Strategic Accounting Choice Around Firm-Level Labor Negotiations

Osma, Beatriz Garcı́a; Mora, Araceli; Sabater, Ana M.

doi:10.1177/0148558x14560902

Cited by 20 publications

(14 citation statements)

References 68 publications

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“…Iyengara and Zampellib 2010). There is some evidence of other stakeholders driving to some extent the level of conditional conservatism, as for example suppliers (Hui et al 2012) or labour agreements with workers (García Osma et al 2015).…”

Section: Evidence On Contracting Efficiency As a Driver Of Conservatismmentioning

confidence: 99%

The implications of research on accounting conservatism for accounting standard setting

Mora

Walker

2015

Accounting and Business Research

Self Cite

112

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This paper provides a commentary on the academic literature on accounting conservatism with a view to highlighting the insights of that literature that are potentially useful for accounting standard setters. We begin by introducing the basic concepts of conservatism focusing on the distinction between conditional and unconditional conservatism. We then briefly discuss the objectives of financial reporting and the economics of information, paying particular attention to the role of stewardship in the Conceptual Framework, and the economic concepts of adverse selection and moral hazard. The two middle sections of the paper provide overviews of, respectively, the theoretical and empirical literatures on accounting conservatism. Having summarised the theoretical and empirical literatures, we then try to synthesis the implications of the literature for standard setters, paying particular attention to understanding the costs and benefits of conservatism, implications for the Conceptual Framework, highlighting the particular demands of public debt markets for conservatism, and explaining how accounting standards might be adapted to allow some degree of flexibility in conservative accounting choice. The final section discusses the limitations of the academic literature from the practical point of view of standard setters, and highlights areas for new research that may be of more direct value for policy-making.

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Section: Evidence On Contracting Efficiency As a Driver Of Conservatismmentioning

confidence: 99%

The implications of research on accounting conservatism for accounting standard setting

Mora

Walker

2015

Accounting and Business Research

Self Cite

112

View full text Add to dashboard Cite

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“…First, there is an endogeneity problem in that unionized firms may be inherently different from non‐unionized firms, which makes teasing out the effect of unionization on earnings management challenging. Second, negotiations between firms and unions over time may result in increased cooperation and transparency (García Osma et al., 2015), as well as confounding time‐series effects, which make capturing the association between unionization and earnings management less likely in a long‐run study. Third, in the case of accruals earnings management, there are inherent reversals in reported accruals; long‐term accruals earnings management is thus, by definition, not generally possible.…”

Section: Introductionmentioning

confidence: 99%

The effect of unionization on firms’ earnings management and employee compensation: Evidence from a regression discontinuity design

Lin

Brown

2022

Business Fin & Account

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This study examines the effect of unionization on US firms’ accruals‐based earnings management and future employee compensation expenses by employing a research design that overcomes the inherent endogeneity issue of the relationship between unionization and earnings management. First, by comparing firms that just pass unionization by a small number of votes to those that just barely lose elections, the regression discontinuity design estimations document significant downward accruals earnings management for firms that barely pass unionization, compared to those that barely fail to pass unionization. Second, the association between unionization and earnings management is only significant in US states without right‐to‐work legislation, where unions are more powerful. These findings are consistent with recently unionized firms’ incentives to report lower earnings in order to mitigate unions’ demands for greater employee compensation. Further, for firms that barely pass unionization, we find that: (1) unions cannot fully “undo” the effects of earnings management, that is, downward managed earnings depress future compensation expenses, and (2) firms cannot fully “undo” the effects of unionization, that is, compensation expenses increase after unionization despite the downward earnings management.

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“…Very few scholars discuss the human rights responsibilities of accounting standard setters and professional bodies (Paisey and Paisey 2012; McPhail et al. 2016).…”

Section: Data Analysis and Insightsmentioning

confidence: 99%

Accounting for Corporate Human Rights: Literature Review and Future Insights

ElKelish

2022

Australian Accounting Review

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This paper examines previous literature on accounting for corporate human rights (AHR) to identify the main research themes and development, conduct critical evaluations and open up new pathways towards future research. A structured literature review was conducted using 164 relevant published journal articles. Data were from the Scopus database over the last 22 years. The majority of research on AHR focuses on strategy/management and non‐discrimination themes, with little research in other areas such as child labour. Research in this field is at an early stage, with more focus on adoption and implementation issues. There is a need for more in‐depth and grounding analysis on the power networks among participants in broader institutional systems to provide more understanding of the underlying mechanisms. This paper discusses several suggestions such as alternative accounting and networking models to support the field, debates possible remedies to overcome drawbacks and presents options for future research. Several useful practical implications are provided for academics, corporate managers and regulators to bridge the gap between accounting and human rights practices and to enhance corporate social responsibility.

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Strategic Accounting Choice Around Firm-Level Labor Negotiations

Cited by 20 publications

References 68 publications

The implications of research on accounting conservatism for accounting standard setting

The implications of research on accounting conservatism for accounting standard setting

The effect of unionization on firms’ earnings management and employee compensation: Evidence from a regression discontinuity design

Accounting for Corporate Human Rights: Literature Review and Future Insights

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