Mapping the Knowledge of Financial Accounting on Financial

Accounting: A Bibliometric Analysis

Anggi Rulita Sari
Universitas Bengkulu

Bunga Putri Praselia

Universitas Bengkulu

Katarina Cindy AP
Universitas Bengkulu
 Mapping the Knowledge of Financial Accounting Studies on Financial
Accounting: A Bibliometric Analysis

Anggi Rulita Sari1, Bunga Putri Praselia2., Katarina Cindy AP3

4
Universitas Bengkulu,Kota Bengkulu, Indonesia

1. Introduction

Developments in the era of globalization of a country play an important role as

an aspect of life. In the rapid development of business with the support system globally
and make every company to be able to compete. So that the business turnover runs
effectively to achieve the main goal of the company, which is to make a profit. This
makes the role of telecommunications companies to be very important. Therefore,
telecommunications companies as a vehicle for exchanging information are needed to
pay more attention to quality, especially from the service aspect.
Financial analysis is the foundation of financial management that can provide an
overview of the company's finances, both now and in the past, so that it can be used to
make decisions for related company managers in improving future performance. With
financial analysis, besides being able to assess the company's financial performance,
important aspects can provide an overview of the financial health condition, so the
management and investors can find out whether or not the health condition of a
company is good.
With the preparation of a blibography on the preparation of financial statements,
it will be easier for users to find information related to financial statements to assist
users in determining the location of the existence of a library material or getting to
know a book or other library material that they observe. For this reason, the author tries
to help readers by writing an article with the title Mapping Financial Accounting
Knowledge in Financial Accounting: Bibliometric Analysis
2. Literature Review
Financial accounting research is a broad field that examines financial communication
between managers, auditors, information intermediaries, and investors, as well as the
effects of regulatory regimes on that process. Much of this literature focuses on managers’
and auditors’ reporting decisions and their relationships to analysts’ forecasts and value
estimates, investors’ trading decisions, and resulting market prices. This clear focus on
judgment and decision making led to the large number of experimental financial
accounting studies published in major accounting journals in the 1960s and 1970s.
At a general level, accounting exists to provide a service. In the box below there are three
definitions. These have all been taken from the same economic and cultural source (the
United States) because that country has the longest history of attempting explicit
definitions of this type. Note that each suggested definition seems broader than the
previous one, and the third one does not restrict accounting to financially quantifiable
information. Many would not accept this last point. As will be explored in this book,
attitudes to accounting and its role differ substantially around the world and certainly
between European countries.
Financial accounting information is the product of corporate accounting and external
reporting systems that measure and publicly disclose audited, quantitative data concerning
the financial position and performance of publicly held firms. Financial accounting systems
provide direct input to corporate control mechanisms, as well as providing indirect input to
corporate control mechanisms by contributing to the information contained in stock prices.
A fundamental objective of governance research in accounting is to provide evidence on
the extent to which information provided by financial accounting systems mitigate agency
problems due to the separation of managers and outside investors, facilitating the efficient
flow of scarce human and financial capital to promising investment opportunities. We
believe that governance research is important for developing a complete understanding of
the impact of financial accounting information on the allocation and utilization of resources
in an economy.
The largest body of governance research in accounting concerns the role of financial
accounting information in managerial incentive contracts. The heavy emphasis on
managerial compensation derives from the widespread use of compensation contracts in
publicly traded U.S. corporations, the availability of top executive compensation data in the
 U.S. as a result of existing disclosure requirements, and the success of principal–agent
models in supplying testable predictions of the relations between available performance
measures and optimal compensation contracts.
The first approach relies primarily on implications of the ‘‘informativeness principle’’
attributed to Holmstrom (1979). This principle (intuitively) states that any (costless)
performance measure which is marginally informative about a manager’s actions, given
other available performance measures, should be included in the contract. However, this
statement gives little direct guidance on which performance measures we should expect to
observe in actual contracts. In essence, the study of accounting’s role in contracting is
driven by the prevalence of its use in actual contracts, not by the theory. While several
recent papers attempt to explain explicit performance measure choice in contracts, most
accounting research posits a set of performance measures without knowing the actual
performance measures being used, and then proceeds to study the estimated incentive
weights on the posited variables. This raises issues related to measurement error and
omitted variables. Despite limitations in the approach, this research overall has documented
robust patterns in the data consistent with the theory, which we discuss in detail below.
This research also allows a deeper understanding of accounting numbers themselves by
isolating determinants of the use of accounting numbers in incentive contracting. In our
discussion below, we develop the theoretical framework underlying this work, highlight its
main predictions, and evaluate the basic research findings in the context of the formal
model.

3. Research Methodology

This paper uses a recent experimental study of financial accounting to illustrate our view
of how such experiments can be carried out successfully. We first describe how changes in
market efficiency views, reliance on experimentalist comparative advantage, new theories,
and focus on key institutional features have allows researchers to overcome the criticisms
of previous financial accounting experiments. We then describe how specific experimental
financial accounting research flows have answered questions about financial
communication between managers, auditors, information intermediaries, and investors, and
show how future research can be expanded.
 those streams. We focus primarily on (1) how managers and auditors report information;
(2) how users of financial information interpret the report; (3) how individual decisions
affect market behavior; and (4) how strategic interactions between information reporters
and users can affect market outcomes. Our example includes and integrates experiments
included in the ''behavioral'' and ''experimental economics'' literature in accounting. Finally,
we discuss how experiments can be designed to be both effective and efficient.

Financial accounting information is the product of corporate accounting and external

reporting systems that measure and publicly disclose audited, quantitative data concerning
the financial position and performance of publicly held firms. Financial accounting systems
provide direct input to corporate control mechanisms, as well as providing indirect input to
corporate control mechanisms by contributing to the information contained in stock prices.
A fundamental objective of governance research in accounting is to provide evidence on
the extent to which information provided by financial accounting systems mitigate agency
problems due to the separation of managers and outside investors, facilitating the efficient
flow of scarce human and financial capital to promising investment opportunities. We
believe that governance research is important for developing a complete understanding of
the impact of financial accounting information on the allocation and utilization of resources
in an economy.

4. Results

4.1 General Statistic

This section will focus on the distribution of the articles and the influential aspect
of the Financial Leverage. The distribution of articles based on the number of the
article published by the sources of journals. The influential aspect of Finansial
Leverage will present the most productive aspects from namely, subject areas, authors,
institutions, and countries.
4.1.1 Influential aspects of financial leverage
Through co-authorship or citation analysis, this research reveals the top
journals, influential authors, affiliations, and districts. The results showed that 10
papers from the Scopus database were published from the most citations by 10 journals
and belonged to 75 authors. Among the 10 journals, the top 1-10 journals published in
 articles related to Financial Accounting are shown. Based on the scopus database, the
highest publications from the 1-10 rankings indicate that in 2014 was the most
publications from that ranking.

Figure 1 : Top 10 Rank Journal about Financial Accounting by citations

4.2 Bibliometric mapping, and visualization

This section showed five types of bibliometric analyses such as co-
occurrence of keywords, co-authorship collaboration, citation analysis, co-
citation networking, and bibliographic coupling clustering. This study
focused on one of the unit analysis from each type of five bibliometric
analysis.
4.2.1 Co-occurrence keyword analysis
Based on the VOSviewer software, the co-authorship analysis is divided into three
units of analysis, namely, author, institution, and country. The co-authors' analysis
also revealed the results of the most prolific authors, affiliations, and countries as
presented earlier. However, this study only focuses on the co-author's analysis. The
 results show 75 authors, but according to VOSviewer, most are not yet connected.
Only 17 authors had the largest set of connected items among them as presented in
Figure 4. Figure 4 shows the relationship between the seventeen authors. These
authors are classified into five groups represented by color.

Figure 2: Co-occurrence network and visualization of keywords

Figure 3 : The top 10 keywords by authors

4.2.2 Co-authorship analysis of tittle

Figure 3: Network of co-authors

 This study collects article titles and displays them on Scopus. The data shows that
the titles of articles related to financial accounting are: accounting, financial
accounting, student, financial accounting informating, and financial accounting
standard.
Citation Analysis of Document
Rank Authors Title Year Published in
1 Bushman, Financial accounting 2004 Journal of Accounting and
Robert information, Economics
Chen, Qi organizational complexity
Engel, Ellen and corporate
Smith, Abbie governance systems
2 Bushman, Financial accounting 2001 Journal of Accounting and
Robert M. information and Economics
Smith, Abbie J. corporate governance
3 Bushman, Financial reporting 2006 Journal of Accounting and
Robert M. incentives for Economics
Piotroski, Joseph conservative accounting:
D. The influence of legal and
political institutions
4 Hung, Mingyi Accounting standards and 2000 Journal of Accounting and
value relevance of Economics
financial statements: An
international analysis
5 Holthausen, The relevance of the 2001 Journal of Accounting and
Robert W. value-relevance literature Economics
Watts, Ross L. for financial accounting
standard setting
6 Beatty, A Financial accounting in 2014 Journal of accounting and
Liao, S the banking industry: A Economics
review of the empirical
literature
7 Bushman, R Financial accounting 2004 Journal of accounting and
Chen, Q information, Economics
Engel, E organizational complexity
Smith, A and corporate
governance systems
8 Dyreng, S D Using financial 2009 Journal of Accounting
Lindsey, B P accounting data to Research
examine the effect of
foreign operations
located in tax havens and
other countries on US
multinational firms' tax
rates
9 Bushman, Financial reporting 2006 Journal of accounting and
Robert M. incentives for Economics
 Piotroski, Joseph conservative accounting:
D. The influence of legal and
political institutions
No. Of Tittles
Citation
s
1 Financial accounting
information, organizational
complexity and corporate
governance systems
2 Financial accounting
information and corporate
governance
3 Financial reporting incentives
for conservative accounting:
The influence of legal and
political institutions
4 Accounting standards and
value relevance of financial
statements: An international
analysis
5 The relevance of the value-
relevance literature for
financial accounting standard
setting
6 Financial accounting in the
banking industry: A review of
the empirical literature
7 Financial accounting
Journal Review
(1) earnings timeliness, and
(2) organizational complexity measured as
geographic and/or product line diversification.
(1) the irrelevance of individual behavior in market
settings, in which competitive forces will eliminate
individual ‘‘errors’’;
(2) poor matching of research methods to research
questions;
(3) the lack of psychological or economic theory to
predict effects and specify the mechanisms through
which they occur; and
(4) failure to capture relevant aspects of the decisions
of interest, in particular, decision maker attributes
and institutional features.
(1) how managers and auditors report information;
(2) how users of financial information interpret those
reports;
(3) how individual decisions affect market behavior;
and
(4) how strategic interactions between information
reporters and users can affect market outcomes.
(1) This finding is consistent with the belief that
shareholder protection increases the effectiveness of
accrual accounting,
(2) and suggest the importance of considering
shareholder protection when formulating accounting
policies related to accruals.
(1) descriptive accounting, standard setting and
valuation,
(2) the reported value-relevance literature
relationship between accounting numbers and
general equity valuations has limited implications or
conclusions for standard setting;
(3) they are just associations.
(1)On bank financial accounting. After providing a
brief background on the theoretical and institutional
models of accounting and regulations that underlie
the bank accounting literature.
(1)accounting system to capture relevant information
 information, organizational
complexity and corporate
governance systems
8 Using financial accounting data
to examine the effect of
foreign operations located in
tax havens and other
countries on US multinational
firms' tax rates
9 Financial reporting incentives
for conservative accounting:
The influence of legal and
political institutions
in a timely fashion,
(2)and that the usefulness of these internal financial
(1)We develop a new regression methodology using
financial accounting data to estimate the average
worldwide, federal, and foreign tax rates on
worldwide, federal, and foreign pretax.
(1)legal/judicial system,
(2)securities laws,
(3) and political economy create incentives that
influence the behavior of corporate executives,
investors, regulators and other market participants.

5. Conclusion
The mapping carried out aims to explore material related to financial accounting. To
achieve the objectives of this mapping and analysis, bibliometric analysis using Vosviewer
software was used. To collect data in the form of journals, the Scopus database is used. The
result is a statistical explanation based on the type of bibliometric analysis, such as the
author's Co-Authorship analysis and the Co-occurrence title analysis. Articles and journals
related to financial accounting are spread across 75 journals. Top 1-9 based on most quotes.
The analysis that has been carried out shows that there is no correlation between the
researcher and the journals that we take.
 REFERENCES

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