Informal institutions and managers’ earnings management choices: evidence from IFRS-adopting countries

In this study, we investigate the role of informal institutions (religiosity and culture) in determining managers’ choices of earnings management methods (accruals vs. real activities), after controlling for formal institutions (investor protection, enforcement quality and equity market development). Using an ethical perspective, we find that managers tend to choose an earnings management strategy that meets the prevailing social (informal) norms of the environment where the firm is headquartered. Specifically, our analysis shows that firms domiciled in countries with strong religious adherence and highpower- distance cultures prefer to manage their earnings ‘upwards’ through real activities rather than accruals. Overall, our results suggest that informal institutions determine managers’ earnings management choices at least as strongly as formal institutions do. It would therefore be misleading to analyze managers’ choices in managing earnings solely from the formal rules perspective without considering the role of informal constraints or vice versa

Abnormal inventory and performance in manufacturing companies: evidence from the trade credit channel

This paper examines the value of abnormal inventory and the channels through which firms decrease abnormally high inventory or increase abnormally low inventory for a sample of 976 United Kingdom (UK) manufacturing firms over the period from 2006 to 2015. Using GMM regressions, the results show that (i) an optimal inventory policy exists; and (ii) firms that are able to converge at this optimal inventory level byeither decreasing abnormally high inventory or increasing abnormally low inventory to improve operational and stock performance. Importantly, the results show that trade receivables and trade payables are the channels through which firms achieve efficient inventory management

Mapping of Internal Audit Research: A Post-Enron Structured Literature Review

Purpose — This paper reviews the field of internal auditing (IA) post-Enron to develop insights into how IA research has developed, offer a critique of the research to date and identify ways that future research can help to advance IA. Design/methodology/approach — A structured literature review (SLR) was used to analyse 471 papers from 64 journals published between 2005 and 2018 based on a number of criteria; namely, author, journal type, journal location, year, theme, theory, nature of research, research setting, regional focus, method and citations. Findings — The IA literature has not significantly contributed to knowledge of the internal audit function (IAF), and we still know relatively little about the factors that contribute to making the impact of IA practice effective and measurable. The IA literature is US dominated (authors and journals), focused on the American context (publicly listed companies), reliant on positivist analyses and largely makes no explicit reference to theory. Central regions (emerging economies) and key organisational settings (private SMEs and not-for-profit organisations) are largely absent in prior IA research. This paper evaluates and identifies avenues through which future research can help to advance IA in order to address emerging challenges in the field. Originality/value — This is the first comprehensive review to analyse IA research in the postEnron period (2005–2018). The findings are relevant to researchers who are looking for appropriate research outlets and emerging scholars who wish to identify their own research directions. Keywords — Internal audit, internal audit function, structured literature review, Enron Paper type — Literature revie

A Mechanism using the Electronic Signature to Verify the Power of Attorney and the Requested Activity

The rapid development that accompanies computer and information technology imposes its applications on all societies in general and developed coun tries in particular. In this paper, we present an algorithm to apply the electronic signature to verify the credibility of power of attorney and the credibility of activity requested using power of attorney. The verification algorithm is to be used in cour ts of law; the algorithm ensures a credible approval by the owner to the agent who has the power of attorney to submit the activity under concern. Selling a real estate property is an example of an activity which might be con ducted by the agent using the " power of attorney". This system, which we designed, implemented and tested, takes into consideration all the financial and security information needed. Our system requirements adopted the financial requirements such as banks and financial firms in number o f societies and countries such as the United States, the European Union and Jordan

Information technology in the British and Irish undergraduate accounting degrees

Using an online questionnaire and a series of semi-structured interviews, this study seeks the perceptions ofaccounting educators and professional accounting bodies in the UK and Ireland on the status quo of technologicaldevelopments within accounting curricula and the factors influencing this status quo. Findings suggest a fairlywidespread view that technological developments represent an important area that should be covered acrossaccounting curricula, to expose changes in the marketplace and to enhance the employability of graduates.However, it is still a peripheral component in accounting curricula, with no clear agenda for change. Professionalaccounting bodies seem to play a hegemonic inhibiting role through accreditation requirements although otherinhibitors were reported such as lack of competent/interested staff and lack of time/space in already overloadedsyllabi

Metformin treatment in heart failure with preserved ejection fraction: a systematic review and meta-regression analysis

Background: Observational series suggest a mortality benefit from metformin in the heart failure (HF) population. However, the benefit of metformin in HF with preserved ejection fraction (HFpEF) has yet to be explored. We performed a systematic review and meta-analysis to identify whether variation in EF impacts mortality outcomes in HF patients treated with metformin. Methods: MEDLINE and EMBASE were searched up to October 2019. Observational studies and randomised trials reporting mortality in HF patients and the proportion of patients with an EF > 50% at baseline were included. Other baseline variables were used to assess for heterogeneity in treatment outcomes between groups. Regression models were used to determine the interaction between metformin and subgroups on mortality. Results: Four studies reported the proportion of patients with a preserved EF and were analysed. Metformin reduced mortality in both preserved or reduced EF after adjustment with HF therapies such as angiotensin converting enzyme inhibitors (ACEi) and beta-blockers (β = - 0.2 [95% CI - 0.3 to - 0.1], p = 0.02). Significantly greater protective effects were seen with EF > 50% (p = 0.003). Metformin treatment with insulin, ACEi and beta-blocker therapy were also shown to have a reduction in mortality (insulin p = 0.002; ACEi p p = 0.017), whereas female gender was associated with worse outcomes (p Conclusions: Metformin treatment is associated with a reduction in mortality in patients with HFpEF

Going Global, Acting Local: How an International Pandemic Convention Can Support Regional and Community Response

A WHO pandemic convention could set in place an overarching framework needed for strengthening global health security. As the World Health Assembly (WHA) debated the merits of such an agreement, a critically important regional instrument – the Treaty for the Establishment of the African Medicines Agency (AMA Treaty) – entered into force on 5 November 2021. The new agency will, among other things, ensure there is a “common framework” for addressing “emerging issues and pandemics in the event of a public health emergency on the continent with cross border or regional implications.” An improved worldwide health security strategy is essential but global mechanisms should complement without undermining effective regional, national, and sub-national approaches. Consequently, WHA decision-makers should carefully consider the scope of a potential global convention and make deliberate choices as to the content that requires truly worldwide coordination while incorporating and enhancing fit for purpose regional, national, and local strategies

Maximum entropy models for antibody diversity

Recognition of pathogens relies on families of proteins showing great diversity. Here we construct maximum entropy models of the sequence repertoire, building on recent experiments that provide a nearly exhaustive sampling of the IgM sequences in zebrafish. These models are based solely on pairwise correlations between residue positions, but correctly capture the higher order statistical properties of the repertoire. Exploiting the interpretation of these models as statistical physics problems, we make several predictions for the collective properties of the sequence ensemble: the distribution of sequences obeys Zipf's law, the repertoire decomposes into several clusters, and there is a massive restriction of diversity due to the correlations. These predictions are completely inconsistent with models in which amino acid substitutions are made independently at each site, and are in good agreement with the data. Our results suggest that antibody diversity is not limited by the sequences encoded in the genome, and may reflect rapid adaptation to antigenic challenges. This approach should be applicable to the study of the global properties of other protein families