A research on the effects of business environment on persistence of accounting numbers

2016 Fiscal Year Final Research Report

• Project/Area Number: 26380639
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Accounting
• Research Institution: Hannan University
• Principal Investigator: CHUJO YOSHIMI 阪南大学, 経営情報学部, 教授 (00387383)
• Project Period (FY): 2014-04-01 – 2017-03-31
• Keywords: 事業環境 / マクロ経済 / 企業の社会的責任 / 会計不正

Outline of Final Research Achievements

First, I examine the relationship between the aggregated financial information and macro economic environment. The results exemplify that both the return on net operating assets (RNOA) and its DuPont drivers of the largest listed companies are positively correlated with 1 year ahead GDP growth. Second, I investigate the association of the business environment surrounding the companies substantially involved in the environmental investments with accounting information of these companies. The results reveal that the environmental costs expenditure is positively correlated with ROE, but negatively correlated with discretionary accruals. Third, in the case of fraudulent accounting, I show that the information necessary for evaluating particular company differs according to the business environment of the company. After controlling the effects of productivity, it is confirmed that fraudulently increased net income leads to the excess investment such as over employment.

Free Research Field

財務会計