New issue of risk governance and control: Financial markets & institutions journal
The recent (Volume 9, issue 1) issue of Risk Governance and Control: Financial Markets & Institutions journal deals with the topics of accounting, accounting fraud, taxation, firm performance, etc. The full issue of the journal is available following the link.
Marco Tutino, Matteo Merlo aim at explaining the main features of accounting fraud across an examination of the current literature by putting the environment and the different ways to prevent fraud under a microscope. The study analyses in five steps how corporate governance, ethical behaviour, accounting manipulation, detection techniques and forensic accounting are related to fraud.
George Drogalas, Grigorios Lazos, Andreas Koutoupis, Michail Pazarskis evaluate the IFRS adoption on the financial statements and taxation of Greek companies at the construction industry in Greece, which are listed at the Athens Stock Exchange. The research computes the taxation amount paid and employs twelve accounting measures for the analysis of financial statements for the IFRS transition period (three years before and after their adoption in Greece).
Hamed Amira, Bin Qoud Nuha provide a framework of how conditional conservatism contributes to the reduction of creative accounting which in turn affects auditor fees, litigation risk, auditor independence and improved auditing quality. All these factors are reflected in the degree of stakeholders’ confidence in financial reports. The absence of conservatism in the Financial Accounting Standards Board’s (FASB) conceptual framework is due to its belief that conditional conservatism causes a bias in accounting information and that it compromises neutrality.
Ahmed S. Alanazi investigates the link between corporate governance scores and firm performance among the largest 90 listed companies on the Saudi Stock market. The sample of 90 listed firms is split into two samples: firms with high governance scores and firms with low governance scores. The research compares and contrasts the operating performance of the two samples. In addition, regression models are used to test the link between governance scores and performance.
Christos Kallandranis applied dynamic-panel model in order to empirically investigate the relationship between business fixed investment and Tobin’s q for the firms listed in the Athens Stock Exchange (ASE). In particular, we search for non-linearities in the underlying relationship between investment and fundamentals, consistent with the presence of multiple regimes. The empirical results support a discontinuity identifying two-regimes: (a) wherein the first (for values of q below a certain threshold) investment is inelastic to q, while in the second it exhibits a positive relationship, and b) a further non-linearity expressed in a concavity of the investment- q relationship implying that for the segment where investment reacts to fundamentals positively, it does so at a decreasing rate evidence which is consistent with the presence of non-convexities in adjustment costs.
Yosuke Kakinuma aims at analyze a time-varying relationship between corporate governance and expected stock returns in Thailand. The time variation of corporate governance premium is estimated by macroeconomic determinants using a two-state Markov switching model. The results indicate the presence of asymmetries in the variations of corporate governance premium over the Thai economic cycles. Investors can take advantage of the time-varying characteristics with the adaptation of switching investment strategy.
The Journal of Risk Governance and Control: Financial Markets & Institutions is published quarterly. Currently, we announce a call for papers for the next issue of the journal. In order to submit a manuscript, please contact the managing editor of the journal Polina Bahmetenko directly at p.bahmetenko@virtusinterpress.org
