Category Archives: RESEARCH ARTICLE

Mandatory inclusive finance policy and small banks’ operating performance: Evidence from China

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Abstract

We take the mandatory establishment of the Inclusive Finance Division in large state-owned banks as a quasi-experiment to explore the impact of inclusive finance policy on operating performance and risk-taking behaviours of small regional banks. Using financial information for Chinese banks from 2013 to 2019, we find that small regional banks' performance deteriorated, and they engaged in more risk-taking activities after the policy shock. Moreover, there are even much sharper performance declines in subsets of city commercial banks, and banks face high competition from large state-owned banks.

How impact investing firms use reference frameworks to manage their impact performance: An industry‐level study

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Abstract

Using meaning-oriented content analysis, we show how impact investing firms use various reference frameworks (e.g., International Finance Corporation (IFC) Performance Standards, Impact Management Project framework, UN Sustainable Development Goals) to manage their impact performance throughout the investment lifecycle. Our study provides an industry-level picture of the various roles that different reference frameworks play to help impact investors attain their impact goals. We also discuss the potential industry effects on management accounting practice, that is, how reference frameworks used in performance management in the impact investing industry differ from those used in some other industries.

Accounting for waste: Waste reporting in Australian metals and mining companies

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Abstract

Australian metals and mining companies are the focus of this study because mining activities are a significant source of waste products on a global scale, and to date, there has been no systematic review or comparison of how these companies report their waste management practices. Recognising that waste management is an important issue with future implications, this study is guided by one primary research question: What is the nature and extent of waste management disclosures by the top metals and mining companies in Australia?

Comments of the AFAANZ Auditing and Assurance Standards Committee on Proposed International Standard on Auditing 500 (Revised) Audit Evidence

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Abstract

The International Auditing and Assurance Standards Board (IAASB) issued for public comment Proposed International Standard on Auditing 500 (Revised) Audit Evidence. The Australian Auditing and Assurance Standards Board (AUASB) and New Zealand Auditing and Assurance Standards Board (NZAuASB) also called for comments. The Auditing and Assurance Standards Committee of AFAANZ prepared a submission, based on the findings reported in extant research, responding to a number of the questions asked by the IAASB (and AUASB/NZAuASB). This technical note presents the formal submission made to the IAASB.

Decentralising for local information? Evidence from state‐owned listed firms in China

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Abstract

This study investigates the effect of decentralisation of SOEs on stock price crash risk. In so doing, we test two competing hypotheses. Under the Political Influence Hypothesis, decentralisation aggravates local government's expropriation of minority shareholders (type II agency conflict), and thus increases crash risk. Under the Local Information Hypothesis, decentralisation decreases monitoring distance (type I agency conflict), strengthens external monitoring and thus decreases crash risk. We find robust evidence supporting the Political Influence Hypothesis. Cross-sectional analyses show that our baseline results are more pronounced when firms are decentralised to the provincial level and politicians have greater incentives to pursue their political objectives. We further show that bad news hoarding and risk-taking are two potential channels through which SOE decentralisation increases crash risk. Taken together, our results imply that the decentralisation exacerbates the type II agency conflict rather than ameliorates the type I agency conflict in SOEs.