Derivative accounting and financial reporting quality: A review of the literature

Hairston, Stephanie; Brooks, Marcus R.

doi:10.1016/j.adiac.2018.10.003

Cited by 28 publications

(14 citation statements)

References 44 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The financial scandals of 2008 swelled the demand for financial officials to analysis the efficiency of financial reporting. Previous research works outline the quality of financial reporting as the degree of which RELATIONSHIP BETWEEN FINANCIAL REPORTING SYSTEM AND PROJECT SUCCESS 363 financial reports deliver beneficial facts for stakeholders and lenders in making decisions (Schipper, 2003;Schipper & Vincent, 2003;Nielsen & Roslender, 2015;Hairston & Brooks, 2019) have afforded an empirical proof about the efficiency of reporting system in accomplishing the identified goals and highlighted to the gap for development in the quality of reporting system, they commended after their review of collected works that the Financial Accounting Standards Board (FASB) necessitates executives to deliver additional comprehensive, translucent information (Hairston & Brooks, 2019).…”

Section: Research Justification/theoretical Background Themes Relatedmentioning

confidence: 99%

The Relationship between Financial Reporting System and Project Success: A Case of Construction Projects in UAE

Hussain¹,

Khan²,

Jumaa³

et al. 2020

JMAA

View full text Add to dashboard Cite

Section: Research Justification/theoretical Background Themes Relatedmentioning

confidence: 99%

The Relationship between Financial Reporting System and Project Success: A Case of Construction Projects in UAE

Hussain¹,

Khan²,

Jumaa³

et al. 2020

JMAA

View full text Add to dashboard Cite

“…Rational risk averse investors would prefer less volatile earnings trends. Stable earnings trends can be useful input for the prediction of future earnings performance (Hairston & Brooks, 2019). In fact, Gordon's dividend growth model uses the assumption of stable and predictable increase in dividend payout to forecast a company's share price (Verdickt et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Firms can use derivatives as risk management tools to hedge the impact of adverse price or market movements on fair values or cash flows. Alternatively, firms may speculate in derivatives that are not offset by any asset or liability and thus increase their risk exposure (Campbell et al, 2019;Hairston & Brooks, 2019).…”

Section: Introductionmentioning

confidence: 99%

Earnings Volatility, the Use of Financial Derivatives and Earnings Management: Evidence from an Emerging Market

Phua

Lok

Chua

et al. 2021

MJES

View full text Add to dashboard Cite

In the face of crises such as Covid-19, businesses become devastated by greater risk exposure, particularly in currency exchange, supply chain disruption, and fluctuation in commodity prices that cause volatile earnings trends. Higher earnings volatility is frequently associated with greater risk. Consequently, firms could be inspired to engage in earnings management or derivative use as attempts to mitigate earnings volatility. Using a sample of 169 of the largest non-financial firms with 507 firm-years observations from an emerging market, the researchers examined the relationship among derivative use, earnings volatility, and earnings management. The results of a panel regression analysis showed that derivative use by Malaysian public listed companies was positively connected with earnings volatility, inferring that the use of derivatives did not mitigate earnings volatility as intended. This study also found that both earnings volatility and derivative use have a positive relationship with earnings management. This implies that firms engage in earnings management to curb earnings volatility under circumstances where derivative use is associated with higher earnings volatility. Evidence derived from this study contributes to extant literature on financial risk management involving financial instruments, an area that is very much understudied in the contexts of emerging markets.

show abstract

“…Other research suggests that financial reporting quality can improve investment decisions because it reduces the mismanagement of financial information between managers and investors (Roychowdhury, Shroff, and Verdi 2019). Good accounting information will increase the attractiveness of its users to invest or invest (Hairston and Brooks 2019).…”

Section: Introductionmentioning

confidence: 99%

Analysis of Investment Decisions in Sharia Cooperatives: Does Sharia Accounting Standards Affect?

Khoerulloh

Janwari

2021

Econ. J. Ekon. Islam

View full text Add to dashboard Cite

Investors in sharia cooperatives in Majalengka Regency suffered losses due to its administrators and managers who were not transparent in reporting their finances. This research aims to determine the effect of the application of sharia accounting standards and human resource competencies on investment decisions through financial reporting quality. The analytical techniques used in this study use path analysis. The results showed that the application of Sharia accounting standards had no significant adverse effect on investment decisions through financial reporting quality with an original sample value of -0.021 and Pvalue 0.554 0.05. In contrast, human resource competence significantly affected investment decisions through financial reporting quality with original sample values of 0.403 and Pvalue of 0.044 0.05. The implication of this research is to improve sharia cooperative management in financial performance to attract members to invest. The novelty of this research is the motive of investing in sharia cooperatives.Abstrak: Investor pada koperasi syariah di Kabupaten Majalengka mengalami kerugian karena ulah para pengurus dan pengelolanya yang tidak transparan dalam melaporkan keuangannya. Penelitian ini bertujuan untuk mengetahui pengaruh penerapan standar akuntansi syariah dan kompetensi sumber daya manusia terhadap keputusan investasi melalui kualitas laporan keuangan. Teknik analisis yang digunakan dalam penelitian ini menggunakan analisis jalur. Hasilnya menunjukkan bahwa penerapan standar akuntansi syariah berpengaruh negatif tidak signifikan terhadap keputusan investasi melalui kualitas laporan keuangan dengan nilai original sample sebesar -0.021 dan Pvalue 0.554 0.05, sedangkan kompetensi sumber daya manusia berpengaruh positif signifikan terhadap keputusan investasi melalui kualitas laporan keuangan dengan nilai original sample sebesar 0.403 dan Pvalue 0.044 0.05. Implikasi dari penelitian ini adalah meningkatkan manajemen koperasi syariah dalam kinerja keuangan sehingga menarik anggota untuk berinvestasi. Kebaruan dari penelitian ini adalah motif investasi pada koperasi syariah.

show abstract

Derivative accounting and financial reporting quality: A review of the literature

Cited by 28 publications

References 44 publications

The Relationship between Financial Reporting System and Project Success: A Case of Construction Projects in UAE

The Relationship between Financial Reporting System and Project Success: A Case of Construction Projects in UAE

Earnings Volatility, the Use of Financial Derivatives and Earnings Management: Evidence from an Emerging Market

Analysis of Investment Decisions in Sharia Cooperatives: Does Sharia Accounting Standards Affect?

Contact Info

Product

Resources

About