International Journal of Accounting & Finance Review International Journal of Accounting & Finance Review (IJAFR),Accounting & Finance Review,Accounting, Finance en-US (Associate Professor K. M. Anwarul Islam) (Help Desk) Thu, 21 Apr 2022 00:00:00 +0000 OJS 60 DISRUPTION OF CONTINUITY OR BUSINESS AS USUAL?: A SECTORAL ANALYSIS OF THE IMPACT OF COVID-19 ON EQUITY MARKETS IN BANGLADESH <p><em>The present paper analyses the impact of the COVID-19 breakout on the frontier stock market Dhaka Stock Exchange (DSE), exemplified by the case of Bangladesh. This study is based on secondary data from the official website of the Dhaka Stock Exchange. The sampling period extends across two sub-periods, referred to as the pre-lockdown period, extending from March 19, 2019, to March 25, 2020, and the re-opening period stretching from May 31, 2020, to March 11, 2021. Taken together, both sub-periods include a maximum of 442 data points. Our dataset consists of 106 listed companies from the Pharmaceutical, Engineering, and Insurance sectors in DSE. A classical Chow test was used to detect structural breaks. In a vast majority of cases, our results confirm the presence of structural breaks as an effect of Covid-19 by rejecting the null hypothesis. Our analysis of the statistical risk-return profiles of the companies under investigation indicates that the temporary interruption of stock trading in DSE was indeed a “game-changer”. Moreover, our findings support the view that pairwise return correlations tend to be larger during rapid market downturns than they are under “normal” or “positive” market conditions.</em></p> <p><strong>&nbsp;JEL Classification Codes: </strong>C32, C58, G10.</p> Mahfuza Khatun, Sikandar Siddiqui ##submission.copyrightStatement## Thu, 21 Apr 2022 09:58:18 +0000 FINTECH STARTUP: A BIBLIOMETRIC ANALYSIS AND NETWORK VISUALIZATION <p><em>This research aims to investigate the Fintech Start-up phenomenon and trends through collecting 124 manuscripts published between 2016 and 2021 in Scopus database, A bibliometric analysis was used with their two main divisions; performance analysis and mapping sciences to find out the most productive and influential studies, journals, authors, in addition, to examine the level of collaboration, various soft programs were adopted such as VosViewer for network visualization and Biblioshiny which is a web application based on R-studio and have required open-source codes that carried out by the authors for citation metrics, The findings have revealed that the most productive journal is Sustainability Switzerland but the most influential is Business Horizon, besides, Leong has the most publications while have the record citations and Muthukannan is the furthermost collaborated, Univ of Sydney is the most active University, However,&nbsp; result don't comply neither Lotka nor Bradford Law, U.S. has led the production and was reference in the field, new keywords have emerged approximatively to the field&nbsp; like business model, Ecosystem, Blockchain and Crowdfunding, the study recommends to explore the targeted field in specified time and data bases using another quantitative or qualitative tools with developed softwares</em>.</p> <p><strong>JEL Classification Codes: </strong>E51, M13, C55, C81.</p> Roucham Benziane, Sagou Roqiya, Mahmoudi Houcine ##submission.copyrightStatement## Fri, 13 May 2022 06:14:43 +0000 ANALYST FORECAST DISPERSION, INVESTOR SENTIMENT, AND THE CROSS-SECTION OF STOCK RETURNS <p><em>This paper explores the role investor sentiment plays in the relationship between analyst forecast dispersion and stock returns. With short sale constraints, stock prices are determined by the optimistic investors. There are more optimistic investors during the high sentiment periods when investors suffer more from psychological bias. This is the first paper to document that following the high sentiment periods, stocks with the most analyst forecast dispersion are overpriced, earning significantly negative returns, while those with the least analyst forecast dispersion are not overpriced as the degree of belief dispersion is low. However, following the low sentiment periods, both are not overpriced. A portfolio that longs the least dispersed stocks and shorts the most dispersed stocks yields significantly positive returns only following the high sentiment periods. My findings can potentially reconcile the puzzling risk effect and mispricing effect in the literature. The risk (mispricing) effect suggests a positive (negative) relation between analyst forecast dispersion and future stock returns. Presumably, the magnitude of the mispricing effect depends on the proportion of irrational investors and their bias, which is positively related to investor sentiment. During the high sentiment period, the mispricing effect takes over, and the overall effect is negative. During the low sentiment period, the percentage of irrational investors is mediate, and the mispricing effect and the risk effect counter each other, leading to insignificant relation.</em></p> <p><strong>JEL Classification Codes: </strong>G12, G40, G41.</p> Guoyu Lin ##submission.copyrightStatement## Sun, 05 Jun 2022 00:00:00 +0000 MEASUREMENT OPERATIONALIZATION AND WRITTEN CLARITY IN ACCOUNTING RESEARCH: AN INTEGRATED PEDAGOGICAL APPROACH FOR A DOCTORAL RESEARCH SEMINAR <p><em>The purpose of this paper is to provide an integrated pedagogical approach that professors can use with doctoral students to immerse students in a decision-making process that is critical to a successful research project: variable operationalization.&nbsp; Using articles from well-regarded journals to evaluate the operationalization choice of the “restatement” variable, the authors assemble a pedagogical approach that includes exercises professors can use with doctoral students.&nbsp; The setting chosen explores three methods used to operationalize the financial restatement variable in empirical archival accounting literature that students can explore: announcement date, first occurrence, and all occurrences.&nbsp; Students are first tasked with identifying the elements influencing measurement choice.&nbsp; Next, students assess whether findings reveal that statistically distinct results arise from each of the three measurement choices evaluated.&nbsp; Finally, students come to realize that an incorrect measurement choice may subject research findings to reductions in explanatory power, risk of type 1 and type 2 errors, and altered direction (sign) of coefficients.&nbsp; Achieving clarity in measurement choice and exposition are challenges inherent in accounting scholarship.&nbsp; This pedagogical approach helps nascent scholars work through these challenges using an actual empirical research setting, i.e., financial restatements. &nbsp;The insights gained can be applied by doctoral students in their own research efforts.</em></p> <p><strong>JEL Classification Codes: </strong>M4, C8, C0.</p> Jadallah Jadallah, Amirali Moeini Chaghervand, Michele D. Meckfessel, R. Drew Sellers ##submission.copyrightStatement## Thu, 07 Jul 2022 06:26:42 +0000 EQUITY HOLDERS' MARKET DISCIPLINE IN GCC COUNTRIES <p><em>This paper aims to study Equity holders'(EHs) discipline in three GCC countries, Bahrain, the UAE, and KSA for the period (2004-2014). We test bank risk monitoring in the 2008 crisis period by comparing the perceived risk proxied by BETA during the pre-and post-crisis episodes. We find significant differences in BETA values in Bahrain and the UAE. Then, we use the fixed effect model and the random effect model to regress BETA on CAMEL variables measuring bank risk. We study bank reaction by regression relevant CAMEL variables to EH monitoring on BETA of a lagged period. Our results show that in Bahrain, the coefficients of the variables Liquidity and Size are significant. Thus, EHs, in Bahrain, monitor their bank using financial information on Liquidity and Size. However, we find no responsiveness of the banks to this monitoring. Thus, there is no evidence of EHs' discipline in GCC countries. We contribute first, to fulfilling the gap in market discipline literature in Emerging countries, specifically, Bahrain, KSA, and the UAE. Second, we shed light on the market discipline of a special type of banking-IBs. Third, we innovate a new monitoring signal, BETA values assessed by EHs</em><em>.</em></p> <p><strong>JEL Classification Codes: </strong>G21, G12, M41.</p> Imene Guermazi ##submission.copyrightStatement## Mon, 25 Jul 2022 18:10:07 +0000 HORIZONTAL EQUITY, SELF-EFFICACY, AND BUDGETARY SLACK: COMPARING AMERICAN AND BRAZILIAN CULTURES <p><em>This study analyzed</em><em> the effect cross-cultural differences in perceived horizontal equity and self-efficacy have on the creation of budgetary slack.&nbsp; This research addressed the gap in the role of ethical ideology in business by empirically examining the influence of culture on an individual’s ethical ideology and their propensity to create budgetary slack.&nbsp; A total of 803 subjects included 413 individuals from America and 390 from Brazil.&nbsp;&nbsp; A series of analysis of variance testing identified statistical significance between horizontal equity and the creation of budgetary slack, as well as statistically significant differences between low/high years of experience and budgetary slack levels.&nbsp; Additional cross tabulations were included related to both horizontal equity as well as self-efficacy.&nbsp; The results highlight budgetary procedures that may impact a person’s perceptions of fairness in pay compared to colleagues or peers with similar positions in organizations.&nbsp; Findings suggest that employees with more years of professional experience could benefit from education on potential negative unintended consequences of creating slack in their budgetary decisions.&nbsp; Our findings may be used by managers to gain awareness of this significance and take necessary steps to create equitable pay policies and budgetary targets. Study results indicated no statistical difference in slack levels between Americans and Brazilians.</em></p> <p><strong>JEL Classification Codes: </strong>F39, G31, G41, M10, M49.</p> Shawn L. Robey, Mark A. McKnight, Reshowrn B. Thomas, Amy L. Mings ##submission.copyrightStatement## Sat, 30 Jul 2022 14:01:46 +0000 THE STIMULUS OF MICROFINANCE INSTITUTIONS FINANCIAL SELF RELIANCE IN BANGLADESH: A PANEL DATA ANALYSIS <p style="text-align: justify;"><em>Microfinance is the concession of providing comprehensive financial services to unbaked rural people. It has become an empirically proven tool to fight against rural poverty in developing countries like Bangladesh. The performance of MFIs in the improvement procedure of an economy is impressive. In this study, researchers purposively select sixty (60) microfinance institutions as a sample and incorporate five years of panel data from 2015 to 2019. Researchers use return on assets (ROA) as a proxy of financial self-reliance, whereas size, experience, managerial efficiency, the breath of outreach, and depth of outreach are explanatory variables. For analyzing data, researchers employ Stata 12 software, and ordinary least square and fixed effect models are also used for assessing the stimulus of MFIs' financial self-reliance. The study revealed that size, experience, managerial efficiency, the breath of outreach &amp; depth of outreach are explained by 73.75% variation of the dependent variable, i.e., financial self-reliance of MFIs in Bangladesh, which is statistically significant at a 1% level. Researchers outlined that size, experience, managerial efficiency, breadth of outreach, and depth of outreach are this study's statistically substantial stimulus for sample MFIs. </em></p> <p>JEL Classification Codes:&nbsp;G21, C23.</p> Afzal Ahmad ##submission.copyrightStatement## Sat, 13 Aug 2022 09:36:53 +0000