This study compares the codes of ethics from various accounting organizations, using the International Ethics Standards Board for Accountants (IESBA) Code as a benchmark. The IESBA Code outlines five core principles—integrity, objectivity, professional competence and due care, confidentiality, and professional behavior—that have been widely adopted and adapted globally. By examining these principles in relation to ethical frameworks from different countries and organizations, the research identifies commonalities, divergences, and the underlying causes of variations. Key findings reveal that while most codes align with IESBA’s principles, differences arise due to cultural, legal, and technical factors. Notably, detailed codes provide clarity but risk overshadowing fundamental principles, while less prescriptive codes allow for greater adaptability. This comparative analysis underscores the need for a balance between universal ethical standards and context-specific adjustments, ensuring that accountants remain guided by robust ethical principles in an ever-evolving profession.
Based on data of Chinese A-share listed companies from 2013 to 2022, this paper tests the impact of the merger of national and local tax bureaus on corporate tax burden stickiness. The merger significantly reduces stickiness through the "tax burden reduction effect" (reducing tax collection intensity, enhancing debt tax shields) and the "governance effect" (restraining collusion, improving internal control). Effects are stronger among private firms and those with lower financing constraints. The merger reduces effective tax rates and improves performance but increases local fiscal pressure.
Based on unbalanced panel data from 30 Chinese provinces from 2008 to 2021, this paper examines the effectiveness of government audit in preventing systemic financial risks in the big data environment. The results show that government audit can still significantly inhibit systemic financial risks. Financial system risk accumulation plays a mediating role in this process, while the level of big data development has a negative moderating effect on the relationship between government audit and systemic financial risk prevention. Heterogeneity tests reveal that government audit has a more obvious preventive effect on systemic financial risks in the eastern and western regions, as well as in areas with low marketization levels. Accordingly, this paper recommends further promoting the digital transformation of government audit, improving the mechanism through which government audit inhibits financial risk accumulation, and implementing audit strategies tailored to local conditions.
Based on Chinese provincial panel data from 2011 to 2022, this paper explores the effects and mechanisms of digital technology and green fiscal and tax policies on the green transformation of traditional manufacturing. The research shows that digital technology has a significant enabling effect on the green transformation of traditional manufacturing. As regulatory instruments, green fiscal and tax policies significantly strengthen this enabling effect through the "compensation effect" and "cost effect" mechanisms respectively. However, the policy nesting of the two creates institutional friction, resulting in partial efficiency loss. Heterogeneity analysis indicates that the enabling effect of digital technology exhibits structural differences across different strategic regions and policy contexts. Extended analysis reveals that the enabling process of digital technology has "network effects" and threshold characteristics, with technology lock-in occurring at high quantiles, and the marginal effect of green fiscal policy showing a diminishing trend. Accordingly, this paper proposes building a full-chain digital empowerment foundation, implementing quantile-based governance of green fiscal and tax policies, promoting gradient regional ecological penetration, and applying targeted policies to break through transformation bottlenecks.
Based on data from China's Annual Survey of Industrial Firms (2004–2013), this paper constructs a unique climate risk index to examine the impact of climate risk shocks on corporate credit financing. The results show that exogenous climate risk shocks trigger a "financial accelerator" effect, significantly suppressing corporate credit financing, especially for firms highly dependent on bank credit. Mechanism analysis reveals that climate risk primarily suppresses credit financing by reducing industrial output and sales revenue, and accelerating collateral depreciation. Heterogeneity analysis shows ownership and industry heterogeneity, while financial deepening helps mitigate the negative impact. Decision-makers should pay attention to the "financial accelerator" effect of climate risk, promote enterprises' climate resilience, optimize financial structures, and create a more favorable financing environment.
Establishing a stock index futures market is an important part of financial supply-side reform, aimed at improving the effectiveness of financial asset prices, enhancing the efficiency of financial resource allocation, thereby improving the price discovery function of the futures market and promoting financial services to the real economy. The key to improving the price discovery function of the futures market lies in how to effectively measure market information and evaluate the validity of information. Based on the heteroscedasticity effect widely present in financial markets, this paper proposes a uniquely identifiable information share index and a volatility spillover-adjusted information share index. Using these two indices, this paper studies the price discovery capability of China's stock index futures market. The research results show that the information contribution of A-share futures and spot markets is a relatively complex process: more information is initially discovered in the futures market, but the information contains more noise; the spot market reinterprets the information from the futures market, and thus the effective price mainly comes from the spot market's interpretation of information, which includes both information "discovered" by the spot market itself and information that flows in from the futures market through volatility spillovers and is reinterpreted. The conclusions of this paper not only enrich the research on quantitative indicators of price discovery but also provide new ideas for China's further effective management of the futures market.
The application of blockchain-based smart contracts within Islamic finance presents both opportunities and significant governance challenges. While these technologies promise enhanced efficiency, automation, and immutability, their integration into Shariah-compliant financial instruments, such as Murabaha, Ijarah, and Sukuk, raises critical concerns regarding auditability, interpretive flexibility, and adherence to foundational Islamic legal and ethical principles. This study examines the tensions between automation and religious oversight by investigating how smart contracts intersect with Shariah governance and IT audit frameworks in Islamic financial institutions.Utilizing a qualitative multiple-case study approach, the research draws on semi-structured interviews with Shariah scholars, auditors, compliance officers, and blockchain developers across Islamic fintech ecosystems in Malaysia, Bahrain, Kingdom of Saudi Arabia and the United Arab Emirates. Thematic analysis, supported by document review, reveals systemic challenges in embedding ethical discretion and human oversight into immutable contractual code. Analytical framing is guided by established IT assurance frameworks (e.g., COBIT, ISO 27001) and Shariah governance standards issued by AAOIFI and IFSB.Findings highlight the emergence of "risk zones" where algorithmic rigidity, audit traceability limitations, and ethical ambiguity converge, potentially undermining religious compliance. In response, the study proposes a conceptual governance model that integrates technological assurance mechanisms with structured Shariah supervisory engagement. The findings contribute to the discourse on responsible FinTech governance in Islamic finance and offer practical implications for policymakers, auditors, and technology developers navigating the intersection of blockchain innovation and faith-based financial regulation.
Audit committee characteristics play a momentous role in ensuring internal audit quality. An understanding of these characteristics and their relationship with internal audit quality in public limited companies in Cameroon strengthens the audit committees and enhances internal audit quality, eventually stimulating improved governance and accountability. In this study an assessment of the relationship between the audit committee characteristics and the internal audit quality within Public Limited Companies in Cameroon was done. Data was collected from 60 Public Limited Companies operating in the Northwest, Littoral and Center regions of Cameroon. The Ordinal Least Square revealed that audit committee independence, audit committee gender, board gender andCEOduality positively influence the internal audit quality. However, the study also revealed that there is no significant effect of audit committee size, audit committee meetings, and audit committee financial expertise on the internal audit quality. This study recommends that PLCs should maintain the independence of audit committees in order to enable them carry out unbiased oversight responsibilities, and laudably uphold the integrity of financial reporting; and secondly that PLCs should uphold audit committees with gender diversity in order to benefit from diverse perspectives that lead to more informed decision making, lead to better outcomes, and contribute to the success of the company.
This paper seeks to characterize the relevance and cluster of the intersectoral relationships of the US economy through complex networks. To this end, 21 sectoral assets are considered and their volatility transmissions and receipts are estimated to generate complex network metrics with the Force Atlas 2 algorithm. The results indicate that the most influential assets in the network are the Wilshire 5000, the S&P 500, and the DJIA Industrial. In contrast, the least influential assets are the CRB commodities, WTI crude oil, and the 2-year note. Three clusters are identified, cluster 0 focuses on commodities, especially crude oil, and includes assets that are influenced by commodity markets and that exhibit similar behavioral patterns. Cluster 1 includes fixed-income instruments, such as government bonds with varying maturities, which respond to fluctuations in interest rates and macroeconomic factors. Cluster 2 is composed of assets characterized by greater volatility across several sectors, including assets in the industrial, materials, energy, technology, healthcare, and utilities sectors, highlighting their diversified portfolio and varied market exposures.
The extant literature has been quite limited concerning the underlying factors associated with internal control weakness findings among local governments. Overall financial accuracy is essential in the overall assessment of the government unit. This study examines the impact that indigenous county characteristics have on internal control problem weakness findings among financial management practices. Logistic regression measurements isolate material weakness and significant deficiency findings among North Carolina county governments for FY 2018-2019. Less accounting positions, a lower number of county employees, a lower net position compared to the previous year, and counties in a ‘high’ risk category had a higher likelihood of increased material weakness findings while less employees, a lower net position compared to the previous year, a larger service area, a low or no bond rating, and the use of the most contracted auditor all had relationships with elevated significant deficiency findings. Overall, the findings continue to elucidate the personnel and organizational challenges facing smaller governments along with the importance of an auditor with government expertise.
The study investigates the correlation between the supply of credit and the price of housing in Salvador, with an emphasis on regional differences. The objective is to understand how the availability of real estate credit influences the dynamics of prices in different locations. The research uses data on credit at the national level and housing prices at the local scale. The Vector Error Correction Model (VECM) allows us to examine the interactions between these variables over time. The results indicate that the supply of credit has an unequal impact on housing prices in different regions of Salvador. The availability of credit drives the appreciation of properties located in noble areas, while it has negative effects in popular regions. Thus, the availability of credit exerts an asymmetric influence on the real estate market in the city of Salvador.
This research explores the growing divide between the public promises made by global corporations under their net‐zero emissions targets and the practical realities of carbon accounting. The study investigates whether corporate climate disclosures represent genuine efforts to reduce environmental harm or serve as strategic tools to enhance reputation while masking underlying failures. Drawing on a qualitative synthesis of fifty peer‐reviewed journal articles from 1985 to 2022, the paper examines patterns in emissions measurement, carbon offset reliance, and disclosure practices. The findings reveal that many firms depend predominantly on carbon offsetting strategies rather than substantive emissions reduction and that disclosures often lack in transparency and independent verification tend to serve a symbolic purpose. The study further discusses the evolving role of accounting professionals in ensuring climate accountability and the need for strengthened reporting standards and assurance practices to restore stakeholder trust. Implications for regulators, practitioners, and policymakers are discussed, along with recommendations for reforming both corporate carbon accounting frameworks and the assurance mechanisms that underpin sustainability reporting.
Previous empirical evidence provides mixed results on the relationship between the level of environmental disclosures and corporate financial performance. We revisited this relationship using a more rigorous research design with a mediator + moderator model, as well as heterogeneity analysis and robustness tests. By introducing two variables, financial constraints and media attention, the changes in the relationship are examined in terms of mediating and moderating effects, respectively. Meanwhile. By introducing heterogeneity analysis, we can more accurately understand the differences within the data, select appropriate models and methods, and thereby enhance the reliability and interpretability of the research results. Through robustness tests, we can demonstrate the reliability of the conclusions under different circumstances, which in turn strengthens the persuasiveness of the research findings. The study highlights the necessity of enhancing environmental accounting disclosure by Chinese firms and strategically leveraging the same to boost their financial performance. The empirical analysis data in this paper are derived from the panel data of 281 Chinese pharmaceutical listed companies from 2010 to 2023.
This paper investigates the systemic nature of ethical failures in accounting by examining four high-profile cases: Enron, WorldCom, Lehman Brothers, and Pitcher Partners. Through a qualitative desk-based analysis of publicly available documents, academic literature, and regulatory reports, the study explores how corporate misconduct in each case reflected deeper institutional weaknesses, rather than isolated lapses in individual judgement. Common themes—such as compromised auditor independence, ineffective board oversight, ethical leadership vacuums, and the normalization of deviance—emerged as recurring patterns across all cases. The study also considers how whistleblower suppression and ethical fading contributed to delayed accountability. By critically synthesizing secondary sources, this research highlights the limitations of compliance-based reforms and calls for a broader governance model grounded in ethical leadership, professional skepticism, and stakeholder accountability. The paper contributes to the growing discourse on ethical resilience in the accounting profession and identifies future research directions related to sustainability reporting, whistleblower protection, and the ethical challenges posed by technological advancements.
This study analyzes the reaction function of the Central Bank of Brazil in setting the Selic rate, taking into account the influence of macroeconomic and fiscal variables between 2003 and 2024. To this end, we estimate different specifications of the Taylor Rule using the Generalized Method of Moments robust to heteroskedasticity and autocorrelation (GMM-HAC). We initially estimate the model with macroeconomic variables, including the lagged interest rate, the output gap, the real effective exchange rate, the deviation of inflation expectations from the target, and the commodity price index. Subsequently, we incorporate fiscal variables—namely, public debt (% of GDP) and the primary deficit (% of GDP)—to assess their impact on the conduct of monetary policy. The analysis covers the full sample and two distinct subperiods (2003–2013 and 2014–2024) for the Brazilian economy, allowing the identification of asymmetries in the monetary authority’s response over time. The results indicate strong inertia in monetary policy, as evidenced by the coefficient of the lagged interest rate. The output gap proves relevant, especially during economic and fiscal stability periods. The deviation of inflation expectations from the target influences the interest rate, reinforcing the Central Bank of Brazil’s commitment to the inflation-targeting regime. Among the fiscal variables, public debt is statistically significant, particularly when its trajectory is under control. In contrast, the primary deficit shows no short-term impact, suggesting an indirect effect through the increase in debt.
This study aims to examine the effect of integrated reporting and financial indicators on the sustainability performance of banks within the SADC. Data were collected from annual reports and official stock exchange platforms of banks listed on SADC stock exchanges, from 2019 to 2023. Multiple linear regression analysis was utilized to assess the simultaneous impact of independent variables, including IRQ and selected financial indicators, on the dependent variable, sustainability performance. To ensure the robustness of the regression model, statistical tests such as the variance inflation factor were conducted to detect multicollinearity among the independent variables, and unit root tests were performed to confirm the stationarity of the data series. The regression analysis revealed that higher IRQ scores are significantly associated with enhanced sustainability performance, suggesting that comprehensive and transparent reporting practices positively influence sustainability outcomes. Financial indicators: ROA and market capitalization also showed positive correlations with sustainability performance, indicating that profitable banks with substantial market presence are better positioned to implement effective sustainability initiatives. Conversely, a negative association was found between WACC and sustainability performance, implying that higher financing costs may hinder banks' ability to invest in sustainable practices. An unexpected negative relationship between COGOV and sustainability performance suggests potential misalignments in governance structures that warrant further investigation. This study provides important guidance for banks in the SADC that are looking to boost their sustainability efforts. By adopting high-quality IR and refining their financial strategies, these banks can enhance transparency, strengthen accountability, and allocate resources more effectively to ESG initiatives.
Public companies are required to provide the statement of cash flows, and accounting majors are required to take the course that covers the statement of cash flows. The statement of cash flows can be prepared either by direct method or indirect method. Even when direct method is used, it is still required the first section of the statement be prepared by indirect method and provided as a reconciliation schedule in the notes, which means indirect method is required either by direct and indirect method.Learning the indirect method, the focal issue is on the adjustments to net income under cash flows from operating activities because the rest of statement is prepared by direct method. The author suggested a different conceptual approach in his paper of this subject in 2021.In this paper, a suggested practical approach is presented using an exercise question from one of the most popular intermediate accounting textbooks. The exercise question requires preparing a statement of cash flows using indirect method. Assuming the format of cash flows statement is given, it is illustrated how to fill out the cash flows statement in a step-by-step approach, following the suggested conceptual approach from his paper in 2021.It is demonstrated in the current paper that the challenging exercise question can be done step-by-step following the order of steps shown in the illustration.Combined with his suggested conceptual approach from 2021, the suggested step-by-step illustration in this paper is tested on students and found to be a step easier way for the students to learn the indirect method of cash flows statement.
This study ventures into the dynamic and interconnected realms of sugar and ethanol prices, unveiling their volatility patterns using the powerful tool of wavelet analysis. The first part of the study establishes a link between Brazil's sugar price surge and significant economic events, including the National Alcohol Program (Proálcool), the military dictatorship, and the implementation of the Real Plan. The second part zooms out to global factors, such as concerns about the greenhouse effect, flex-fuel engine technology, and recent challenges like droughts and COVID-19. The analysis uncovers distinct patterns in the volatility of sugar and ethanol prices. Factors like global supply and demand, climate-induced crop variations, and government policies influence sugar prices. In contrast, ethanol prices are more directly influenced by energy market dynamics, particularly crude oil prices, due to its role as a biofuel component. Furthermore, the study reveals time-frequency correlations between these two markets, shedding light on moments of synchronization and divergence. In this narrative of the two markets, wavelet analysis emerges as a powerful tool for deciphering past volatility and predicting future trends. It allows both estimating the degree of correlation and verifying the unfolding of these relationships over time. The findings of this study contribute as a bridge between theory and practice for decision-making, such as resource allocation and risk management in a constantly evolving economic scenario, highlighting the importance of analysis in this context.
This study examines Associated British Foods PLC's (ABF) performance in maximizing shareholder wealth over a five-year period from 2017 to 2021. Utilizing a mixed-method approach combining quantitative financial analysis with qualitative assessment of strategic factors, the research investigates ABF's share price performance, dividend policies, and key financial ratios. The study also compares ABF's performance with its industry peer, J Sainsbury PLC, to provide context within the competitive landscape. Findings reveal that despite initial underperformance against the FTSE 350 index, ABF demonstrated significant recovery, particularly in 2021/22, with improved share price performance and dividend payouts. The company consistently maintained higher net profit margins and lower debt ratios compared to its competitor, indicating effective cost management and a conservative financial structure. ABF's diversified portfolio and focus on innovation and sustainability appear to have contributed to its resilience and ability to create shareholder value. However, areas for improvement, such as asset utilization efficiency, were identified. This research contributes to the understanding of shareholder value creation strategies in the food and retail sectors, offering insights for both academics and practitioners in the field of corporate finance and strategic management.
Environmental sustainability has become a key concern for businesses worldwide, with expectations that they take responsibility for their carbon emissions and environmental effects. Reducing carbon emissions is critical for businesses due to companies' regulatory pressures and market expectations. Malaysia increased its mitigation ambition with an unconditional target to cut carbon intensity against GDP by 45% by 2030 compared to 2005 levels. This study aims to evaluate the extent of carbon footprint disclosure among manufacturing companies in Malaysia. Companies listed in Bursa Malaysia were chosen as the sample data in this study. The result of content analysis, approximately 18.97%, 269 of respondents are willing to disclose their carbon footprint information, suggesting a relatively low level of carbon footprint reporting. The policymakers should provide incentives for investment in green technology and enact strict regulations to encourage more companies to engage in carbon reporting.
