Business Commons^™

Can The Financialised Atmosphere Be Effectively Regulated And Accounted For?, Patty Mcnicholas, Carolyn Windsor

Carolyn Windsor

Purpose – This paper aims to carry out a critical analysis of the proposed Australian emissions trading scheme (ETS) as a complex market solution to reduce greenhouse gases (GHGs). Specifically it seeks to examine the financial regulatory infrastructure that will more than likely oversee the Australian ETS, the same regulatory infrastructure which failed to prevent the global financial crisis.Design/methodology/approach – A critical examination of the financialisation of the atmosphere that follows the growth of the financialisation of capitalism when economic activity shifted from production and service sectors to finance. Financialisation of capitalism is supported by capitalist regulation influenced by neo-liberal …

Cross-Country Evidence On The Preliminary Effects Of Patent Box Regimes On Patent Activity And Ownership, Sebastien J. Bradley, Estelle Dauchy, Leslie Robinson

Sebastien J Bradley

This paper evaluates the initial impacts of patent box regimes in light of their primary stated objectives: stimulating domestic innovation and retaining mobile patent income to limit base erosion. Despite their lack of nexus requirements, we find that patent box regimes yield a 3 percent increase in new patent applications for every percentage point reduction in the tax rate on patent income. We find no significant impact of these regimes on deterring outward cross-border attribution of patent ownership, or on attracting ownership of foreign inventions. Increased patenting activity hence appears focused on inventions involving co-located (domestic) patent owners and inventors.

How Do Market Agents Assess Audit Quality?, Adam Esplin, Karim Jamal, Shyam Sunder

Shyam Sunder

Norms, Organization, Risk In Financial Reporting, Shyam Sunder

Shyam Sunder

No abstract provided.

Investigation Of Difference Between Target Costing Setting (Tcs) Users And Non-Target Costing Setting (Non-Tcs) Users In Iranian Companies, Mahdi Naqdi Bahar Mr

Mahdi Naqdi Bahar

The current research investigates Target Costing as a strategic cost management tool in Iranian companies‟ environment. A questionnaire is distributed to Target Costing Setting (TCS) users and Non-Target Costing Setting (Non-TCS) users, in order to determine the differences between them in relation to the perceived advantages of Target Costing organizational complexity, satisfaction with costing, and performance. The influence of top management support and whether a particular strategy is perceived is also examined in relation to distributed Target Costing Setting (TCS) users. The results indicate that Target Costing Setting (TCS) users have a more optimistic perception of advantages realized from Target …

Employee's Participation: A Critical Success Factor For Justice Perception, Wai Kwan (Elaine) Lau

Wai Kwan (Elaine) Lau

The present study proposed and tested a model that examines the relationship between leadership style, employee’s participation, and justice perceptions. The paper extended the literature of the justice by connecting three major research areas (leadership style, employee’s participation, and organizational justice), and examined the influences of leadership style and employee’s participation in shaping employee’s perception of justice. Results indicated that transactional, transformational, and dynamic leadership have positive impact on distributive, procedural, and interactional justice. Moreover, the effect of leadership style on organizational justice was indirect through employee’s participation. This study synthesized previous leadership studies and argued that leadership style can …

"Financial Engineering And The Arms Race Between Accounting Standard Setters And Preparers.", Shyam Sunder

Shyam Sunder

No abstract provided.

The Pricing Decision: Balancing The Cost-Based And Market-Based Approaches In Different Industries, Shawn M. Kain, Kenneth Yale Rosenzweig

Kenneth Y. Rosenzweig

The objectives of this paper are to discuss cost estimating and pricing issues in four different industries, to analyze methods and strategies that are used in the costing and pricing of products in those industries, and to make general comparisons about costing and pricing techniques. Accurate projection of costs is essential to the survival of any firm because cost estimates often determine whether a project will be authorized to begin or continue, the amount of resources that will be allocated to a particular product or product line, the prices of products, and the firm's and product line's profitability. Many management …

Financial Engineering And The Arms Race Between Accounting Standard Setters And Preparers, Shyam Sunder

Shyam Sunder

No abstract provided.

Earnings Manipulation: A Report By Robert Lavine On The Business Ethics Research Of Kenneth Rosenzweig And Marilyn Fischer, Kenneth Yale Rosenzweig, Marilyn Fischer

Kenneth Y. Rosenzweig

This column by Robert LaVine in the Chartered Accountants Journal of New Zealand reports on the research of University of Dayton professors Kenneth Rosenzweig and Marilyn Fischer, "Is Managing Earnings Ethically Acceptable? Surveys Show Age and Seniority Affect Attitudes on Earnings Management," >>> published in the journal Management Accounting.

Why Toyota And Honda Topped The 2002 J.D. Power Quality Study, Susan Lightle, Kenneth Yale Rosenzweig, John Talbott

Kenneth Y. Rosenzweig

Toyota again topped the annual J. D. Power and Associates quality study released in late May of 2002. Toyota scored the highest mark ever with l 07 defects per l 00 vehicles, while Honda came in second with 113 defects. The study was based on responses of approximately 65,000 new car owners queried during their first 90-days of ownership. These results do not surprise us, as we have been fortunate to make numerous sojourns to the Toyota plant in Georgetown, Kentucky, and observe the manufacturing processes. These trips were normally facilitated by a former Japanese student of ours, Minako Yanke, …

User-Friendly Financial Statements: A Proposed Model, Kenneth Yale Rosenzweig, Andrew A. Fioriti

Kenneth Y. Rosenzweig

In contrast to early bookkeeping systems whose only role was to assist the resident owners, financial reporting today serves to protect various nonresident parties with interests in the enterprise, such as absentee shareholders. It provides them with information useful for monitoring the operations of the enterprise and for making decisions concerning it. The Financial Accounting Standards Board (FASB) formalized this concept of usefulness when it stated: Financial reporting should provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. The information should be comprehensible to those who …

Education, Certification, And The Earnings Of Industrial Accountants, Kenneth Yale Rosenzweig, Lawrence Hadley

Kenneth Y. Rosenzweig

Utilizing a model of the relationship between skill accumulation and earnings known as human capital theory, we analyzed the incremental earnings associated with various educational and professional credential for a sample of members of the National Association of Accountants (NAA). Data were collected by means of a questionnaire survey of NAA members and were analyzed utilizing a multiple regression technique. Earnings is regressed on various education and certification variables. Employment characteristics and personal characteristics of the respondents are included as control variables. Our analysis documents positive earnings increments for the bachelor’s and MBA degrees and the CPA certificate. For the …

Report Earnings Accurately, Kenneth Yale Rosenzweig, Marilyn Fischer

Kenneth Y. Rosenzweig

As authors of the March article, “Is Managing Earnings Ethically Acceptable?,” we wish to thank Alfred M. King for his letter in the April issue questioning some of the contentions in our article. In a time when corruption seems to be rampant in many aspects of our national life, it is important for accountants to discuss openly what are their ethical responsibilities, and what are the limits to those responsibilities. The credibility of accounting numbers is vital to our success as a profession and as individual accountants. There will be no demand for accounting service if accounting information is not …

Company Resistance To Complex Fasb Statements: The Case Of Sfas 33, Kenneth Yale Rosenzweig

Kenneth Y. Rosenzweig

Over the past fifteen years, the Financial Accounting Standards Board (FASB) has issued numerous pronouncements designed to narrow the differences in accounting practice and thereby increase the usefulness of financial statements by making them more comparable among different enterprises. Though questions have often been raised over the years about the complex and prescriptive nature of these pronouncements, Statement of Financial Accounting Standards No. 33, “Financial Reporting and Changing Prices” (SFAS 33), has perhaps been the most controversial. The above statement required subject companies to generate and publish information that was radically different from that produced in accordance with conventional financial …

Managing The Cost Of Federally Sponsored Research At Educational Institutions, Mary J. Brown, Kenneth Yale Rosenzweig

Kenneth Y. Rosenzweig

In an era of weak economic ·growth, budget deficits and government spending reductions, limited government resources must be utilized in a manner that maximizes the public welfare. One major use of such resources in recent years has been to fund research and other activities at universities. To shed light on this important area, this article examines current practice in government contracting with educational institutions, reviews recent governmental efforts to control contract costs and investigates ramifications for the affected educational institutions.

How Corporate Culture Impacts Unethical Distortion Of Financial Numbers, Joseph F. Castellano, Kenneth Y. Rosenzweig, Harper A. Roehm

Kenneth Y. Rosenzweig

The recent accounting scandals have highlighted the critical role that investor confidence in the accuracy and lack of distortion of accounting data plays in the health of capital markets and, indeed, the whole economy. The legal and moral culpability of top-level company managers (as well as auditors) is an issue that will be addressed by the nation in the coming months. Whether or not legal sanctions are imposed on managers, it would be well to examine some of the reasons managers may feel compelled to distort accounting numbers as well as engage in other actions that damage the interests of …

Companies Are Not Using Fas 33 Data, Kenneth Yale Rosenzweig

Kenneth Y. Rosenzweig

How is price-adjusted information required by FAS 33, “Financial Reporting and Changing Prices,” being used for management decision-making purposes? I mailed a questionnaire survey to the controllers of all companies in the FASB's Statement 33 bank to find out the answers and to examine the company characteristics associated with such use. The questionnaire was designed to find out the extent of use and reporting of FAS 33 information for internal company purposes such as management decision making and the factors that might be associated with that use and reporting. The controllers were asked about the extent of internal use and …

Accounting For Derivative Instruments And Hedging Activities, Veliota Drakopoulou

Veliota Drakopoulou

The goal of this research was to investigate the reasons behind the plethora of amendments of the FASB Accounting Pronouncements for Financial Instruments from 2002 to 2008. Entities have communicated their apprehensions that the existent disclosure requirements in SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities”, do not furnish sufficient input about how derivative and hedging activities influence an entity’s financial position, financial performance, and cash flows. Correspondently, in 2008 the FASB issued Statement No. 161, “Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133”. The purpose of the study was to investigate the …

Bank Holding Companies’ Accounting Versus Economic Hedging Activities In The Sfas 133 Framework, Veliota Drakopoulou

Veliota Drakopoulou

The goal of this research was to investigate the controversy surrounding the inability of Statement of Financial Accounting Standard No. 133 (SFAS 133), Accounting for Derivative Instruments and Hedging Activities to portray the economics of hedging. This research examined whether or not the possibility of increased volatility evolved from economic hedges that do not qualify for hedge accounting under SFAS 133 prompted Bank Holding Companies (BHCs) to adjust their corporate risk management strategy to one that is more accounting responsive. Based on the results of this research, BHCs' which increased the level of accounting hedges and decreased the level of …

Better Financial Reporting: Meanings And Means, Shyam Sunder

Shyam Sunder

No abstract provided.

Financial Engineering And The Arms Race Bewteen Accounting Standard Setters And Preparers, Shyam Sunder

Shyam Sunder

No abstract provided.

Financial Regulation For A Better Society, Shyam Sunder

Shyam Sunder

No abstract provided.

A Re-Balanced Scorecard: A Strategic Approach To Enhance Managerial Performance In Complex Environments, Joseph H. Callaghan, Arline Savage, Steven Mintz

Steven Mintz

This paper is a proposal to develop conceptual and practical frameworks for evolving corporations seeking to improve their managerial performance in complex environments with actionable strategies for dealing with social, environmental and corporate governance issues. These frameworks are coalesced by social contract theory that extends the traditional view of the firm as a nexus of contracts to a broader view of the firm as a nexus of social contracts. A re-balanced scorecard is proposed to induce and evaluate management performance that captures important dimensions and aspects of the frameworks established for firms strategically choosing to change their long term objectives …

Financial Engineering And The Arms Race Between Accounting Standard Setters And Preparers, Shyam Sunder

Shyam Sunder

No abstract provided.

Narcissism In Public Accounting Firms, Michael D. Akers, Don E. Giacomino, Jill Weber

Michael D. Akers

Similar to other characteristics, narcissism is a personality trait that varies by individuals. While the management literature has examined narcissism, there is limited research of narcissism of professionals in public accounting firms. Using the Narcissistic Personality Inventory (NPI), we assess the level of narcissism in practitioners of public accounting firms by examining differences by gender, age, practice area and position. We also compare our results with a prior study that examined narcissism of accounting majors. Our findings show there are differences between accounting students and accounting professionals for certain traits and gender. We also find there are differences for professionals …

The Reputational Penalty For Aggressive Accounting: Earnings Restatements And Management Turnover, Hemang Desai, Chris E. Hogan, Michael S. Wilkins

Michael S Wilkins

In this paper we investigate the reputational penalties to managers of firms announcing earnings restatements. More specifically, we examine management turnover and the subsequent re-hiring of displaced managers at firms announcing earnings restatements during 1997 or 1998. In contrast to prior research (Beneish 1999 and Agrawal, Jaffe and Karpoff, 1999), which does not find increased turnover following GAAP violations or revelation of corporate fraud, we find that 60% of restating firms experience a turnover in at least one top manager within 24 months of the restatement compared to only 35% among age-, size- and industry-matched firms. Moreover, 85% of the …

The Information Content Of Withdrawn Audit Qualifications: New Evidence On The Value Of "Subject-To" Opinions, L. Paige Fields, Michael S. Wilkins

Michael S Wilkins

Statement on Auditing Standards No. 58 (AICPA 1988) effectively eliminated the "subject-to" audit opinion which auditors used to highlight financial statement uncertainties. Elimination of the "subject-to" report implied the Auditing Standards Board's belief that the opinion conveyed no material information to users. Several market-based studies of the value of "subject-to" opinions have yielded mixed results. A major limitation in most of these studies was a lack of precision in identifying the exact date upon which information, if any, was revealed to the market.

This study extends the previous work by examining the common share price reactions to public announcements of …

Accounting By Rules Or Social Norms?, Shyam Sunder

Shyam Sunder

No abstract provided.

Outside Pressure: How Educational Financing Reforms Have Circumvented Washington State Legislature?, Joshua Zender

Joshua Zender