Francisca Pardo

This study examines the impact of climate change on agricultural firms, focusing on physical risks, both chronic (e.g., temperature and precipitation) and acute (e.g., droughts and floods). We conduct a panel data analysis of 19,929 companies in 69 countries across five continents from 2013 to 2021. We evaluate firms' vulnerability based on size and geographical location across various climate zones. The study highlights the rising costs that climate risks impose on smaller companies, compromising their operations and profitability. Contrary to previous studies, our findings suggest that companies in continental and temperate climates are the most affected. This challenges the existing literature and demonstrates that the relationship between temperature and agricultural performance is more complex than previously thought. As climate variability increases, it is critical that policymakers and companies adopt tailored strategies to mitigate these risks and enhance resilience, especially for the most vulnerable companies.

Since 2005, International Financial Reporting Standards (IFRS) have been widely used on a mandatory basis worldwide, but some countries are relevant exceptions to this policy. Based on the institutional isomorphism framework, this study examines the reasons why listed companies voluntarily adopt IFRS in a very specific environment: Japan. Using financial and non-financial data, we conduct a comprehensive investigation of the determinants of IFRS adoption. We use a multi-period logit model that takes into account all annual decisions made during the period 2013-2018. We confirm that both coercive and normative isomorphism associated with some legislative changes, together with mimetic isomorphism embedded in Japanese culture, lead firms to adopt IFRS rather than Japanese General Accepted Accounting Principles (J-GAAP). These findings suggest that the legitimacy of IFRS makes this set of standards a more appropriate reporting system to deal with the uncertainty associated with the country's openness to the outside world. Desde 2005, las Normas Internacionales de Información Financiera (NIIF) se utilizan con carácter obligatorio en gran parte del mundo, pero algunos países constituyen excepciones relevantes a esta política. Basándose en el marco del isomorfismo institucional, este estudio investiga las razones que explican por qué las empresas que cotizan en bolsa adoptan voluntariamente las NIIF en un entorno muy particular: Japón. Utilizando datos financieros y no financieros, llevamos a cabo una investigación exhaustiva de los factores determinantes de los adoptantes. Empleamos un modelo logit multiperiodo que considera todas las decisiones anuales tomadas durante el periodo 2013-2018. Confirmamos que el isomorfismo coercitivo, así como el normativo, asociado con algunos cambios legislativos, junto con el isomorfismo mimético, arraigado en la cultura japonesa, hacen que las empresas adopten las NIIF en lugar de los Principios de Contabilidad Generalmente Aceptados en Japón (J-GAAP). Estos resultados sugieren que la legitimidad de las NIIF hace de este conjunto de normas un sistema de información más adecuado para hacer frente a la incertidumbre relacionada con la apertura del país al exterior.

Goodwill recognized in a business combination is one of the most controversial issues in financial reporting, and is subject to a vast amount of disclosure in the financial statements. Based on the impression management framework, this paper investigates the managerial determinants of compliance with the disclosure requirements on the goodwill impairment test. The authors construct a disclosure index and hand-collect the information disclosed in the notes to the financial statements. The authors perform univariate and multivariate analyses, estimating panel data models in Spanish IBEX 35 firms, in 2008–2017. Compliance with the impairment test information requirements is used as an impression management strategy to conceal opportunistic behavior related to non-impairment and signal positive values related to growth opportunities and low leverage. The results are based on a single country, characterized by low enforcement and although that helps to consider the role of impression management under a compulsory reporting system, it also requires some caution in their generalization. The results might be useful for advancing the current International Accounting Standards Board (IASB) project, but also for other stakeholders since understanding firms' behavior facilitates making decisions. They might also help managers to reconsider their disclosure strategies towards third parties. The results may be useful for society, since they show a likely consequence of managerial opportunistic behavior. They could also assist regulators and enforcers to identify firms with incentives for non-compliance. This study provides a theoretical and conceptual contribution to explain how firms use disclosure as a managerial strategy in a rather different context to the one used in previous research since it focuses on audited and regulated corporate reports. It is based on the impression management as the vehicle to strategically manipulate users' insights and decisions.

Since 2010 Japanese listed firms can voluntarily use international financial reporting standards for their consolidated financial statements. Using financial and non-financial data, we carry out a comprehensive research into the adopters’ determinants. We employ a multi-period logit model that considers every annual decision made along the period 2010-2019. We find that the having outside networks through subsidiaries and a strong internal corporate governance system are key factors. We also confirm a contagion effect. Finally, our results suggest that goodwill is also relevant, since only Japanese accounting standards require annual amortization.

The capitalization of operating leases: Analysis of the impact on the IBEX 35 companies

The new IASB and FASB models for leases aim to improve the quality of financial reporting. To this end, both standard setters impose the recognition of assets and liabilities for operating leases. Meanwhile, preparers have been strongly lobbying against these changes, as in their view the new treatment will lead to negative economic consequences. We undertake a value‐relevance study to examine whether as‐if capitalised operating leases are priced by market users in a relatively unexplored setting. We consider Spanish listed firms, and employ hand‐collected data on operating leases disclosed in the notes to the financial statements to constructively capitalise the assets and liabilities. Our analysis suggests that investors in code‐law countries with less developed markets and low enforcement quality do not behave any differently to those in common‐law countries that have more developed markets and stricter enforcement policies. Investors equally value recognised debts and operating lease liabilities resulting from information in the notes in retail sectors. In our view, these results could provide some comfort to managers in the most affected industries, as they suggest the change will not have a major impact on the stock exchange.

This article explores the reasons why firms engage in operating leases and examines the potential impact of a change in the related accounting rules. We focus on the accounting advantage of off-balance financing, which does not affect the typical accounting-based covenants especially important in bank-oriented countries. However, we also consider other economically based arguments. Using manually collected operating lease data for Spanish listed firms, we use the constructive capitalization method to measure as-if liabilities. The results confirm that not only size and industry affect the decision but that firms closer to breaching their covenants are also more inclined to choose operating leases. Consequently, it is argued that such firms will be more affected by the accounting change; indeed, the inclusion of liabilities in the balance sheet might tighten financial covenants in loan agreements as evidenced in the paper. Not surprisingly, firms are strongly opposed to the accounting change.

Este trabajo investiga la relevancia valorativa del resultado global frente al resultado tradicional, a fin de analizar la conveniencia de dar mayor o menor transparencia a los componentes dirty surplus. A tal efecto se utilizan modelos de precios y de rentabilidades. La muestra incluye 11.793 observaciones de empresas que cotizan en Alemania, Francia, Holanda y Reino Unido en el periodo 1993–2002. Los resultados proporcionan evidencia sobre la relevancia valorativa del resultado, tanto neto como global, asimismo confirman la utilidad de los ajustes agregados sobre el resultado neto. Respecto al papel individual de los ajustes, no hay una pauta de comportamiento común, pero en Reino Unido se confirma de utilidad de la desagregación de los tres ajustes. Estos resultados tienen ciertas implicaciones para el regulador; sugieren la conveniencia de mostrar de forma transparente el resultado neto y los otros componentes del resultado global en un mismo estado que informe sobre este resultado.