Accounting report
Seyed Ali Hosseini; Shima Ahmadi; Hossein Seilsepoor
Abstract
Given the significance of sustainability reporting, there has been a notable increase in studies in this field. However, due to shortcomings in initial studies, it is not feasible to make decisions based solely on their findings. This research provides a comprehensive examination of the impact of corporate ...
Read More
Given the significance of sustainability reporting, there has been a notable increase in studies in this field. However, due to shortcomings in initial studies, it is not feasible to make decisions based solely on their findings. This research provides a comprehensive examination of the impact of corporate governance structures on sustainability reporting, based on the results of previous studies. Ownership structure, board of directors, management characteristics, corporate governance performance, and the quality of internal controls are identified as influential factors. While the research literature has reached a consensus on the impact of some factors, it has encountered contradictory findings regarding others.IntroductionIn recent years, the issue of sustainability has garnered global attention, becoming a central focus for many accounting researchers. International organizations have published sustainability reporting standards, and many stock exchanges worldwide now consider sustainability reporting a prerequisite for listing. Companies publish sustainability reports for various reasons, including transparency with stakeholders (Kuo et al., 2016), reputation (De Grosbois & Fennell, 2022), legal compliance (Harjoto et al., 2020), or alignment with emerging trends (Busco et al., 2019).However, due to the voluntary nature of sustainability reporting in many countries, concerns about the quantity and quality of this information persist. Since management often decides whether to publish sustainability reports, when to publish them, the publication platform, and the content and scope of the reports, voluntary disclosure, and impression management strategies provide significant opportunities for managers to obscure poor sustainability performance. Therefore, mechanisms are necessary to ensure that the information provided in sustainability reports is of high quality.Corporate governance mechanisms, such as ownership structure, ownership concentration, audit quality, and board composition and quality, play a critical role in reducing opportunistic behaviors by controlling and monitoring executive managers. Given the importance of corporate governance mechanisms for sustainability reporting, there has been a recent surge in studies exploring this relationship.However, early studies in this field are often limited by shortcomings such as researcher bias, small sample sizes, differences in legal frameworks, and contradictory findings. These limitations hinder the ability to make reliable decisions based on their results, highlighting the need for more comprehensive research. Accordingly, this study provides a systematic review of the impact of corporate governance structures on sustainability reporting, synthesizing findings from prior research.The main research questions are as follows:What are the most frequent keywords in the field of sustainability reporting over time?What are the most frequent keywords in the field of the relationship between corporate governance structures and sustainability reporting over time?which corporate governance mechanisms influence the adoption, quantity, and quality of sustainability reporting?MethodologyThis study is applied research and follows an interpretive paradigm. Aligned with this paradigm, a qualitative research methodology was chosen, incorporating systematic review and content analysis for data collection, as well as bibliometric analysis to identify trends in sustainability reporting research and leading authors in the field.The research sample comprises 47 international and 32 national articles published between 2013 and September 2023. Domestic studies were selected through keyword searches on the websites of journals approved by the Ministry of Science, while international studies were sourced from the ScienceDirect database. To enhance search sensitivity and comprehensiveness, various keywords, the "OR" operator, and truncations of selected keywords were employed in ScienceDirect. Both quantitative and qualitative research articles were reviewed. Following the example of other literature reviews (Han & Cohen, 2013:8), books and editorial notes were excluded, with only peer-reviewed articles considered. The latest version of the PRISMA checklist (2020) was used to guide the development of the review protocol.To identify hot research topics in sustainability reporting, research topics exploring the relationship between corporate governance structures and sustainability reporting, and the most prominent authors in the field, bibliographic analysis, and VOSviewer software were utilized.Results and DiscussionExamining the hot topics in sustainability reporting has revealed that corporate governance structures have been among the most significant areas of focus in recent years. Bibliographic analysis indicates that mechanisms such as the board of directors, assurance, and risk management have been key topics of interest for authors.A review of past studies shows that factors such as ownership structure, board of directors, management characteristics, gender diversity, corporate governance performance, assurance, monitoring and accountability, corporate risk, and internal control quality significantly affect the adoption, quantity, and quality of sustainability reports. For example, ownership structure encompasses institutional ownership, internal ownership, foreign ownership, ownership concentration, the relative power of minority shareholders, shareholder identity similarity, state ownership, capital market acceptance, family ownership, fund ownership, and ownership by other companies. Similar detailed categorizations exist for other factors.Most studies have focused on the influence of corporate governance mechanisms on the adoption of sustainability reporting, while fewer have examined their impact on report quality. There is a consensus among researchers on the impact of certain governance mechanisms, such as board size and independence, sustainability committees, managerial compensation, and gender diversity, on sustainability reporting. However, regarding the influence of other factors, the research literature contains contradictory findings. Additionally, for some factors, such as the number of managers, managers’ religious attitudes, and audit fees, the limited number of studies makes it difficult to draw definitive conclusions. Information on measurement indicators based on sample studies is also provided, aiding researchers in measurement purposes.Given the widespread impact of corporate governance structures on sustainability reporting, governments, and regulators should implement initiatives to influence board structures and other corporate governance mechanisms. The findings suggest that investors seeking to maximize their returns should invest in companies with strong corporate governance structures. This study enhances the understanding of managers, regulators, and stakeholders regarding the role of corporate governance in sustainability reporting and provides valuable insights for regulators and policymakers concerned about achieving sustainability reporting goals.By summarizing the impact of corporate governance structures on sustainability reporting, this study identifies gaps in the research literature and mechanisms requiring further investigation. Additionally, juxtaposing findings from domestic and international studies, it highlights cultural differences in the effects of corporate governance mechanisms. Analyzing the findings of this study while considering its limitations is crucial. Existing studies in the research sample employed various measures to assess the quality and extent of sustainability reporting. The documentation reviewed as sustainability reports also varies. For instance, some researchers analyzed sustainability reports, while others examined information provided on company websites. Domestic researchers, due to the lack of sustainability reports published by companies listed on the Tehran Stock Exchange, have relied on analyzing board reports and financial statements to assess the extent and quality of sustainability reporting. Since measurement procedures affect the results obtained and, consequently, the findings of this study, these limitations must be considered when interpreting the results. ConclusionThe analysis of contradictory findings can be explained by considering management motives, organizational maturity levels, organizational structure, and institutional factors affecting the organization, such as industry type, country of operation, and regulations. Therefore, using standardized measures for companies operating in diverse institutional contexts is unlikely to be effective.
Accounting and various aspects of finance
Amir Moradi; hamideh asnaashari; Mohammad Hossein Rohban; Mohammad Arabmazar Yazdi; MohammadHosien SafarZade
Abstract
Design Science Research Methodology (DSRM) is a solution-oriented approach for conducting research that transcends mere understanding of existing situations, aiming to generate innovative and novel artifacts to realize desired outcomes. Despite its widespread use in other technical and managerial domains, ...
Read More
Design Science Research Methodology (DSRM) is a solution-oriented approach for conducting research that transcends mere understanding of existing situations, aiming to generate innovative and novel artifacts to realize desired outcomes. Despite its widespread use in other technical and managerial domains, and more than two decades since the first exploration of DSRM in accounting literature, its true potential went largely unrecognized until the recent years, when it gained unprecedented recognition from accounting researchers. In this pioneering research, we analyze trends, identify influential figures, and map the intellectual and conceptual landscape of accounting research related to DSRM. Utilizing co-word analysis, co-authorship techniques, as well as scientific mapping and word cloud visualization, we scrutinize 51 articles from journals indexed in the most recent Australian Business Deans Council (ABDC) list from 2023. Our findings reveal that more than half of the research output is concentrated in the four-year period spanning from 2020 to 2023, signaling a growing interest among accounting researchers in this methodology. The dominant subject areas in design science articles are audit and control, coupled with the integration of emerging technologies and data analytics techniques. The most cited work is Guido Geerts (2011) paper, "A design science research methodology and its application to accounting information systems research" with 140 citations in the Scopus database alone. The most prolific author, Miklos Vasarhelyi, has authored six articles and boasts the most scientific connections with other researchers in this field. The State University of New Jersey, USA, where Vasarhelyi is affiliated, stands as the most prolific institute with eight articles. Guido Geerts receives 177 references from his two articles, earning him the title of the most cited author in the realm of design science in accounting research, while the University of Delaware, where he is affiliated, is also the most cited university. Among countries contributing to this field, the United States leads with the highest number of productive articles and references, totaling 33 articles and 555 references. The International Journal of Accounting Information Systems has published the most articles (20) and received the most references (464). The findings of this research illuminate bibliographic factors, relationships, and thematic orientations within design science research in accounting. They inform researchers and policymakers about the current status and trajectory of this methodology, providing a foundation for the advancement of solution-oriented and applied research in the field of accounting. IntroductionApplied research that seeks solutions to practical issues cannot be pursued through natural science research methods as they aim to design and implement solutions to improve the current situation. For this purpose, the methodology of design science (Simon, 1996) was introduced. Although accounting is a practical field of knowledge, this methodology is less known and utilized in accounting, until the last five years, when it was embraced by accounting and auditing researchers. Thus, in this study, we investigate the bibliometric factors and trends in accounting research using the design science research methodology (DSRM) to answer the following questions:RQ1: What are the main topics of articles related to design science research methodology?RQ2: What are the emerging topics in design science research in accounting?RQ3: Which are the most cited articles, the most prolific authors, the most prolific universities, the most prolific journals, and the most prolific countries in DSRM in accounting?Literature reviewDSRM is a research methodology that focuses on problem-solving (March & Storey, 2008), and its purpose is to create and evaluate artifacts that are used to solve organizational problems through transforming the current state into a desired state (Hevner et al., 2004; March & Smith, 1995; March & Storey, 2008). Considering the focus of this science on problem-solving, the application of design science research can potentially reduce the existing gap between theory and practice (Aken, 2004, 2005; Romme, 2003). MethodologyBibliometric analysis is the application of quantitative techniques (e.g., citation analysis) to bibliometric data (e.g., publication and citation units) (Broadus, 1987; Pritchard, 1969). Researchers apply bibliometric analysis for various reasons, such as discovering emerging trends in the performance of articles and journals, collaboration patterns among authors and research components, and discovering the intellectual structure of a specific field in existing literature (Donthu et al., 2021).In this research, in the first step, the Scopus database was used due to the inclusion of more scientific documents than other databases (Echchakoui, 2020). Then, the relevant keywords were identified and selected, and by setting the query phrase, applying it to the Scopus database and performing the necessary filters, a total of 58 articles from the journals ranked in 2023 rankings by the Australian Business Deans Council (ABDC) were obtained. This number decreased to 51 articles as the basis of analysis after reviewing the content by the authors and discarding unrelated articles. In this research, the VOSviewer software (Eck & Waltman, 2021) was chosen for bibliographic data analysis and visualization. Also, the matplotlib and wordcloud libraries in Python programming language were used for drawing wordcloud, and Microsoft Excel software was used for drawing trend charts.ResultsOur findings reveal that approximately half of the research output is concentrated in the four-year period from 2020 to 2023. The dominant subject areas in design science articles are audit and control, coupled with the integration of emerging technologies and data analytics techniques. The most cited work is Geerts (2011) paper, ‘A design science research methodology and its application to accounting information systems research’ with 140 citations in the Scopus database alone. The most prolific author, Miklos Vasarhelyi, has authored six articles and boasts the most scientific connections with other researchers in this field. The State University of New Jersey, USA, where Vasarhelyi works, stands as the most prolific institute with eight articles. Geerts (2011) receives 177 references from his two articles, earning him the title of the most cited author in the realm of design science in accounting research, while the University of Delaware, where he is affiliated, is also the most cited university. Among countries contributing to this field, the United States leads with the highest number of productive articles and references, totaling 33 articles and 555 references. The International Journal of Accounting Information Systems has published the most articles (20) and received the most references (464).DiscussionThe recently observed surge in publications indicates a growing interest among accounting researchers in this methodology. However, auditing literature hosts more DSR research (nearly half) than financial accounting and other branches. According to co-word analysis results, the design of auditing artifacts based on emerging technology is the predominant research trend, pursued by researchers to enhance audit quality and integrate emerging technologies into the auditing practice. These trends suggest an increasing emphasis on advanced audit and tech research in the future, with a focus on robotic process automation, analytics, and machine learning. In terms of actors at the levels of author, institution, and country, dominance lies with American contributors. Notably, journals that accept DSR papers are primarily technology-related, and mainstream accounting journals, such as The Accounting Review, have not yet embraced this research paradigm.ConclusionThis is the first attempt in accounting literature to conduct a bibliometric study on the research method known as DSR. Given the practical nature of accounting and the criticisms of low practical relevance of accounting research, scholars in the field have turned to DSR in recent years to undertake problem-solving inquiries through the design and evaluation of artifacts. Prospective researchers can benefit from examining seminal and highly cited papers and exploring current hot topics identified by this study to become acquainted with applying this research methodology and selecting trending topics for further inquiries.
Accounting and various aspects of finance
Mohamad Marfo; Mohammad javad Salimi; Iman Raeesi Vanani; Mojtaba Alifamian
Abstract
Purpose: The rapid development of technology and extensive environmental changes have accelerated economic growth, and the increasing competition among enterprises has restricted access to profit and increased the probability of enterprises ' financial distress. Due to the effects of high costs of financial ...
Read More
Purpose: The rapid development of technology and extensive environmental changes have accelerated economic growth, and the increasing competition among enterprises has restricted access to profit and increased the probability of enterprises ' financial distress. Due to the effects of high costs of financial distress, its prediction has attracted the attention of researchers since the beginning. Therefore, this paper aims at a bibliometric analysis of financial distress research in the accounting, management and economic areas. Design/methodology/approach: The research method is based on a three-step protocol of dataset setting, dataset refining, and analyzing the data. First, the published articles in the financial distress field were collected from the Web of Science database. Second, the document information was refined, and 801 articles were chosen for literature review in this area. Finally, we used the bibliometric analysis toolbox to investigate the documents. Also, bibliometric analysis in this research was conducted using VOSviewer software. Findings: The findings of this research indicate the existence of six main streams of research (methods of predicting financial distress, predictors of financial distress, restructuring strategy, corporate governance, bank bankruptcy and earnings management) in the field of financial distress. Additionally, the results highlight the importance of social responsibility of the company, also demonstrate that improvements in technology, particularly the use of artificial intelligence tools, have enhanced predicting accuracy. IntroductionIn the life cycle of any company, while there are many opportunities for growth, prosperity, and success, there are also situations where the company may face decline, crisis, and failure. Theoretically, it is assumed that business companies operate indefinitely with the aim of making a profit.However, in the modern era of the global economy, companies not only become significantly more established but also face financial distress more frequently than in the past. In other words, due to globalization and the integration of national economies, the incidence of business failures and bankruptcies has risen. Financial failure is not an instantaneous event but a dynamic and generally lengthy process that affects the company's capital structure, investment policies, and performance. Therefore, identifying the factors of financial distress enables the prediction of an enterprise's financial distress.Identifying the factors influencing the financial distress of companies, firstly, enables the taking of appropriate actions by providing necessary warnings. Secondly, investors can distinguish favorable investment opportunities from unfavorable ones and invest their resources in situations and places where they are less likely to lose money.Given the importance and effects of financial distress and the high rate of failure of current businesses, a literature analysis in this area appears necessary. A review of the literature in the field of financial distress uncovers a multitude and variety of topics in past research. Thus, it is crucial to conduct a systematic review of past research to understand its intellectual structure. Moreover, the keywords used in past research represent the field’s main ideas and topics. Therefore, this study is going to draw the intellectual structure of financial distress research through quantitative techniques of co-word analysis, citation, co-citation, bibliometric, and co-authorship analysis. Research Question(s)This research, employing bibliometric analysis, reviewed the literature on financial distress in the fields of accounting, management, and economics. It also analyzed the content of articles in this field to answer the following questions:RQ1. What is the trend of publications in financial distress research?RQ2. What is the citation structure in the financial distress research?RQ3. What are the fundamental streams of financial distress research?RQ4. What are the emerging themes in the financial distress research? MethodologyThe research method is based on a three-step protocol: dataset setting, dataset refining, and analyzing the data. First, the published articles in the financial distress field were collected from the Web of Science database. Second, the document information was refined, and 801 articles were chosen for literature review in this area. Finally, we used the bibliometric analysis toolbox to investigate the documents. Additionally, bibliometric analysis in this research was conducted using VOSviewer software. ResultsOur findings indicate an increasing trend in the number of research studies on financial distress literature over the past six years, with approximately 54% of articles published during this period.We also document that "In Search of Distress Risk" is the most cited paper, receiving 881 citations in the Web of Science database; "Altman" is identified as the most influential author; and the USA emerges as the most influential country in this research field. This predominance can largely be attributed to the fact that most journals indexed in the Web of Science in the fields of accounting and finance are associated with the United States. Consequently, it is evident that the publication of articles by universities and researchers based in this country is more prevalent than in other countries worldwide. The findings of this research reveal the existence of six main streams of research: methods of predicting financial distress, predictors of financial distress, restructuring strategy, corporate governance, bank bankruptcy, and earnings management in the field of financial distress. Additionally, the results of the research not only underscore the importance of a company’s social responsibility but also highlight how technological advancements, particularly the use of artificial intelligence tools, have enhanced the accuracy of financial distress predictions. Discussion and ConclusionIn this study, first, the evolution of literature in this field has been reviewed through bibliometric analysis over the last four decades. Secondly, from a performance perspective, the indicators related to the article, citation indicators, and combined article and citation indicators have been examined. Additionally, scientific mapping of articles in this field has been conducted through citation analysis, co-citation analysis, co-authorship analysis, and co-word analysis. Finally, clustering and content analysis of the articles in this field have been performed.First, performance analysis was conducted to answer the first two research questions. The research findings confirm that during the last four decades, the literature on financial distress has significantly grown. Examining the growth trend of the articles’ number indicates the effect of changes in the business environment on financial distress. Thus, this trend shows an increase in the number of articles from 2010 onwards, the reason for which is attributed to the financial crisis of 2008, which caused many companies to face financial distress due to the impossibility of financing. Additionally, the trend of published articles shows a significant increase in articles during the period of COVID-19 and after (2020, 2022, 2023). The limitation caused by this public crisis (COVID-19) has increased the possibility of financial distress for companies, and many researchers have investigated this issue. Secondly, to examine the third question of the research, co-citation and bibliographic coupling analysis have been used. As indicated in the mentioned findings section, the studies conducted can be classified into three clusters: predicting financial distress, which is mainly based on accounting data criteria; a cluster of default risk and systematic risk, which provides information about the prospects of the company and the volatility of assets; and finally, the cluster of restructuring strategies, which includes studies that seek to exit this cycle of financial distress using these strategies. The Bibliographic coupling analysis indicates that six main streams of research (financial distress prediction methods, financial distress prediction factors, restructuring strategy, corporate governance, bankruptcy of banks, and earnings management) exist in the financial distress field.Thirdly, the co-word analysis was conducted to answer the fourth question of the research. The increase in the frequency of the words ‘machine learning’ and ‘social responsibility of the company’ in recent years indicates the development of advanced techniques and models in data mining. This development has become so widespread that a large number of research papers are published every year in many fields, including finance, using techniques and algorithms of artificial intelligence and machine learning. Additionally, regarding social responsibility, this trend suggests the primary purpose of enterprises has shifted from profit maximization to increasing shareholder wealth and protecting the interests of other stakeholders, including society and the environment. Therefore, it is expected that future studies will focus increasingly on social responsibility and sustainability.
