market size and economic growth, and a moderate positive relationship between market capitalization and economic growth. Also, the stock market development of market liquidity, size, and capitalization predict 95.7 percent of economic growth. The study summarized that there is a high positive association between stock market development and economic growth as a confirmatory revelation, but all the relationship results were not statistically significant. The result points to the casualty of the relationship between stock market development and economic growth. The study recommends that more firms must be encouraged to be listed on GSE to enhance economic growth in Ghana.