Competition, Proprietary Costs of Financial Reporting, and Financial Statement Comparability

Imhof, Michael J.; Seavey, Scott E.; Watanabe, Olena V.

doi:10.1177/0148558x18814599

Cited by 29 publications

(15 citation statements)

References 75 publications

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“…But it should be noted that in relation to the management of costs and results of a specific industry, they are sufficient, but in relation to the competitiveness level, the question arises about the information quality stated in the reports. As stated by M.J. Imhof et al (2018), this results in some companies adopting stronger policies to protect confidential information from competitors. A.P.…”

Section: Discussionmentioning

confidence: 99%

Increasing the competitiveness level with the help of management reporting at the agricultural sector enterprises

Khushvakhtzoda¹

2022

Scientific Horizons

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In modern realities, enterprises are the main entity of the economy performance. However, their role has changed over time, which also led to changes in the principles of accounting, which in general increased its importance for achieving the company’s best financial performance. Thus, it remains relevant to consider the modern features of accounting in enterprises. In this work, the analysis is carried out in the Republic of Tajikistan, which is explained both by the economic features of the country’s development and by its socialist past and relatively short history within the capitalist mechanism of the state. In addition, the analysis is mainly focused on the agricultural sector due to its significant role in the country’s strategic and economic development plans. The purpose of the work was to assess the current state of management reporting methods in Tajikistan. The main method used in writing of the article was the analysis, taking into account the number of considered sources, used to form conclusions, modeling, graphic and statistical methods. The work described the main features of management reporting for agricultural enterprises in the Republic of Tajikistan. The analysis of the structure and main forms that exist for reporting by the agricultural sector companies showed their low efficiency. This is due to the volume of provided data, which is not enough for the effective functioning of the agricultural sector. It was proved that by introducing some changes in the methods accounting (management) reporting and improving the data quality in it, it was possible to increase the level of enterprises competitiveness. Therefore, the work presented such forms of their reporting that could solve some existing problems. The work provided new knowledge of the principles of financial reporting, as well as analyzed the peculiarities of its preparation in the country, therefore its results can be used practically by the specialists in the respective field

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Section: Discussionmentioning

confidence: 99%

Increasing the competitiveness level with the help of management reporting at the agricultural sector enterprises

Khushvakhtzoda¹

2022

Scientific Horizons

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“…Kim et al (2021) showed that firm pairs in Korean business groups have similar management styles, thus leading to similar accounting decision‐making and improving comparability. Imhof et al (2022) empirically proved that firms use strategic reporting to protect proprietary information from competitors when competition intensifies, causing managers to make reporting decisions that result in lower comparability.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Managerial short‐termism and financial statement comparability

Zhang

Wang

2023

Accounting & Finance

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This study examines the association between managerial short‐termism and financial statement comparability. Using a short‐termism measure constructed through textual analysis and machine learning based on a Chinese language setting in management discussion and analysis (MD&A), we find that firms with higher short‐termism produce financial statements with lower comparability and that this effect disappears in short‐horizon industries. We further find that the increased comparability is associated with an improvement in analysts' forecasts only in non‐short‐horizon industries. Overall, our findings suggest that firms with greater managerial short‐termism are more likely to have unusual corporate behaviours, thus having worse comparability with other firms.

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“…Prior literature documents that PMC has profound implications for accounting, finance and corporate governance issues. For example, PMC affects financial reporting quality including managerial disclosures (Ali et al., 2014; X. Li, 2010), earnings quality (P. Cheng et al., 2013, Datta et al., 2013; Guo et al., 2019; Markarian and Santal´o, 2014), accounting conservatism (Dhaliwal et al., 2014; Haw, Ho, et al., 2015), and financial statement comparability (Imhof et al., 2018). PMC influences analysts’ forecast properties (Almeida and Dalm´acio, 2015; Datta et al., 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Product market competition and operating leverage: International evidence*

Babar

Habib

2022

J Corp Accounting Finance

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This study examines the association between product market competition (PMC) and operating leverage for a large sample of international firms from 46 countries spanning the period 1985-2019. Using the Herfindahl-Hirschman (HH) index and the Industry Adjusted Price Cost Margin (IPCM) as two proxies for PMC, we provide evidence that PMC is significantly and positively associated with the operating leverage of firms. Cross-sectional analyses reveal that investment intensity, firm life cycle and the country-level employment protection legislation moderate the relationship between PMC and operating leverage. This study contributes to the scarce literature on the determinants of operating leverage.We expect our findings to be informative for investors in understanding the role market competition plays in shaping cost structures.

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Competition, Proprietary Costs of Financial Reporting, and Financial Statement Comparability

Abstract: Competitors often pay close attention to rivals' financial reports.

Cited by 29 publications

References 75 publications

Increasing the competitiveness level with the help of management reporting at the agricultural sector enterprises

Increasing the competitiveness level with the help of management reporting at the agricultural sector enterprises

Managerial short‐termism and financial statement comparability

Product market competition and operating leverage: International evidence*

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