International Journal of Accounting & Finance Review https://www.cribfb.com/journal/index.php/ijafr International Journal of Accounting & Finance Review (IJAFR),Accounting & Finance Review,Accounting, Finance en-US info.ijafr@cribfb.com (Managing Editorial Board) info.ijafr@cribfb.com (Editorial Assistant) Thu, 25 Mar 2021 15:09:03 +0000 OJS 3.1.1.4 http://blogs.law.harvard.edu/tech/rss 60 LEGAL AUDIT QUALITY AND FRAUD RISK: THE CASE OF TUNISIAN LISTED COMPANIES https://www.cribfb.com/journal/index.php/ijafr/article/view/1039 <p style="text-align: justify;"><em>The aim of this study is to examine the impact of legal audit quality on the likelihood of accounting fraud, for a sample of 48 companies listed on the Tunisian stock market over the period between 2014 and 2018. Based on the logit panel regression, we have shown that the audit firm's membership in one of the Big networks and the rotation of external auditors are two major determinants in the reduction of cases of fraud in Tunisian companies. In addition, the results showed that joint audit deteriorates the quality of auditing and thus increases the risk of fraud. This study provides new insights in terms of legal audit and fraud risk in the Tunisian context based on the econometrics of panel data, which is a valuable method to measure the impact of several actions alone or simultaneously. It has allowed us to analyze the behaviors of companies by considering the effect of many proxies of legal audit quality.</em></p> <p><strong>JEL Classification Codes: </strong>G32, M42, C23.</p> Azhaar Lajmi, Wided Khiari, Oumaima Ouertani ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 https://www.cribfb.com/journal/index.php/ijafr/article/view/1039 Thu, 25 Mar 2021 14:46:19 +0000 A STUDY ON IMPACT OF BEHAVIOURAL FINANCE ON INVESTMENT DECISION OF SINGLE PARENTS IN SOUTH ASIAN COUNTRIES https://www.cribfb.com/journal/index.php/ijafr/article/view/1040 <p><em>The purpose of this study is to find out the possible impact of behavioural finance on the investment decision of a single parent. As being an earning/working single parent who usually does not have other possible sources in their family, the decision which they take must be a reliable one and cannot afford to get a second chance. In the study, </em><em>this study is also one of an effort to assess the impact of behavioural biases in the investment decision-making of a single parent. A questionnaire is designed and responses are collected from 203 respondents who prefer to invest where the level of risk is either low or moderate and are more concerned about losses in their investment than substantial gain. Also, most of the respondents were investing in order to meet some specific purpose, for their retirement plan as well as to educate their children. This study concludes by stating that investors’ risk-taking capacity is dependent on their level of income and the sources of income. Although every Individual is subject to some biases, they tend to think more rational way than an average investor in many ways as they know about their requirements and the investment they make.</em></p> <p><strong>JEL Classification Codes:</strong> G40, G41.</p> Kannadas Sendilvelu, Manita Deepak Shah ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 https://www.cribfb.com/journal/index.php/ijafr/article/view/1040 Thu, 25 Mar 2021 17:48:52 +0000 IMPACT OF CORPORATE GOVERNANCE FAILURE ON PUBLIC TRUST: AN EVIDENCE FROM INDIA https://www.cribfb.com/journal/index.php/ijafr/article/view/1059 <p><em>This research study explores the maligned role of Chanda Kochhar, the top-notch executive of ICICI Bank, a leading multinational and financial service provider. An alleged corruption case was filed against her under the Prevention of Money Laundering Act. The case was filed against her after a whistleblower alleged that the bank had given INR 32.50 billion to Videocon group in 2012, the majority of which was declared as Non- Performing Assets later by the bank. This research study focuses on misused the position for personal gains. It touches upon the board of directors of an organisation's fiduciary role and tries to outline whistleblowers’ importance in corporate governance. The study unravels the conflicts of interest, alleged corruption, lack of disclosures of related party transactions required by corporate governance principles, and quid-pro-quo. The study will deliberate the impact of such alleged corruption on the various stakeholders, especially shareholders. The study is exploratory and qualitative and based on publicly available information. Other corroborative evidence verifies the reliability of the information. This study will offer suggestions to improve the corporate governance principles to the regulators. </em></p> <p><strong>JEL Classification Codes: </strong>D73, D74, G21, G34.</p> Gagan Kukreja ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 https://www.cribfb.com/journal/index.php/ijafr/article/view/1059 Sun, 04 Apr 2021 09:22:29 +0000 A PROPOSED ARCHIVAL EMPIRICAL RESEARCH METHODOLOGY TO TEST RELIABITIY AND VALIDITY OF DISCOUNTED RESIDUAL INCOME MODEL https://www.cribfb.com/journal/index.php/ijafr/article/view/1062 <p><em>Kerlinger and Lee (2000) defines reliability as “the proportion of the ‘true’ variance to the total obtained variance of the data yielded by a measuring instrument” and content validity as “representativeness or sampling adequacy of the content—the substance, the matter, the topic of measuring instrument”. The goal of this research is to provide an empirical research method to quantify the reliability and validity of residual income model in the prediction of the value of equity (stock price), by proposing to compare all active U.S. firms from 1981 to 2005 traded in the NYSE and the AMEX (the time period and listed stocks are subject to change based upon the availability of data from different sources). </em></p> <p><strong>JEL Classification Codes</strong>: G10, G17, M41, Z10.</p> Min Shirley Liu ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 https://www.cribfb.com/journal/index.php/ijafr/article/view/1062 Tue, 06 Apr 2021 10:21:18 +0000 IMPACT OF INFORMATION TECHNOLOGY AND DIGITALIZATION ON BANKING STRATEGY PRE-COVID-19, CHALLENGES IN THE COVID ERA AND POST-COVID STAKES https://www.cribfb.com/journal/index.php/ijafr/article/view/1068 <p><em>The spread of information technology and the digitalization of financial services raise a range of theoretical questions as the structures of the banking industry undergo change. This change has intensified with the impact of the COVID-19 pandemic which is already being observed. The purpose of this study is therefore threefold: (1) to analyze the impact of IT and the digitalization of financial services on the strategy and functioning of the pre-COVID-19 banking sector; (2) to study the challenges banks are facing in the COVID era in managing the crisis, and (3) to highlight post-COVID stakes. &nbsp;This study shows, on the one hand, that the crisis confirms the need for banks to combine physical proximity and digital offer, and on the other hand, that digitalization could be the solution for banks to consistently mitigate risks. Through this digital transformation and their ability to re-invent themselves, the banks would guard against potential similar crises. By adopting a more digitized and open behavior, they would be immune to such crises because they would have appropriate strategic plans, as they would be better equipped to counter the threats and better prepared to transform them into opportunities.</em></p> <p><strong>JEL Classification Codes:</strong> B26, B41, G21, G32, O32.</p> Syrine Ben Romdhane ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 https://www.cribfb.com/journal/index.php/ijafr/article/view/1068 Fri, 09 Apr 2021 15:31:56 +0000