THE EFFECTS OF ACCOUNTING MEASUREMENT OF COVID-19 PANDEMIC ON THE BUSINESS INDUSTRIES: EMPIRICAL REVIEW
Article Sidebar
Main Article Content
Abstract
The Covid-19 global pandemic has affected most companies financially as it has led to massive uncertainties across all sectors and industries. In such situation it requires the refined, and highly integrated accounting information to measure and reflect the economic operation situation and provide early warning to decision makers. The study uses online empirical recourses by the name of Covid-19 pandemic impact on the industries and accounting measurement of the business industries in different online database sources such as Google Scholars, Springer Link, Wiley, Science Direct, JSTOR, Emerald full text, Scopus, and EBSCO HOST. The review findings show that there are different accounting measurement used to measure the impact of Covid-19 on various business industries. The findings of the study also identified that different industries react differently to Covid-19, thus the study findings could be used to draw policy guideline for the industries which were significantly affected by the epidemic.
JEL Classification Codes: H83, O14.
Downloads
Article Details
Issue
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
References
Abiad, A., Arao, R. M., & Dagli, S. (2020). The Economic Impact of the Covid-19 Outbreak on Developing Asia.
Acharya, V. V., & Steffen, S. (2020). The risk of being a fallen angel and the corporate dash for cash in the midst of COVID. Working paper (National Bureau of Economic Research).
Akira Toda, A. (2020). Susceptible-Infected-Recovered (Sir) Dynamics of Covid-19 and Economic Impact. arXiv: 2003.11221.
Albuquerque, R., Koskinen, Y., Yang, S., & Zhang, C. (2020). Resiliency of environment and social stocks: an analysis of the exogenous COVID-19 market crash. The Review of Corporate Finance Studies, 9, 593–621.
Aldamen, H., Duncan, K., Kelly, S., & McNamara, R. (2020). Corporate governance and family firm performance during the Global Financial Crisis. Accounting & Finance, 60(2). 1237-1904.
Barman, D. (2020). Account Management and Financial Recording During the Coronavirus Pandemic. International Journal of Research in Engineering, Science and Management, 3(10), 124-126.
Barnoussi, A. E., Howieson, B., & Beest, F. V. (2020). Prudential Application of IFRS 9: (Un)Fair Reporting in COVID‐19 Crisis for Banks Worldwide?!. Australian Accounting Review, 30(94), 178–192.
Cheng, Y., Park, J., Pierce, S., & Zhang, T. (2019). Big Bath Accounting Following Natural Disasters.Retrieved from https://ssrn.com/abstract=3305478
Cui, L., Kent, P., Kim, S., & Li, S. (2021). Accounting conservatism and firm performance during the COVID‐19 pandemic. Accounting & Finance.
Deloitte (2020). COVID-19: Impact on Accounting & Financial Reporting. Retrieved from https://www2.deloitte.com/ch/en/pages/audit/topics/covid-19-impact-on-accounting-and-financial-reporting.html
Ding, W., Levine, R., Lin, C., & Xie, W. (2020). Corporate immunity to the Covid-19 pandemic. Working paper (National Bureau of Economic Research).
El-Mousawi, H., & Kanso, H. (2020). Impact of COVID-19 Outbreak on Financial Reporting in the Light of the International Financial Reporting Standards (IFRS) (An Empirical Study). Research in Economics and Management, 5(2), 21-38.
Fahlenbrach, R., Rageth, K., & Stulz, R. M. (2020). How valuable is financial flexibility when revenue stops? Evidence from the COVID-19 crisis. Working paper (Fisher College of Business Working Paper Series).
Fiechter, P., & Meyer, C. (2010). Big bath accounting using fair value measurement discretion during the financial crisis. In American Accounting Association Annual Meeting, San Francisco.
Gopinath, G. (2020). The Great Lockdown: Worst Economic Downturn since the Great Depression. International Monetary Fund Blog 23March 2020.
He, P., Niu, H., Sun, Z., & Li, T. (2020). Accounting Index of Covid-19 Impact on Chinese Industries: A Case Study Using Big Data Portrait Analysis. Emerging Markets Finance and Trade, 56(10), 2332-2349.
Heald, D., & Hodges, R. (2020). The accounting, budgeting and fiscal impact of COVID-19 on the United Kingdom. Journal of Public Budgeting, Accounting & Financial Management, 32(5), 785-795.
Hope, O. K., & Wang, J. (2018). Management deception, big-bath accounting, and information asymmetry: Evidence from linguistic analysis. Accounting, Organizations and Society, 70(C), 33-51.
Husain, A. (2020). Covid-19: Potential Impact on the World’s Poorest People a Wfp Analysis of the Economic and Food Security Implications of the Pandemic World Food Programme April 2020.
Hutt, R. (2020). The Economic Effects of Covid-19 around the World. World Economic Forum.
IAS Plus. (2020). IFRS in Focus Accounting considerations related to the Coronavirus 2019 Disease. Retrieved from https://www.iasplus.com/en/publications/global/ifrs-in-focus/2020/coronavirus
KPMG. (2020). Covid19 Financial Reporting. Retrieved from https://home.kpmg/xx/en/home/insights/2020/03/covid-19-financial-reporting-resource centre.html
Kustono, A. S., Agustini, A. T. & Dermawan, S. A. R. (2021). Beware of the existence of a big bath with asset impairment after pandemic covid-19! The Indonesian Accounting Review, 11(1), 21-31.
Landier, A., & D. Thesmar, 2020, Earnings expectations in the COVID crisis, The Review of Asset Pricing Studies, 10, 598–617.
Lang, M., & Maffett, M. (2011). Transparency and liquidity uncertainty in crisis periods. Journal of Accounting and Economics, 52(2), 101-125.
Laux, C., & Leuz, C. (2010). Did fair-value accounting contribute to the financial crisis?. Journal of Economic Perspectives, 24(1), 93-118.
Levy, H. B. (2020). Financial Reporting and Auditing Implications of the COVID-19 Pandemic. The CPA Journal May 2020. Retrieved from https://www.cpajournal.com/2020/06/08/financial-reporting-and-auditing-implications-of-the-covid-19-pandemic
Maital, S., & Barzani, E. (2020). The Global Economic Impact of Covid-19: A Summary of Research. Samuel Neaman Institute for National Policy Research.
Organization, W. H. (2009). The Financial Crisis and Global Health: Report of a High-Level Consultation, Geneva, Switzerland, 19 January 2009. Geneva: World Health Organization.
Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: impact on the Global Economy. http://dx.doi.org/10.2139/ssrn.3562570
Ozili, P. K. (2021). Accounting and financial reporting during a pandemic. http://dx.doi.org/10.2139/ssrn.3613459
Pagano, M., Wagner, C., & Zechner, J. (2020). Disaster resilience and asset prices. http://dx.doi.org/10.2139/ssrn.3603666
Pavlatos, O., & Kostakis, H. (2015). Management accounting practices before and during economic crisis: Evidence from Greece. Advances in accounting, 31(1), 150-164.
Polizzi, C., Lynn, S. J., & Perry, A. (2020). Stress and Coping in the Time of Covid-19: Pathways to Resilience and Recovery. Clinical Neuropsychiatry, 17(2), 59–62.
Ramelli, S., & Wagner, A. F. (2020). Feverish stock price reactions to COVID-19. The Review of Corporate Finance Studies, 9, 622–655.
Report, I. (2020). The World Economic Outlook ; the Great Lockdown and Global Prospects and Policies. Full Report to Follow in May 2020.
Surico, P., & Galeotti, A. (2020). The Economics of a Pandemic: The Case of Covid-19. Wheeler Institute for Business and Development, LBS. London: London Business School
Xiao, H., & Xi, J. (2021). The COVID-19 and earnings management: China’s evidence. Journal of Accounting & Taxation, 13(2), 59-77.
Zeng, M., Zhang, P., Yu, S., & Zhang, G. (2016). Decision-making model of generation technology under uncertainty based on real option theory. Energy Conversion and Management, 110, 59–66.