PurposeThe purpose of this paper is to examine the impact of greater reporting prominence of translation results following Accounting Standard Update (ASU) 2011-05 on net investment (NI) hedging practice. The authors investigate the role of increased transparency on the decision to engage in NI hedging (participation), the degree of NI hedging (level) and the hedging vehicle choice.Design/methodology/approachThis paper uses the Heckman two-stage procedure (Heckman, 1979) in the hedging choice analysis. In the first stage, the authors model the participation decision as a function of reporting transparency, translation results and other control variables. In the second stage, the authors include the Inverse Mills ratio from the first stage Probit to examine both the level and vehicle choice decisions.FindingsWhen translation is reported more prominently, the authors find an increase in the level of NI hedging and a greater likelihood of debt as the hedging vehicle, but no evidence firms are more likely to hedge. Regardless of where translation results are reported, firms facing ongoing translation losses are more likely to hedge.Research limitations/implicationsThis paper examines S&P 500 firms in the years surrounding the effective date of ASU 2011-05. The findings suggest managers respond to the increase in reporting transparency by increasing hedging for long-term risk management purposes, supporting accounting authorities’ efforts to promote other comprehensive income information transparency. The results should hold for comparable firms with similar currency exposure, size and visibility, but may not apply to smaller firms with limited translation exposure. As only about a quarter of firms with translation exposure engage in NI hedging, the primary results are based on a relatively limited number of firms.Originality/valueTo the best of the authors’ knowledge, this is the first study that examines NI hedging behavior changes following ASU-2011-05. Second, the authors are the first to explore why firms are almost equally split between derivatives and debt as their exclusive hedging vehicle.

Penelitian ini bertujuan untuk menguji Pengaruh Intellectual Capital Dan Working Capital Turnover Terhadap Profitabilitas (Studi Kasus Pada Perusahaan Manufaktur Sub Sektor Tekstil Dan Garmen yang terdaftar di Bursa Efek Indonesia Tahun 2016-2020). Populasi dalam penelitian ini sebanyak 21 perusahaan. Metode pengambilan sampel yang digunakan yaitu purposive sampling sehingga diperoleh sampel sebanyak 14 perusahaan selama periode pengamatan 5 tahun sehingga menjadi 70 sampel. Teknik analisis data yang digunakan adalah Analisis Regresi Linier Berganda. Hasil penelitian menunjukkan bahwa Intellectual Capital berpengaruh positif dan signifikan terhadap Profitabilitas, Working Capital Turnover berpengaruh positif signifikan terhadap Profitabilitas, dan secara simultan Intellectual Capital dan Working Capital Turnover berpengaruh signifikan terhadap Profitabilitas. Keywords: Intellectual Capital, Working Capital Turnover, Profitabilitas

This study aims to determine the implementation of taxcollection to increase personal income tax revenue whether there is abig effect after billing individuals’ domestic private person. Taxeshave a very large role in generating domestic cash receipts in order torealize continuity and increase in national development. The methodused in this research is a quantitative method with a descriptiveapproach and the data used is secondary data. The results of the studyshow that partially Billing does not have a significant effect onIndividual Income Tax Receipts. Keywords: Implementation of Tax Collection, Increasing IndividualIncome Tax Revenue

Purpose This study aims to investigate the impact of the adoption of international accounting and auditing standards on corruption perception. In addition, this study examines the strength of auditing and reporting standards (SARS) that mediate the relationship. Design/methodology/approach Agency theory and bonding theory were applied in this paper to investigate the impact of the adoption of international accounting and auditing standards on corruption perception. Data from 130 countries during three years were collected from Transparency International, Worldwide Governance Indicators, International Federation of Accountants, World Economic Forum, World Bank, Freedom House and World Justice Project. Hypotheses were tested using partial least squares structural equation modeling. Findings The results show a positive impact of the adoption of international accounting and auditing standards on corruption perception, directly and indirectly, through the SARS. Practical implications The results provide an insight into corruption eradication strategy through the adoption of international accounting and auditing standards and strengthen the auditing and reporting standards. Originality/value This study is distinctive, as no study has yet examined the impact of the adoption of international accounting standards construct, which contains International Financial Reporting Standards and International Standards on Auditing, on the corruption perception. The corruption perception construct is developed by combining the corruption perception index and the control of corruption indicators.

The integration of Big Data and accounting IT solutions and smart devices have invaded our business, academic and personal lives.Massive volumes of data are stored as structured and unstructured every day and trillions of gigabytes of data are created around the hour.Internet-of-Things and machine learning convert almost everything to be smart, creating an unprecedented amount of data in different formats quickly.Consequently, the "Big Data" terminology has emerged during the last 10-15 years.Big Data can be defined as "A massive amount of data streaming in different formats from several sources and requires advanced analytics to be analysed to provide credible valuable insights in real-time."Unlike traditional data, Big Data has several dimensions known as "Vs" such as volume, velocity, variety and veracity.Volume refers to the quantity and volume, Velocity refers to the speed at which data is created, analysed and stored, Variety refers to the diversity of data sets, whereas Veracity refers to producing credible and free from error outcomes (Alles, 2015;Warren et al., 2015;Zhang et al., 2015).However, a primary challenge of Big Data is that the traditional data analytics and information systems are not able to process such a vast amount and timely streaming data.Big Data sets need advanced analytics, storage solutions, complicated algorithms, advanced artificial intelligence (AI) solutions and other mathematical models to get valuable insights.The technology companies such as Google and IBM provide advanced Big Data solutions from time to time to enable companies to extract valuable insights from processing Big Data, especially the unstructured part.Big Data is a fortune for those who know how to use it properly.However, diversified analytics are needed, such as predictive, descriptive and prescriptive analytics.We believe in a straight and direct relation between Big Data and accounting.Data is the heart of accounting.Accountants need data to meet different financial reporting requirements, assess and manage risks, measure the performance, prepare corporate budgets and apply activity-based techniques.At the age of Big Data, accountants have challenges dealing with massive amounts of available data.The same challenges apply to auditors.How could auditors review and audit an enormous volume of transactions for a big company like Amazon?It is argued that Big Data solutions could help auditors to audit the whole population rather than taking a sample, which could increase the audit assurance level to 100%.On the other hand, some accounting techniques may suffer from data limitations or inaccurate predictions and estimations, such as ABC, Corporate Budgeting and risk measurement.Big Data predictive analytics could increase the accuracy of these techniques.The big question is how Big Data could improve the outcomes of these accounting techniques?Big Data as technology is argued to help improve the financial reporting quality (Al-Htaybat and Alberti-Alhtaybat, 2017), the efficiency of performance measurement techniques, the audit quality, the assurance level, and the reliability and sufficiency of audit evidence (Brown-Liburd et al., 2015), besides the effectiveness of risk assessment and measurement, and the prediction and accuracy of corporate budgeting.However, empirical evidence to support these arguments is required.The primary objective of this special issue is to shed light on the potential integration of Big Data and accounting and auditing.We believe that these special issue articles will encourage and stimulate an academic investigation and research on Big Data and accounting among researchers, practitioners and Big Data fans.The following are some ideas and conclusions of the special issue five articles.

PurposeThis study aims to investigate the relationship between board diversity and financial performance from a wide perspective, including multiple dimensions of board diversity.Design/methodology/approachThe cross-sectional design of the FTSE 350 companies in the period of 2013–2019 was adopted in this study. Data were collected using the Thomson Reuters Eikon and BoardEx databases and analyzed via ordinary least Squares (OLS) regression.FindingsBoth gender and skill diversity positively affect financial performance. However, other dimensions of diversity, including board tenure, education and network, have no significant influence on financial performance. On the other hand, nationality diversity negatively affects financial performance, and the gender diversity of executive directors negatively affects market-based performance. The results remain unchanged after considering endogeneity concerns and using alternative measures of financial performance.Practical implicationsThis study provides useful insights into the importance of board diversity and its implications for firm performance, which can help in the development of future regulations and policies, such as female representation on the board. The findings can also guide companies toward the best way of diversifying their boardrooms in different aspects.Originality/valueThis study extensively investigates board diversity, including gender, tenure, skill and education, network and nationality, using the lens of the resource dependency theory. It also extends the scope of the study to examine some characteristics of executive directors, including gender and age. The evidence is provided from one of the leading countries in regulating corporate governance (CG), i.e. the UK.

PurposeThe purpose of this paper is to investigate in-depth and explain the issues related to the experience of Tunisia, a developing country, in its attempt to move from Euro-Continental rule-based generally accepted accounting principles (GAAPs) to an accounting system adapted to international financial reporting standards (IFRS).Design/methodology/approachThe study is conducted via a qualitative methodology based on a content analysis of primary data from interviews with key actors involved in financial reporting in Tunisia.FindingsFindings reveal that local Tunisian GAAPs, adapted to IFRS in their 1996 version, failed to establish a financial reporting accounting culture and meet public-interest firms’ informational needs. This is mainly related to factors, such as the simplified methods adopted (generally adequate to the identified needs of users of small and medium-sized entity financial statements) and the hybrid aspect of the Tunisian accounting standards due to the co-existence of Euro-Continental and Anglo-Saxon parties. Moreover, the findings show that the lack of political willpower and the absence of updates to changes in IFRS have compromised the proper functioning of standardization and control structures.Practical implicationsThe study’s results may interest regulators and policymakers of many developing countries that have not pursued the harmonization of their local GAAPs with IFRS. In addition, findings from the research provide insights into the rough road towards harmonization, the dysfunctions of the latter and delays in developing countries.Originality/valueThe research highlights the complexity for an emerging country with Euro-Continental accounting traditions to move to IFRS.

PurposeThis paper aims to investigate firm-level variations in the extent of mandatory disclosures and address the drivers of mandatory disclosure using data from the Gulf Co-operation Council (GCC) region.Design/methodology/approachThe extent of mandatory disclosure is examined using a disclosure index created with reference to 24 International Financial Reporting Standards (IFRSs).FindingsThe authors find that the extent of mandatory disclosure required by applicable IFRSs/International Accounting Standards increases with international presence, group firms, the level of voluntary disclosure, firm age and the education level of company financial controllers. It decreases with firm size and the proportion of institutional share ownership. The degree of board independence is positively related to the level of mandatory disclosure in firms with no state ownership. Profitability positively affects the level of mandatory disclosure to a greater extent in more liquid GCC firms. The results confirm that there is a greater sensitivity of mandatory disclosure to loss than to profit. Loss increases, whilst profit decreases, the extent of mandatory disclosure.Research limitations/implicationsThe results promote further understanding of international financial reporting differences in an emerging country setting.Practical implicationsThe findings provide a detailed insight to investors, financial analysts, practitioners and academics.Originality/valueThe authors develop a highly granular mandatory disclosure index in a developing country setting and identify key drivers of such disclosure.

PurposeThe purpose of this study is to examine the effects of flexibility as a coping mechanism for reducing the negative impact of job stress on the accounting profession.Design/methodology/approachData were collected using a survey questionnaire sent by mail to accounting professionals in Tunisia. A total of 200 responses were examined using a structural equations modeling procedure.FindingsThe results indicate that flexibility attenuates the negative effects of job stress by improving job performance and job satisfaction among accounting professionals. Also, flexibility has a significant and positive association with psychological well-being. The results demonstrate that role ambiguity and overload have a positive influence on job burnout, which supports the argument that role stressors are antecedents of burnout in the accounting profession.Practical implicationsThis study’s results help the accounting firms to reduce job stress by offering work flexibility to employees. Also, the results have significant implications for accounting professionals who are concerned with the consequences of job stress and the coping mechanisms that can diminish these consequences.Originality/valueThis study contributes to the behavioral accounting literature by examining flexibility as a coping strategy within the job stress model in an emerging country (Tunisia).

PurposeThis study aims to examine the factors affecting intellectual capital disclosure (ICD), especially in the agriculture and mining sectors in Indonesia and Thailand. Additionally, this study discusses the difference in ICD levels between Indonesia and Thailand.Design/methodology/approachThe sample used is companies listed on the Indonesia Stock Exchange and Stock Exchange of Thailand from 2013 to 2017. The method used is a content analysis of 380 annual reports (150 from Thailand and 230 from Indonesia). This study uses a panel regression model. Variables tested are firm size, market shares, minority shareholders, profitability, leverage and the focus on ICD components such as human capital disclosure, structural capital disclosure and relational capital disclosure.FindingsIC disclosures in financial statements are generally oriented to past events and focus more on the human capital component. Overall, ICDs in Thailand are more qualified than in Indonesia. The findings support the stakeholder and legitimacy theories. It was found that the greater the company’s resources, the higher the quality of disclosure of all intellectual capital (IC) components. Conversely, when associated with the position in the market, companies reduce the disclosures. As the company has gained the government’s legitimacy, management’s passion for revealing more about its ICD is diminishing.Research limitations/implicationsThis study focuses on the agriculture and mining sectors in Indonesia and Thailand. The annual report is the primary medium to observe IC in qualitative and quantitative ways, yet firms would use other means to disclose their IC. This study deploys the content analysis method, in which the determination of scores is based on the researchers’ judgment.Originality/valueThis study contributes to the ICD-related literature by focusing on the agriculture and mining industries and multinational scopes. The ICD valuation is extended to the quality of disclosures, in which numerical and monetary figures also support the disclosures. This study also examined minority shareholders’ role in ICD quality, which is infrequent in ICD literature.