Accounting information quality and systematic risk

Xing, Xuejing; Yan, Shan

doi:10.1007/s11156-018-0703-z

Cited by 31 publications

(43 citation statements)

References 47 publications

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“…The significance threshold of the standard variable of adjusted equity is the maximum in all the analyzed cases. Xing and Yan (Xing and Yan 2019) have developed an econometric model of multiplicative type in which the quality of the information system reduces the systemic risk. The model contains certain variables (size, ROA, leverage, net capital expenditures, R&D) to which a number of qualitative variables are added (market-to-book, sales Herfindhal, business segments, constant, observations) which reduce the validity of the model through their subjective assessment side.…”

Section: Discussionmentioning

confidence: 99%

Correction of Accounting Errors through Post Balance Sheet Event Analysis for Romanian Companies

2019

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The study scope is to present the typology of the events analyzed through our research and their impact on the quality of reported financial data. The objectives of the study are to analyze the vulnerability of enterprises according to methodological criteria such as risks and calculations of the risk profile, as well as to establish the necessary measures for correcting the accounting errors based on the conclusions drawn from the analysis. The method used is prospective, financial analysis of the data taken from the financial statements of the companies included in the sample, dynamic for a period of 6 years (2011–2016). Based on the method used, a risk model has been conceptualized to identify the vulnerabilities and risks reported in the financial statements and to define a company risk profile based on which error correction measures can be adopted. Considering the amplitude of the necessary check-ups and the methodology of the imposed accounting treatments, we believe that the topic addressed is a real area of interest for the professional accountants because it organizes the application procedures and limits the impact of errors on the quality of financial reporting in Romania.

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Section: Discussionmentioning

confidence: 99%

Correction of Accounting Errors through Post Balance Sheet Event Analysis for Romanian Companies

2019

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“…Campbell et al [6] state that the systematic risks of individual stocks with similar accounting characteristics are primarily driven by the systematic risks of their fundamentals. Xing and Yan [7] indicate that improving accounting information quality causes the systematic risk to decrease, thus having important implications for disclosure decisions, portfolio management, and asset pricing.…”

Section: Literature Review 21 Systematic Riskmentioning

confidence: 99%

Measuring the Systematic Risk of Sectors within the US Market via Principal Components Analysis: Before and during the COVID-19 Pandemic

Jiménez¹,

Santiago²

2023

Psychosocial, Educational, and Economic Impacts of COVID-19

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This research measures the systematic risk of 10 sectors in the American Stock Market, discerning the COVID-19 pandemic period. The novelty of this study is the use of the Principal Component Analysis (PCA) technique to measure the systematic risk of each sector, selecting five stocks per sector with the greatest market capitalization. The results show that the sectors that have the greatest increase in exposure to systematic risk during the pandemic are restaurants, clothing, and insurance, whereas the sectors that show the greatest decrease in terms of exposure to systematic risk are automakers and tobacco. Due to the results of this study, it seems advisable for practitioners to select stocks that belong to either the automakers or tobacco sector to get protection from health crises, such as COVID-19.

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“…It can therefore be assumed that verification of non-financial reports on a broader scale should results in investors being better informed, and this in turn would improve the informational efficiency of financial markets. Moreover, Xing and Yan (2019) demonstrated that good quality accounting data limits the systematic risk in capital markets. Presumably, the same pertains to all disclosures concerning the activity of a company.…”

Section: Notion Of a Non-financial Report Audit And A Review Of The Literature Dedicated To This Conceptmentioning

confidence: 99%

Practice of Non-Financial Reports Assurance Services in the Polish Audit Market—The Range, Limits and Prospects for the Future

Bartoszewicz

Rutkowska-Ziarko

2021

Risks

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In recent years, many companies have been issuing non-financial information which is used by a wide range of stakeholders in their decision-making processes. Considering the fact that such reports play an important role in financial markets, the information they provide should be submitted to verification by an external, independent body. Our study, carried out in 2020, showed that only 2.3% of audit firms in Poland offer auditing non-financial report services. This was the starting point for our further investigations, the results of which will be presented in this article. The aim of the article is to identify the factors that limit or stimulate the performance of auditing in Poland with respect to non-financial data, and to determine the scope of operations carried out by audit firms which provide this service. The article comprises literature perusal and results of empirical studies among audit firms in Poland. Several important findings have emerged, including the fact that there are few companies in the Polish auditing market rendering the service of auditing non-financial reports, which are leaders in this field. The factor that most significantly limits the performance of non-financial report auditing is the low demand for such a service, which arises from the fact that verification and assurance of non-financial data are not obligatory for all reporting undertakings. Given that the number of CRS reports is increasing every year, it seems necessary to make full audits in order to confirm the reliability of non-financial information provided by reporting companies. Otherwise, stakeholders interested in these reports might be exposed to a risk of making inadequate decisions.

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Accounting information quality and systematic risk

Cited by 31 publications

References 47 publications

Correction of Accounting Errors through Post Balance Sheet Event Analysis for Romanian Companies

Correction of Accounting Errors through Post Balance Sheet Event Analysis for Romanian Companies

Measuring the Systematic Risk of Sectors within the US Market via Principal Components Analysis: Before and during the COVID-19 Pandemic

Practice of Non-Financial Reports Assurance Services in the Polish Audit Market—The Range, Limits and Prospects for the Future

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