TWENTY-EIGHTH ASIAN-PACIFIC CONFERENCE

ON INTERNATIONAL ACCOUNTING ISSUES

PROGRAM&

PROCEEDINGS

November 6-9, 2016 MAUI, HAWAII

ISSN 2471-7266 (print) ISSN 2471-7274 (online)

PROGRAM TABLE OF CONTENTS

CONFERENCE ADVISORY COMMITTEE ..........................................2

CONFERENCE ASSISTANTS ...............................................................2

BEST PAPER ADWARDS COMMITTEE .............................................3

REVIEWERS FOR PAPERS ...................................................................3

CONFERENCE PROGRAM ...................................................................4

CONFERENCE PROCEEDINGS ..........................................................24

TWENTY-EIGHTH ASIAN-PACIFIC CONFERENCE ON INTERNATIONAL ACCOUNTING ISSUES

CONFERENCE ADVISORY COMMITTEE MEMBERS Ali Peyvandi (Chair), California State University, Fresno, U.S.A. Benjamin Tai, California State University, Fresno, U.S.A. Marie-Jose Albert-Batt, Burgundy School of Business, Dijon, France Dhia AlHashim, California State University, Northridge, U.S.A. Bhabatosh Banerjee, Indian Institute of Management Calcutta (IIMC), India CS Agnes Cheng, Hong Kong Polytechnic University, Hong Kong S. Susela Devi, UNITAR International University, MalaysiaRong-Ruey Duh, National Taiwan University, TaiwanKeitha Dunstan, Bond University, AustraliaAlvaro Gasca Neri, EY, MexicoSidney Gray, University of Sydney, AustraliaSiti Nurwahyuningsih Harahap, Universitat Indonesia, IndonesiaBarron H. Harvey, Howard University, U.S.A.Mostafa K. Hassan, Qatar University, U.A.E.Joanna Ho, University of California, Irvine, U.S.A.Simon Ho, Hang Seng Management College, Hong KongIn Ki Joo, Yonsei University, KoreaPeter Kajüter, University of Münster, GermanyDanuja Kunpanitchakit, Chulalongkorn University, ThailandRaymond Leung, University of the Fraser Valley, CanadaMarc Massoud, Claremont McKenna College, U.S.A.Shirley Polejewski, University of St. Thomas, U.S.A.Behnaz Quigley, Marymount University, U.S.A.Edson Luiz Riccio, University of Sao Paulo, BrazilKatherine Schipper, Duke University, U.S.A.Cindy Yoshiko Shirata, Hosei University, JapanSylvia Veronica Siregar, Universitat Indonesia, IndonesiaTom Smith, University of Queensland, AustraliaTony van Zijl, Victoria University of Wellington, New Zealand

CONFERENCE ASSISTANTS Crystal Cui, California State University, Fresno, U.S.A. Debbie Koehler, California State University, Fresno, U.S.A. Jeff Solano, California State University, Fresno, U.S.A.

BEST PAPER AWARDS SELECTION COMMITTEE Peter Kajüter (Chair), University of Münster, Germany Shu Lin, California State University, Fresno, U.S.A. S. Susela Devi, UNITAR International University, Malaysia

REVIEWERS FOR PAPERS Bhabatosh Banerjee, Indian Institute of Management Calcutta (IIMC), India K.C. Chen, California State University, Fresno, U.S.A.CS Agnes Cheng, Hong Kong Polytechnic University, Hong KongS. Susela Devi, UNITAR International University, MalaysiaAdrian Gepp, Bond University, AustraliaSidney Gray, University of Sydney, AustraliaMostafa K. Hassan, Qatar University, U.A.E.Lizhong Hao, California State University, Fresno, U.S.A.Siti Nurwahyuningsih Harahap, Universitat Indonesia, IndonesiaJoanna Ho, University of California, Irvine, U.S.A.Simon Ho, Hang Seng Management College, Hong KongJanice Hollindale, Bond University, AustraliaPatricia Huff, California State University, Fresno, U.S.A.Peter Kajüter, University of Münster, GermanySimone Kelly, Bond University, AustraliaDanuja Kunpanitchakit, Chulalongkorn University, ThailandShu Lin, California State University, Fresno, U.S.A.Ray McNamara, James Cook University, AustraliaGary Monroe, University of New South Wales, AustraliaMartin Nienhaus, University of Münster, GermanyAli Peyvandi, California State University, Fresno, U.S.A.Shirley Polejewski, University of St. Thomas, U.S.A.Cindy Yoshiko Shirata, Hosei University, JapanSylvia Veronica Siregar, Universitat Indonesia, IndonesiaBenjamin Tai, California State University, Fresno, U.S.A.Tony van Zijl, Victoria University of Wellington, New ZealandJia Wang, California State University, Fresno, U.S.A.Tamara Zunker, Bond University, Australia

TWENTY-EIGHTH ASIAN-PACIFIC CONFERENCE

ON INTERNATIONAL ACCOUNTING ISSUES

PROGRAM

November 6-9, 2016 MAUI, HAWAII

TWENTY-EIGHTH ASIAN-PACIFIC CONFERENCE ON INTERNATIONAL ACCOUNTING ISSUES

CONFERENCE PROGRAM

SUNDAY, NOVEMBER 6

12:00 p.m. - 5:00 p.m. GENERAL REGISTRATION Salon Prefunction

6:00 p.m. - 8:00 p.m. WELCOME RECEPTION Salon Prefunction

Welcome Remarks:

Ali Peyvandi, Conference Chairman, Asian-Pacific Conference on International Accounting Issues, U.S.A. Lynnette Zelezny, Provost and Vice President for Academic Affairs, California State University, Fresno,

U.S.A.

MONDAY, NOVEMBER 7

8:00 a.m. - 5:00 p.m. GENERAL REGISTRATION Salon Prefunction

8:30 a.m. - 9:00 a.m. OPENING CEREMONY Salon 3-4

Master of Ceremonies: Crystal Cui, Conference Coordinator, Asian-Pacific Conference on International Accounting Issues, U.S.A.

Welcoming Remarks: Ali Peyvandi, Conference Chairman, Asian-Pacific Conference on International Accounting Issues, U.S.A. Lynnette Zelezny, Provost and Vice President for Academic Affairs, California State University, Fresno,

U.S.A.

9:00 a.m. - 10:15 a.m. KEYNOTE SPEECH Salon 3-4 “TRANSPARENCY AND ACCOUNTABILITY OF THE GLOBAL FINANCIAL REPORTING ISSUES”

Moderator: Keitha Dunstan, Pro Vice-Chancellor (Learning and Teaching), Bond University, Australia

Speaker: Wei-Guo Zhang, Member of the International Accounting Standards Board, U.K.

10:15 a.m. - 10:30 a.m. COFFEE BREAK Salon Prefunction

10:30 a.m. – 12:00 p.m. CONCURRENT SESSIONS

SESSION 1(A): “AUDITING ISSUES” Plantation 1 Moderator: S. Susela Devi, UNITAR International University, Malaysia

THE IMPACT OF INTERNAL AUDIT FUNCTION QUALITY ON MANAGEMENT FORECAST PRECISION AND ACCURACY

Indranil Bardhan, University of Texas at Dallas, U.S.A. Shu Lin, California State University, Fresno, U.S.A. Lizhong Hao, California State University, Fresno, U.S.A.

ABNORMAL AUDIT EFFORTS AND COST OF EQUITY CAPITAL: EVIDENCE FROM KOREA Namchul Jung, Korea University, Korea Seok Woo Jeong, Korea University, Korea Tony Kang, McMaster University, Canada Sang Ho Lee, Korea University, Korea Yong Keun Yoo, Korea University, Korea

THE DYNAMICS OF INTERNAL AUDIT’S INVOLVEMENT IN NON-FINANCIAL ASSURANCE AND CONSULTING

Dominic Soh, Macquarie University, Australia Nonna Martinov-Bennie, Macquarie University, Australia

SESSION 1(B): “FINANCIAL ACCOUNTING ISSUES” Plantation 2 Moderator: Cindy Yoshiko Shirata, Hosei University, Japan

INTEGRATED REPORTING: THE UNGREENING OF SUSTAINABILITY REPORTING? Caroline Bridges, University of Auckland, New Zealand Julie Harrison, University of Auckland, New Zealand

IMPROVED MODELS TO DETECT FRAUD IN FINANCIAL STATEMENTS Adrian Gepp, Bond University, Australia Kuldeep Kumar, Bond University, Australia Sukanto Bhattacharya, Deakin University, Australia

DISCLOSURE OVERLOAD? A PROFESSIONAL-USER PERSPECTIVE ON THE USEFULNESS OF GENERAL PURPOSE FINANCIAL STATEMENTS

Lynn Rees, Texas A&M University, U.S.A. Michael Drake, Brigham Young University, U.S.A. Jeffrey Hales, Georgia Institute of Technology, U.S.A.

SESSION 1(C): “INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUES” Plantation 3 Moderator: Donna Street, University of Dayton, U.S.A.

MANAGEMENT INCENTIVES FOR PRIOR PERIOD ERROR CORRECTIONS UNDER IAS 8 Pamela Kent, The University of Adelaide, Australia Richard Kent, University of Queensland, Australia

CORPORATE GOVERNANCE AND STOCK PRICES OF JAPANESE FIRMS THAT ADOPT IFRS: INTERIM EVIDENCE

Fumiko Takeda, University of Tokyo, Japan Shun Sato, University of Tokyo, Japan

SESSION 1(C): “INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUES” (CONT’D) Plantation 3

SFAS 157 AND THE PREDICTIVE VALUE OF U.S. BANK FAIR VALUES Dimu Ehalaiye, Massey University, New Zealand Mark Tippett, University of Newcastle, Australia Tony van Zijl, Victoria University of Wellington, New Zealand

SESSION 1(D): “CAPITAL MARKETS” Molokai Moderator: Dimu Ehalaiye, Massey University, New Zealand

DIRECTORS FROM RELATED INDUSTRIES AND MANAGEMENT FORECAST PROPERTIES: AN INTERNATIONAL STUDY

Ervin Black, University of Oklahoma, U.S.A. Herita Akamah, University of Nebraska, U.S.A. Dipankar Ghosh, University of Oklahoma, U.S.A.

THE U.S. MARKET REACTION TO REGULATION OF SOCIAL MEDIA DISCLOSURES Yuen Teen Mak, National University of Singapore, Singapore Amanda Aw Yong, National University of Singapore, Singapore Ching Tung Keung, National University of Singapore, Singapore

ARE IPOS ‘OVERPRICED’? STRATEGIC INTERACTIONS BETWEEN THE ENTREPRENEUR AND THE UNDERWRITER BY LYING

Satoshi Taguchi, Doshisha University, Japan Kazunori Miwa, Kobe University, Japan Tatsushi Yamamoto, Osaka University, Japan

SESSION 1(E): “MANAGERIAL ACCOUNTING ISSUES” Maui Moderator: Salima Paul, Plymouth University, U.K.

MANAGERIAL ABILITY AND ACCOUNTING CONSERVATISM Eung-Gil Kim, Korea University, Korea Sam Han, Korea University, Korea Gun Lee, Korea University, Korea Tony Kang, McMaster University, Canada

CHANGE IN FUNDING SOURCES AND PERFORMANCE MANAGEMENT SYSTEMS IN NON-PROFIT ORGANISATIONS – A CASE STUDY

Manzurul Alam, Murdoch University, Australia John Griffiths, Murdoch University, Australia Megan Paull, Murdoch University, Australia David Holloway, Murdoch University, Australia Anne Clear, Murdoch University, Australia

INNOVATION-DRIVEN PERFORMANCE IN CHINA: TRUTH OR FICTION? Demetris Christodoulou, The University of Sydney, Australia Baruch Lev, New York University, U.S.A. Le Ma, The University of Sydney, Australia

SESSION 1(F): “CORPORATE GOVERNANCE” Oahu Moderator: Tamara Zunker, Bond University, Australia

VOLUNTARY EXTERNAL ASSURANCE OF CORPORATE SOCIAL RESPONSIBILITY REPORTS AND THE DOW JONES SUSTAINABILITY INDEX MEMBERSHIP: INTERNATIONAL EVIDENCE

Yue Li, University of Toronto, Canada Peter M. Clarkson, The University of Queensland, Australia Gordon Richardson, The University of Toronto, Canada Albert Tsang, York University, Canada

AN EMPIRICAL STUDY OF GOING-PRIVATE FIRMS IN JAPAN BEING MADE FULLY OWNED SUBSIDIARIES BY THEIR PARENT COMPANIES

Chieko Matsuda, Tokyo Metropolitan University, Japan

A CROSS-NATIONAL STUDY OF THE IMPACT OF CHANGES IN INSTITUTIONAL ENVIRONMENT ON CORPORATE GOVERNANCE PRACTICES

Shirley Daniel, University of Hawaii at Manoa, U.S.A. Jaehyeon Kim, University of Hawaii at Manoa, U.S.A. Joshua K. Cieslewicz, Utah Valley University, U.S.A.

SESSION 1(G): “EARNINGS MANAGEMENT ISSUES” Niihau Moderator: Muhammad Jahangir Ali, La Trobe University, Australia

REAL EARNINGS MANAGEMENT, THE COST OF DEBT AND CAPITAL MARKET DEVELOPMENT – INTERNATIONAL ANALYSIS

Ji Hye Kim, Korea University, Korea Tony Kang, McMaster University, Canada Sang Ho Lee, Korea University, Korea Yong Keun Yoo, Korea University, Korea

PREDICTIVE ABILITY OF FAIR VALUE MEASUREMENT FOR COMMERCIAL BANKS’ FUTURE EARNINGS: EVIDENCE FROM POST-FINANCIAL-CRISIS CHINA

Hong Xiao, Xiamen University, China Qiao Wang, Pittsburgh University, U.S.A.

EARNINGS MANAGEMENT, BENCHMARKING, AND MARKET VALUATION – A PERSPECTIVE FROM THE HOSPITALITY INDUSTRY

Fanghong Jiao, Bradley University, U.S.A. Wenxiang Lu, Bradley University, U.S.A.

12:15 p.m. – 1:30 p.m. LUNCHEON Salon 1-2 Prefunction

Chairperson: Alvaro Gasca Neri, E.Y., Mexico

1:45 p.m. – 3:15 p.m. CONCURRENT SESSIONS

SESSION 2(A): “AUDITING ISSUES” Plantation 1 Moderator: Shu Lin, California State University, Fresno, U.S.A.

FINANCIAL REPORTING QUALITY AND AUDIT FEES – RISK COMMITTEE PERSPECTIVE Md. Borhan Uddin Bhuiyan, Massey University, New Zealand Jamal Roudaki, Lincoln University, New Zealand Ummya Salma, Bangladesh University of Professionals, Bangladesh Siata Tavite, Massey University, New Zealand

LEARNING BY EXAMPLE: AUDIT TEAM LEADER MODELING FALLIBILITY, AND AUDIT TEAM MEMBER LEARNING FROM ERRORS

Craig Emby, Simon Fraser University, Canada

THE IMPACT OF DIGITAL INNOVATION ON PROFESSIONAL PUBLIC ACCOUNTING PRACTICE: THE AUSTRALIAN EXPERIENCE

Colleen Hayes, The Australian National University, Australia Mayada Hansnata, The Australian National University, Australia

SESSION 2(B): “FINANCIAL ACCOUNTING ISSUES” Plantation 2 Moderator: Lizhong Hao, California State University, Fresno, U.S.A.

BUSINESS-TO-BUSINESS CREDIT GRANTING IN THE MALAYSIAN MANUFACTURING SECTOR Salima Paul, Plymouth University, U.K. S. Susela Devi, UNITAR International University, MalaysiaCherif Guermat, University of The West of England, U.K.

CONSERVATIVE LOAN LOSS ALLOWANCE AND BANK LENDING Yusuke Takasu, Yokohama National University, Japan Makoto Nakano, Hitotsubashi University, Japan

VALUE RELEVANCE OF CORPORATE DONATIONS Noor Houqe, Victoria University of Wellington, New Zealand St. George Thomas, Victoria University of Wellington, New Zealand Tony van Zijl, Victoria University of Wellington, New Zealand Wares Karim, Eastern Illinois University, U.S.A.

SESSION 2(C): “TAXATION ISSUES” Plantation 3 Moderator: Hiroshi Ohnuma, Tokyo University of Science, Japan

THE IMPACT OF CORPORATE TAX AVOIDANCE ON DEBT FINANCING IN A FULL DIVIDEND IMPUTATION SYSTEM

Youngdeok Lim, University of New South Wales, Australia Rodney Brown, London School of Economics and Political Science, U.K. Chris Evans, University of New South Wales, Australia

THE ETHICS OF TAX EVASION: A SURVEY OF CHINESE BUSINESS STUDENTS IN USA AND CHINA

Anwar Salimi, California State Polytechnic University, Pomona, U.S.A. Robert McGee, Fayetteville State University, U.S.A.

SESSION 2(C): “TAXATION ISSUES” (CONT’D) Plantation 3

TAX SUBSIDY OR TAX BURDEN, AND STOCK PRICE CRASH RISK Siwoon Hong, Sungkyunkwan University, Korea Wonsun Paek, Sungkyunkwan University, Korea

THE ASSOCIATION OF CORPORATE TAX AVOIDANCE AND COST OF EQUITY CAPITAL: KOREAN EVIDENCE

Jin Hee Kim, Korea University, Korea

SESSION 2(D): “CAPITAL MARKETS” Molokai Moderator: Parveen Gupta, Lehigh University, U.S.A.

CORPORATE OWNERSHIP DISCREPANCY AND COST OF EQUITY CAPITAL: EVIDENCE FROM KOREAN BUSINESS GROUPS “CHAEBOLS”

Dong Heun Lee, Korea University, Korea Jeong Un Choi, Daegu University, Korea Mun Ho Hwang, Kyung Hee University, Korea Seung Min Cha, Kyonggi University, Korea

ACCRUALS COMPONENTS AND THE ACCRUALS ANOMALY IN KOREA Young Jun Kim, Hankuk University of Foreign Studies, Korea Jung Hoon Kim, Florida International University, U.S.A. Sewon Kwon, Seoul National University, Korea

ANALYSIS OF EQUITY VALUATION MODELS AND TARGET PRICE ACCURACY: EVIDENCE FROM ANALYSTS’ REPORTS IN INDONESIA

Ryan Pelealu, Universitas Indonesia, Indonesia Budi Frensidy, Universitas Indonesia, Indonesia

SESSION 2(E): “ACCOUNTING EDUCATION” Maui Moderator: Wm. Dennis Huber, Capella University, U.S.A.

THE SASB’S NEW ACCOUNTING CREDENTIAL – POTENTIALLY ADDING EXPONENTIAL VALUE TO THE “CPA” CREDENTIAL

Denise English, Boise State University, U.S.A.

PROFESSIONAL SKILLS REQUIRED OF ACCOUNTANTS: WHAT DO AUSTRALIAN AND NEW ZEALAND JOB ADVERTISEMENTS TELL US?

Lin Mei Tan, Massey University, New Zealand Fawzi Laswad, Massey University, New Zealand

U.S. BUSINESS NEEDS FOR INTERNATIONAL EXPERTISE BY FUNCTIONAL BUSINESS DISCIPLINE: IMPLICATIONS FOR ACCOUNTING EDUCATION

Shirley Daniel, University of Hawaii at Manoa, U.S.A. Fujiao Xie, University of Hawaii at Manoa, U.S.A. Zhou Chen, University of Hawaii at Manoa, U.S.A. Benwari Kedia, The University of Memphis, U.S.A.

SESSION 2(F): “FINANCE ISSUES” Oahu Moderator: K.C. Chen, California State University, Fresno, U.S.A.

RELATIVE INEFFICIENCY BETWEEN INVESTORS AND ANALYSTS ON STOCK MARKET ANOMALY

Ji Yeon Ryu, Korea University, Korea

OWNERSHIP STRUCTURE AND SYNCHRONICITY IN CANADA: OWNERSHIP CONCENTRATION, FAMILY OWNERSHIP AND MULTIPLE LARGE CONTROLLING SHAREHOLDERS Jennifer Miele, California State University, Fresno, U.S.A. DEFAULT NUMBER PREDICTION BY FINANCIAL/ECONOMIC INDEX AND GRANGER’S CAUSALITY AMONG INDEX Ono Tadashi, University of Tsukuba, Japan SESSION 2(G): “ENVIRONMENTAL ISSUES” Niihau

Moderator: Jacqueline Birt, The University of Queensland, Australia SUSTAINABILITY REPORTING BY LISTED FIRMS IN INDONESIA

Sylvia Siregar, Universitas Indonesia, Indonesia Siti Nurwahyu Harahap, Universitas Indonesia, Indonesia Fitriany Amarullah, Universitas Indonesia, Indonesia Desi Adhariani, Universitas Indonesia, Indonesia

CORPORATE SOCIAL RESPONSIBILITY AND THE COST OF DEBT Lijuan Zhang, The Australian National University, Australia Chi Chon Leng, The Australian National University, Australia FACTORS AFFECTING CREDIBILITY PERCEPTIONS OF SUSTAINABILITY REPORTS Greg Shailer, The Australian National University, Australia Xinning Xiao, Monash University, Australia 3:15 p.m. – 3:30 p.m. COFFEE BREAK Salon Prefunction 3:30 p.m. – 5:00 p.m. CONCURRENT SESSIONS SESSION 3(A): “AUDITING ISSUES” Plantation 1

Moderator: Adrian Gepp, Bond University, Australia AUDIT FEES AND CORRUPTION Noor Houqe, Victoria University of Wellington, New Zealand Andrew Alan Mahoney, Victoria University of Wellington, New Zealand Tony van Zijl, Victoria University of Wellington, New Zealand Wares Karim, Eastern Illinois University, U.S.A. DIFFERENCES IN THE INFLUENCE OF A SUPERIOR’S KNOWN PREFERENCES ON THE JUDGMENTS OF AUDITORS FROM LARGE AND SMALL FIRMS Noel Harding, University of New South Wales, Australia Sarah Kim, University of New South Wales, Australia

SESSION 3(A): “AUDITING ISSUES” (CONT’D) Plantation 1

INSTITUTIONAL PRESSURE AND IMPROVISATIONAL AUDITOR BEHAVIOUR: THE CASE OF INDONESIA

Suyanto, Universitas Gadjah Mada, Indonesia

SESSION 3(B): “FINANCIAL ACCOUNTING ISSUES” Plantation 2 Moderator: Md. Borhan Uddin Bhuiyan, Massey University, New Zealand

RESIDUAL INCOME VALUATION AND GROWTH Andreas Schueler, Universitaet der Bundeswehr Munich, Germany

AVON CALLING: GUANXI AND THE FOREIGN CORRUPT PRACTICES ACT Michael Knapp, University of Oklahoma, U.S.A. Carol Knapp, University of Oklahoma, U.S.A.

ACCOUNTING CONSERVATISM IN THE UAE BANKS Magdi El-Bannany, University of Sharjah, U.A.E.

SESSION 3(C): “ETHICAL ISSUES” Plantation 3 Moderator: Keitha Dunstan, Bond University, Australia

A NEW INSTRUMENT TO ASSESS PROFESSIONALISM IN ACCOUNTING Gregory Liyanarachchi, University of Wisconsin-La Crosse, U.S.A. Ralph Adler, University of Otago, New Zealand

RESTORING TRUST: RETHINKING THE MARKET PHILOSOPHY Frances Chua, Massey University, New Zealand Asheq Rahman, Auckland University of Technology, New Zealand

A SOCIAL IDENTITY PERSPECTIVE OF PROFESSIONAL ETHICAL CODES Shawn Liang Chee Mah, RMIT University, Australia Steven Dellaportas, RMIT University, Australia Michael Kend, RMIT University, Australia

SESSION 3(D): “CAPITAL MARKETS” Molokai Moderator: Ray McNamara, James Cook University, Australia

MANAGERIAL ABILITY AND ANALYST FORECAST BEHAVIOR: LARGE SAMPLE EVIDENCE Shiyou Li, Texas A&M University-Commerce, U.S.A.

COST OF DEBT AND EARNINGS ATTRIBUTES Sang Ho Lee, Korea University, Korea Tony Kang, McMaster University, Canada Ji Hye Kim, Korea University, Korea Yong Keun Yoo, Korea University, Korea

OWNERSHIP STRUCTURE AND RISK TAKING OF MALAYSIAN BANKING INSTITUTIONS: A COMPARATIVE MEASUREMENT APPLIED IN DEVELOPED AND EMERGING COUNTRIES

Nasyra Ab. Jamil, UNITAR Internatioanl University, Malaysia Rasidah Mohd. Said, Universiti Kebangsaan Malaysia, Malaysia Fauzias Mat Nor, Universiti Sains Islam Malaysia, Malaysia

SESSION 3(E): “CORPORATE GOVERNANCE” Maui Moderator: Craig Emby, Simon Fraser University, Canada

WHY FAMILY FIRMS PAY CASH DIVIDENDS IN EMERGING MARKETS; CORPORATE CONTROL AND FAMILY SUCCESSION IN KOREA

YoungKyung Ko, UNITAR International University, Malaysia

VOLUNTARY EMPLOYEE RELATED DISCLOSURES IN SMALL COMPANIES Tamara Zunker, Bond University, Australia Pamela Kent, University of Adelaide, Australia

EARNINGS MANAGEMENT AND INTERNAL CONTROL IN BANK-DOMINATED CORPORATE GOVERNANCE: EVIDENCE FROM JAPAN

Hideaki Sakawa, Nagoya City University, Japan Naoki Watanabel, Nagoya City University, Japan

SESSION 3(F): “MANAGERIAL ACCOUNTING ISSUES” Ohau Moderator: Lizhong Hao, California State University, Fresno, U.S.A.

THE IMPACT OF ENVIRONMENTAL ACTIVITY MANAGEMENT ON ENVIRONMENTAL PERFORMANCE

Thanh Phan, Macquarie University, Australia Kevin Baird, Macquarie University, Australia Sophia Su, Macquarie University, Australia

THE SUPPLIER–CUSTOMER RELATIONSHIP AND COST STRUCTURE IN JAPAN Ikuko Sasaki, Tohoku Gakuin University, Japan Atsushi Shiiba, Osaka University, Japan Kunimaru Takahashi, Aoyama Gakuin University, Japan

THE EFFECT OF CULTURAL INTEGRATION ON FINANCIAL PERFORMANCE POST-MERGER Rishma Vedd, California State University, Northridge, U.S.A. Nataliya Yassinski, California State University, Northridge, U.S.A.

SESSION 3(G): “INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUES” Niihau Moderator: Donna Street, University of Dayton, U.S.A.

PERCEPTIONS OF PRACTITIONERS, AUDITORS, AND ACADEMICS ON IFRS CONVERGENCE IN INDONESIA

Sylvia Siregar, Universitas Indonesia, Indonesia Chaerul Djusman Djakman, Universitas Indonesia, Indonesia Aria Farahmita, Universitas Indonesia, Indonesia Agustin Setia Ningrum, Universitas Indonesia, Indonesia

FINANCIAL STATEMENT ANALYSIS: EVIDENCE FROM CHINESE FIRMS Robert Yu, University of Wisconsin-Whitewater, U.S.A. Li Li Eng, Missouri University of Science and Technology, U.S.A. Xi Tian, Nanjing Agricultural University, China

IFRS CONVERGENCE IN MALAYSIA: THE EFFECT ON FINANCIAL STATEMENTS AND FINANCIAL RATIOS

Karen Ling Nee Wong, RMIT University, Australia Mahesh Joshi, RMIT University, Australia

6:00 p.m. – 7:00 p.m. COCKTAIL RECEPTION Salon Prefunction

7:00 p.m. – 10:00 p.m. GALA DINNER Salon 3-4

Chairperson: Cindy Yoshiko Shirata, Hosei University, Japan

TUESDAY, NOVEMBER 8

8:30 a.m. – 3:30 p.m. GENERAL REGISTRATION Salon Prefunction

8:45 a.m. – 10:15 a.m. CONCURRENT SESSIONS

SESSION 4(A): “AUDITING ISSUES” Plantation 1 Moderator: Fanghong Jiao, Bradley University, U.S.A.

HOW DO INDUSTRY SPECIALIST AUDITORS IMPROVE AUDIT QUALITY? EVIDENCE FROM NEW AUDIT HOUR BREAKDOWN DISCLOSURE FROM KOREA

Yongsuk Yun, Korea University, Korea Soo Young Kwon, Korea University, Korea Han Yi, Korea University, Korea Kyoungchul Jung, Korea University, Korea

THE RELATIONSHIP BETWEEN EXTERNAL AND INTERNAL AUDIT COSTS Kenichi Yazawa, Aoyama Gakuin University, Japan

THE DIMENSION OF INFORMATION SYSTEMS CONTROL JUDGMENTS Ray McNamara, James Cook University, Australia

ANALYSIS OF REGULATIONS ON THE TERMINATION OF MANDATORY AUDIT FIRM ROTATION IN INDONESIA

Fitriany Abdul Mutholib, Universitas Indonesia, Indonesia Hafiz Adhitama, Universitas Indonesia, Indonesia

SESSION 4(B): “FINANCIAL ACCOUNTING ISSUES” Plantation 2 Moderator: Julie Harrison, The University of Auckland, New Zealand

HOW DO FIRMS GROW THEIR REVENUE? A FRAMEWORK OF REVENUE MANAGEMENT PRACTICE

Julie Harrison, The University of Auckland, New Zealand Frederick Ng, University of Auckland, New Zealand Paul Rouse, University of Auckland, New Zealand

EXPENSE RECOGNITION AND STOCK PRICE CRASH RISK Wonsun Paek, Sungkyunkwan University, Korea

FINANCIAL DISTRESS PREDICTION USING CUTTING-EDGE STATISTICAL TECHNIQUES Khaled Halteh, Bond University, Australia Adrian Gepp, Bond University, Australia Kuldeep Kumar, Bond University, Australia

SESSION 4(C): “ENVIRONMENTAL SOCIAL RESPONSIBILITY” Plantation 3 Moderator: Chi Chon Leng, The Australian National University, Australia

MANAGERS’ ETHICAL JUDGMENT ON CSR OVERINVESTMENT: AN EGOCENTRIC PERSPECTIVE

Poppy Dian Indira Kusuma, Universitas Jenderal Soedirman, Indonesia Mahfud Sholihin, Universitas Gadjah Mada, Indonesia

ESG RISK MANAGEMENT BY NORDIC INSTITUTIONAL INVESTORS Lars Hassel, Umeå University, Sweden Natalia Semenova, Linnaeus University, Sweden

THE IMPACT OF LEAHY-SMITH AMERICA INVENTS ACT ON INNOVATIVE FIRMS’ INFORMATION ENVIRONMENT Hai Wu, Australian National University, Australia Rui Huang, Australian National University, Australia Louise Lu, Australian National University, Australia SESSION 4(D): “CAPITAL MARKETS” Molokai

Moderator: K.C. Chen, California State University, Fresno, U.S.A. CAPITAL MARKET REACTION TO DISCLOSURE IN DISASTER: A CASE STUDY OF THE 2016 KUMAMOTO EARTHQUAKES

Kenji Kawashima, Hosei University, Japan

VALUE RELEVANCE OF ACCOUNTING INFORMATION: EMPIRICAL EVIDENCES FROM CHINA Ying Guo, California State University, East Bay, U.S.A. Xiao Yan Li, Beijing University of Chemical Technology, China David C. Yang, University of Hawaii at Manoa, U.S.A. Hai Feng Li, Beijing Fengtai Government, China DOES DIVIDEND PAYOUT OF JAPANESE FIRMS CHANGE AFTER THE INTRODUCTION OF COMPREHENSIVE INCOME? Akihiro Nedate, Fukushima University, Japan SESSION 4(E): “CORPORATE GOVERNANCE” Maui

Moderator: Sylvia Veronica Siregar, Universitas Indonesia, Indonesia WHAT AFFECTS FACTOR LOADING UNCERTAINTY AND EXPECTED RETURNS? THE ROLE OF ACCOUNTING QUALITY

Charles Shi, National University of Singapore, Singapore Chenkai Ni, Fudan University, China

CORPORATE PERFORMANCE REPORTING WITHIN SUSTAINABILITY CONCEPTS Irena Hejduk, Warsaw School of Economics, Poland Anna Karmanska, Warsaw School of Economics, Poland ACCOUNTANTS IN SMALL PUBLIC PRACTICE AND THEIR PROFESSIONAL IDENTITY, ORGANISATIONAL AND CLIENT CONFLICT? Francesco Maisano, RMIT University, Australia Steven Dellaportas, RMIT University, Australia

SESSION 4(F): “EARNINGS MANAGEMENT” Oahu Moderator: Magdi El-Bannany, University of Sharjah, U.A.E.

MANAGEMENT FORECAST CONSISTENCY AND MARKET REACTION

Yuji Shirabe, Hitotsubashi University, Japan

MULTIPLE MARKET ASSET TRADING AND DIFFERENTIAL INFORMATION QUALITY: JOINT ADR AND EQUITY SHARE MARKET RESPONSE TO REPORTED EARNINGS AND SEC DISCLOSURES

Michael H. Senteney, Ohio University, U.S.A. Mohammad S. Bazaz, California State University, San Bernardino, U.S.A. David L. Senteney, California State University, San Bernardino, U.S.A.

ON NEO-COLONIALISM AND THE COLONIZATION OF ACCOUNTING RESEARCH Wm. Dennis Huber, Capella University, U.S.A. SESSION 4(G): “RESEARCH FORUM: MANAGERIAL AND FINANCIAL ACCOUNTING ISSUES” Niihau

Moderator: Nasyra Ab. Jamil, UNITAR International University, Malaysia CUSTOMER SATISFACTION, CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE, AND FIRM FINANCIAL PERFORMANCE: THE EVIDENCE FROM INDONESIA’S LISTED COMPANIES

Dahlia Sari, Universitas Indonesia, Indonesia Lindawati Gani, Universitas Indonesia, Indonesia Hilda Rossieta, Universitas Indonesia, Indonesia

IMPACT OF AGENT-BASED MODELING ON MANAGEMENT ACCOUNTING RESEARCH Takahito Kondo, Kyoto Sangyo University, Japan Takeshi Nishii, Senshu University, Japan DO GENDER AND ETHICAL CODE OF CONDUCT AFFECT BUDGETARY SLACK ETHICAL JUDGMENT? EVIDENCE FROM INDONESIA Jurica Lucyanda, Universitas Bakrie, Indonesia Mahfud Sholihin, Universitas Gadjah Mada, Indonesia THE ROLE OF COGNITIVE MORAL DEVELOPMENT (CMD) IN DECISION MAKING PROCESS: TAX COMPLIANCE ANALYSIS IN THE SYNERGISTIC AND ANTAGONISTIC CLIMATES

Syaiful Iqbal, Brawijaya University, Indonesia Mahfud Sholihin, Gadjah Mada University, Indonesia

10:15 a.m. – 10:30 a.m. COFFEE BREAK Salon Prefunction 10:30 a.m. – 12:00 p.m. PANEL DISCUSSION Plantation 1-2 “OCI AND RELEVANCE OF PERFORMANCE MEASURES: THE RECENT INQUIRY BY IASB AND FASB” Panelists: Wei-Guo Zhang, Member of the International Accounting Standards Board, U.K. Donna Street, Mahrt Chair in Accounting, University of Dayton, U.S.A.

12:15 p.m. – 2:00 p.m. LUNCHEON Salon 1-2 Prefunction PRESENTATION OF VERNON ZIMMERMAN BEST PAPER AWARDS

Chairperson: Shu Lin, California State University, Fresno, U.S.A.

Presenter: Shu Lin, California State University, Fresno, U.S.A. S. Susela Devi, UNITAR International University, Malaysia

2:15 p.m. – 3:45 p.m. CONCURRENT SESSIONS

SESSION 5(A): “AUDITING ISSUES” Plantation 1 Moderator: YoungKyung Ko, UNITAR International University, Malaysia

CLIENTS’ INVOLVEMENT IN OFFSHORE FINANCIAL CENTERS AND AUDIT PRICING Sanjian Zhang, California State University, Long Beach, U.S.A. Wenxia Ge, University of Manitoba, Canada Jeong-Bon Kim, University of Waterloo, Canada Tiemei Li, University of Ottawa, Canada

A POSITIVE ASSOCIATION BETWEEN ACCRUALS QUALITY AND A CERTIFIED PUBLIC ACCOUNTANT IN THE AUDIT COMMITTEE: EVIDENCE FROM JAPAN

Taketoshi Mihara, University of Tsukuba, Japan

EFFECTS OF SELF-REGULATION ON AUDIT QUALITY: PUBLIC GOODS EXPERIMENTS Yoshitaka Hirose, Takasaki University of Commerce Junior College, Japan Akira Goto, Yamanashi Eiwa College, Japan

SESSION 5(B): “FINANCIAL ACCOUNTING ISSUES” Plantation 2 Moderator: Frances Chua, Massey University, New Zealand

NETWORKING IN THE DIFFUSION OF INNOVATION IN PUBLIC SECTOR: THE ROLE OF PROFESSIONALS ASSOCIATION

Thusitha Dissanayake, RMIT University, Australia Steven Dellaportas, RMIT University, Australia

STUDY OF THE ASSOCIATION BETWEEN THE LEVEL OF DISCLOSURE AND PROPERTY CONCENTRATION IN BRAZILIAN LISTED COMPANIES THAT EXPLOIT BIOLOGICAL ASSETS

Ilírio Rech Goiás, Federal University, Brazil Ducineli Régis Botelho, University of Brasília, Brazil Júlia Peres Tortoli, University of São Paulo, Brazil Paulo Alexandre da Silva Pires, State University of Londrina, Brazil

DOES CONTROL SELF-ASSESSMENT IMPROVE FINANCIAL REPORTING QUALITY? Hiroshi Uemura, Kochi University of Technology, Japan

SESSION 5(C): “INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUES” Plantation 3 Moderator: Cindy Yoshiko Shirata, Hosei University, Japan

QUALIFICATIONS ON ACCOUNTING PROFESSION: GLOBALIZATION AND QUALIFICATION SYSTEM AND EDUCATION, AND INTERRELATIONSHIPS WITH RESPECTIVE NATIONAL QUALIFICATIONS Hiroko Inokuma, Tohoku University, Japan Masatoshi Sakaki, Ernst & Young ShinNihon LLC, Japan

IFRS ADOPTION, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH IN SUB-SAHARAN AFRICA

S. Susela Devi, UNITAR International University, Malaysia Godfred Matthew Yaw Owusu, Universiti Putra Malaysia, Malaysia Nur Ashiking Binti Saat, Universiti Putra Malaysia, Malaysia Law Siong Hook, Universiti Putra Malaysia, Malaysia

SOME THEORETICAL AND METHODOLOGICAL SUGGESTIONS FOR STUDIES EXAMINING GLOBAL CONVERGENCE OF FINANCIAL REPORTING

A F M Mainul Ahsan, Macquarie University, Australia Chris Patel, Macquarie University, Australia

SESSION 5(D): “TAXATION ISSUES” Malokai

Moderator: David Yang, University of Hawaii at Manoa, U.S.A. THE ASSOCIATION BETWEEN CORPORATE TAX AVOIDANCE AND AUDIT EFFORTS: EVIDENCE FROM KOREA

Na Young An, Kyungpook National University, Korea Seong Ho Bae, Kyungpook National University, Korea

TAX ANTI-AVOIDANCE THROUGH TRANSFER PRICING: THE CASE OF STARBUCKS U.K. Christian Plesner Rossing, Copenhagen Business School, Denmark Thomas Riise Johansen, Copenhagen Business School, Denmark Thomas Pearson, University of Hawaii at Manoa, U.S.A. KEY FACTORS IN CORPORATE VALUATION DURING A RISK EVENT – TRANSFER PRICING TAXATION IN JAPAN Hiroshi Ohnuma, Tokyo University of Science, Japan Yuzuru Sakurada, Hokkaido University, Japan A COMPARISON OF INVESTORS’ AND ANALYSTS’ BIASES IN INTERPRETING BOOK-TAX DIFFERENCE: EVIDENCE FROM KOREAN STOCK MARKET Hongmin Chun, Chungbuk National University, Korea SESSION 5(E): “RESEARCH FORUM: CORPORATE GOVERNANCE” Maui

Moderator: Naoki Watanabel, Nagoya City University, Japan TREND OF EARNINGS QUALITY UNDER IFRS ERA: IN CASE OF KOREA

Jae Gyung Jung, Tongmyong University, Korea Shawn Hyuk, Keimyung University, Korea Minyoung Noh, Hawaii Pacific University, U.S.A.

SESSION 5(E): “RESEARCH FORUM: CORPORATE GOVERNANCE” (CONT’D) Maui DISCRETION IN THE DEFERRED TAX VALUATION ALLOWANCE AND FIRMS’ DIVIDEND POLICY: EVIDENCE FROM JAPAN Koreyoshi Seki, Hitotsubashi University, Japan Takuma Kochiyama, Asia University, Japan THE PORTFOLIO OF FOREIGN DIRECT INVESTMENT AND CORPORATE TAX AVOIDANCE OF JAPANESE MULTINATIONAL FIRMS Junjian Gu, Nagoya University, Japan Hu Dan Semba, Nagoya University, Japan SESSION 5(F): “RESEARCH FORUM: FINANCIAL AND AUDITING ISSUES” Oahu

Moderator: Lars Hassel, Umeå University, Sweden AUDIT COMMITTEE DIVERSITY AND AUDIT FEES: EVIDENCE FROM AN EMERGING ECONOMY

Seema Miglani, LaTrobe University, Australia

THE NEW ACCOUNTING LANDMINES H. Davis Sherman, Northeastern University, U.S.A. S. David Young, INSEAD, France A RE-EXAMINATION OF LA PORTA ET AL. (1998): DOES LEGAL ENVIRONMENT REALLY MATTER? Takashi Yaekura, Waseda University, Japan Takashi Obinata, The University of Tokyo, Japan HOW MULTIPLE ACCOUNTABILITIES AND MEANS-END DECOUPLING INFLUENCE ROLE AMBIGUITY AND JOB SATISFACTION: THE CASE OF HIGHER EDUCATION INSTITUTIONS Gerhard Speckbacher, Vienna University of Economics and Business, Austria Marius Metzl, Vienna University of Economics and Business, Austria

3:45 p.m. – 4:00 p.m. COFFEE BREAK Salon Prefunction

4:00 p.m. – 5:30 p.m. CONCURRENT SESSIONS SESSION 6(A): “EARNINGS MANAGEMENT” Plantation 1

Moderator: David Senteney, California State University, San Bernardino, U.S.A. THE SENSITIVITY OF THE RELATIONSHIP BETWEEN CEO COMPENSATION AND EARNINGS MANAGEMENT TO GLOBAL FINANCIAL CRISIS

Muhammad Jahangir Ali, La Trobe University, Australia Oheneba Assenso-Okofo, La Trobe University, Australia Kamran Ahmed, La Trobe University, Australia

EARNINGS MANAGEMENT USING CLASSIFICATION SHIFTING: EVIDENCE FROM JAPAN

Ryosuke Fujitani, Hitotsubashi University, Japan HOW DO DIFFERENCES OF ATTRIBUTES BETWEEN CONSOLIDATED AND NONCONSOLIDATED EARNINGS AFFECT DIVIDEND BEHAVIOR IN JAPANESE FIRMS?

Tetsuyuki Kagaya, Hitotsubashi University, Japan Kenji Kometani, Tohoku University, Japan

SESSION 6(B): “INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUES” Plantation 2 Moderator: Gregory Liyanarachchi, University of Wisconsin-La Crosse, U.S.A.

THE IMPACT OF ELIMINATING THE 20-F RECONCILIATION ON THE COST OF DEBT: AN EXPLORATORY STUDY

Parveen Gupta, Lehigh University, U.S.A. Lucy Huajing Chen, Villanova University, U.S.A. Saiying Deng, Southern Illinois University, U.S.A. Heibatollah Sami, Lehigh University, U.S.A.

THE INFLUENCE OF ISLAMIC RELIGIOSITY ON AUDITORS’ PREFERENCE FOR PRINCIPLE-BASED OR RULE-BASED JUDGMENTS IN PAKISTAN

Nazia Adeel, Macquarie University, Australia Nonna Martinov-Bennie, Macquarie University, Australia Chris Patel, Macquarie University, Australia

THE IFRS APPLICATION AND COMPARABILITY OF FINANCIAL STATEMENTS Ichiro Mukai, Aichi Gakuin University, Japan

SESSION 6(C): “MANAGERIAL ACCOUNTING ISSUES” Plantation 3 Moderator: Jacqueline Birt, The University of Queensland, Australia

THE PRINCIPAL INSTRUCTS INPUT OR THE AGENT SETS INPUT TARGETS: WHICH IS PREFERABLE IN ORGANIZATIONAL CONTROL?

Toshiaki Wakabayashi, Waseda University, Japan

THE INTERACTIVE EFFECTS OF EMPLOYEES’ HORIZON PREFERENCES AND THEIR SUPERIOR’S HORIZON PREFERENCES ON THEIR PROJECT HORIZON DECISIONS

Lei Wang, Eastern Washington University, U.S.A. Lei Dong, Eastern Washington University, U.S.A. Arsen Djatej, Eastern Washington University, U.S.A.

THE PROCESS COSTING IN THE FIFO PERSPECTIVE Hiroto Kataoka, Meiji University, Japan Hirohisa Hirai, Takasaki City University of Economics, Japan

SESSION 6(D): “RESEARCH FORUM: CORPORATE GOVERNANCE” Molokai Moderator: Khaled Halteh, Bond University, Australia

POLITICALLY CONNECTED DIRECTOR AND STOCK PRICE CRASH RISK Kyeongmin Jeon, Sungkyunkwan University, Korea

RELATIVE PERFORMANCE EVALUATION WITHIN BUSINESS GROUPS: EVIDENCE FROM KOREA

Jinsuk Heo, Korea University, Korea Eung Gil Kim, Korea University, Korea Jinbae Kim, Korea University, Korea

IMPLEMENTATION OF IFRS – CONSIDERATIONS OF NATIONAL STANDARD SETTERS Hiroko Inokuma, Tohoku University, Japan Takashi Shimizu, University of Tokyo, Japan

SESSION 6(E): “RESEARCH FORUM: FINANCIAL ACCOUNTING ISSUES” Maui Moderator: Alvaro Gasca Neri, E.Y., Mexico

THE EFFECT OF CUSTOMER SATISFACTION ON FINANCIAL PERFORMANCE FOR EACH CUSTOMER SEGMENT: EMPIRICAL ANALYSIS OF A JAPANESE HOTEL COMPANY

Kayo Mitani, Meiji University, Japan

HOW DO CHANGES IN LEASE ACCOUNTING STANDARDS AFFECT LEASE TRANSACTIONS? Yukari Takahashi, Musashi University, Japan Tetsuyuki Kagaya, Hitotsubashi University, Japan ACCOUNTING CONSERVATISM AND FINANCIAL CRISIS IN INDONESIA Winanto Widayat, Universitas Indonesia, Indonesia Utoyo Widayat, Universitas Indonesia, Indonesia Achmad Hizazi, Universitas Jambi, Indonesia WEDNESDAY, NOVEMBER 9 Optional Tour

TWENTY-EIGHTH ASIAN-PACIFIC CONFERENCE

ON INTERNATIONAL ACCOUNTING ISSUES

PROCEEDINGS

November 6-9, 2016 MAUI, HAWAII

TABLE OF CONTENTS “THE IMPACT OF INTERNAL AUDIT FUNCTION QUALITY ON MANAGEMENT FORECAST PRECISION AND ACCURACY”

Indranil Bardhan, Shu Lin, and Lizhong Hao .................................................................1

“ABNORMAL AUDIT EFFORTS AND COST OF EQUITY CAPITAL: EVIDENCE FROM KOREA”

Seok Woo Jeong, Nam Chul Jung, Tony Kang, Sang Ho Lee, and Yong Keun Yoo .....2

“THE DYNAMICS OF INTERNAL AUDIT’S INVOLVEMENT IN NON-FINANCIAL ASSURANCE AND CONSULTING”

Dominic Soh and Nonna Martinov-Bennie .....................................................................3

“INTEGRATED REPORTING: THE UNGREENING OF SUSTAINABILITY REPORTING?” Caroline Bridges and Julie Harrison ................................................................................4

“IMPROVED MODELS TO DETECT FRAUD IN FINANCIAL STATEMENTS” Adrian Gepp, Kuldeep Kumar, and Sukanto Bhattacharya .............................................5

“DISCLOSURE OVERLOAD? A PROFESSIONAL-USER PERSPECTIVE ON THE USEFULNESS OF GENERAL PURPOSE FINANCIAL STATEMENTS”

Michael S. Drake, Jeffrey Hales, and Lynn Rees ............................................................6

“MANAGEMENT INCENTIVES FOR PRIOR PERIOD ERROR CORRECTIONS UNDER IAS 8”

Pamela Kent and Richard Kent .......................................................................................7

“CORPORATE GOVERNANCE AND STOCK PRICES OF JAPANESE FIRMS THAT ADOPT IFRS: INTERIM EVIDENCE”

Shun Sato and Fumiko Takeda ........................................................................................8

“SFAS 157 AND THE PREDICTIVE VALUE OF U.S. BANK FAIR VALUES” Dimu Ehalaiye, Mark Tippett, and Tony van Zijl ...........................................................9

“DIRECTORS FROM RELATED INDUSTRIES AND MANAGEMENT FORECAST PROPERTIES: AN INTERNATIONAL STUDY”

Herita Akamah, Ervin L. Black, and Dipankar Ghosh ..................................................10

“THE U.S. MARKET REACTION TO REGULATION OF SOCIAL MEDIA DISCLOSURES”

Amanda Aw Yong, Ching Tung Keung, and Yuen Teen Mak .....................................11

“ARE IPOS ‘OVERPRICED’? STRATEGIC INTERACTIONS BETWEEN THE ENTREPRENEUR AND THE UNDERWRITER BY LYING”

Kazunori Miwa, Satoshi Taguchi, and Tatsushi Yamamoto .........................................12 “MANAGERIAL ABILITY AND ACCOUNTING CONSERVATISM”

Sam Han, Eung Gil Kim, Gun Lee, and Tony Kang .....................................................13 “CHANGE IN FUNDING SOURCES AND PERFORMANCE MANAGEMENT SYSTEMS IN NON-PROFIT ORGANISATIONS – A CASE STUDY”

Manzurul Alam, John Griffith, David Holloway, Megan Paull, and Anne Clear .........14

“INNOVATION-DRIVEN PERFORMANCE IN CHINA: TRUTH OR FICTION?” Demetris Christodoulou, Baruch Lev, and Le Ma ........................................................15

“VOLUNTARY EXTERNAL ASSURANCE OF CORPORATE SOCIAL RESPONSIBILITY REPORTS AND THE DOW JONES SUSTAINABILITY INDEX MEMBERSHIP: INTERNATIONAL EVIDENCE”

Peter M. Clarkson, Yue Li, Gordon Richardson, and Albert Tsang .............................16 “AN EMPIRICAL STUDY OF GOING-PRIVATE FIRMS IN JAPAN BEING MADE FULLY OWNED SUBSIDIARIES BY THEIR PARENT COMPANIES”

Chieko Matsuda .............................................................................................................17

“A CROSS-NATIONAL STUDY OF THE IMPACT OF CHANGES IN INSTITUTIONAL ENVIRONMENT ON CORPORATE GOVERNANCE PRACTICES”

Shirley J. Daniel, Jaehyeon Kim, and Joshua K. Cieslewicz ........................................18

“REAL EARNINGS MANAGEMENT, THE COST OF DEBT AND CAPITAL MARKET DEVELOPMENT – INTERNATIONAL ANALYSIS”

Ji Hye Kim, Tony Kang, Sang Ho Lee, and Yong Keun Yoo ......................................19

“PREDICTIVE ABILITY OF FAIR VALUE MEASUREMENT FOR COMMERCIAL BANKS’ FUTURE EARNINGS: EVIDENCE FROM POST-FINANCIAL-CRISIS CHINA”

Hong Xiao and Qiao Wang ...........................................................................................20

“EARNINGS MANAGEMENT, BENCHMARKING, AND MARKET VALUATION – A PERSPECTIVE FROM THE HOSPITALITY INDUSTRY”

Fanghong Jiao and Wenxiang Lu ..................................................................................21 “FINANCIAL REPORTING QUALITY AND AUDIT FEES – RISK COMMITTEE PERSPECTIVE”

Md. Borhan Uddin Bhuiyan, Jamal Roudaki, Ummya Salma, and Siata Tavite ..........22

“LEARNING BY EXAMPLE: AUDIT TEAM LEADER MODELING FALLIBILITY, AND AUDIT TEAM MEMBER LEARNING FROM ERRORS”

Craig Emby ....................................................................................................................23 “THE IMPACT OF DIGITAL INNOVATION ON PROFESSIONAL PUBLIC ACCOUNTING PRACTICE: THE AUSTRALIAN EXPERIENCE”

Mayada Hansnata and Colleen Hayes ...........................................................................24

“BUSINESS-TO-BUSINESS CREDIT GRANTING IN THE MALAYSIAN MANUFACTURING SECTOR”

Salima Paul, Susela Devi, and Cherif Guermat .............................................................25 “CONSERVATIVE LOAN LOSS ALLOWANCE AND BANK LENDING”

Yusuke Takasu and Makoto Nakano .............................................................................26

“VALUE RELEVANCE OF CORPORATE DONATIONS” St. George Thomas, Noor Houqe, Tony van Zijl, and Wares Karim ............................27

“THE IMPACT OF CORPORATE TAX AVOIDANCE ON DEBT FINANCING IN A FULL DIVIDEND IMPUTATION SYSTEM”

Rodney Brown, Youngdeok Lim, and Chris Evans ......................................................28

“THE ETHICS OF TAX EVASION: A SURVEY OF CHINESE BUSINESS STUDENTS IN USA AND CHINA”

Robert W. McGee and Anwar Y. Salimi .......................................................................29

“TAX SUBSIDY OR TAX BURDEN, AND STOCK PRICE CRASH RISK” Siwoon Hong and Wonsun Paek ...................................................................................30

“THE ASSOCIATION OF CORPORATE TAX AVOIDANCE AND COST OF EQUITY CAPITAL: KOREAN EVIDENCE”

Jin Hee Kim ...................................................................................................................31

“CORPORATE OWNERSHIP DISCREPANCY AND COST OF EQUITY CAPITAL: EVIDENCE FROM KOREAN BUSINESS GROUPS ‘CHAEBOLS’”

Seung Min Cha, Dong Heun Lee, Muh Ho Hwang, and Jeong Un Choi ......................32 “ACCRUALS COMPONENTS AND THE ACCRUALS ANOMALY IN KOREA”

Jung Hoon Kim, Young Jun Kim, and Sewon Kwon ...................................................33 “ANALYSIS OF EQUITY VALUATION MODELS AND TARGET PRICE ACCURACY: EVIDENCE FROM ANALYSTS’ REPORTS IN INDONESIA”

Ryan Pelealu and Budi Frensidy ...................................................................................34

“THE SASB’S NEW ACCOUNTING CREDENTIAL – POTENTIALLY ADDING EXPONENTIAL VALUE TO THE ‘CPA’ CREDENTIAL”

Denise M. English .........................................................................................................35 “PROFESSIONAL SKILLS REQUIRED OF ACCOUNTANTS: WHAT DO AUSTRALIAN AND NEW ZEALAND JOB ADVERTISEMENTS TELL US?”

Lin Mei Tan and Fawzi Laswad ....................................................................................36

“U.S. BUSINESS NEEDS FOR INTERNATIONAL EXPERTISE BY FUNCTIONAL BUSINESS DISCIPLINE: IMPLICATIONS FOR ACCOUNTING EDUCATION”

Shirley J. Daniel, Fujiao Xie, Zhou Chen, and Ben L. Kedia .......................................37

“RELATIVE INEFFICIENCY BETWEEN INVESTORS AND ANALYSTS ON STOCK MARKET ANOMALY”

Ji Yeon Ryu ...................................................................................................................38

“OWNERSHIP STRUCTURE AND SYNCHRONICITY IN CANADA: OWNERSHIP CONCENTRATION, FAMILY OWNERSHIP AND MULTIPLE LARGE CONTROLLING SHAREHOLDERS”

Jennifer Miele ................................................................................................................39

“DEFAULT NUMBER PREDICTION BY FINANCIAL/ECONOMIC INDEX AND GRANGER’S CAUSALITY AMONG INDEX”

Tadashi Ono ..................................................................................................................40

“SUSTAINABILITY REPORTING BY LISTED FIRMS IN INDONESIA” Sylvia Veronica Siregar, Siti Nurwahyu Harahap, Fitriany Amarullah, and Desi Adhariani

..........................................................................................................................................41

“CORPORATE SOCIAL RESPONSIBILITY AND THE COST OF DEBT” Lijuan Zhang and Chi Chon Leng .................................................................................42

“FACTORS AFFECTING CREDIBILITY PERCEPTIONS OF SUSTAINABILITY REPORTS”

Greg Shailer and Xinning Xiao .....................................................................................43

“AUDIT FEES AND CORRUPTION” Andrew Alan Mahoney, Noor Houqe, Tony van Zijl, and Wares Karim .....................44

“DIFFERENCES IN THE INFLUENCE OF A SUPERIOR’S KNOWN PREFERENCES ON THE JUDGMENTS OF AUDITORS FROM LARGE AND SMALL FIRMS”

Noel Harding and Sarah Kim ........................................................................................45

“INSTITUTIONAL PRESSURE AND IMPROVISATIONAL AUDITOR BEHAVIOUR: THE CASE OF INDONESIA”

Suyanto ..........................................................................................................................46

“RESIDUAL INCOME VALUATION AND GROWTH” Andreas Schueler ...........................................................................................................47

“AVON CALLING: GUANXI AND THE FOREIGN CORRUPT PRACTICES ACT” Michael C. Knapp and Carol A. Knapp ........................................................................48

“ACCOUNTING CONSERVATISM IN THE UAE BANKS” Magdi El-Bannany ........................................................................................................49

“A NEW INSTRUMENT TO ASSESS PROFESSIONALISM IN ACCOUNTING” Ralph Adler and Gregory A. Liyanarachchi .................................................................50

“RESTORING TRUST: RETHINKING THE MARKET PHILOSOPHY”

Frances C. Chua and Asheq R. Rahman .......................................................................51 “A SOCIAL IDENTITY PERSPECTIVE OF PROFESSIONAL ETHICAL CODES”

Shawn Liang Chee Mah, Steven Dellaportas, and Michael Kend ................................52 “MANAGERIAL ABILITY AND ANALYST FORECAST BEHAVIOR: LARGE SAMPLE EVIDENCE”

Shiyou Li .......................................................................................................................53 “COST OF DEBT AND EARNINGS ATTRIBUTES”

Sang Ho Lee, Tony Kang, Ji Hye Kim, and Yong Keun Yoo ......................................54

“OWNERSHIP STRUCTURE AND RISK TAKING OF MALAYSIAN BANKING INSTITUTIONS: A COMPARATIVE MEASUREMENT APPLIED IN DEVELOPED AND EMERGING COUNTRIES”

Nasyra Ab. Jamil, Rasidah Mohd. Said, and Fauziars Mat Nor ....................................55 “WHY FAMILY FIRMS PAY CASH DIVIDENDS IN EMERGING MARKETS; CORPORATE CONTROL AND FAMILY SUCCESSION IN KOREA”

YoungKyung Ko ...........................................................................................................56

“VOLUNTARY EMPLOYEE RELATED DISCLOSURES IN SMALL COMPANIES” Tamara Zunker and Pamela Kent ..................................................................................57

“EARNINGS MANAGEMENT AND INTERNAL CONTROL IN BANK-DOMINATED CORPORATE GOVERNANCE: EVIDENCE FROM JAPAN”

Hideaki Sakawa and Naoki Watanabel .........................................................................58

“THE IMPACT OF ENVIRONMENTAL ACTIVITY MANAGEMENT ON ENVIRONMENTAL PERFORMANCE”

Thanh Nguyet Phan, Kevin Baird, and Sophia Su ........................................................59

“THE SUPPLIER–CUSTOMER RELATIONSHIP AND COST STRUCTURE IN JAPAN” Ikuko Sasaki, Atsushi Shiiba, and Kunimaru Takahashi ..............................................60

“THE EFFECT OF CULTURAL INTEGRATION ON FINANCIAL PERFORMANCE POST-MERGER”

Rishma Vedd and Nataliya Yassinski ...........................................................................61

“PERCEPTIONS OF PRACTITIONERS, AUDITORS, AND ACADEMICS ON IFRS CONVERGENCE IN INDONESIA”

Sylvia Veronica Siregar, Chaerul Djusman Djakman, Aria Farahmita, and Agustin Setia Ningrum .........................................................................................................................62

“FINANCIAL STATEMENT ANALYSIS: EVIDENCE FROM CHINESE FIRMS”

Li Li Eng, T. Robert Yu, and Xi Tian ...........................................................................63 “IFRS CONVERGENCE IN MALAYSIA: THE EFFECT ON FINANCIAL STATEMENTS AND FINANCIAL RATIOS”

Karen Ling Nee Wong and Mahesh Joshi .....................................................................64

“HOW DO INDUSTRY SPECIALIST AUDITORS IMPROVE AUDIT QUALITY? EVIDENCE FROM NEW AUDIT HOUR BREAKDOWN DISCLOSURE FROM KOREA”

Soo Young Kwon, Han Yi, Yongsuk Yun, and Kyoungchul Jung ...............................65

“THE RELATIONSHIP BETWEEN EXTERNAL AND INTERNAL AUDIT COSTS” Kenichi Yazawa ............................................................................................................66

“THE DIMENSION OF INFORMATION SYSTEMS CONTROL JUDGMENTS”

Ray McNamara ..............................................................................................................67

“ANALYSIS OF REGULATIONS ON THE TERMINATION OF MANDATORY AUDIT FIRM ROTATION IN INDONESIA”

Fitriany Amarullah and Hafizh Adhitama .....................................................................68

“HOW DO FIRMS GROW THEIR REVENUE? A FRAMEWORK OF REVENUE MANAGEMENT PRACTICE”

Frederick Ng, Paul Rouse, and Julie Harrison ..............................................................69

“EXPENSE RECOGNITION AND STOCK PRICE CRASH RISK” Wonsun Paek .................................................................................................................70

“FINANCIAL DISTRESS PREDICTION USING CUTTING-EDGE STATISTICAL TECHNIQUES”

Khaled Halteh, Adrian Gepp, and Kuldeep Kumar .......................................................71

“MANAGERS’ ETHICAL JUDGMENT ON CSR OVERINVESTMENT: AN EGOCENTRIC PERSPECTIVE”

Poppy Dian Indira Kusuma and Mahfud Sholihin ........................................................72 “ESG RISK MANAGEMENT BY NORDIC INSTITUTIONAL INVESTORS”

Natalia Semenova and Lars G. Hassel ..........................................................................73

“THE IMPACT OF LEAHY-SMITH AMERICA INVENTS ACT ON INNOVATIVE FIRMS’ INFORMATION ENVIRONMENT”

Rui Huang, Louise Lu, and Hai Wu ..............................................................................74

“CAPITAL MARKET REACTION TO DISCLOSURE IN DISASTER: A CASE STUDY OF THE 2016 KUMAMOTO EARTHQUAKES”

Kenji Kawashima ..........................................................................................................75

“VALUE RELEVANCE OF ACCOUNTING INFORMATION: EMPIRICAL EVIDENCES FROM CHINA”

Xiao-Yan Li, David C. Yang, Hai-Feng Li, and Ying Guo ..........................................76

“DOES DIVIDEND PAYOUT OF JAPANESE FIRMS CHANGE AFTER THE INTRODUCTION OF COMPREHENSIVE INCOME?”

Akihiro Nedate ..............................................................................................................77

“WHAT AFFECTS FACTOR LOADING UNCERTAINTY AND EXPECTED RETURNS? THE ROLE OF ACCOUNTING QUALITY”

Chenkai Ni and Charles Shi ..........................................................................................78

“CORPORATE PERFORMANCE REPORTING WITHIN SUSTAINABILITY CONCEPTS”

Irena Hejduk and Anna Karmańska ..............................................................................79

“ACCOUNTANTS IN SMALL PUBLIC PRACTICE AND THEIR PROFESSIONAL IDENTITY. ORGANISATIONAL AND CLIENT CONFLICT?”

Francesco Maisano and Steven Dellaportas ..................................................................80

“MANAGEMENT FORECAST CONSISTENCY AND MARKET REACTION” Yuji Shirabe ...................................................................................................................81

“MULTIPLE MARKET ASSET TRADING AND DIFFERENTIAL INFORMATION QUALITY: JOINT ADR AND EQUITY SHARE MARKET RESPONSE TO REPORTED EARNINGS AND SEC DISCLOSURES”

Michael H. Senteney, Mohammad S. Bazaz, and David L. Senteney ..........................82 “ON NEO-COLONIALISM AND THE COLONIZATION OF ACCOUNTING RESEARCH”

Wm. Dennis Huber ........................................................................................................83

“CUSTOMER SATISFACTION, CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE, AND FIRM FINANCIAL PERFORMANCE: THE EVIDENCE FROM INDONESIA’S LISTED COMPANIES”

Dahlia Sari, Lindawati Gani, and Hilda Rossieta ..........................................................84

“IMPACT OF AGENT-BASED MODELLING ON MANAGEMENT ACCOUNTING RESEARCH”

Takahito Kondo and Takeshi Nishii ..............................................................................85

“DO GENDER AND ETHICAL CODE OF CONDUCT AFFECT BUDGETARY SLACK ETHICAL JUDGMENT? EVIDENCE FROM INDONESIA”

Jurica Lucyanda and Mahfud Sholihin ..........................................................................86 “THE ROLE OF COGNITIVE MORAL DEVELOPMENT (CMD) IN DECISION MAKING PROCESS: TAX COMPLIANCE ANALYSIS IN THE SYNERGISTIC AND ANTAGONISTIC CLIMATES”

Syaiful Iqbal and Mahfud Sholihin ...............................................................................87

“CLIENTS’ INVOLVEMENT IN OFFSHORE FINANCIAL CENTERS AND AUDIT PRICING”

Wenxia Ge, Jeong-Bon Kim, Tiemei Li, and William Sanjian Zhang .........................88 “A POSITIVE ASSOCIATION BETWEEN ACCRUALS QUALITY AND A CERTIFIED PUBLIC ACCOUNTANT IN THE AUDIT COMMITTEE: EVIDENCE FROM JAPAN”

Taketoshi Mihara ............................................................................................................89 “EFFECTS OF SELF-REGULATION ON AUDIT QUALITY: PUBLIC GOODS EXPERIMENTS”

Yoshitaka Hirose and Akira Goto .................................................................................90

“NETWORKING IN THE DIFFUSION OF INNOVATION IN PUBLIC SECTOR: THE ROLE OF PROFESSIONALS ASSOCIATION”

Thusitha Dissanayake and Steven Dellaportas ..............................................................91

“STUDY OF THE ASSOCIATION BETWEEN THE LEVEL OF DISCLOSURE AND PROPERTY CONCENTRATION IN BRAZILIAN LISTED COMPANIES THAT EXPLOIT BIOLOGICAL ASSETS”

Ilírio José Rech, Ducineli Régis Botelho, Júlia Peres Tortoli, and Paulo Alexandre da Silva Pires ...............................................................................................................................92

“DOES CONTROL SELF-ASSESSMENT IMPROVE FINANCIAL REPORTING QUALITY?”

Hiroshi Uemura .............................................................................................................93 “QUALIFICATIONS ON ACCOUNTING PROFESSION: GLOBALIZATION AND QUALIFICATION SYSTEM AND EDUCATION, AND INTERRELATIONSHIPS WITH RESPECTIVE NATIONAL QUALIFICATIONS”

Hiroko Inokuma and Masatoshi Sakaki ........................................................................94

“IFRS ADOPTION, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH IN SUB-SAHARAN AFRICA”

Godfred Matthew Yaw Owusu, Nur Ashiking Binti Mohd Saat, Susela Devi K. Suppiah, and Law Siong Hook .....................................................................................................95

“SOME THEORETICAL AND METHODOLOGICAL SUGGESTIONS FOR STUDIES EXAMINING GLOBAL CONVERGENCE OF FINANCIAL REPORTING”

A F M Mainul Ahsan and Chris Patel ...........................................................................96 “THE ASSOCIATION BETWEEN CORPORATE TAX AVOIDANCE AND AUDIT EFFORTS: EVIDENCE FROM KOREA”

Na Young An and SeongHo Bae ...................................................................................97

“TAX ANTI-AVOIDANCE THROUGH TRANSFER PRICING: THE CASE OF STARBUCKS U.K.”

Christian Plesner Rossing, Thomas Riise Johansen, and Thomas C. Pearson ..............98 “KEY FACTORS IN CORPORATE VALUATION DURING A RISK EVENT – TRANSFER PRICING TAXATION IN JAPAN”

Hiroshi Ohnuma and Yuzuru Sakurada .........................................................................99 “A COMPARISON OF INVESTORS’ AND ANALYSTS’ BIASES IN INTERPRETING BOOK-TAX DIFFERENCE: EVIDENCE FROM KOREAN STOCK MARKET”

Hong-Min Chun ..........................................................................................................100

“TREND OF EARNINGS QUALITY UNDER IFRS ERA: IN CASE OF KOREA” Hyuk Shawn, Minyoung Noh, and Jae-gyung Jung ....................................................101

“DISCRETION IN THE DEFERRED TAX VALUATION ALLOWANCE AND FIRMS’ DIVIDEND POLICY: EVIDENCE FROM JAPAN”

Takuma Kochiyama and Koreyoshi Seki ....................................................................102 “THE PORTFOLIO OF FOREIGN DIRECT INVESTMENT AND CORPORATE TAX AVOIDANCE OF JAPANESE MULTINATIONAL FIRMS”

Junjian Gu and Hu Dan Semba ...................................................................................103 “AUDIT COMMITTEE DIVERSITY AND AUDIT FEES: EVIDENCE FROM AN EMERGING ECONOMY”

Seema Miglani .............................................................................................................104 “THE NEW ACCOUNTING LANDMINES”

H. Davis Sherman and S. David Young ......................................................................105

“A RE-EXAMINATION OF LA PORTA ET AL. (1998): DOES LEGAL ENVIRONMENT REALLY MATTER?”

Takashi Obinata and Takashi Yaekura ........................................................................106

“HOW MULTIPLE ACCOUNTABILITIES AND MEANS-END DECOUPLING INFLUENCE ROLE AMBIGUITY AND JOB SATISFACTION: THE CASE OF HIGHER EDUCATION INSTITUTIONS”

Marius Metzl and Gerhard Speckbacher .....................................................................107 “THE SENSITIVITY OF THE RELATIONSHIP BETWEEN CEO COMPENSATION AND EARNINGS MANAGEMENT TO GLOBAL FINANCIAL CRISIS”

Muhammad Ali, Oheneba Assenso-Okofo, and Kamran Ahmed ...............................108 “EARNINGS MANAGEMENT USING CLASSIFICATION SHIFTING: EVIDENCE FROM JAPAN”

Ryosuke Fujitani ..........................................................................................................109 “HOW DO DIFFERENCES OF ATTRIBUTES BETWEEN CONSOLIDATED AND NONCONSOLIDATED EARNINGS AFFECT DIVIDEND BEHAVIOR IN JAPANESE FIRMS?”

Tetsuyuki Kagaya and Kenji Kometani ......................................................................110 “THE IMPACT OF ELIMINATING THE 20-F RECONCILIATION ON THE COST OF DEBT: AN EXPLORATORY STUDY”

Lucy Huajing Chen, Saiying Deng, Parveen P. Gupta, and Heibatollah Sami ...........111 “THE INFLUENCE OF ISLAMIC RELIGIOSITY ON AUDITORS’ PREFERENCE FOR PRINCIPLE-BASED OR RULE-BASED JUDGMENTS IN PAKISTAN”

Nazia Adeel, Nonna Martinov-Bennie, and Chris Patel .............................................112

“THE IFRS APPLICATION AND COMPARABILITY OF FINANCIAL STATEMENTS” Ichiro Mukai ................................................................................................................113

“THE PRINCIPAL INSTRUCTS INPUT OR THE AGENT SETS INPUT TARGETS: WHICH IS PREFERABLE IN ORGANIZATIONAL CONTROL?”

Toshiaki Wakabayashi ................................................................................................114

“THE INTERACTIVE EFFECTS OF EMPLOYEES’ HORIZON PREFERENCES AND THEIR SUPERIOR’S HORIZON PREFERENCES ON THEIR PROJECT HORIZON DECISIONS”

Lei Wang, Lei Dong, and Arsen Djatej .......................................................................115 “THE PROCESS COSTING IN THE FIFO PERSPECTIVE”

Hiroto Kataoka and Hirohisa Hirai .............................................................................116 “POLITICALLY CONNECTED DIRECTOR AND STOCK PRICE CRASH RISK”

Kyeongmin Jeon ..........................................................................................................117 “RELATIVE PERFORMANCE EVALUATION WITHIN BUSINESS GROUPS: EVIDENCE FROM KOREA”

Jinsuk Heo, Eung Gil Kim, and Jin Bae Kim ..............................................................118 “IMPLEMENTATION OF IFRS – CONSIDERATIONS OF NATIONAL STANDARD SETTERS”

Takashi Shimizu and Hiroko Inokuma ........................................................................119 “THE EFFECT OF CUSTOMER SATISFACTION ON FINANCIAL PERFORMANCE FOR EACH CUSTOMER SEGMENT: EMPIRICAL ANALYSIS OF A JAPANESE HOTEL COMPANY”

Kayo Mitani .................................................................................................................120 “HOW DO CHANGES IN LEASE ACCOUNTING STANDARDS AFFECT LEASE TRANSACTIONS?”

Yukari Takahashi and Tetsuyuki Kagaya ...................................................................121

“ACCOUNTING CONSERVATISM AND FINANCIAL CRISIS IN INDONESIA” Winanto Widayat, Utoyo Widayat, and Achmad Hizazi ............................................122

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THE IMPACT OF INTERNAL AUDIT FUNCTION QUALITY ON MANAGEMENT FORECAST PRECISION AND ACCURACY

Indranil Bardhan

University of Texas at Dallas U.S.A.

bardhan@utdallas.edu

Shu Lin California State University, Fresno

U.S.A. shulin@csufresno.edu

Lizhong Hao

California State University, Fresno U.S.A.

lhao@csufresno.edu

ABSTRACT Management forecasts represent voluntary corporate disclosures, intended to communicate information about firms’ future performance and reduce information asymmetry between management and shareholders. While prior studies have explored factors that are likely to influence the quality of management forecasts, our study focuses on the role of the internal audit function (IAF) as a critical determinant of effective corporate governance. Specifically, we investigate the relationship between the quality of the IAF and the accuracy and precision of management earnings forecasts. Our results indicate that firms with high quality IAFs are more likely to report management forecasts that are not only more accurate but are also more precise. Our study provides empirical evidence that IAF quality is a good indicator of the effectiveness of corporate governance, and is associated with the quality of financial disclosures, as measured in terms of the accuracy and precision of the management forecasts.

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ABNORMAL AUDIT EFFORTS AND COST OF EQUITY CAPITAL: EVIDENCE FROM KOREA

Seok Woo Jeong

Korea University Business School Korea

jeong@korea.ac.kr

Nam Chul Jung Korea University Business School

Korea primejnc@naver.com

Tony Kang

DeGroote School of Business McMaster University

Canada kangt@mcmaster.ca

Sang Ho Lee

Korea University Business School Korea

sangholy@gmail.com

Yong Keun Yoo* Korea University Business School

Korea yooyk@korea.ac.kr

ABSTRACT

Using the audit hours in Korean audit market, this study investigates the relationship between abnormal audit hours and cost of equity capital. In case that certain company’s abnormal audit hours are usually high, equity investors may perceive the company has auditor-client disagreements and demand more risk premium in return for uncertainty risk about financial reporting credibility. We also expect that this relationship is more prominent in company that reports aggressive accounting practice. This study finds that abnormal audit hours are positively related to the cost of equity capital only in company with aggressive financial reporting. Furthermore, using the audit hours by rank, this study also found that the effect of the relation is more pronounced in company which has large proportion of quality review audit hours and small proportion of expert audit hours. Results of this study contribute to the extant literature by showing expanded evidence on whether investors’ response to abnormal audits efforts as signal of financial reporting credibility.

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THE DYNAMICS OF INTERNAL AUDIT’S INVOLVEMENT IN NON-FINANCIAL ASSURANCE AND CONSULTING

Dominic Soh

Macquarie University Australia

dominic.soh@mq.edu.au

Nonna Martinov-Bennie Macquarie University

Australia nonna.martinov-bennie@mq.edu.au

ABSTRACT

This study aims to examine the evolving role and dynamics surrounding the involvement of internal audit functions in non-financial areas in light of growing international evidence that internal auditors are taking on greater assurance and consulting roles in these areas. Using semi-structured interviews with chief audit executives and internal audit service provider partners, the study specifically investigates strategies employed by internal auditors in embedding their involvement in new, non-financial areas that they have not been traditionally engaged in. The results support that internal audit’s involvement in non-financial areas is increasing. This is driven primarily by greater awareness and sensitivity of senior management and the board to broader non-financial risks faced by their organisations, as a result of the changing regulatory environment and stakeholder demands, and the need to manage these risks. Internal auditors draw on various strategies to embed their involvement in non-financial areas. These include mobilising discourses of regulatory mandates and reputational impact, expertise, support from internal stakeholders through consultation and transparency and the consulting aspect of internal audit’s role. These findings provide insights into strategies internal auditors can employ in enabling their involvement in new areas.

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INTEGRATED REPORTING: THE UNGREENING OF SUSTAINABILITY REPORTING?

Caroline Bridges

PhD Student University of Auckland

New Zealand c.bridges@auckland.ac.nz

Julie Harrison

Senior Lecturer University of Auckland

New Zealand j.harrison@auckland.ac.nz

ABSTRACT

Integrated Reporting (IR) has attracted global attention since its inception in 2010. The International Integrated Reporting Council (IIRC) has adapted and changed the stated outcomes as they have sought to gain global adoption of integrated reporting as the corporate reporting norm. In 2010 the remit of the IIRC as stated was to provide a framework to account for sustainability. However, in 2016 sustainability no longer appears to be the focus. IR is now focused on integrated thinking and value creation. Has this resulted in a move away from the sustainability ambitions of 2010 or has sustainability been captured in the wider definition of value creation? Using interview data with key decision makers from the IIRC and related documents publically available on the IIRC website, this paper traces the history of the IIRC to examine the development of IR and identify the drivers for its formation and how the objectives have changed and diluted the ‘green agenda’. This paper provides insight into the framework development and contributes to the emerging literature on IR. We conclude that the desire to become the norm for corporate reporting and institutionalise IR has resulted in a more business oriented, less environmentally focused framework.

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IMPROVED MODELS TO DETECT FRAUD IN FINANCIAL STATEMENTS

Adrian Gepp Bond Business School

Bond University Australia

adgepp@bond.edu.au

Kuldeep Kumar Bond Business School

Bond University Australia

kkumar@bond.edu.au

Sukanto Bhattacharya Deakin University

Australia sukanto.bhattacharya@deakin.edu.au

ABSTRACT

Studies have estimated the median loss from a single financial statement fraud scheme to be at least one million US dollars and the annual cost of financial statement fraud could exceed 1.2 trillion US dollars worldwide. Many business decisions rely on the accuracy of financial statements, but resources are not available to comprehensively investigate all of them. Detection of this type of fraud is difficult. Consequently, there is a need for better decision aids such as those developed in this research. Standard parametric regression-based techniques, particularly logistic regression, have been extensively studied for detecting financial statement fraud. More investigation is needed into non-parametric techniques such as decision trees and ensemble techniques that combine multiple models. Consequently, 34 different models have been compared over a range of ratios of the cost of failing to detect fraud relative to the cost of falsely alleging it, as these costs differ among stakeholders. Some models are the same as those used in prior studies, some are modifications of previously used models, and entirely new ones have also been developed. A large number of potential explanatory variables are also investigated in order to study which are the most useful to detection models. Empirical support has been found for both financial and non-financial explanatory variables, including new variables. New models developed in this research outperform extant ones on holdout data. Using these models, financial statements can be automatically classified as either fraudulent or legitimate, as well as be ranked according to their likelihood of being fraudulent. This information can then be used to improve early detection, which would mitigate fraud’s cost and help deter its future occurrence.

Page | 6

DISCLOSURE OVERLOAD? A PROFESSIONAL-USER PERSPECTIVE ON THE USEFULNESS OF GENERAL PURPOSE FINANCIAL STATEMENTS

Michael S. Drake

Assistant Professor Brigham Young University

U.S.A. mikedrake@byu.edu

Jeffrey Hales

Professor Georgia Institute of Technology

U.S.A. jeffrey.hales@scheller.gatech.edu

Lynn Rees Professor

Texas A&M University U.S.A.

rees@tamu.edu

ABSTRACT

We survey a broad group of professionals who use financial statements as part of their job to assess the extent to which they believe financial reports suffer from disclosure overload. In contrast to numerous claims in the business press and published reports made by regulators, auditors, and preparers, we find that the average professional financial statement user does not believe disclosure overload is a significant problem. On the contrary, many professional users would prefer that more information be disclosed in financial statements. In addition, we specifically address perceptions of the usefulness of the various financial statements and their footnotes across a variety of tasks. Our results help complement existing academic research on the informativeness of accounting information and provide new insights about overload and usefulness, which can be helpful in the development of richer theories about how financial reports are used by investors and creditors.

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MANAGEMENT INCENTIVES FOR PRIOR PERIOD ERROR CORRECTIONS UNDER IAS 8

Pamela Kent

The University of Adelaide Australia

pamela.kent@adelaide.edu.au

Richard Kent University of Queensland

Australia rkent@bond.edu.au

ABSTRACT

International Financial Reporting Standard IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8) requires prior period errors in the income statement to be amended in the first statement of changes in equity statement, following the detection of the error (International Accounting Standards Board, 2009). Hence, the impact of any prior period errors is shown through retained earnings rather than being included in the current period income statement. This study examines whether Australian companies use IAS 8 to engage in opportunistic reporting practices. Prior research has shown that certain variables predict the presence of earnings management and this study examines whether these variables have an association with error adjustments under IAS 8. The results show a positive association between IAS 8 error adjustments and the ratio of Chief Executive Officer (CEO) cash bonus to salary, poor performance and change of CEO. The results indicate that companies are using IAS 8 as a method of earnings management.

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CORPORATE GOVERNANCE AND STOCK PRICES OF JAPANESE FIRMS THAT ADOPT IFRS: INTERIM EVIDENCE

Shun Sato

Student Department of Technology Management for Innovation

University of Tokyo Japan

nurutaka@gmail.com

Fumiko Takeda* Associate Professor

Department of Technology Management for Innovation University of Tokyo

Japan takeda@tmi.t.u-tokyo.ac.jp

ABSTRACT

Japan is the largest economy to adopt IFRS following the EU. Although the traditional classification of Japan as a code-law country generates concern about whether IFRS adoption is economically beneficial, Japan has made extensive efforts to transform its economic and business environment in a way that makes it more Anglo-American in nature. This paper examines whether firms employing an American-type governance system have a different attitude toward IFRS and how they are evaluated by investors. Applying a probit model, we find that the probability of voluntary IFRS adoption is higher for firms that employ an American-type governance structure. Event studies also show that the stock prices respond positively to IFRS adoption.

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SFAS 157 AND THE PREDICTIVE VALUE OF U.S. BANK FAIR VALUES

Dimu Ehalaiye School of Accountancy

Massey University New Zealand

Mark Tippett

Business School University of Sydney and Business School

University of Newcastle Australia

Tony van Zijl

School of Accounting and Commercial Law Victoria University of Wellington

New Zealand

ABSTRACT This paper investigates whether the levels classified fair values based on SFAS 157 disclosed by US banks from the first quarter of 2008 have predictive value in relation to banks’ future financial performance - as measured by banks’ future operating cash flows and earnings over a three-quarter horizon period. Furthermore, we provide evidence on the influence of the 2008-2009 global financial crisis on the relationships between the levels classified bank fair values and future performance, thus showing whether market illiquidity affected the underlying relationships. We also test for the impact of bank characteristics - size, capital adequacy and growth prospects - on predictive ability. Our findings suggest that the levels classified fair values have predictive value (with the level 2 bank fair values having the most predictive value) for both the future cash flows and future earnings performance measures. We also find that the global financial crisis did not negatively influence the predictive ability of bank fair values. Finally, the predictive ability of the levels classified fair values is strongest for operating cash flows. The study supports the relevance of fair value, as indicated by predictive ability for performance, and thus makes an important contribution to the fair value accounting and accounting standard-setting literature.

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DIRECTORS FROM RELATED INDUSTRIES AND MANAGEMENT FORECAST PROPERTIES: AN INTERNATIONAL STUDY

Herita Akamah

University of Nebraska U.S.A.

Ervin L. Black*

University of Oklahoma U.S.A.

ervblack@ou.edu

Dipankar Ghosh University of Oklahoma

U.S.A.

ABSTRACT Managers cite information uncertainty as a partial explanation for their reluctance to voluntarily issue forecasts. Using an international sample of firms, we investigate whether directors with experience in a firm’s customer or supply industry (directors from related industries (DRI)) reduce this information gap, and in turn, improve management forecast properties. The issue is timely as world-wide heightened concern over a variety of risks is putting a premium on DRIs. We find that firms with DRIs are more likely to issue forecasts. Moreover, if firms do issue forecasts, those firms with DRIs issue more accurate forecasts when information uncertainty is high. Hence, DRIs improve management forecast accuracy for firms that stand to benefit the most from reduced information uncertainty. Additionally, the positive effect of DRIs on management forecast issuance varies predictably with cross-country variation in stakeholder demand for public disclosures. Further, influential DRIs have a more positive effect on management forecast issuance. Finally, we provide evidence that the stock market recognizes the crucial role that DRIs play in management forecasting: absolute value of cumulative announcement return around each management forecast is greater for firms with DRIs. Overall, our results suggest that DRIs play an important beneficial, but understudied, role in corporate disclosures.

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THE U.S. MARKET REACTION TO REGULATION OF SOCIAL MEDIA DISCLOSURES

Amanda Aw Yong

National University of Singapore, Singapore angelsfall92@gmail.com

Ching Tung Keung Associate Professor

National University of Singapore, Singapore bizkct@nus.edu.sg

Yuen Teen Mak

Associate Professor National University of Singapore, Singapore

bizmakyt@nus.edu.sg

ABSTRACT

In July 2012, Netflix CEO Reed Hastings posted on his personal Facebook page that Netflix has crossed “1 billion viewing hours for the first time,” without an accompanying 8-K filing. Just hours after the post, Netflix’s share price increased by 6.2%, and then by 13.4% the next trading day. This generated debate about whether the post violated Reg FD. This paper examines the U.S. stock market reaction to events leading up to the SEC’s decision to regulate (and allow) the use of social media for firm disclosures. The first event was when the market started becoming concerned whether Netflix violated Reg FD. The second event was when the SEC issued a Wells Notice each to both Netflix and Hastings, warning “civil injunctive action against Netflix and Mr. Hastings for violations of. The third event is when Joseph Grundfest, former SEC commissioner and Stanford Law School professor, released a paper explaining why SEC should drop its charges against Netflix. The fourth event was when the SEC released an investigation report, announcing that it would not take enforcement actions against Netflix and Hastings. By using an event methodology, we compare the market reaction for firms that use Twitter extensively with a set of control firms. Measures include size-adjusted cumulative abnormal returns (CARs), bid-ask spread, analyst forecast revision and dispersion as proxies for market reaction. Results show that firms actively using Twitter for financial disclosures suffered negative CARs after the final event when the SEC released its final guidance on social media disclosures. This suggests that the market remains nervous about social media disclosures, arguably because of litigation risks, as the Netflix saga raises possibility of Wells Notices against improper social media disclosures. Our paper contributes to the existing literature by first showing that social media are disclosure channels that interest investors, thus leading to significant market reactions around the final event date. Second, and more importantly, investors of large firms view the liberalization of social media disclosures as more harmful than beneficial. With the Netflix saga that resulted in Wells Notices being issued, investors are more nervous about the increased litigation risks that come with increased social media disclosures.

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ARE IPOS ‘OVERPRICED’? STRATEGIC INTERACTIONS BETWEEN THE ENTREPRENEUR AND THE UNDERWRITER BY LYING

Kazunori Miwa

Associate Professor Kobe University

Japan miwa@rieb.kobe-u.ac.jp

Satoshi Taguchi

Professor Doshisha University

Japan staguchi@mail.doshisha.ac.jp

Tatsushi Yamamoto

Professor Osaka University

Japan yamamoto_tatsushi@econ.osaka-u.ac.jp

ABSTRACT

Two major problems are well-known in IPO research as “IPO puzzles.” First, a first listing price is much higher than the offering price set by the underwriter, which is called “underpricing.” Second, in the long-run the share price becomes much lower than the offering price, which is called “long-run underperformance.” A vast body of research explains why these IPO puzzles coexist. Assuming that investors’ opinions diverge, we conclude that even the offering price is distorted through strategic interaction between the entrepreneur and the underwriter. Specifically, the offering price is already “overpriced.” Hence, the share price will drop substantially as information asymmetry between both the entrepreneur and the underwriter and investors is mitigated after the IPO, which delivers long-run underperformance. Our experiment supports these conclusions.

Page | 13

MANAGERIAL ABILITY AND ACCOUNTING CONSERVATISM

Sam Han Korea University Business School

Korea hanspost@korea.ac.kr

Eung Gil Kim

Korea University Business School Korea

egilkim@korea.ac.kr

Gun Lee Korea University Business School

Korea gunlee@korea.ac.kr

Tony Kang

McMaster University Canada

kangt@mcmaster.ca

ABSTRACT In this study, we investigate whether managerial ability is associated with accounting conservatism and how demand for accounting conservatism affects the association. Using a sample of firms for the period of 1988-2012, we find that firms with high ability managers are less likely to use conservative accounting. More importantly, we show that the association becomes weaker when firms are highly leveraged. Overall, our result suggests that high ability managers are more likely to resolve uncertainty in their performance by their operational ability so that they have less incentive to use conservative accounting. In addition, although managerial ability could be a substitute for conservative accounting to some extent, conservatism is still a useful mechanism to alleviate information asymmetry, especially when demand for conservatism is higher. The contribution of this study is two folds. First, while prior lite