Search results

1 – 3 of 3
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 8 June 2020

Erekle Pirveli

The purpose of this paper is to provide the first empirical assessment of the persistence and predictability of earnings within the Georgian private sector entities.

503

Abstract

Purpose

The purpose of this paper is to provide the first empirical assessment of the persistence and predictability of earnings within the Georgian private sector entities.

Design/methodology/approach

The sample comprises of all the Georgian private sector entities who, according to the new Law of Georgia on Accounting, Reporting and Auditing (2016), had to submit their audited financial statements by 1 October 2018. Financial data has been officially withdrawn from the Ministry of Finance of Georgia and the descriptive data has been obtained by the use of Link Klipper and ScrapeStorm tools through the official “Reportal” website. The final sample consists of 450 large Georgian private sector entities. The study uses a simple, one-year-lagged earnings auto-regression to detect the persistence and predictability within the next series of earnings. A weighted least square method has been used as a statistical procedure.

Findings

The results reveal that current earnings persist within the next year’s series of earnings at less than 25%, while the reliance on current year’s earnings enables us to predict the next year’s earnings only with a chance of 20%. Further analysis has witnessed that cash flows from operations persist at less than 40% and are able of predicting the next year’s cash flows at below 35%. Overall, the properties of earnings and cash flows within the private sector of Georgia are of relatively poor quality, with the latter demonstrating higher properties compared to earnings.

Practical implications

The general finding on a relatively low property of earnings raises potential investors and creditors’ awareness on the valuation-usefulness of provided financial information within the private sector of Georgia. The fact that earnings are significantly less persistent and predictable compared to cash flows from operations, hints on accruals’ problematic functioning. The results presented in this paper should be of interest to a local regulator (SARAS), charged with the responsibility of successfully running a currently ongoing accounting reform of Georgia.

Originality/value

This is the first study that examines the persistence and predictability of earnings and cash flows from operations among the private sector entities of Georgia.

Details

Journal of Financial Reporting and Accounting, vol. 18 no. 3
Type: Research Article
ISSN: 1985-2517

Keywords

Access Restricted. View access options
Article
Publication date: 15 August 2022

Erekle Pirveli

This study aims to examine the timing of corporate disclosure in the context of Georgia, an emerging market where a recent reform of corporate financial transparency mandated…

183

Abstract

Purpose

This study aims to examine the timing of corporate disclosure in the context of Georgia, an emerging market where a recent reform of corporate financial transparency mandated about 80,000 private sector entities to publicly disclose their annual financial statements.

Design/methodology/approach

The main analysis covers more than 4,000 large, medium, small and micro private sector entities, for which the data is obtained from the Ministry of Finance of Georgia. This paper builds an empirical model of logit/probit regression, with industry fixed and random effects to investigate the drivers of the corporate disclosure timing.

Findings

Findings suggest that the mean reporting time lag is 279 days after the fiscal year-end, that is nine days after the statutory deadline. Almost one-third (30%) of the entities miss the nine-month statutory deadline, while the timely filers almost unexceptionally file immediately before the deadline. Multivariate tests reveal that voluntarily filing entities completed the process significantly faster than those mandated to do so; audited financial statements take more time to be filed, whereas those with unqualified audit opinion or audited by large/international audit firms are filed faster than their counterparts. The author concludes that despite the overall high filing rates, the timing of corporate disclosure is not (yet) efficiently enforced in practice (but is progressing over time), whereas regulatory incentives prevail over market incentives among the timely filers.

Originality/value

To the best of the author’s knowledge, this is the first study that explores corporate disclosure timing incentives in the context of Georgia. This study extends prior literature on the timing of financial information from an emerging country’s private sector perspective, with juxtaposed market and regulatory incentives.

Details

Journal of Financial Reporting and Accounting, vol. 22 no. 5
Type: Research Article
ISSN: 1985-2517

Keywords

Access Restricted. View access options
Article
Publication date: 3 December 2024

Erekle Pirveli, Esther Ortiz-Martínez, Salvador Marín-Hernández and Paul Thompson

This study aims to examine how the characteristics of lobbyists – type, size and country of origin – affect the nature of the feedback submitted to the European Commission…

328

Abstract

Purpose

This study aims to examine how the characteristics of lobbyists – type, size and country of origin – affect the nature of the feedback submitted to the European Commission regarding the Corporate Sustainability Reporting Directive.

Design/methodology/approach

This research is grounded in an analysis of 143 public comment letters, encompassing the entire spectrum of feedback received. The authors begin with a content analysis of the directive’s 20 key items to categorize responses, construct a feedback index based on them and then use ordinary least squares, robust and ordered logit regressions.

Findings

This analysis reveals the expanding concept of “users” in sustainability reporting, with active lobbying from both business associations and non-governmental organizations (NGOs). While the directive is generally well received, concerns arise regarding its broad scope, third-party assurance, forward-looking information and the rushed timeline. Lobbyists’ characteristics play a significant role in shaping their feedback. NGOs show stronger support than business associations, with companies in between. Smaller lobbyists favor simplified disclosures, and notable French support suggests a potential “reversed lobbying” effect, possibly due to the French presidency’s role in shaping the European sustainability reporting framework.

Practical implications

This in-depth content analysis of feedback on the directive provides a comprehensive summary measure that serves as a powerful tool for standard-setters to develop sector-specific sustainability standards.

Social implications

As sustainability reporting gains traction and zero-emission targets grow more urgent, understanding the standard-setting process is increasingly crucial.

Originality/value

This research shifts the focus of lobbying from financial to sustainability reporting. The authors build on regulatory capture and public interest theories by incorporating networking theory and the phenomenon of reversed lobbying to uncover key variations.

Details

Sustainability Accounting, Management and Policy Journal, vol. 16 no. 2
Type: Research Article
ISSN: 2040-8021

Keywords

1 – 3 of 3
Per page
102050