知名会计期刊-JAPP-2020年第2期目录及摘要

席佳慧胡晗芳会计学术联盟 2023-02-24

Journal of Accounting and Public Policy

Volume 39, Issue 2

March–April 2020

Life learning

The Journal of Accounting and Public Policy publishes research papers focusing on the intersection between accounting and publ-ic policy. Preference is given to papers illuminating through theoretical or empirical analysis, the effects of accounting on public policy and vice-versa.（SSCI）

Journal Metrics

CiteScore: 3.41

Impact Factor: 2.269

5-Year Impact Factor: 3.831

Source Normalized Impact per Paper (SNIP): 1.692

SCImago Journal Rank (SJR): 1.481

1.Estimating the COVID-19 cash crunch: Global evidence and policy

Antonio De Vito, Juan-Pedro Gómez

2.Corruption culture and accounting quality

Yunsen Chen, Limei Che, Dengjin Zheng, Hong You

3.Group audits: Are audit quality and price associated with the Lead auditor’s decision to accept responsibility?

JuanMao, Michael Ettredge, Mary Stone

4.Does government report readability matter? Evidence from market reactions to AAERs

Yu Flora Kuang, Gladys Lee, Bo Qin

5.Political promotion incentives and within-firm pay gap: Evidence from China

Gaowen Kong, Tony Dongmin Kong, Ruichang Lu

NO.01

Estimating the COVID-19 cash crunch: Global evidence and policy

Antonio De Vito

Department of Accounting and Management Control

Juan-Pedro Gómez

IE Business School, IE University, Spain

Abstract

In this paper, we investigate how the COVID-19 health crisis could affect the liquidity of listed firms across 26 countries. We stress-test three liquidity ratios for each firm with full and partial operating flexibility in two simulated distress scenarios corresponding to drops in sales of 50% and 75%, respectively. In the most adverse scenario, the average firm with partial operating flexibility would exhaust its cash holdings in about two years. At that point, its current liabilities would increase, on average, by eight times, suggesting that the average firm would have to resort to the debt market to prevent a liquidity crunch. Moreover, about 1/10th of all sample firms would become illiquid within six months. Finally, we study two different fiscal policies, tax deferrals and bridge loans, that governments could implement to mitigate the liquidity risk. Our analysis suggests bridge loans are more cost-effective to prevent a massive cash crunch.

Keywords

COVID-19 Cash crunch Liquidity risk Business taxes

Fiscal policies Bridge loans

NO.02

Corruption culture and accounting quality

Yunsen Chen

Central University of Finance and Economics, China

Limei Che

Peking University HSBC Business School, China

Dengjin Zheng

Central University of Finance and Economics, China

Hong You

Southwest University, China

Abstract

This paper examines the impact of corruption culture on accounting quality (AQ) of listed firms at the municipal level in China. We consider municipalities with (without) corrupt top government officials as having high (low) corruption culture. To isolate the effect of corruption culture, we use the arrest of corrupt officials (the events) to capture the change in local corruption culture, and apply the difference-in-difference method to compare AQ of firms operating in the jurisdictions of corrupt officials pre and post the events, compared to control firms. We find that AQ of firms affiliated with corrupt officials is higher after the events, which is robust to the placebo test, time-trend analysis, and various robustness tests. We complement the literature by showing that the increase in AQ is greater for firms associated with more powerful officials and having stronger connections with corrupt officials. Moreover, the positive effect on accounting quality is stronger in the post-2012 period. Further, we document that firms improving AQ after the events issue more SEOs and have lower cost of capital. Finally, analyses on channels firms used to improve AQ show that firms switch to higher quality auditors, have better internal control, and issue more management forecasts. This study has implications for policymakers in countries that suffer from corruption

Keywords

Corruption culture Accounting quality

Local government officials China

NO.03

Group audits: Are audit quality and price associated with the Lead auditor’s decision to accept responsibility?

Juan Mao

University of Texas at San Antonio

Michael Ettredge

University of Kansas, United States

Mary Stone

University of Alabama, United States

Abstract

Lead auditors frequently rely on work performed by Other auditors, especially when auditing clients with operations in multiple countries. The PCAOB has expressed concern that the quality of such group audits may differ depending on whether the Lead auditor accepts or declines responsibility for work done by Other auditors. The PCAOB also has been concerned with the venue through which Lead auditors and Other auditors disclose their participation in group audits, including disclosure of whether Lead auditors accept or decline responsibility. To investigate these issues, we employ a sample consisting entirely of group audit engagements. We identify Lead auditors taking responsibility from PCAOB Form 2, filed by Other auditors of U.S. registrants for fiscal years 2009 to 2017. We identify Lead auditors not accepting responsibility from audit report disclosures during the same period. The results suggest that Lead auditors accepting responsibility charge higher audit fees but provide audits of no higher quality, and possibly of even lower quality. These results are robust to various additional analyses. Our research contributes to the ongoing debate over how the participation of Other auditors affects audit quality.

Keywords

Group audits Lead auditor Audit fee Audit quality

Other auditor Divided responsibility

NO.04

Does government report readability matter? Evidence from market reactions to AAERs

Yu Flora Kuang

The University of Melbourne, Australia

Gladys Lee

The University of Melbourne, Australia

Bo Qin

The University of Melbourne, Faculty of Business and Economics, Department of Accounting

Abstract

We investigate whether market reactions to Accounting and Auditing Enforcement Releases (AAERs) of the U.S. Securities and Exchange Commission (SEC) vary with different levels of readability in the AAERs. After controlling for the complexity of an AAER report and the severity of the enforcement case, we find that when the AAER is more difficult to read, with readability measured based on the directives of the Plain Writing Act of 2010, markets react more negatively to the AAER announcement. Cross-sectional tests indicate that the effect of AAER readability is attenuated by investor sophistication and firm visibility, whereas the effect is more pronounced when AAER firms are exposed to greater uncertainty. Contrary to conventional wisdom that linguistically complex disclosures receive reduced market reactions, our results suggest that complex AAER announcements could trigger more negative stock price reactions, since investors under uncertainty and ambiguity tend to assume the worst and bid down the market value of AAER firms. Our study offers meaningful implications for regulators concerned with writing clarity in government documents.

Keywords

Government document Plain Writing Act

Disclosure readability Textual analysis

Market reaction

NO.05

Political promotion incentives and within-firm pay gap: Evidence from China

Gaowen Kong

School of Economics and Statistics, Guangzhou University,

Tony Dongmin Kong

School of Finance, Zhongnan University of Economics and Law

Ruichang Lu

Guanghua School of Management, Peking University

Abstract

In this paper, we investigate how the promotion incentive of politicians affects the pay gap between executives and employees in local firms. We find that the promotion incentive of local politicians significantly reduces the within-firm pay gap. This effect is more pronounced for large firms, firms in regions subject to more government intervention, state-owned-enterprises, private firms with political connections, and firms with more geographically concentrated operations. Our findings are robust to the use of the loss of top-rank political connections and economics loss due to earthquakes as instrumental variables for the promotion incentive. Furthermore, a reduction in pay gap is mainly driven by an increase in employee pay, instead of a decrease in executive pay. Overall, this study sheds light on the determinants of within-firm pay gaps from the perspective of the career concerns of local politicians.

Keywords