Daniela Cristina dos Anjos Penela, Ana Isabel Morais and Amy M. Gregory
This study aims to take advantage of segment reporting to provide empirical evidence on the impacts of increasing the share of revenue generated from the timeshare segment in…
Abstract
Purpose
This study aims to take advantage of segment reporting to provide empirical evidence on the impacts of increasing the share of revenue generated from the timeshare segment in companies’ portfolios for firm value and profitability.
Design/methodology/approach
This paper examines data from five publicity traded hospitality companies that have a timeshare component and carries out different regression analysis using 69 observations ranging from 1998 to 2016.
Findings
The findings support the idea of an inverted U-shaped relationship between the degree of timeshare business (DOT) and firm value and profitability. However, for positive values of DOT, an increase of DOT consistently has a negative impact on firm value and accounting profitability.
Research limitations/implications
This study adds to previous findings through the addition of new variables and contemporary accounting practices. Though sufficient for the analyses conducted, the limited number of observations raises generalizability issues. Further research with larger data sets is advised.
Practical implications
This study implies that timeshare may continue to grow, but not as a segment in the lodging sector; rather as an industry mainly composed of timeshare-dedicated companies. As firms consider diversification or consolidation, this study may inform decisions related to potential firm value.
Originality/value
This study provides evidence to support previous literature related to spin-off activity in the lodging sector. Perhaps more importantly, this study adds value to research on firm value and profitability by extending traditional models and by developing a new “degree of business” variable using segment reporting.
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Ana Isabel Morais, Ana Fialho and Andreia Dionísio
The purpose of this paper is to provide empirical evidence regarding the classification of European countries based on accounting quality metrics. The authors investigate whether…
Abstract
Purpose
The purpose of this paper is to provide empirical evidence regarding the classification of European countries based on accounting quality metrics. The authors investigate whether the grouping of countries based on accounting quality levels differs from other classifications based on accounting practices or country-specific factors identified in previous studies.
Design/methodology/approach
The authors run panel data regressions for 2.078 European listed companies using value relevance and earnings smoothing metrics. The authors also apply cluster analysis to classify the countries.
Findings
The results suggest that the adoption of a common set of International Financial Reporting Standards (IFRS) did not lead to a similar level of accounting quality of financial information. The authors identified three clusters of countries that are not coincident with previous classifications.
Research limitations/implications
The results show that the adoption of different accounting practices allowed in IFRS does not necessarily influence accounting quality.
Practical implications
The results suggest that the way regulators decided to incorporate IFRS into national accounting systems is one issue that may be relevant in explaining the three clusters.
Originality/value
The paper provides empirical evidence that supports two theoretical assertions. The first is that a classification depends entirely on the characteristics used to represent the countries being classified. The second is that the adoption of a single set of accounting standards does not determine similar accounting practices and does not lead to similar levels of accounting quality.
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Ana Isabel Morais and Inês Pinto
In 2009, the International Accounting Standards Board started revising International Accounting Standard (IAS) 19 to improve the requirements for managing the annual expense of a…
Abstract
Purpose
In 2009, the International Accounting Standards Board started revising International Accounting Standard (IAS) 19 to improve the requirements for managing the annual expense of a pension plan. The revised standard became effective in 2013. The purpose of this paper is to investigate what effect this revision had on managerial discretion. The paper also examines the implications of the revision on the value relevance of accounting information.
Design/methodology/approach
The authors use a sample of 72 firms listed on the FTSE 100 that have defined benefit plans for the period between 2009 and 2015. The authors use a regression discontinuity design to analyse the effect from the revision of IAS 19 on the choice of managers regarding the expected rate of return-on-plan assets. The paper also investigates whether firms with higher pension sensitivity are more likely to manage earnings upward before the revision of IAS 19. Further, the paper studies the value relevance of earnings after the revision of the accounting standard.
Findings
Consistent with predictions, the results show that the adoption of the revised IAS 19 limits the use of the expected rate of return on assets to manage the annual expense of defined benefit plans. This finding shows a sharp increase in the value relevance of earnings.
Practical implications
This finding is useful for users and preparers of financial statements and regulatory bodies as it identifies not only the influence of a change in the accounting standard for earnings management but also provides evidence on the consequences of managers’ discretion.
Originality/value
This paper provides direct evidence on the relationship between regulation and financial reporting discretion. It also provides evidence to accounting standard setters that the revision of IAS 19 improves the value relevance of financial information, which gives additional justification to the changes introduced by regulators.
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Teresa Pereira Eugénio, Isabel Costa Lourenço and Ana Isabel Morais
This study aims to identify the legitimacy strategies employed by one of the largest Portuguese cement companies to defend and downplay its sustainability performance and…
Abstract
Purpose
This study aims to identify the legitimacy strategies employed by one of the largest Portuguese cement companies to defend and downplay its sustainability performance and activities related to two major controversies involving the company: co‐incineration and the location of the Outão plant.
Design/methodology/approach
A single case study methodology is employed for the empirical research. Sustainability reports were analysed in order to identify TimorL's sustainability disclosure practices, and semi‐structured interviews were conducted to complement the case analysis. This paper emphasises legitimacy theory and legitimacy repair strategies that were identified by Suchman.
Findings
Legitimacy strategies, including “don’t panic”; “create monitors”; “justify”; “disassociate” and “explain”, were identified in the actions TimorL took after the above‐mentioned controversies. The company initiated a series of actions to respond to the company's “crisis”. The conclusions of the study support the argument that sustainability strategies remain a powerful legitimacy tool.
Originality/value
The paper adds to the scarce research available on the sustainability disclosure and practices of companies by providing new empirical data. It contributes to a better understanding of how companies behave when they are faced with legitimacy gaps and how they act to restore their legitimacy.
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Teresa Eugénio, Isabel Costa Lourenço and Ana Isabel Morais
The last years have witnessed a growth in interest in social and environmental questions. Many companies have developed environmental management and auditing systems and altered…
Abstract
Purpose
The last years have witnessed a growth in interest in social and environmental questions. Many companies have developed environmental management and auditing systems and altered their social and environmental disclosure practices. These developments resulted in the growth of research focusing on the analysis of information disclosed by companies. The purpose of this study is to contribute a reflection on the papers that have been published on social and environmental accounting from 2000 to 2006.
Design/methodology/approach
A literature review of the papers examining social and environmental matters published in selected accounting journals allows the identification of the key content issues, methodologies and research questions which have been predominant in the social environmental accounting research (SEAR) area. It also enables one to pin‐point areas for future research.
Findings
The content was examined and classified in four groups: social and environmental accounting systems; social and environmental disclosures; regulation impact; and relations among environmental disclosure and environmental performance. For each group, the research method; data origins and type of data; industry and country were identified. Almost all the studies are based on content analysis and interviews. Data are collected not only from the financial statements but also from other types of information disclosed by companies. In many cases, industry activities are selected carefully and most of the studies used data from the UK, Australia, and the USA.
Originality/value
The paper provides a contribution to the development of the SEAR area, exploring different views. It also helps schools to identify areas for future research.
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The purpose of this paper is to review empirical research on the determinants of leasing.
Abstract
Purpose
The purpose of this paper is to review empirical research on the determinants of leasing.
Design/methodology/approach
The paper reviews previous literature that has focused on studying the determinants of leasing decisions. It also discusses the determinants of the lease‐buy decision and the determinants of the choice between finance leases and operating leases.
Findings
Previous empirical studies show that there is no consensus as to whether debt and leases are complements or substitutes. However, there are some factors that affect the choice between leases and debt, such as size, taxes, nature of assets, financial constraints and management compensation. Leases tend to be more prevalent in some industries (such as air transport, retailing and services and utilities) than in others, and companies tend to lease assets that are less specific, of general usage and more liquid. Previous studies also show that higher leverage companies tend to use leases rather than other forms of financing.
Research limitations/implications
The paper only addresses the determinants of leasing. Previous studies about leases address other areas such as the lease accounting standards and the economic consequences and valuation of leases, which are not discussed in this paper.
Originality/value
The paper presents an exhaustive review of previous literature on the determinants of leasing. Evidence from research on this topic is likely to be helpful in capital market investment decisions, accounting standard setting and decisions on corporate financial disclosure.
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Ana Isabel Moniz, Teresa Medeiros, Osvaldo Silva and José Mendes
Senior travelers are an attractive market segment and increasingly participate in an internet-mediated society. This chapter examines the profile of senior tourists who booked…
Abstract
Senior travelers are an attractive market segment and increasingly participate in an internet-mediated society. This chapter examines the profile of senior tourists who booked their trip to the Azores using online travel agencies. The purpose is to analyze their motivation factors based on the travel motivation scale for senior tourists, using 17 items related to the motivations for visiting the destination, and to ascertain whether there are different groups of senior tourists based on sociodemographic characteristics, travel motivations, and experiences performed. Using a structured questionnaire and a sample of senior tourists, three distinct clusters are obtained.
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Barbara de Lima Voss, David Bernard Carter and Bruno Meirelles Salotti
We present a critical literature review debating Brazilian research on social and environmental accounting (SEA). The aim of this study is to understand the role of politics in…
Abstract
We present a critical literature review debating Brazilian research on social and environmental accounting (SEA). The aim of this study is to understand the role of politics in the construction of hegemonies in SEA research in Brazil. In particular, we examine the role of hegemony in relation to the co-option of SEA literature and sustainability in the Brazilian context by the logic of development for economic growth in emerging economies. The methodological approach adopts a post-structural perspective that reflects Laclau and Mouffe’s discourse theory. The study employs a hermeneutical, rhetorical approach to understand and classify 352 Brazilian research articles on SEA. We employ Brown and Fraser’s (2006) categorizations of SEA literature to help in our analysis: the business case, the stakeholder–accountability approach, and the critical case. We argue that the business case is prominent in Brazilian studies. Second-stage analysis suggests that the major themes under discussion include measurement, consulting, and descriptive approach. We argue that these themes illustrate the degree of influence of the hegemonic politics relevant to emerging economics, as these themes predominantly concern economic growth and a capitalist context. This paper discusses trends and practices in the Brazilian literature on SEA and argues that the focus means that SEA avoids critical debates of the role of capitalist logics in an emerging economy concerning sustainability. We urge the Brazilian academy to understand the implications of its reifying agenda and engage, counter-hegemonically, in a social and political agenda beyond the hegemonic support of a particular set of capitalist interests.
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Ana Pinto de Moura, Luís Miguel Cunha, Ulisses Miranda Azeiteiro and Walter Leal Filho
Charles Arcodia <c.arcodia@griffith.edu.au> is Associate Professor in the Department of Tourism, Sport and Hotel Management, Griffith University, Australia. He has held leadership…
Abstract
Charles Arcodia <c.arcodia@griffith.edu.au> is Associate Professor in the Department of Tourism, Sport and Hotel Management, Griffith University, Australia. He has held leadership positions in a variety of educational and business service contexts. An experienced educator having taught and researched in the tertiary sector for over 15 years, he has broad research interests working primarily within the fields of event management, tourism education, and intangible heritage. He is on the editorial board of a number of journals and serves as the Editor of the International Journal of Event Management Research.