Search Results (18)

Digital tax reforms are implemented through staged, publicly announced milestones, yet policymakers rarely have timely indicators of whether these signals mobilize information-seeking and whether such demand can be anticipated for operational planning. We analyze monthly Google Trends series for Greece’s myDATA/e-invoicing rollout (2016–present) using preregistered event study models that separate step changes from post-event trend shifts with HAC-robust inference, and we evaluate 1–3-month predictive performance via rolling-origin cross-validation against a seasonal-naïve benchmark. Search-based attention shifts appeared most clearly in application-related queries: invoicing app terms spike around visible rollout phases (≈+34 to +38 index points over six months) and decline around VAT–myDATA alignment (≈−34 to −43). Ecosystem attention (the “Electronic invoicing” topic) exhibits large, opposite-signed movements (≈−53 around public-sector expansion; ≈+46 around VAT alignment), whereas platform terms show smaller and less regular responses; a back-office milestone produces no detectable change. In out-of-sample tests, event-aware regressions improve short-horizon accuracy for platform terms (≈40–50% MAE reduction at one month; ≈18–32% at two to three months), with series- and horizon-dependent results elsewhere. Overall, the evidence supports using search activity as an intermediate planning signal—informative about when and where guidance demand concentrates but not evidence of compliance. Full article

This article addresses a major challenge in circular economy accounting: assessing the social dimension, particularly social ties, which are often immaterial and difficult to capture. It examines a case study of how a local project managing organic waste and unsold goods fosters social ties in a priority urban neighborhood in France, and how these dynamics can be apprehended through an alternative qualitative accounting approach. The study draws on an ethnographic case of the MatOrGa project, combining participant observation, semi-structured interviews, discourse grounded analysis, and actor and flow mapping. Situated within counter-accounting and critical accounting, the research emphasizes social ties that extend beyond purely economic logic, spanning social, ecological, and economic dimensions. The new concept of counter-accounting utterances is introduced to describe empirical accounts that make visible practices, relationships, and social effects often overlooked in conventional accounting and sustainability reporting. The study shows how ethnography can function as a form of counter-accounting, producing qualitative representations of social impact that resist standardization. The findings advance social and sustainability accounting by offering a situated and reflexive approach to assessing the social impact of circular economy initiatives, while also opening the way for context-sensitive non-financial reporting. Full article

Background: This paper is a systematic review of 100 peer-reviewed articles (2015–2025) related to artificial intelligence (AI) applications in the auditing field, and includes machine learning, natural language processing, robotic process automation, and other AI methods. Purpose: The paper delves into the integration of these AI technologies into the audit workflow; empirical implications of these technologies on audit effectiveness; efficiency and quality; and technical, organizational, and regulatory obstacles that suggest more widespread adoption is still limited. Methods: Five large-scale databases and other sources were searched and selected using PRISMA; structured data were extracted, assessed in quality and narrative, and thematically analyzed. Results: The discussion indicates that machine learning-based anomaly detection and predictive analytics, document analysis through NLP, and automation through RPA are becoming part of planning, risk assessments, control tests, and substantive procedures/reporting, with improvements in detection capabilities, coverage and efficiency reported in various empirical and design science studies. The review also presents common architectural models of AI-enabled audit processes, including layered data and governance, model development and oversight, orchestration and automation, auditor-facing applications, and human-in-the-loop controls. Conclusions: The article proposes an AI-based audit workflow reference architecture and summarizes evidence on opportunities, threats, and implementation obstacles, highlighting gaps in longitudinal assessment, comparative evaluation of AI methods, and regulatory recommendations. The results have practical implications for auditors, standard-setters, and system designers seeking to revise the audit approach and regulations to enable AI-driven assurance. Full article

This study provides a critical examination of Nike’s sustainability reporting by comparing disclosures across six major frameworks: the Higg Index, the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the Sustainable Development Goals (SDGs), the Triple Bottom Line (TBL), and Double Materiality. Drawing on a directed content analysis of Nike’s 2022–2023 sustainability documents, the research codes and compares how these frameworks are applied to environmental, social, and governance topics. The analysis shows that Nike’s environmental reporting is the most consistent and well-developed across the six frameworks. In contrast, significant gaps and inconsistencies remain in areas such as labor rights, living wages, and supply chain transparency. These findings reveal both the advantages and the tensions that come with using multiple frameworks, illustrating where they reinforce one another and where they diverge. Overall, the study highlights the essential need for harmonized reporting practices across the global apparel sector. It also reflects both the strengths and the limitations of using multiple frameworks to produce sustainability reports that are transparent and comprehensive. Full article

Background: The increasing integration of Environmental, Social, and Governance (ESG) factors into financial decision-making has prompted debate over their impact on corporate credit risk. While many studies suggest that ESG performance may enhance firms’ resilience, empirical evidence remains mixed due to data inconsistency and methodological heterogeneity and differences in time horizons over which ESG effects materialise. Methods: The study investigates the relationship between ESG performance and credit risk using a panel of European firms from 2020 to 2024, a phase highly characterised by substantial macroeconomic shocks. The Altman Z-score serves as a proxy for default risk, while ESG data are sourced from Refinitiv Eikon. Four fixed-effects panel regressions are estimated: a baseline model using aggregate ESG scores, an extended model with financial controls, and disaggregated and sector-specific models. Results: The findings indicate that ESG scores—either aggregated or by pillar—show limited statistical significance in explaining variations in the Z-score. In contrast, financial variables such as solvency, liquidity, and cash flow ratios display strong, positive, and significant effects on credit stability. Some heterogeneous sectoral effects emerge: social factors are positive in technology, while governance has a negative impact in basic materials. Conclusions: ESG initiatives may not yield immediate improvements in default risk metrics, particularly over short and crisis-dominated periods, but could enhance financial resilience over time. Combining ESG information with traditional financial ratios remains essential; the results underscore the importance of consistent and high-quality ESG disclosure to reduce measurement error and enhance comparability across firms. Full article

The use of financial derivatives to hedge economic risks presents several operational and financial reporting challenges to corporations. Special hedge accounting treatment is stringent and complex; different accounting treatments may be used for similar instruments, and risk management strategies, expertise, and judgment are necessary in valuing certain instruments; and careful monitoring and internal controls processes and procedures are necessary to ensure that risks are properly hedged. This study examines whether the use and the extent of the use of financial derivatives are associated with audit risk, financial restatements, and internal control weaknesses. Using a sample of over 6000 firms across non-financial industries from 2012 to 2022, I find that derivative use is associated with an increase in audit fees, restatements, and internal control weaknesses. The fair value of total derivatives used is associated with an increase in audit fees and internal control weaknesses. These findings provide evidence on the hidden costs of derivatives; the auditor’s price increased audit risk in audit fees, and the additional resources needed to support derivative hedges expose firms to additional financial reporting and internal control risks. Full article

This study analyses disclosures on materiality in non-financial information (NFI) reporting by examining their likely explanatory factors, including entities’ financial or structural characteristics, governance features, and contextual factors, grounded in a set of relevant theories. Based on archival research and content analysis, this study uses consolidated NFI reports from 2021 of entities listed in the main Euronext indices. The descriptive analysis reveals that while 71% of companies present a materiality matrix, only about half (50%) meet all eight criteria of materiality disclosure, with double materiality being addressed by just 16%. The regression results show that the level of materiality disclosure is significantly and positively associated only with the size of the board of directors, whereas other expected relationships, such as those with firm size, profitability, or debt, were not statistically significant, challenging traditional assumptions from stakeholders, agency, and positive accounting theories. These findings suggest that governance structures may play a more decisive role in transparency regarding materiality than the entities’ financial or structural characteristics. This research contributes to both the academic literature and practice by identifying explanatory factors and empirical patterns in materiality disclosure in NFI reporting, which may be relevant for standard-setting bodies, regulators, auditors, and stakeholders. Full article

This study investigates the systemic interrelations between logistics performance, environmental performance, sustainable development progress, and institutional governance. While the existing literature often examines these dimensions separately, this research conceptualizes them as co-determined drivers of national development. Using data from 123 countries, the analysis integrates four composite indices—Logistics Performance Index (LPI), Environmental Performance Index (EPI), Sustainable Development Goals Index (SDG), and Worldwide Governance Indicators (WGI)—alongside GDP per capita. Methodologically, this study applies multiple linear regressions and correlation analyses to assess the associations among these variables and employs Fuzzy Cognitive Mapping (FCM) to simulate scenario-based systemic interactions. Results show that all ESG indicators are positively and significantly associated with LPI, with WGI exerting the strongest effect. In turn, LPI, EPI, SDG, and WGI jointly explain 81.7% of the variance in GDP per capita, confirming their integrated role in shaping economic performance. FCM simulations further reveal that both environmental and institutional improvements generate reinforcing effects on logistics capacity and GDP outcomes. This study’s originality lies in its multiple-method approach and its synthesis of ESG and logistics performance metrics into a unified explanatory framework. It contributes to development studies by highlighting the structural embeddedness of logistics within broader institutional and sustainability ecosystems. Its policy implication lies in suggesting that integrated reforms—combining infrastructure, regulatory quality, and environmental stewardship—are essential for enhancing long-term national competitiveness and resilience. Full article

This research examines investing decisions when the company under consideration has an auditor with other clients who have had financial statement restatements and regulatory enforcement actions. Another issue addressed is whether investors’ tolerance for ambiguity affects these investing decisions. Participants were given a questionnaire involving an investment decision and were asked to provide risk assessments and investment amounts. They were assigned to one of two treatment groups, each of which described the same hypothetical company scenario except for its audit firm’s associations with other clients. One group was informed that the company’s auditor has had other clients who have recently had financial statement restatements and regulatory enforcement actions. The other group was informed that the company’s auditor has not recently had any clients who have had financial statement restatements or regulatory enforcement actions. Participants’ tolerance for ambiguity was measured with a commonly used metric. Results indicate that knowledge about an audit firm’s associations with other clients did not significantly impact either investors’ risk assessments (5.76 vs. 6.17 on a scale from 1 to 10) or investment amounts ($4917 vs. $4227). This research also did not find evidence that participants’ tolerance for ambiguity influences risk assessments (6.20 vs. 5.72 on a scale from 1 to 10) or investment amounts ($4857 vs. $4309). Full article

This study investigates the influence of drone technology on the quality of Saudi financial reports through the integration of Artificial Intelligence (AI) and big data. The study’s mixed-method approach is based on a bibliometric analysis of previous studies, along with documentary and content analysis. The results show that external auditors benefit from using drones when inspections are integrated with AI and big data technology. Moreover, this integration can reduce costs for audit firms and shorten the duration of audit engagements, resulting in more efficient and effective auditing. Seven clusters were identified, with ‘big data’ being the highest-frequency term. This study does not consider potential cybersecurity threats that could impact data integrity and decrease financial transparency. Furthermore, environmental issues in Saudi Arabia, such as sandstorms, could compromise the effectiveness of drone-based auditing. However, this study contributes to the ESG literature by demonstrating how integrated audit technology transforms traditional sustainability reporting into continuous, AI-enhanced verification processes. These processes improve financial report quality while supporting Saudi Arabia’s Green Initiative and its goal of achieving net-zero carbon emissions by 2060. The adoption of AI and big data technologies in auditing represents a shift toward more automated and intelligent audit practices. These changes provide practical insights for government authorities, such as the Saudi Capital Market Authority (CMA), and may result in higher-quality financial reports and increased investor confidence. Full article

This study investigates the credibility of disclosures and examines the reporting protocols in place, utilizing logistic regression models. While various background factors were analyzed, certain associations emerged. This suggests that the logistic regression analysis, bolstered by diagnostic checks such as (ROC AUC, Brier score, and the Hosmer–Lemeshow test), provides robust evidence and strengthens the empirical foundation of the research. These methodological enhancements contribute to the theoretical integration of signaling and legitimacy perspectives, while also offering practical implications for regulatory frameworks. Overall, this work aims to enhance investor confidence and support credibility in the field. Full article

The rapid developments in technology have brought about significant changes regarding accounting information extraction as a tool for optimized administrative and strategic decisions. The implementation of electronic bookkeeping as a dynamic application, combined with the continuous renewal of the International Financial Reporting Standards (IFRS), has modified accounting functions. The impacts of technology, the imposition of innovative reforms in the public administration system, the effects of COVID-19 and the continuous need for accounting reforms, shaped in Greece an economic and accounting system of particular research interest. The research approaches accounting management, the impacts of digitalization and the main advantages and obstacles of the ever evolving technological transition. The aim of this paper is to create a tool that utilizes the existing levels of technological training and correlate it with digitization’s weaknesses and opportunities discerning an optimized approach of modern technologies in accounting administration. Results highlight the positive response to the updates of digitization demonstrated in accounting, with the simultaneous resistance to change due to increasing workloads. In the aforementioned economic environment, focused monitoring of both methods and rate of utilizing an evolving technology, combined with the human factor could enable a smoother transition of accounting digitalization and optimized administrative decisions. Full article

Past studies have observed that the low (high) accrual portfolio in the accrual anomaly consists of firms with high (low) credit risk, and have suggested that the abnormal return in the accrual anomaly arises from buying (selling) stocks with high (low) credit risk. In this paper, I first investigate whether the low accrual portfolio is indeed dominated by firms with higher credit risk. I find that this claim is not necessarily true. Next, I regress the abnormal return on both the level of accrual and credit risk. The regression is repeated using both decile ranking and actual values. In both cases, I find that the level of accrual is always statistically significant and negative. Finally, I investigate the claim that the abnormal return in the accrual anomaly is due to taking a long (short) position in stocks with high (low) credit risk. In each year, to control for credit risk, I first rank all firms by both their level of accrual and credit risk. The ranking for accrual and credit risk are independently determined. I require that in each year, the long position (in the low accrual decile) and short position (in high accrual decile) are equally weighted within each credit risk decile. After controlling for credit risk, I find that the abnormal return from Sloan’s accrual trading strategy is still positive, statistically significant and economically significant. I conclude that the accrual anomaly cannot be explained by credit risk. All findings in this paper are robust as to whether credit risk is measured using Altman’s z-score or the Standard & Poor’s credit rating. Full article

This study provides the first evidence of the propensity of globally large industrial US and European firms to adopt enterprise risk management (ERM) processes in response to the recent challenges of systematic global risks associated with pandemics (COVID-19), increased geopolitical risks (e.g., the Ukraine–Russia conflict), increased cybersecurity threats and the challenges posed by climate change and biodiversity loss. Consistent with the predictions of standard risk management theory, it is predicted that there is a positive inter-relationship between the propensity to adopt ERM and total firm risk, after controlling for various firm-related financial characteristics, complexity and sources of idiosyncratic risk. The empirical research is based on an industry-matched sample of the 100 largest US and European firms globally. The empirical results are generally consistent with these predictions, but for European firms, total firm risk is not associated with ERM adoption. Furthermore, there is no statistically significant relationship between sample firms’ risk-adjusted performance and their ERM adoption propensity, and there are also significant cultural–institutional variations that explain the differences between the ERM adoption practices between US and European sub-sample firms. The findings raise new questions about the validity of ERM in addressing globally important risk challenges faced by the largest multinational firms. Full article

This study examines the effect of environmental, social, and governance (ESG) performance on the persistence of firm value among publicly listed companies in Taiwan from 2016 to 2023, using survival analysis. This approach addresses a gap in the literature, which has largely overlooked the temporal dimension of firm value. The findings indicate that only higher social scores are significantly associated with a longer duration of firm value persistence, whereas environmental and governance scores do not exhibit this effect. Furthermore, the analysis reveals that within the social pillar, only product quality and safety contribute meaningfully to sustaining firm value. Although previous studies have often linked sustainability practices to higher firm value, the present findings suggest that such effects may not endure over time. These results underscore the importance of aligning ESG initiatives with core business strategies and enhancing disclosure credibility to ensure authentic commitment. Full article