Doctoral Program in Economics Faculty of Economics and Business, Universitas Diponegoro held the Virtual 2021 International Guest Lecturer Series on Tuesday 04 November 2021 (13.00 – 16.00). On this occasion we invited Prof. George Emmanuel Iatridis, professor in accounting from the University of Thessaly Greece. His intellectual works have been cited by a lot of accounting scholars around the world. And today he shared his experience and expertise concerning issues on Corporate Philanthropy, Pessimism, and Accounting Quality.
Corporate philantrophy and narrative disclosure are two topics that have attracted business and accounting scholars. Corporate philanthropy may be expressed as cash donations given to charities directly by the company or indirectly through a company sponsored foundation. Corporate giving can be considered as a form of corporate social behavior. It is not just about maximizing company profits or improving certain financial figures, but it is about improving a company’s social profile and picture. Thus, it is may be viewed positively by investors, market authorities, customers and the local community. Corporate philanthropy may be motivated by the some motives such to reinforce their bottom line, to show social responsibility or legitimacy reasons, to reinforce the CEO’s profile, and due to other reasons, such as political costs, lobbying, religion, and altruism. However, to some extent corporate philanthropy may be also used by opportunistic agents as a medium for manipulating income that eventually decreases accounting quality.
Another issue that may affect accounting quality is narrative disclosure. Narrative disclosures should critically explain managerial assumptions, estimations, estimates, judgments and sources of estimation uncertainty in order to shed light upon the accounting and financial policies that are implemented. Numerical disclosures should quantify the narrative disclosures reported in a transparent and verifiable manner and provide forward-looking information in order to allow investors to make informed and unbiased investment decisions.
Komentar Terbaru