Appropriation of accounting information system use under the new IFRS: Impacts on accounting process performance

2021 | Information & Management | Citations: 1

Authors: Nguyen, Trang; Chen, Jengchung Victor; Nguyen, Thu Phuong Ha

Abstract: The newly issued International Financial Reporting Standards (IFRS) have signifi ... Expand

Abstract: The newly issued International Financial Reporting Standards (IFRS) have significantly transformed the ac­ counting process and the accounting information system (AIS). Confronting the changes in information tech­ nologies (IT), using the AIS appropriately is crucial to derive accurate information from which to process business transactions and report information in compliance with the new IFRS. Built on adaptive structuration theory (AST), this study is aimed toward investigating how accounting regulatory changes influence AIS use, which consequently affects accounting process performance. Data are collected through a questionnaire survey of 250 accountants from 36 countries currently using the IFRS as their accounting standards. The results show that perceived system restrictiveness, IT professional support, and accountant’s self-efficacy significantly explain faithfulness of appropriation (FOA) whereas perceived effectiveness of controls on IT use does not. FOA in­ fluences exploitive and exploratory task adaptations, which subsequently predict accounting process perfor­ mance under the new IFRS. This study enriches the AST literature and contributes to both the accounting and IT domains. Our findings provide organizations with new insights into how to maintain the efficiency of accounting practice and business operations under the new IFRS. Collapse

Topics: accounting self efficacy information system use IT workforce Facebook

Methods: survey partial least squares regression parametric test ANOVA statistical hypothesis test

Theories: structuration theory adaptive structuration theory

Technology executives in the changing accounting information environment: Impact of IFRS adoption on CIO compensation

2018 | Information & Management | Citations: 8

Authors: Liu, Fang-Chun; Hsu, Hsiao-Tang; Yen, David C.

Abstract: Accounting regulatory changes that affect the information technology (IT) infras ... Expand

Abstract: Accounting regulatory changes that affect the information technology (IT) infrastructure of firms have prompted Chief Information Officers (CIOs) to take the lead in aligning IT changes with new reporting requirements. This study investigates the associations between the mandatory adoption of International Financial Reporting Standards (IFRS) and CIO compensation. We find a significant increase in CIO compensation in the post-IFRS period, which is higher in non-IT firms than in IT firms. Moreover, pay is at a premium for CIOs equipped with more educational background in business. We discuss the implications of our study and offer suggestions for future research. Collapse

Topics: Chief Information Officer accounting database system accounting standard research and development

Methods: propensity score method Capital IQ financial report regression analysis method mixed method

Theories: theory of economic fluctuations

An empirical investigation on the impact of XBRL adoption on information asymmetry: Evidence from Europe

2017 | Decision Support Systems | Citations: 2

Authors: Liu, Chunhui; Luo, Xin (Robert); Wang, Fu Lee

Abstract: Given the high cost of developing and implementing data standards such as eXtens ... Expand

Abstract: Given the high cost of developing and implementing data standards such as eXtensible Business Reporting Language (XBRL), it is critical to assess their influences before they are adopted on a large scale. The European Parliament has voted for the new Transparency Directive that calls for the mandatory preparation of annual business performance reports in a single electronic reporting from January 1, 2020 based on a cost–benefit analysis by European Securities and Markets Authority (ESMA), with due reference to current and future technological options such as XBRL. Regulators in many other jurisdictions such as Canadian Securities Administrators are also assessing the costs and benefits from XBRL adoption. This paper informs such analysis by examining whether the expected benefit of information asymmetry reduction is realized through XBRL adoption in a European context. XBRL adoption among European non-financial firms is found to significantly increase market liquidity and thus reduce information asymmetry. The association is stronger for larger firms that have sufficient resources and expertise to properly implement the technology. The empirical findings also suggest that the association is stronger for non-high-technology firms whose financial statements affected by XBRL are more reliant upon by investors. Based on these findings, XBRL evidences a viable option as an electronic reporting format with effective implementation for businesses. Collapse

Topics: electronic data interchange decision making accounting organizational value technological change

Methods: descriptive statistic design artifact regression analysis method Mann Whitney U test literature study

Theories: lemon market theory contingency theory resource based view of the firm

Do Companies Pay CIOs More After the Adoption of International Financial Accounting Standards?

2014 | International Conference on Information Systems | Citations: 0

Authors: Hsu, Hsiao-Tang; Ji, Amy; Liu, Fang-Chun

Abstract: This study investigates the association between regulatory reporting change and ... Expand

Abstract: This study investigates the association between regulatory reporting change and Chief Information Officer (CIO) pay. Mandatory reporting standards change such as International Financial Reporting Standards (IFRS) calls for the increased information systems demand in order to provide satisfactory reporting quality. Anecdote evidence suggests that CIOs, who are responsible for managing information technology (IT) resources, should involve more in the conversion project to make sure the IT capital is well structured for meeting the new reporting requirements. The results show a significant increase in CIO pay in the post adoption period. Such pay increase varies from industries which have different levels of IT investments. Specifically, compared to IT firms, non-IT firms increase more CIO pay in the post adoption period. The results of this study shed lights on the implications for the role of CIO affected regarding to the relevant technological changes in the context of regulatory reporting reform. Collapse

Topics: Chief Information Officer research and development accounting accounting information system operational information system

Methods: parametric test descriptive statistic Student's t-test archival research Compustat