European Accounting Review (Eur Account Rev )

Publisher: European Accounting Association


The European Accounting Review is the international scholarly journal of the European Accounting Association . Devoted to the advancement of accounting knowledge, it provides a forum for the publication of high quality accounting research manuscripts. The journal acknowledges its European origins and the distinctive variety of the European accounting research community. Conscious of these origins, The European Accounting Review emphasises openness and flexibility, not only regarding the substantive issues of accounting research, but also with respect to paradigms, methodologies and styles of conducting that research. Though The European Accounting Review is a truly international journal, it also holds a unique position as it is the only accounting journal to provide a European forum for the reporting of accounting research. The advent of e.g. the single European market and the consequent harmonisation of accounting standards and regulations has shown the need for a European forum for accounting research. The European Accounting Review has already become indispensable as such a forum. With an internationally renowned new editorial team and leading contributors, The European Accounting Review is an increasingly important arena for the development of accounting theory and practice.

Impact factor 1.15

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  • Website
    European Accounting Review, The website
  • Other titles
    European accounting review (Online)
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  • Material type
    Document, Periodical, Internet resource
  • Document type
    Internet Resource, Computer File, Journal / Magazine / Newspaper

Publications in this journal

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    ABSTRACT: Drawing on Parkin's [Marxism and class theory: A bourgeois critique. London: Tavistock Publications] concept of dual closure, this paper examines the attempt to secure the regulation of the accountancy profession in post-unification Italy. The state's establishment of a class of ‘expert accountants’ in 1865 represented an imperfect closure of the profession. In consequence, a chain of closure attempts ensued. These ventures involved shifting constructions of dominant and subordinate occupational groups and the deployment of diverse strategies to achieve usurpationary and exclusionary forms of closure. The study reveals that the achievement of state regulation of the profession in 1906 reflected the successful pursuit of usurpationary closure by a subordinated group within the accountancy field. However, it also points to the failure of the profession's efforts to make incursions into the jurisdictions of higher status occupations, especially lawyers, who wielded considerable sociopolitical power in newly unified Italy. Consistent with the findings of previous studies, the paper confirms the complexity and uncertain outcomes of closure projects in the accountancy profession.
    European Accounting Review 10/2014;
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    ABSTRACT: This study combines Dillard et al.’s (2004) institutional change model with institutional entrepreneurship theory. The aim is to enhance understanding of institutional change processes when a country adopts international accounting standards. For empirical support, we focus on the changes in social structures and accounting practices that arose in 2010 when Portugal replaced its national accounting system for unlisted companies, with a new system of accounting based on International Financial Reporting Standards. We reveal how an evolving socio-economic and political context, and the embedding of central actors in multiple fields, facilitated entrepreneurial action by actors who took political opportunity, mobilized important allies, and accommodated the interests of major protagonists. We draw attention to the possibility of an earlier inversion of the cascading institutionalization process than is envisaged by Dillard et al. (2004). At the organizational field level, we highlight how national professional accounting associations and business associations can shape criteria established at the political and economic level, thereby counteracting the institutionalization process. At the organizational level, we focus on the accounting standard for small and medium sized entities. We provide insights to why some accountants maintained structures of meaning associated with the previous accounting system.
    European Accounting Review 03/2014; In press(DOI: 10.1080/09638180.2014.887477):1-41.
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    ABSTRACT: This paper analyzes the impact of capital gains taxation on investment timing decisions for risky investment projects with entry and exit flexibility under differential tax rates for ordinary income and capital gains. We investigate whether capital gains taxation influences immediate and delayed investments asymmetrically, given the optimal abandonment decision. If capital gains taxation induces a lock-in effect, this effect is anticipated in the investment timing decision. In contrast to prior research, our numerical simulations show that this lock-in effect of capital gains taxation can induce normal as well as paradoxical effects on investment timing under simultaneous entry and exit flexibility. A paradoxical timing effect, i.e., investment accelerated by capital gains taxation, especially emerges for high liquidation proceeds or, more conservative tax accounting, low interest rates, and low volatilities. In these cases, capital gains taxation reduces the value of the option to invest and hereby increases the propensity to invest immediately. As a second paradoxical tax effect, capital gains taxation may favor delayed real investment over financial investment. Facing these results, tax legislators should not use capital gains taxation as a short-term tax policy instrument to influence investors’ timing decisions.
    European Accounting Review 02/2013;
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    ABSTRACT: Following Arthur Andersen’s conviction for obstructing justice, auditors faced a one-time significant change in their regulatory environment because it was clear that: (i) major audit partnerships could be closed; (ii) post SOX, regulators would take a far more attentive (aggressive) role. In response auditors considered whether the pricing of audits should be revised to take account of the increased risk of regulatory intervention and litigation. Obviously such re-pricing would need to be targeted at those firms for which the risks were greatest. One early warning signal of such events occurring is the issuance by the SEC of a Comment Letter. We investigate whether there is any evidence that if a client receives a Comment Letter this is used to re-price audit services. Specifically, we investigate whether issuance resulted in upward pressure on audit fees, and whether this effect was simply transient around the issuance period or alternatively persisted some years into the future. This research finds that after a client receives a Comment Letter, auditors adjust audit fees upwards in the period in which the Comment Letter is received. In addition it is shown that for subsequent periods in which the auditor does not spend time assisting the client respond to a specific Comment Letter, initial rises in audit fee persist. This is consistent with the hypothesis that auditors reassess the reputation and litigation risk of the client on the basis of the SEC issuance of a Comment Letter.
    European Accounting Review 01/2013;
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    ABSTRACT: We study the association between credit availability and modified audit opinions using a sample of more than 50,000 observations for small- and medium-sized companies. Studies in finance suggest that companies use trade-credit as a source of financing when institutional debt is not available (e.g. Petersen and Rajan, 1994; Danielsson and Scott, 2004). Building on these studies, we study whether modified audit opinions are associated with an increased use of trade credit relative to bank debt. We find no association between modified audit opinions and our measure of credit rationing. Our archival evidence focusing on SMEs is contrary to much of the earlier research finding that modified audit opinions provide incremental information for lenders. Our study adds to the scarce literature on the role of audit reports as a source of information in SME finance.
    European Accounting Review 10/2012; 21(4):767-796.
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    ABSTRACT: This paper investigates the long-standing Swiss dualistic approach to banking supervision, whereby banks' external auditors report not only to shareholders under company legislation but also report to, and undertake work for, the banking regulator under banking legislation. The dual role raises the issue of whether auditors are sufficiently independent of management to act fairly with respect to both shareholders and supervisors. In contrast, recent literature and policy-making on regulation advocates the need to close the distance between regulators and those regulated, and the Basel Committee on Banking Supervision has advocated a closer relationship between banking supervisors and banks' external auditors. The paper investigates the dual role by providing empirical evidence from interviews undertaken with Swiss audit partners, and analysis of documentary material from the Swiss banking regulator and IMF. The paper concludes inter alia that the Swiss dualistic system ‘works’ because it is supported by a layered regulatory approach at audit firm, national and international levels to ensure and safeguard auditor independence and competence. Whether such a system would work elsewhere depends on national factors such as conceptions of the nature of corporate governance and of the state, and prevailing views on private actors undertaking public roles.
    European Accounting Review 05/2012; 21(1):1-28.
  • European Accounting Review 02/2012; 6(4):804-807.
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    ABSTRACT: The aim of this introduction is to discuss some of the challenges and problems faced by researchers who are interested in conducting research in transitional and emerging market economies and to highlight some of the key attributes and characteristics of these economies. The papers contained in this Special Section are introduced by way of providing a brief overview of their contributions and identifying other important areas that future researchers might wish to pursue.This Special Section of European Accounting Review is devoted to publishing papers on various accounting issues in transitional and emerging market economies. In this introduction, we aim to set the scene for the papers contained in this Special Section, to highlight some of the key attributes and characteristics of transitional and emerging market economies, to provide a brief overview of the contributions published here and finally to identify some other important areas that future researchers might wish to pursue.
    European Accounting Review 12/2011; 20(4):625-637.
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    ABSTRACT: Recent public sector reforms have increasingly tended to re-cast citizens as ‘customers’. This paper explores the implications of such customer orientation efforts for management control based on a field study in a Swedish central government agency. We extend prior research on this topic, informed by critical and institutional theories, with insights from the garbage can literature and focus on a key decision-making process involved in making extant management control practices more customer-focused. Our analysis nuances the predictions of critical scholars, suggesting that customer orientation initiatives will commodify public services and narrow the interests served by public sector organizations. In doing so, we draw attention to how conflicting institutional arrangements fostered a garbage can situation hampering radical change in management control practices. Our garbage can analysis provides a bridge between critical and institutional perspectives by re-instating a focus on decision-making. We show how the intricacies of decision-making may moderate the power embedded in novel management control practices and foster inertia and unintended outcomes. Our analysis also raises important policy implications pertaining to the possibilities of combining customer orientation efforts with rationing of public services.
    European Accounting Review 09/2011; 20(3):551-581.
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    ABSTRACT: With the European Commission making global leadership claims in the field of audit regulation, the content of its 2010 Green Paper on ‘Audit Policy: Lessons from the Crisis’ warrants careful scrutiny. Important issues raised in the Green Paper include regulatory oversight, competition in the audit market, the dangers of having very few firms with the capacity to audit global transnational corporations, professional judgement, innovative audit practices and, last but not least, social responsibility. This article analyses the principal perspectives and assumptions underpinning the construction of the Green Paper. The aims are threefold: to enhance understanding of the contemporary regulatory mindset of the European Commission, contribute to policy debate and inspire future research.
    European Accounting Review 09/2011; 20(3):431-457.
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    ABSTRACT: This paper analyses the consequences, in Denmark between 1984 and 2006, of the implementation of the European EU Eighth Directive on the qualification of statutory auditors. Although the Eighth Directive envisaged one group of statutory auditors in each Member State, there were two groups of auditors in Denmark, and the implementation of the Directive triggered a long conflict between the two groups about the education of the second-tier auditors. The analysis is based on the work of Abbott ((1988)) on professional jurisdictional disputes and shows how the local implementation of the Eighth Directive on auditor qualifications disturbed the balance of the 'system of professions' in Denmark and gave rise to an intra-professional conflict over the statutory audit jurisdiction. The jurisdictional dispute dragged on for two decades because of the complexity of the Danish regulatory system, where audit regulation takes place in overlapping committees between the profession, the state and the educational institutions. It was finally settled by educational differentiation of the two groups, and we discuss the implications of this settlement for the process of audit harmonisation in Europe.
    European Accounting Review 06/2011; 20(2):321-354.