Joint School Conference 2024 - Xiamen National Accounting Institute, Xiamen University and SMU
On 25 May 2024, faculty members from SMU School of Accountancy, Xiamen National Accounting Institute, and Xiamen University came together for the Joint School Conference, where faculty members presented and discussed their research papers, as well as exchanged ideas for future research collaboration.
Participants of the Joint Conference from all institutions
Held at Xiamen National Accounting Institute this year, the one-day conference showcased research presentations by professors from each participating institution, with SMU School of Accountancy represented by Assistant Professors Grace Fan and Kyungjin Park.
Does Reducing Information Processing Costs Enhance Environmental Justice?
Grace Fan, Assistant Professor of Accounting, SMU School of Accountancy, presented her paper co-authored with Trung Nguyen and Xi Wu, which examined the impact of reducing information processing costs on environmental justice (EJ). The Environmental Protection Agency (EPA) developed and launched EJScreen, a new EJ mapping tool, during 2010 to 2015. This tool made previously public data easier to understand and more accessible for users, thereby reducing their information processing costs in identifying locations with potential EJ concerns. Using a difference-in-difference estimation approach around both the internal and public launch of EJScreen, they examined its impact on affected companies' pollution. They found a greater reduction in toxic chemical releases (GHG emissions) at facilities located in areas with higher EJ concerns than at other facilities after the internal (public) launches of EJScreen, suggesting that both regulatory and public scrutiny played a role in shaping firms’ pollution behavior. Investigating the underlying channels, they found that the effects were stronger for firms located in areas with more public attention to environmental issues, higher local newspaper circulation, and for firms held by green-oriented institutional investors. Their results are consistent with the view that reducing the information processing costs of EJ information leads to increased scrutiny of local firm pollution, thereby enhancing environmental justice.
Grace Fan, Assistant Professor of Accounting, SMU, presenting her paper.
On the potential outcomes of standardizing non-GAAP financial measures: Evidence from the REIT industry
Kyungjin Park, Assistant Professor of Accounting, SMU School of Accountancy, presented his paper co-authored with Kurt H Gee, which examined potential outcomes of standardizing non-GAAP financial measures. They extended prior research on the Real Estate Investment Trusts (REIT) industry where nearly all REITs report “funds from operations” (FFO), a non-GAAP financial measure standardized by industry experts, and where standardization reduced opportunism and enhanced credibility (Baik et al. 2008). From 2007-2020, despite FFO’s existence, 78 percent of US REITs disclose unstandardized “adjusted FFO” (AFFO), which is more predictive of future operating performance, more value relevant, and more comparable across REITs than standardized FFO. Thus, even where standardization may be considered a success, unstandardized measures thrive. In addition, a recent standardization of AFFO in Canada does not affect the predictive ability, value relevance, or comparability of firms’ AFFO measures, which suggests that standardization may not make meaningful changes to the use or usefulness of unstandardized measure in the current regulatory environment.
The following papers were presented at the conference by faculty members from Xiamen National Accounting Institute and Xiamen University:
“Does Bank Competition Affect Bond Pricing? Evidence from the Geographical Distribution of Bank Branches in China” – presented by Xiping Li, Xiamen National Accounting Institute
“The Importance of Auditing Standards to Cross-Listings: Evidence from Convergence with the International Standards on Auditing” -- presented by Xiaoqi Chen, Xiamen University
“Determinants and Consequences of Lenient Modified Audit Opinions” -- presented by Chen Ma, Northwest University (Trainee at the National Accounting Capacity Building Program: Young Talent Scholar)
“Solving Inequality and Achieving Tax Fairness – The Case of the Kulangsu International Settlement in China” – presented by Feng Xiong, Xiamen University
The Joint School Conference fostered a spirit of collaboration and provided a unique platform for the professors to share their expertise and exchange insights with one another.
Samuel Tan, Assistant Professor of Accounting at SMU School of Accountancy, shared his thoughts regarding the conference, “The SMU-XNAI-XMU Joint Accounting Conference provided us an invaluable opportunity to learn from, and share our research with top accounting scholars from the region. The conference provided us the opportunity to raise SMU’s global profile and spark research collaborations with other thought leaders.”
Since 2014, the Joint School Conference was held at various established universities in the Asia-Pacific region and Europe including Beijing, Seoul, Sydney, Taipei, Shanghai, and Tilburg. Visit https://accountancy.smu.edu.sg/research/academic-research/seminars-and-conferences/joint-school-conference-overseas to read more about the Joint School Conference.
