Ana Isabel Lopes and Mariana Lopes
The purpose of this paper is to investigate how the adoption of IFRS 10 and IFRS 11 affected consolidated financial statements. Specifically, the paper explores whether entities…
Abstract
Purpose
The purpose of this paper is to investigate how the adoption of IFRS 10 and IFRS 11 affected consolidated financial statements. Specifically, the paper explores whether entities adopted mandatorily or voluntarily both IFRS, whether expressly declared effects, whether considered those effects as material and whether those effects had impacts on selected items of financial statements and on selected financial ratios.
Design/methodology/approach
The research is an exploratory study using public entities from Germany, France and the UK. The majority of the data is manually collected from financial statements.
Findings
The results suggest that the adoption of the new IFRS 10 affected the composition of a large number of entity groups but that their financial information and economic-financial indicators do not present material changes. There is also evidence of a large and material impact on the changes in the classification and accounting for interests in arrangements under joint control through the new IFRS 11. The evidence thus suggests unequal effects of the adoption of IFRS 10 and IFRS 11 on the proportion of entities declaring materiality of effects, on the quantitative effects on selected items of financial statements, and on financial ratios. A comparison between the pre-adoption and post-adoption periods reveals that the majority of the effects are driven by the adoption of IFRS 11.
Originality/value
As far as is known this exploratory paper is the first presenting the effectiveness of adopting the most important standards under the “consolidation package” and opens an avenue for future research by academics, for future post-implementation reviews by IASB, and for analysis of peer reviews between accounting practitioners.
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Marcelo Albuquerque Oliveira and Isabel Lopes
The purpose of this paper is to develop a new maturity model to identify the current state of maintenance area of organizations and drives actions to increase efficiency and…
Abstract
Purpose
The purpose of this paper is to develop a new maturity model to identify the current state of maintenance area of organizations and drives actions to increase efficiency and effectiveness toward the concept known as world-class.
Design/methodology/approach
The model was developed based on an extensive literature review on maintenance management and maturity assessment, which allowed identifying the relevant factors in maintenance management and the world-class behaviors for each factor. The progressive maturity levels for each of the identified ten factors form the model. To test its effectiveness, it was applied to the maintenance area of three companies.
Findings
The model application showed that, in addition to being a self-assessment tool, it provides knowledge, to those who use it, on behaviors or practices that enable world-class results. For each factor, potential gaps and the desired state were defined focusing on behaviors rather than on indicators values or adopted methodologies, which facilitates the identification of improvement actions that lead to better performance.
Research limitations/implications
Through its use, maturity levels can be identified for all considered maintenance management factors, however, the overall maturity of the maintenance area is not determined. Although this overall evaluation can be done assigning a weight to each factor, it was not considered an added value for the set purpose.
Originality/value
The proposed maturity model contributes to the understanding of the maintenance management process and how to stand out nowadays in an area that has an increasingly important impact on productivity and quality.
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Ana Isabel Lopes and Laura Reis
This paper aims to examine pricing differences regarding contingencies presented in statements of financial position or notes, which are considered an area for creative accounting.
Abstract
Purpose
This paper aims to examine pricing differences regarding contingencies presented in statements of financial position or notes, which are considered an area for creative accounting.
Design/methodology/approach
The authors have chosen two countries with different cultural environments to test the exploratory study. The sample includes companies using the International Accounting Standard (IAS) 37, which requires recognition of provisions while contingent liabilities are only disclosed, implying different impacts from underlying judgement related with contingencies. The authors apply a regression model based on the Ohlson equity-valuation framework.
Findings
The most important conclusion is that market participants in both countries follow different patterns when incorporating information about provisions and contingent liabilities. More precisely, the results suggest that provisions are value-relevant, but incrementally less negative in Portugal. Contingent liabilities seem to have no value relevance. However, an exception exists for Portuguese companies having a risk committee board, in which case a significant market valuation of contingent liabilities is found and discounted in share prices. The existence of a risk committee corroborates the value relevance of this board, which is positively valued by market participants in both national cultures.
Practical implications
The findings may make a contribution to the IASB research project on the IAS 37 and possible amendments to it (suspended until the revisions to the conceptual framework are finalized) and to the IASB prioritization of communication effectiveness of financial statements to all users.
Originality/value
Value relevance of contingencies differentiating countries from two different national cultures and firms with a risk committee on the board of directors.
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Ana Isabel Lopes and Daniela Penela
The purpose of this paper is to provide the first assessment of the integrated reporting (IR) stream using a broad sample of publications separated into research scopes…
Abstract
Purpose
The purpose of this paper is to provide the first assessment of the integrated reporting (IR) stream using a broad sample of publications separated into research scopes (accounting and non-core accounting journals) and using a longitudinal perspective. This study proposes to identify its main contributors, evidencing both individual and collaborative work.
Design/methodology/approach
Bibliometric tools supported by a milestone approach to IR history were used to address the first two research questions on the growth of this stream per scope. Density maps on keyword co-occurrence provided insights into the third question aimed at assessing differences in the scopes’ research topics. The number of publications, citation-based metrics and network analysis based on co-authorship allowed us to answer the last question regarding the top contributors.
Findings
The results endorse the acknowledged interest in this stream, exposing its incredible growth, which already amounts to over 1,000 different scholars, 200 distinguished journals and 7,600 citations across 540 peer-reviewed publications. With the accounting scope leading on citation frequency and the non-core accounting having more publications, an almost picture-perfect circle in a pooled density map supports the field’s advocated interdisciplinarity with its distinctive contributions. Finally, the cluster analysis revealed that 140 publications belong exclusively to 10 research clusters that contribute to more than half of the total citation count.
Originality/value
This rich analysis combines visualizing techniques with in-depth bibliometrics to provide the first far-reaching collation of publications on IR to offer a complementary view on this dynamic interdisciplinary stream.
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Ana Isabel Lopes, Edward C. Malthouse, Nathalie Dens and Patrick De Pelsmacker
Engaging in webcare, i.e. responding to online reviews, can positively affect consumer attitudes, intentions and behavior. Research is often scarce or inconsistent regarding the…
Abstract
Purpose
Engaging in webcare, i.e. responding to online reviews, can positively affect consumer attitudes, intentions and behavior. Research is often scarce or inconsistent regarding the effects of specific webcare strategies on business performance. Therefore, this study tests whether and how several webcare strategies affect hotel bookings.
Design/methodology/approach
We apply machine learning classifiers to secondary data (webcare messages) to classify webcare variables to be included in a regression analysis looking at the effect of these strategies on hotel bookings while controlling for possible confounds such as seasonality and hotel-specific effects.
Findings
The strategies that have a positive effect on bookings are directing reviewers to a private channel, being defensive, offering compensation and having managers sign the response. Webcare strategies to be avoided are apologies, merely asking for more information, inviting customers for another visit and adding informal non-verbal cues. Strategies that do not appear to affect future bookings are expressing gratitude, personalizing and having staff members (rather than managers) sign webcare.
Practical implications
These findings help managers optimize their webcare strategy for better business results and develop automated webcare.
Originality/value
We look into several commonly used and studied webcare strategies that affect actual business outcomes, being that most previous research studies are experimental or look into a very limited set of strategies.
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Humberto Nuno Teixeira and Isabel Silva Lopes
This paper aims to propose a methodology to assist manufacturing companies in the implementation of condition-based maintenance (CBM) to their equipment. The developed methodology…
Abstract
Purpose
This paper aims to propose a methodology to assist manufacturing companies in the implementation of condition-based maintenance (CBM) to their equipment. The developed methodology intends to consider the use of sensors already installed on the equipment and, when required, to support the selection of sensors available on the market. Since CBM using sensors is not always feasible, the information gathered for the feasibility study of CBM implementation is also used to assign other maintenance strategies.
Design/methodology/approach
Based on the literature review, requirements and specifications were established for endowing the methodology with relevant and distinctive characteristics. The structure of the methodology and the associated steps were defined based on this information. Then, the methodology was validated and refined using a case study.
Findings
In the case study company, following the methodology and the respective steps, appropriate maintenance strategies were assigned to a selected manufacturing machine, considering information related to the failure modes with the most significant impact, and CBM was applied to a selected component for which the benefit outweighs the costs involved, using data acquired by sensors subsequently installed on the analyzed machine.
Practical implications
Due to its comprehensiveness, this methodology can contribute to make CBM implementation accessible to a high number of companies and encourage the application of a wide variety of monitoring techniques.
Originality/value
This new methodology can be easily integrated into a computerized maintenance management system and has the advantage of facilitating the collection, organization and standardization of technical knowledge required to support CBM implementation and define the most appropriate maintenance strategy systematically and automatically. It guides the prioritization of equipment and failure modes, and the decision-making regarding the selection of sensors and the allocation of maintenance strategies with the aim of reducing costs.
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Ana Isabel Lopes and Ana Margarida Coelho
The purpose of this paper is twofold: to provide evidence on geographic and firm-level characteristics within organizations using integrated reporting (<IR>) methodology to…
Abstract
Purpose
The purpose of this paper is twofold: to provide evidence on geographic and firm-level characteristics within organizations using integrated reporting (<IR>) methodology to communicate their business model to stakeholders; and to shed light on the contend of integrated reports of organizations that have been recognized as leading practice by a reputable award process or through benchmarking.
Design/methodology/approach
Secondary analysis of data (descriptive and inferential statistics) is used for a sample of 224 organizations (79 classified as <IR> Reference Reporters and 145 as <IR> Regular Reporters) across 26 countries (2011 to mid-2015). Content analysis is used for <IR> Reference Reporters.
Findings
Evidence for the first objective suggests that compared with <IR> Regular Reporters, the majority of the <IR> Reference Reporters are from Europe, are larger, have a higher market value, are more profitable and are less leveraged. Evidence for the second objective reveals that the guiding principles, fundamental concepts and content elements of the most recent integrated report published by each <IR> Reference Reporter (leading practice) seem less than expected.
Research limitations/implications
<IR> Examples Database does not cover all of the organizations reporting according to the <IR> framework. Content analysis can be biased by authors’ interpretations.
Practical implications
Potential benefit both to researchers and to those involved in the reporting of financial and non-financial information using the <IR> tool.
Originality/value
The originality of the paper is as follows: it contributes to the international debate on the evolution from sustainability to <IR>, provides evidence on geographies and firm-level characteristics of organizations using <IR> to better communicate and provides the most prominent information disclosed by Reference Reporters.
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Ana Isabel Lopes, Nathalie Dens, Patrick De Pelsmacker and Freya De Keyzer
This study aims to assess the relative importance of the argument strength, argument sidedness, writing quality, number of arguments, rated review usefulness, summary review…
Abstract
Purpose
This study aims to assess the relative importance of the argument strength, argument sidedness, writing quality, number of arguments, rated review usefulness, summary review rating and number of reviews in determining the perceived usefulness and credibility of an online review. Additionally, the authors use insights from the elaboration likelihood model (ELM) to explore the effect of consumers' product category involvement on the cues' relative importance.
Design/methodology/approach
A conjoint analysis (N = 287) is used to study the relative importance of the seven previously mentioned attributes. A balanced orthogonal design generated eight cards that correspond to individual reviews. Respondents scored all eight cards in a random order for perceived usefulness and credibility.
Findings
Overall, argument strength is the most important cue, while summary review rating and the number of reviews are the least important for perceived review usefulness and credibility. The number of arguments is more important for people who are more highly involved with the product, while writing quality and rated review usefulness are relatively more important for the low-involvement group.
Originality/value
This study provides a comprehensive test of how consumers perceive online reviews, as it the first to the authors’ knowledge to simultaneously investigate a large set of cues using conjoint analysis. This method allows for the implicit valuation (utility) of the individual cues, revealing the cues' relative importance, in a setting that comes close to a real-life context. Besides, insights of the ELM are used to understand how the relative importance of cues differs depending on the level of review readers' product category involvement.
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Isabel Silva Lopes, Sérgio Dinis Sousa and Eusébio Nunes
The purpose of this paper is to present a methodology to represent the uncertainty generated in performance measures (PMs) during the operational step or “use step” of the…
Abstract
Purpose
The purpose of this paper is to present a methodology to represent the uncertainty generated in performance measures (PMs) during the operational step or “use step” of the performance measurement process (PMP). The different steps of the methodology are described and exemplified through an application example.
Design/methodology/approach
An index that reflects the level of uncertainty originated by the factors and the strength of their inter-relationships is developed through the use of graph theory. A graph is developed considering all sources or factors of uncertainty that may be present in this process. Based on the graph, the methodology includes the use of a matrix and the determination of the associated permanent function which is used for determining the uncertainty index.
Findings
During the development of the methodology, it was found that the use of a scale that includes zero for assigning values of the elements of the matrix is not appropriate when using graph theory and permanent function calculation, since in this case the permanent function is insensible to changes in some matrix elements.
Originality/value
This paper identifies all the sources that can affect the quality of performance measurement values during the operational step of the PMP and proposes a method to characterize the strength of this uncertainty. Beyond alerting decision makers to the level of uncertainty associated with a PM, it also allows defining appropriate actions to improve PMs’ quality.
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Humberto Nuno Teixeira, Isabel Lopes and Sérgio Sousa
The purpose of this paper is to propose a new methodology to be used by small and medium enterprises to characterize their performance in quality, highlighting weaknesses and…
Abstract
Purpose
The purpose of this paper is to propose a new methodology to be used by small and medium enterprises to characterize their performance in quality, highlighting weaknesses and areas for improvement. The methodology aims to identify the main causes of quality problems and help to prioritize improvement initiatives. This is a methodology that intends to be easy to implement by companies with low maturity level in quality.
Design/methodology/approach
Based on the literature review a methodology for diagnosing and prioritizing quality problems is proposed. Then two longitudinal case studies are performed to refine and validate the proposed methodology. The methodology is organized in six different steps which include gathering information about predetermined processes and sub-processes of quality management, defined based on Juran’s trilogy, and about predetermined results categories.
Findings
The application of the methodology was successful in two case studies and a report was produced on the quality state of each industry, including a prioritization of the causes of poor performance.
Research limitations/implications
The methodology may have to be adapted to better suit the needs of companies from different sectors, either by reviewing the processes, by integrating new tools or refining the existing ones.
Practical implications
This paper presents a new methodology for identifying and prioritizing quality problems.
Originality/value
Due to its simplicity and comprehensiveness, it is believed that the developed methodology can be applied periodically by companies as self-diagnostic and prioritization tool, aimed at continuous improvement.